Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Canyon Copper Corp - Exhibit 10.1

LOAN AGREEMENT

THIS AGREEMENT dated as
of the 12th day of September, 2006. 

BETWEEN: 

CANYON COPPER CORP., of
1199 West Pender
Street, Suite 408
Vancouver, BC, Canada V6E 2R1 

(hereinafter called the
"Borrower") 

OF THE FIRST PART

AND: 

ATON VENTURES FUND LTD., of
3076 Sir
Francis Drake's Highway
Road Town, Tortola B.V.I. 

(hereinafter called the
"Lender") 

OF THE SECOND
PART 

WHEREAS: 

A.          The
Borrower has requested that the Lender lend $250,000 (U.S.) to the Borrower;

B.           The
Lender has agreed to lend such sum to the Borrower subject to the terms and upon
the conditions hereinafter set forth. 

NOW THEREFORE THIS AGREEMENT WITNESSES THAT
in consideration of the sum of $1.00 paid by each party
to the other (the receipt of which is hereby acknowledged) the parties hereto
mutually covenant and agree as follows: 

	1. 	
      INTERPRETATION

	1.1               Definitions. Where used herein or in any
      amendment hereto each of the following words and phrases shall have
      the meanings set forth as follows: 

	 	(a) 	
      "Agreement" means this Loan Agreement
      including the Schedules hereto together with any amendments
      hereof;

	 	 	 
	 	(b) 	
      "Closing Date" means September 12,
      2006;

2

	 	(c) 	
      "Event of Default" means any event set forth
      in paragraph 6.1;

	 	 	 
	 	(d) 	
      "Loan" means the loan of $250,000 (U.S.) to
      be made by the Lender to the Borrower in accordance with this
      Agreement;

	 	 	 
	 	(e) 	
      “Maturity” means December 12, 2006;
      and

	 	 	 
	 	(f) 	
      "Principal Sum" means the sum of $250,000
      (U.S.).

1.2                    Number and Gender. Wherever the singular or the
masculine are used herein the same shall be deemed to include the plural or the
feminine or the body politic or corporate where the context or the parties so
require. 

1.3                  
Headings. The headings to the
articles, paragraphs, subparagraphs or clauses of this Agreement are inserted
for convenience only and shall not affect the construction hereof. 

1.4                   References. Unless otherwise stated a reference
herein to a numbered or lettered article, paragraph, subparagraph or clause
refers to the article, paragraph, subparagraph or clause bearing that number or
letter in this Agreement. A reference to this Agreement or herein means this
Loan Agreement, including the Schedule hereto, together with any amendments
thereof. 

1.5                   Currency. All dollar amounts expressed herein
refer to lawful currency of The United States of America. 

	2. 	
      TERMS OF
  LOAN

2.1                  Loan and Repayment. The Lender hereby agrees to
lend to the Borrower the Principal Sum of $250,000 (U.S.). The Loan shall be
made in United States currency and shall be repaid by the Borrower on or before
December 12, 2006. 

2.2                 Interest. The Borrower shall pay on the amount of
the Principal Sum, interest at a rate of 8% per annum, payable annually, on
Maturity. The Borrower shall pay interest at the aforesaid rate on all overdue
interest. 

2.3                Advances. The Principal Sum shall be advanced by
the lender on execution of this Agreement, in the form of certified cheque, bank
draft or wire transfer as follows: 

O’Neill Law Group PLLC In
Trust
435 Martin Street, Suite 1010
Blaine, WA 98230
Attention: Stephen
F.X. O’Neill 

2.4                Pre-Payment. The Borrower may pre-pay all or any
portion of the loan at any time. 

3

	3. 	
      PROMISSORY NOTE, EXTENSIONS &
      WAIVER

3.1
            Loan. To evidence the Loan, the Borrower agrees
to enter into a promissory note in the form attached hereto as Schedule “A”.

3.2
           Extensions. The Lender may grant extensions as
the Lender may see fit without prejudice to the liability of the Borrower or to
the Lender's rights under this Agreement or under the Promissory Note.

3.3
           Waiver. The Lender may waive any breach by the
Borrower of this Agreement or of any default by the Borrower in the observance
or performance of any covenant or condition required to be observed or performed
by the Borrower hereunder or under the Promissory Note. No failure or delay on
the part of the Lender to exercise any right, power or remedy given herein or by
statute or at law or in equity or otherwise shall operate as a waiver thereof,
nor shall any single or partial exercise of any right preclude any other
exercise thereof or the exercise of any other right, power or remedy, nor shall
any waiver by the Lender be deemed to be a waiver of any subsequent similar or
other event. 

	4. 	
      REPRESENTATIONS AND
      WARRANTIES

4.1
           Representations of the Borrower. The Borrower
represents and warrants to the Lender, and acknowledges that the Lender is
relying upon such representations and warranties in entering into this
Agreement, as follows: 

	 	(a) 	the Borrower has the capacity to
      enter into this Agreement, and the execution of this Agreement and
      the completion of the transactions contemplated hereby shall not be in
      violation any agreement to which the Borrower is a party; and
	 	 	  
	 	  	  
	 	(b) 	the Promissory Note has been duly
      executed by the Borrower and is enforceable against the Borrower in
      accordance with its terms.

4.2
           Representations of the Lender. The Lender
represents and warrants to the Borrower,
and acknowledges that the Borrower is relying upon such representations and
warranties in entering into this Agreement, as follows: 

	 	(a) 	the Lender is not a “U.S. Person”
      as defined by Regulation S of the Securities Act and is not
      intending to convert the Principal Sum into shares for the account or
      benefit of a U.S. Person.
	 	 	 
	 	A “U.S. Person” is defined by
      Regulation S of the Act to be any person who is: 
	 	 
	 	(a) 	any natural person resident in
      the United States; 
	 	 	 
	 	(b) 	any partnership or corporation
      organized or incorporated under the laws of  the
      United States; 
	 	 	 
	 	(c) 	any estate of which any
      executor or administrator is a U.S. person;

4

	 	(d) 	any trust of which
      any trustee is a U.S. person; 
	 	  	  	  
	 	(e) 	any agency or branch
      of a foreign entity located in the United States; 
	 	  	  	  
	 	(f) 	any non-discretionary
      account or similar account (other than an estate or trust)
      held by a dealer or other fiduciary organized, incorporate, or (if an
      individual) resident in the United States; and
	 	  	  	  
	 	(g) 	any partnership or
      corporation if: 
	 	  	  	  
	 	  	(i) 	organized or incorporated under
      the laws of any foreign jurisdiction; and 
	 	  	  	  
	 	  	(ii)
	formed by a U.S. person
      principally for the purpose of investing in securities not
      registered under the Act, unless it is organized or incorporated,
      and owned, by accredited Subscribers [as defined in Section
      230.501(a) of the Act] who are not natural persons, estates or
      trusts. 
	 	  	  	  
	 	(b) 	The Lender acknowledges
      that the Lender was not in the United States at the time this
      Agreement was entered into.

	5. 	
      CLOSING
    ARRANGEMENTS

5.1          
Conditions Precedent. The
Lender's obligation to advance the Principal Sum to the Borrower shall be
subject to the satisfaction of the following conditions: 

	 	(a) 	
      the representations and warranties of the
      Borrower shall be true as of the date hereof and as of the Closing Date;
      and

	 	 	 
	 	(b) 	
      the Borrower shall have complied with all of
      its obligations hereunder; and

The foregoing conditions precedent are inserted
for the benefit of the Lender and may be waived in whole or in part by the
Lender at any time prior to closing by delivering to the Borrower written notice
to that effect. 

5.2
          Time of Closing. The closing of the Loan shall
take place on execution of this Loan Agreement. 

5.3
         Deliveries by the Lender. On the Closing Date the
Lender shall deliver or cause to be delivered to the Borrower a certified
cheque, bank draft or solicitors' trust cheque for the Principal Sum.

5

	6. 	
      EVENTS OF DEFAULT AND
      REMEDIES

6.1
           Events of Default. Any one or more of the
following events, whether or not any such event shall be voluntary or
involuntary or be effected by operation of law or pursuant to or in compliance
with any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body, shall constitute an Event of
Default: 

	 	(a) 	if the Borrower defaults in the
      payment of any monies due hereunder as and when the same is due;
  
	 	  	  
	 	(b) 	if the Borrower defaults in the
      observance or performance of any other provision hereof;
	 	  	  
	 	(c) 	if the Borrower commits an act of
      bankruptcy or makes a general assignment for the benefit of its
      creditors or otherwise acknowledges its insolvency; or
	 	  	  
	 	(d) 	if the Borrower makes default in
      the due payment, performance or observance, in whole or in part, of
      any debt, liability or obligation of the Borrower to the Lender, whether
      secured hereby or otherwise. 

6.2
           Remedies Upon Default. Upon the occurrence of any
Event of Default and at any time thereafter, provided that the Borrower has not
by then remedied such Event of Default, the Lender may, in its discretion, by
notice to the Borrower, declare this Agreement to be in default. At any time
thereafter, while the Borrower shall not have remedied such Event of Default,
the Lender, in its discretion, may: 

	 	(a) 	
      declare the Loan and other monies owing by
      the Borrower to the Lender to be immediately due and
  payable;

	 	 	 
	 	(b) 	
      demand payment from the Borrower and
      exercise all remedies available to the
Lender.

	7. 	
      CONVERSION
      PRIVILEDGE

7.1
          At any time prior to
Maturity, the Lender may convert all or any part of the Principal Sum into
common shares of the Borrower at a rate of $0.30 per share. 

7.2
          In order to exercise
the right of conversion the Lender shall give notice to the Borrower at the
address described below. 

6

7.3
          Any share
certificates of the Borrower issued on conversion will be endorsed with the
following legend in accordance with Regulation S of the United States Securities
Act of 1933:

“THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933 (THE "ACT"), AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE ACT PROVIDED BY REGULATION S PROMULGATED
UNDER THE ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR
OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S,
PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM REGISTRATION UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
ACT”. 

	8. 	
      SECURITY (NEGATIVE
      PLEDGE)

8.1 For so long as the Loan remains outstanding,
the Borrower will not sell, transfer, mortgage, pledge or otherwise dispose of
or encumber all or any part of its interest in its mineral claims in the State
of Nevada. 

	9. 	
      MISCELLANEOUS

9.1
          Notices. Any notice required or permitted to be
given under this Agreement or the Promissory Note shall be in writing and may be
given by delivering same or mailing same by registered mail or sending same by
telegram, telex, telecopier or other similar form of communication to the
following addresses: 

	 	The Borrower: 	1199 West Pender Street,
      Suite 408 	
	 	  	Vancouver, BC V6E
      2R1 
	 	  	  	  
	 	The Lender: 	3076 Sir Francis Drake’s
      Highway 	
	 	  	Road Town, Tortola,
      BVI 

Any notice so given shall: 

	 	(a) 	
      if delivered, be deemed to have been given
      at the time of delivery;

	 	 	 
	 	(b) 	
      if mailed by registered mail, be deemed to
      have been given on the fourth business day after and excluding the day on
      which it was so mailed, but should there be, at the time of mailing or
      between the time of mailing and the deemed receipt of the notice, a mail
      strike, slowdown or other labour dispute which might affect the delivery
      of such notice by the mails, then such notice shall be only effective if
      actually delivered; and

7

	 	(c) 	
      if sent by telegraph, telex, telecopier or
      other similar form of communication, be deemed to have been given or made
      on the first business day following the day on which it was
      sent.

Any party may give written notice of a change of
address in the aforesaid manner, in which event such notice shall thereafter be
given to such party as above provided at such changed address. 

9.2
          Amendments. Neither this Agreement nor any
provision hereof may be amended, waived, discharged or terminated orally, but
only by an instrument in writing signed by the party against whom enforcement of
the amendment, waiver, discharge or termination is sought. 

9.3          Entire Agreement. This Agreement embodies the
entire agreement and understanding between the parties hereto and supersedes all
prior agreements and undertakings, whether oral or written, pertaining to the
subject matter hereof. 

9.4
         Action on Business Day. If the date upon which
any act or payment hereunder is required to be done or made falls on a day which
is not a business day, then such act or payment shall be performed or made on
the first business day next following. 

9.5
         No
Merger of Judgment. The taking of a judgment on any
covenant contained herein or on any covenant set forth in any other security for
payment of any indebtedness hereunder or performance of the obligations hereby
secured shall not operate as a merger of any such covenant or affect the
Lender's right to interest at the rate and times provided in this Agreement on
any money owing to the Lender under any covenant herein or therein set forth and
such judgment shall provide that interest thereon shall be calculated at the
same rate and in the same manner as herein provided until such judgment is fully
paid and satisfied. 

9.6
         Severability. If any one or more of the
provisions of this Agreement should be invalid, illegal or unenforceable in any
respect in any jurisdiction, the validity, legality or enforceability of such
provision shall not in any way be affected or impaired thereby in any other
jurisdiction and the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected or impaired
thereby. 

9.7
        Successors and Assigns. This Agreement shall
enure to the benefit of and be binding upon all parties hereto and their
respective heirs, personal representatives, successors and assigns, as the case
may be. 

9.8
        Governing
Law. This Agreement shall be governed by and be
construed in accordance with the laws of the Province of British Columbia and
the parties hereto agree to submit to the jurisdiction of the courts of British
Columbia with respect to any legal proceedings arising herefrom. 

9.9
        Independent Legal Advice. This Agreement has been
prepared by Northwest Law Group acting solely on behalf of the Borrower and the
Lender acknowledges that it has been advised to obtain independent legal advice.

9.10
       Time. Time is of the essence of this Agreement.

8

9.11
        Headings. The headings of the paragraphs of this
Agreement are inserted for convenience only and do not define, limit, enlarge or
alter the meanings of any paragraph or clause herein. 

9.12
        Counterparts. This agreement may be executed in
one or more counter-parts, each of which so executed shall constitute an
original and all of which together shall constitute one and the same agreement.

IN WITNESS WHEREOF the
parties hereto have caused this Agreement to be duly executed and delivered as
of the day and year first written above. 

THE BORROWER:

CANYON COPPER CORP.
by its authorized signatory: 

/s/ Anthony Harvey 

________________________________

THE LENDER: 

ATON VENTURES FUND LTD. 
by its authorized signatory: 

/s/ Dr. Werner Keicher 

________________________________ 

9

Schedule “A” 

CONVERTIBLE PROMISSORY
NOTE

	EXECUTED BY: 	Canyon Copper Corp. (the
      "Borrower") 
	 	 
	IN FAVOUR OF: 	* (the "Lender") 
	 	 
	PRINCIPAL AMOUNT: 	$250,000 (U.S.) 
	 	 
	DATE OF EXECUTION: 	September *, 2006 
	 	 
	PLACE OF EXECUTION: 	Vancouver, BC, Canada
  

FOR VALUE RECEIVED the
Borrower hereby promises to pay to or to the order of the Lender on December *,
2006, the principal sum of $250,000 (U.S.), together with interest thereon at
the rate of 8% per annum, both before and after maturity from the date hereof.

The Lender may at his option, at any time prior to
December *, 2006, convert all or any portion of the Principal Sum into common
shares of the Borrower at a conversion rate of $0.30 per share. 

The Borrower waives presentment, demand, notice,
protest and notice of dishonour and all other demands and notices in connection
with the delivery, acceptance, performance, default or enforcement of this
Promissory Note. 

The Borrower agrees this Promissory Note may be
negotiated, assigned, discounted, or pledged by the Lender and in every case
payment will be made to the holder of this Promissory Note instead of the Lender
upon notice being given by the holder to the undersigned, and no holder of this
Promissory Note will be affected by the state of accounts between the
undersigned and the Lender or by any equities existing between the undersigned
and the Lender and will be deemed to be a holder in due course and for the value
of the Promissory Note held by him. 

DATED at Vancouver, BC this *th day of September,
2006. 

CANYON COPPER CORP.
by its authorized signatory: 

________________________________Filed by Automated Filing Services Inc. (604) 609-0244 - Canyon Copper Corp. - Exhibit 10.2

LOAN AGREEMENT

THIS AGREEMENT dated as
of the 11th day of September, 2006. 

BETWEEN: 

CANYON COPPER CORP., of
1199 West Pender
Street, Suite 408
Vancouver, BC, Canada V6E 2R1 

(hereinafter called the
"Borrower") 

OF THE FIRST PART

AND: 

ASSET PROTECTION FUND LTD.,
of
3076 Sir Francis Drake's Highway
Road Town, Tortola
B.V.I. 

(hereinafter called the
"Lender") 

OF THE SECOND
PART 

WHEREAS: 

A.
         The Borrower has requested
that the Lender lend $250,000 (U.S.) to the Borrower; 

B.
         The Lender has agreed to
lend such sum to the Borrower subject to the terms and upon the conditions
hereinafter set forth. 

NOW THEREFORE THIS AGREEMENT WITNESSES THAT
in consideration of the sum of $1.00 paid by each party
to the other (the receipt of which is hereby acknowledged) the parties hereto
mutually covenant and agree as follows: 

	1. 	
      INTERPRETATION

1.1
         Definitions. Where used herein or in any
amendment hereto each of the following words and phrases shall have the meanings
set forth as follows: 

	 	(a) 	
      "Agreement" means this Loan Agreement
      including the Schedules hereto together with any amendments
      hereof;

	 	 	 
	 	(b) 	
      "Closing Date" means September 11,
      2006;

2

	 	(c) 	
      "Event of Default" means any event set forth
      in paragraph 6.1;

	 	 	 
	 	(d) 	
      "Loan" means the loan of $250,000 (U.S.) to
      be made by the Lender to the Borrower in accordance with this
      Agreement;

	 	 	 
	 	(e) 	
      “Maturity” means December 11, 2006;
      and

	 	 	 
	 	(f) 	
      "Principal Sum" means the sum of $250,000
      (U.S.).

1.2
        
   Number and Gender. Wherever the singular or the masculine are used herein the same shall
be deemed to include the plural or the feminine or the body politic or corporate
where the context or the parties so require. 

1.3
            Headings. The headings to the articles,
paragraphs, subparagraphs or clauses of this Agreement are inserted for
convenience only and shall not affect the construction hereof. 

1.4
            References. Unless otherwise stated a reference
herein to a numbered or lettered article, paragraph, subparagraph or clause
refers to the article, paragraph, subparagraph or clause bearing that number or
letter in this Agreement. A reference to this Agreement or herein means this
Loan Agreement, including the Schedule hereto, together with any amendments
thereof. 

1.5      
      Currency. All dollar amounts expressed herein
refer to lawful currency of The United States of America. 

	2. 	
      TERMS OF
  LOAN

2.1
           Loan and Repayment. The Lender hereby agrees to
lend to the Borrower the Principal Sum of $250,000 (U.S.). The Loan shall be
made in United States currency and shall be repaid by the Borrower on or before
December 11, 2006. 

2.2           
Interest. The Borrower shall pay
on the amount of the Principal Sum, interest at a rate of 8% per annum, payable
annually, on Maturity. The Borrower shall pay interest at the aforesaid rate on
all overdue interest. 

2.3
          Advances. The Principal Sum shall be advanced by
the lender on execution of this Agreement, in the form of certified cheque, bank
draft or wire transfer as follows: 

O’Neill Law Group PLLC In
Trust
435 Martin Street, Suite 1010
Blaine, WA 98230
Attention: Stephen
F.X. O’Neill 

2.4
            Pre-Payment. The Borrower may pre-pay all or any
portion of the loan at any time. 

3

	3. 	
      PROMISSORY NOTE, EXTENSIONS &
      WAIVER

3.1
            Loan. To evidence the Loan, the Borrower agrees
to enter into a promissory note in the form attached hereto as Schedule “A”.

3.2
           Extensions. The Lender may grant extensions as
the Lender may see fit without prejudice to the liability of the Borrower or to
the Lender's rights under this Agreement or under the Promissory Note.

3.3           
Waiver. The Lender may waive any
breach by the Borrower of this Agreement or of any default by the Borrower in
the observance or performance of any covenant or condition required to be
observed or performed by the Borrower hereunder or under the Promissory Note. No
failure or delay on the part of the Lender to exercise any right, power or
remedy given herein or by statute or at law or in equity or otherwise shall
operate as a waiver thereof, nor shall any single or partial exercise of any
right preclude any other exercise thereof or the exercise of any other right,
power or remedy, nor shall any waiver by the Lender be deemed to be a waiver of
any subsequent similar or other event. 

	4. 	
      REPRESENTATIONS AND
      WARRANTIES

4.1
           Representations of the Borrower. The Borrower
represents and warrants to the Lender, and acknowledges that the Lender is
relying upon such representations and warranties in entering into this
Agreement, as follows: 

	 	(a) 	the Borrower has the capacity to
      enter into this Agreement, and the execution of this Agreement and
      the completion of the transactions contemplated hereby shall not be in
      violation any agreement to which the Borrower is a party; and 
	 	  	  
	 	(b) 	the Promissory Note has been duly
      executed by the Borrower and is enforceable against the Borrower in
      accordance with its terms. 

7.1
           Representations of the Lender. The Lender
represents and warrants to the Borrower,
and acknowledges that the Borrower is relying upon such representations and
warranties in entering into this Agreement, as follows: 

	 	(a) 	the Lender is not a “U.S. Person”
      as defined by Regulation S of the Securities Act and is not
      intending to convert the Principal Sum into shares for the account or
      benefit of a U.S. Person. 
	 	
	 	A “U.S. Person” is defined by
      Regulation S of the Act to be any person who is: 
	 	 
	 	(a) 	any natural person resident in
      the United States; 
	 	 	 
	 	(b) 	any partnership or corporation
      organized or incorporated under the laws of  the
      United States; 
	 	  	
	 	(c) 	any estate of which any
      executor or administrator is a U.S. person;

4

	 	(d) 	any trust of which any trustee is
      a U.S. person; 
	 	  	  	  
	 	(e) 	any agency or branch of a foreign
      entity located in the United States; 
	 	  	  	  
	 	(f) 	any non-discretionary account or
      similar account (other than an estate or trust) held by a
      dealer or other fiduciary organized, incorporate, or (if an individual)
      resident in the United States; and 
	 	  	  	  
	 	(g) 	any partnership or corporation if: 
	 	  	  	  
	 	  	(i) 	organized or incorporated under the laws of
      any foreign jurisdiction; and
	 	  	  	  
	 	  	(ii) 	formed by a U.S. person principally for the
      purpose of investing in securities not registered under the
      Act, unless it is organized or incorporated, and owned, by accredited Subscribers
      [as defined in Section 230.501(a) of the Act] who are not natural
      persons, estates or trusts. 
	 	  	  	  
	 	(b) 	The Lender acknowledges that the Lender
      was not in the United States at the time this Agreement was entered
      into. 

	5. 	
      CLOSING
    ARRANGEMENTS

5.1
           Conditions Precedent. The Lender's obligation to
advance the Principal Sum to the Borrower shall be subject to the satisfaction
of the following conditions: 

	 	(a) 	
      the representations and warranties of the
      Borrower shall be true as of the date hereof and as of the Closing Date;
      and

	 	 	 
	 	(b) 	
      the Borrower shall have complied with all of
      its obligations hereunder; and

The foregoing conditions precedent are inserted
for the benefit of the Lender and may be waived in whole or in part by the
Lender at any time prior to closing by delivering to the Borrower written notice
to that effect. 

5.2
            Time of Closing. The closing of the Loan shall
take place on execution of this Loan Agreement. 

5.3           
Deliveries by the Lender. On the
Closing Date the Lender shall deliver or cause to be delivered to the Borrower a
certified cheque, bank draft or solicitors' trust cheque for the Principal Sum.

5

	6. 	
      EVENTS OF DEFAULT AND
      REMEDIES

6.1
            Events of Default. Any one or more of the
following events, whether or not any such event shall be voluntary or
involuntary or be effected by operation of law or pursuant to or in compliance
with any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body, shall constitute an Event of
Default: 

	 	(a) 	if the Borrower defaults in the
      payment of any monies due hereunder as and when the same is due;
  
	 	  	  
	 	(b) 	if the Borrower defaults in the
      observance or performance of any other provision hereof;
	 	  	  
	 	(c) 	if the Borrower commits an act of
      bankruptcy or makes a general assignment for the benefit of its
      creditors or otherwise acknowledges its insolvency; or 
	 	  	  
	 	(d) 	if the Borrower makes default in
      the due payment, performance or observance, in whole or in part, of
      any debt, liability or obligation of the Borrower to the Lender, whether
      secured hereby or otherwise. 

6.2
           Remedies Upon Default. Upon the occurrence of any
Event of Default and at any time thereafter, provided that the Borrower has not
by then remedied such Event of Default, the Lender may, in its discretion, by
notice to the Borrower, declare this Agreement to be in default. At any time
thereafter, while the Borrower shall not have remedied such Event of Default,
the Lender, in its discretion, may: 

	 	(a) 	
      declare the Loan and other monies owing by
      the Borrower to the Lender to be immediately due and
  payable;

	 	 	 
	 	(b) 	
      demand payment from the Borrower and
      exercise all remedies available to the
Lender.

	7. 	
      CONVERSION
      PRIVILEDGE

7.1             At
any time prior to Maturity, the Lender may convert all or any part of the
Principal Sum into common shares of the Borrower at a rate of $0.30 per share.

7.2
            In order
to exercise the right of conversion the Lender shall give notice to the Borrower
at the address described below. 

6

7.3               Any
share certificates of the Borrower issued on conversion will be endorsed with
the following legend in accordance with Regulation S of the United States
Securities Act of 1933:

“THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933 (THE "ACT"), AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE ACT PROVIDED BY REGULATION S PROMULGATED
UNDER THE ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR
OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S,
PURSUANT TO AN EFFECTIVE REGISTRATION UNDER THE ACT, OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM REGISTRATION UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
ACT”. 

	8. 	
      SECURITY (NEGATIVE
      PLEDGE)

8.1
            For so
long as the Loan remains outstanding, the Borrower will not sell, transfer,
mortgage, pledge or otherwise dispose of or encumber all or any part of its
interest in its mineral claims in the State of Nevada. 

	9. 	
      MISCELLANEOUS

9.1
          Notices. Any notice required or permitted to be
given under this Agreement or the Promissory Note shall be in writing and may be
given by delivering same or mailing same by registered mail or sending same by
telegram, telex, telecopier or other similar form of communication to the
following addresses: 

	 	The Borrower: 	1199 West Pender Street,
      Suite 408 	
	 	  	Vancouver, BC V6E
      2R1 
	 	  	  	  
	 	The Lender: 	3076 Sir Francis Drake’s
      Highway 	
	 	  	Road Town, Tortola,
      BVI 

Any notice so given shall: 

	 	(a) 	
      if delivered, be deemed to have been given
      at the time of delivery;

	 	 	 
	 	(b) 	
      if mailed by registered mail, be deemed to
      have been given on the fourth business day after and excluding the day on
      which it was so mailed, but should there be, at the time of mailing or
      between the time of mailing and the deemed receipt of the notice, a mail
      strike, slowdown or other labour dispute which might affect the delivery
      of such notice by the mails, then such notice shall be only effective if
      actually delivered; and

7

	 	(c) 	
      if sent by telegraph, telex, telecopier or
      other similar form of communication, be deemed to have been given or made
      on the first business day following the day on which it was
      sent.

Any party may give written notice of a change of
address in the aforesaid manner, in which event such notice shall thereafter be
given to such party as above provided at such changed address. 

9.2
            Amendments. Neither this Agreement nor any
provision hereof may be amended, waived, discharged or terminated orally, but
only by an instrument in writing signed by the party against whom enforcement of
the amendment, waiver, discharge or termination is sought. 

9.3           
Entire Agreement. This Agreement
embodies the entire agreement and understanding between the parties hereto and
supersedes all prior agreements and undertakings, whether oral or written,
pertaining to the subject matter hereof. 

9.4            Action on Business Day. If the date upon which
any act or payment hereunder is required to be done or made falls on a day which
is not a business day, then such act or payment shall be performed or made on
the first business day next following. 

9.5
           No Merger of Judgment. The taking of a judgment
on any covenant contained herein or on any covenant set forth in any other
security for payment of any indebtedness hereunder or performance of the
obligations hereby secured shall not operate as a merger of any such covenant or
affect the Lender's right to interest at the rate and times provided in this
Agreement on any money owing to the Lender under any covenant herein or therein
set forth and such judgment shall provide that interest thereon shall be
calculated at the same rate and in the same manner as herein provided until such
judgment is fully paid and satisfied. 

9.6
           Severability. If any one or more of the
provisions of this Agreement should be invalid, illegal or unenforceable in any
respect in any jurisdiction, the validity, legality or enforceability of such
provision shall not in any way be affected or impaired thereby in any other
jurisdiction and the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected or impaired
thereby. 

9.7
          Successors and Assigns. This Agreement shall
enure to the benefit of and be binding upon all parties hereto and their
respective heirs, personal representatives, successors and assigns, as the case
may be. 

9.8          
Governing Law. This Agreement
shall be governed by and be construed in accordance with the laws of the
Province of British Columbia and the parties hereto agree to submit to the
jurisdiction of the courts of British Columbia with respect to any legal
proceedings arising herefrom. 

9.9
          Independent Legal Advice. This Agreement has been
prepared by Northwest Law Group acting solely on behalf of the Borrower and the
Lender acknowledges that it has been advised to obtain independent legal advice.

9.10
         Time. Time is of the essence of this Agreement.

8

9.11
            Headings. The headings of the paragraphs of this
Agreement are inserted for convenience only and do not define, limit, enlarge or
alter the meanings of any paragraph or clause herein. 

9.12
            Counterparts. This agreement may be executed in
one or more counter-parts, each of which so executed shall constitute an
original and all of which together shall constitute one and the same agreement.

IN WITNESS WHEREOF the
parties hereto have caused this Agreement to be duly executed and delivered as
of the day and year first written above. 

THE BORROWER:

CANYON COPPER CORP.
by its authorized signatory: 

/s/ Anthony Harvey

THE LENDER: 

ASSET PROTECTION FUND LTD.
by its authorized signatory: 

/s/ Dr. Werner Keicher

9

Schedule “A” 

CONVERTIBLE PROMISSORY
NOTE

	EXECUTED BY: 	Canyon Copper Corp. (the
      "Borrower") 
	 	 
	IN FAVOUR OF: 	* (the "Lender") 
	 	 
	PRINCIPAL AMOUNT: 	$250,000 (U.S.) 
	 	 
	DATE OF EXECUTION: 	September *, 2006 
	 	 
	PLACE OF EXECUTION: 	Vancouver, BC, Canada
  

FOR VALUE RECEIVED the
Borrower hereby promises to pay to or to the order of the Lender on December *,
2006, the principal sum of $250,000 (U.S.), together with interest thereon at
the rate of 8% per annum, both before and after maturity from the date hereof.

The Lender may at his option, at any time prior to
December *, 2006, convert all or any portion of the Principal Sum into common
shares of the Borrower at a conversion rate of $0.30 per share. 

The Borrower waives presentment, demand, notice,
protest and notice of dishonour and all other demands and notices in connection
with the delivery, acceptance, performance, default or enforcement of this
Promissory Note. 

The Borrower agrees this Promissory Note may be
negotiated, assigned, discounted, or pledged by the Lender and in every case
payment will be made to the holder of this Promissory Note instead of the Lender
upon notice being given by the holder to the undersigned, and no holder of this
Promissory Note will be affected by the state of accounts between the
undersigned and the Lender or by any equities existing between the undersigned
and the Lender and will be deemed to be a holder in due course and for the value
of the Promissory Note held by him. 

DATED at Vancouver, BC this *th day of September,
2006. 

CANYON COPPER CORP.
by its authorized signatory: 

________________________________

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