Document:

Exhibit 10.1

 

SUBSCRIPTION AGREEMENT

 

This Subscription Agreement
(this “Agreement”) is made and entered into this 13th day of March, 2018, by and between International Tower
Hill Mines Ltd., a company organized under the laws of the Province of British Columbia (the “Corporation”),
and the purchaser set forth on the signature page hereof (the “Purchaser”).

 

Recitals:

 

A.       The
Corporation desires to sell an aggregate of 24,000,000 common shares without par value in its capital stock (the “Common
Shares”) in a private placement offering (the “Private Placement”).

 

B.       Pursuant
to terms and conditions set forth in this Agreement, the Purchaser desires to irrevocably subscribe for the number of Common Shares
set forth on the signature page hereto.

 

C.       The
Common Shares subscribed for pursuant to this Agreement have not been registered under the Securities Act of 1933, as amended (the
“Securities Act”), and the Corporation is offering Common Shares only to “accredited investors”
(as defined in Rule 501 of Regulation D under the Securities Act) in reliance upon the exemption from securities registration afforded
by Section 4(a)(2) of the Securities Act.

 

Agreement:

 

In consideration of the
mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, the parties hereby agree as follows:

 

1.       Subscription.

 

(a)       Subject
to the terms and conditions hereof, the undersigned Purchaser hereby irrevocably subscribes for and agrees to purchase, and the
Corporation agrees to sell and issue to such Purchaser, that number of Common Shares set forth on the signature page hereto (the
“Purchased Securities”), at a subscription price equal to US$0.50 per Common Share, for an aggregate purchase
price as set forth on the signature page hereto (the aggregate purchase price, the “Purchase Price”).

 

(b)       The
Purchaser acknowledges that the Purchased Securities will be subject to certain restrictions on transfer. The Purchaser further
acknowledges that the Private Placement is being made without registration of the Purchased Securities under the Securities Act
or any securities law of any state of the United States or of any other jurisdiction.

 

(c)       Subject
to the terms and conditions hereof, the issue of the Purchased Securities will not restrict or prevent the Corporation from obtaining
any other financing, or from issuing additional securities, options, warrants or rights.

 

2.       The
Closing. The closing of the purchase and sale of the Purchased Securities (the “Closing”) shall take place
on the date hereof at the offices of the Corporation, Suite 2300, 1177 West Hastings Street, Vancouver, British Columbia V6E 2K3,
or at such other time and place as the Corporation and Purchaser may agree.

 

3.       Payment
for Securities. Payment for the Purchased Securities shall be in United States dollars, in an amount equal to US$0.50 per Common
Share multiplied by the number of Purchased Securities, and received by the Corporation from the Purchaser by wire transfer of
immediately available funds to an account specified by the Corporation in writing at or prior to the Closing, in the amount of
the aggregate Purchase Price set forth on the signature page hereto. As soon as reasonably practical following the Closing, the
Corporation shall deliver certificates representing the Purchased Securities and bearing the legend referred to in Section 7 of
this Agreement to the Purchaser’s custodian at the address set forth on the signature page hereto.

 

     

     

    

  

4.       Representations
and Warranties of the Corporation. The Corporation represents, warrants, covenants and certifies to and with the Purchaser
that, as of the date of this Agreement and at the Closing:

 

(a)       The
Corporation is a valid and subsisting company incorporated and in good standing under the laws of the Province of British Columbia
with full power and authority to own or lease its properties, as the case may be, and to conduct its business, and each of the
Corporation’s subsidiaries is a valid and subsisting corporation organized and in good standing under the laws of its respective
jurisdiction of organization.

 

(b)       This
Agreement has been or will be at the Closing duly authorized by all necessary corporate action on the part of the Corporation,
and the Corporation has full corporate power and authority to undertake the Private Placement and to issue, sell and deliver the
Purchased Securities.

 

(c)       Upon
issuance of the Purchased Securities pursuant to the terms of this Agreement, such Purchased Securities will be validly issued,
fully paid and non-assessable and free from all preemptive or similar rights, taxes, liens, and charges with respect to the issue
thereof, with the holders being entitled to all rights accorded to a holder of Common Shares.

 

(d)       The
Corporation and each of its subsidiaries is duly registered and licensed to carry on business in each jurisdiction in which it
carries on business or owns property where required under the laws of that jurisdiction, except for those jurisdictions where the
failure to be so registered and licensed would not have a material adverse effect on the business, prospects, properties or operations
of the Corporation and its subsidiaries, taken as a whole.

 

(e)       All
annual and quarterly reports, financial statements, proxy statements/information circulars, press releases, material change reports
and other documents filed by or on behalf of the Corporation within the past 12 months (the “Disclosure Record”)
with The Toronto Stock Exchange (the “TSX”) and the NYSE American LLC (together with the TSX, the “Exchanges”)
and any regulatory authority in the United States and such other jurisdictions as may be agreed to by the Corporation, including,
without limitation, the securities regulator in the Provinces of British Columbia, Alberta and Ontario (the “Canadian
Securities Regulators”) and the U.S. Securities and Exchange Commission (the “SEC” and, together with
the Canadian Securities Regulators, the “Commissions”) were true and correct in all material respects and
did not contain any misrepresentation (as defined in the Securities Act (British Columbia)) as at the respective dates of
such filings. There is not presently any material change, as defined in the Securities Laws, relating to the Corporation or change
in any material fact, as defined in the Securities Laws, relating to any of the Purchased Securities, which has not been fully
disclosed in accordance with the requirements of the Securities Laws and the policies of the Exchanges. The Corporation has no liabilities,
obligations or commitments of any nature whatsoever, asserted or unasserted, known or unknown, absolute or contingent, accrued
or unaccrued, matured or unmatured or otherwise, except (i) those which are adequately reflected or reserved against in the balance
sheet as of September 30, 2017 (the “Balance Sheet Date”) and included in the Corporation’s Quarterly
Report on Form 10-Q filed with the SEC on November 6, 2017, and (ii) those which have been incurred in the ordinary course of business
consistent with past practice since the Balance Sheet Date and which are not, individually or in the aggregate, material in amount.
Except as set forth in the Disclosure Record, there is no transaction, arrangement or other relationship between the Corporation
and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Corporation in its filings under
the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), and is not so disclosed.

 

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(f)       Except
as qualified by the disclosure in the Disclosure Record, the Corporation is the beneficial owner of the properties, business and
assets or the interests in the properties, business or assets referred to in the Disclosure Record as being beneficially owned
by the Corporation. The Corporation and each of its subsidiaries is in all material respects conducting its business in material
compliance with all applicable laws, rules and regulations of each jurisdiction in which its business is carried on.

 

(g)       Subject
to the representations, warranties and certifications of the Purchaser herein contained being accurate and truthful in all material
respects and the Purchaser fulfilling all of its covenants and obligations herein contained, the Corporation has complied and will
comply fully with the requirements of all applicable corporate and securities laws and administrative policies and directions,
including, without limitation, the securities legislation and regulations of, and the instruments, policies, rules, orders, codes,
notices and interpretation notes of, each of the Commissions (collectively, and together with any state securities laws and the
Securities Act, the “Securities Laws”) and the Business Corporations Act (British Columbia) in relation
to the Private Placement.

 

(h)       The
issue and sale of the Purchased Securities by the Corporation does not and will not conflict with, and does not and will not (including,
without limitation, with the giving of notice, the lapse of time or the happening of any other event or condition or any combination
of the foregoing) result in a material breach of, any of the terms of the Corporation’s constating documents or any material
agreement or instrument to which the Corporation is a party or by which it is bound.

 

(i)       The
issue and sale of the Purchased Securities by the Corporation qualifies as an “Exempt Acquisition” under the Amended
& Restated Shareholder Rights Plan Agreement dated August 26, 2009 (as amended and restated on September 19, 2012) among the
Corporation and Computershare Investor Services Inc.

 

(j)       The
authorized capital of the Corporation consists of 500,000,000 Common Shares without par value, of which, immediately prior to the
Closing, 162,392,996 Common Shares are issued and outstanding. Except as provided in the Disclosure Record, no person has any right,
agreement or option, present or future, contingent or absolute, or any right capable of becoming such a right, agreement or option,
for the issue or allotment of any unissued shares in the capital of the Corporation, or any other security convertible into or
exchangeable for any such shares, or to require the Corporation to purchase, redeem or otherwise acquire any of the issued and
outstanding shares in its capital.

 

(k)       The
Purchased Securities, when issued, sold, and delivered in accordance with the terms of this Agreement for the consideration expressed
herein, will be validly issued and outstanding.

 

(l)       No
person, firm or corporation has, or will have, as a result of any action taken by the Corporation or any of its representatives,
in the context of the transaction specifically contemplated by this Agreement, any rights, interest or valid claim against or upon
the Corporation or the Purchaser for any commission, fee or other compensation as a finder or broker or in any similar capacity.

 

(m)       No
approval, authorization, consent or other order of, and no filing, registration or recording with, any governmental authority is
required to be obtained or made by the Corporation in connection with the execution and delivery by the Corporation of this Agreement
or the performance by the Corporation of its obligations hereunder, except such approvals, authorizations, consents, orders, filing,
registrations or recordings required under the Securities Laws and the rules of the Exchanges, which shall be obtained or made
by the Corporation prior to the Closing or otherwise within the periods prescribed thereunder.

 

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(n)       The
Corporation has not relied upon the Purchaser for investment, legal or tax advice, or other professional advice, and has in all
cases sought or elected not to seek the advice of its own personal investment advisers, legal counsel and tax advisers.

 

(o)       The
Corporation acknowledges (i) that the Purchaser has not been asked by the Corporation to agree, nor has the Purchaser agreed with
the Corporation, to desist from purchasing or selling, long and/or short, securities of the Corporation, or “derivative”
securities based on securities issued by the Corporation or to hold the Purchased Securities for any specified term, and (ii) that
the Purchaser, and counter parties in “derivative” transactions to which the Purchaser is a party, directly or indirectly,
presently may have a “short” position in the Common Shares which were established prior to the Purchaser’s knowledge
of the transactions contemplated by this Agreement. The Corporation further understands and acknowledges that following the public
disclosure of the transactions contemplated by this Agreement, the Purchaser may engage in hedging and/or trading activities at
various times during the period that the Purchased Securities are outstanding, and that such hedging and/or trading activities,
if any, can reduce the value of the existing shareholders’ equity interest in the Corporation both at and after the time
the hedging and/or trading activities are being conducted.

 

(p)       The
Corporation has not disclosed to the Purchaser or any of its officers, directors, employees, affiliates, representatives or agents
any material information, which has not been generally disclosed to the public, regarding the Corporation or its subsidiaries or
affiliates in connection with the transactions contemplated by this Agreement.

 

(q)       No
“bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a “Disqualification
Event”) is applicable to the Corporation or, to the Corporation’s knowledge, any person having a relationship with
the Corporation listed in the first paragraph of Rule 506(d)(1), except for a Disqualification Event as to which Rule 506(d)(2)(ii–iv)
or (d)(3), is applicable.

 

(r)       The
Corporation has filed all technical reports as required by National Instrument 43-101 Standards of Disclosure for Mineral Projects
(“NI 43-101”), and all such reports have been prepared in material compliance with the requirements of NI
43-101. In addition, with respect to each press release issued, and any other documents filed, by or on behalf of the Corporation
in respect of which any requirements of NI 43-101 applied, each such press release and document also complied in all material respects
as to form, substance and otherwise with the requirements of NI 43-101.

 

(s)       None
of the Corporation, its subsidiaries or any of their respective officers, directors or employees acting on behalf of the Corporation
or any of its subsidiaries has taken, committed to take or been alleged to have taken any action which would cause the Corporation
or any of its subsidiaries to be in violation of the Corruption of Foreign Public Officials Act (Canada) and the Foreign
Corrupt Practices Act of 1977, as amended (and, in each case, the regulations promulgated thereunder), or any applicable law
of similar effect of another jurisdiction, and to the knowledge of the Corporation no such action has been taken by any of its
agents, representatives or other Persons acting on behalf of the Corporation or any of its subsidiaries. The operations of the
Corporation and its subsidiaries are and have been conducted at all times in compliance with applicable financial recordkeeping
and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering
statutes of all jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines,
issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and
no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the
Issuers, the Guarantors or any of their respective subsidiaries with respect to the Money Laundering Laws is pending or, to the
knowledge of the Corporation, threatened.

 

(t)       Except
as disclosed in the Disclosure Record, as of the date hereof, none of the officers, directors or employees of the Corporation or
any subsidiary thereof is a party to any transaction with the Corporation or any subsidiary thereof (other than for ordinary course
services as employees, officers or directors), including any contract, agreement or other arrangement providing for the furnishing
of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from
any such officer, director or employee or any corporation, partnership, trust or other entity in which any such officer, director
or employee has a substantial interest or is an officer, director, trustee or partner.

 

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(u)       The
Corporation has its property and assets insured against loss or damage by insurable hazards or risks on a basis consistent with
insurance obtained by reasonably prudent participants in comparable businesses. Such insurance coverage is of a type and in an
amount typical to the business in which each of the Corporation and its subsidiaries operates as conducted by a reasonably prudent
Person, based on the advice of insurance brokers consulted by the Corporation and its subsidiaries. Each of the Corporation and
its subsidiaries has not made any material claim on any policy of insurance or been refused any insurance coverage sought or applied
for. Each of the Corporation and its subsidiaries has no reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue
its business at a cost that would not be reasonably expected to have a material adverse effect on the Corporation’s business.

 

(v)       The
Corporation has filed in a timely manner all necessary tax returns and notices and has paid all applicable taxes of whatsoever
nature for all tax years prior to the date hereof to the extent that such taxes have become due or have been alleged by the Canada
Revenue Agency, the United States Internal Revenue Service or any other taxation authority to be due. There are no agreements,
waivers or other arrangements providing for an extension of time with respect to the filing of any tax return by the Corporation
or the payment of any material tax, governmental charge, penalty, interest or fine against the Corporation. The Corporation has
no liability for taxes except those arising in the ordinary course of its business. There are no material actions, suits, proceedings,
audits, investigations or claims in progress, now threatened or pending against the Corporation which could result in a material
liability in respect of taxes, charges or levies of any governmental authority, penalties, interest, fines, assessments or reassessments
or any matters under discussion with any governmental authority relating to taxes, governmental charges, penalties, interest, fines,
assessments or reassessments asserted by any such authority.

 

(w)       The
Corporation and each of its subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance
that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles
and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance
with management’s general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared
with the existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to any difference.
The Corporation maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 under the Exchange Act) that
are effective in ensuring that information required to be disclosed by the Corporation in the reports that it files or submits
under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules
and forms of the SEC, including controls and procedures designed to ensure that information required to be disclosed by the Corporation
in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Corporation’s management,
including its principal executive officer or officers and its principal financial officer or officers, as appropriate, to allow
timely decisions regarding required disclosure. Except as disclosed in the Disclosure Record, during the twelve months prior to
the date hereof neither the Corporation nor any of its subsidiaries has received any notice or correspondence from any accountant
relating to any material weakness in any part of the system of internal accounting controls of the Corporation or any of its subsidiaries.

 

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(x)       The
Corporation and each of its subsidiaries has good and marketable title (or in the case of leased or optioned properties and assets,
good and marketable leasehold or optioned interests) to all real and personal properties material to its business.

 

(y)       Neither
the Corporation nor any of its subsidiaries has and, to the Corporation’s knowledge, no person acting on its or their behalf
has (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price
of any security of the Corporation to facilitate the sale or resale of the Common Shares, (ii) sold, bid for, purchased, or paid
any compensation for soliciting purchases of, any of the Common Shares, or (iii) paid or agreed to pay to any person any compensation
for soliciting another to purchase any other securities of the Corporation.

 

5.       Representations
and Warranties of the Purchaser. The Purchaser, severally and not jointly with any other purchaser of Common Shares, represents,
warrants, covenants and certifies to and with the Corporation that, as of the date of this Agreement and at the Closing:

 

(a)       The
Purchaser acknowledges that the Corporation is relying on exemptions from the requirements under the Securities Laws to provide
the Purchaser with a prospectus or registration statement and no prospectus or registration statement has been filed by the Corporation
with any of the Commissions in connection with the issuance of the Purchased Securities, and that the Corporation is relying in
part upon the truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility
of such Purchaser to acquire the Purchased Securities and, as a consequence, the Purchaser may not receive information that would
otherwise be required to be provided to the Purchaser under the Securities Laws.

 

(b)       The
Purchaser has the knowledge and experience in financial and business matters necessary to evaluate the merits and risks of its
prospective investment in the Corporation, and has carefully reviewed and understands the risks of, and other considerations relating
to, the purchase of the Purchased Securities and the tax consequences of the investment and has the ability to bear the economic
risks of the investment. The Purchaser can afford the loss of its entire investment.

 

(c)       The
Corporation has advised the Purchaser that no agency, stock exchange or governmental agency, securities commission or similar regulatory
authority or other entity has reviewed or passed on or made any finding or determination as to the merits of or made any recommendation
or endorsement with respect to the Purchased Securities.

 

(d)       The
Purchaser is acquiring the Purchased Securities for investment for its own account and not with the view to, or for resale in connection
with, any distribution thereof. The Purchaser understands and acknowledges that the Private Placement and sale of the Purchased
Securities have not been registered under the Securities Act or the securities laws of any state or other jurisdiction, by reason
of a specific exemption from the registration provisions of the Securities Act and applicable state securities laws, which depends
upon, among other things, the bona fide nature of the investment intent as expressed herein. The Purchaser further represents that
it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to
any third person with respect to any of the Purchased Securities. The Purchaser understands and acknowledges that the Private Placement
of the Purchased Securities will not be registered under the Securities Act nor under the securities laws of any state or other
jurisdiction on the ground that the sale of the Purchased Securities to the Purchaser as provided for in this Agreement and the
issuance of securities hereunder is exempt from the registration requirements of the Securities Act and any applicable state or
other securities laws. The Purchaser is an “accredited investor” as defined in Rule 501 of Regulation D as promulgated
by the SEC under the Securities Act, for the reasons specified in the Accredited Investor Certification provided by the Purchaser
as completed by the Purchaser, and Purchaser shall submit to the Corporation such further assurances of such status as may be reasonably
requested by the Corporation. The Purchaser resides in the jurisdiction set forth on the signature page attached hereto. The Purchaser
has not taken any of the actions set forth in, and is not subject to, the disqualification provisions of Rule 506(d)(1) of the
Securities Act.

 

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(e)       The
Purchaser represents that it (i) was not formed for the specific purpose of acquiring the Purchased Securities, (ii) is duly organized,
validly existing and in good standing under the laws of the state or jurisdiction of its organization, and (iii) has full power
and authority to execute and deliver this Agreement and to carry out the provisions hereof and to purchase and hold the Purchased
Securities, and further the Purchaser represents that the consummation of the transactions contemplated hereby is authorized by,
and will not result in a violation of state law or its charter or other organizational documents. This Agreement has been duly
executed and delivered and, when accepted by the Corporation, will constitute a legal, valid and binding obligation enforceable
against the Purchaser in accordance with the terms hereof. The execution and delivery of this Agreement will not violate or be
in conflict with any order, judgment, injunction, agreement or controlling document to which the Purchaser is a party or by which
it is bound.

 

(f)       The
Purchaser has received, reviewed and understood the information about the Corporation, including as set forth in the Disclosure
Record, and has had an opportunity to discuss the Corporation’s business, management and financial affairs with the Corporation’s
management. The Purchaser understands that such discussions were intended to describe the aspects of the Corporation’s business
and prospects and the Private Placement which the Corporation believes to be material, but were not necessarily a thorough or exhaustive
description, and except as expressly set forth in this Agreement, the Corporation makes no representation or warranty with respect
to the completeness of such information and makes no representation or warranty of any kind with respect to any information provided
by any entity other than the Corporation. The Purchaser acknowledges that it is not relying upon any person or entity, other than
the Corporation and its officers and directors, in making its investment or decision to invest in the Corporation. The Purchaser
has sought such accounting, legal and tax advice as the Purchaser has considered necessary to make an informed investment decision
with respect to its acquisition of the Purchased Securities.

 

(g)       The
Purchaser has been advised to consult its own legal advisors with respect to the applicable hold periods imposed in respect of
the Purchased Securities by the applicable Securities Laws and confirms that no representation by the Corporation has been made
respecting the hold periods applicable to the Purchased Securities and the Purchaser is solely responsible (and the Corporation
is not responsible) for compliance with the applicable resale restrictions.

 

(h)       The
Purchaser acknowledges and consents to the fact that the Corporation is collecting Personal Information of the Purchaser for the
purpose of completing this Agreement. For purposes of this Agreement, “Personal Information” means any personal
information as that term is defined under applicable privacy legislation, including, without limitation, the Personal Information
Protection and Electronic Documents Act (Canada) and any other applicable similar, replacement or supplemental provincial or
federal legislation or laws in effect from time to time and without limiting the foregoing, but for greater clarity in this Agreement,
means information about an identifiable individual, including but not limited to any information about the Purchaser and includes
information provided by the Purchaser in this Agreement. The Purchaser acknowledges and consents to the Corporation retaining such
Personal Information for as long as permitted or required by law or business practices, and the Purchaser agrees and acknowledges
that the Corporation may use and disclose such Personal Information exclusively:

 

(i)       for
internal use with respect to managing the relationships between and contractual obligations of the Corporation and the Purchaser;

 

(ii)       for
use and disclosure for income tax-related purposes;

 

(iii)       to
professional advisers of the Corporation;

 

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(iv)       to
securities regulatory authorities and other regulatory bodies with jurisdiction with respect to reports of trade or similar regulatory
filings;

 

(v)       to
a governmental or other authority to which the disclosure is required by court order or subpoena compelling such disclosure and
where there is no reasonable alternative to such disclosure;

 

(vi)       to
any person where such disclosure is necessary for legitimate business reasons and is made with the Purchaser’s prior written
consent;

 

(vii)       to
a court determining the rights of the parties under this Agreement; and

 

(viii)       for
use and disclosure as otherwise required or permitted by law.

 

In addition, the Purchaser further acknowledges
and consents to the fact that the Corporation may be required to provide any one or more of the Canadian securities regulators,
stock exchanges, the Investment Industry Regulatory Organization of Canada, other regulatory agencies or the Corporation’s
registrar and transfer agent with any Personal Information provided by the Purchaser in this Agreement, and may make any other
filings of such Personal Information as the Corporation’s counsel deems appropriate, and the Purchaser acknowledges receipt
of notification of the disclosure of Personal Information by the Corporation to the Exchanges and the Purchaser hereby consents
to and authorizes the foregoing use and disclosure of such Personal Information and agrees to provide, on request, all particulars
required by the Corporation in order to comply with the foregoing.

 

(i)       The
Purchaser further acknowledges and expressly consents to the disclosure of Personal Information by the Corporation to the Exchanges
and other applicable regulatory authorities, as required, and the collection, use and disclosure of Personal Information by the
Exchanges for such purposes as may be identified by the Exchanges from time to time.]

 

(j)       The
funds representing the aggregate Purchase Price in respect of the Purchased Securities which will be advanced by the Purchaser
to the Corporation hereunder will not represent proceeds of crime for the purpose of the Proceeds of Crime (Money Laundering)
and Terrorist Financing Act (Canada) (the “PCMLTF Act”) or the United States Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (as amended, the “PATRIOT
Act”) and the Purchaser acknowledges that the Corporation may in the future be required by law to disclose the Purchaser’s
name and other information relating to this Agreement and the Purchaser’s subscription hereunder, on a confidential basis,
pursuant to the PCMLTF Act, PATRIOT Act or other “know your customer” and anti-money laundering rules and regulations.
To the best of the Purchaser’s knowledge, none of the subscription funds to be provided hereunder:

 

(i)       have
been or will be obtained or derived, directly or indirectly, from or related to any activity that is deemed illegal under the laws
of Canada or the United States or any other jurisdiction, or

 

(ii)       are
being tendered on behalf of a person or entity who has not been identified to the Purchaser.

 

The Purchaser will promptly notify the Corporation
if it discovers that any such representation ceases to be true and will provide the Corporation with appropriate information in
connection therewith.

 

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(k)       No
person has made any written or oral representations to the Purchaser:

 

(i)       that
any Person will resell or repurchase any of the Purchased Securities;

 

(ii)       that
any Person will refund the Purchase Price of any of the Purchased Securities;

 

(iii)       as
to the future price or value of any of the Purchased Securities; or

 

(iv)       other
than as set forth in this Agreement, that any of the Purchased Securities will be listed and posted for trading on a stock exchange
or that application has been made to list and post any of the Purchased Securities for trading on a stock exchange.

 

(l)       The
Purchaser acknowledges that the Purchaser has not received an offering memorandum, prospectus or other disclosure document in respect
of the Purchased Securities or the Corporation describing the business and affairs of the Corporation in order to assist the Purchaser
in making an investment decision in respect of the Purchased Securities, that the Purchaser has had access to the Corporation’s
public filings on the Internet at www.sedar.com and www.sec.gov and that the Purchaser has not become aware of any
advertisement in printed media of general and regular paid circulation, radio or television with respect to the distribution of
the Purchased Securities.

 

(m)       The
Purchaser’s decision to tender this offer and purchase the Purchased Securities has not been made as a result of any non-public
oral or written representation as to fact made by or on behalf of the Corporation or any other Person and is based entirely upon
the representations, warranties and covenants of the Corporation provided to the Purchaser in this Agreement and on currently available
public information concerning the Corporation.

 

(n)       If
required by applicable Securities Laws, policy or order or by any Commission or Exchange, the Purchaser will reasonably assist
the Corporation in filing, such reports, undertakings and other documents with respect to the issue of the Purchased Securities
as may be required.

 

(o)       The
Purchaser acknowledges that legal counsel retained by the Corporation is acting as counsel to the Corporation and not as counsel
to the Purchaser and the Purchaser may not rely upon such counsel in any respect.

 

6.       Conditions
to Obligations of the Purchaser and the Corporation. The obligations of the Purchaser to purchase and pay for the Purchased
Securities and of the Corporation to sell the Purchased Securities are subject to the representations and warranties of the Corporation
contained in Section 4 hereof and of the Purchaser contained in Section 5 hereof being true and correct as of the
Closing in all respects, with respect to those representations and warranties qualified by materiality, and in all material respects,
with respect to those representations and warranties not qualified by materiality.

 

7.       Legend.
The certificates representing the Purchased Securities will be imprinted with a legend in substantially the following form:

 

“THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT
OF INTERNATIONAL TOWER HILL MINES LTD. (THE “CORPORATION”) THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED
OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH
RULE 904 OF REGULATION S UNDER THE 1933 ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) IN COMPLIANCE WITH THE EXEMPTION
FROM REGISTRATION UNDER THE 1933 ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE
SECURITIES OR “BLUE SKY” LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE 1933 ACT OR ANY
APPLICABLE STATE SECURITIES LAWS, AND, IN THE CASE OF SUBPARAGRAPH (C) OR (D), THE SELLER FURNISHES TO THE CORPORATION AN OPINION
OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE CORPORATION TO SUCH EFFECT. DELIVERY OF
THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

 

UNLESS PERMITTED UNDER CANADIAN
SECURITIES LEGISLATION. THE HOLDER OF THE SECURITIES REPRESENTED HEREBY MUST NOT TRADE THE SECURITIES BEFORE [INSERT THE
DATE THAT IS 4 MONTHS AND A DAY AFTER THE CLOSING DATE].”

 

    9 

     

    

  

8.       Participation
Right

 

(a)       For
purposes of this Section 8, the following terms shall have the following meanings:

 

(i)       “Business
Day” means a day other than a Saturday, Sunday or statutory holiday in the Province of British Columbia;

 

(ii)       “Equity
Securities” shall mean: (A) any Common Shares, preferred shares or other equity security of the Corporation; (B) any
security convertible or exchangeable, with or without consideration, into any Common Shares, preferred shares or other equity security
(including any option to purchase such a convertible security); (C) any warrant or right to subscribe for or purchase any Common
Shares, preferred shares or other equity security; or (D) any security including or comprising such a warrant or right; and

 

(iii)       “Excluded
Securities” shall mean (A) Common Shares issuable pursuant to stock option plans or other similar employee equity incentive
plans, the adoption of which have been approved by the board of directors of the Corporation; (B) Common Shares issued by the Corporation
directly to a third party as consideration for the bona fide acquisition of any property (including securities) from such third
party; and (C) Common Shares issued in connection with any stock split, stock dividend or recapitalization by the Corporation.

 

(b)       So
long as the Purchaser owns in the aggregate at least 10% of the issued and outstanding Common Shares, the Purchaser shall have
a right (the “Participation Right”), subject to applicable laws or stock exchange requirements, to subscribe
for its pro rata share (as defined below) of any Equity Securities (other than Excluded Securities) that the Corporation may, from
time to time, sell and issue after the Effective Date, whether pursuant to a public offering, private placement or otherwise (each,
a “Proposed Offering”). For purposes of this Section 8(b), the Purchaser’s pro rata share of any Equity
Securities issued pursuant to a Proposed Offering is equal to the ratio of (i) the number of Common Shares owned by the Purchaser,
or over which the Purchaser exercises control or direction, immediately prior to the issuance of such Equity Securities under the
Proposed Offering to (ii) the total number of issued and outstanding Common Shares immediately prior to the issuance of such Equity
Securities under the Proposed Offering.

 

(c)       At
least ten Business Days prior to any Proposed Offering, the Corporation shall send a written notice
to the Purchaser (the “Participation Right Offer Notice”) of any Proposed Offering specifying: (i) the number
and type of Equity Securities to be issued under the Proposed Offering; (ii) the price per Equity Security to be issued under the
Proposed Offering; (iii) the expected use of proceeds and closing date of the Proposed Offering; (iv) the total number of the then
issued and outstanding Common Shares; and (v) all other material terms and conditions of the Proposed Offering.

 

    10 

     

    

  

(d)       Subject
to Section 8(f), the Purchaser shall have a period of five Business Days from the date of the Participation Right Offer Notice
(the “Participation Right Notice Period”) to notify the Corporation in writing (the “Participation
Right Acceptance Notice”) of the exercise of its Participation Right. Such Participation Right Acceptance Notice shall
specify (i) the number of Equity Securities the Purchaser wishes to acquire under the Proposed Offering, which may be fewer than
the Purchaser’s full pro rata share as calculated pursuant to Section 8(b), and (ii) the number of Common Shares owned by
the Purchaser, or over which the Purchaser exercises control or direction, immediately prior to the issuance of such Equity Securities
under the Proposed Offering. If the Purchaser fails to deliver a Participation Right Acceptance Notice in respect of a Proposed
Offering within the applicable Participation Right Notice Period, then any right of the Purchaser to subscribe for any of the Equity
Securities issued under the Proposed Offering is extinguished. If the Purchaser gives a Participation Right Acceptance Notice in
respect of a Proposed Offering, the sale of Equity Securities to the Purchaser shall be completed within 30 Business Days of the
expiry of the Participation Right Notice Period or such shorter period required by applicable laws or stock exchange requirements.

 

(e)       If
the Corporation has not issued the debt or Equity Securities under a Proposed Offering within 90 Business Days following the expiry
of the Participation Right Notice Period, the Corporation shall not thereafter proceed with such Proposed Offering without providing
the Purchaser with another opportunity to exercise its Participation Right in respect of such Proposed Offering.

 

(f)       Notwithstanding
the foregoing, if any Proposed Offering to which this Section 8 applies is to be conducted or marketed on a “bought deal”
or “overnight” basis, then (i) the period for the Corporation to deliver a Participation Right Offer Notice under Section
8(c) shall be “as soon as reasonably practicable and without undue delay” by the Corporation acting reasonably and
in good faith and (ii) the period for the Purchaser to deliver a Participation Right Acceptance Notice under Section 8(d) shall
be “as soon as reasonably practicable and without undue delay” by the Purchaser acting reasonably and in good faith,
in each case having regard to the specific circumstances surrounding such Proposed Offering and so as not to jeopardize the Corporation’s
ability to complete such transaction.

 

9.       Tax
Matters.

 

(a)       The
Corporation shall reasonably cooperate with the Purchaser in order to permit the Purchaser to determine whether the Corporation
is at any time a “passive foreign investment company” (as defined in Section 1297(a) of the United States Internal
Revenue Code of 1986, as amended) (a “PFIC”). In furtherance of the foregoing, the Corporation shall notify
the Purchaser if, in good faith, the Corporation reasonably believes the Corporation or any of its controlled subsidiaries was
a PFIC during the prior taxable year, provided that the publication of a PFIC Annual Information Statement by the Corporation on
the Corporation’s website shall be deemed to satisfy such notification requirement. If the Corporation determines that the
Corporation or any of its controlled subsidiaries is a PFIC, the Corporation shall use commercially reasonable efforts to (i) provide
such information to the Purchaser as the Purchaser may reasonably request to enable the Purchaser to complete its U.S. Internal
Revenue Service Form 8621 with respect to such entity and (ii) provide such statements, information and documentation as the Purchaser
reasonably believes is necessary for it to make an election to treat such subsidiary as a “qualified electing fund”
under Section 1295 of the United States Internal Revenue Code of 1986, as amended.

 

(b)       At
the Purchaser’s written request, the Corporation will provide any information reasonably available to it or its affiliates
in order for the Purchaser (a) to determine whether the Corporation or any of its subsidiaries is a “controlled foreign corporation”
(“CFC”) within the meaning of Section 957 of the Code and (b) to satisfy its (and its direct and indirect owners’)
tax reporting obligations and to make any required tax filings, including (without limitation) U.S. Internal Revenue Service Form
5471. At the Purchaser’s written request, the Corporation will notify the Purchaser whether the Corporation has determined
that it or any of its subsidiaries is a CFC.

 

    11 

     

    

  

10.       Indemnification.
The Corporation will indemnify and hold the Purchaser and its directors, officers, shareholders, members, partners, employees and
agents (and any other persons with a functionally equivalent role of a person holding such titles notwithstanding a lack of such
title or any other title), each person who controls the Purchaser (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other persons
with a functionally equivalent role of a person holding such titles notwithstanding a lack of such title or any other title) of
such controlling persons (each, a “Purchaser Party”) harmless from any and all actions, suits, proceedings (including
any investigations, litigation or inquiries), demands, and causes of action, and, in connection therewith, and promptly upon demand,
pay or reimburse each of them for all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including
all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any
such Purchaser Party may suffer or incur as a result of or relating to any breach of any of the representations, warranties, covenants
or agreements made by the Corporation in this Agreement or in the other Transaction Documents; provided, that no Purchaser Party
shall be entitled to recover special, consequential or punitive damages under this Section 10; and provided further, that in no
event shall the aggregate liability of the Corporation to the Purchaser Parties pursuant to this Section 10 exceed the amount
of the Purchaser’s Purchase Price. If any action shall be brought against any Purchaser Party in respect of which indemnity
may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Corporation in writing, and the Corporation
shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party.
Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof,
but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (a) the employment
thereof has been specifically authorized by the Corporation in writing, (b) the Corporation has failed after a reasonable period
of time to assume such defense and to employ counsel or (c) in such action there is, in the reasonable opinion of counsel for such
Purchaser Party, a material conflict on any material issue between the position of the Corporation and the position of such Purchaser
Party, in which case the Corporation shall be responsible for the reasonable fees and expenses of no more than one such separate
counsel. The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Purchaser
Party against the Corporation or others and any liabilities the Corporation may be subject to pursuant to law.

 

11.       Public
Disclosure. Neither the Corporation nor the Purchaser shall, except as required by applicable law, regulation or Exchange rule,
issue any press release that describes the transactions contemplated herein and that identifies the Corporation, the Purchaser,
or any of their respective affiliates without the prior consent of the Corporation or the Purchaser (as applicable), which consent
shall not be unreasonably withheld. For the avoidance of doubt, the consent of the Purchaser shall not be required for any press
release or other disclosure in regard to the transactions contemplated herein by the Corporation that does not identify the Purchaser.

 

12.       Fees
and Expenses. Except as otherwise expressly provided in this Agreement, all fees and expenses, including fees and expenses
incurred in connection with the preparation, execution, and delivery of this Agreement and the transactions contemplated herein,
shall be paid by the party incurring such fee or expense.

 

13.       Termination.

 

(a)       Notwithstanding
anything herein to the contrary, this Agreement shall automatically terminate at any time at or prior to the Closing if a statute,
rule, order, decree or regulation shall have been enacted or promulgated, or if any action shall have been taken by any governmental
authority of competent jurisdiction that permanently restrains, precludes, enjoins or otherwise prohibits the consummation of the
transactions contemplated by this Agreement or makes the transactions contemplated by this Agreement illegal.

 

    12 

     

    

  

(b)       Notwithstanding
anything herein to the contrary, this Agreement may be terminated at any time by the Purchaser or the Corporation, upon written
notice to the other party, if the Closing shall not have occurred on or before April 1, 2018 (the “Outside Date”);
provided, however, that the right to terminate this Agreement under this Section 13(b) shall not be available to any party whose
(i) breach of any provision of this Agreement, (ii) failure to comply with their obligations under this Agreement or (iii) actions
not taken in good faith, shall have been the cause of, or shall have resulted in, the failure of the Closing to occur on or prior
to the Outside Date.

 

(c)       In
the event of the termination of this Agreement as provided in this Section 13, (i) this Agreement shall forthwith become null and
void and (ii) there shall be no liability on the part of any party hereto, except as set forth in Section 10 of this Agreement
and except with respect to the requirement to comply with any confidentiality agreement in favor of the Corporation; provided that
nothing herein shall relieve any party from any liability or obligation with respect to any willful breach of this Agreement.

 

14.       Waiver
of Certain Rights. The Purchaser hereby waives any and all preemptive rights, participation rights, resale rights, rights of
first refusal and similar rights that it may have in connection with the Private Placement, provided, that for the avoidance of
doubt such waiver shall not apply to any future offerings of the Corporation’s securities.

 

15.       Further
Assurances. Subject to the terms and conditions set forth in this Agreement, each of the parties hereto shall use its commercially
reasonable efforts (subject to, and in accordance with, applicable law) to take, or cause to be taken, promptly all actions, and
to do, or cause to be done, promptly and to assist and cooperate with the other parties in doing, all things necessary, proper
or advisable under applicable laws to consummate and make effective the transactions contemplated by this Agreement.

 

16.       General.

 

(a)       Waiver,
Amendment. Neither this Agreement nor any provisions hereof shall be modified, changed, discharged or terminated except by
an instrument in writing, signed by the party against whom any waiver, change, discharge or termination is sought.

 

(b)       Assignability.
Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable
by either the Corporation or the Purchaser without the prior written consent of the other party.

 

(c)       Waiver
of Jury Trial. THE PURCHASER IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING
OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

(d)       Submission
to Jurisdiction. With respect to any suit, action or proceeding relating to any offers, purchases or sales of the Securities
by the Purchaser (“Proceedings”), the Purchaser irrevocably submits to the jurisdiction of the federal or state
courts located in the Borough of Manhattan in New York City, which submission shall be exclusive unless none of such courts has
lawful jurisdiction over such Proceedings.

 

(e)       Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York.

 

(f)       Section
and Other Headings. The section and other headings contained in this Agreement are for reference purposes only and shall not
affect the meaning or interpretation of this Agreement.

 

    13 

     

    

  

(g)       Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which together shall be deemed to be one and the same agreement.

 

(h)       Notices.
All notices and other communications provided for herein shall be in writing and shall be deemed to have been duly given if delivered
personally or sent by registered or certified mail, return receipt requested, postage prepaid to the following addresses (or such
other address as either party shall have specified by notice in writing to the other):

 

	If to the Corporation:	
        International Tower Hill Mines Ltd.

        Suite 2300, 1177 West Hastings Street

        Vancouver, British Columbia V6E 2K3

        Facsimile: (604) 408-7499

        Attention: Chief Executive Officer

         

	If to the Purchaser, at the address set forth on the signature page hereof.

 

(i)       Binding
Effect. The provisions of this Agreement shall be binding upon and accrue to the benefit of the parties hereto and their respective
heirs, legal representatives, successors and assigns.

 

(j)       Survival.
Notwithstanding any other provision of this Agreement, the representations, warranties, covenants and indemnities of or by the
Corporation and the Purchaser contained herein or in any certificate, document or instrument delivered pursuant hereto shall survive
the completion of the transactions contemplated by this Agreement.

 

(k)       Severability.
If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term
or provision in any other jurisdiction.

 

[SIGNATURE PAGE FOLLOWS]

 

    14 

     

    

 

IN WITNESS WHEREOF, the
Purchaser has executed this Subscription Agreement as of March 13, 2018.

 

	 	PURCHASER:
	 	 
	 	ELECTRUM STRATEGIC OPPORTUNITIES FUND II L.P.
	 	 
	 	By: Electrum Strategic Opportunities Fund II GP L.P., its general partner
	 	 
	 	By: ESOF II GP Ltd., its general partner
	 	 	 
	 	By: 	/s/ Andrew M. Shapiro
	 	Name:	Andrew M. Shapiro
	 	Title:	Director

 

State/Country of Domicile or Formation: Cayman
Islands

 

Address of Principal Offices: 535 Madison
Ave., 12th Fl., New York, NY 10022, Attention: Andrew Shapiro

 

Purchaser’s Custodian: B. Riley &
Co., LLC, Attn: Paul Choi, Operations and Compliance, 11100 Santa Monica Blvd., Suite 800, Los Angeles, CA 90025, Telephone: (310)
966-1444

 

 

Purchased Securities
to Be Acquired: 19,894,528 Common Shares

 

Aggregate Purchase Price to be Paid (expressed
in US$): US $9,947,264

 

 

The offer to purchase Purchased Securities
as set forth above is confirmed and accepted by the Corporation as to 19,894,528 Common Shares.

 

		INTERNATIONAL TOWER HILL MINES LTD.
	 	 	 
	 	By:	/s/ Karl Hanneman
	 	Name:	Karl Hanneman
	 	Title:	President and CEO

 

 

    [Signature Page to Subscription Agreement]Exhibit 10.2

 

SUBSCRIPTION AGREEMENT

 

This Subscription Agreement
(this “Agreement”) is made and entered into this 13th day of March, 2018, by and between International Tower
Hill Mines Ltd., a company organized under the laws of the Province of British Columbia (the “Corporation”),
and the purchaser set forth on the signature page hereof (the “Purchaser”).

 

Recitals:

 

A.       The
Corporation desires to sell an aggregate of 24,000,000 common shares without par value in its capital stock (the “Common
Shares”) in a private placement offering (the “Private Placement”).

 

B.       Pursuant
to terms and conditions set forth in this Agreement, the Purchaser desires to subscribe for the number of Common Shares set forth
on the signature page hereto.

 

C.       The
Common Shares subscribed for pursuant to this Agreement have not been registered under the Securities Act of 1933, as amended (the
“Securities Act”), and the Corporation is offering Common Shares only to “accredited investors”
(as defined in Rule 501 of Regulation D under the Securities Act) in reliance upon the exemption from securities registration afforded
by Section 4(a)(2) of the Securities Act.

 

Agreement:

 

In consideration of the
mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, the parties hereby agree as follows:

 

1.       Subscription.

 

(a)       Subject
to the terms and conditions hereof, the undersigned Purchaser hereby subscribes for and agrees to purchase, and the Corporation
agrees to sell and issue to such Purchaser, that number of Common Shares set forth on the signature page hereto (the “Purchased
Securities”), at a subscription price of US$0.50 per Common Share, for an aggregate purchase price as set forth on the
signature page hereto (the aggregate purchase price, the “Purchase Price”).

 

(b)       The
Purchaser acknowledges that the Purchased Securities will be subject to restrictions on transfer as set forth in this Agreement.
The Purchaser further acknowledges that the Private Placement is being made without registration of the Purchased Securities under
the Securities Act or any securities law of any state of the United States or of any other jurisdiction.

 

(c)       The
issue of the Purchased Securities will not restrict or prevent the Corporation from obtaining any other financing, or from issuing
additional securities, options, warrants or rights.

 

2.       The
Closing. The closing of the purchase and sale of the Purchased Securities (the “Closing”) shall take place
on the date hereof at the offices of the Corporation, Suite 2300, 1177 West Hastings Street, Vancouver, British Columbia V6E 2K3,
or at such other time and place as the Corporation and the Purchaser may agree.

 

3.       Payment
for Securities. Payment for the Purchased Securities shall be received by the Corporation from the Purchaser by wire transfer
of immediately available funds to an account specified by the Corporation in writing at or prior to the Closing, in the amount
of the aggregate Purchase Price set forth on the signature page hereto. The Corporation shall deliver certificates representing
the Purchased Securities to the Purchaser at the Closing bearing the legend referred to in Section 7 of this Agreement.

 

     

     

    

  

4.       Representations
and Warranties of the Corporation. The Corporation represents, warrants, covenants and certifies to and with the Purchaser
that, as of the date of this Agreement and at the Closing:

 

(a)       The
Corporation is a valid and subsisting company incorporated and in good standing under the laws of the Province of British Columbia,
and each of the Corporation’s subsidiaries is a valid and subsisting corporation organized and in good standing under the
laws of its respective jurisdiction of organization.

 

(b)       This
Agreement has been or will be at the Closing duly authorized by all necessary corporate action on the part of the Corporation,
and the Corporation has full corporate power and authority to undertake the Private Placement and to issue, sell and deliver the
Purchased Securities.

 

(c)       This
Agreement has been duly executed and delivered by the Corporation and, when accepted by the Corporation, will constitute a legal,
valid and binding obligation enforceable against the Corporation in accordance with the terms hereof, in each case subject to bankruptcy,
insolvency, reorganization, moratorium and similar laws of general application relating to or affecting creditors’ rights
and to general equity principles.

 

(d)       The
Corporation and each of its subsidiaries is duly registered and licensed to carry on business in each jurisdiction in which it
carries on business or owns property where required under the laws of that jurisdiction, except for those jurisdictions where the
failure to be so registered and licensed would not have a material adverse effect on the business, prospects, properties or operations
of the Corporation and its subsidiaries, taken as a whole.

 

(e)       The
Corporation has filed all required annual and quarterly reports, financial statements, proxy statements/information circulars,
press releases, material change reports and other documents required to be filed by or on behalf of the Corporation within the
past 12 months (collectively, the “Public Filings”) with The Toronto Stock Exchange (the “TSX”)
and the NYSE American LLC (together with the TSX, the “Exchanges”) and any regulatory authority in the United
States and such other jurisdictions in which the Corporation is required to make such filings, including, without limitation, the
securities regulator in the Provinces of British Columbia, Alberta and Ontario (the “Canadian Securities Regulators”)
and the U.S. Securities and Exchange Commission (the “SEC” and, together with the Canadian Securities Regulators,
the “Commissions”). All of the Public Filings were true and correct in all material respects as at the
respective dates of such filings, and did not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they
were made, not misleading as at the respective dates of such filings. There is not presently any material change, as defined in
the Securities Laws, relating to the Corporation or change in any material fact, as defined in the Securities Laws (as defined
below), relating to the Corporation or any of the Purchased Securities, which has not been fully disclosed in accordance with the
requirements of the Securities Laws and the policies of the Exchanges.

 

(f)       Except
as set forth in the Public Filings, neither the Corporation nor any of its subsidiaries has any liabilities or obligations of any
nature (whether accrued, absolute, contingent or otherwise) required by generally accepted accounting principles to be set forth
on a consolidated balance sheet of the Corporation and its consolidated subsidiaries or in the notes thereto which, individually
or in the aggregate, could reasonably be expected to have a material adverse effect on the Corporation or its subsidiaries.

 

    2 

     

    

 

(g)       Except
as disclosed in the Public Filings filed and publicly available prior to the date of this Agreement (the “Filed Documents”),
and except as expressly contemplated by this Agreement, since the date of the most recent audited financial statements included
in the Filed Documents, the Corporation conducted its business only in the ordinary course, and there has not been (i) any material
change in the Corporation, (ii) any declaration setting aside or payment of any dividend or other distribution (whether in cash
stock or property) with respect to any of the Corporation’s capital stock, (iii) any split, combination or reclassification
of any of its capital stock or any issuance or the authorization of any issuance of any other securities in respect of, in lieu
of or in substitution for shares of its capital stock, (iv) (x) any granting by the Corporation or any of its subsidiaries to any
officer of the Corporation or any of its subsidiaries of any increase in compensation, except in the ordinary course of business
consistent with prior practice or as was required under employment agreements in effect as of the date of the most recent audited
financial statements included in the Filed Documents, (y) any granting by the Corporation or any of its subsidiaries to any officer
of any increase in severance or termination pay, except as was required under any employment, severance or termination agreements
in effect as of the date of the most recent audited financial statements included in the Filed Documents, or (z) any entry by the
Corporation or any of its subsidiaries into any employment, severance or termination agreement with any officer, (v) any damage,
destruction or loss, whether or not covered by insurance, that has or is likely to have a material adverse effect on the Corporation
or its subsidiaries, or (vi) any change in accounting methods, principles or practices by the Corporation or its subsidiaries materially
affecting their respective assets, liabilities or business, except insofar as may have been required by a change in generally accepted
accounting principles.

 

(h)       Except
as qualified by the disclosure in the Public Filings, the Corporation is the beneficial owner of the properties, business and assets
or the interests in the properties, business or assets referred to in the Public Filings as being beneficially owned by the Corporation.
The Corporation and each of its subsidiaries is conducting its business in material compliance with all applicable laws, rules
and regulations of each jurisdiction in which its business is carried on.

 

(i)       Subject
to the representations, warranties and certifications of the Purchaser herein contained being accurate and truthful in all material
respects and the Purchaser fulfilling all of its covenants and obligations herein contained, the Corporation has complied and will
comply fully with (i) all applicable statutes, laws, ordinances, regulations, rules, judgments, decrees and orders of any governmental
entity applicable to its business or operations and (ii) the requirements of all applicable corporate and securities laws and administrative
policies and directions, including, without limitation, the securities legislation and regulations of, and the instruments, policies,
rules, orders, codes, notices and interpretation notes of, each of the Commissions, state securities laws and the Securities Act
(collectively, the “Securities Laws”) and the Business Corporations Act (British Columbia) in relation
to the Private Placement.

 

(j)       The
issue and sale of the Purchased Securities by the Corporation does not and will not conflict with, and does not and will not (including,
without limitation, with the giving of notice, the lapse of time or the happening of any other event or condition or any combination
of the foregoing) result in a material breach of, any of the terms of the Corporation’s constituent documents or any material
agreement or instrument to which the Corporation is a party or by which it is bound.

 

(k)       The
issue and sale of the Purchased Securities by the Corporation qualifies as an “Exempt Acquisition” under the Amended
& Restated Shareholder Rights Plan Agreement dated August 26, 2009 (as amended and restated on September 19, 2012) among the
Corporation and Computershare Investor Services Inc.

 

(l)       The
authorized capital of the Corporation consists of 500,000,000 Common Shares without par value, of which, immediately prior to the
Closing, 162,392,996 Common Shares are issued and outstanding. Except for as provided in the Public Filings, no person has any
right, agreement or option, present or future, contingent or absolute, or any right capable of becoming such a right, agreement
or option, for the issue or allotment of any unissued shares in the capital of the Corporation, or any other security convertible
into or exchangeable for any such shares, or to require the Corporation to purchase, redeem or otherwise acquire any of the issued
and outstanding shares in its capital.

 

    3 

     

    

  

(m)       The
Purchased Securities, when issued, sold, and delivered in accordance with the terms of this Agreement for the consideration expressed
herein, will be validly issued and outstanding, fully-paid and non-assessable.

 

(n)       No
person, firm or corporation has, or will have, as a result of any action taken by the Corporation or any of its representatives,
in the context of the transaction specifically contemplated by this Agreement, any rights, interest or valid claim against or upon
the Corporation or the Purchaser for any commission, fee or other compensation as a finder or broker or in any similar capacity.

 

(o)       No
approval, authorization, consent or other order of, and no filing, registration or recording with, any governmental authority is
required to be obtained or made by the Corporation in connection with the execution and delivery by the Corporation of this Agreement
or the performance by the Corporation of its obligations hereunder, except such approvals, authorizations, consents, orders, filing,
registrations or recordings required under the Securities Laws and the rules of the Exchanges, which shall be obtained or made
by the Corporation prior to the Closing or otherwise within the periods prescribed thereunder.

 

(p)       The
Corporation has not relied upon the Purchaser for investment, legal or tax advice, or other professional advice, and has in all
cases sought or elected not to seek the advice of its own personal investment advisers, legal counsel and tax advisers.

 

(q)       The
Corporation acknowledges (i) that the Purchaser has not been asked by the Corporation to agree, nor has the Purchaser agreed with
the Corporation, to desist from purchasing or selling, long and/or short, securities of the Corporation, or “derivative”
securities based on securities issued by the Corporation or to hold the Purchased Securities for any specified term, and (ii) that
the Purchaser, and counter parties in “derivative” transactions to which the Purchaser is a party, directly or indirectly,
presently may have a “short” position in the Common Shares which were established prior to the Purchaser’s knowledge
of the transactions contemplated by this Agreement. The Corporation further understands and acknowledges that following the public
disclosure of the transactions contemplated by this Agreement, the Purchaser may engage in hedging and/or trading activities at
various times during the period that the Purchased Securities are outstanding, and that such hedging and/or trading activities,
if any, can reduce the value of the existing shareholders’ equity interest in the Corporation both at and after the time
the hedging and/or trading activities are being conducted.

 

(r)       The
Corporation has not disclosed to the Purchaser or any of its officers, directors, employees, affiliates, representatives or agents
any material information, which has not been generally disclosed, regarding the Corporation or its subsidiaries or affiliates in
connection with the transactions contemplated by this Agreement.

 

(s)       No
“bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a “Disqualification
Event”) is applicable to the Corporation or, to the Corporation’s knowledge, any person having a relationship with
the Corporation listed in the first paragraph of Rule 506(d)(1), except for a Disqualification Event as to which Rule 506(d)(2)(ii–iv)
or (d)(3), is applicable.

 

(t)       Neither
the Corporation nor any of its subsidiaries is a party to any actions, suits or proceedings which could materially affect its business
or financial condition, and to the best of the Corporation’s knowledge, no such actions, suits or proceedings are contemplated
or have been threatened.

 

    4 

     

    

  

(u)       There
are no judgments against the Corporation which are unsatisfied, nor is the Corporation subject to any consent decrees or injunctions.

 

(v)       To
the Corporation’s knowledge, after due enquiry, no order ceasing or suspending trading in securities of the Corporation or
prohibiting the sale of such securities has been issued to and is outstanding against the Corporation or its directors, officers
or promoters, and no proceedings for such purpose are pending or threatened.

 

(w)       The
Common Shares (i) do not constitute a U.S. Real Property Interest for purposes of the United States Internal Revenue Code of 1986,
as amended, and (ii) are not, and are not deemed to be, “taxable Canadian property” for purposes of the Income Tax
Act (Canada).

 

(x)       None
of the Corporation, its subsidiaries or any of their respective officers, directors or employees acting on behalf of the Corporation
or any of its subsidiaries has taken, committed to take or been alleged to have taken any action which would cause the Corporation
or any of its subsidiaries to be in violation of the Corruption of Foreign Public Officials Act (Canada) (and the regulations
promulgated thereunder) or any applicable law of similar effect of another jurisdiction including, without limitation, the U.S.
Foreign Corrupt Practices Act of 1977, as amended, and to the knowledge of the Corporation no such action has been taken by any
of its agents, representatives or other Persons acting on behalf of the Corporation or any of its subsidiaries.

 

(y)       Neither
the Corporation nor any of its subsidiaries has, and, to the Corporation’s knowledge, no person acting on their behalf has,
(i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price
of any security of the Corporation to facilitate the sale or resale of the Common Shares, (ii) sold, bid for, purchased, or paid
any compensation for soliciting purchases of, any of the Common Shares, or (iii) paid or agreed to pay to any person any compensation
for soliciting another to purchase any other securities of the Corporation.

 

(z)       Other
than its shares of its subsidiaries and 65,000 shares of Millrock Resources, Inc. held as marketable securities, the Corporation
does not own and does not have any agreements of any nature to acquire, directly or indirectly, any securities, or other equity
or proprietary interest in any person or entity, and the neither the Corporation nor any of its subsidiaries is a party to any
agreement to acquire or lease any other business operations.

 

(aa)The
Corporation has filed in a timely manner all necessary tax returns and notices and has paid all applicable taxes of whatsoever
nature for all tax years prior to the date hereof to the extent that such taxes have become due or have been alleged by the Canada
Revenue Agency, the Internal Revenue Service or any other taxation authority to be due. There are no agreements, waivers or other
arrangements providing for an extension of time with respect to the filing of any tax return by the Corporation or the payment
of any material tax, governmental charge, penalty, interest or fine against the Corporation. The Corporation has no liability for
taxes except those arising in the ordinary course of its business. There are no material actions, suits, proceedings, audits, investigations
or claims in progress, now threatened or pending against the Corporation which could result in a material liability in respect
of taxes, charges or levies of any governmental authority, penalties, interest, fines, assessments or reassessments or any matters
under discussion with any governmental authority relating to taxes, governmental charges, penalties, interest, fines, assessments
or reassessments asserted by any such authority and the Corporation has withheld (where applicable) from each payment to each of
the present and former officers, directors, employees and consultants thereof the amount of all taxes and other amounts, including,
but not limited to, income tax and other deductions, required to be withheld therefrom, and has paid the same or will pay the same
when due to the proper tax or other receiving authority within the time required under applicable tax legislation.

 

(bb)The
Corporation has its property and assets insured against loss or damage by insurable hazards or risks on a basis consistent with
insurance obtained by reasonably prudent participants in businesses comparable to the business of the Corporation and its subsidiaries.
Such insurance coverage is of a type and in an amount typical to the business in which each of the Corporation and its subsidiaries
operates as conducted by a reasonably prudent person, based on the advice of insurance brokers consulted by the Corporation and
its subsidiaries. Each of the Corporation and its subsidiaries has not made any material claim on any policy of insurance or been
refused any insurance coverage sought or applied for. Each of the Corporation and its subsidiaries has no reason to believe that
it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that would not be reasonably expected to have a material
adverse effect on the Corporation’s business.

 

    5 

     

    

  

(cc)Each
of the Corporation and its subsidiaries owns, or to its knowledge, has the right to use all information used by the Corporation
and its subsidiaries (including for the purposes of any technical reports pursuant to Canadian National Instrument 43-101 - Standards
of Disclosure for Mineral Projects (“NI 43-101”) without infringing the intellectual property rights of
others.

 

(dd)The
Corporation has filed all technical reports as required by NI 43-101, and all such reports have been prepared in material compliance
with the requirements of NI 43-101. In addition, with respect to each press release issued, and any other documents filed, by or
on behalf of the Corporation in respect of which any requirements of such Canadian National Instrument applied, each such press
release and document also complied in all material respects as to form, substance and otherwise with the requirements of such Canadian
National Instrument.

 

5.       Representations
and Warranties of the Purchaser. The Purchaser, severally and not jointly with any other purchaser of Common Shares, represents,
warrants, covenants and certifies to and with the Corporation that, as of the date of this Agreement and at the Closing:

 

(a)       The
Purchaser acknowledges that the Corporation is relying on exemptions from the requirements under the Securities Laws to provide
the Purchaser with a prospectus or registration statement and no prospectus or registration statement has been filed by the Corporation
with any of the Commissions in connection with the issuance of the Purchased Securities, and that the Corporation is relying in
part upon the truth and accuracy of, and such Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments
and understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility
of such Purchaser to acquire the Purchased Securities, and as a consequence:

 

(i)       the
Purchaser may not receive information that would otherwise be required to be provided to the Purchaser under the Securities Laws;
and

 

(ii)       the
Corporation is relieved from certain obligations that would otherwise apply under the Securities Laws.

 

(b)       The
Purchaser has the knowledge and experience in financial and business matters necessary to evaluate the merits and risks of its
prospective investment in the Corporation, and has carefully reviewed and understands the risks of, and other considerations relating
to, the purchase of the Purchased Securities and the tax consequences of the investment, and has the ability to bear the economic
risks of the investment. The Purchaser can afford the loss of its entire investment.

 

(c)       The
Purchaser is acquiring the Purchased Securities for investment for its own account and not with the view to, or for resale in connection
with, any distribution thereof. The Purchaser understands and acknowledges that the Private Placement and sale of the Purchased
Securities have not been registered under the Securities Act or the securities laws of any state or other jurisdiction, by reason
of a specific exemption from the registration provisions of the Securities Act and applicable state securities laws, which depends
upon, among other things, the bona fide nature of the investment intent as expressed herein. The Purchaser further represents that
it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to
any third person with respect to any of the Purchased Securities. The Purchaser understands and acknowledges that the Private Placement
of the Purchased Securities will not be registered under the Securities Act nor under the securities laws of any state or other
jurisdiction on the ground that the sale of the Purchased Securities to the Purchaser as provided for in this Agreement and the
issuance of securities hereunder is exempt from the registration requirements of the Securities Act and any applicable state or
other securities laws. The Purchaser is an “accredited investor” as defined in Rule 501 of Regulation D as promulgated
by the SEC under the Securities Act, for the reason(s) specified on the Accredited Investor Certification provided by the
Purchaser as completed by Purchaser, and Purchaser shall submit to the Corporation such further assurances of such status as may
be reasonably requested by the Corporation. The Purchaser resides in the jurisdiction set forth on the signature page attached
hereto. The Purchaser has not taken any of the actions set forth in, and is not subject to, the disqualification provisions of
Rule 506(d)(1) of the Securities Act.

 

    6 

     

    

  

(d)       The
Purchaser represents that it (i) was not formed for the specific purpose of acquiring the Purchased Securities, (ii) is duly organized,
validly existing and in good standing under the laws of the state or jurisdiction of its organization, and (iii) has full power
and authority to execute and deliver this Agreement and to carry out the provisions hereof and to purchase and hold the Purchased
Securities, and further the Purchaser represents that the consummation of the transactions contemplated hereby is authorized by,
and will not result in a violation of state law or its charter or other organizational documents. This Agreement has been duly
executed and delivered by the Purchaser and, when accepted by the Corporation, will constitute a legal, valid and binding obligation
enforceable against the Purchaser in accordance with the terms hereof, in each case subject to bankruptcy, insolvency, reorganization,
moratorium and similar laws of general application relating to or affecting creditors’ rights and to general equity principles.
The execution and delivery of this Agreement will not violate or be in conflict with any order, judgment, injunction, agreement
or controlling document to which the Purchaser is a party or by which it is bound.

 

(e)       The
Purchaser has received, reviewed and understood the information about the Corporation, including as set forth in the Public Filings,
and has had an opportunity to discuss the Corporation’s business, management and financial affairs with the Corporation’s
management. The Purchaser understands that such discussions were intended to describe the aspects of the Corporation’s business
and prospects and the Private Placement which the Corporation believes to be material, but were not necessarily a thorough or exhaustive
description, and except as expressly set forth in this Agreement, the Corporation makes no representation or warranty with respect
to the completeness of such information and makes no representation or warranty of any kind with respect to any information provided
by any entity other than the Corporation. The Purchaser acknowledges that it is not relying upon any person or entity, other than
the Corporation and its officers and directors, in making its investment or decision to invest in the Corporation. The Purchaser
has sought such accounting, legal and tax advice as the Purchaser has considered necessary to make an informed investment decision
with respect to its acquisition of the Purchased Securities.

 

(f)       The
Corporation has advised the Purchaser that no agency, stock exchange or governmental agency, securities commission or similar regulatory
authority or other entity has reviewed or passed on or made any finding or determination as to the merits of or made any recommendation
or endorsement with respect to the Purchased Securities.

 

(g)       The
Purchaser has been advised to consult its own legal advisors with respect to the applicable hold periods imposed in respect of
the Purchased Securities by the applicable Securities Laws and confirms that no representation by the Corporation has been made
respecting the hold periods applicable to the Purchased Securities and the Purchaser is solely responsible (and the Corporation
is not responsible) for compliance with the applicable resale restrictions.

 

(h)       The
Purchaser acknowledges and consents to the fact that the Corporation is collecting Personal Information of the Purchaser for the
purpose of completing this Agreement. For purposes of this Agreement, “Personal Information” means any personal
information as that term is defined under applicable privacy legislation, including, without limitation, the Personal Information
Protection and Electronic Documents Act (Canada) and any other applicable similar, replacement or supplemental provincial or
federal legislation or laws in effect from time to time and without limiting the foregoing, but for greater clarity in this Agreement,
means information about an identifiable individual, including but not limited to any information about the Purchaser and includes
information provided by the Purchaser in this Agreement. The Purchaser acknowledges and consents to the Corporation retaining such
Personal Information for as long as permitted or required by law or business practices, and the Purchaser agrees and acknowledges
that the Corporation may use and disclose such Personal Information:

 

    7 

     

    

  

(i)       for
internal use with respect to managing the relationships between and contractual obligations of the Corporation and the Purchaser;

 

(ii)       for
use and disclosure for income tax-related purposes, including, without limitation, where required by law, disclosure to the Canada
Revenue Agency;

 

(iii)       to
professional advisers of the Corporation;

 

(iv)       to
securities regulatory authorities and other regulatory bodies with jurisdiction with respect to reports of trade or similar regulatory
filings;

 

(v)       to
a governmental or other authority to which the disclosure is required by court order or subpoena compelling such disclosure and
where there is no reasonable alternative to such disclosure;

 

(vi)       to
any person where such disclosure is necessary for legitimate business reasons and is made with the Purchaser’s prior written
consent;

 

(vii)       to
a court determining the rights of the parties under this Agreement; and

 

(viii)       for
use and disclosure as otherwise required by law.

 

In addition, the Purchaser further acknowledges
and consents to the fact that the Corporation may be required to provide any one or more of the Canadian securities regulators,
stock exchanges, the Investment Industry Regulatory Organization of Canada, other regulatory agencies or the Corporation’s
registrar and transfer agent with any Personal Information provided by the Purchaser in this Agreement, and may make any other
filings of such Personal Information as the Corporation’s counsel deems appropriate, and the Purchaser acknowledges receipt
of notification of the disclosure of Personal Information by the Corporation to the Exchanges and the Purchaser hereby consents
to and authorizes the foregoing use and disclosure of such Personal Information and agrees to provide, on request, all particulars
required by the Corporation in order to comply with the foregoing.

 

(i)       The
Purchaser further acknowledges and expressly consents to the disclosure of Personal Information by the Corporation to the Exchanges
and other applicable regulatory authorities, as and to the extent required, and the collection, use and disclosure of Personal
Information by the Exchanges for such purposes as may be identified by the Exchanges from time to time.

 

(j)       The
funds representing the aggregate Purchase Price in respect of the Purchased Securities which will be advanced by the Purchaser
to the Corporation hereunder will not represent proceeds of crime for the purpose of the Proceeds of Crime (Money Laundering)
and Terrorist Financing Act (Canada) (the “PCMLTF Act”) or the United States Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (as amended, the “PATRIOT
Act”) and the Purchaser acknowledges that the Corporation may in the future be required by law to disclose the Purchaser’s
name and other information relating to this Agreement and the Purchaser’s subscription hereunder, on a confidential basis,
pursuant to the PCMLTF Act, PATRIOT Act or other “know your customer” and anti-money laundering rules and regulations.
To the best of the Purchaser’s knowledge, none of the subscription funds to be provided hereunder:

 

    8 

     

    

  

(i)       have
been or will be obtained or derived, directly or indirectly, from or related to any activity that is deemed illegal under the laws
of Canada or the United States or any other jurisdiction, or

 

(ii)       are
being tendered on behalf of a person or entity who has not been identified to the Purchaser.

 

The Purchaser will promptly notify the Corporation
if it discovers that any such representation ceases to be true, and will provide the Corporation with appropriate information in
connection therewith.

 

(k)       No
person has made any written or oral representations to the Purchaser:

 

(i)       that
any Person will resell or repurchase any of the Purchased Securities;

 

(ii)       that
any Person will refund the Purchase Price of any of the Purchased Securities;

 

(iii)       as
to the future price or value of any of the Purchased Securities; or

 

(iv)       other
than as set forth in this Agreement, that any of the Purchased Securities will be listed and posted for trading on a stock exchange
or that application has been made to list and post any of the Purchased Securities for trading on a stock exchange.

 

(l)       The
Purchaser acknowledge that the Purchaser has not received an offering memorandum, prospectus or other disclosure document in respect
of the Purchased Securities or the Corporation describing the business and affairs of the Corporation in order to assist the Purchaser
in making an investment decision in respect of the Purchased Securities, that the Purchaser has had access to the Corporation’s
public filings on the Internet at www.sedar.com and www.sec.gov and that the Purchaser has not become aware of any
advertisement in printed media of general and regular paid circulation, radio or television with respect to the distribution of
the Purchased Securities.

 

(m)       The
Purchaser’s decision to tender this offer and purchase the Purchased Securities has not been made as a result of any non-public
oral or written representation as to fact made by or on behalf of the Corporation or any other Person and is based entirely upon
the representations, warranties and covenants of the Corporation provided to the Purchaser in this Agreement and on currently available
public information concerning the Corporation.

 

(n)       If
required by applicable Securities Laws, policy or order or by any Commission or Exchange, the Purchaser will execute, deliver,
file and otherwise assist the Corporation in filing, such reports, undertakings and other documents with respect to the issue of
the Purchased Securities as may be reasonably required.

 

(o)       The
Purchaser acknowledges that legal counsel retained by the Corporation is acting as counsel to the Corporation and not as counsel
to the Purchaser and the Purchaser may not rely upon such counsel in any respect.

 

    9 

     

    

  

6.       Conditions
to Obligations of the Purchaser and the Corporation. The obligations of the Purchaser to purchase and pay for the Purchased
Securities and of the Corporation to sell the Purchased Securities are subject to the representations and warranties of the Corporation
contained in Section 4 hereof and of the Purchaser contained in Section 5 hereof being true and correct as of the
Closing in all respects.

 

7.       Legend.
The certificates representing the Purchased Securities will be imprinted with a legend in substantially the following form:

 

“THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”) OR ANY APPLICABLE STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT
OF INTERNATIONAL TOWER HILL MINES LTD. (THE “CORPORATION”) THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED
OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH
RULE 904 OF REGULATION S UNDER THE 1933 ACT AND IN COMPLIANCE WITH LOCAL LAWS AND REGULATIONS, (C) IN COMPLIANCE WITH THE EXEMPTION
FROM REGISTRATION UNDER THE 1933 ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE
SECURITIES OR “BLUE SKY” LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE 1933 ACT OR ANY
APPLICABLE STATE SECURITIES LAWS, AND, IN THE CASE OF SUBPARAGRAPH (C) OR (D), THE SELLER FURNISHES TO THE CORPORATION AN OPINION
OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE CORPORATION TO SUCH EFFECT. DELIVERY OF
THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

 

UNLESS PERMITTED UNDER CANADIAN
SECURITIES LEGISLATION. THE HOLDER OF THE SECURITIES REPRESENTED HEREBY MUST NOT TRADE THE SECURITIES BEFORE [INSERT THE
DATE THAT IS 4 MONTHS AND A DAY AFTER THE CLOSING DATE].”

 

8.       Public
Disclosure. Neither the Corporation nor the Purchaser shall, except as required by applicable law, regulation or Exchange rule,
issue any press release that describes the transactions contemplated herein and that identifies the Corporation, the Purchaser,
or any of their respective affiliates without the prior consent of the Corporation or the Purchaser (as applicable), which consent
shall not be unreasonably withheld. For the avoidance of doubt, the consent of the Purchaser shall not be required for any press
release or other disclosure in regard to the transactions contemplated herein by the Corporation that does not identify the Purchaser.

 

9.       Fees
and Expenses. Except as otherwise expressly provided in this Agreement, all fees and expenses, including fees and expenses
incurred in connection with the preparation, execution, and delivery of this Agreement and the transactions contemplated herein,
shall be paid by the party incurring such fee or expense.

 

10.       Waiver
of Certain Rights. The Purchaser hereby waives any and all preemptive rights, participation rights, resale rights, rights of
first refusal and similar rights that it may have in connection with the Private Placement, provided, that for the avoidance of
doubt such waiver shall not apply to any future offerings of the Corporation’s securities.

 

11.       Further
Assurances. Subject to the terms and conditions set forth in this Agreement, each of the parties hereto shall use its commercially
reasonable efforts (subject to, and in accordance with, applicable law) to take, or cause to be taken, promptly all actions, and
to do, or cause to be done, promptly and to assist and cooperate with the other parties in doing, all things necessary, proper
or advisable under applicable laws to consummate and make effective the transactions contemplated by this Agreement.

 

    10 

     

    

  

12.       General.

 

(a)       Waiver,
Amendment. Neither this Agreement nor any provisions hereof shall be modified, changed, discharged or terminated except by
an instrument in writing, signed by the party against whom any waiver, change, discharge or termination is sought.

 

(b)       Assignability.
Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable
by either the Corporation or the Purchaser without the prior written consent of the other party.

 

(c)       Waiver
of Jury Trial. THE PURCHASER IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING
OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

(d)       Submission
to Jurisdiction. With respect to any suit, action or proceeding relating to any offers, purchases or sales of the Securities
by the Purchaser (“Proceedings”), the Purchaser irrevocably submits to the jurisdiction of the federal or state
courts located in the Borough of Manhattan in New York City, which submission shall be exclusive unless none of such courts has
lawful jurisdiction over such Proceedings.

 

(e)       Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard
to any conflict of law rule or principle that would give effect to the laws of another jurisdiction.

 

(f)       Section
and Other Headings. The section and other headings contained in this Agreement are for reference purposes only and shall not
affect the meaning or interpretation of this Agreement.

 

(g)       Counterparts.
This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which together shall be deemed to be one and the same agreement.

 

(h)       Notices.
All notices and other communications provided for herein shall be in writing and shall be deemed to have been duly given if delivered
personally or sent by registered or certified mail, return receipt requested, postage prepaid to the following addresses (or such
other address as either party shall have specified by notice in writing to the other):

 

	If to the Corporation:	
        International Tower Hill Mines Ltd.

        Suite 2300, 1177 West Hastings Street

        Vancouver, British Columbia V6E 2K3

        Facsimile: (604) 408-7499

        Attention: Chief Executive Officer

         

	If to the Purchaser, at the address set forth on the signature page hereof.

 

    11 

     

    

 

 

(i)       Binding
Effect. The provisions of this Agreement shall be binding upon and accrue to the benefit of the parties hereto and their respective
heirs, legal representatives, successors and assigns.

 

(j)       Survival.
Notwithstanding any other provision of this Agreement, the representations, warranties, covenants and indemnities of or by the
Corporation and the Purchaser contained herein or in any certificate, document or instrument delivered pursuant hereto shall survive
the completion of the transactions contemplated by this Agreement.

 

(k)       Severability.
If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term
or provision in any other jurisdiction.

 

[SIGNATURE PAGE FOLLOWS]

 

    12 

     

    

 

IN WITNESS WHEREOF, the
Purchaser has executed this Subscription Agreement as of March 13, 2018.

 

	 	PAULSON & CO. INC., on behalf of the several investment funds and accounts managed by it
	 	 
	 	By: 	/s/ Michael Waldorf
	 	Name: 	Michael Waldorf 
	 	Title:	Authorized Signatory

  

State/Country of Domicile or Formation: Delaware

 

Address of Principal Offices: 1251 Avenue
of the Americas, New York, NY 10020

  

 

Purchased Securities to Be Acquired: 4,105,472
Common Shares

 

Aggregate Purchase Price to be Paid: US$2,052,736

 

 

 

The offer to purchase Purchased Securities
as set forth above is confirmed and accepted by the Corporation as of March 13, 2018.

 

	 	INTERNATIONAL TOWER HILL MINES LTD.
	 	 	 
	 	By:	/s/ Karl Hanneman
	 	Name:	Karl Hanneman
	 	Title:	President and CEO

 

    
[Signature Page to Subscription Agreement]

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