Document:

Exhibit
4.2

 

[FORM OF WARRANT]

 

China
Shen Zhou Mining & Resources, Inc.

 

Warrant
To Purchase Common Stock

 

Warrant No.: ______

Date of Exchange: August __, 2012 (the “Exchange Date”)

Date of Issuance: March 26, 2012 (“Issuance Date”)

 

China Shen Zhou Mining
& Resources, Inc., a Nevada corporation (the “Company”), hereby certifies that, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, [BUYERS], the registered holder hereof or its permitted assigns
(the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise
Price (as defined below) then in effect, upon exercise of this Warrant to Purchase Common Stock (including any Warrants to Purchase
Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or times on or
after the Issuance Date, but not after 11:59 p.m., New York time, on the Expiration Date (as defined below), [______________]
(subject to adjustment as provided herein) fully paid and non-assessable shares of Common Stock (as defined below) (the
“Warrant Shares”). Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings
set forth in Section 17. This Warrant is one of an issue of Warrants (collectively, the “SPA Warrants”) issued
pursuant to the Amendment and Exchange Agreements, dated as of August __, 2012, each by and between a holder of a warrant to purchase
Common Stock as of the Exchange Date (the “Existing Warrant”) and the Company (the “Exchange Agreements”)
in exchange for such Existing Warrant that was originally issued pursuant to Section 1 of that certain Securities Purchase Agreement,
dated as of March 21, 2012, as amended, by and among the Company and the investors (the “Buyers”) referred
to therein (as amended from time to time, including, without limitation, by the Exchange Agreements, the “Securities
Purchase Agreement”).

 

    	 

    	 

    
 

		1.	EXERCISE OF WARRANT.

 

(a)        Mechanics of Exercise.
Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section 1(f)), this Warrant
may be exercised by the Holder on any day on or after the Exchange Date, in whole or in part, by delivery (whether via facsimile
or otherwise) of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”),
of the Holder’s election to exercise this Warrant. Within one (1) Trading Day following an exercise of this Warrant as aforesaid,
the Holder shall deliver payment to the Company of an amount equal to the Exercise Price in effect on the date of such exercise
multiplied by the number of Warrant Shares as to which this Warrant was so exercised (the “Aggregate Exercise Price”)
in cash or via wire transfer of immediately available funds if the Holder did not notify the Company in such Exercise Notice that
such exercise was made pursuant to a Cashless Exercise (as defined in Section 1(d)). The Holder shall not be required to deliver
the original of this Warrant in order to effect an exercise hereunder. Execution and delivery of an Exercise Notice with respect
to less than all of the Warrant Shares shall have the same effect as cancellation of the original of this Warrant and issuance
of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. Execution and delivery of an Exercise
Notice for all of the then-remaining Warrant Shares shall have the same effect as cancellation of the original of this Warrant
after delivery of the Warrant Shares in accordance with the terms hereof. On or before the first (1st) Trading Day
following the date on which the Company has received an Exercise Notice, the Company shall transmit by facsimile an acknowledgment
of confirmation of receipt of such Exercise Notice, in the form attached hereto as Exhibit B, to the Holder and the Company’s
transfer agent (the “Transfer Agent”). On or before the third (3rd) Trading Day following the date
on which the Company has received such Exercise Notice, the Company shall (X) provided that the Transfer Agent is participating
in The Depository Trust Company (“DTC”) Fast Automated Securities Transfer Program, upon the request of the
Holder, credit such aggregate number of shares of Common Stock to which the Holder is entitled pursuant to such exercise to the
Holder’s or its designee’s balance account with DTC through its Deposit/ Withdrawal at Custodian system, or (Y) if
the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the Holder
or, at the Holder’s instruction pursuant to the Exercise Notice, the Holder’s agent or designee, in each case, sent
by reputable overnight courier to the address as specified in the applicable Exercise Notice, a certificate, registered in the
Company’s share register in the name of the Holder or its designee (as indicated in the applicable Exercise Notice), for
the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise. Upon delivery of an Exercise Notice,
the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to
which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder’s DTC account
or the date of delivery of the certificates evidencing such Warrant Shares (as the case may be). If this Warrant is submitted
in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted
for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then, at the request of the Holder,
the Company shall as soon as practicable and in no event later than three (3) Business Days after any exercise and at its own
expense, issue and deliver to the Holder (or its designee) a new Warrant (in accordance with Section 7(d)) representing the right
to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of
Warrant Shares with respect to which this Warrant is exercised. No fractional shares of Common Stock are to be issued upon the
exercise of this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole
number. The Company shall pay any and all taxes and fees which may be payable with respect to the issuance and delivery of Warrant
Shares upon exercise of this Warrant. Notwithstanding the foregoing, except in the case where an exercise of this Warrant is validly
made pursuant to a Cashless Exercise (as defined in Section 1(d)), the Company’s failure to deliver Warrant Shares to the
Holder on or prior to the second (2nd) Trading Day after the Company’s receipt of the Aggregate Exercise Price shall not
be deemed to be a breach of this Warrant.

 

(b)        Exercise
Price. For purposes of this Warrant, “Exercise Price” means $1.00, subject to adjustment as provided herein.

 

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(c)        Company’s
Failure to Timely Deliver Securities. If the Company shall fail, for any reason or for no reason, to issue to the Holder within
the later of (i) three (3) Trading Days after receipt of the applicable Exercise Notice and (ii) two (2) Trading Days after the
Company’s receipt of the Aggregate Exercise Price (or valid notice of a Cashless Exercise) (such later date, the “Share
Delivery Deadline”), a certificate for the number of shares of Common Stock to which the Holder is entitled and register
such shares of Common Stock on the Company’s share register or to credit the Holder’s balance account with DTC for
such number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise of this Warrant (as the
case may be), and if on or after such Share Delivery Deadline the Holder purchases (in an open market transaction or otherwise)
shares of Common Stock to deliver in satisfaction of a sale by the Holder of shares of Common Stock issuable upon such exercise
that the Holder anticipated receiving from the Company, then, in addition to all other remedies available to the Holder, the Company
shall, within three (3) Business Days after the Holder’s request and in the Holder’s discretion, either (i) pay cash
to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the
shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s obligation to
deliver such certificate or credit the Holder’s balance account with DTC for the number of shares of Common Stock to which
the Holder is entitled upon the Holder’s exercise hereunder (as the case may be) (and to issue such shares of Common Stock)
shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such
shares of Common Stock or credit the Holder’s balance account with DTC for the number of shares of Common Stock to which
the Holder is entitled upon the Holder’s exercise hereunder (as the case may be) and pay cash to the Holder in an amount
equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares of Common Stock multiplied by (B)
the lowest Closing Sale Price of the Common Stock on any Trading Day during the period commencing on the date of the applicable
Exercise Notice and ending on the date of such issuance and payment under this clause (ii).

 

(d)        Cashless Exercise.
Notwithstanding anything contained herein to the contrary (other than Section 1(f) below), if at the time of exercise hereof the
Registration Statement (as defined in the Securities Purchase Agreement)) is not effective (or the prospectus contained therein
is not available for use) for the issuance by the Company to the Holder of all of the Warrant Shares, then the Holder may, in
its sole discretion, exercise this Warrant in whole or in part and, in lieu of making the cash payment otherwise contemplated
to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elect instead to receive upon such exercise
the “Net Number” of shares of Common Stock determined according to the following formula (a “Cashless Exercise”):

Net Number = (A
x B) - (A x C)

 

                                      D

 

For purposes of the
foregoing formula:

 

A= the total number of shares with
respect to which this Warrant is then being exercised.

 

B=the quotient of (x) the sum of
the VWAP of the Common Stock of each of the three (3) Trading Days ending at the close of business on the Principal Market immediately
prior to the time of exercise as set forth in the applicable Exercise Notice, divided by (y) 3.

 

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C= the
Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

 

D= as applicable: (i) the
Closing Sale Price of the Common Stock on the Trading Day immediately preceding the date of the applicable Exercise Notice if
such Exercise Notice is (1) both executed and delivered pursuant to Section 1(a) hereof on a day that is not a Trading Day or
(2) both executed and delivered pursuant to Section 1(a) hereof on a Trading Day prior to the opening of “regular
trading hours” (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such
Trading Day, (ii) the Bid Price of the Common Stock as of the time of the Holder’s execution of the applicable Exercise
Notice if such Exercise Notice is executed during “regular trading hours” on a Trading Day and is delivered
within two (2) hours thereafter pursuant to Section 1(a) hereof or (iii) the Closing Sale Price of the Common Stock on the
date of the applicable Exercise Notice if the date of such Exercise Notice is a Trading Day and such Exercise Notice is both
executed and delivered pursuant to Section 1(a) hereof after the close of “regular trading hours” on such
Trading Day.

 

(e)        Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the number of Warrant
Shares to be issued pursuant to the terms hereof, the Company shall promptly issue to the Holder the number of Warrant Shares
that are not disputed and resolve such dispute in accordance with Section 13.

 

(f)        Limitations
on Exercises.

 

(i)                
Notwithstanding anything to the contrary contained in this Warrant, this Warrant shall not be exercisable by the Holder
hereof to the extent (but only to the extent) that the Holder or any of its affiliates would beneficially own in excess of 
4.99% (the “Maximum Percentage”) of the Common Stock. To the extent the above limitation applies, the determination
of whether this Warrant shall be exercisable (vis-à-vis other convertible, exercisable or exchangeable securities owned
by the Holder or any of its affiliates) and of which such securities shall be exercisable (as among all such securities owned by
the Holder) shall, subject to such Maximum Percentage limitation, be determined on the basis of the first submission to the Company
for conversion, exercise or exchange (as the case may be). No prior inability to exercise this Warrant pursuant to this paragraph
shall have any effect on the applicability of the provisions of this paragraph with respect to any subsequent determination
of exercisability. For the purposes of this paragraph, beneficial ownership and all determinations and calculations (including,
without limitation, with respect to calculations of percentage ownership) shall be determined in accordance with Section 13(d)
of the 1934 Act (as defined in the Securities Purchase Agreement) and the rules and regulations promulgated thereunder. The provisions
of this paragraph shall be implemented in a manner otherwise than in strict conformity with the terms of this paragraph to correct
this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Maximum Percentage beneficial ownership
limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such Maximum Percentage
limitation. The limitations contained in this paragraph shall apply to a successor Holder of this Warrant. The holders of Common
Stock shall be third party beneficiaries of this paragraph and the Company may not waive this paragraph without the consent of
holders of a majority of its Common Stock. For any reason at any time, upon the written or oral request of the Holder, the Company
shall within one (1) Business Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding,
including by virtue of any prior conversion or exercise of convertible or exercisable securities into Common Stock, including,
without limitation, pursuant to this Warrant or securities issued pursuant to the Securities Purchase Agreement. By written notice
to the Company, any Holder may increase or decrease the Maximum Percentage to any other percentage not in excess of 9.99% specified
in such notice; provided that (i) any such increase will not be effective until the 61st day after such notice is delivered to
the Company, and (ii) any such increase or decrease will apply only to the Holder sending such notice and not to any other holder
of SPA Warrants.

 

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(ii)              
Principal Market Regulation. The Company shall not issue any shares of Common Stock upon exercise of this Warrant
if the issuance of such shares of Common Stock would exceed the aggregate number of shares of Common Stock which the Company may
issue upon conversion or exercise (as the case may be) of the Preferred Shares (as defined in the Securities Purchase Agreement)
or otherwise pursuant to the Certificate of Designations (as defined in the Securities Purchase Agreement) and the SPA Warrants
without breaching the Company’s obligations under the rules or regulations of the Principal Market (the number of shares
which may be issued without violating such rules and regulations, the “Exchange Cap”), except that such limitation
shall not apply in the event that the Company (A) obtains the approval of its stockholders as required by the applicable rules
of the Principal Market for issuances of shares of Common Stock in excess of such amount or (B) obtains a written opinion from
outside counsel to the Company that such approval is not required, which opinion shall be reasonably satisfactory to the Holder.
Until such approval or such written opinion is obtained, no Buyer shall be issued in the aggregate, upon exercise or conversion
(as the case may be) of any SPA Warrants or any of the Preferred Shares or otherwise pursuant to the Certificate of Designations,
shares of Common Stock in an amount greater than the product of (i) the Exchange Cap multiplied by (ii) the quotient of (1) the
aggregate number of Preferred Shares issued or issuable to such Buyer pursuant to the Securities Purchase Agreement on any Closing
Date (as defined in the Securities Purchase Agreement) divided by (2) the aggregate number of all Preferred Shares issued or issuable
to the Buyers pursuant to the Securities Purchase Agreement on any Closing Date (with respect to each Buyer, the “Exchange
Cap Allocation”). In the event that any Buyer shall sell or otherwise transfer any of such Buyer’s SPA Warrants,
the transferee shall be allocated a pro rata portion of such Buyer’s Exchange Cap Allocation with respect to such portion
of such SPA Warrants so transferred, and the restrictions of the prior sentence shall apply to such transferee with respect to
the portion of the Exchange Cap Allocation so allocated to such transferee. Upon exercise and conversion in full of a holder’s
SPA Warrants and Preferred Shares or other issuance pursuant to the Certificate of Designations, the difference (if any)
between such holder’s Exchange Cap Allocation and the number of shares of Common Stock actually issued to such holder upon
such holder’s exercise in full of such SPA Warrants and such holder’s conversion in full of such Preferred Shares
shall be allocated to the respective Exchange Cap Allocations of the remaining holders of SPA Warrants and Preferred Shares on
a pro rata basis in proportion to the shares of Common Stock underlying the SPA Warrants and Preferred Shares then held by each
such holder. In the event that the Company is prohibited from issuing all or any part of the Warrant Shares (collectively, the
“Exchange Cap Blocked Shares”) for which an Exercise Notice has been received as a result of the operation
of this Section 1(f)(ii), the Company shall pay cash to the Holder in exchange for such Exchange Cap Blocked Shares on or prior
to the applicable Share Delivery Deadline, at a price per Exchange Cap Blocked Share equal to the difference between the Closing
Sale Price of the Common Stock for the Trading Day immediately preceding the date of the attempted exercise and the Exercise Price
as of such date of attempted exercise.

 

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(g)        Insufficient
Authorized Shares. The Company shall at all times keep reserved for issuance under this Warrant a number of shares of Common
Stock as shall be necessary to satisfy the Company’s obligation to issue shares of Common Stock hereunder (without regard
to any limitation otherwise contained herein with respect to the number of shares of Common Stock that may be acquirable upon
exercise of this Warrant). If, notwithstanding the foregoing, and not in limitation thereof, at any time while any of the SPA
Warrants remain outstanding the Company does not have a sufficient number of authorized and unreserved shares of Common Stock
to satisfy its obligation to reserve for issuance upon exercise of the SPA Warrants at least a number of shares of Common Stock
equal to the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of all of the SPA
Warrants then outstanding (the “Required Reserve Amount”) (an “Authorized Share Failure”),
then the Company shall immediately take all action necessary to increase the Company’s authorized shares of Common Stock
to an amount sufficient to allow the Company to reserve the Required Reserve Amount for all the SPA Warrants then outstanding.
Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized
Share Failure, but in no event later than ninety (90) days after the occurrence of such Authorized Share Failure, the Company
shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Common Stock. In
connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best efforts
to solicit its stockholders’ approval of such increase in authorized shares of Common Stock and to cause its board of directors
to recommend to the stockholders that they approve such proposal. In the event that the Company is prohibited from issuing shares
of Common Stock upon an exercise of this Warrant due to the failure by the Company to have sufficient shares of Common Stock available
out of the authorized but unissued shares of Common Stock (such unavailable number of shares of Common Stock, the “Authorization
Failure Shares”), in lieu of delivering such Authorization Failure Shares to the Holder, the Company shall pay cash
in exchange for the cancellation of such portion of this Warrant exercisable into such Authorized Failure Shares at a price equal
to the sum of (i) the product of (x) such number of Authorization Failure Shares and (y) the Closing Sale Price on the Trading
Day immediately preceding the date the Holder delivers the applicable Exercise Notice with respect to such Authorization Failure
Shares to the Company and (ii) to the extent the Holder purchases (in an open market transaction or otherwise) shares of Common
Stock to deliver in satisfaction of a sale by the Holder of Authorization Failure Shares, any brokerage commissions and other
out-of-pocket expenses, if any, of the Holder incurred in connection therewith.

 

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2.                 
ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The Exercise Price and number of Warrant Shares
issuable upon exercise of this Warrant are subject to adjustment from time to time as set forth in this Section 2.

 

(a)        Stock
Dividends and Splits. Without limiting any provision of Section 2(b) or Section 4, if the Company, at any time on or after
the date of the Securities Purchase Agreement, (i) pays a stock dividend on one or more classes of its then outstanding shares
of Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii)
subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its then outstanding shares
of Common Stock into a larger number of shares or (iii) combines (by combination, reverse stock split or otherwise) one or more
classes of its then outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price
shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately
before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such
event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for
the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to clause (ii)
or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. If
any event requiring an adjustment under this paragraph occurs during the period that an Exercise Price is calculated hereunder,
then the calculation of such Exercise Price shall be adjusted appropriately to reflect such event.

 

(b)        Adjustment
Upon Issuance of Shares of Common Stock. If and whenever on or after the date of the Securities Purchase Agreement, the Company
issues or sells, or in accordance with this Section 2 is deemed to have issued or sold, any shares of Common Stock (including
the issuance or sale of shares of Common Stock owned or held by or for the account of the Company, but excluding any Excluded
Securities issued or sold or deemed to have been issued or sold) for a consideration per share (the “New Issuance Price”)
less than a price equal to the Exercise Price in effect immediately prior to such issue or sale or deemed issuance or sale (such
Exercise Price then in effect is referred to as the “Applicable Price”) (the foregoing a “Dilutive
Issuance”), then immediately after such Dilutive Issuance, the Exercise Price then in effect shall be reduced to an
amount equal to the New Issuance Price. For all purposes of the foregoing (including, without limitation, determining the adjusted
Exercise Price and consideration per share under this Section 2(b)), the following shall be applicable:

 

(i)                
Issuance of Options. If the Company in any manner grants or sells any Options and the lowest price per share for
which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion, exercise or exchange of any
Convertible Securities issuable upon exercise of any such Option is less than the Applicable Price, then such share of Common
Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of
such Option for such price per share. For purposes of this Section 2(b)(i), the “lowest price per share for which one share
of Common Stock is issuable upon the exercise of any such Options or upon conversion, exercise or exchange of any Convertible
Securities issuable upon exercise of any such Option” shall be equal to (1) the lower of (x) the sum of the lowest amounts
of consideration (if any) received or receivable by the Company with respect to any one share of Common Stock upon the granting
or sale of such Option, upon exercise of such Option and upon conversion, exercise or exchange of any Convertible Security issuable
upon exercise of such Option and (y) the lowest exercise price set forth in such Option for which one share of Common Stock is
issuable upon the exercise of any such Options or upon conversion, exercise or exchange of any Convertible Securities issuable
upon exercise of any such Option minus (2) the sum of all amounts paid or payable to the holder of such Option (or any other Person)
upon the granting or sale of such Option, upon exercise of such Option and upon conversion, exercise or exchange of any Convertible
Security issuable upon exercise of such Option plus the value of any other consideration received or receivable by, or benefit
conferred on, the holder of such Option (or any other Person). Except as contemplated below, no further adjustment of the Exercise
Price shall be made upon the actual issuance of such shares of Common Stock or of such Convertible Securities upon the exercise
of such Options or upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible
Securities.

 

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(ii)              
Issuance of Convertible Securities. If the Company in any manner issues or sells any Convertible Securities and
the lowest price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof is
less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and
sold by the Company at the time of the issuance or sale of such Convertible Securities for such price per share. For the purposes
of this Section 2(b)(ii), the “lowest price per share for which one share of Common Stock is issuable upon the conversion,
exercise or exchange thereof” shall be equal to (1) the lower of (x) the sum of the lowest amounts of consideration (if
any) received or receivable by the Company with respect to one share of Common Stock upon the issuance or sale of the Convertible
Security and upon conversion, exercise or exchange of such Convertible Security and (y) the lowest conversion price set forth
in such Convertible Security for which one share of Common Stock is issuable upon conversion, exercise or exchange thereof minus
(2) the sum of all amounts paid or payable to the holder of such Convertible Security (or any other Person) upon the issuance
or sale of such Convertible Security plus the value of any other consideration received or receivable by, or benefit conferred
on, the holder of such Convertible Security (or any other Person). Except as contemplated below, no further adjustment of the
Exercise Price shall be made upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of
such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any Options
for which adjustment of this Warrant has been or is to be made pursuant to other provisions of this Section 2(b), except as contemplated
below, no further adjustment of the Exercise Price shall be made by reason of such issue or sale.

 

(iii)            
Change in Option Price or Rate of Conversion. If the purchase or exercise price provided for in any Options, the
additional consideration, if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the
rate at which any Convertible Securities are convertible into or exercisable or exchangeable for shares of Common Stock increases
or decreases at any time, the Exercise Price in effect at the time of such increase or decrease shall be adjusted to the Exercise
Price which would have been in effect at such time had such Options or Convertible Securities provided for such increased or decreased
purchase price, additional consideration or increased or decreased conversion rate, as the case may be, at the time initially
granted, issued or sold. For purposes of this Section 2(b)(iii), if the terms of any Option or Convertible Security that was outstanding
as of the date of issuance of this Warrant are increased or decreased in the manner described in the immediately preceding sentence,
then such Option or Convertible Security and the shares of Common Stock deemed issuable upon exercise, conversion or exchange
thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to this Section
2(b) shall be made if such adjustment would result in an increase of the Exercise Price then in effect.

 

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(iv)            
Calculation of Consideration Received. If any Option or Convertible Security or Adjustment Right is issued in connection
with the issuance or sale or deemed issuance or sale of any other securities of the Company, together comprising one integrated
transaction, (x) such Option or Convertible Security (as applicable) or Adjustment Right (as applicable) will be deemed to have
been issued for consideration equal to the Black Scholes Consideration Value thereof and (y) the other securities issued or sold
or deemed to have been issued or sold in such integrated transaction shall be deemed to have been issued for consideration equal
to the difference of (I) the aggregate consideration received or receivable by the Company minus (II) the Black Scholes Consideration
Value of each such Option or Convertible Security (as applicable) or Adjustment Right (as applicable). If any shares of Common
Stock, Options or Convertible Securities are issued or sold or deemed to have been issued or sold for cash, the consideration received
therefor will be deemed to be the net amount of consideration received by the Company therefor. If any shares of Common Stock,
Options or Convertible Securities are issued or sold for a consideration other than cash, the amount of such consideration received
by the Company will be the fair value of such consideration, except where such consideration consists of publicly traded securities,
in which case the amount of consideration received by the Company for such securities will be the arithmetic average of the VWAPs
of such security for each of the five (5) Trading Days immediately preceding the date of receipt. If any shares of Common Stock,
Options or Convertible Securities are issued to the owners of the non-surviving entity in connection with any merger in which the
Company is the surviving entity, the amount of consideration therefor will be deemed to be the fair value of such portion of the
net assets and business of the non-surviving entity as is attributable to such shares of Common Stock, Options or Convertible Securities,
as the case may be. The fair value of any consideration other than cash or publicly traded securities will be determined jointly
by the Company and the Holder. If such parties are unable to reach agreement within ten (10) days after the occurrence of an event
requiring valuation (the “Valuation Event”), the fair value of such consideration will be determined within
five (5) Trading Days after the tenth (10th) day following such Valuation Event by an independent, reputable appraiser
jointly selected by the Company and the Holder. The determination of such appraiser shall be final and binding upon all parties
absent manifest error and the fees and expenses of such appraiser shall be borne by the Company.

 

(v)              
Record Date. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling
them (A) to receive a dividend or other distribution payable in shares of Common Stock, Options or in Convertible Securities
or (B) to subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then such record date will
be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration
of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase
(as the case may be).

 

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(c)        Number
of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to paragraph (a) of this Section 2, the
number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately,
so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be
the same as the aggregate Exercise Price in effect immediately prior to such adjustment (without regard to any limitations on
exercise contained herein).

 

(d)        Holder’s
Right of Alternative Exercise Price Following Issuance of Certain Options or Convertible Securities. In addition to and not in
limitation of the other provisions of this Section 2, if the Company in any manner issues or sells any Options or Convertible
Securities (any such securities, “Variable Price Securities”) after the Subscription Date that are convertible
into or exchangeable or exercisable for shares of Common Stock at a price which varies or may vary with the market price of the
Common Shares, including by way of one or more reset(s) to a fixed price, but exclusive of such formulations reflecting customary
anti-dilution provisions (such as share splits, share combinations, share dividends and similar transactions) (each of the formulations
for such variable price being herein referred to as, the “Variable Price”), the Company shall provide written
notice thereof via facsimile and overnight courier to the Holder on the date of issuance of such Convertible Securities or Options.
From and after the date the Company issues any such Convertible Securities or Options with a Variable Price, the Holder shall
have the right, but not the obligation, in its sole discretion to substitute the Variable Price for the Exercise Price upon exercise
of this Warrant by designating in the Exercise Notice delivered upon any exercise of this Warrant that solely for purposes of
such exercise the Holder is relying on the Variable Price rather than the Exercise Price then in effect. The Holder’s election
to rely on a Variable Price for a particular exercise of this Warrant shall not obligate the Holder to rely on a Variable Price
for any future exercises of this Warrant.

 

(e)               
Stock Combination Event Adjustment. If at any time and from time to time on or after the Issuance Date there
occurs any stock split, stock dividend, stock combination recapitalization or other similar transaction involving the Common Stock
(each, a “Stock Combination Event”) and the product of (i) the quotient determined by dividing (x) the Exercise
Price in effect immediately prior to the Stock Combination Event by (y) the quotient determined by dividing (A) the sum of the
VWAP of the Common Stock on each day of the fifteen (15) Trading Day period immediately prior to the Stock Combination Event, divided
by (B) fifteen (15); and (ii) the quotient determined by dividing (x) the sum of the VWAP of the Common Stock on each day of the
fifteen (15) Trading Day period immediately following the date of such Stock Combination Event, divided by (y) fifteen (15) (each,
an “Event Market Price”) is less than the Exercise Price then in effect (after giving effect to the adjustment
in clause (b) above), then on the sixteenth (16th) Trading Day immediately following such Stock Combination Event, the Exercise
Price then in effect on such sixteenth (16th) Trading Day (after giving effect to the adjustment in clause (b) above) shall be
reduced (but in no event increased) to the Event Market Price. For the avoidance of doubt, if the adjustment in the immediately
preceding sentence would otherwise result in an increase in the Exercise Price hereunder, no adjustment shall be made.

 

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(f)        Other
Events. In the event that the Company (or any Subsidiary (as defined in the Securities Purchase Agreement)) shall take any
action to which the provisions hereof are not strictly applicable, or, if applicable, would not operate to protect the Holder
from dilution or if any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for
by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights
with equity features), then the Company’s board of directors shall in good faith determine and implement an appropriate
adjustment in the Exercise Price and the number of Warrant Shares (if applicable) so as to protect the rights of the Holder, provided
that no such adjustment pursuant to this Section 2(e) will increase the Exercise Price or decrease the number of Warrant Shares
as otherwise determined pursuant to this Section 2, provided further that if the Holder does not accept such adjustments as appropriately
protecting its interests hereunder against such dilution, then the Company’s board of directors and the Holder shall agree,
in good faith, upon an independent investment bank of nationally recognized standing to make such appropriate adjustments, whose
determination shall be final and binding and whose fees and expenses shall be borne by the Company.

 

(g)        Calculations.
All calculations under this Section 2 shall be made by rounding to the nearest cent or the nearest 1/100th of a
share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or
held by or for the account of the Company, and the disposition of any such shares shall be considered an issue or sale of
Common Stock.

 

3.                  RIGHTS
UPON DISTRIBUTION OF ASSETS. In addition to any adjustments pursuant to Section 2 above, if the Company shall declare or
make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock,
by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities,
property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other
similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each
such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would
have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of
this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Maximum Percentage)
immediately before the date on which a record is taken for such Distribution, or, if no such record is taken, the date as of
which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided,
however, to the extent that the Holder’s right to participate in any such Distributions would result in the Holder
exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in such Distribution to such extent
(or the beneficial ownership of any such shares of Common Stock as a result of such Distribution to such extent) and such
Distribution to such extent shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right
thereto would not result in the Holder exceeding the Maximum Percentage).

 

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		4.	PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

 

(a)        Purchase
Rights. In addition to any adjustments pursuant to Section 2 above, if at any time the Company grants, issues or sells
any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property pro rata to the
record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be
entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could
have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant
(without regard to any limitations on exercise hereof, including without limitation, the Maximum Percentage) immediately
before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is
taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of
such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase
Right would result in the Holder exceeding the Maximum Percentage, then the Holder shall not be entitled to participate in
such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right
to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as
its right thereto would not result in the Holder exceeding the Maximum Percentage).

 

(b)        Fundamental
Transactions. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity
assumes in writing all of the obligations of the Company under this Warrant and the other Transaction Documents (as defined
in the Securities Purchase Agreement) in accordance with the provisions of this Section 4(b) pursuant to written agreements
in form and substance satisfactory to the Holder and approved by the Holder prior to such Fundamental Transaction, including
agreements to deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written
instrument substantially similar in form and substance to this Warrant, including, without limitation, which is exercisable
for a corresponding number of shares of capital stock equivalent to the shares of Common Stock acquirable and receivable upon
exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental
Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but
taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value
of such shares of capital stock, such adjustments to the number of shares of capital stock and such exercise price being for
the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental
Transaction). Upon the consummation of each Fundamental Transaction, the Successor Entity shall succeed to, and be
substituted for (so that from and after the date of the applicable Fundamental Transaction, the provisions of this Warrant
and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and
may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant
and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.
Upon consummation of each Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there
shall be issued upon exercise of this Warrant at any time after the consummation of the applicable Fundamental
Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property (except such items
still issuable under Sections 3 and 4(a) above, which shall continue to be receivable thereafter)) issuable upon the exercise
of this Warrant prior to the applicable Fundamental Transaction, such shares of common stock (or its equivalent) of the
Successor Entity (including its Parent Entity) which the Holder would have been entitled to receive upon the happening of the
applicable Fundamental Transaction had this Warrant been exercised immediately prior to the applicable Fundamental
Transaction (without regard to any limitations on the exercise of this Warrant), as adjusted in accordance with the
provisions of this Warrant. Notwithstanding the foregoing, and without limiting Section 1(f) hereof, the Holder may elect, at
its sole option, by delivery of written notice to the Company to waive this Section 4(b) to permit the Fundamental
Transaction without the assumption of this Warrant. In addition to and not in substitution for any other rights hereunder,
prior to the consummation of each Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to
receive securities or other assets with respect to or in exchange for shares of Common Stock (a “Corporate
Event”), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to
receive upon an exercise of this Warrant at any time after the consummation of the applicable Fundamental Transaction but
prior to the Expiration Date, in lieu of the shares of the Common Stock (or other securities, cash, assets or other
property (except such items still issuable under Sections 3 and 4(a) above, which shall continue to be receivable
thereafter)) issuable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock,
securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which
the Holder would have been entitled to receive upon the happening of the applicable Fundamental Transaction had this Warrant
been exercised immediately prior to the applicable Fundamental Transaction (without regard to any limitations on the exercise
of this Warrant). Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory
to the Holder.

 

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(c)        Black
Scholes Value. Notwithstanding the foregoing and the provisions of Section 4(b) above, at the request of the Holder
delivered at any time commencing on the earliest to occur of (x) the public disclosure of any Fundamental Transaction, (y)
the consummation of any Fundamental Transaction and (z) the Holder first becoming aware of any Fundamental Transaction
through the date that is ninety (90) days after the public disclosure of the consummation of such Fundamental Transaction by
the Company pursuant to a Current Report on Form 8-K filed with the SEC, the Company or the Successor Entity (as the case may
be) shall purchase this Warrant from the Holder on the date of such request by paying to the
Holder cash in an amount equal to the Black Scholes Value.

 

(d)        Application.
The provisions of this Section 4 shall apply similarly and equally to successive Fundamental Transactions and Corporate
Events and shall be applied as if this Warrant (and any such subsequent warrants) were fully exercisable and without regard
to any limitations on the exercise of this Warrant (provided that the Holder shall continue to be entitled to the benefit of
the Maximum Percentage, applied however with respect to shares of capital stock registered under the 1934 Act and thereafter
receivable upon exercise of this Warrant (or any such other warrant)).

 

5.                 
NONCIRCUMVENTION. The Company hereby covenants and agrees that the Company will not, by amendment of its Articles
of Incorporation (as defined in the Securities Purchase Agreement), Bylaws (as defined in the Securities Purchase Agreement) or
through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities,
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will
at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights
of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares
of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all
such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable
shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as any of the SPA Warrants are outstanding,
take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the
purpose of effecting the exercise of the SPA Warrants, the maximum number of shares of Common Stock as shall from time to time
be necessary to effect the exercise of the SPA Warrants then outstanding (without regard to any limitations on exercise).

 

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6.                 
WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely
in its capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share
capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely
in its capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or
withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation,
merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to
the issuance to the Holder of the Warrant Shares which it is then entitled to receive upon the due exercise of this Warrant. In
addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities
(upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the
Company or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the
same notices and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof
to the stockholders.

 

7.                 
REISSUANCE OF WARRANTS.

 

(a)        Transfer
of Warrant. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company
will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the
Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less
than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section
7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

(b)        Lost,
Stolen or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant (as to which a written certification and the indemnification contemplated below shall
suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to
the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Warrant,
the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to
purchase the Warrant Shares then underlying this Warrant.

 

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(c)        Exchangeable
for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the
Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the
number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion
of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, no warrants for fractional
shares of Common Stock shall be given.

 

(d)        Issuance
of New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to
purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a)
or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying
the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this
Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date,
(iv) shall have an exchange date, as indicated on the face of such new Warrant which is the same as the Exchange Date and (v)
shall have the same rights and conditions as this Warrant.

 

8.                 
NOTICES. Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such
notice shall be given in accordance with Section 9(f) of the Securities Purchase Agreement. The Company shall provide the Holder
with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable detail a description of such
action and the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder
(i) immediately upon each adjustment of the Exercise Price and the number of Warrant Shares, setting forth in reasonable detail,
and certifying, the calculation of such adjustment(s) and (ii) at least fifteen (15) days prior to the date on which the Company
closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of Common Stock, (B) with respect
to any grants, issuances or sales of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other
property to holders of shares of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction,
dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction
with such notice being provided to the Holder and (iii) at least ten (10) Trading Days prior to the consummation of any Fundamental
Transaction. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding
the Company or any of its Subsidiaries, the Company shall simultaneously file such notice with the SEC (as defined in the Securities
Purchase Agreement) pursuant to a Current Report on Form 8-K. It is expressly understood and agreed that the time of execution
specified by the Holder in each Exercise Notice shall be definitive and may not be disputed or challenged by the Company.

 

9.                 
AMENDMENT AND WAIVER. Except as otherwise provided herein, the provisions of this Warrant (other than Section
1(f)) may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed
by it, only if the Company has obtained the written consent of the Holder. The Holder shall be entitled, at its option, to the
benefit of any amendment of (i) any other similar warrant issued under the Securities Purchase Agreement or (ii) any other similar
warrant. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party.

 

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10.             
SEVERABILITY. If any provision of this Warrant is prohibited by law or otherwise determined to be invalid
or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable
shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability
of such provision shall not affect the validity of the remaining provisions of this Warrant so long as this Warrant as so modified
continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited
nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations
or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the
parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s)
with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

11.             
GOVERNING LAW. This Warrant shall be governed by and construed and enforced in accordance with, and all questions
concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of
the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of
New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of
New York. The Company hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City
of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed or operate
to preclude the Holder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect
on the Company’s obligations to the Holder or to enforce a judgment or other court ruling in favor of the Holder. The Company
hereby appoints CT Corporation System, with offices at 111 Eighth Avenue, New York, New York 10011, as its agent for service of
process in New York. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL
FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS WARRANT OR ANY TRANSACTION CONTEMPLATED
HEREBY.

 

12.             
CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be jointly drafted by the Company and the Holder and
shall not be construed against any Person as the drafter hereof. The headings of this Warrant are for convenience of reference
and shall not form part of, or affect the interpretation of, this Warrant. Terms used in this Warrant but defined in the other
Transaction Documents shall have the meanings ascribed to such terms on the Initial Closing Date (as defined in the Securities
Purchase Agreement) in such other Transaction Documents unless otherwise consented to in writing by the Holder.

 

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13.             
DISPUTE RESOLUTION. In the case of a dispute as to the determination of the Exercise Price, the Closing Sale
Price, the Bid Price or fair market value or the arithmetic calculation of the Warrant Shares (as the case may be), the Company
or the Holder (as the case may be) shall submit the disputed determinations or arithmetic calculations (as the case may be) via
facsimile (i) within two (2) Business Days after receipt of the applicable notice giving rise to such dispute to the Company or
the Holder (as the case may be) or (ii) if no notice gave rise to such dispute, at any time after the Holder learned of the circumstances
giving rise to such dispute (including, without limitation, as to whether any issuance or sale or deemed issuance or sale was an
issuance or sale or deemed issuance or sale of Excluded Securities). If the Holder and the Company are unable to agree upon such
determination or calculation (as the case may be) of the Exercise Price, the Closing Sale Price, the Bid Price or fair market value
or the number of Warrant Shares (as the case may be) within three (3) Business Days of such disputed determination or arithmetic
calculation being submitted to the Company or the Holder (as the case may be), then the Company shall, within two (2) Business
Days submit via facsimile (a) the disputed determination of the Exercise Price, the Closing Sale Price, the Bid Price or fair market
value (as the case may be) to an independent, reputable investment bank selected by the Holder or (b) the disputed arithmetic calculation
of the Warrant Shares to the Company’s independent, outside accountant. The Company shall cause at its expense the investment
bank or the accountant (as the case may be) to perform the determinations or calculations (as the case may be) and notify the Company
and the Holder of the results no later than ten (10) Business Days from the time it receives such disputed determinations or calculations
(as the case may be). Such investment bank’s or accountant’s determination or calculation (as the case may be) shall
be binding upon all parties absent demonstrable error.

 

14.              REMEDIES,
CHARACTERIZATION, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided in this Warrant shall be
cumulative and in addition to all other remedies available under this Warrant and the other Transaction Documents, at law or
in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the
right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant.
The Company covenants to the Holder that there shall be no characterization concerning this instrument other than as
expressly provided herein. Amounts set forth or provided for herein with respect to payments, exercises and the like (and the
computation thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be
subject to any other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of
its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be
inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the holder of this
Warrant shall be entitled, in addition to all other available remedies, to an injunction restraining any breach, without the
necessity of showing economic loss and without any bond or other security being required. The Company shall provide all
information and documentation to the Holder that is requested by the Holder to enable the Holder to confirm the
Company’s compliance with the terms and conditions of this Warrant (including, without limitation, compliance with
Section 2 hereof). The issuance of shares and certificates for shares as contemplated hereby upon the exercise of this
Warrant shall be made without charge to the Holder or such shares for any issuance tax or other costs in respect thereof,
provided that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in
the issuance and delivery of any certificate in a name other than the Holder or its agent on its behalf.

 

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15.             
TRANSFER. This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company,
except as may otherwise be required by Section 2(g) of the Securities Purchase Agreement.

 

16.              MANDATORY
EXERCISE. If at any time after the later of (x) 120 calendar days after the Issuance Date and (y) such date after which
the Company has initially satisfied all of the Equity Conditions (the “Mandatory Exercise
Eligibility Date”), (i) the Common Stock trades at a price equal to or greater than $4.08 per share (as adjusted
for stock splits, stock combinations and the like occurring from and after the Issuance Date) (the “Trigger
Price”) for a period of twenty (20) consecutive Trading Days following the Mandatory Exercise Eligibility Date (the
twenty (20) consecutive Trading Days on which the condition in this clause (i) is satisfied are referred to herein as the
“Mandatory Exercise Measuring Period”), (ii) the average daily volume (as reported on Bloomberg) of the
Common Stock on the applicable Eligible Market for each Trading Day during the Mandatory Exercise Measuring Period exceeds
650,000 shares of Common Stock per day and (iii) no Equity Conditions Failure shall have occurred, then the Company
shall have the right to require the Holder to exercise all, but not less than all, of this Warrant for all of the
then-remaining Warrant Shares in accordance with Section 1 hereof (a “Mandatory Exercise”). The Company
may exercise its right to require exercise under this Section 16 on one occasion by delivering (provided that all of the conditions
set forth in clauses (i) through (iii) above are then satisfied), on the first (1st) Trading Day
immediately following the end of the Mandatory Exercise Measuring Period, a written notice thereof by facsimile and overnight
courier to the Holder (the “Mandatory Exercise Notice” and the date the Holder receives such notice by
facsimile is referred to as the “Mandatory Exercise Notice Date”). The Mandatory Exercise Notice shall be
irrevocable. The Mandatory Exercise Notice shall (1) state the Trading Day selected for the Mandatory Exercise in accordance
with this Section 15, which Trading Day shall be at least ten (10) Trading Days but not more than fifteen (15) Trading Days
following the Mandatory Exercise Notice Date (the “Mandatory Exercise Date”), (2) state the number of
shares of Common Stock to be issued to the Holder on the Mandatory Exercise Date, (3) contain a certification from the Chief
Executive Officer of the Company that there has been no Equity Conditions Failure and (4) contain a certification from the
Chief Executive Officer of the Company that the Company has simultaneously taken the same action with respect to all of the
SPA Warrants. Any portion of this Warrant exercised by the Holder after the Mandatory Exercise Notice Date shall reduce the
number of Warrant Shares for which this Warrant is required to be exercised on the Mandatory Exercise Date. If the Company
has elected a Mandatory Exercise, the mechanics of exercise set forth in Section 1 shall apply, to the extent applicable, as
if the Company had received from the Holder on the Mandatory Exercise Date an Exercise Notice with respect to all of the
then-remaining Warrant Shares. Notwithstanding anything contained in this Section 15 to the contrary, if (I) any shares of
Common Stock trade for a price less than the Trigger Price on any day during the period commencing on the Mandatory
Exercise Notice Date and ending on the Trading Day immediately preceding the Mandatory Exercise Date; (II) the average daily
volume (as reported on Bloomberg) of the Common Stock on the applicable Eligible Market on any Trading Day during the period
commencing on the Mandatory Exercise Notice Date and ending on the Trading Day immediately preceding the Mandatory Exercise
Date is less than 400,000 shares of Common Stock; or (III) an Equity Conditions Failure occurs on any day during the period
commencing on the Mandatory Exercise Notice Date and ending on the Mandatory Exercise Date which has not been waived in
writing by the Holder, then, in either case, the Mandatory Exercise Notice delivered to the Holder shall be null and void ab
initio and the Mandatory Exercise shall not occur. If the Company elects to cause a Mandatory Exercise of this Warrant
pursuant to this Section 16, then it must simultaneously take the same action with respect to all of the other SPA
Warrants.

 

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17.             
CERTAIN DEFINITIONS. For purposes of this Warrant, the following terms shall have the following meanings:

 

(a)               
“Adjustment Right” means any right granted with respect to any securities issued in connection with,
or with respect to, any issuance or sale (or deemed issuance or sale in accordance with Section 2) of shares of Common Stock (other
than rights of the type described in Section 3 and 4 hereof) that could result in a decrease in the net consideration received
by the Company in connection with, or with respect to, such securities (including, without limitation, any cash settlement rights,
cash adjustment or other similar rights).

 

(b)              
“Approved Stock Plan” means any employee benefit plan which has been approved by the board of directors
of the Company prior to or subsequent to the date hereof pursuant to which shares of Common Stock and standard options to purchase
Common Stock may be issued to any employee, officer, consultant or director for services provided to the Company in their capacity
as such.

 

(c)               
“Bid Price” means, for any security as of the particular time of determination, the bid price for such
security on the Principal Market as reported by Bloomberg as of such time of determination, or, if the Principal Market is not
the principal securities exchange or trading market for such security, the bid price of such security on the principal securities
exchange or trading market where such security is listed or traded as reported by Bloomberg as of such time of determination,
or if the foregoing does not apply, the bid price of such security in the over-the-counter market on the electronic bulletin board
for such security as reported by Bloomberg as of such time of determination, or, if no bid price is reported for such security
by Bloomberg as of such time of determination, the average of the bid prices of any market makers for such security as reported
in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC) as of such time of determination. If the
Bid Price cannot be calculated for a security as of the particular time of determination on any of the foregoing bases, the Bid
Price of such security as of such time of determination shall be the fair market value as mutually determined by the Company and
the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall
be resolved in accordance with the procedures in Section 13. All such determinations shall be appropriately adjusted for
any stock dividend, stock split, stock combination or other similar transaction during such period.

 

(d)              
“Black Scholes Consideration Value” means the value of the applicable Option or Convertible Security
(as the case may be) as of the date of issuance thereof calculated using the Black Scholes Option Pricing Model obtained from the
“OV” function on Bloomberg utilizing (i) an underlying price per share equal to the Closing Sale Price of the Common
Stock on the Trading Day immediately preceding the public announcement of the execution of definitive documents with respect to
the issuance of such Option or Convertible Security (as the case may be), (ii) a risk-free interest rate corresponding to the U.S.
Treasury rate for a period equal to the remaining term of such Option or Convertible Security (as the case may be) as of the date
of issuance of such Option or Convertible Security (as the case may be), (iii) a zero cost of borrow and (iv) an expected volatility
equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg (determined utilizing a 365
day annualization factor) as of the Trading Day immediately following the date of issuance of such Option or Convertible Security
(as the case may be).

 

    	19

    	 

    
 

(e)               
“Black Scholes Value” means the value of the unexercised portion of this Warrant remaining on the date
of the Holder’s request pursuant to Section 4(c), which value is calculated using the Black Scholes Option Pricing Model
obtained from the “OV” function on Bloomberg utilizing (i) an underlying price per share equal to the greater of (1)
the highest Closing Sale Price of the Common Stock during the period beginning on the Trading Day immediately preceding the earliest
to occur of (x) the public disclosure of the applicable Fundamental Transaction, (y) the consummation of the applicable Fundamental
Transaction and (z) the date on which the Holder first became aware of the applicable Fundamental Transaction and ending on the
Trading Day of the Holder’s request pursuant to Section 4(c) and (2) the sum of the price per share being offered in cash
in the applicable Fundamental Transaction (if any) plus the value of the non-cash consideration being offered in the applicable
Fundamental Transaction (if any), (ii) a strike price equal to the Exercise Price in effect on the date of the Holder’s
request pursuant to Section 4(c), (iii) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to
the greater of (1) the remaining term of this Warrant as of the date of the Holder’s request pursuant to Section 4(c) and
(2) the remaining term of this Warrant as of the date of consummation of the applicable Fundamental Transaction or as of the date
of the Holder’s request pursuant to Section 4(c) if such request is prior to the date of the consummation of the applicable
Fundamental Transaction, (iv) a zero cost of borrow and (v) an expected volatility equal to the greater of 100% and the 100 day
volatility obtained from the HVT function on Bloomberg (determined utilizing a 365 day annualization factor) as of the Trading
Day immediately following the earliest to occur of (x) the public disclosure of the applicable Fundamental Transaction, (y) the
consummation of the applicable Fundamental Transaction and (z) the date on which the Holder first became aware of the applicable
Fundamental Transaction.

 

(f)               
“Bloomberg” means Bloomberg, L.P.

 

(g)              
“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The
City of New York are authorized or required by law to remain closed.

 

(h)              
“Closing Sale Price” means, for any security as of any date, the last closing trade price for such security
on the Principal Market, as reported by Bloomberg, or, if the Principal Market begins to operate on an extended hours basis and
does not designate the closing trade price, then the last trade price of such security prior to 4:00:00 p.m., New York time, as
reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such security,
the last trade price of such security on the principal securities exchange or trading market where such security is listed or
traded as reported by Bloomberg, or if the foregoing does not apply, the last trade price of such security in the over-the-counter
market on the electronic bulletin board for such security as reported by Bloomberg, or, if no last trade price is reported for
such security by Bloomberg, the average of the ask prices of any market makers for such security as reported in the “pink
sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If the Closing Sale Price cannot be calculated for a security
on a particular date on any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair market
value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market
value of such security, then such dispute shall be resolved in accordance with the procedures in Section 13. All such determinations
shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction during such
period.

 

    	20

    	 

    
 

(i)                
“Common Stock” means (i) the Company’s shares of common stock, $0.001 par value per share,
and (ii) any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification
of such common stock.

 

(j)                
“Convertible Securities” means any stock or other security (other than Options) that is at any time and
under any circumstances, directly or indirectly, convertible into, exercisable or exchangeable for, or which otherwise entitles
the holder thereof to acquire, any shares of Common Stock.

 

(k)              
“Eligible Market” means The New York Stock Exchange, the Nasdaq Global Select Market, the Nasdaq Global
Market, the Nasdaq Capital Market or the Principal Market.

 

(l)                
“Equity Conditions” shall have the meaning as set forth in the Certificate of Designations (as defined
in the Securities Purchase Agreement).

 

(m)            
“Equity Conditions Failure” means that on any day during the period commencing ten (10) Trading Days
prior to the Mandatory Exercise Notice Date through the Mandatory Exercise Date, the Equity Conditions have not been satisfied
(or waived in writing by the Holder).

 

(n)              
“Excluded Securities” means any (i) shares of Common Stock or standard options to purchase Common Stock
to directors, officers or employees of the Company in their capacity as such pursuant to an Approved Stock Plan (as defined below),
provided that (A) all such issuances (taking into account the shares of Common Stock issuable upon exercise of such options) after
the date hereof pursuant to this clause (i) do not, in the aggregate, exceed more than 5% of the Common Stock issued and outstanding
immediately prior to the date hereof and (B) the exercise price of any such options is not lowered, none of such options are amended
to increase the number of shares issuable thereunder and none of the terms or conditions of any such options are otherwise materially
changed in any manner that adversely affects any of the Buyers; (ii) shares of Common Stock issued upon the conversion or exercise
of Convertible Securities (other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan that
are covered by clause (i) above) issued prior to the date hereof, provided that the conversion price of any such Convertible Securities
(other than standard options to purchase Common Stock issued pursuant to an Approved Stock Plan that are covered by clause (i)
above) is not lowered, none of such Convertible Securities (other than standard options to purchase Common Stock issued pursuant
to an Approved Stock Plan that are covered by clause (i) above) are amended to increase the number of shares issuable thereunder
and none of the terms or conditions of any such Convertible Securities (other than standard options to purchase Common Stock issued
pursuant to an Approved Stock Plan that are covered by clause (i) above) are otherwise materially changed in any manner that adversely
affects any of the Buyers; (iii) the shares of Common Stock issuable upon conversion of all of the Preferred Shares (as defined
in the Securities Purchase Agreement) or otherwise pursuant to the Certificate of Designations (as defined in the Securities Purchase
Agreement); (iv) the shares of Common Stock issuable upon exercise of the Warrants; (v) shares of Common Stock or Convertible Securities
issued or issuable pursuant to a bona fide retail firm commitment underwritten public offering with a nationally recognized underwriter
which generates gross proceeds to the Company in excess of $30,000,000 (other than an “at-the-market offering” as defined
in Rule 415(a)(4) under the 1933 Act, “equity lines”, “confidential market public offerings”, “unregistered
direct offerings”, “wall-crossed offerings”, “pre-marketed offerings” and such other public offerings
that are announced after confidential marketing to investors) and (vi) shares of Common Stock or Convertible Securities issued
or issuable in connection with strategic alliances, acquisitions, mergers, and strategic partnerships, provided, that (1) the primary
purpose of such issuance is not to raise capital as determined in good faith by the Required Holders (as defined in the Securities
Purchase Agreement), (2) the purchaser or acquirer of the securities in such issuance solely consists of either (x) the actual
participants in such strategic alliance or strategic partnership, (y) the actual owners of such assets or securities acquired in
such acquisition or merger or (z) the stockholders, partners or members of the foregoing Persons and (3) the number or amount of
securities issued to such Person by the Company shall not be disproportionate to such Person’s actual participation in such
strategic alliance or strategic partnership or ownership of such assets or securities to be acquired by the Company, as applicable.

 

    	21

    	 

    
 

(o)              
“Expiration Date” means the date that is the forty-two (42) month anniversary of the Issuance Date or,
if such date falls on a day other than a Business Day or on which trading does not take place on the Principal Market (a “Holiday”),
the next date that is not a Holiday.

 

(p)              
“Fundamental Transaction” means that (i) the Company or any of its Subsidiaries shall, directly or indirectly,
in one or more related transactions, (1) consolidate or merge with or into (whether or not the Company or any of its Subsidiaries
is the surviving corporation) any other Person, or (2) sell, lease, license, assign, transfer, convey or otherwise dispose of all
or substantially all of its respective properties or assets to any other Person, or (3) allow any other Person to make a purchase,
tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of Voting Stock of the Company
(not including any shares of Voting Stock of the Company held by the Person or Persons making or party to, or associated or affiliated
with the Persons making or party to, such purchase, tender or exchange offer), or (4) consummate a stock or share purchase agreement
or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement)
with any other Person whereby such other Person acquires more than 50% of the outstanding shares of Voting Stock of the Company
(not including any shares of Voting Stock of the Company held by the other Person or other Persons making or party to, or associated
or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination),
or (5) (I) reorganize, recapitalize or reclassify the Common Stock, (II) effect or consummate a stock combination, reverse stock
split or other similar transaction involving the Common Stock or (III) make any public announcement or disclosure with respect
to any stock combination, reverse stock split or other similar transaction involving the Common Stock (including, without limitation,
any public announcement or disclosure of (x) any potential, possible or actual stock combination, reverse stock split or other
similar transaction involving the Common Stock or (y) board or stockholder approval thereof, or the intention of the Company to
seek board or stockholder approval of any stock combination, reverse stock split or other similar transaction involving the Common
Stock), or (ii) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d)
of the 1934 Act and the rules and regulations promulgated thereunder) is or shall become the “beneficial owner” (as
defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by
issued and outstanding Voting Stock of the Company.

 

    	22

    	 

    
 

(q)              
“Options” means any rights, warrants or options to subscribe for or purchase shares of Common Stock or
Convertible Securities.

 

(r)                
“Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person
and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such
Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation
of the Fundamental Transaction.

 

(s)               
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation,
a trust, an unincorporated organization, any other entity or a government or any department or agency thereof.

 

(t)                
“Principal Market” means the NYSE Amex.

 

(u)              
“Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity) formed by, resulting
from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such
Fundamental Transaction shall have been entered into.

 

(v)              
“Trading Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal
Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market
on which the Common Stock is then traded, provided that “Trading Day” shall not include any day on which the Common
Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from
trading during the final hour of trading on such exchange or market (or if such exchange or market does not designate in advance
the closing time of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time) unless such
day is otherwise designated as a Trading Day in writing by the Holder.

 

(w)            
“Voting Stock” of a Person means capital stock of such Person of the class or classes pursuant to which
the holders thereof have the general voting power to elect, or the general power to appoint, at least a majority of the board of
directors, managers or trustees of such Person (irrespective of whether or not at the time capital stock of any other class or
classes shall have or might have voting power by reason of the happening of any contingency).

 

    	23

    	 

    
 

(x)              
“VWAP” means, for any security as of any date, the dollar volume-weighted average price for such security
on the Principal Market (or, if the Principal Market is not the principal trading market for such security, then on the principal
securities exchange or securities market on which such security is then traded) during the period beginning at 9:30:01 a.m., New
York time, and ending at 4:00:00 p.m., New York time, as reported by Bloomberg through its “Volume at Price” function
or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market
on the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00
p.m., New York time, as reported by Bloomberg, or, if no dollar volume-weighted average price is reported for such security by
Bloomberg for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers
for such security as reported in the “pink sheets” by OTC Markets Group Inc. (formerly Pink Sheets LLC). If VWAP cannot
be calculated for such security on such date on any of the foregoing bases, the VWAP of such security on such date shall be the
fair market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon
the fair market value of such security, then such dispute shall be resolved in accordance with the procedures in Section 13. All
such determinations shall be appropriately adjusted for any stock dividend, stock split, stock combination or other similar transaction
during such period.

 

[signature page follows]

 

    	24

    	 

    
 

IN WITNESS WHEREOF,
the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the Exchange Date set out above.

 

 

	 	China Shen Zhou Mining &
	 	Resources, Inc. 
	 	 
	 	 
	 	 
	 	By: 	
	 	 	Name:

Title:

 

    	 

    	 

    
 

EXHIBIT
A

 

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER
TO EXERCISE THIS

WARRANT TO PURCHASE COMMON STOCK

 

China
Shen Zhou Mining & Resources, Inc.

 

The undersigned holder
hereby exercises the right to purchase _________________ of the shares of Common Stock (“Warrant Shares”) of
China Shen Zhou Mining & Resources, Inc., a Nevada corporation (the “Company”), evidenced by Warrant to
Purchase Common Stock No. _______ (the “Warrant”). Capitalized terms used herein and not otherwise defined shall
have the respective meanings set forth in the Warrant.

 

1.Form of Exercise
Price. The Holder intends that payment of the Exercise Price shall be made as:

 

		____________	a “Cash Exercise” with respect to _________________ Warrant Shares; and/or

 

		____________	a “Cashless Exercise” with respect to _______________ Warrant Shares.

 

In the event that the
Holder has elected a Cashless Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the Holder
hereby represents and warrants that (i) this Exercise Notice was executed by the Holder at __________ [a.m.][p.m.] on the date
set forth below and (ii) if applicable, the Bid Price as of such time of execution of this Exercise Notice was $________.

 

2.Payment of
Exercise Price. In the event that the Holder has elected a Cash Exercise with respect to some or all of the Warrant Shares
to be issued pursuant hereto, the Holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company
in accordance with the terms of the Warrant.

 

3.Delivery of
Warrant Shares. The Company shall deliver to Holder, or its designee or agent as specified below, __________ Warrant Shares
in accordance with the terms of the Warrant. Delivery shall be made to Holder, or for its benefit, to the following address:

 

_______________________

_______________________

_______________________

_______________________

 

Date: _______________ __, ______

 

	 	 
	Name of Registered Holder	

 

 

	By:	 	 
	 	Name:	 
	 	Title:	 

 

    	 

    	 

    
 

EXHIBIT B

 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Exercise Notice and hereby directs ______________ to issue the above indicated number of shares of Common Stock
in accordance with the Transfer Agent Instructions dated March ___, 2012, from the Company and acknowledged and agreed to by _______________.

 

 

	 	[TRANSFER AGENT]
	 	 
	 	 
	 	 
	 	By: 	
	 	 	Name:

Title:Exhibit 10.1

 

AMENDMENT AND EXCHANGE AGREEMENT

 

This Amendment and
Exchange Agreement (the “Agreement”), dated as of August 7, 2012, is by and between China Shen Zhou Mining &
Resources, Inc., a Nevada corporation with headquarters located at No. 166 Fushi Road, Zeyang Tower, Shijingshan District, Beijing,
China 100043, 86-010-8890-6927 (the “Company”), and the holder identified on the signature page hereto (“Holder”).

 

RECITALS

 

A.On March 21,
2012, the Company filed with the Secretary of State of Nevada a Certificate of Designations, Preferences and Rights of the Series
A Convertible Preferred Stock, which was amended and restated in its entirety on March 23, 2012 (the “Existing Certificate
of Designations”).

 

B.On or about March
26, 2012, the Company issued (i) shares of Series A Convertible Preferred Stock, $0.001 par value per share (the “Series
A Preferred Stock”, each, an “Existing Preferred Share”, such Existing Preferred Shares, collectively,
the “Existing Preferred Shares”, and the Existing Preferred Shares of the Holder, the “Holder Existing
Preferred Shares”), convertible into the Company’s common stock, $0.001 par value per share (the “Common
Stock”, and such Existing Preferred Shares, as converted, the “Existing Conversion Shares” and such
Holder Existing Preferred Shares, as converted, the “Holder Existing Conversion Shares”) and (ii) warrants (each,
an “Existing Warrant” and, collectively, the “Existing Warrants”) to purchase Common
Stock pursuant to a Securities Purchase Agreement dated as of March 21, 2012, as amended on March 23, 2012 (the “Existing
Securities Purchase Agreement”) to the Holder and certain other investors signatory thereto (the Holder and such other
investors collectively, the “Investors”). Capitalized terms not defined herein shall have the meanings set forth
in the Existing Securities Purchase Agreement as amended hereby.

 

C.On August 1,
2012, the Company failed to effect a Company Redemption (as defined in the Existing Certificate of Designations) with respect to
the Holder Existing Preferred Shares, as required by the terms and conditions of the Certificate of Designations (the “Existing
Event”).

 

D.The Company and
the Holder desire to enter into this Agreement, pursuant to which, among other things (i) the Company shall amend and restated
the Existing Certificate of Designations in the form attached hereto as Exhibit A (the “Amended Certificate of
Designations”) by filing such Second Amended Certificate of Designations with the Secretary of State of Nevada on or
prior to the Closing Date (such filing time, the “Amended Certificate Effective Time”), (ii) the Company and
the Holder shall amend certain of the other Transaction Documents, (iii) the Company and the Holder shall exchange an Existing
Warrant held by the Holder (the “Holder Existing Warrant”) for a warrant to purchase Common Stock of
the Company in the form attached hereto as Exhibit B (the “Holder Exchanged Warrant”) exercisable into
an identical number of shares of Common Stock (the Holder Exchanged Warrant as exercised, the “Holder Exchanged Warrant
Shares”), and (iv) certain notices delivered by the Holder to the Company in connection with the Existing Event shall
become void ab initio. For purpose of this Agreement, after the Amended Certificate Effective Time, (i) each Existing Preferred
Share shall be referred to herein as an “Amended Preferred Share”, such Amended Preferred Shares, collectively,
the “Amended Preferred Shares”, and the Amended Preferred Shares of the Holder, the “Holder Amended
Preferred Shares” and (ii) the Existing Conversion Shares shall be referred to herein as the “Amended Conversion
Shares” and the Amended Conversion Shares of the Holder, the “Holder Amended Conversion Shares”.

 

    	 

    	 	

    
 

E.As a closing
condition to the transactions contemplated hereby, each of the holders of Existing Preferred Shares as of the date hereof other
than the Holder (the “Other Holders”) are executing agreements identical to this Agreement (other than proportional
changes in the numbers reflecting the different (i) number of Existing Preferred Shares held by each Other Holder and (ii) number
of shares of Exchanged Warrant Shares of each Other Holder (collectively, the “Other Exchanged Warrant Shares”,
and together with the Holder Exchanged Warrant Shares, the “Exchanged Warrant Shares”) issuable upon exercise
of each Holder Exchanged Warrant (as defined in each Other Agreement (as defined below)) (collectively, the “Other Exchanged
Warrants”, and together with the Holder Exchanged Warrant, the “Exchanged Warrants”),) (the “Other
Agreements”, and together with this Agreement, the “Agreements”).

 

G.The Existing
Warrants will be exchanged for Exchanged Warrants in an exchange made in reliance upon the exemption from registration provided
by Section 3(a)(9) of the Securities Act.

 

AGREEMENT

 

1.                 
Amendment; Exchange. Effective as of the time the Company, the Holder and each Other Holder have executed
and delivered to each other the Agreements (the “Effective Time”), the Holder hereby consents to the amendment
and restatement of the Existing Certificate of Designations as the Amended Certificate of Designations and hereby further authorizes
the Company to file the Amended Certificate of Designations with the Secretary of State of Nevada (the “Amendment”).
Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below, on the Closing Date (as defined
below) the Holder shall, and the Company shall, pursuant to Section 3(a)(9) of the Securities Act, exchange the Holder Existing
Warrant for the Holder Exchanged Warrant (the “Exchange”). On or prior to the Closing (as defined below), the
following transactions shall occur:

 

1.1             
Filing of Amended Certificate of Designations. As soon as practicable following the Effective Time (or such other
time as agreed by the parties hereto), the Company shall file the Amended Certificate of Designations with the Secretary of State
of Nevada.

 

1.2             
Delivery. In exchange for the Holder Existing Warrant, the Company shall deliver or cause to be delivered to the
Holder the Holder Exchanged Warrant without any restricted legends. The Holder shall deliver or cause to be delivered to the Company
(or its designee) the certificate with respect to the Holder Existing Warrant, within twenty (20) Business Days following the Closing
(as defined below). As of the Closing Date (as defined below), all of the Holder’s rights under the Holder Existing Warrant
shall be extinguished.

 

    	2

    	 

    
 

1.3             
Other Documents. The Company and the Holder shall execute and/or deliver such other documents and agreements as are
customary and reasonably necessary to effectuate the Amendment and the Exchange.

 

1.4             
Outstanding Dividends. The parties acknowledge and agree that any accrued and unpaid Dividends (as defined in the
Existing Certificate of Designations) on each Holder Existing Preferred Share shall automatically be deemed to be accrued and unpaid
Dividends (as defined in the Amended Certificate of Designations) on such Holder Amended Preferred Share.

 

1.5             
No Additional Consideration. The parties acknowledge and agree that the Holder Exchanged Warrant shall be issued
to the Holder in exchange for the Holder Existing Warrant, in each case, without the payment of any additional consideration.

 

1.6             
Closing. Upon confirmation that the conditions to closing specified in this Agreement have been satisfied or duly
waived by the Holder or the Company, as applicable, the closing of the Exchange (the “Closing”) shall occur
on August 9, 2012 or such other date as is mutually acceptable to the Holder and the Company (the “Closing Date”).

 

2.                 
AMENDMENTS TO TRANSACTION DOCUMENTS.

 

2.1             
Ratifications. Except as otherwise expressly provided herein, the Existing Securities Purchase Agreement and each
other Transaction Document, is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all
respects, except that on and after the Closing Date: (i) all references in the Existing Securities Purchase Agreement to “this
Agreement”, “hereto”, “hereof”, “hereunder” or words of like import referring to the
Existing Securities Purchase Agreement shall mean the Existing Securities Purchase Agreement as amended by this Agreement, and
(ii) all references in the other Transaction Documents, to the “Securities Purchase Agreement”, “thereto”,
“thereof”, “thereunder” or words of like import referring to the Securities Purchase Agreement shall mean
the Existing Securities Purchase Agreement as amended by this Agreement.

 

2.2             
Amendments to Transaction Documents. On and after the Closing Date, each of the Transaction Documents are hereby
amended as follows:

 

(a)         
The defined term “Preferred Shares” is hereby amended and restated as “Amended Preferred Shares (as defined
in the Amendment and Exchange Agreements)”.

 

(b)        
The defined term “Conversion Shares” is hereby amended and restated as “Amended Conversion Shares (as
defined in the Amendment and Exchange Agreements)”.

 

(c)         
The defined term “Certificate of Designations” is hereby amended and restated as “Amended Certificate
of Designations (as defined in the Amendment and Exchange Agreements)”.

 

(d)        
The defined term “Warrants” is hereby amended and restated as “Exchanged Warrants (as defined in the Amendment
and Exchange Agreements)”.

 

    	3

    	 

    
 

(e)         
The defined term “Warrant Shares” is hereby amended and restated as “Exchanged Warrant Shares (as defined
in the Amendment and Exchange Agreements)”.

 

(f)         
The defined term “Transaction Documents” is hereby amended to include the Amendment and Exchange Agreements.

 

(g)        
The defined term “Amendment and Exchange Agreements” shall mean “those certain Amendment and Exchange
Agreements, dated as of August 7, 2012, each by and between the Company and each Buyer”.

 

3.                 
Representations and Warranties.

 

3.1             
Holder Bring Down. The Holder hereby makes the representations and warranties as to itself only as set forth in Section
2 of the Securities Purchase Agreement (as amended hereby) as if such representations and warranties were made as of the date hereof
and set forth in their entirety in this Agreement, mutatis mutandis.

 

3.2             
Company Bring Down. The Company hereby makes the representations and warranties to the Holder as set forth in Section
3 of the Securities Purchase Agreement (as amended hereby) as if such representations and warranties were made as of the date hereof
and set forth in their entirety in this Amendment, mutatis mutandis.

 

4.                 
Covenants.

 

4.1             
Reasonable Best Efforts. The Company shall use its reasonable best efforts to timely satisfy each of the conditions
to be satisfied by it as provided in Section 6 of this Agreement. The Holder shall use its reasonable best efforts to timely satisfy
each of the conditions to be satisfied by it as provided in Section 5 of this Agreement.

 

4.2             
Disclosure of Transactions and Other Material Information. On or before 9:30 a.m., New York time, on the first
(1st) Business Day following the date of this Agreement, the Company shall file a Current Report on Form 8-K describing all the
material terms of the transactions contemplated by the Agreements in the form required by the 1934 Act and attaching all the material
agreements (including, without limitation, this Agreement (and all schedules to this Agreement), the form of the Amended Certificate
of Designations and the form of the Exchanged Warrants) (including all attachments, the “8-K Filing”). From
and after the issuance of the 8-K Filing, the Company shall have disclosed all material, non-public information (if any) delivered
to any of the Buyers by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents
in connection with the transactions contemplated by the Agreements.

 

4.3             
Fees.
The Company shall reimburse Greenberg Traurig, LLP (counsel to the lead Buyer), on demand, for all reasonable, documented
costs and expenses incurred by it in connection with preparing and delivering this Agreement (including, without limitation,
all reasonable, documented legal fees and disbursements in connection therewith, and due diligence in connection with the
transactions contemplated thereby) provided, however, that the amount payable by the Company to
Greenberg Traurig, LLP shall not exceed $10,000 in the aggregate unless agreed to in writing by the Company (the
“Lead Investor Counsel Expenses”).

 

    	4

    	 

    
 

4.4             
Holding Period. For the purposes of Rule 144, the Company acknowledges that the holding period of (i) the Holder
Amended Preferred Shares (and upon conversion of the Holder Amended Preferred Shares, the Holder Amended Conversion Shares) may
be tacked onto the holding period of the Holder Existing Preferred Shares and (iii) the Holder Exchanged Warrants (and upon exercise
of the Holder Exchanged Warrants, the Holder Exchanged Warrant Shares (if acquired using a Cashless Exercise (as defined in the
Holder Exchanged Warrant))) may be tacked onto the holding period of the Holder Existing Warrants, and the Company agrees not to
take a position contrary to this Section 4.4. The Company agrees to take all actions, including, without limitation, the issuance
by its legal counsel of any necessary legal opinions, necessary to issue the Holder Amended Conversion Shares and Holder Exchanged
Warrant Shares without restriction and not containing any restrictive legend without the need for any action by the Holder. The
Company further represents that immediately following the Amended Certificate Effective Time, the Holder Amended Preferred Shares
shall not be subject to any restriction on trading and shall not be required to bear any restricted legend.

 

4.5             
Series A Preferred Stock. So long as any Amended Preferred Shares remain outstanding, the Company shall not issue
any Series A Preferred Stock to any Person without the prior written consent of the holders of Amended Preferred Shares.

 

5.                 
CONDITIONS TO COMPANY’S OBLIGATIONS HEREUNDER.

 

The obligations of
the Company to the Holder hereunder are subject to the satisfaction of each of the following conditions, provided that these conditions
are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing the Holder
with prior written notice thereof:

 

5.1             
The Holder shall have duly executed this Agreement and delivered the same to the Company.

 

5.2             
Each of the Other Holders shall have duly executed the Other Agreement of such Other Holder and delivered the same to the
Company.

 

5.3             
Each Holder shall have duly executed a consent authorizing the amendment to the Existing Certificate of Designations and
the filing of the Amended Certificate of Designations (the “Holder Consent”) and delivered the same to the
Company.

 

5.4             
Each of the Other Holders shall have duly executed the Holder Consent and delivered the same to the Company.

 

5.5             
The representations and warranties of the Holder contained herein shall be true and correct in all material respects as
of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak
as of a specific date which shall be true and correct as of such specified date), and the Holder shall have performed, satisfied
and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed,
satisfied or complied with by the Holder at or prior to the Closing Date.

 

    	5

    	 

    
 

6.                 
CONDITIONS TO HOLDER’S OBLIGATIONS HEREUNDER.

 

The obligations of
the Holder hereunder are subject to the satisfaction of each of the following conditions, provided that these conditions are for
the Holder’s sole benefit and may be waived by the Holder at any time in its sole discretion by providing the Company with
prior written notice thereof:

 

6.1             
The Company shall have duly executed and delivered this Agreement to the Holder.

 

6.2             
The Company shall have paid the Lead Investor Counsel Expenses to Greenberg Traurig LLP by wire transfer of U.S. dollars
and immediately available funds in accordance with the written instructions of Greenberg Traurig LLP delivered to the Company on
or prior to the Closing Date.

 

6.3             
The Company shall have filed the Amended Certificate of Designations with the Secretary of State of Nevada and delivered
a certified copy of the Certificate of Designations as certified by the Secretary of State of Nevada to the Holder.

 

6.4             
The Company shall have duly executed and delivered to the Holder the Holder Exchanged Warrant in such amounts as described
below the Holder’s name on the signature page of the Holder.

 

6.5             
The Company shall have delivered to the Holder a copy of each Other Agreement, duly executed and delivered by the Company
and each Other Holder party thereto.

 

6.6             
The Holder shall have received the opinion of Cadwalader, Wickersham & Taft, LLP, the Company’s counsel, dated
as of the Closing Date, in the form reasonably satisfactory to the Holder.

 

6.7             
The Holder shall have received the opinion of Cadwalader, Wickersham & Taft, LLP, the Company’s counsel, to the
Transfer Agent dated as of the Closing date, in the form reasonably satisfactory to the Holder.

 

6.8             
The Holder shall have received the opinion of Lionel Sawyer & Collins, the Company’s Nevada Counsel, dated as
of the Closing Date, in the form acceptable to the Holder.

 

6.9             
The Company shall have delivered to the Holder a certificate, in the form acceptable to the Holder, duly executed by the
Secretary of the Company and dated as of the Closing Date, as to (i) the resolutions authorizing the transactions contemplated
hereby as adopted by the Company’s board of directors, in a form reasonably acceptable to the Holder, (ii) the Certificate
of Incorporation of the Company and (iii) the Bylaws of the Company, each as in effect at the Closing.

 

6.10         
Each and every representation and warranty of the Company contained herein shall be true and correct in all material respects
as of the date when made and as of the Closing Date as though originally made at that time (except for representations and warranties
that speak as of a specific date, which shall be true and correct as of such date) and the Company shall have performed, satisfied
and complied in all material respects with the covenants, agreements and conditions required to be performed, satisfied or complied
with by the Company at or prior to the Closing Date. The Holder shall have received a certificate, duly executed by the Chief Executive
Officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably
requested by the Holder in the form acceptable to the Holder.

 

    	6

    	 

    
 

6.11         
The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for
the Amendment and the Exchange, including without limitation, those required by the Principal Market.

 

6.12         
No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by any court or governmental authority of competent jurisdiction that prohibits the consummation of any of the transactions
contemplated by the Agreements.

 

6.13         
The Company shall have delivered to the Holder such other documents relating to the transactions contemplated by this Agreement
as the Holder or its counsel may reasonably request.

 

7.                 
OUTSTANDING NOTICES. Effective as of the Closing Date, the Holder hereby acknowledges and agrees that (i) if applicable,
each Void Optional Redemption Notice (as defined in the Existing Certificate of Designations), (ii) if applicable, each Conversion
Notice (as defined in the Existing Certificate of Designations), solely to the extent not satisfied as of the Closing Date, and
(iii) if applicable, each Triggering Event Redemption Notice (as defined in the Existing Certificate of Designations), in each
case, delivered by the Holder to the Company on or prior to the date hereof, shall be void ab initio and (iii) the Existing
Event shall not constitute a Triggering Event or any other violation of any of the terms pursuant to the Amended Certificate of
Designations.

 

8.                 
TERMINATION.

 

In the event that
the Closing does not occur on or before five (5) Business Days from the date hereof due to the Company’s or the Holder’s
failure to satisfy the conditions set forth in Sections 6 and 7 hereof (and the nonbreaching party’s failure to waive such
unsatisfied conditions(s)), the nonbreaching party shall have the option to terminate this Agreement with respect to such breaching
party at the close of business on such date without liability of any party to any other party. Upon such termination, the terms
hereof shall be null and void and the parties shall continue to comply with all terms and conditions of the Agreements,
as in effect prior to the execution of this Agreement.

 

9.                 
MISCELLANEOUS.

 

9.1             
Miscellaneous Provisions. Section 8 of the Existing Securities Purchase Agreement (as amended hereby) is hereby incorporated
by reference herein, mutatis mutandis.

 

    	7

    	 

    
 

9.2             
Most Favored Nation. The Company hereby represents and warrants as of the date hereof and covenants and agrees from
and after the date hereof that none of the terms offered to any Person with respect to any consent, release, amendment, settlement
or waiver relating to the terms, conditions and transactions contemplated hereby (each a “Settlement Document”),
is or will be more favorable to such Person than those of the Holder and this Agreement. If, and whenever on or after the date
hereof, the Company enters into a Settlement Document, then (i) the Company shall provide notice thereof to the Holder immediately
following the occurrence thereof and (ii) the terms and conditions of this Agreement, the other Exchange Documents and the Securities
(other than any limitations on conversion or exercise set forth therein) shall be, without any further action by the Holder or
the Company, automatically amended and modified in an economically and legally equivalent manner such that the Holder shall receive
the benefit of the more favorable terms and/or conditions (as the case may be) set forth in such Settlement Document, provided
that upon written notice to the Company at any time the Holder may elect not to accept the benefit of any such amended or modified
term or condition, in which event the term or condition contained in this Agreement or the Securities (as the case may be) shall
apply to the Holder as it was in effect immediately prior to such amendment or modification as if such amendment or modification
never occurred with respect to the Holder. The provisions of this Section 9.2 shall apply similarly and equally to each Settlement
Document.

 

[The remainder of the page is intentionally
left blank]

 

    	8

    	 

    
  

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day and year first above written.

 

 

	 	COMPANY:
	 	 
	 	CHINA SHEN ZHOU MINING &
RESOURCES, INC. 
	 	 
	 	 
	 	 
	 	By: 	
	 	 	Name:
 Title:

 

    	[Amendment and Exchange Agreement]

    	 

    

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day and year first above written.

 

 

 

 

	 	HOLDER:	 
	 	 	 
	 	 	 

 

 

 

 

 

	 	By:	 	 
	 	 	Name:	 
	 	 	Title:	 

 

 

	Number of Exchanged Warrant Shares issuable to Holder upon exercise of the Holder Exchanged Warrant (such Holder Exchanged Warrant to be delivered to the Holder on the Closing Date):	 	 

 

    	[Amendment and Exchange Agreement]

    	 

    
 

Schedules
to Amendment and Exchange Agreement

 

 

Schedule 3(e)

 

While
the Company previously obtained Amex approval for the issuance of certain of the Securities, and the Company previously obtained
shareholder approval to issue greater than 20% of the outstanding Common Stock of the Company in connection with the Securities,
the Company will need to obtain further Amex approval for the listing of the additional Common Stock approved by the shareholders
and for the shares upon exercise of the Exchanged Warrants.

 

Schedule 3(l)

 

The Company declared
and issued dividends to the holders of its Series A Convertible Preferred Stock on or about July 1, 2012.

 

All material capital
expenditures undertaken by the Company after the date of the Company’s most recent audited financial statements have been
reported as required in the SEC Documents.

 

Schedule 3(n)

 

As
reported on a current report on Form 8-K filed by the Company on December 19, 2011, the company did not provide NYSE Amex with
sufficient notice of the setting of the record date for the 2011 Annual Meeting of Shareholders of the Company (the “Notice”).
Such Notice was required to be reported as an event under “Item 3.01 Notice of Delisting or Failure
to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.”

 

Schedule 3(q)

 

DUE FROM RELATED PARTIES

 

Due from related parties classified as long
term liabilities consist of the following:

 

	 	 	
        June 30,

        2012
	 	 	
        December 31,

        2011
	 
	 	 	(In thousands)	 	 	(In thousands)	 
	Mr. Gang Liu	(a) 	$	1,163	 	 	$	-	 
	Mr. Wenrui Li	(b) 	 	32	 	 	 	-	 
	Due from Guizhou Yanhe Dongsheng Mining, Ltd. (“Yanhe Dongsheng”)	(c) 	 	83	 	 	 	-	 
	Due from Chongqing Fengdu Dongsheng Mining, Ltd. (“Fengdu Dongsheng”)	(c) 	 	420	 	 	 	-	 
	Due from Hubei Dongsheng Mining, Ltd. (“Hubei Dongsheng”)	(c) 	 	193	 	 	 	-	 
	Due from Chongqing Henrun Mining, Ltd. (“Chongqing Henrun”)	(c) 	 	95	 	 	 	-	 
	Due from Guizhou Wuchuan Shanxian Food, Ltd. (“Shanxian Food”)	(c) 	 	919	 	 	 	-	 
	Due from Guizhou Zhengan Zunzheng Mining Development, Ltd. (“Zunzheng Mining”)	(c) 	 	189	 	 	 	-	 
	Due from Wuchuan Chenhe Dongsheng Fluoride Industry Co., Ltd. (“Chenhe Fluoride”)	(d) 	 	270	 	 	 	-	 
	Less: Allowance for doubtful accounts	(e) 	 	(270	)	 	 	-	 
	 	 	$	3,094	 	 	$	-	 

 

	 	(a)	Mr. Gang Liu is a minor shareholder and the General Manager of Dongsheng Mining, Meilan Mining, and Qianshi Resources.

 

	 	(b)	Mr. Li is a family member of Mr. Gang Liu.

 

    	 

    	 	

    
 

	 	(c)	Yanhe Dongsheng, Fengdu Dongsheng, Hubei Dongsheng, Chongqing Henrun, Shanxian Food and Zunzheng Mining are owned by Mr. Gang Liu.

 

	 	(d)	Chenhe Fluoride’s 30% equity interest is owned by Dongsheng Mining.

 

	 	(e)	An accumulated impairment provision of $270,000 for the six months ended June 30, 2012 was recorded for Chenhe Fluoride for its losses during last three years.

 

According to Wuchuan Agreement, the Company
shall bear the original debts of Dongsheng Mining, Meilan Mining, and Qianshi Resources amounting to no more than RMB 50,000,000
($7.90 million). The funds due from related parties will be returned to pay the original debts of Dongsheng Mining, Meilan Mining,
and Qianshi Resources.

 

 

DUE TO RELATED PARTIES

 

Due to related parties classified as long
term liabilities consist of the following:

 

	 	 	June 30, 
 2012	 	 	December 31, 
 2011	 
	 	 	(In thousands)	 	 	(In thousands)	 
	Due to directors of the Company:	 	 	 	 	 	 
	Ms. Xiaojing Yu, CEO of the Company	 	$	-	 	 	$	106	 
	Mr. Xueming Xu, Director of the Company	 	 	12	 	 	 	13	 
	Due to Mr. Xiaoming Yu, General Manager of Xiangzhen Mining	 	 	46	 	 	 	127	 
	Due to Mr. Mao Huang, a minority shareholder of Xingzhen Mining	 	 	4	 	 	 	4	 
	Due to Mr. Guojian Zhou, a minor shareholder of Qianshi Resources	 	 	126	 	 	 	-	 
	Due to Mr. Shuanglong Tian, a minor shareholder of Meilan Mining	 	 	51	 	 	 	-	 
	 	 	$	239	 	 	$	250	 

Schedule 3(r)

 

There are currently 39,323,772
shares of Common Stock issued and outstanding.

 

On January 19, 2011,
and as reported in the SEC Documents the Company entered into an Securities Purchase Agreement pursuant to which it sold Common
Stock and Warrants to purchase Common Stock (the “Transaction”). Subject to the terms of the Transaction, the
Warrants contain anti-dilution and other protective provisions.

 

    	 

    	 	

    
 

Schedule 3(s)

 

SHORT-TERM LOANS

 

Short-term loans consisted of the following:

 

	 	 	June 30, 
 2012	 	 	December 31, 
 2011	 
	 	 	(in thousands)	 	 	(in thousands)	 
	7.01% note payable to China Citic Bank matures on June 30, 2012, collateralized with Xiangzhen’s extraction right, land use right and some machineries	 	$	-	 	 	$	3,145	 
	7.01% note payable to China Citic Bank matures on June 30, 2012, collateralized with Xiangzhen’s extraction right, land use right and some machineries	 	 	-	 	 	 	3,145	 
	5.15% note payable to Mr. Mao Huang, a related party of the Company, matures on January 26, 2012, collateralized with Xingzhen’s extraction right and the ore processing plant	 	 	-	 	 	 	2,560	 
	9.76% note payable to Baiyin Credit Union matures on Janurary 17, 2012, guaranteed by the bank draft of the Company	 	 	-	 	 	 	944	 
	9.76% note payable to Baiyin Credit Union matures on April 21, 2012, guaranteed by the bank draft of the Company	 	 	-	 	 	 	786	 
	9.76% note payable to Baiyin Credit Union matures on May 9, 2012, guaranteed by the bank draft of the Company	 	 	-	 	 	 	786	 
	11.15% note payable to Baiyin Credit Union matures on December 17, 2012 with interest due on the 20th day of each quarter and principal due at date of maturity, guaranteed by Xingzhen Mining	 	 	316	 	 	 	315	 
	11.15% note payable to Baiyin Credit Union matures on December 21, 2011 with interest due on the 20th day of each quarter and principal due at date of maturity, guaranteed by Xingzhen Mining	 	 	316	 	 	 	315	 
	9.18% note payable to China Citic Bank matures on March 31, 2013, collateralized with Xiangzhen’s extraction right	 	 	7,920	 	 	 	-	 
	9.76% note payable to Baiyin Credit Union matures on July 20, 2012, guaranteed by the bank draft of the Company	(a) 	 	1,663	 	 	 	-	 
	7.93% note payable to Mr. Xin Li, matures on November 18, 2012	 	 	317	 	 	 	 	 
	 	 	$	10,532	 	 	$	11,996	 

 

(a) The loan was repaid in July, 2012.

 

 

LONG-TERM LOANS

 

Long-term loans consisted of the following:

 

	 	 	June 30,	 	 	December 31,	 
	 	 	2012	 	 	2011	 
	 	 	(in thousands)	 	 	(in thousands)	 
	13.30% note payable to Wuchuan Credit Union matures on January 11, 2015 with interest due on the 20th day of each month, collateralized with Dongsheng Mining’s extraction rights.	 	$	1,742	 	 	$	-	 
	 	 	 	 	 	 	 	 	 

 

 

Schedule 3(bb)

 

The Company received
two comment letters from the SEC dated July 7, 2011 and December 19, 2011, respectively, with respect to the Company’s annual
report on Form 10-K for the year ended December 31, 2010 and certain quarterly reports from the 2011 fiscal year (the “Letters”).
In the Letters, the SEC asked that the company disclose additional information about its accounting practices and personnel. The
Company received an additional comment letter on July 25, 2012, stating that the SEC “believes that [the Company’s]
lack of U.S. GAAP experience constitutes a material weakness and thus [the Company’s] internal controls over financial reporting
would not be effective.” The Company has yet to determine what course it will take in responding to the July 25, 2012 letter.

 

Schedule 3(pp)

 

The company in the ordinary
course of its business neither materially Over-Produces nor materially Under-Produces at its mines.

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