Document:

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EXHIBIT 4.24

                          PACIFIC ENERGY RESOURCES LTD.

                                     - and -

                      COMPUTERSHARE TRUST COMPANY OF CANADA

                                WARRANT INDENTURE

                             Dated October 18, 2007

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                                TABLE OF CONTENTS

                                   ARTICLE ONE
                                                                              2
SECTION 1.01   DEFINITIONS
SECTION 1.02   NUMBER AND GENDER                                              3
SECTION 1.03   INTERPRETATION NOT AFFECTED BY HEADINGS                        3
SECTION 1.04   DAY NOT A BUSINESS DAY                                         3
SECTION 1.05   APPLICABLE LAW                                                 3
SECTION 1.06   REFERENCES TO THIS INDENTURE                                   4
SECTION 1.07   SCHEDULE                                                       4
                                                                              4
                                   ARTICLE TWO
                                                                              4
SECTION 2.01   ISSUE AND FORM OF WARRANTS:
SECTION 2.02   DELIVERY OF WARRANTS:                                          4
SECTION 2.03   WARRANTHOLDER NOT A STOCKHOLDER:                               6
SECTION 2.04   SIGNING OF WARRANT CERTIFICATE:                                6
SECTION 2.05   COUNTERSIGNATURE BY THE WARRANT AGENT:                         6
SECTION 2.06   REGISTRATION AND TRANSFER OF WARRANTS:                         7
SECTION 2.07   OWNERSHIP OF WARRANTS:                                         7
SECTION 2.08   WARRANTS TO RANK PARI PASSU:                                   9
                                                                              9
                                  ARTICLE THREE
                                                                              9
SECTION 3.01   WARRANT CERTIFICATES:
                                                                              9
                                  ARTICLE FOUR
                                                                              9
SECTION 4.01   EXERCISE OF WARRANTS
SECTION 4.02   ISSUE OF SHARE CERTIFICATES                                    9
SECTION 4.03   SECURITIES RESTRICTIONS; LEGENDS                               10
                                                                              10
                                  ARTICLE FIVE
                                                                              11
SECTION 5.01   OPTIONAL PURCHASES BY THE CORPORATION
SECTION 5.02   SURRENDER OF WARRANT CERTIFICATES                              11
                                                                              11
                                   ARTICLE SIX
                                                                              11
SECTION 6.01   WARRANT AGENT'S REMUNERATION AND EXPENSES
                                                                              11
                                  ARTICLE SEVEN
                                                                              11
SECTION 7.01   IMMUNITY OF STOCKHOLDERS
SECTION 7.02   LIMITATION OF LIABILITY                                        11
                                                                              12
                                  ARTICLE EIGHT
                                                                              12
SECTION 8.01   RIGHT TO CONVENE MEETING
SECTION 8.02   NOTICE                                                         12

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SECTION 8.03   CHAIRMAN                                                       12
SECTION 8.04   QUORUM                                                         13
SECTION 8.05   POWER TO ADJOURN                                               13
SECTION 8.06   SHOW OF HANDS                                                  13
SECTION 8.07   POLL                                                           13
SECTION 8.08   VOTING                                                         14
SECTION 8.09   REGULATIONS                                                    14
SECTION 8.10   THE CORPORATION AND WARRANT AGENT MAY BE REPRESENTED           14
SECTION 8.11   POWER EXERCISABLE EXTRAORDINARY RESOLUTION                     15
SECTION 8.12   MEANING OF "EXTRAORDINARY RESOLUTION"                          15
SECTION 8.13   POWERS CUMULATIVE                                              16
SECTION 8.14   MINUTES                                                        17
SECTION 8.15   INSTRUMENTS IN WRITING                                         17
SECTION 8.16   BINDING EFFECT OF RESOLUTIONS                                  17
SECTION 8.17   HOLDINGS BY THE CORPORATION AND SUBSIDIARIES DISREGARDED       17
                                                                              18
                                  ARTICLE NINE
                                                                              18
SECTION 9.01   PROVISION FOR SUPPLEMENTAL INDENTURES FOR CERTAIN PURPOSES
SECTION 9.02   SUCCESSOR CORPORATION                                          18
                                                                              19
                                   ARTICLE TEN
                                                                              19
SECTION 10.01  TRUST INDENTURE LEGISLATION
SECTION 10.02  RIGHTS AND DUTIES OF WARRANT AGENT                             19
SECTION 10.03  EVIDENCE                                                       19
SECTION 10.04  EXPERTS AND ADVISERS                                           20
SECTION 10.05  WARRANT AGENT NOT REQUIRED TO GIVE SECURITY                    21
SECTION 10.06  PROTECTION OF WARRANT AGENT                                    21
SECTION 10.07  REPLACEMENT OF WARRANT AGENT, SUCCESSOR BY MERGER              21
SECTION 10.08  CONFLICT OF INTEREST                                           23
SECTION 10.09  ACCEPTANCE OF DUTIES AND OBLIGATIONS                           24
SECTION 10.10  ACTIONS BY WARRANT AGENT TO PROTECT INTEREST                   24
SECTION 10.11  DOCUMENTS, MONEYS, ETC. HELD BY WARRANT AGENT                  24
SECTION 10.12  WARRANT AGENT NOT TO BE APPOINTED RECEIVER                     24
                                                                              25
                                 ARTICLE ELEVEN
                                                                              25
SECTION 11.01  NOTICE:
                                                                              25
                                 ARTICLE TWELVE
                                                                              25
SECTION 12.01  NOTICE TO THE CORPORATION AND THE WARRANT AGENT
SECTION 12.02  NOT BOUND TO ACT                                               25
SECTION 12.03  THIRD PARTY INTERESTS                                          27
SECTION 12.04  PRIVACY                                                        27
SECTION 12.05  TIME OF THE ESSENCE                                            27
SECTION 12.06  COUNTERPARTS                                                   28

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SECTION 12.07  SATISFACTION AND DISCHARGE OF INDENTURE                        28
               PROVISIONS OF INDENTURE AND WARRANT CERTIFICATE                28
               FOR THE SOLE BENEFIT OF PARTIES
SECTION 12.08  AND WARRANTHOLDERS                                             28
SECTION 12.09  STOCK EXCHANGE CONSENTS                                        28
                                                                              28
SCHEDULE A     FORM OF WARRANT CERTIFICATE

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                  THIS WARRANT INDENTURE dated the 18th day of October, 2007.

B E T W E E N:

                  PACIFIC ENERGY RESOURCES LTD., a corporation existing under
                  the laws of the State of Delaware,

                  (the "CORPORATION")

                                                               OF THE FIRST PART

                                     - and -

                  COMPUTERSHARE TRUST COMPANY OF CANADA, trust company
                  incorporated under the laws of Canada and authorized to carry
                  on business in all provinces of Canada,

                  (the "WARRANT AGENT"),

                                                              OF THE SECOND PART

WHEREAS the Corporation is authorized to issue Five Hundred Million
(500,000,000) Common Shares (as hereinafter defined);

AND WHEREAS the Corporation proposes to issue up to 34,090,909 units, with each
unit being comprised of one Common Share and one-half of one Warrant (as
hereinafter defined), and each whole Warrant of which will entitle the holder
thereof to subscribe for and purchase, subject to adjustment, one Common Share
at the price and upon the other terms and conditions hereinafter set forth;

AND WHEREAS the Corporation is authorized under the laws applicable to it to
create and issue the Warrants as hereinafter provided;

AND WHEREAS the Warrants will be represented by Warrant Certificates (as
hereinafter defined) issued and countersigned in accordance with the provisions
hereof;

AND WHEREAS all things necessary have been or will be done and performed by the
Corporation to make each of the Warrants and the Warrant Certificates, when
countersigned by the Warrant Agent and issued in accordance with the provisions
of this Indenture, legal, valid and binding obligations of the Corporation with
the benefits and subject to the provisions of this Indenture;

AND WHEREAS the foregoing recitals are made as representations by the
Corporation and not the Warrant Agent;

AND WHEREAS the Warrant Agent has agreed to enter into this Indenture.

NOW THEREFORE THIS INDENTURE WITNESSETH that for good and valuable consideration
mutually given and received, the receipt and sufficiency of which is hereby
acknowledged, it is hereby agreed and declared as follows:

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                                   ARTICLE ONE
                         DEFINITIONS AND INTERPRETATION

SECTION 1.01      DEFINITIONS:
                  ------------

In this Indenture, unless there is something in the subject matter or context
inconsistent therewith, the words and terms defined in this section 1.01 shall,
for the purpose of this Indenture and all supplemental indentures hereto, have
the respective meanings specified in this section 1.01:

         (a)      "1933 ACT" means the United States Securities Act of 1933, as
                  amended;
         (b)      "APPLICABLE LEGISLATION" means the provisions, if any, of any
                  statute of any applicable jurisdiction, and of the regulations
                  under any such statutes, relating to warrant indentures or to
                  the rights, duties and obligations of trustees and of
                  corporations under warrant indentures, to the extent that such
                  provisions are at the time in force and applicable to this
                  Indenture;

         (c)      "BUSINESS DAY" means a day which is not a Saturday or Sunday
                  or a civic or statutory holiday in any of the cities where
                  Warrant Certificates may be surrendered to the Warrant Agent
                  pursuant to the provisions hereof;

         (d)      "COMMON SHARES" means the shares of common stock, US$0.0001
                  par value, which the Corporation is authorized to issue as
                  such shares of common stock are constituted at the close of
                  business on the Effective Date; provided that in the event of
                  any adjustment, "COMMON SHARES" shall thereafter mean the
                  shares or other securities or property resulting from such
                  adjustment;

         (e)      "CORPORATION" means Pacific Energy Resources Ltd. and includes
                  any successor corporation thereto;

         (f)      "COUNSEL" means a barrister and solicitor or attorney or a
                  firm of barristers and solicitors or attorneys;

         (g)      "DIRECTOR" means a director of the Corporation for the time
                  being, and, unless otherwise specified herein, reference to
                  "ACTION BY THE DIRECTORS" means action by the directors of the
                  Corporation as a board or, whenever empowered, action by any
                  committee of the directors of the Corporation;

         (h)      "EFFECTIVE DATE" means the date hereof;

         (i)      "EXERCISE DATE" with respect to any Warrant means the date on
                  which such Warrant is surrendered for exercise in accordance
                  with the provisions of the Warrant Certificates;

         (j)      "EXERCISE PRICE" means CAD$2.65 per Common Share, unless such
                  amount shall have been adjusted pursuant to the provisions of
                  the Warrant Certificates in which case such term shall mean
                  the adjusted price in effect at the applicable time;

         (k)      "EXPIRY DATE" means 18 months from the date of issue of the
                  Warrants;

                                       2

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         (l)      "PERSON" means an individual, corporation, partnership, trust
                  or any unincorporated organization;

         (m)      "STOCKHOLDER" means a holder of record of one or more Common
                  Shares;

         (n)      "TIME OF EXPIRY" means 5:00 p.m., local time, on the Expiry
                  Date;

         (o)      "TRANSFER AGENT" means the transfer agent for the time being
                  of the Common Shares;

         (p)      "WARRANT AGENT" has the meaning set forth on page 1 hereof or
                  the successor thereof for the time being of the duties and
                  obligations hereby created;

         (q)      "WARRANT CERTIFICATES" means the certificates representing the
                  Warrants substantially in the form attached as Schedule "A"
                  hereto issued and countersigned hereunder and for the time
                  being outstanding;

         (r)      "WARRANTHOLDERS", or "HOLDERS" without reference to Common
                  Shares, means the persons for the time being who are
                  registered holders of Warrant Certificates; and

         (s)      "WARRANTS" means the warrants issued hereunder, each whole
                  warrant will entitle the holder thereof to purchase one Common
                  Share for the Exercise Price at any time up to the Time of
                  Expiry, subject to adjustment in accordance with article five
                  hereof.

SECTION 1.02      NUMBER AND GENDER:
                  ------------------

Unless herein otherwise expressly provided or unless the context otherwise
requires, words importing the singular include the plural and vice versa and
words importing the masculine include the feminine and neuter genders.

SECTION 1.03      INTERPRETATION NOT AFFECTED BY HEADINGS:
                  ----------------------------------------

The division of this Indenture into articles, sections, subsections, paragraphs
and subparagraphs, the provision of the table of contents and the insertion of
headings are for convenience of reference only and shall not affect the
construction or interpretation of this Indenture.

SECTION 1.04      DAY NOT A BUSINESS DAY:
                  -----------------------

If the day on or before which any action that would otherwise be required to be
taken hereunder is not a Business Day in the place where the action is required
to be taken, that action will be required to be taken on or before the requisite
time on the next succeeding day that is a Business Day.

                                       3

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SECTION 1.05      APPLICABLE LAW:
                  ---------------

This Indenture, the Warrant Certificates and the Warrants represented by the
Warrant Certificates shall be governed by and construed in accordance with the
laws of the State of California. Nothwithstanding the foregoing, the performance
or discharge by the Warrant Agent of any of its rights, powers, duties or
responsibilities under this Agreement shall be construed only in accordance with
the laws of the Province of British Columbia and the federal laws of Canada
applicable therein.

SECTION 1.06      REFERENCES TO THIS INDENTURE:
                  -----------------------------

The words and phrases "THIS WARRANT INDENTURE", "THIS INDENTURE", "HEREIN",
"HEREBY", "HEREOF" and similar expressions mean or refer to this indenture and
any indenture, deed or instrument supplemental hereto and the words "ARTICLE",
"SECTION", "SUBSECTION", "PARAGRAPH" and "SUBPARAGRAPH" followed by a number
mean and refer to the specified article, section, subsection, paragraph or
subparagraphs of this Indenture.

SECTION 1.07      SCHEDULE:
                  ---------

The following schedule is attached to, forms part of and shall be deemed to be
incorporated into this Indenture.

Schedule "A" - Form of Warrant Certificate, including Form of Subscription and
Form of Transferor Endorsement

                                   ARTICLE TWO
                           ISSUE AND FORM OF WARRANTS

SECTION 2.01      ISSUE AND FORM OF WARRANTS:
                  ---------------------------

         (a)      AUTHORIZATION OF WARRANTS: The Corporation hereby creates and
                  authorizes for issue 17,045,454 Warrants entitling the holders
                  thereof to subscribe for and purchase up to an aggregate of
                  17,045,454 Common Shares together with such additional
                  indeterminate number of Common Shares as may be required to be
                  issued pursuant to any adjustment required to be made by the
                  provisions of such Warrants are hereby authorized to be
                  issued.

         (b)      FORM OF WARRANT CERTIFICATE: Upon the issue of the Warrants,
                  Warrant Certificates shall be executed by the Corporation and
                  delivered to the Warrant Agent, countersigned by the Warrant
                  Agent upon the written direction of the Corporation and
                  delivered by the Warrant Agent to the Corporation or to the
                  order of the Corporation pursuant to a written direction of
                  the Corporation, without any further act of or formality on
                  the part of the Corporation. The Warrant Certificates shall be
                  substantially in the form of the certificate attached hereto
                  as Schedule "A", shall be dated as of the date of issue
                  thereof (including all replacements issued in accordance with
                  this Indenture) and may bear such distinguishing letters and
                  numbers as the Corporation may, with the approval of the
                  Warrant Agent, prescribe. Irrespective of any adjustments
                  required to be made by the provisions of the Warrants, all
                  replacement Warrant Certificates shall be dated the date of
                  initial issuance and continue to express the number of Common
                  Shares purchasable upon the exercise of the Warrants
                  represented thereby and the Exercise Price as if such Warrant
                  Certificates were issued as of the initial date of issue
                  thereof pursuant hereto.

                                       4

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         (c) LEGENDS ON WARRANT CERTIFICATES:

              (i)     All Warrant Certificates, including any Warrant
                      Certificates issued in exchange for or in substitution of
                      such Warrant Certificates, shall bear the following
                      legend:

                           "THE SECURITIES REPRESENTED BY THIS WARRANT HAVE BEEN
                           ISSUED PURSUANT TO REGULATION S PROMULGATED UNDER THE
                           U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "ACT").
                           AS SUCH, THE SECURITIES REPRESENTED BY THIS WARRANT
                           ARE "RESTRICTED SECURITIES" AND MAY NOT BE SOLD,
                           OFFERED FOR SALE, TRANSFERRED, ASSIGNED, PLEDGED,
                           HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED OF
                           OTHER THAN (I) PURSUANT TO AN EFFECTIVE REGISTRATION
                           STATEMENT AS TO THE SHARES REPRESENTED BY THIS
                           WARRANT UNDER THE ACT, (II) OUTSIDE THE UNITED STATES
                           IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE
                           904 UNDER THE ACT, (III) PURSUANT TO RULE 144 UNDER
                           THE ACT, OR (IV) PURSUANT TO ANOTHER AVAILABLE
                           EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
                           ACT. THE HOLDER HEREOF AGREES THAT (A) ANY HEDGING
                           TRANSACTION WITH RESPECT TO THE SECURITIES
                           REPRESENTED BY THIS WARRANT WILL BE CONDUCTED IN
                           COMPLIANCE WITH THE ACT AND (B) IT WILL DELIVER, OR
                           CAUSE TO BE DELIVERED, TO EACH PERSON TO WHOM THE
                           SECURITIES REPRESENTED BY THIS WARRANT ARE
                           TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
                           THIS LEGEND. AS USED HEREIN, THE TERMS "OFFSHORE
                           TRANSACTION" AND "UNITED STATES" HAVE THE RESPECTIVE
                           MEANINGS ASSIGNED TO THEM IN REGULATION S UNDER THE
                           ACT."

              (ii)    All Warrant Certificates issued to Canadian residents,
                      including all Warrant Certificates issued to Canadian
                      residents in exchange for or in substitution of such
                      Warrant Certificates, prior to [four months and one day
                      following the date of issue of the Warrants] , shall bear
                      the following additional legend:

                           "UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE
                           HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY
                           BEFORE [four months and one day following the date of
                           issue of the Warrants] ."

         (d) LEGENDS ON COMMON SHARE CERTIFICATES:

              (i)     All Common Share certificates issued upon the exercise of
                      the Warrant Certificates shall bear the following legends:

                           "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
                           BEEN ISSUED PURSUANT TO REGULATION S PROMULGATED
                           UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED
                           (THE "ACT"). AS SUCH, THE SECURITIES REPRESENTED BY
                           THIS CERTIFICATE ARE "RESTRICTED SECURITIES" AND MAY
                           NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, ASSIGNED,
                           PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR
                           DISPOSED OF OTHER THAN (I) PURSUANT TO AN EFFECTIVE
                           REGISTRATION STATEMENT AS TO THE SHARES REPRESENTED
                           BY THIS CERTIFICATE UNDER THE ACT, (II) OUTSIDE THE
                           UNITED STATES IN AN OFFSHORE TRANSACTION IN
                           COMPLIANCE WITH RULE 904 UNDER THE ACT, (III)
                           PURSUANT TO RULE 144 UNDER THE ACT, OR (IV) PURSUANT
                           TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
                           REQUIREMENTS OF THE ACT. THE HOLDER HEREOF AGREES
                           THAT (A) ANY HEDGING TRANSACTION WITH RESPECT TO THE
                           SECURITIES REPRESENTED BY THIS CERTIFICATE WILL BE
                           CONDUCTED IN COMPLIANCE WITH THE ACT AND (B) IT WILL
                           DELIVER, OR CAUSE TO BE DELIVERED, TO EACH PERSON TO
                           WHOM THE SECURITIES REPRESENTED BY THIS CERTIFICATE
                           ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT
                           OF THIS LEGEND. AS USED HEREIN, THE TERMS "OFFSHORE
                           TRANSACTION" AND "UNITED STATES" HAVE THE RESPECTIVE
                           MEANINGS ASSIGNED TO THEM IN REGULATION S UNDER THE
                           ACT."

                                       5

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                           and

                           "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
                           LISTED ON THE TORONTO STOCK EXCHANGE ("TSX").
                           HOWEVER, PRIOR TO [four months and one day following
                           the date of issue of the Warrants] THE SAID
                           SECURITIES CANNOT BE TRADED THROUGH THE FACILITIES OF
                           TSX SINCE THEY ARE NOT FREELY TRANSFERABLE AND
                           CONSEQUENTLY ANY CERTIFICATE REPRESENTING SUCH
                           SECURITIES IS NOT "GOOD DELIVERY" IN SETTLEMENT OF
                           TRANSACTIONS ON TSX."

              (ii)    All Common Share Certificates issued to Canadian residents
                      upon exercise of the Warrants, including all Common Share
                      Certificates issued to Canadian residents in exchange for
                      or in substitution of such Common Share Certificates,
                      prior to [four months and one day following the date of
                      issue of the Warrants] , shall bear the following
                      additional legend:

                           "UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE
                           HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY
                           BEFORE [four months and one day following the date of
                           issue of the Warrants] ."

SECTION 2.02      DELIVERY OF WARRANT CERTIFICATES:
                  ---------------------------------

Warrant Certificates in definitive form representing the Warrants shall be
created and executed by the Corporation, shall be countersigned by the Warrant
Agent and shall be delivered by the Warrant Agent as of the date hereof as per
written direction of the Corporation.

SECTION 2.03      WARRANTHOLDER NOT A STOCKHOLDER:
                  --------------------------------

Nothing in this Indenture nor in the holding of a Warrant represented by a
Warrant Certificate, or otherwise, shall be construed as conferring upon a
Warrantholder any right or interest whatsoever as a Stockholder including, but
not limited to, the right to vote at, to receive notice of, or to attend,
meetings of Stockholders or the right to receive distributions or other
dividends.

SECTION 2.04      SIGNING OF WARRANT CERTIFICATE:
                  -------------------------------

Warrant Certificates shall be signed by an officer or officers of the
Corporation in accordance with the laws of the Corporation's jurisdiction of
incorporation. The signatures of such officers may be mechanically reproduced in
facsimile and Warrant Certificates bearing such facsimile signatures shall be
binding upon the Corporation as if they had been manually signed by such
officers. Notwithstanding that any of the persons whose manual or facsimile
signature appears on any Warrant Certificate as one of such officers may no
longer hold such office at the date of such Warrant Certificate or at the date
of the countersigning or delivery thereof, any Warrant Certificate signed as
aforesaid and countersigned by the Warrant Agent shall be valid and binding upon
the Corporation.

                                       6

<page>

SECTION 2.05      COUNTERSIGNATURE BY THE WARRANT AGENT:
                  --------------------------------------

         (a)      COUNTERSIGNATURE: No Warrant Certificate shall be issued or,
                  if issued, shall be valid for any purpose or entitle the
                  holder to the benefits hereof until it has been countersigned
                  by the Warrant Agent by means of a manual signature of one or
                  more of its authorized officers.

         (b)      NO REPRESENTATION: The countersignature by the Warrant Agent
                  on Warrant Certificates issued hereunder shall not be
                  construed as a representation or warranty by the Warrant Agent
                  as to the validity of this Indenture or of the Warrant
                  Certificate (except the due countersignature thereof) or as to
                  the performance by the Corporation of its obligations under
                  this Indenture and the Warrant Agent shall in no respect be
                  liable or answerable for the use made of the Warrant
                  Certificates or any of them or of the consideration therefor,
                  except as otherwise specified herein.

SECTION 2.06      REGISTRATION AND TRANSFER OF WARRANTS:
                  --------------------------------------

         (a)      REGISTER: The Warrant Agent shall keep at its principal
                  offices in Vancouver, British Columbia, Calgary, Alberta and
                  Toronto, Ontario:

                  (i)      a register of holders in which shall be entered the
                           names and addresses of the holders of Warrants and
                           particulars of the Warrants held by them; and

                  (ii)     a register of transfers in which all transfers of
                           Warrants and the date and other particulars of each
                           such transfer shall be entered.

         (b)      VALID TRANSFERS: No transfer of any Warrant will be valid
                  unless entered on the appropriate register of transfers
                  referred to in subsection 2.06(a) hereof, or on any branch
                  registers maintained pursuant to subsection 2.06(g) hereof,
                  upon surrender to the Warrant Agent of the Warrant Certificate
                  representing such Warrant, duly endorsed by, or accompanied by
                  a written instrument of transfer in form satisfactory to the
                  Warrant Agent executed by the registered holder or his
                  executors, administrators or other legal representatives or
                  his or their attorney duly appointed by an instrument in
                  writing in form and executed satisfactory to the Warrant
                  Agent, and, upon compliance with such requirements and such
                  other reasonable requirements as the Warrant Agent may
                  prescribe, such transfer will be recorded on the appropriate
                  register of transfers by the Warrant Agent.

                                       7

<page>

         (c)      REGISTER OF TRANSFERS: The transferee of any Warrant will,
                  after surrender to the Warrant Agent of the Warrant
                  Certificate representing such Warrant as required by
                  subsection 2.06(b) hereof and upon compliance with all other
                  conditions in respect thereof required by this Indenture or by
                  law, be entitled to be entered on the appropriate register of
                  holders referred to in subsection 2.06(a) hereof, or on any
                  branch registers of holders maintained pursuant to subsection
                  2.06(g) hereof, as the owner of such Warrant free from all
                  equities or rights of set-off or counterclaim between the
                  Corporation and the transferor or any previous holder of such
                  Warrant, except in respect of equities of which the
                  Corporation is required to take notice by statute or by order
                  of a court of competent jurisdiction.

         (d)      REFUSAL OF REGISTRATION: The Corporation will be entitled, and
                  may direct the Warrant Agent, to refuse to recognize any
                  transfer, or enter the name of any transferee, of any Warrant
                  on the registers referred to in subsection 2.06(a) hereof, if
                  such transfer may constitute a violation of the securities
                  laws of any jurisdiction or the rules, regulations or policies
                  of any regulatory authority having jurisdiction. In
                  particular, none of the Warrants and none of the Common Shares
                  issuable on the exercise of the Warrants have been registered
                  under the 1933 Act and such securities may not be offered or
                  sold absent an exemption from the registration provisions of
                  the 1933 Act.

         (e)      NO NOTICE OF TRUSTS: Subject to applicable law, neither the
                  Corporation nor the Warrant Agent will be bound to take notice
                  of or see to the execution of any trust, whether express,
                  implied or constructive, in respect of any Warrant, and may
                  transfer any Warrant on the direction of the person registered
                  as the holder thereof, whether named as trustee or otherwise,
                  as though that person were the beneficial owner thereof.

         (f)      INSPECTION: The registers referred to in subsection 2.06(a)
                  hereof, and any branch registers maintained pursuant to
                  subsection 2.06(g) hereof, will during each Business Day and
                  at all other reasonable times be open for inspection by the
                  Corporation. The Warrant Agent will from time to time when
                  requested to do so in writing by the Corporation (upon payment
                  of the reasonable charges of the Warrant Agent), furnish the
                  Corporation with a list of the names and addresses of holders
                  of Warrants entered on such registers and showing the number
                  of Warrants held by each such holder thereof.

         (g)      LOCATION OF REGISTERS: The Corporation may at any time and
                  from time to time change the place at which the registers
                  referred to in subsection 2.06(a) hereof are kept, cause
                  branch registers of holders or transfers to be kept at other
                  places and close such branch registers or change the place at
                  which such branch registers are kept, in each case subject to
                  the approval of the Warrant Agent. Notice of all such changes
                  or closures shall be given by the Corporation to the Warrant
                  Agent and to holders of Warrants in accordance with article
                  twelve hereof.

                                       8

<page>

         (h)      RELIANCE BY WARRANT AGENT: The Warrant Agent shall have no
                  obligation to ensure or verify compliance with any Applicable
                  Legislation or regulatory requirements of the United States or
                  any other jurisdiction on the issue, exercise or transfer of
                  any Warrants or any Common Shares or other securities issued
                  upon the exercise of any Warrants. The Warrant Agent shall be
                  entitled to process all preferred transfers and exercises of
                  Warrants upon the presumption that such transfers or exercises
                  are permissible pursuant to all Applicable Legislation and any
                  other regulatory requirements and the terms of the Indenture
                  and the related Warrant Certificates. The Warrant Agent may
                  assume for the purposes of this Indenture that the address on
                  the register of Warrantholders of any Warrantholder is the
                  actual address of such Warrantholder and is also determinative
                  of the residency of such Warrantholder and that the address of
                  any transferee to whom any Warrants or Common Shares or other
                  securities issuable upon the exercise of any Warrants are to
                  be registered, as shown on the transfer document, is the
                  actual address of the transferee and is also determinative of
                  the residency of the transferee.

         (i)      Should the Warrant Agent have any inquiries with respect to
                  affixing and removing legends on the Warrant Certificates or
                  Share Certificates, the Warrant Agent shall be entitled to
                  seek written direction from the Corporation or direction or
                  opinion from its legal counsel which determination shall be
                  conclusive, provided that it satisfies the requirements of the
                  Warrant Agent's legend removal requirements.

SECTION 2.07      OWNERSHIP OF WARRANTS:
                  ----------------------

         (a)      OWNER: The Corporation and the Warrant Agent may deem and
                  treat the person in whose name any Warrant is registered as
                  the absolute owner of such Warrant for all purposes, and such
                  person will for all purposes of this Indenture be and be
                  deemed to be the absolute owner thereof, and the Corporation
                  and the Warrant Agent will not be affected by any notice or
                  knowledge to the contrary except as required by statute or by
                  order of a court of competent jurisdiction.

         (b)      RIGHTS OF REGISTERED HOLDER: The registered holder of any
                  Warrant will be entitled to the rights evidenced thereby free
                  from all equities and rights of set-off or counterclaim
                  between the Corporation and the original or any intermediate
                  holder thereof and all persons may act accordingly, and the
                  issue and delivery to any such registered holder of the Common
                  Shares issuable pursuant thereto will be a good discharge to
                  the Corporation and the Warrant Agent therefor and neither the
                  Corporation nor the Warrant Agent will be bound to inquire
                  into the title of any such registered holder.

SECTION 2.08      WARRANTS TO RANK PARI PASSU:
                  ----------------------------

All Warrants shall rank PARI PASSU, whatever may be the actual date of issue of
any Warrants.
                                  ARTICLE THREE
                      DISTRIBUTION OF WARRANT CERTIFICATES

SECTION 3.01      WARRANT CERTIFICATES:
                  ---------------------

Warrant Certificates, issuable only in registered form, will be issued and
mailed or delivered to the holders of Warrants upon the written order of the
Corporation or upon the exchange thereof in accordance with the terms thereof.

                                  ARTICLE FOUR
                              EXERCISE OF WARRANTS

SECTION 4.01      EXERCISE OF WARRANTS:
                  ---------------------

                                       9

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         (a)      ACCOUNTING TO CORPORATION: The Warrant Agent shall as soon as
                  practicable account to the Transfer Agent and the Corporation
                  with respect to Warrants exercised. All such monies, and any
                  securities or other instruments, from time to time received by
                  the Warrant Agent shall be received in trust for, and shall be
                  segregated and kept apart by the Warrant Agent in trust for,
                  the Corporation. Promptly, and in any event, within five
                  Business Days of receipt thereof the Warrant Agent shall
                  forward to the Corporation all monies received through the
                  exercise of Warrants.

         (b)      RECORD OF EXERCISE: The Warrant Agent shall record the
                  particulars of the Warrants exercised for Common Shares which
                  particulars shall include the names and addresses of the
                  persons who become holders of Common Shares, if any, on
                  exercise, the number of Common Shares issued, the Exercise
                  Date and the Exercise Price. Promptly, and in any event,
                  within five Business Days of each Exercise Date, the Warrant
                  Agent shall provide such particulars in writing to the
                  Corporation and the Transfer Agent.

SECTION 4.02      ISSUE OF SHARE CERTIFICATES; REPLACEMENT WARRANT CERTIFICATES:
                  --------------------------------------------------------------

As soon as practicable, and in any event no later than the fifth Business Day on
which the transfer books of the Corporation have been opened after the exercise
of a Warrant as aforesaid, the Corporation shall forthwith (A) cause to be
mailed to the person or persons in whose name or names the Common Shares so
subscribed for and purchased are to be issued, as specified in the subscription
completed on the Warrant Certificate, at the address specified in such
subscription form, or (B) if specified in such subscription form, cause to be
mailed to the person or persons in whose name or names the replacement Warrant
Certificate representing the appropriate number of Warrants to which the
Warrantholder is entitled and elected to subscribe for and purchase pursuant to
the Warrant Certificate surrendered to the Warrant Agent.

SECTION 4.03      SECURITIES RESTRICTIONS; LEGENDS:
                  ---------------------------------

Notwithstanding any provision to the contrary contained in this Indenture, no
Common Shares will be issued pursuant to the exercise of any Warrant if the
issuance of such securities would constitute a violation of the securities laws
of any applicable jurisdiction, and, without limiting the generality of the
foregoing, the Corporation will legend the certificates representing the Common
Shares if, in the opinion of counsel to the Corporation such legend is necessary
in order to avoid a violation of any securities laws of any applicable
jurisdiction or to comply with the requirements of any stock exchange or
quotation system on which the Common Shares are listed or traded, provided that
if, at any time, in the opinion of outside counsel to the Corporation, acting
reasonably, such legends are no longer necessary in order to avoid a violation
of any such laws, or the holder of any such legended certificate, at his
expense, provides the Corporation with evidence satisfactory in form and
substance to the Corporation (which may include an opinion of counsel of
recognized standing satisfactory to the Corporation) to the effect that such
holder is entitled to sell or otherwise transfer such securities in a
transaction in which such legends are not required, such legended certificates
may thereafter be surrendered to the Corporation in exchange for a certificate
which does not bear such legends.

                                       10

<page>

                                  ARTICLE FIVE
                          PURCHASES BY THE CORPORATION

SECTION 5.01      OPTIONAL PURCHASES BY THE CORPORATION:
                  --------------------------------------

Subject to applicable law, the Corporation may from time to time purchase
Warrants on any stock exchange, in the open market, by private agreement or
otherwise. Any such purchase may be made in such manner, from such persons, at
such prices and on such terms as the Corporation in its sole discretion may
determine.

SECTION 5.02      SURRENDER OF WARRANT CERTIFICATES:
                  ----------------------------------

Warrant Certificates representing Warrants purchased pursuant to section 5.01
hereof shall be surrendered to the Warrant Agent for cancellation and shall be
accompanied by a direction of the Corporation to cancel the Warrants represented
thereby.

                                   ARTICLE SIX
                          COVENANTS OF THE CORPORATION

SECTION 6.01      WARRANT AGENT'S REMUNERATION AND EXPENSES:
                  ------------------------------------------

The Corporation covenants that it will pay to the Warrant Agent from time to
time remuneration for its services hereunder in accordance with the Schedule of
Fees attached hereto and the Corporation will pay or reimburse the Warrant
Agent, upon presentation of receipts or invoices, disbursements and advances
incurred or made by the Warrant Agent in the administration or execution of its
duties hereunder (including the reasonable compensation and the disbursements of
its counsel and all other advisers not regularly in its employ) both before any
default hereunder and thereafter until all duties of the Warrant Agent hereunder
shall be finally and fully performed, except any such expense, disbursement or
advance as may arise out of or result from the Warrant Agent's own gross
negligence or fraud.

                                  ARTICLE SEVEN
                                   ENFORCEMENT

SECTION 7.01      IMMUNITY OF STOCKHOLDERS:
                  -------------------------

No recourse under or upon any obligation, covenant or agreement contained in
this Indenture or in the Warrant Certificates shall be had against any
shareholder, officer or director, past, present or future, of the Corporation or
of any successor corporation, either directly or through the Corporation or
otherwise, by any legal or equitable proceeding by virtue of any statute or
otherwise.

All or any of the rights conferred on any Warrantholder by the terms of the
Warrants or of this Indenture may be enforced by such holder by appropriate
legal proceedings but without prejudice to the right which is hereby conferred
on the Warrant Agent to proceed in its own name to enforce each and every
provision herein contained for the benefit of the Warrantholders. The Warrant
Agent shall have the power at any time and from time to time to institute and to
maintain such suits and proceedings as it considers necessary or advisable to
preserve and protect its interests and the interests of the Warrantholders.

                                       11

<page>

No Warrantholder has any right whatsoever to affect, disturb or prejudice the
rights hereby created by its action, or to enforce any right under this
Indenture or under any Warrant Certificate, except subject to the conditions and
in the manner provided in this Indenture, and all powers and trusts under this
Indenture will be exercised and all proceedings at law will be instituted, held
and maintained by the Warrant Agent, except only as provided in this Indenture,
and in any event for the equal benefit of all Warrantholders.

SECTION 7.02      LIMITATION OF LIABILITY:
                  ------------------------

The obligations hereunder are not personally binding upon, nor shall resort
hereunder be had to, the private property of any of the past, present or future
officers, Directors or stockholders of the Corporation or of any successor
corporation or to any of the past, present or future officers, Directors,
employees or agents of the Corporation or any successor corporation, but only
the property of the Corporation or any successor corporation shall be bound in
respect hereof.

                                  ARTICLE EIGHT
                           MEETINGS OF WARRANTHOLDERS

SECTION 8.01      RIGHT TO CONVENE MEETINGS
                  -------------------------

         (a)      CONVENING OF MEETING: The Warrant Agent may at any time and
                  from time to time convene a meeting of the Warrantholders, and
                  will do so on receipt of a written request of the Corporation
                  or an instrument, signed in one or more counterparts by
                  Warrantholders ("Warrantholder's Request") who hold in the
                  aggregate not less than 10% of the total number of Warrants
                  then outstanding, requesting the Warrant Agent to take some
                  action or proceeding specified therein, and on being funded
                  and indemnified to its reasonable satisfaction by the
                  Corporation or by one or more of the Warrantholders signing
                  such Warrantholders' Request against the costs which it may
                  incur in connection with calling and holding such meeting.

         (b)      FAILURE TO CONVENE: If the Warrant Agent fails, within ten
                  Business Days after receipt of such written request of the
                  Corporation or Warrantholders' Request, funding and
                  indemnification, to give notice convening a meeting, the
                  Corporation or any of such Warrantholders, as the case may be,
                  may convene such meeting.

         (c)      PLACE OF MEETING: Every such meeting will be held in
                  Vancouver, British Columbia, or such other place as is
                  approved or determined by the Warrant Agent and the
                  Corporation.

SECTION 8.02      NOTICE
                  ------

                                       12

<page>

         (a)      NOTICE: At least 21 Business Days' notice of any meeting must
                  be given to the Warrantholders, to the Warrant Agent (unless
                  the meeting has been called by it) and to the Corporation
                  (unless the meeting has been called by it).

         (b)      CONTENTS: The notice of the meeting must state the time when
                  and the place where the meeting is to be held and must state
                  briefly the general nature of the business to be transacted
                  thereat, but it will not be necessary for the notice to set
                  out the terms of any resolution to be proposed or any of the
                  provisions of this article.

SECTION 8.03      CHAIRMAN
                  --------

Some person (who need not be a Warrantholder) designated in writing by the
Warrant Agent, or by the Corporation in the case of a meeting called by the
Corporation, will be chairman of the meeting or, if no person is so designated
or the person so designated is not present within 15 minutes after the time
fixed for the holding of the meeting, the Warrantholders present in person or by
proxy may choose some person present to be chairman.

SECTION 8.04      QUORUM
                  ------

         (a)      QUORUM: Subject to the provisions of section 8.12 hereof, at
                  any meeting of Warrantholders a quorum will consist of
                  Warrantholders, present in person or represented by proxy at
                  the commencement of the meeting, who hold in the aggregate not
                  less than 25% of the total number of Warrants then
                  outstanding.

         (b)      NO QUORUM: If a quorum of Warrantholders is not present within
                  30 minutes after the time appointed for holding a meeting, the
                  meeting, if convened by Warrantholders or on a Warrantholders'
                  Request, will be dissolved, but, subject to section 8.12
                  hereof, in any other case will stand adjourned to such day,
                  being not less than five Business Days or more than ten
                  Business Days later, and to such place and time as is
                  appointed by the Chairman.

         (c)      ADJOURNED MEETING: At the adjourned meeting the Warrantholders
                  present in person or by proxy will form a quorum and may
                  transact any business for which the meeting was originally
                  convened notwithstanding the number of Warrants that they
                  hold.

SECTION 8.05      POWER TO ADJOURN
                  ----------------

The chairman of a meeting at which a quorum of the Warrantholders is present
may, with the consent of the meeting, adjourn the meeting, and no notice of such
adjournment need be given except as the meeting prescribes.

SECTION 8.06      SHOW OF HANDS
                  -------------

Every question submitted to a meeting, other than an Extraordinary Resolution,
will be decided in the first place by a majority of the votes given on a show of
hands and, unless a poll is duly demanded as herein provided, a declaration by
the chairman that a resolution has been carried or carried unanimously or by a
particular majority or lost or not carried by a particular majority will be
conclusive evidence of the fact.

                                       13

<page>

SECTION 8.07      POLL
                  ----

         (a)      EXTRAORDINARY RESOLUTION: On every Extraordinary Resolution,
                  and on every other question submitted to a meeting on which a
                  poll is directed by the chairman or requested by one or more
                  Warrantholders acting in person or by proxy and holding in the
                  aggregate not less than 10% of the total number of Warrants
                  then outstanding, a poll will be taken in such manner as the
                  chairman directs.

         (b)      OTHER: Questions other than those required to be determined by
                  Extraordinary Resolution will be decided by a majority of the
                  votes cast on the poll.

SECTION 8.08      VOTING
                  ------

On a show of hands each person present and entitled to vote, whether as a
Warrantholder or as proxy for one or more absent Warrantholders, or both, will
have one vote, and on a poll each Warrantholder present in person or represented
by a proxy duly appointed by instrument in writing will be entitled to one vote
in respect of each Warrant held by such holder. A proxy need not be a
Warrantholder.

SECTION 8.09      REGULATIONS
                  -----------

         (a)      ABILITY TO MAKE: The Warrant Agent, or the Corporation with
                  the approval of the Warrant Agent, may from time to time make
                  or vary such regulations as it thinks fit:

                  (i)      for the form of instrument appointing a proxy, the
                           manner in which it must be executed and verification
                           of the authority of a person who executes it on
                           behalf of a Warrantholder;

                  (ii)     governing the places at which and the times by which
                           voting certificates or instruments appointing proxies
                           must be deposited;

                  (iii)    generally for the calling of meetings of
                           Warrantholders and the conduct of business thereof;
                           and

                  (iv)     for the deposit of instruments appointing proxies at
                           some approved place or places other than the place at
                           which the meeting is to be held and enabling
                           particulars of such instruments appointing proxies to
                           be sent by mail, telecopier or other means of
                           prepaid, transmitted, recorded communication before
                           the meeting to the Corporation or to the Warrant
                           Agent at the place where the meeting is to be held
                           and for voting pursuant to instruments appointing
                           proxies so deposited as though the instruments
                           themselves were produced at the meeting.

                  Any regulations so made will be binding and effective and the
                  votes given in accordance therewith will be valid and will be
                  counted.

                                       14

<page>

         (b)      RECOGNITION: Except as such regulations provide, the only
                  persons who will be recognized at a meeting as the holders of
                  any Warrants, or as entitled to vote or, subject to section
                  8.10 hereof, to be present at the meeting in respect thereof,
                  will be the registered holders of such Warrants or persons
                  holding proxies on their behalf.

SECTION 8.10      THE CORPORATION AND WARRANT AGENT MAY BE REPRESENTED
                  ----------------------------------------------------

The Corporation and the Warrant Agent by their respective employees, officers or
directors, and the counsel of the Corporation and the Warrant Agent, may attend
any meeting of Warrantholders, but will have no vote as such.

SECTION 8.11      POWERS EXERCISABLE BY EXTRAORDINARY RESOLUTION
                  ----------------------------------------------

In addition to all other powers conferred on them by the other provisions of
this Indenture or by law, the Warrantholders at a meeting will have the power,
exercisable from time to time by Extraordinary Resolution, subject to Toronto
Stock Exchange approval:

         (a)      to assent to or sanction any amendment, modification,
                  abrogation, alteration, compromise or arrangement of any right
                  of the Warrantholders or, with the reasonable consent of the
                  Warrant Agent, of the Warrant Agent in its capacity as agent
                  hereunder or on behalf of the Warrantholders against the
                  Corporation, whether such right arises under this Indenture or
                  otherwise, which shall be agreed to by the Corporation, and to
                  authorize the Warrant Agent to concur in and execute any
                  indenture supplemental hereto in connection therewith;

         (b)      to amend, alter or repeal any Extraordinary Resolution
                  previously passed;
         (c)      subject to arrangements as to financing and indemnity
                  satisfactory to the Warrant Agent, to direct or authorize the
                  Warrant Agent to enforce any obligation of the Corporation
                  under this Indenture or to enforce any right of the
                  Warrantholders in any manner specified in the Extraordinary
                  Resolution;

         (d)      to direct or authorize the Warrant Agent to refrain from
                  enforcing any obligation or right referred to in clause
                  8.11(c) hereof;

         (e)      to waive and direct the Warrant Agent to waive any default by
                  the Corporation in complying with any provision of this
                  Indenture, either unconditionally or on any condition
                  specified in the Extraordinary Resolution;

         (f)      to appoint a committee with power and authority to exercise,
                  and to direct the Warrant Agent to exercise, on behalf of the
                  Warrantholders, such of the powers of the Warrantholders as
                  are exercisable by Extraordinary Resolution;

         (g)      to restrain any Warrantholder from taking or instituting any
                  suit, action or proceeding against the Corporation for the
                  enforcement of any obligation of the Corporation under this
                  Indenture or to enforce any right of the Warrantholders;

                                       15

<page>

         (h)      to direct any Warrantholder who, as such, has brought any
                  suit, action or proceeding, to stay or discontinue or
                  otherwise deal therewith on payment of the costs, charges and
                  expenses reasonably and properly incurred by him in connection
                  therewith;

         (i)      to assent to any change in or omission from the provisions
                  contained in the Warrant Certificates and this Indenture or
                  any ancillary or supplemental instrument which may be agreed
                  to by the Corporation, and to authorize the Warrantholders to
                  concur in and execute any ancillary or supplemental indenture
                  embodying the change or omission;

         (j)      to assent to any compromise or arrangement with any creditor
                  or creditors or any class or classes of creditors, whether
                  secured or otherwise, and with holders of any shares or other
                  securities of the Corporation; and

         (k)      from time to time and at any time to remove the Warrant Agent
                  and appoint a successor, agent or trustee.

SECTION 8.12      MEANING OF "EXTRAORDINARY RESOLUTION"
                  -------------------------------------

         (a)      MEANING: The expression "Extraordinary Resolution" when used
                  in this Indenture means, subject to the provisions of this
                  section and of sections 8.15 and 8.16 hereof, a motion
                  proposed at a meeting of Warrantholders duly convened for that
                  purpose and held in accordance with the provisions of this
                  article eight at which there are present in person or by proxy
                  at least 25% of the Warrantholders holding in the aggregate
                  more than 25% of the total number of Warrants then outstanding
                  and passed by the affirmative votes of Warrantholders who hold
                  in the aggregate not less than 66 2/3% of the total number of
                  Warrants represented at the meeting and voted on the motion.

         (b)      QUORUM: If, at a meeting called for the purpose of passing an
                  Extraordinary Resolution, the quorum required by subsection
                  8.12(a) hereof is not present within 30 minutes after the time
                  appointed for the meeting, the meeting, if convened by
                  Warrantholders or on a Warrantholders' Request, will be
                  dissolved, but in any other case will stand adjourned to such
                  day, being not less than five Business Days or more than ten
                  Business Days later, and to such place and time, as is
                  appointed by the chairman.

         (c)      NOTICE: Not less than three Business Days' notice must be
                  given to the Warrantholders of the time and place of such
                  adjourned meeting.

         (d)      FORM OF NOTICE: The notice must state that at the adjourned
                  meeting the Warrantholders present in person or by proxy will
                  form a quorum but it will not be necessary to set forth the
                  purposes for which the meeting was originally called or any
                  other particulars.

         (e)      QUORUM AT ADJOURNED MEETING: At the adjourned meeting the
                  Warrantholders present in person or by proxy will form a
                  quorum and may transact any business for which the meeting was
                  originally convened, and a motion proposed at such adjourned
                  meeting and passed by the requisite vote as provided in
                  subsection 8.12(a) hereof will be an Extraordinary Resolution
                  within the meaning of this Indenture notwithstanding that
                  Warrantholders holding in the aggregate 25% of the total
                  number of Warrants outstanding may not be present.

                                       16

<page>

         (f)      POLL: Votes on an Extraordinary Resolution must always be
                  given on a poll and no demand for a poll on an Extraordinary
                  Resolution will be necessary.

SECTION 8.13      POWERS CUMULATIVE
                  -----------------

Any one or more of the powers, and any combination of the powers, in this
Indenture stated to be exercisable by the Warrantholders by Extraordinary
Resolution or otherwise, may be exercised from time to time, and the exercise of
any one or more of such powers or any combination of such powers from time to
time will not prevent the Warrantholders from exercising such power or powers or
combination of powers thereafter from time to time.

SECTION 8.14      MINUTES
                  -------

Minutes of all resolutions passed and proceedings taken at every meeting of the
Warrantholders will be made and duly entered in books from time to time provided
for such purpose by the Warrant Agent at the expense of the Corporation, and any
such minutes, if signed by the chairman of the meeting at which such resolutions
were passed or such proceedings were taken, will be prima facie evidence of the
matters therein stated, and, until the contrary is proved, every such meeting in
respect of the proceedings of which minutes have been so made, entered and
signed will be deemed to have been duly convened and held, and all resolutions
passed and proceedings taken thereat to have been duly passed and taken.

SECTION 8.15      INSTRUMENTS IN WRITING
                  ----------------------

Any action that may be taken and any power that may be exercised by
Warrantholders at a meeting held as provided in this Article Eight may also be
taken and exercised by Warrantholders who hold in the aggregate not less than
50% of the total number of Warrants at the time outstanding or in the case of an
Extraordinary Resolution, Warrantholders who hold in the aggregate not less than
66 2/3% of the total number of Warrants at the time outstanding, by their
signing, each in person or by attorney duly appointed in writing, an instrument
in writing in one or more counterparts, and the expression "Extraordinary
Resolution" when used in this Indenture includes a resolution embodied in an
instrument so signed.

SECTION 8.16      BINDING EFFECT OF RESOLUTIONS
                  -----------------------------

Every resolution and every Extraordinary Resolution passed in accordance with
the provisions of this Article Eight at a meeting of Warrantholders will be
binding on all Warrantholders, whether present at or absent from the meeting and
whether voting for or against the resolution or abstaining, and every instrument
in writing signed by Warrantholders in accordance with section 8.15 hereof will
be binding on all Warrantholders, whether signatories thereto or not, and every
Warrantholder and the Warrant Agent (subject to the provisions for its indemnity
herein contained) will be bound to give effect accordingly to every such
resolution and instrument in writing.

                                       17

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SECTION 8.17      HOLDINGS BY THE CORPORATION AND SUBSIDIARIES DISREGARDED
                  --------------------------------------------------------

In determining whether Warrantholders holding the required total number of
Warrants are present in person or by proxy for the purpose of constituting a
quorum, or have voted or consented to a resolution, Extraordinary Resolution,
consent, waiver, Warrantholders' Request or other action under this Indenture, a
Warrant held by the Corporation or by a Subsidiary of the Corporation will be
deemed to be not outstanding. The Corporation shall provide the Warrant Agent
with a certificate of the Corporation providing details of any Warrants held by
the Corporation or by a Subsidiary of the Corporation upon the written request
of the Warrant Agent.

                                  ARTICLE NINE
                             SUPPLEMENTAL INDENTURES

SECTION 9.01      PROVISION FOR SUPPLEMENTAL INDENTURES FOR CERTAIN PURPOSES:
                  -----------------------------------------------------------

From time to time the Corporation (when authorized by action by the Directors)
and the Warrant Agent may, subject to the provisions of this Indenture and
subject to approval of the Toronto Stock Exchange, if required, and they shall,
when so directed by the provisions of this Indenture, execute and deliver by
their proper officers, indentures or instruments supplemental hereto, which
thereafter shall form part hereof, for any one or more or all of the following
purposes:

         (a)      increasing the number of Warrants (and the number of Common
                  Shares issuable upon the exercise of Warrants) which the
                  Corporation is authorized to issue under this Indenture and
                  any consequential amendment thereto as may be required by the
                  Warrant Agent acting on the advice of counsel;

         (b)      making such changes to the provisions hereof and of the
                  Warrant Certificates as may be necessary or desirable in the
                  opinion of counsel in connection with the listing of the
                  Warrants on any stock exchange or quotation system;

         (c)      adding to the provisions hereof such additional covenants and
                  enforcement provisions as, in the opinion of counsel, are
                  necessary or advisable in the premises, provided that the same
                  are not, in the opinion of the Warrant Agent, based on the
                  advice of counsel, prejudicial to the interests of the
                  Warrantholders;

         (d)      making such provisions not inconsistent with this Indenture
                  as, in the opinion of counsel, may be necessary or desirable
                  with respect to matters or questions arising hereunder,
                  provided that such provisions are not, in the opinion of the
                  Warrant Agent and on the advice of counsel, prejudicial to the
                  interests of the Warrantholders;

         (e)      adding to or altering the provisions hereof in respect of the
                  transfer of Warrants, making provision for the exchange of
                  Warrant Certificates, or making any modification in the form
                  of the Warrant Certificates which does not affect the
                  substance thereof;

         (f)      modifying any of the provisions of this Indenture or relieving
                  the Corporation from any of the obligations, conditions or
                  restrictions herein contained, provided that in the opinion of
                  counsel no such modification or relief shall be or become
                  operative or effective in such manner as to impair any of the
                  rights of the Warrantholders or of the Warrant Agent and
                  provided further that the Warrant Agent may in its sole
                  discretion decline to enter into any such supplemental
                  indenture which in its opinion may not afford adequate
                  protection to the Warrant Agent when the same shall become
                  operative; or

                                       18

<page>

         (g)      any other purpose not inconsistent with the terms of this
                  Indenture, including the correction or rectification of any
                  ambiguities, defective provisions, errors or omissions herein,
                  provided that, in the opinion of the Warrant Agent and on the
                  advice of counsel, the rights of the Warrant Agent and of the
                  Warrantholders are in no way prejudiced thereby.

         (h)      giving effect to any Extraordinary Resolution passed as
                  provided in Article 8.

SECTION 9.02      SUCCESSOR CORPORATION:
                  ----------------------

In the case of a consolidation, amalgamation, arrangement, merger, separation or
transfer of the undertaking or assets of the Corporation as an entirety or
substantially as an entirety, the successor entity resulting from such
consolidation, amalgamation, arrangement, merger, separation or transfer (if not
the Corporation) shall expressly assume, by supplemental indenture satisfactory
in form to the Warrant Agent and executed and delivered to the Warrant Agent,
the performance and observance of each and every covenant and obligation
contained in this Indenture to be performed by the Corporation, as the case may
be. Without limiting the generality of the foregoing, the continuing entity
resulting from such consolidation, amalgamation, arrangement, merger, separation
or transfer shall be deemed to be a successor entity for purposes of this
Indenture.

                                   ARTICLE TEN
                          CONCERNING THE WARRANT AGENT

SECTION 10.01     TRUST INDENTURE LEGISLATION:
                  ----------------------------

Subject to section 1.05:

         (a)      MANDATORY REQUIREMENTS: If and to the extent that any
                  provision of this Indenture limits, qualifies or conflicts
                  with a mandatory requirement of Applicable Legislation, such
                  mandatory requirement shall prevail.

         (b)      APPLICABLE LEGISLATION: The Corporation and the Warrant Agent
                  agree that each of them will at all times in relation to this
                  Indenture and any action to be taken hereunder observe and
                  comply with, and be entitled to the benefits of, Applicable
                  Legislation.

SECTION 10.02     RIGHTS AND DUTIES OF WARRANT AGENT:
                  -----------------------------------

         (a)      DEGREE OF SKILL: In the exercise of the rights and duties
                  prescribed or conferred by the terms of this Indenture, the
                  Warrant Agent shall act honestly and in good faith with a view
                  to the best interests of the Warrantholders and shall exercise
                  that degree of care, diligence and skill that a reasonably
                  prudent warrant agent would exercise in comparable
                  circumstances. No provision of this Indenture shall be
                  construed to relieve the Warrant Agent from liability for its
                  own negligent action, its own gross negligence, or fraud.

                                       19

<page>

         (b)      SUPREMACY OF APPLICABLE LEGISLATION: Subject to section 1.05,
                  every provision of this Indenture that by its terms relieves
                  the Warrant Agent of liability or entitles it to rely upon any
                  evidence submitted to it is subject to the provisions of
                  Applicable Legislation and of this article ten.

         (c)      The obligation of the Warrant Agent to commence or continue
                  any act, action or proceeding for the purpose of enforcing any
                  rights of the Warrant Agent or the Warrantholders under this
                  Indenture will be conditional upon the Warrantholders
                  furnishing, when required by notice in writing by the Warrant
                  Agent, sufficient funds to commence or continue such act,
                  action or proceeding and an indemnity reasonably satisfactory
                  to the Warrant Agent to protect and hold harmless the Warrant
                  Agent against the costs, charges and expenses and liabilities
                  to be incurred thereby and any loss and damage it may suffer
                  by reason thereof.

         (d)      No provision of this Indenture will require the Warrant Agent
                  to expend or risk its own funds or otherwise incur financial
                  liability in the performance of any of its duties or in the
                  exercise of any of its rights or powers unless indemnified and
                  funded as provided in subsection 10.02 (c ).

         (e)      The Warrant Agent may, before commencing or at any time during
                  the continuance of any such act, action or proceeding, require
                  the Warrantholders at whose instance it is acting to deposit
                  with the Warrant Agent the Warrant Certificates held by them,
                  for which Warrant Certificates the Warrant Agent will issue
                  receipts.

SECTION 10.03     EVIDENCE:
                 ---------

         (a)      ENTITLEMENT TO RELY ON EVIDENCE: Whenever it is provided in
                  this Indenture that the Corporation shall deposit with the
                  Warrant Agent resolutions, certificates, reports, opinions,
                  requests, orders or other documents, it is intended that the
                  truth, accuracy and good faith on the effective date thereof
                  of the facts and opinions stated in all documents so deposited
                  shall, in each and every such case, be conditions precedent to
                  the right of the Corporation to have the Warrant Agent take
                  the action to be based thereon. The Warrant Agent may rely and
                  shall be protected in acting upon any such documents deposited
                  with it in purported compliance with any such provision or for
                  any other purpose hereof, but may, in its discretion, require
                  further evidence before acting or relying thereon. The Warrant
                  Agent may also rely and shall be protected in acting upon any
                  resolution, certificate, statement, instrument, opinion,
                  report, notice, request, consent, order, letter, telegram,
                  cablegram or other paper or document not only as to its due
                  execution and the validity and the effectiveness of its
                  provisions, but also as to the truth and acceptability of any
                  information therein contained which it in good faith believes
                  to be genuine and what it purports to be, without the need for
                  independent investigation.

         (b)      ADDITIONAL EVIDENCE: In addition to the reports, certificates,
                  opinions and other evidence required by this Indenture, the
                  Corporation shall furnish to the Warrant Agent such additional
                  evidence of compliance with any provision hereof, and in such
                  form, as may be prescribed by Applicable Legislation or as the
                  Warrant Agent may reasonably require by written notice to the
                  Corporation.

                                       20

<page>

         (c)      STATUTORY DECLARATIONS: Whenever Applicable Legislation
                  requires that evidence referred to in subsection 9.03(a)
                  hereof be in the form of a statutory declaration, the Warrant
                  Agent may accept such statutory declaration in lieu of a
                  certificate signed in the name of the Corporation by its
                  President, a Vice-President or a Director and, in addition, by
                  its Secretary or a Director. Any such statutory declaration
                  may be made by one or more of the President, any
                  Vice-President, the Chief Financial Officer, the Secretary,
                  the Treasurer, any Assistant Secretary or any Assistant
                  Treasurer of the Corporation.

         (d)      PROOF OF EXECUTION: Proof of execution of an instrument in
                  writing by any Warrantholder may be made by the certificate of
                  a notary public, or other officer with similar powers, that
                  the person signing such instrument acknowledged to him the
                  execution thereof, or by an affidavit of a witness to such
                  execution or in any other manner which the Warrant Agent may
                  consider adequate.

SECTION 10.04     EXPERTS AND ADVISERS:
                  ---------------------

The Warrant Agent may employ or retain, at the expense of the Corporation, such
counsel, accountants or other experts or advisers as it may reasonably require,
for the purpose of determining and discharging its duties hereunder, may pay
reasonable remuneration for all services performed by any of them without
taxation of any costs of any counsel and shall not be responsible for any
misconduct on the part of any of them. The Warrant Agent may act and shall be
protected in acting in good faith on the opinion or advice of or information
obtained from any counsel, accountant or other expert or adviser, whether
retained or employed by the Corporation or by the Warrant Agent, in relation to
any matter arising in relation to this Indenture.

SECTION 10.05     WARRANT AGENT NOT REQUIRED TO GIVE SECURITY:
                  --------------------------------------------

The Warrant Agent shall not be required to give any bond or security in respect
of the execution of the duties, obligations and powers of this Indenture or
otherwise in respect of these premises.

SECTION 10.06     PROTECTION OF WARRANT AGENT:
                  ----------------------------

         (a)      PROTECTION: By way of supplement to the provisions of any law
                  for the time being relating to warrant agents, it is expressly
                  declared and agreed as follows:

                  (i)      the Warrant Agent shall not be liable for, or by
                           reason of, any statement of fact or recital in this
                           Indenture or in the Warrant Certificates (except the
                           representation contained in section 9.08 hereof and
                           in the countersignature of the Warrant Agent on the
                           Warrant Certificates) or required to verify the same,
                           but all such statements or recitals are, and shall be
                           deemed to be made by, the Corporation;

                  (ii)     the Warrant Agent shall not be bound to give notice
                           to any person or persons of the execution hereof;

                  (iii)    the Warrant Agent shall not incur any liability or
                           responsibility whatever or be in any way responsible
                           for the consequence of any breach on the part of the
                           Corporation of any of the representations, warranties
                           or covenants herein contained or of any acts of
                           Directors, officers, employees, agents or servants of
                           the Corporation;

                                       21

<page>

                  (iv)     the Warrant Agent, in its personal or any other
                           capacity, may buy, lend upon and deal in shares of
                           the Corporation and in the Warrant Certificates and
                           generally may contract and enter into financial
                           transactions with the Corporation or any corporation
                           related to the Corporation without being liable to
                           account for any profit made thereby;

                  (v)      nothing herein contained shall impose any obligation
                           on the Warrant Agent to see to or to require evidence
                           of the registration or filing (or renewal thereof) of
                           this Indenture or any instrument ancillary or
                           supplemental hereto;

                  (vi)     the Warrant Agent is not at any time under any duty
                           or responsibility to a Warrantholder to determine
                           whether any facts exist which require any adjustment
                           contemplated by Section 4, 5, 6 of Schedule A, or
                           with respect to the nature or extent of any such
                           adjustment when made, or with respect to the method
                           employed in making the same;

                  (vii)    the Warrant Agent is not accountable with respect to
                           the validity or value (or the kind or amount) of any
                           shares or other securities or property which may at
                           any time be issued or delivered upon the exercise of
                           the rights attaching to any Warrant;

                  (viii)   The Warrant Agent will retain the right not to act
                           and will not be held liable for refusing to act
                           unless it has received clear and reasonable
                           documentation which complies with the terms of this
                           Indenture. Such documentation must not require the
                           exercise of any discretion or independent judgment;

                  (ix)     The Warrant Agent is not a party to, nor is bound by,
                           any provisions which may be evidenced by, or arise
                           out of, any agreement other than as therein set forth
                           under the express provisions of this Indenture;

                  (x)      The Warrant Agent shall not be required to take
                           notice of any default or to take any action with
                           respect to such default involving any expense or
                           liability, unless notice in writing of such default
                           is formally given to The Manager, Corporate Trust
                           Department, of the Warrant Agent and unless it is
                           indemnified and funded, in a manner satisfactory to
                           it, against such expense or liability;

                  (xi)     The Warrant Agent shall not be under any obligation
                           to prosecute or to defend any action or suit in
                           respect of the relationship which, in the opinion of
                           its counsel, may involve it in expense or liability,
                           unless the parties hereto shall, so often as
                           required, furnish the Warrant Agent with satisfactory
                           indemnity and funding against such expense or
                           liability;

                  (xii)    None of the provisions contained in this Indenture
                           shall require the Warrant Agent to expend or risk its
                           own funds or otherwise to incur financial liability
                           in the performance of any duties or in the exercise
                           of any rights or powers unless indemnified as
                           aforesaid; and

                  (xiii)   The Warrant Agent is not responsible for any failure
                           of the Corporation to make any cash payment or any
                           failure of the Corporation to provide instructions
                           with respect to the issuance, transfer or delivery of
                           Warrant Shares or certificates for the same, upon
                           surrender of any Warrants for the purpose of the
                           exercise of such rights or to comply with any of the
                           covenants contained in this Article 10.

                                       22

<page>

         (b)      INDEMNITY: In addition to and without limiting any protection
                  of the Warrant Agent hereunder or otherwise by law, the
                  Corporation agrees to indemnify the Warrant Agent, its
                  directors, officers, employees and agents, and all of their
                  respective representatives, heirs, successors and assigns
                  (collectively the "Indemnified Parties") and save them
                  harmless from all liabilities, suits, damages, costs, expenses
                  and actions, including legal or advisors' fees and
                  disbursements, which may be incurred or brought against or
                  suffered by the Indemnified Parties arising out of or
                  connected with performance by the Warrant Agent of its duties
                  hereunder except to the extent that such liabilities, suits,
                  damages, costs and actions are attributable to the gross
                  negligence or fraud of the Warrant Agent. Notwithstanding any
                  other provision hereof, this indemnity shall survive any
                  removal or resignation of the Warrant Agent, discharge of this
                  Indenture and termination of this Indenture.

SECTION 10.07     REPLACEMENT OF WARRANT AGENT, SUCCESSOR BY MERGER:
                  --------------------------------------------------

         (a)      RESIGNATION: The Warrant Agent may resign its duties and
                  obligations and be discharged from all further duties and
                  liabilities hereunder, subject to this subsection 9.07(a), by
                  giving to the Corporation not less than 60 days' prior notice
                  in writing or such shorter prior notice as the Corporation may
                  accept as sufficient. The Corporation shall have power at any
                  time to remove the Warrant Agent and to appoint a new warrant
                  agent. In the event of the Warrant Agent resigning or being
                  removed as aforesaid or being dissolved, becoming bankrupt,
                  going into liquidation or otherwise becoming incapable of
                  acting hereunder, the Corporation shall forthwith appoint a
                  new warrant agent; failing such appointment by the
                  Corporation, the retiring Warrant Agent may apply to a judge
                  of the Ontario Court of Justice (General Division), on such
                  notice as such judge may direct for the appointment of a new
                  warrant agent; provided that any new Warrant Agent so
                  appointed by the Corporation or by the Court shall be subject
                  to removal as aforesaid by the Corporation. Any new warrant
                  agent appointed under this subsection 9.07(a) shall be a
                  corporation authorized to carry on the business of a trust
                  company or transfer agent in the Province of Ontario and, if
                  required by Applicable Legislation of any other province in
                  Canada, in such other provinces. On any such appointment the
                  new warrant agent shall be vested with the same powers,
                  rights, duties and responsibilities as if it had been
                  originally named herein as Warrant Agent without any further
                  assurance, conveyance, act or deed, but there shall be
                  immediately executed, all such conveyances or other
                  instruments as may, in the opinion of counsel, be necessary or
                  advisable for the purpose of assuring the same to the new
                  warrant agent, provided that, following any resignation or
                  removal of the Warrant Agent and appointment of a successor
                  warrant agent, the successor warrant agent shall have executed
                  an appropriate instrument accepting such appointment and, at
                  the request of the Corporation, and upon payment of any
                  outstanding fees, the predecessor Warrant Agent shall execute
                  and deliver to the successor warrant agent an appropriate
                  instrument transferring to such successor warrant agent all
                  rights and powers of the Warrant Agent hereunder so ceasing to
                  act.

                                       23

<page>

         (b)      NOTICE OF SUCCESSOR: Upon the appointment of a successor
                  warrant agent, the Corporation shall promptly notify the
                  Warrantholders thereof in the manner provided for in article
                  twelve hereof.

         (c)      NO FURTHER ACT FOR MERGER: Any corporation into or with which
                  the Warrant Agent may be merged or consolidated or
                  amalgamated, or any corporation resulting therefrom, or any
                  corporation succeeding to the trust or transfer agency
                  business of the Warrant Agent shall be the successor to the
                  Warrant Agent hereunder without any further act on its part or
                  any of the parties hereto, provided that such corporation
                  would be eligible for appointment as a successor warrant agent
                  under subsection 9.07(a) hereof.

         (d)      CERTIFICATION: Any Warrant Certificate countersigned but not
                  delivered by a predecessor Warrant Agent may be delivered by
                  the successor warrant agent in the name of the predecessor or
                  successor warrant agent.

SECTION 10.08     CONFLICT OF INTEREST:
                  ---------------------

The Warrant Agent represents to the Corporation that at the time of the
execution and delivery hereof no material conflict of interest exists in the
Warrant Agent's role as a fiduciary hereunder and agrees that in the event of a
material conflict of interest arising hereafter it will, within 90 days after
ascertaining that it has such material conflict of interest, either eliminate
the same or assign its duties and obligations hereunder to a successor warrant
agent approved by the Corporation and meeting the requirements set forth in
subsection 9.07(a) hereof.

SECTION 10.09     ACCEPTANCE OF DUTIES AND OBLIGATIONS:
                  -------------------------------------

The Warrant Agent hereby accepts the duties and obligations in this Indenture
declared and provided for and agrees to perform the same upon the terms and
conditions hereinbefore set forth unless and until discharged therefrom.

SECTION 10.10     ACTIONS BY WARRANT AGENT TO PROTECT INTEREST:
                  ---------------------------------------------

The Warrant Agent shall have power to institute and to maintain such actions and
proceedings as it may consider necessary or expedient to preserve, protect or
enforce its interest and the interests of the Warrantholders.

SECTION 10.11     DOCUMENTS, MONEYS, ETC. HELD BY WARRANT AGENT:
                  ----------------------------------------------

Any securities, documents of title or other instruments that may at any time be
held by the Warrant Agent subject to the duties and obligations hereof may be
placed in the deposit vaults of the Warrant Agent or of any bank listed in
Schedule I of the BANK ACT (Canada), as amended, or deposited for safekeeping
with any such bank. Unless herein otherwise expressly provided, any moneys so
held pending the application or withdrawal thereof under any provisions of this
Indenture, may be deposited in the name of the Warrant Agent in any such bank at
the rate of interest, if any, then current on similar deposits or, with the
consent of the Corporation, may be deposited in the deposit department of the
Warrant Agent or any other loan or trust company or chartered bank authorized to
accept deposits under the laws of Canada or a province thereof. All interest or
other income received by the Warrant Agent in respect of such deposits and
investments shall belong to the Corporation.

                                       24

<page>

SECTION 10.12     WARRANT AGENT NOT TO BE APPOINTED RECEIVER:
                  -------------------------------------------

The Warrant Agent and any person related to the Warrant Agent shall not be
appointed a receiver or receiver and manager or liquidator of all or any part of
the assets or undertaking of the Corporation.

                                 ARTICLE ELEVEN
                            NOTICE TO WARRANTHOLDERS

SECTION 11.01     NOTICE:
                  -------

         (a)      NOTICE: Unless herein otherwise expressly provided, a notice
                  to be given hereunder to Warrantholders will be deemed to be
                  validly given if the notice is sent by ordinary surface or air
                  mail, postage prepaid, addressed to the Warrantholders or
                  delivered (or so mailed to certain Warrantholders and so
                  delivered to the other Warrantholders) at their respective
                  addresses appearing on the registers of holders described in
                  section 2.06 hereof, provided, however, that if, by reason of
                  a strike, lockout or other work stoppage, actual or
                  threatened, involving Canadian or U.S. postal employees, the
                  notice could reasonably be considered unlikely to reach or
                  likely to be delayed in reaching its destination, the notice
                  will be valid and effective only if it is so delivered or is
                  given by publication twice in the Report on Business section
                  in the national editions of The Globe and Mail and the Wall
                  Street Journal newspapers.

         (b)      DATE OF NOTICE: A notice so given by mail or so delivered will
                  be deemed to have been given on the first Business Day after
                  it has been mailed or on the day on which it has been
                  delivered, as the case may be, and a notice so given by
                  publication will be deemed to have been given on the second
                  day on which it has been published as required. In determining
                  under any provision hereof the date when notice of a meeting
                  or other event must be given, the date of giving notice will
                  be included and the date of the meeting or other event will be
                  excluded. Accidental failure or omission in giving notice or
                  accidental failure to mail notice to any Warrantholder will
                  not invalidate any action or proceeding founded thereon.

                                 ARTICLE TWELVE
                                     GENERAL

SECTION 12.01     NOTICE TO THE CORPORATION AND THE WARRANT AGENT:
                  ------------------------------------------------

         (a)      NOTICES: Unless herein otherwise expressly provided, any
                  notice to be given hereunder to the Corporation or to the
                  Warrant Agent shall be deemed to be validly given if delivered
                  by prepaid courier, if transmitted by telecopier if sent by
                  registered mail, postage prepaid:

              (i) to the Corporation:

                           Pacific Energy Resources Ltd.
                           111 West Ocean Boulevard, Suite 1240
                           Long Beach, California, USA    90802

                           Attention:   Darren Katic, President
                           Fax:         (562) 628-1526

                                       25

<page>

                           with a copy to (with such delivery or sending not to
                           be a delivery or sending to the Corporation for
                           purposes of this Indenture):

                           Rutan & Tucker, LLP
                           611 Anton Boulevard, 14th Floor
                           Costa Mesa, California, USA  92626

                           Attention:   James B. O'Neal
                           Fax:         (714) 546-9035

                           and to:

                           Devlin Jensen
                           2550 - 555 West Hastings Street
                           Vancouver, BC, Canada  V6B 4N5

                           Attention:   Kathleen MacInnes
                           Fax:         (604) 684-0916

              (ii) to the Warrant Agent:
                           Computershare Trust Company of Canada Suite 600, 530
                           - 8th Avenue SW Calgary, AB, Canada T2P 3S8

                           Attention:   Manager, Corporate Trust
                           Fax:         (403) 267-6598

                  and any such notice delivered or transmitted in accordance
                  with the foregoing shall be deemed to have been received on
                  the date of delivery or transmission or, if mailed, on the
                  third Business Day following the date of the postmark on such
                  notice. The original of any notice sent by facsimile
                  transmission to the Warrant Agent shall be subsequently mailed
                  to the Warrant Agent.

         (b)      CHANGE OF ADDRESS: The Corporation or the Warrant Agent may
                  from time to time notify the other in the manner provided in
                  subsection 12.01(a) hereof of a change of address which, from
                  the effective date of such notice and until changed by like
                  notice, shall be the address of the Corporation or the Warrant
                  Agent, as the case may be, for all purposes of this Indenture.

         (c)      POSTAL DISRUPTION: If, by reason of a strike, lockout or other
                  work stoppage, actual or threatened, involving postal
                  employees, any notice to be given to the Warrant Agent or to
                  the Corporation hereunder could reasonably be considered
                  unlikely to reach its destination, such notice shall be valid
                  and effective only if it is delivered by prepaid courier or
                  transmitted by telecopier, such notice to be deemed to have
                  been received on the date of delivery or transmission.

                                       26

<page>

SECTION 12.02     NOT BOUND TO ACT
-------------     ----------------

The Warrant Agent shall retain the right not to act and shall not be liable for
refusing to act if, due to a lack of information or for any other reason
whatsoever, the Warrant Agent, in its sole judgment, determines that such act
might cause it to be in non-compliance with any applicable anti-money laundering
or anti-terrorist legislation, regulation or guideline. Further, should the
Warrant Agent, in its sole judgment, determine at any time that its acting under
this Indenture has resulted in its being in non-compliance with any applicable
anti-money laundering or anti-terrorist legislation, regulation or guideline,
then it shall have the right to resign on 10 business days written notice to the
Corporation, provided (i) that the Warrant Agent's written notice shall describe
the circumstances of such non-compliance; and (ii) that if such circumstances
are rectified to the Warrant Agent's satisfaction within such 10 business day
period, then such resignation shall not be effective.

SECTION 12.03     THIRD PARTY INTERESTS:
                  ----------------------

Each party to this Indenture hereby represents to the Warrant Agent that any
account to be opened by, or interest to held by the Warrant Agent in connection
with this Indenture, for or to the credit of such party, either (i) is not
intended to be used by or on behalf of any third party; or (ii) is intended to
be used by or on behalf of a third party, in which case such party hereto agrees
to complete and execute forthwith a declaration in the Warrant Agent's
prescribed form as to the particulars of such third party

SECTION 12.04     PRIVACY:
                  --------

The parties acknowledge that federal and/or provincial or state legislation that
addresses the protection of individuals' personal information (collectively,
"PRIVACY LAWS") applies to obligations and activities under this Indenture.
Despite any other provision of this Indenture, neither party shall take or
direct any action that would contravene, or cause the other to contravene,
applicable Privacy Laws. The Corporation shall, prior to transferring or causing
to be transferred personal information to the Warrant Agent, obtain and retain
required consents of the relevant individuals to the collection, use and
disclosure of their personal information, or shall have determined that such
consents either have previously been given upon which the parties can rely or
are not required under the Privacy Laws. The Warrant Agent shall use
commercially reasonable efforts to ensure that its services hereunder comply
with Privacy Laws. Specifically, the Warrant Agent agrees: (a) to have a
designated chief privacy officer; (b) to maintain policies and procedures to
protect personal information and to receive and respond to any privacy complaint
or inquiry; (c) to use personal information solely for the purposes of providing
its services under or ancillary to this Indenture and not to use it for any
other purpose except with the consent of or direction from the Corporation or
the individual involved; (d) not to sell or otherwise improperly disclose
personal information to any third party; and (e) to employ administrative,
physical and technological safeguards to reasonably secure and protect personal
information against loss, theft or unauthorized access, use or modification.

                                       27

<page>

SECTION 12.05     TIME OF THE ESSENCE:
                  --------------------

Time shall be of the essence of this Indenture.

SECTION 12.06     COUNTERPARTS:
                  -------------

This Indenture may be executed in several counterparts, each of which when so
executed when delivered, either in original, electronic or facsimile form, will
be deemed to be an original and such counterparts together will constitute one
and the same instrument and notwithstanding the date of their execution will be
deemed to be dated as of this indenture.

SECTION 12.07     SATISFACTION AND DISCHARGE OF INDENTURE:
                  ----------------------------------------

Upon all Common Shares required to be issued in respect of Warrant Certificates
delivered to the Warrant Agent prior to the Expiry Date having been issued, this
Indenture shall cease to be of further force or effect and the Warrant Agent, on
demand of and at the cost and expense of the Corporation and upon delivery to
the Warrant Agent of a certificate of the President, Chief Executive Officer, or
any Vice-President of the Corporation stating that all conditions precedent to
the satisfaction and discharge of this Indenture have been complied with, shall
execute proper instruments acknowledging satisfaction of and discharging this
Indenture.

SECTION 12.08     PROVISIONS OF INDENTURE AND WARRANT CERTIFICATE FOR THE SOLE
                  ------------------------------------------------------------
                  BENEFIT OF PARTIES AND WARRANTHOLDERS:
                  --------------------------------------

Nothing in this Indenture or the Warrant Certificates, expressed or implied,
shall give or be construed to give to any person other than the parties hereto
and the holders of the Warrant Certificates, as the case may be, any legal or
equitable right, remedy or claim under this Indenture or the Warrant
Certificates, or under any covenant or provision therein contained, all such
covenants and provisions being for the sole benefit of the parties hereto and
the Warrantholders.

                   REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SECTION 12.09     STOCK EXCHANGE CONSENTS:
                  ------------------------

Any action provided for in this Indenture requiring the prior consent of any
stock exchange or quotation system upon which the Common Shares or Warrants may
be listed or quoted shall not be completed until the requisite consent is
obtained. The Warrant Agent shall have no obligation to ensure or verify that
any such prior consent has been obtained and shall be able to rely on an opinion
of Corporation's counsel.

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

                                          PACIFIC ENERGY RESOURCES LTD.
                                          BY:

                                          /S/ Kathleen Maninnes
                                          --------------------------------------
                                          Kathleen MacInnes
                                          Secretary

                                          COMPUTERSHARE TRUST COMPANY OF CANADA

                                          By: /s/ [ILLEGIBLE]
                                             ----------------------------------

                                          By: /s/ [ILLEGIBLE]
                                             ----------------------------------

                                       28<PAGE>

EXHIBIT 4.25

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE BEEN ISSUED PURSUANT TO
REGULATION S PROMULGATED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT"). AS SUCH, THE SECURITIES REPRESENTED BY THIS WARRANT ARE "RESTRICTED
SECURITIES" AND MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, ASSIGNED,
PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED OF OTHER THAN (I)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SHARES REPRESENTED BY
THIS WARRANT UNDER THE ACT, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE ACT, (III) PURSUANT TO RULE
144 UNDER THE ACT, OR (IV) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE ACT. THE HOLDER HEREOF AGREES THAT (A) ANY
HEDGING TRANSACTION WITH RESPECT TO THE SECURITIES REPRESENTED BY THIS WARRANT
WILL BE CONDUCTED IN COMPLIANCE WITH THE ACT AND (B) IT WILL DELIVER, OR CAUSE
TO BE DELIVERED, TO EACH PERSON TO WHOM THE SECURITIES REPRESENTED BY THIS
WARRANT ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. AS
USED HEREIN, THE TERMS "OFFSHORE TRANSACTION" AND "UNITED STATES" HAVE THE
RESPECTIVE MEANINGS ASSIGNED TO THEM IN REGULATION S UNDER THE ACT.

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST
NOT TRADE THE SECURITY BEFORE FEBRUARY 19, 2008.

          Right to Purchase up to ___________ Shares of Common Stock of

                          PACIFIC ENERGY RESOURCES LTD.

                   (subject to adjustment as provided herein)

                          COMMON STOCK PURCHASE WARRANT

                                                          NUMBER OF WARRANTS:[*]
Certificate No. ____                                Issue Date: October 18, 2007

                 VOID AFTER 5:00 P.M. LOCAL TIME, APRIL 18, 2009

         PACIFIC ENERGY RESOURCES LTD., a corporation organized under the laws
of the State of Delaware (the "CORPORATION"), hereby certifies that, for value
received, __________________ or its assigns (the "HOLDER"), is entitled, subject
to the terms set forth below, to purchase from the Corporation (as defined
herein) from and after the Issue Date of this Common Stock Purchase Warrant
("WARRANT") and at any time or from time to time before 5:00 p.m. local time
through the close of business on April 18, 2009 (the "EXPIRATION DATE"), up to
______________________ fully paid and nonassessable shares of Common Stock (as

<page>

hereinafter defined), at the applicable Exercise Price (as defined below) per
share. The number and character of such shares of Common Stock and the
applicable Exercise Price per share are subject to adjustment as provided
herein.

         As used herein the following terms, unless the context otherwise
requires, have the following respective meanings:

                  (a) The term "COMMON STOCK" includes (i) the Corporation's
         common stock, par value $0.0001 per share; and (ii) any other
         securities into which or for which any of the securities described in
         the preceding clause (i) may be converted or exchanged pursuant to a
         plan of recapitalization, reorganization, merger, sale of assets or
         otherwise.

                  (b) The term "CORPORATION" includes Pacific Energy Resources
         Ltd. and any corporation which shall succeed to, or assume the
         obligations of, Pacific Energy Resources Ltd. hereunder.

                  (c) The term "EXCHANGE RATE" means, in relation to any amount
         of currency to be converted into U.S. dollars pursuant to this Warrant,
         the U.S. dollar exchange rate as published in the Wall Street Journal
         from time to time.

                  (d) The "EXERCISE PRICE" applicable under this Warrant shall
         be CAD $2.65 per Common Share (subject to adjustment pursuant to
         SECTION 5).

                  (e) The term "OTHER SECURITIES" refers to any stock (other
         than Common Stock) and other securities of the Corporation or any other
         person (corporate or otherwise) which the holder of the Warrant at any
         time shall be entitled to receive, or shall have received, on the
         exercise of the Warrant, in lieu of or in addition to Common Stock, or
         which at any time shall be issuable or shall have been issued in
         exchange for or in replacement of Common Stock or Other Securities
         pursuant to SECTION 4 or otherwise.

                  (f) The term "SUBSCRIPTION AGREEMENT" means the Subscription
         Agreement for Units between the Corporation and the Holder, duly
         accepted by the Corporation.

                  (g) The term "WARRANT AGENT" means Computershare Trust Company
         of Canada, or such other warrant agent as may be appointed by the
         Corporation pursuant to the Warrant Indenture.

                  (h) The term "WARRANT INDENTURE" means the warrant indenture,
         together with all other instruments supplemental or ancillary thereto,
         dated as of October 18, 2007 between the Corporation and the Warrant
         Agent.

         All other defined terms have the meaning attributed to them in the
Subscription Agreement.

1.       EXERCISE OF WARRANT.
         --------------------

         1.1 NUMBER OF SHARES ISSUABLE UPON EXERCISE. From and after the date
hereof through and including the Expiration Date, the Holder shall be entitled
to receive, upon exercise of this Warrant in whole or in part, by delivery to
the Corporation of this Warrant Certificate, an original copy of an exercise
notice in the form attached hereto as EXHIBIT A (the "SUBSCRIPTION FORM") duly
completed and executed and the satisfaction of the surrender and payment
requirements of SECTION 2, the number of shares of Common Stock of the
Corporation set forth in the Subscription Form, subject to adjustment pursuant
to SECTION 5.

                                      -2-

<page>

         1.2 FAIR MARKET VALUE. For purposes hereof, the "FAIR MARKET VALUE" of
a share of Common Stock as of a particular date (the "DETERMINATION DATE") shall
mean:

                  (a) If the Corporation's Common Stock is traded or the Toronto
         Stock Exchange ("TSX"), then the average of the U.S. dollar equivalent
         (calculated at the prevailing Exchange Rate on each day) of the closing
         or last sale price reported for the twenty (20) trading days
         immediately preceding the Determination Date.

                  (b) If the Corporation's Common Stock is not traded on the TSX
         but is traded on the Nasdaq Global Select Market, Global Market or
         Capital Stock Market (collectively, "NASDAQ"), the American Stock
         Exchange ("AMEX") or another national exchange, the average of the
         closing or last sale price reported for the twenty (20) trading days
         immediately preceding the Determination Date.

                  (c) If the Corporation's Common Stock is not traded on the
         TSX, Nasdaq or AMEX, but is quoted on the NASD OTC Bulletin Board, then
         the mean of (i) the average of the closing bid price and (ii) the
         average of the closing ask price, in each case reported for the twenty
         (20) trading days immediately preceding the Determination Date.

                  (d) If the Corporation's Common Stock is not publicly traded,
         then as the Holder and the Corporation agree or in the absence of
         agreement by arbitration in accordance with the rules then in effect of
         the American Arbitration Association before a single arbitrator to be
         chosen from a panel of persons qualified by education and training to
         pass on the matter to be decided.

         1.3 CORPORATION ACKNOWLEDGMENT. The Corporation will, at the time of
the exercise of the Warrant, upon the request of the Holder acknowledge in
writing its continuing obligation to afford to such Holder any rights to which
such Holder shall continue to be entitled after such exercise in accordance with
the provisions of this Warrant. If the Holder shall fail to make any such
request, such failure shall not affect the continuing obligation of the
Corporation to afford to such Holder any such rights.

         1.4 REGISTRATION RIGHTS. The Holder shall, with respect to the shares
of Common Stock issuable upon exercise of this Warrant, have incidental
registration rights in accordance with the terms of the Registration Rights
Agreement attached to the Subscription Agreement.

         1.5 LEGENDS.

                  (a) Each certificate for Common Stock issued upon exercise of
         this Warrant shall bear the following legend:

         "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED
         PURSUANT TO REGULATION S PROMULGATED UNDER THE U.S. SECURITIES ACT OF
         1933, AS AMENDED (THE "ACT"). AS SUCH, THE SECURITIES REPRESENTED BY
         THIS CERTIFICATE ARE "RESTRICTED SECURITIES" AND MAY NOT BE SOLD,
         OFFERED FOR SALE, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR
         OTHERWISE TRANSFERRED OR DISPOSED OF OTHER THAN (I) PURSUANT TO AN

                                      -3-

<page>

         EFFECTIVE REGISTRATION STATEMENT AS TO THE SHARES REPRESENTED BY THIS
         CERTIFICATE UNDER THE ACT, (II) OUTSIDE THE UNITED STATES IN AN
         OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE ACT, (III)
         PURSUANT TO RULE 144 UNDER THE ACT, OR (IV) PURSUANT TO ANOTHER
         AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT. THE
         HOLDER HEREOF AGREES THAT (A) ANY HEDGING TRANSACTION WITH RESPECT TO
         THE SECURITIES REPRESENTED BY THIS CERTIFICATE WILL BE CONDUCTED IN
         COMPLIANCE WITH THE ACT AND (B) IT WILL DELIVER, OR CAUSE TO BE
         DELIVERED, TO EACH PERSON TO WHOM THE SECURITIES REPRESENTED BY THIS
         CERTIFICATE ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF
         THIS LEGEND. AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION" AND
         "UNITED STATES" HAVE THE RESPECTIVE MEANINGS ASSIGNED TO THEM IN
         REGULATION S UNDER THE ACT."

         and

         "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE LISTED ON THE
         TORONTO STOCK EXCHANGE ("TSX"); HOWEVER, PRIOR TO FEBRUARY 19, 2008 THE
         SAID SECURITIES CANNOT BE TRADED THROUGH THE FACILITIES OF TSX SINCE
         THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY ANY CERTIFICATE
         REPRESENTING SUCH SECURITIES IS NOT "GOOD DELIVERY" IN SETTLEMENT OF
         TRANSACTIONS ON TSX PRIOR TO SUCH DATE."

                  (b) If shares of Common Stock are issued to a Canadian
         resident upon exercise of this Warrant prior to February 19, 2008, each
         certificate for such shares of Common Stock shall, in addition to the
         legend in SECTION 1.5(a), bear the following legend:

         "UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS
         SECURITY MUST NOT TRADE THE SECURITY BEFORE FEBRUARY 19, 2008."

2.       PROCEDURE FOR EXERCISE.
         -----------------------

         2.1 APPOINTMENT OF WARRANT AGENT. The principal office of the Warrant
Agent in the Cities of Vancouver, British Columbia, Calgary, Alberta and
Toronto, Ontario, have been appointed the warrant agent to receive subscriptions
for Common Shares and payments from the Holder on exercise of this Warrant
Certificate. This Warrant Certificate, the duly completed and executed
Subscription Form and a certified check, bank draft or money order shall be
deemed to be surrendered to the Warrant Agent only upon personal delivery
thereof or, if sent by post or other means of transmission, upon receipt thereof
by the Warrant Agent at the offices specified above. If mail is used for
delivery of a Warrant Certificate, for the protection of the Holder, registered
mail should be used and sufficient time should be allowed to avoid the risk of
late delivery.

                                      -4-

<page>

         2.2 DELIVERY OF STOCK CERTIFICATES, ETC., ON EXERCISE. The Corporation
agrees that the shares of Common Stock purchased upon exercise of this Warrant
shall be deemed to be issued to the Holder as the owner of record of such shares
as of the close of business on the date on which the duly completed and executed
Subscription Form, this Warrant Certificate and payment for such shares shall
have been received by the Corporation in accordance herewith. As soon as
practicable after the exercise of this Warrant in full or in part, and in any
event within five (5) business days thereafter, the Warrant Agent upon the
Corporation instruction and at the Corporation's expense (including the payment
by it of any applicable issue taxes) will cause to be issued in the name of and
delivered to the Holder, or as such Holder (upon payment by such Holder of any
applicable transfer taxes) may direct in compliance with applicable securities
laws, a certificate or certificates for the number of duly and validly issued,
fully paid and nonassessable shares of Common Stock (or Other Securities) to
which such Holder shall be entitled on such exercise. As to any fraction of a
share that the Holder of one or more Warrants, the rights under which are
exercised in the same transaction, would otherwise be entitled to purchase upon
such exercise, the Corporation shall pay to such Holder an amount in cash equal
to such fraction multiplied by the Fair Market Value of one share of Common
Stock on the date of exercise. Following a partial exercise of this Warrant
prior to the Expiration Date, the Warrant Agent shall cancel this Warrant
Certificate and, within five business days, execute and deliver to the Holder a
new Warrant Certificate of like tenor covering the remaining balance of the
shares of Common Stock subject to this Warrant Certificate.

         2.3 EXERCISE. Payment may be made by certified check, bank draft or
money order payable to the order of the Corporation equal to the applicable
aggregate Exercise Price, for the number of Common Shares specified in such
Subscription Form (as such exercise number shall be adjusted to reflect any
adjustment in the total number of shares of Common Stock issuable to the Holder
in accordance with the terms of this Warrant) and the Holder shall thereupon be
entitled to receive the number of duly authorized, validly issued, fully-paid
and non-assessable shares of Common Stock (or Other Securities) determined as
provided herein.

         2.4 REPRESENTATION. The Holder of this Warrant has represented to the
Corporation that it is acquiring this Warrant for its own account and not with a
view toward, or for resale in connection with, the public sale or distribution
of this Warrant or the underlying shares of Common Stock, except pursuant to
sales registered or exempted under the Securities Act of 1933, as amended (the
"SECURITIES ACT"). The Holder of this Warrant further represented that as of the
Issue Date, the Holder, if a Canadian resident, is also an "accredited investor"
as that term is defined in National Instrument 45-106, and if not a Canadian
resident, is purchasing the Shares in compliance with securities laws in its
jurisdiction of residence and pursuant to an exemption from any prospectus or
securities registration requirements available to the Corporation and the Holder
under applicable securities laws of their jurisdiction of resident or to which
the Holder is otherwise subject. Upon exercise of this Warrant, the Holder
shall, if requested by the Corporation, confirm in writing, in a form
satisfactory to the Corporation, representations concerning the matters
described in this SECTION 2.4.

                                      -5-

<page>

3.       WARRANT INDENTURE.
         ------------------

         This Warrant Certificate represents warrants of the Corporation issued
or issuable under the provisions of the Warrant Indenture, to which reference is
hereby made for particulars of the rights of the holders of the Warrant
Certificates, the Corporation and the Warrant Agent in respect thereof and the
terms and conditions upon which the Warrants represented hereby are issued and
held, all to the same effect as if the provisions of the Warrant Indenture were
herein set forth in full, to all of which the Holder by acceptance hereof
assents, it being expressly understood that the provisions of the Warrant
Indenture and this Warrant Certificate are for the sole benefit of the
Corporation, the Warrant Agent and the Warrantholders. A copy of the Warrant
Indenture may be obtained on request from the Warrant Agent at Suite 600, 530 -
8th Avenue SW, Calgary, Alberta, Canada T2P 3S8, Attn: Manager, Corporate Trust.

4.       EFFECT OF REORGANIZATION, ETC.; ADJUSTMENT OF EXERCISE PRICE.
         -------------------------------------------------------------

         4.1 REORGANIZATION, CONSOLIDATION, MERGER, ETC. If at any time or from
time to time, the Corporation (a) effects a reorganization, (b) consolidates
with or merges into any other person, or (c) transfers all or substantially all
of its properties or assets to any other person under any plan or arrangement
contemplating the dissolution of the Corporation, then, in each such case, as a
condition to the consummation of such a transaction, proper and adequate
provision shall be made by the Corporation whereby the Holder of this Warrant,
on the exercise hereof as provided in SECTION 1 at any time after the
consummation of such reorganization, consolidation or merger or the effective
date of such dissolution, as the case may be, shall receive, in lieu of the
Common Stock (or Other Securities) issuable on such exercise prior to such
consummation or such effective date, the stock and other securities and property
(including cash) to which such Holder would have been entitled upon such
consummation or in connection with such dissolution, as the case may be, if such
Holder had so exercised this Warrant, immediately prior thereto, all subject to
further adjustment thereafter as provided in SECTION 5.

         4.2 DISSOLUTION. In the event of any dissolution of the Corporation
following the transfer of all or substantially all of its properties or assets,
the Corporation, concurrently with any distributions made to holders of its
Common Stock, shall at its expense deliver or cause to be delivered to the
Holder the stock and other securities and property (including cash, where
applicable) receivable by the Holder of this Warrant pursuant to SECTION 4.1, or
if the Holder also instructs the Corporation, to a bank or trust company
specified by the Holder as trustee for the Holder (the "TRUSTEE").

         4.3 CONTINUATION OF TERMS. Upon any reorganization, consolidation,
merger or transfer (and any dissolution following any transfer) referred to in
this SECTION 4, this Warrant shall continue in full force and effect and the
terms hereof shall be applicable to the shares of stock and other securities and
property receivable on the exercise of this Warrant after the consummation of
such reorganization, consolidation or merger or the effective date of
dissolution following any such transfer, as the case may be, and shall be
binding upon the issuer of any such stock or other securities, including, in the
case of any such transfer, the person acquiring all or substantially all of the
properties or assets of the Corporation, whether or not such person shall have
expressly assumed the terms of this Warrant as provided in SECTION 5. If this
Warrant does not continue in full force and effect after the consummation of the
transactions described in this SECTION 4, then the Corporation's securities and
property (including cash, where applicable) receivable by the Holder of this
Warrant will be delivered to the Holder or the Trustee as contemplated by
SECTION 4.2.

                                      -6-

<page>

5.       EXTRAORDINARY EVENTS REGARDING COMMON STOCK.
         --------------------------------------------

         If the Corporation (a) issues additional shares of the Common Stock as
a dividend or other distribution on outstanding Common Stock or any preferred
stock issued by the Corporation, (b) subdivides its outstanding shares of Common
Stock, or (c) combines its outstanding shares of the Common Stock into a smaller
number of shares of the Common Stock, then, in each such event, the Exercise
Price shall, simultaneously with the happening of such event, be adjusted by
multiplying the then Exercise Price by a fraction, the numerator of which shall
be the number of shares of Common Stock outstanding immediately prior to such
event and the denominator of which shall be the number of shares of Common Stock
outstanding immediately after such event, and the product so obtained shall
thereafter be the Exercise Price then in effect. The Exercise Price, as so
adjusted, shall be readjusted in the same manner upon the happening of any
successive event or events described herein in this SECTION 5. The number of
shares of Common Stock that the Holder of this Warrant shall thereafter, on the
exercise hereof as provided herein in SECTION 1, be entitled to receive shall be
adjusted to a number determined by multiplying the number of shares of Common
Stock that would otherwise (but for the provisions of this SECTION 5) be
issuable on such exercise by a fraction of which (a) the numerator is the
Exercise Price that would otherwise (but for the provisions of this SECTION 5)
be in effect, and (b) the denominator is the Exercise Price in effect on the
date of such exercise.

6.       CERTIFICATE AS TO ADJUSTMENTS.
         ------------------------------

         In each case of any adjustment or readjustment in the shares of Common
Stock (or Other Securities) issuable on the exercise of the Warrant as provided
for in SECTION 4 OR 5 above, the Corporation at its expense will promptly cause
its Chief Financial Officer or other appropriate designee to compute such
adjustment or readjustment in accordance with the terms of the Warrant and
prepare a certificate setting forth such adjustment or readjustment and showing
in detail the facts upon which such adjustment or readjustment is based,
including a statement of (a) the consideration received or receivable by the
Corporation for any additional shares of Common Stock (or Other Securities)
issued or sold or deemed to have been issued or sold, (b) the number of shares
of Common Stock (or Other Securities) outstanding or deemed to be outstanding,
and (c) the Exercise Price and the number of shares of Common Stock to be
received upon exercise of this Warrant, in effect immediately prior to such
adjustment or readjustment and as adjusted or readjusted as provided in this
Warrant. The Corporation will forthwith mail or cause to be mailed a copy of
each such certificate to the Holder of this Warrant and any warrant agent of the
Corporation.

         6.1 RESOLUTION OF QUESTIONS. If any question arises with respect to the
adjustments provided in SECTIONS 4, 5 OR 6 above, such question shall be
conclusively determined by the Corporation's auditors or, if they are unable or
unwilling to act, by such firm of chartered accountants accredited by the
Canadian Public Accountability Board or the United States Public Accounting
Oversight Board, as is appointed by the Corporation and is acceptable to the
Warrant Agent. Such accountants shall have access to all necessary records of
the Corporation and such determination shall be binding upon the Corporation,
the Warrant Agent and the Warrantholders.

                                      -7-

<page>

         6.2 ADDITIONAL ACTIONS. As a condition precedent to the taking of any
action which would require an adjustment in any of the rights under the Warrant
Indenture, the Corporation will take any action which may, in the opinion of
counsel to the Corporation, be necessary in order that the Corporation, or any
successor to the Corporation or successor to the undertaking or assets of the
Corporation, will be obligated to and may validly and legally issue all the
Common Shares, Warrants or other securities or property which the Warrantholders
would be entitled to receive thereafter on the exercise thereof in accordance
with the provisions hereof.

         6.3 NOTICE TO WARRANT AGENT. With respect to the certificate referred
to in SECTION 6, at least ten (10) days before the earlier of the effective date
of or record date for any event referred to in SECTION 4 OR 5 that requires or
might require an adjustment in any of the rights under the Warrant Indentures,
the Corporation will:

                  (i)      file with the Warrant Agent a Certificate of the
                           Corporation specifying the particulars of such event
                           and, to the extent determinable, any adjustment
                           required and the computation of such adjustment; and

                  (ii)     give notice to the Warrantholders of the particulars
                           of such event and, to the extent determinable, any
                           adjustment required.

Such notice need only set forth such particulars as have been determined at the
date such notice is given. If any adjustment for which such notice is given is
not then determinable, promptly after such adjustment is determinable the
Corporation will:

                  (iii)    file with the Warrant Agent a Certificate of the
                           Corporation showing the computation of such
                           adjustment; and

                  (iv)     give notice to the Warrantholders of such adjustment.

Where a notice pursuant to this SECTION 6 has been given, the Warrant Agent
shall be entitled to act and rely on any adjustment calculation of the
Corporation or of the Corporation's auditors.

7.       RESERVATION OF STOCK, ETC. ISSUABLE ON EXERCISE OF WARRANT.
         -----------------------------------------------------------

         The Corporation will at all times reserve and keep available, solely
for issuance and delivery on the exercise of this Warrant, shares of Common
Stock (or Other Securities) from time to time issuable on the exercise of this
Warrant.

8.       ASSIGNMENT; EXCHANGE OF WARRANT.
         --------------------------------

         Subject to compliance with applicable securities laws, this Warrant,
and the rights evidenced hereby, may be transferred by any registered holder
hereof (a "TRANSFEROR") in whole or in part. On the surrender for exchange of
this Warrant, with the Transferor's endorsement in the form of EXHIBIT B (the
"TRANSFEROR ENDORSEMENT FORM"), together with evidence reasonably satisfactory
to the Corporation demonstrating compliance with applicable securities laws in a
manner consistent with the restrictive legend on this Warrant, the Warrant Agent
at the Corporation's expense (but with payment by the Transferor of any
applicable transfer taxes), will cause to be issued and delivered to or on the
order of the Transferor thereof a new Warrant of like tenor, in the name of the
Transferor and/or the transferee(s) specified in such Transferor Endorsement
Form (each a "TRANSFEREE"), calling in the aggregate on the face or faces
thereof for the number of shares of Common Stock called for on the face or faces
of the Warrant so surrendered by the Transferor.

                                      -8-

<page>

9.       REPLACEMENT OF WARRANT.
         -----------------------

         On receipt of evidence reasonably satisfactory to the Warrant Agent and
the Corporation of the loss, theft, destruction or mutilation of this Warrant
and, in the case of any such loss, theft or destruction of this Warrant, on
delivery of an indemnity agreement and surety bond reasonably satisfactory in
form and amount to the Warrant Agent and the Corporation, the Warrant Agent at
the Holder's expense and Holder's payment of charges of the Corporation and the
Warrant Agent, will execute and deliver, in lieu thereof, a new Warrant of like
tenor.

10.      EXERCISE RESTRICTIONS.
         ----------------------

         10.1 LIMITATION ON NUMBER OF SHARES ISSUABLE. Notwithstanding anything
contained herein to the contrary, the rights represented by this Warrant shall
not be exercisable by the Holder and the Corporation shall not give effect to
any such exercise, if and solely to the extent that after giving effect to such
exercise, the Holder, together with any person or company acting jointly or in
concert with the Holder with respect to the voting of voting securities of the
Corporation (the "JOINT ACTORS") would in the aggregate directly or indirectly
own or exercise control or direction over the voting of that number of voting
securities of the Corporation (not including shares subject to a warrant as to
which no notice of exercise and corresponding payment has been delivered) that
is 19.99% or greater of the total issued and outstanding voting securities of
the Corporation after giving effect to such exercise.

         10.2 PROVISION OF OFFICER'S CERTIFICATE. Prior to exercising the rights
represented by this Warrant, the Holder shall provide the Corporation with an
officer's certificate stating the number of voting securities of the Corporation
held by the Holder and its Joint Actors, if any, as of the date provided for in
the exercise notice (the "OFFICER'S CERTIFICATE") and the Corporation shall be
entitled to rely on the Officer's Certificate in making any determinations
regarding the total issued and outstanding voting securities of the Corporation
to be held by the Holder and its Joint Actors, if any, after giving effect to
the exercise. The execution of the Subscription Form by the Holder will suffice
as the Holder's acknowledgement of compliance with such exercise limits as set
forth in this SECTION 10.

11.      TRANSFER ON THE CORPORATION'S BOOKS.
         ------------------------------------

         Until this Warrant is transferred on the books of the Corporation, the
Corporation may treat the registered Holder hereof as the absolute owner hereof
for all purposes, notwithstanding any notice to the contrary.

12.      NOTICES, ETC.
         -------------

         All notices and other communications from the Corporation to the Holder
of this Warrant shall be delivered by ordinary surface or air mail, postage
prepaid, addressed to the Holder or delivered at their respective address
appearing on the register of Holders.

                                      -9-

<page>

13.      MISCELLANEOUS.
         --------------

         Notwithstanding any provision to the contrary contained in this
Warrant, no Common Stock will be issued pursuant to the exercise of this Warrant
if the issuance of such securities may constitute a violation of the securities
laws of any applicable jurisdiction. This Warrant and any term hereof may be
changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of such change, waiver, discharge
or termination is sought. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF STATE OF CALIFORNIA WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAWS. ANY ACTION BROUGHT CONCERNING THE TRANSACTIONS CONTEMPLATED
BY THIS WARRANT SHALL BE BROUGHT ONLY IN THE STATE COURTS OF CALIFORNIA OR IN
THE FEDERAL COURTS LOCATED IN THE STATE OF CALIFORNIA. The Holder and the
Corporation shall submit to the jurisdiction of such courts and waive trial by
jury. Notwithstanding the foregoing, the performance or discharge by the Warrant
Agent of any of its rights, powers, duties or responsibilities under the Warrant
Indenture shall be construed only in accordance with the laws of the Province of
British Columbia and the federal laws of Canada applicable therein. The
prevailing party shall be entitled to recover from the other party its
reasonable attorney's fees and costs. If any provision of this Warrant is
invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of
law. Any such provision which may prove invalid or unenforceable under any law
shall not affect the validity or enforceability of any other provision of this
Warrant. The headings in this Warrant are for purposes of reference only, and
shall not limit or otherwise affect any of the terms hereof. The invalidity or
unenforceability of any provision hereof shall in no way affect the validity or
enforceability of any other provision hereof.

         IN WITNESS WHEREOF, the Corporation has executed this Warrant as of the
date first written above.

                                            PACIFIC ENERGY RESOURCES LTD.

                                            By: ________________________________
                                                 Kathleen MacInnes, Secretary

         This Warrant is one of the Warrant Certificates referred to in the
Warrant Indenture dated October 18, 2007 between the Corporation and the
undersigned, as Warrant Agent.

                                           COMPUTERSHARE TRUST COMPANY OF CANADA

                                           By:__________________________________

                                      -10-

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