Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Detour Gold Corporation - Exhibit 4.02

DUNDEE SECURITIES CORPORATION 
UNDERWRITING AGREEMENT

October 23, 2006 

Detour Gold Corporation 
BCE Place, 161 Bay Street, Suite
2700 
Toronto, ON M5J 2S1 
Attention:    Mr. Gerald S.
Panneton,

                     
President and Chief Executive Officer 

Dear Sirs: 

Re:     Detour Gold Corporation
  – Private Placement of Subscription Receipts

Dundee Securities Corporation (the “Underwriter”)
understands that: 

	(a) 	
      Detour Gold Corporation (the “Corporation”) has
      agreed to purchase from Pelangio Mines Inc. (“Pelangio”), pursuant
      to the asset purchase agreement between the Corporation and Pelangio dated
      August 21, 2006, as amended September 21, 2006 and October 4, 2006 (the
      “Purchase Agreement”), Pelangio’s interest owned in the Detour Lake
      Property (the “Property”), including assets under option to Trade
      Winds Ventures Inc., all located 140 km northeast of Cochrane, Ontario and
      covering an area of approximately 90 square miles.

	 	 
	(b) 	
      The Corporation is authorized to issue, among other
      things, an unlimited number of common shares in the capital of the
      Corporation without obtaining shareholder approval;

	 	 
	(c) 	
      the Corporation is prepared to issue and sell, and the
      Underwriter has agreed to purchase itself or to place through other
      parties, up to 2,500,000 subscription receipts of the Corporation
      (“Subscription Receipts”) at $2.00 per Subscription Receipt, each
      Subscription Receipt exercisable for one Common Share for no additional
      consideration;

	 	 
	(d) 	
      the Closing of the sale of the Subscription Receipts and
      will be held on or about October 23, 2006;

	 	 
	(e) 	
      the Corporation will use the gross proceeds of the sale
      of Subscription Receipts under the Offering (defined below) only (i) to
      make the necessary payments to Pelangio in connection with the Transaction
      (defined below), including, if necessary, payments on behalf of Pelangio
      in connection with the Property pursuant to the Purchase Agreement, and to
      repay the $1,000,000 loan from Hunter Dickinson Inc. to the Corporation
      plus accrued interest, (ii) to fund incorporation expenses and necessary
      costs of the Transaction and the Offering and (iii) for general working
      capital purposes; and

	 	 
	(f) 	
      contemporaneously with the completion of the Offering,
      the Corporation intends to issue 2,500,000 subscription receipts, in the
      same form and on the same terms as the Subscription Receipts offered
      hereunder, entitling the holders to acquire upon exercise thereof
      2,500,000 common shares, on a non-brokered private placement basis without
      any participation of, or any fees payable to, the
  Underwriter.

This Agreement is subject to terms and conditions as summarized
in news releases dated August 22, 2006 and September 22, 2006 and in the Term
Sheet attached hereto as Schedule “B”, and the transaction will result in the
Property, including assets under option to Trade Winds Ventures Inc., being sold
to the Corporation for an aggregate purchase price of $85,000,000, excluding
certain work payments described 

in the Purchase Agreement that the Corporation has agreed to
fund. The consideration for the purchase will consist of $5,000,000 in cash and
the issue of 20,000,000 treasury shares of the Corporation at a price of $4.00
per share, subject to adjustment in certain circumstances described in the
Purchase Agreement. Thereafter, the Corporation intends to complete exploration
and development work and make a production decision on the Property after all
necessary studies are completed, with the intent of starting commercial
production if feasible shortly thereafter.

Based upon the understanding of the Underwriter set out above
and upon the terms and subject to the conditions contained hereinafter, upon the
acceptance hereof by the Corporation, the Corporation hereby appoints the
Underwriter to act as the sole and exclusive Underwriter of the
Corporation, and the Underwriter hereby agrees to act as such
Underwriter.

Table of Contents

	 	Page
      
	1.
      Definitions, Interpretation and Schedules 	2
      
	2.
      Subscription Receipts 	5
      
	3.
      Offering 	5
      
	4.
      Due Diligence 	6
      
	5.
      Deliveries By Closing Time 	6
      
	6.
      Closing 	8
      
	7.
      Compensation 	9
      
	8.
      Representations and Warranties 	9
      
	9.
      Covenants of the Corporation 	13
      
	10.
      U.S. Law 	14
      
	11.
      Termination 	18
      
	12.
      Indemnity and Contribution 	19
      
	13.
      Expenses 	22
      
	14.
      Conditions 	22
      
	15.
      Notices 	23
      
	16.
      Sponsorship 	23
      
	17.
      Miscellaneous 	23
      
	SCHEDULE
      “A” – OFFICERS’ CERTIFICATE 	A-1
      
	SCHEDULE
      “B” – TERM SHEET 	B-1
      
	SCHEDULE
      “C” – UNDERWRITER’S CERTIFICATE (FOR U.S. OFFERING) 	C-1
      

The terms and conditions of this Agreement are as follows: 

	1. 	
      Definitions, Interpretation and
      Schedules

	 	 	 	 
		(a) 	
      Definitions: Whenever used in this
    Agreement:

	 	 	 	 
			(i) 	
      “Agreement” means the agreement resulting from the
      acceptance by the Corporation of the offer made by the Underwriter herein,
      including the schedules attached hereto, as amended or supplemented from
      time to time;

	 	 	 	 
			(ii) 	
      “Ancillary Documents” means all agreements,
      indentures, certificates (including the Subscription Receipt Certificates)
      and documents executed and delivered, or to be executed and delivered, by
      the Corporation in connection with the transactions contemplated by this
      Agreement or the Subscription Agreements and includes the Subscription
      Agreements;

2 

	 	(iii) 	
      “Business Day” means a day which is not a
      Saturday, Sunday or a statutory or civic holiday in the City of Toronto,
      Province of Ontario or the City of Vancouver, Province of British
      Columbia;

	 	 	 
	 	(iv) 	
      “Closing” means the purchase and sale of the
      Subscription Receipts subscribed for by the Purchasers pursuant to the
      Subscription Agreements;

	 	 	 
	 	(v) 	
      “Closing Date” means the Business Day for which
      there is a closing of the sale of the Subscription Receipts, which shall
      be held on October 23, 2006 or such other date as is designated by the
      Corporation and the Underwriter;

	 	 	 
	 	(vi) 	
      “Closing Time” means 12:00 noon (Toronto time) on
      the Closing Date or such other time on the Closing Date as the Corporation
      and the Underwriter may mutually agree upon in writing;

	 	 	 
	 	(vii) 	
      “Common Shares” means the common shares which the
      Corporation is authorized to issue, including on exercise of the
      Subscription Receipts, as constituted on the date hereof;

	 	 	 
	 	(viii) 	
      “Corporation” means Detour Gold Corporation, a
      company incorporated under the laws of the Canada and includes any
      successor corporation thereto;

	 	 	 
	 	(ix) 	
      “Directed Selling Efforts” means “directed selling
      efforts” as defined in Rule 902 of Regulation S;

	 	 	 
	 	(x) 	
      “Exchange” means the Toronto Stock Exchange or the
      TSX – Venture Exchange;

	 	 	 
	 	(xi) 	
      “Foreign Private Issuer” means “Foreign Private
      Issuer” as defined in Rule 405 promulgated under the U.S. Securities
      Act;

	 	 	 
	 	(xii) 	
      “Information” means all information regarding the
      Corporation that is, or becomes, publicly available together with all
      information prepared by the Corporation and provided to the Underwriter or
      to potential purchasers of the Subscription Receipts, if any, and
      includes, but is not limited to, all material change reports, press
      releases and financial statements of the Corporation;

	 	 	 
	 	(xiii) 	
      “IPO Closing Date” means the date of the purchase
      and sale of common shares under the IPO offering to be agreed upon by the
      Corporation and the Underwriter, not later than January 30, 2007 or such
      other date as is mutually agreed to in writing by the Corporation and the
      Underwriter, not later than April 30, 2007;

	 	 	 
	 	(xiv) 	
      “IPO Offering” means the proposed initial public
      offering of common shares to be issued from treasury, to be completed
      under a long-form prospectus on a best-efforts basis for a minimum
      $15,000,000 and a maximum $40,000,000 gross proceeds.

	 	 	 
	 	(xv) 	
      “Material Adverse Effect” means an effect with
      respect to any person which is materially adverse to the business, assets,
      financial condition, earnings, operations or prospects of such
    person;

	 	 	 
	 	(xvi) 	
      “Offering” means the offering for sale by the
      Corporation on a private placement basis of the Subscription
    Receipts;

3 

	 	(xvii) 	
      “Offering Jurisdictions” means the Provinces of
      British Columbia and Ontario, the United States and such other non-U.S.
      jurisdictions outside of Canada as the Corporation and Underwriter
      mutually agree;

	 	 	 
	 	(xviii) 	
      “Ontario Act” means the Securities Act
      (Ontario) and the regulations thereunder, together with the
      instruments, policies, rules, orders, codes, notices and interpretation
      notes of the Ontario Securities Commission, as amended, supplemented or
      replaced from time to time;

	 	 	 
	 	(xix) 	
      “Lang Michener” means Lang Michener
      LLP, the Corporation’s counsel;

	 	 	 
	 	(xx) 	
      “Person” means an individual, a firm, a
      corporation, a syndicate, a partnership, a trust, an association, an
      unincorporated organization, a joint venture, an investment club, a
      government or an agency or political subdivision thereof and every other
      form of legal or business entity of whatsoever nature or kind;

	 	 	 
	 	(xxi) 	
      “Property” has the meaning assigned to it on the
      first page of this Agreement;

	 	 	 
	 	(xxii) 	
      “Purchase Price” means Cdn. $2.00 per Subscription
      Receipt;

	 	 	 
	 	(xxiii) 	
      “Purchasers” means the purchasers of the
      Subscription Receipts collectively;

	 	 	 
	 	(xxiv) 	
      “Regulation D” means Regulation D promulgated
      under the U.S. Securities Act;

	 	 	 
	 	(xxv) 	
      “Regulation S” means Regulation S promulgated
      under the U.S. Securities Act;

	 	 	 
	 	(xxvi) 	
      “Securities Commissions” means the securities
      regulatory authorities of the Offering Jurisdictions;

	 	 	 
	 	(xxvii) 	
      “Securities Laws” means the securities legislation
      and regulations of, and the instruments, policies, rules, orders, codes,
      notices and interpretation notes of the securities regulatory authorities
      of, the applicable jurisdiction or jurisdictions collectively;

	 	 	 
	 	(xxviii) 	
      “Subscription Agreements” means the subscription
      agreement to be entered into between the Corporation and each of the
      Purchasers with respect to the purchase of the Subscription
    Receipts;

	 	 	 
	 	(xxix) 	
      “Subscription Receipts” means the Subscription
      Receipts of the Corporation being offered for sale by the Underwriter,
      each Subscription Receipt being exercisable for one Common Share;
    and

	 	 	 
	 	(xxx) 	
      “Tax Act” means the Income Tax Act
      (Canada), together with any and all regulations promulgated
      thereunder, as subsequently amended;

	 	 	 
	 	(xxxi) 	
      “Term Sheet” means the term sheet for this
      Offering attached as Schedule “B”;

	 	 	 
	 	(xxxii) 	
      “Trading Day” means, with respect to a stock
      exchange, a day on which such stock exchange is open for
  business;

	 	 	 
	 	(xxxiii) 	
      “Transaction” means the transfer to the
      Corporation of all of Pelangio’s interest in the Property, the conditions
      for the closing of which are set out in the Purchase Agreement and
      summarized in the term sheet attached hereto as Schedule “B”, for
    total

4 

	 		
      consideration of approximately $85,000,000, to be paid by
      the Corporation to Pelangio by way of a cash payment of $5,000,000 and
      20,000,000 Common Shares, subject to adjustment;

	 	 	 
	 	(xxxiv) 	
      “U.S. Accredited Investor” means an “accredited
      investor” as defined in Rule 501(a) of Regulation D;

	 	 	 
	 	(xxxv) 	
      “U.S. Person” means “U.S. Person” as defined in
      Rule 902 of Regulation S; and

	 	 	 
	 	(xxxvi) 	
      “U.S. Securities Act” means the United
      States Securities Act of 1933, as amended.

	 	(b) 	
      Other Defined Terms: Whenever used in this
      Agreement, the words and terms “affiliate”, “associate”, “material fact”,
      “material change”, “misrepresentation” and “senior officer” shall have the
      meaning given to such word or term in the Ontario Act unless
      specifically provided otherwise herein.

	 	 	 
	 	(c) 	
      Plural and Gender: Whenever used in this
      Agreement, words importing the singular number only shall include the
      plural and vice versa and words importing the masculine gender
      shall include the feminine gender and neuter.

	 	 	 
	 	(d) 	
      Currency: All references to monetary amounts in
      this Agreement are to lawful money of Canada.

	 	 	 
	 	(e) 	
      Schedules: The following schedules are attached to
      this Agreement and are deemed to be a part of and incorporated in this
      Agreement:

	 	Schedule 	Title 
	 	  	  
	 	A 	Officers’
      Certificate 
	 	B 	Term Sheet

	2. 	
      Subscription
Receipts

The Subscription Receipts consist of
2,500,000 Subscription Receipts which the Underwriter has agreed to purchase,
subject to a right of the Underwriter to substitute purchasers. 

	3. 	
      Offering

	 	 	 
		(a) 	
      Sale on Exempt Basis: The Underwriter will, in
      respect of the Subscription Receipts, arrange for Purchasers in the
      Offering Jurisdictions. The Underwriter shall offer for sale on behalf of
      the Corporation the Subscription Receipts in the Offering Jurisdictions in
      compliance with the Securities Laws of the Offering Jurisdictions and only
      to such Persons and in such manner that, pursuant to the provisions of the
      Securities Laws of the Offering Jurisdictions, no prospectus, registration
      statement or other similar document need be filed with, or delivered to,
      any Securities Commission in any Offering Jurisdiction in connection
      therewith.

	 	 	 
		(b) 	
      Agency Group: The Corporation agrees that, subject
      to the consent of the Corporation, such consent not to be unreasonably
      withheld, the Underwriter has the right to invite one or more investment
      dealers to form an agency or selling group to participate in the
      soliciting of offers to purchase the Subscription Receipts. The
      Underwriter shall have the exclusive right to control all compensation
      arrangements between the members of the

5 

	 		
      agency or selling group. The Corporation grants all of
      the rights and benefits of this Agreement to any investment dealer who is
      a member of any agency or selling group formed by the Underwriter and
      appoints the Underwriter as trustee of such rights and benefits for all
      such investment dealers, and the Underwriter hereby accepts such trust and
      agrees to hold such rights and benefits for and on behalf of all such
      investment dealers. The Underwriter shall ensure that any investment
      dealer who is a member of any agency or selling group formed by the
      Underwriter pursuant to the provisions of this subsection 3(b) or with
      whom the Underwriter has a contractual relationship with respect to the
      Offering, if any, agree with the Underwriter to comply with the covenants
      and obligations given by the Underwriter herein.

	 	 	 
	 	(c) 	
      Representations and Covenants of the Underwriter:
      The Underwriter represents, warrants and covenants with the Corporation
      that (i) it will comply with the Securities Laws of the Offering
      Jurisdictions in which it solicits or procures subscriptions for
      Subscription Receipts in connection with the Offering, (ii) it will not
      solicit or procure subscriptions for Subscription Receipts so as to
      require the registration thereof or the filing of a prospectus,
      registration statement or similar document with respect thereto under the
      laws of any jurisdiction, (iii) it will obtain from each Purchaser an
      executed subscription agreement in a form acceptable to the Corporation
      and the Underwriter, acting reasonably; and (iv) the Underwriter is
      registered under the Ontario Act as a broker and investment dealer.
      The Underwriter represents and warrants that it is, and, to the best of
      its knowledge, each member of any agency or selling group formed by the
      Underwriter is, qualified to so act in the Offering Jurisdictions in which
      such member solicits or procures subscriptions for the Subscription
      Receipts.

	 	 	 
	 	(d) 	
      Filings: The Corporation undertakes to file or
      cause to be filed all forms and undertakings required to be filed by the
      Corporation in connection with the Offering so that the distribution of
      the Subscription Receipts may lawfully occur in the Offering Jurisdictions
      without the necessity of filing a prospectus, registration statement or
      similar document and the Underwriter undertakes to cause the Purchasers of
      the Subscription Receipts to complete (and it shall be a condition of
      closing in favour of the Corporation that the Purchasers complete and
      deliver to the Corporation) any forms and undertakings required by the
      Securities Laws of the Offering Jurisdictions. All fees payable in
      connection with such filings shall be at the expense of the
      Corporation.

	4. 	
      Due Diligence

	 	 	 	 
		
      The Corporation shall allow the Underwriter to conduct
      all due diligence investigations, including meeting with senior management
      of the Corporation, and their respective legal counsel and auditors, as
      the Underwriter shall consider appropriate in connection with the
      Offering. The Corporation will make available to the Underwriter all
      corporate, business and operating records, and financial information of
      the Corporation.

	 	 	 	 
	5. 	
      Deliveries By Closing Time

	 	 	 	 
		(a) 	
      Deliveries: By the Closing Time on the Closing
      Date:

	 	 	 	 
			(i) 	
      all actions required to be taken by or on behalf of the
      Corporation including, without limitation, the passing of all required
      resolutions of the directors, including committees of the directors, and
      shareholders of the Corporation, shall have occurred in order to complete
      the transactions contemplated by this Agreement and the Subscription
      Agreements, and a certified copy of all such resolutions shall have been
      delivered by the Corporation to the Underwriter;

6 

	 	(ii) 	 the Corporation shall have delivered or caused
        to be delivered to the Underwriter:

	 	 	 	 
	 		A. 	 favourable legal opinions of Lang Michener, counsel
        to the Corporation, and such local counsel as are acceptable to the Underwriter,
        addressed to, among others, the Underwriter and the Purchasers substantially
        in a form customary for transactions of this nature;

	 	 	 	 
	 		B. 	 a certificate dated the Closing Date signed by an appropriate
        officer of the Corporation and addressed to, among others, the Underwriter
        and the Purchasers with respect to the articles and by-laws of the Corporation,
        the resolutions of the directors and shareholders, if any, of the Corporation
        and any other corporate action taken relating to this Agreement and the
        Ancillary Documents and with respect to such other matters as the Underwriter
        may reasonably request and including specimen signatures of the signing
        officers of the Corporation;

	 	 	 	 
	 		C. 	 a certificate dated the Closing Date addressed to, among
        others, the Underwriter and the Purchasers signed by the chief executive
        officer and the chief financial officer of the Corporation or any two
        other senior officers of the Corporation acceptable to the Underwriter
        substantially in the form of the certificate attached hereto as Schedule
        “A”;

	 	 	 	 
	 		D. 	 a Subscription Agreement from each Purchaser accepted
        by the Corporation;

	 	 	 	 
	 		E. 	 definitive certificates representing the Subscription
        Receipts registered in the names of the Purchasers or in such other names
        as the Purchasers or the Underwriter may direct; and

	 	 	 	 
	 		F. 	 such further documents as may be contemplated by this
        Agreement or as the Underwriter may reasonably require, all in form and
        substance satisfactory to the Underwriter;

	 	 	 	 
	 	(iii) 	 the Corporation shall have delivered or caused
        to be delivered to the Underwriter payment of the amount payable by the
        Corporation to the Underwriter or such other persons as the Underwriter
        may direct, by certified cheque or bank draft or deduction from the gross
        proceeds, including (i) the commission payable by the Corporation to the
        Underwriter as provided in section 7 of this Agreement against delivery
        from the Underwriter to the Corporation of a receipt for the payment of
        such commission, (ii) the expenses payable by the Corporation to the Underwriter
        as provided in section 13 of this Agreement against delivery from the
        Underwriter to the Corporation of a receipt for the payment of such expenses,
        and (iii) the legal expenses payable by the Corporation to counsel for
        the Underwriter as provided in section 13 of this Agreement against delivery
        from such legal counsel to the Corporation of a receipt for the payment
        of such legal expenses; and

	 	 	 	 
	 	(iv) 	 the Underwriter shall have delivered or cause
        to be delivered to the Corporation

	 	 	 	 
	 		A. 	 payment of the aggregate gross Purchase Price, excluding
        the amounts that the parties agree are to be paid by individual Purchasers
        directly to the Corporation, for the Subscription Receipts purchased by
        the

7 

	 		
      Purchasers by certified cheque or bank draft payable to
      the Corporation or as the Corporation may otherwise direct in writing
      against delivery from the Corporation to the Underwriter of a receipt for
      the aggregate gross Purchase Price delivered by the Underwriter for the
      subject Subscription Receipts, provided that, at the Underwriter’s option,
      it may deduct from such payment the amount of any fees and expenses due to
      them under sections 7 and 12 on the particular Closing Date; and

	 	 	 
	 	B. 	 such further documents as may be contemplated by this
        Agreement or as the Corporation may reasonably require, all in form and
        substance satisfactory to the Corporation.

	6. 	
      Closing

	 	 	 	 	 
		(a) 	
      Closing: The Closing shall be completed at the
      offices of counsel for the Issuer at the Closing Time on the Closing
      Date.

	 	 	 	 	 
		(b) 	
      Conditions of Closing: The following are
      conditions precedent to the obligation of the Underwriter to complete the
      Closing and of the Purchasers to purchase the Subscription Receipts, which
      conditions the Corporation hereby covenants and agrees to use its best
      efforts to fulfill within the time set out herein therefore, and which
      conditions may be waived in writing in whole or in part by the
      Underwriter:

	 	 	 	 	 
			(i) 	
      the Underwriter shall have been provided with evidence
      of, and shall be satisfied that:

	 	 	 	 	 
				A. 	
      the Underwriter has received and had an opportunity to
      review a copy of the fairness opinion provided to the directors of
      Pelangio by IBK Capital Corporation; and

	 	 	 	 	 
				B. 	
      the Underwriter shall have had an opportunity to review
      all technical data as reasonably requested;

	 	 	 	 	 
			(ii) 	
      the Corporation shall have received all necessary
      approvals and consents, including all necessary shareholder and regulatory
      approvals and consents required for the completion of the transaction
      contemplated by this Agreement, all in a form satisfactory to the
      Underwriter;

	 	 	 	 	 
			(iii) 	
      receipt by the Underwriter of the documents set forth in
      section 5 of this Agreement to be delivered to the Underwriter;

	 	 	 	 	 
			(iv) 	
      the representations and warranties of the Corporation
      contained herein being true and correct as of the Closing Time with the
      same force and effect as if made at and as of the Closing Time after
      giving effect to the transactions contemplated hereby;

	 	 	 	 	 
			(v) 	
      the Corporation having complied with all covenants, and
      satisfied all terms and conditions, contained herein to be complied with
      and satisfied by the Corporation at or prior to the Closing Time;
    and

	 	 	 	 	 
			(vi) 	
      the Underwriter not having previously terminated its
      obligations pursuant to this Agreement.

8 

	 	(c) 	
      Escrow of Proceeds: A portion of the gross
      proceeds may be escrowed on Closing with an escrow agent acceptable to the
      Underwriter in accordance with the escrow terms set out in the Term
      Sheet.

	 	 	 
	 	(d) 	
      Contractual Escrow of Shares: Senior officers,
      directors, certain insiders and the founding shareholder of the
      Corporation will enter into a contractual escrow with the Underwriter with
      respect to all of their shares of the Corporation, which escrow will run
      for six (6) months from the completion of the IPO Offering. The
      contractual escrow will be in addition to any regulatory
  escrow.

	7. 	
      Compensation

	 	 	 	 
		(a) 	
      Commission: In consideration of the agreement of
      the Underwriter to act as underwriter of the Corporation in respect of the
      Offering, and in consideration of the services performed and to be
      performed by the Underwriter in connection therewith, including, without
      limitation:

	 	 	 	 
			(i) 	
      acting as Underwriter of the Corporation to purchase the
      Subscription Receipts;

	 	 	 	 
			(ii) 	
      participating in the preparation of the form of the
      Subscription Agreements and certain of the Ancillary Documents;
  and

	 	 	 	 
			(iii) 	
      advising the Corporation with respect to the private
      placement of the Subscription Receipts;

	 	 	 	 
			
      the Corporation shall pay to the Underwriter or as the
      Underwriter may otherwise direct at the Closing Time against receipt of
      payment of the Purchase Price for the Subscription Receipts, a cash fee
      equal to 4% of the gross proceeds of the Offering.

	 	 	 	 
		(b) 	
      Taxes: The Corporation and the Underwriter
      acknowledge and agree that if a separate fee would have been charged to
      the Corporation for the services described in clause 7(a)(i) above, such
      separate fee would represent more than 50% of the fee payable to the
      Underwriter, and the Corporation hereby further acknowledges and agrees
      that the Underwriter will rely on the foregoing statement in not charging
      federal goods and services tax on such fee and that the Corporation will
      forthwith pay to the Underwriter any such tax and any applicable interest
      and penalties to the extent determined to be exigible.

	 	 	 	 
		(c) 	
      Expenses: The foregoing obligations are additional
      to those set forth in Section 13 hereof.

	 	 	 	 
	8. 	
      Representations and Warranties

	 	 	 	 
		
      The Corporation hereby represents and warrants to the
      Underwriter and the Purchasers, and acknowledges that the Underwriter and
      the Purchasers are relying upon each of such representations and
      warranties in completing the Closing, as follows:

	 	 	 	 
		(a) 	
      Incorporation and Organization: The Corporation
      has been incorporated and organized and is a valid and subsisting
      corporation under the laws of its jurisdiction of incorporation and has
      all requisite corporate power and authority to carry on its business as
      now conducted or proposed to be conducted and to own or lease and operate
      the property and assets thereof and the Corporation has all requisite
      corporate power and authority to enter into, execute and deliver this
      Agreement and the Ancillary Documents and to carry out the obligations
      thereof hereunder and thereunder.

9 

	 	(b) 	
      Authorized and Issued Capital: The Corporation is
      authorized to issue, among other things, an unlimited number of Common
      Shares and, as at October 23, 2006, 5,000,000 Common Shares were
      outstanding as fully paid and non-assessable shares and no Common Shares
      were reserved for issue pursuant to outstanding options, warrants, share
      incentive plans, convertible and exchangeable securities and other rights
      to acquire Common Shares.

	 	 	 
	 	(c) 	
      Certain Securities Law Matters: The Common Shares
      are not listed on the Exchange. The Corporation is not a “reporting
      issuer” or the equivalent, as that term is defined under the Securities
      Laws, in any jurisdiction in Canada. The Common Shares are not registered
      under the Securities Exchange Act of 1934 (“Subscription
      Receipted States”), as amended.

	 	 	 
	 	(d) 	
      Rights to Acquire Securities: Other than as
      disclosed in the Information, no Person has any agreement, option, right
      or privilege (whether pre-emptive, contractual or otherwise) capable of
      becoming an agreement for the purchase, acquisition, subscription for or
      issue of any of the unissued shares or other securities of the
      Corporation.

	 	 	 
	 	(e) 	
      Rights Plan: The directors of the Corporation have
      not adopted a shareholder rights plan or a similar plan and the
      Corporation is not party to what is commonly referred to as a shareholder
      rights plan agreement.

	 	 	 
	 	(f) 	
      No Pre-emptive Rights: The issue of the
      Subscription Receipts will not be subject to any pre-emptive right or
      other contractual right to purchase securities granted by the Corporation
      or to which the Corporation is subject.

	 	 	 
	 	(g) 	
      Subsidiaries: The Corporation does not have any
      subsidiaries.

	 	 	 
	 	(h) 	
      Issue of Subscription Receipts: All necessary
      corporate action will have been taken by the Closing Date to authorize the
      issue and sale of, and the delivery of certificates representing, the
      Subscription Receipts.

	 	 	 
	 	(i) 	
      Consents, Approvals and Conflicts: None of the
      offering and sale of the Subscription Receipts, the execution and delivery
      of this Agreement the compliance by the Corporation with the provisions of
      this Agreement or the consummation of the transactions contemplated herein
      and therein including, without limitation, the issue of the Subscription
      Receipts to the Subscriber for the consideration and upon the terms and
      conditions as set forth herein, do or will (i) require the consent,
      approval, or authorization, order or agreement of, or registration or
      qualification with, any governmental agency, body or authority, court,
      stock exchange, securities regulatory authority or other Person, except
      (A) such as have been obtained, or (B) such as may be required under
      Securities Laws and will be obtained by the Closing Date, or (ii) conflict
      with or result in any breach or violation of any of the provisions of, or
      constitute a default under, any indenture, mortgage, deed of trust, lease
      or other agreement or instrument to which the Corporation is a party or by
      which it or any of the properties or assets thereof is bound, or the
      articles or by-laws of the Corporation or any resolution passed by the
      directors (or any committee thereof) or shareholders of the Corporation,
      or any statute or any judgment, decree, order, rule, policy or regulation
      of any court, governmental authority, arbitrator, stock exchange or
      securities regulatory authority applicable to the Corporation or any of
      the properties or assets thereof which could have a Material Adverse
      Effect on the Corporation.

10 

	 	(j) 	
      Authority and Authorization: The Corporation has
      full corporate power and authority to enter into this Agreement and to do
      all acts and things and execute and deliver all documents as are required
      hereunder and thereunder to be done, observed, performed or executed and
      delivered by it in accordance with the terms hereof and thereof and the
      Corporation will have taken, by the Closing Date, all necessary corporate
      action to authorize the execution, delivery and performance of this
      Agreement and to observe and perform the provisions of this Agreement in
      accordance with the provisions hereof and thereof including, without
      limitation, the issue of the Subscription Receipts to the Subscriber for
      the consideration and upon the terms and conditions set forth
    herein.

	 	 	 
	 	(k) 	
      Validity and Enforceability: This Agreement has
      been authorized, executed and delivered by the Corporation and constitutes
      a valid and legally binding obligation of the Corporation enforceable
      against the Corporation in accordance with the terms hereof.

	 	 	 
	 	(l) 	
      Compliance with Laws, Licenses and Permits: The
      Corporation has conducted and is conducting the business thereof in
      compliance in all material respects with all applicable laws, rules,
      regulations, tariffs, orders and directives of each jurisdiction in which
      it carries on business and possesses all material approvals, consents,
      certificates, registrations, authorizations, permits and licenses issued
      by the appropriate provincial, state, municipal, federal or other
      regulatory agency or body necessary to carry on the business currently
      carried on by it, is in compliance in all material respects with the terms
      and conditions of all such approvals, consents, certificates,
      authorizations, permits and licenses and with all laws, regulations,
      tariffs, rules, orders and directives material to the operations
      thereof.

	 	 	 
	 	(m) 	
      Agreements and Actions: The Corporation is not in
      violation of any term of the articles or by-laws thereof. The Corporation
      is not in violation of any term or provision of any agreement, indenture
      or other instrument applicable to it which would, or could, result in any
      Material Adverse Effect on the Corporation, nor is the Corporation in
      default in the payment of any obligation owed which is now due and there
      is no action, suit, proceeding or investigation commenced, pending or, to
      the knowledge of the Corporation after due inquiry, threatened which,
      either in any case or in the aggregate, might result in any Material
      Adverse Effect on the Corporation or in any of the material properties or
      assets thereof or in any material liability on the part of the Corporation
      or which places, or could place, in question the validity or
      enforceability of this Agreement or any of the Ancillary
  Documents.

	 	 	 
	 	(n) 	
      No Litigation: There are no actions, suits,
      proceedings, inquiries or investigations existing, pending or, to the
      knowledge of the Corporation after due inquiry, threatened against or
      which adversely affect the Corporation or to which any of the property or
      assets thereof is subject, at law or equity, or before or by any court,
      federal, provincial, state, municipal or other governmental department,
      commission, board, bureau, agency or instrumentality, domestic or foreign,
      which may in any way materially adversely affect the condition (financial
      or otherwise), capital, property, assets, operations or business of the
      Corporation or the ability of the Corporation to perform the obligations
      thereof and the Corporation is not subject to any judgment, order, writ,
      injunction, decree, award, rule, policy or regulation of any governmental
      authority, which, either separately or in the aggregate, may result in a
      Material Adverse Effect on the condition (financial or otherwise),
      capital, property, assets, operations or business of the Corporation or
      the ability of the Corporation to perform its obligations under this
      Agreement.

	 	 	 
	 	(o) 	
      Non-Arm’s Length Transactions: Except as disclosed
      in the Information, the Corporation does not owe any amount to, nor has
      the Corporation any present loans to, or borrowed

11 

	 		
      any amount from or is otherwise indebted to, any officer,
      director, employee or securityholder thereof or any Person not dealing at
      “arm’s length” (as such term is defined in the Tax Act), with any
      of them except for usual employee reimbursements and compensation paid in
      the ordinary and normal course of the business of the Corporation. Except
      as disclosed in the Information and except for usual employee or
      consulting arrangements made in the ordinary and normal course of
      business, the Corporation is not a party to any contract, agreement or
      understanding with any officer, director, employee or securityholder
      thereof or any other Person not dealing at arm’s length with the
      Corporation. No officer, director or employee of the Corporation and no
      Person which is an affiliate or associate of any of the foregoing Person,
      owns, directly or indirectly, any interest (except for shares representing
      less than 5% of the outstanding shares of any class or series of any
      publicly traded company) in, or is an officer, director, employee or
      consultant of, any Person which is, or is engaged in, a business
      competitive with the business of the Corporation which could materially
      adversely impact on the ability to properly perform the services to be
      performed by such Person for the Corporation. To the best of the
      Corporation’s knowledge, after making reasonable inquiry, no officer,
      director, employee or securityholder of the Corporation has any cause of
      action or other claim whatsoever against, or owes any amount to, the
      Corporation except for claims in the ordinary and normal course of the
      business of the Corporation such as for accrued vacation pay or other
      amounts or matters which would not be material to the
  Corporation.

	 	 	 	 	 
	 	(p) 	
      Public Disclosure: Each of the documents which
      contains any Information is, as of the date hereof, in compliance in all
      material respects with the Securities Laws and does not contain any
      material misrepresentation.

	 	 	 	 	 
	 	(q) 	
      Property Matters:

	 	 	 	 	 
	 		(i) 	
      The entering into and the performance of the transactions
      contemplated in the Purchase Agreement by the Corporation:

	 	 	 	 	 
	 			A. 	
      does not require any consent, approval, authorization or
      order of any court or governmental agency or body, except that which may
      be required under applicable securities legislation or as otherwise
      contemplated by the Purchase Agreement;

	 	 	 	 	 
	 			B. 	
      will not contravene any statute or regulation of any
      governmental authority which is binding on the Corporation, where such
      contravention would materially and adversely affect the business,
      operations, capital or condition (financial or otherwise) of the
      Corporation;

	 	 	 	 	 
	 			C. 	
      will not result in the breach of, or be in conflict with,
      or constitute a default under, or create a state of facts which, after
      notice or lapse of time, or both, would constitute a default under any
      term or provision of the constating documents, by-laws or resolutions of
      the Corporation or any mortgage, note, indenture, contract or agreement
      instrument, lease or other document to which the Corporation is a party,
      or any judgment, decree or order or any term or provision thereof, which
      breach, conflict or default would materially and adversely affect the
      business, operations, capital or condition (financial or otherwise) of the
      Corporation;

	 	 	 	 	 
	 		(ii) 	
      To the Corporation’s knowledge, the representations and
      warranties of Pelangio in the Purchase Agreement are true and
    correct.

12 

	9. 	
      Covenants of the Corporation

	 	 	 	 
		(a) 	
      Consents and Approvals: Immediately following the
      acceptance by the Corporation hereof, the Corporation covenants and agrees
      with the Underwriter and the Purchasers that the Corporation will make all
      necessary filings to obtain all other necessary regulatory and other
      consents and approvals required in connection with the transactions
      contemplated by this Agreement.

	 	 	 	 
		(b) 	
      General: The Corporation hereby covenants and
      agrees with the Underwriter and the Purchasers that the Corporation
      will:

	 	 	 	 
			(i) 	
      fulfill all legal requirements to permit the creation,
      issue, offering and sale of the Subscription Receipts as contemplated in
      this Agreement including, without limitation, compliance with the
      Securities Laws of the Offering Jurisdictions to enable the Subscription
      Receipts to be offered for sale and sold to the Purchasers without the
      necessity of filing a prospectus, registration statement or similar
      document in the Offering Jurisdictions;

	 	 	 	 
			(ii) 	
      deliver to the Underwriter a copy of all press releases
      made and material change reports and other documents filed with any
      regulatory authority forthwith upon such press release being made or
      material change report or other document being filed until 30 days after
      the Closing Date;

	 	 	 	 
			(iii) 	
      use its reasonable commercial efforts to ensure that on
      closing of the Transaction, the Common Shares to be issued to Pelangio
      (approximately 20,000,000 Common Shares) are made subject to the
      contractual escrow with the Underwriter for a period of 6 months from
      their issuance; and

	 	 	 	 
			(iv) 	
      forthwith after the Closing, shall file such forms and
      documents as may be required under the Securities Laws of the Offering
      Jurisdictions, relating to the Purchased Securities which, without
      limiting the generality of the foregoing, shall include (i) for British
      Columbia and Ontario resident purchasers, a Form 45-106F1 as prescribed by
      the Canadian Securities Administrators.

	 	 	 	 
		(c) 	
      Material Changes: During the period from the date
      hereof to the completion of the Offering, the Corporation shall notify the
      Underwriter in writing of the full particulars of any material change
      (actual, anticipated, contemplated or threatened, financial or otherwise)
      in the business, affairs, operations, assets, liabilities (contingent or
      otherwise), capital or control of the Corporation.

	 	 	 	 
		(d) 	
      Reporting Issuer Status: The Corporation will use
      its reasonable commercial efforts to become a reporting issuer in all of
      the provinces of Canada, except Québec, by filing a final prospectus that
      will result in the initial public offering of common shares of the
      Corporation and to obtain a listing on the Toronto Stock Exchange or the
      Exchange by January 30, 2007 or such later date as mutually agreed in
      writing by the Corporation and Pelangio. Such date to be not later than
      April 30, 2007.

	 	 	 	 
		(e) 	
      Rights of First Refusal: The Corporation hereby
      agrees, (a) subject to a minimum of $15,000,000 being raised in the IPO
      Offering from the sale of a maximum 5,000,000 common shares (i.e. minimum
      IPO Offering price of $3.00), the Corporation shall provide to the
      Underwriter the right to participate in future equity offerings made by
      the Corporation for a period of twenty-four (24) months after the IPO
      Closing Date. In addition, the Corporation agrees (b) subject to a minimum
      of $25,000,000 being raised in

13 

	 		
      the IPO Offering from the sale of a maximum 8,000,000
      common shares (i.e. minimum IPO Offering price of $3.125), the Corporation
      shall provide to the Underwriter the right to co-lead future equity
      offerings by the Corporation for a period of twelve (12) months after the
      IPO Closing Date.

	 	 	 
	 	(f) 	
      Use of Proceeds: The Corporation will use the
      gross proceeds of the sale of Subscription Receipts under the Offering
      only (i) to make the necessary payments to Pelangio in connection with the
      Transaction, including, if necessary, payments on behalf of Pelangio in
      connection with the Property pursuant to the Agreement, and to repay the
      $1,000,000 loan from Hunter Dickinson Inc. to the Corporation plus accrued
      interest, (ii) to fund incorporation expenses and necessary costs of the
      Transaction and the Offering and (iii) for general working capital
      purposes.

	 	 	 
	 	(g) 	
      Property Acquisition: The Corporation will conduct
      a reasonable due diligence on the Property prior to completion of the
      Transaction.

	10. 	
      U.S. Law

	 	 	 	 
		(a) 	
      Representations of the Corporation Regarding U.S.
    Law

	 	 	 	 
			
      The Corporation represents, warrants, covenants and
      agrees that:

	 	 	 	 
			(i) 	
      the Corporation is, and at the Closing Date will be, a
      Foreign Private Issuer with no “substantial U.S. market interest” in any
      of its securities (as that term is defined in Regulation S);

	 	 	 	 
			(ii) 	
      neither it nor any of its affiliates, nor any person
      acting on their behalf (other than the Underwriter, its respective
      affiliates or any person acting on their behalf, in respect of which no
      representation is made) has made or will make any Directed Selling Efforts
      in the United States or has taken or will take any action in violation of
      Regulation M under the United States Securities Exchange Act of 1934, as
      amended, (the “1934 Act”), or has taken or will take any
      action that would cause the exemption from registration under Rule 506 of
      Regulation D or Rule 903 of Regulation S to be unavailable for offers and
      sales of the Subscription Receipts pursuant to this Agreement;

	 	 	 	 
			(iii) 	
      none of the Corporation, any of its affiliates or any
      person acting on its or their behalf (other than the Underwriter, the U.S.
      Affiliate, their respective affiliates or any person acting on their
      behalf, in respect of which no representation is made) has offered or will
      offer to sell, or has solicited or will solicit offers to buy, any of the
      Subscription Receipts in the United States by means of any form of general
      solicitation or general advertising, which includes any advertisements,
      articles, notices or other communications published in any newspaper,
      magazine or similar media or broadcast over radio or television, or any
      seminar or meeting whose attendees had been invited by general
      solicitation or general advertising, or in any manner involving a public
      offering within the meaning of Section 4(2) of the U.S. Securities
      Act;

	 	 	 	 
			(iv) 	
      the Corporation has not, for a period of six months prior
      to the commencement of the offering of Subscription Receipts, sold,
      offered for sale or solicited any offer to buy any of its securities and
      will not sell, offer for sale or solicit any offer to buy any of its
      securities, in a manner that would be integrated with the offer and sale
      of the Subscription Receipts and would cause the exemptions
  from

14 

	 		
      registration set forth in Rule 506 of Regulation D to
      become unavailable with respect to the offer and sale of the Subscription
      Receipts in the United States or to or for the benefit or account of U.S.
      Persons;

	 	 	 	 	 
	 	(v) 	
      neither the Corporation nor any of its predecessors or
      affiliates has been subject to any order, judgment, or decree of any court
      of competent jurisdiction temporarily, preliminarily or permanently
      enjoining such person for failure to comply with Rule 503 of Regulation
      D;

	 	 	 	 	 
	 	(vi) 	
      the Corporation covenants and agrees with the Underwriter
      to execute or procure the execution of all documents and to use its
      commercially reasonable efforts to take or cause to be taken both before
      and after the Closing Date, all such steps as may be reasonably necessary
      or desirable to establish, to the satisfaction of counsel for the
      Underwriter and counsel for the Corporation, any and all legal
      requirements to enable the Underwriter to offer the Subscription Receipts
      for sale in the United States under Rule 506 of Regulation D in accordance
      with this Agreement;

	 	 	 	 	 
	 	(vii) 	
      the Corporation covenants and agrees that in connection
      with the exercise or deemed exercise of the Subscription Receipts it will
      not pay or give, directly or indirectly, any commission or other
      remuneration for soliciting such exchange; and

	 	 	 	 	 
	 	(viii) 	
      except with respect to offers or sales of Subscription
      Receipts to U.S. Accredited Investors in reliance upon an exemption from
      registration under Rule 506 of Regulation D, neither the Corporation nor
      any of its affiliates, nor any person acting on their behalf (other than
      the Underwriter, the U.S. Affiliate, their respective affiliates or any
      person acting on their behalf, in respect of which no representation is
      made), has made or will make:

	 	 	 	 	 
	 		A. 	
      any offer to sell, or any solicitation of an offer to
      buy, any Subscription Receipts to or for the benefit or account of a U.S.
      Person, or a person in the United States; or

	 	 	 	 	 
	 		B. 	
      any sale of Subscription Receipts unless, at the time the
      buy order was or will have been originated, the purchaser is:

	 	 	 	 	 
	 			(1) 	
      outside the United States; or

	 	 	 	 	 
	 			(2) 	
      the Corporation, its affiliates, and any person acting on
      their behalf reasonably believe that the purchaser is outside the United
      States.

	 	(b) 	
      Undertakings in Compliance with Regulation S

	 	 	 
	 		
      Except as otherwise provided in this Section 10, the
      Underwriter agrees with the Corporation that with respect to each offer
      and sale of the Subscription Receipts they will offer the Subscription
      Receipts only in accordance with Rule 903 of Regulation S and accordingly
      neither the Underwriter, its affiliates, nor any person acting on their
      behalf has made or will make (except as permitted by Section
  10):

15 

	 	(i) 	
      any offer to sell, or any solicitation of an offer to
      buy, Subscription Receipts to any U.S. Person, to any person purchasing
      for the benefit or account of a U.S. Person, or any person in the United
      States;

	 	 	 	 
	 	(ii) 	
      any sale of Subscription Receipts unless, at the time the
      buy order was or will have been originated the Purchaser is:

	 	 	 	 
	 		A. 	
      outside the United States; or

	 	 	 	 
	 		B. 	
      the Underwriter, their affiliates and any person acting
      on their behalf reasonably believe that the Purchaser is outside the
      United States; nor

	 	 	 	 
	 	(iii) 	
      any Directed Selling Efforts in the United States with
      respect to the Subscription Receipts.

	 	(c) 	
      Offering by Underwriter in the United States

	 	 	 	 
	 		
      The Underwriter acknowledge that the Subscription
      Receipts have not been registered under the U.S. Securities Act and
      may not be offered or sold, with respect to offers and sales to or for the
      benefit or account of U.S. Persons, except pursuant to Rule 506 of
      Regulation D. Accordingly, the Underwriter, on its own behalf and on
      behalf of its affiliates, represents, warrants and covenants to the
      Corporation that, with respect to each offer or sale of Subscription
      Receipts to or for the benefit or account of U.S. Persons, it has offered
      and sold, and will offer and sell, securities to Purchasers in the United
      States only in the following manner:

	 	 	 	 
	 		(i) 	
      the Underwriter will offer the Subscription Receipts in
      the United States only through a broker dealer registered pursuant to
      Section 15(b) of the 1934 Act and in good standing with the National
      Association of Securities Dealers Inc. (a “U.S. Affiliate”), solely to
      U.S. Accredited Investors, and only in states of the United States where
      such broker-dealer is registered, or otherwise exempt from
      registration;

	 	 	 	 
	 		(ii) 	
      no form of general solicitation or general advertising
      (as those terms are used in Regulation D) or any manner involving a public
      offering within the meaning of Section 4(2) of the U.S. Securities Act
      has been or will be used by the Underwriter, the U.S. Affiliate, their
      affiliates or anyone acting on their behalf, including advertisements,
      articles, notices or other communications published in any newspaper,
      magazine, or similar media or broadcast over radio or television, or any
      seminar or meeting whose attendees had been invited by general
      solicitation or general advertising, in connection with the offer or sale
      of the Subscription Receipts to U.S. Persons;

	 	 	 	 
	 		(iii) 	
      any offer, sale or solicitation of an offer to buy
      Subscription Receipts that has been made or will be made to U.S. Persons
      or in the United States was or will be made only to U.S. Accredited
      Investors, and in transactions that are exempt from registration under
      applicable state securities laws and require no filings or actions
      pre-offer or pre-sale except as otherwise agreed by the
  Corporation;

	 	 	 	 
	 		(iv) 	
      notwithstanding the wording of this Agreement, which
      contemplates the purchase of the Subscription Receipts by the Underwriter,
      all offers and sales of Subscription Receipts in the United States or to
      U.S. Persons will be made only to U.S. Accredited Investors who will
      purchase the Subscription Receipts directly

16 

	 		
      from the Corporation on a “substituted purchaser” basis
      in compliance with Rule 506 of Regulation D;

	 	 	 
	 	(v) 	
      the Underwriter has not entered and will not enter into
      any contractual arrangement with respect to the distribution of the
      Subscription Receipts, except with its affiliates, any selling group
      members or with the prior written consent of the Corporation. The
      Underwriter shall require each selling group member to agree in writing,
      to comply with, and shall use its best efforts to ensure that each selling
      group member complies with the same the provisions of this Section 10 as
      apply to such Underwriter as if such provisions applied to such selling
      group member;

	 	 	 
	 	(vi) 	
      all offers of Subscription Receipts in the United States
      or to or for the benefit or account of a U.S. Person have been and will be
      made through U.S. Affiliate and all sales of the Subscription Receipts in
      the United States or to or for the benefit or account of a U.S. Person
      will be made by the Corporation to U.S. Accredited Investors designated by
      the U.S. Affiliate or by the Underwriter acting through U.S.
    Affiliate;

	 	 	 
	 	(vii) 	
      immediately prior to soliciting any Purchaser that is in
      the United States or for the benefit or account of a U.S. Person, the
      Underwriter, the U.S. Affiliate, their respective affiliates, and any
      person acting on their behalf, had reasonable grounds to believe and did
      believe that each such Purchaser was a U.S. Accredited Investor, and at
      the time of completion of each sale to or for the benefit or account of a
      U.S. Person or a person in the United States, the Underwriter, the U.S.
      Affiliate, their respective affiliates, and any person acting on their
      behalf will have reasonable grounds to believe and will believe, that each
      Purchaser designated by such Underwriter or the U.S. Affiliate to purchase
      Subscription Receipts from the Corporation is a U.S. Accredited
      Investor;

	 	 	 
	 	(viii) 	
      on the Closing Date, the Underwriter together with the
      U.S. Affiliate, will provide a certificate, substantially in the form of
      Schedule “C”, relating to the manner of the offer and sale of the
      Subscription Receipts in the United States and to or for the benefit or
      account of U.S. Persons, or a written confirmation that it did not sell
      any Subscription Receipts in the United States or to or for the benefit or
      account of U.S. Persons or arrange for any purchasers that are in the
      United States or are U.S. Persons;

	 	 	 
	 	(ix) 	
      neither the Underwriter, the U.S. Affiliate, their
      respective affiliates, or any person acting on their behalf, has taken or
      will take, directly or indirectly, any action in violation of Regulation M
      under the 1934 Act in connection with the offer and sale of the
      Subscription Receipts;

	 	 	 
	 	(x) 	
      prior to completion of any sale of Subscription Receipts
      to a person in the United States or to a U.S. Person, the Underwriter
      shall cause each such Purchaser of Subscription Receipts to execute an
      agreement in the form agreed upon by the Underwriter and the
      Corporation;

	 	 	 
	 	(xi) 	
      the Underwriter shall give the Corporation reasonable
      notice of the U.S. jurisdictions in which it proposes to offer and sell
      the Subscription Receipts, so as to assist the Corporation in satisfying
      its obligations and to permit the Corporation to timely submit any and all
      filings required of the U.S. Securities Act and applicable state
      laws;

17 

	 	(xii) 	
      the Underwriter will not directly or indirectly, take any
      actions or conduct any activities which will cause the Corporation to
      cease to be a Foreign Private Issuer; and

	 	 	 
	 	(xiii) 	
      the representations and warranties and covenants of the
      Underwriter contained in this Section 10 shall be true and correct as of
      the Closing, with the same force and effect as if then made by the
      Underwriter.

	11. 	
      Termination

	 	 	 	 
		(a) 	
      Right of Termination: The Underwriter shall be
      entitled, at its sole option, to terminate and cancel, without any
      liability on the part of the Underwriter, all of the obligations of the
      Underwriter under this Agreement and the obligations of any Person who has
      executed a Subscription Agreement, by notice in writing to that effect
      delivered to the Corporation prior to or at the Closing Time if:

	 	 	 	 
			(i) 	
      there is in the sole opinion of the Underwriter a
      material change or change in a material fact or new material fact or an
      undisclosed material fact or material change which might be expected to
      have an adverse effect on the condition (financial or otherwise), capital,
      property, assets, operations, business, affairs, profitability or
      prospects of the Corporation or on the market price or value of the Common
      Shares or any other securities of the Corporation or on the marketability
      of the Subscription Receipts;

	 	 	 	 
			(ii) 	
      the state of the financial markets is such that in the
      sole opinion of the Underwriter it would be unprofitable to offer or
      continue to offer for sale the Subscription Receipts;

	 	 	 	 
			(iii) 	
      there should develop, occur or come into effect any
      occurrence of national or international consequence, or any action, law or
      regulation, inquiry or other event, action or occurrence of any nature
      whatsoever which, in the sole opinion of the Underwriter, seriously
      affects, or could seriously affect, the financial markets, the condition
      (financial or otherwise), capital, property, assets, operations, business,
      affairs, profitability or prospects of the Corporation or the market price
      or value of the Common Shares or any other securities of the Corporation
      or the marketability of the Subscription Receipts;

	 	 	 	 
			(iv) 	
      any order or ruling is issued, or any inquiry, action,
      suit, proceeding or investigation (whether formal or informal) is
      instituted or announced or threatened in relation to the Corporation or
      any of the directors, officers or principal shareholders of the
      Corporation (other than one based solely upon the activities or alleged
      activities of the Underwriter) or any law or regulation is promulgated or
      changed which prevents or restricts trading in or the distribution of the
      Subscription Receipts, the Common Shares or any other securities of the
      Corporation (other than one based solely upon the activities or alleged
      activities of the Underwriter) or any law or regulation is promulgated or
      changed which prevents or restricts trading in or the distribution of the
      Subscription Receipts, the Common Shares or any other securities of the
      Corporation (other than one based solely upon the activities or alleged
      activities of the Underwriter) or any law or regulation is promulgated or
      changed which prevents or restricts trading in or the distribution of the
      Subscription Receipts, the Common Shares or any other securities of the
      Corporation;

18 

	 	(v) 	
      any order to cease or suspend trading in any securities
      of the Corporation is made, threatened or announced by any securities
      regulatory authority;

	 	 	 
	 	(vi) 	
      the Underwriter is not satisfied in its sole discretion
      with the results of the due diligence review and investigation of the
      Corporation conducted by the Underwriter; or

	 	 	 
	 	(vii) 	
      the Corporation is in breach of any term, condition,
      covenant or agreement contained in this Agreement or in any Subscription
      Agreement or any representation or warranty given by the Corporation in
      this Agreement or in any Subscription Agreement is or becomes untrue,
      false or misleading.

	 	(b) 	
      Rights on Termination: Any termination by the
      Underwriter pursuant to subsection 11(a) hereof shall be effected by
      notice in writing delivered by the Underwriter to the Corporation at the
      address thereof as set out in section 15 hereof. The right of the
      Underwriter to so terminate the obligations thereof under this Agreement
      is in addition to such other remedies as the Underwriter may have in
      respect of any default, act or failure to act of the Corporation in
      respect of any of the matters contemplated by this Agreement. In the event
      of a termination by the Underwriter pursuant to subsection 11(a) hereof
      there shall be no further liability on the part of the Underwriter to the
      Corporation or of the Corporation to the Underwriter except any liability
      which may have arisen or may thereafter arise under either section 12 or
      13 hereof.

	12. 	
      Indemnity and Contribution

	 	 	 	 
		(a) 	
      Indemnity: The Corporation hereby covenants and
      agrees to protect, indemnify and save harmless the Underwriter and each
      investment dealer which is a member of any agency group formed by the
      Underwriter in connection with the Offering, each of the associates and
      affiliates of each of them and the respective directors, officers,
      employees, shareholders, partners, advisors and agents of the Underwriter
      and each investment dealer which is a member of any agency group formed by
      the Underwriter in connection with the Offering and of each of the
      associates and affiliates of each of them (in this section 12 each an
      “Indemnified Person” and collectively the “Indemnified
      Persons”) from and against all losses (other than a loss of profits),
      claims, damages, payments, liabilities, costs and expenses (including the
      amount paid in settlement of any claim, action, suit or proceeding and the
      fees and expenses of counsel on a solicitor and his own client basis
      incurred obtaining advice in respect of, or in defending, any such claim,
      action, suit or proceeding), joint or several, of whatsoever nature or
      kind to which an Indemnified Person may become subject or otherwise
      involved in any capacity under statute or common law or otherwise caused
      or incurred by reason of or in any way arising, directly or indirectly,
      from, by virtue of, or related to, enforcing the provisions of this
      Agreement or any Subscription Agreement, or:

	 	 	 	 
			(i) 	
      the Underwriter having acted as the underwriter of the
      Corporation in respect of the Offering (other than by reason of the
      negligence, willful misconduct or bad faith of the Underwriter);

	 	 	 	 
			(ii) 	
      any statement or information contained in the Information
      which at the time and in light of the circumstances under which it was
      made containing or being alleged to contain a misrepresentation or being
      or being alleged to be untrue, false or
misleading;

19 

	 	(iii) 	
      the omission or alleged omission to state in the
      Information any material fact required to be stated therein or necessary
      to make any statement therein not misleading in light of the circumstances
      under which it was made;

	 	 	 
	 	(iv) 	
      any order made or inquiry, investigation or proceeding
      commenced or threatened by any officer or official of any securities
      commission or authority or any other competent authority, not based upon
      the activities or the alleged activities of the Underwriter or any member
      of any agency group formed by the Underwriter in connection with the
      Offering;

	 	 	 
	 	(v) 	
      the non-compliance or alleged non-compliance by the
      Corporation with any of the Securities Laws of the Offering Jurisdictions
      or any other applicable law in connection with the transactions
      contemplated herein;

	 	 	 
	 	(vi) 	
      any negligence or willful misconduct by the Corporation
      relating to or connected with the sale by the Corporation of the
      Subscription Receipts; or

	 	 	 
	 	(vii) 	
      the breach of, or default under, any term, condition,
      covenant or agreement of the Corporation made or contained herein or in
      any other document of the Corporation delivered pursuant hereto or made by
      the Corporation in connection with the sale of the Subscription Receipts
      or any representation or warranty of the Corporation made or contained
      herein or in any other document of the Corporation delivered pursuant
      hereto or in connection with the sale of the Subscription Receipts being
      or being alleged to be untrue, false or
misleading.

	 		
      If any matter or thing contemplated by this section 12
      shall be asserted against any Indemnified Person in respect of which
      indemnification is or might reasonably be considered to be provided
      hereunder, such Indemnified Person shall notify the Corporation as soon as
      possible of the nature of such claim and the Corporation shall be
      entitled, but not required, to assume the defence of any suit brought to
      enforce such claim; provided, however, that the defence shall be through
      legal counsel reasonably acceptable to the Indemnified Person and that no
      settlement may be made by the Corporation or the Indemnified Person
      without the prior written consent of the other of them and the Corporation
      shall not be liable for any settlement of any such claim unless it has
      consented in writing to such settlement.

	 	 	 	 
	 	(b) 	
      Counsel: In any claim referred to in section 12
      hereof, the Indemnified Person shall have the right to retain separate
      legal counsel to act on behalf of such Indemnified Person provided that
      the fees and disbursements of such separate legal counsel shall be paid by
      the Indemnified Person unless:

	 	 	 	 
	 		(i) 	
      the Corporation fails to assume the defence of such claim
      on behalf of the Indemnified Person within ten days of receiving notice of
      such claim;

	 	 	 	 
	 		(ii) 	
      the Corporation and the Indemnified Person shall have
      mutually agreed to the retention of such separate legal counsel;
  or

	 	 	 	 
	 		(iii) 	
      the named parties to such claim (including any added,
      third or impleaded parties) include both the Corporation and the
      Indemnified Person and the Indemnified Person has been advised in writing
      by legal counsel that representation of both the Corporation and the
      Indemnified Person by the same legal counsel would be inappropriate due to
      actual or potential differing interests between
them;

20 

in which event or events the fees and
disbursements of such separate legal counsel shall be paid by the Corporation,
subject as hereinafter provided. Where more than one Indemnified Person is
entitled to retain separate counsel in the circumstances described in this
subsection 12(b), all Indemnified Persons shall be represented by one separate
legal counsel and the fees and disbursements of only one separate legal counsel
for all Indemnified Persons shall be paid by the Corporation, unless: 

	 	(i) 	
      the Corporation and the Indemnified Persons have mutually
      agreed to the retention of more than one legal counsel for the Indemnified
      Persons; or

	 	 	 
	 	(ii) 	
      the Indemnified Persons have or any of them has been
      advised in writing by legal counsel that representation of all of the
      Indemnified Persons by the same legal counsel would be inappropriate due
      to actual or potential differing interests between
them.

	 	(c) 	
      Waiver of Right: The Corporation hereby waives its
      right to recover contribution from the Underwriter and the other
      Indemnified Persons with respect to any liability of the Corporation by
      reason of or arising out of the indemnity provided by the Corporation in
      this section 12; provided, however, that such waiver shall not apply in
      respect of the Underwriter for any liability directly caused or incurred
      by reason or arising out of any information or statements relating solely
      to, and provided by, the Underwriter or any failure by the Underwriter in
      connection with the Offering to provide to Purchasers any document which
      the Corporation is required to provide to the Purchasers and which the
      Corporation has provided or made available to the Underwriter to forward
      to the Purchasers.

	 	 	 	 	 
	 	(d) 	
      Contribution:

	 	 	 	 	 
	 		(i) 	
      In order to provide for just and equitable contribution
      in circumstances in which the indemnity contained in this section 12 is,
      for any reason of policy or otherwise, held to be unavailable, in whole or
      in part, to an Indemnified Person other than in accordance with the
      provisions of such section, the Corporation shall contribute to the
      aggregate losses (other than a loss of profit), claims, damages, payments,
      liabilities, costs and expenses of the nature contemplated by the said
      indemnity incurred or paid by the Corporation and the Indemnified Person,
      in such proportion as is appropriate to reflect not only the relative
      benefits received by the indemnitor on the one hand and the Underwriter on
      the other hand, but also the relative fault of the indemnitor and the
      Underwriter as well as any other equitable considerations; provided that
      the indemnitor shall in any event contribute to the amount paid or payable
      by the Underwriter as a result of such aggregate losses (other than a loss
      of profit), claims, damages, payments, liabilities, costs and expenses any
      excess of such amount over the amount of the consideration received by the
      Underwriter pursuant to this Agreement.

	 	 	 	 	 
	 		(ii) 	
      In the event that the Corporation is held to be entitled
      to contribution from the Underwriter under the provisions of any statute
      or law, the Corporation shall be limited to such contribution in an amount
      not exceeding the lesser of:

	 	 	 	 	 
	 			A. 	
      the portion of the amount of the loss or liability giving
      rise to such contribution for which the Underwriter is responsible as
      determined in accordance with paragraph 12(d)(i) above;
  and

21 

	 	B. 	
      the amount of the cash fee actually received from the
      Corporation under this Agreement and retained by the
  Underwriter.

	 	(iii) 	
      For purposes of this subsection 12(d), each party hereto
      shall give prompt notice to the other party hereto of any claim, action,
      suit or proceeding threatened or commenced in respect of which a claim for
      contribution may be made under this subsection
12(d).

	 	(e) 	
      Held in Trust: To the extent that the indemnity
      contained in subsection 12(a) hereof is given in favour of a Person who is
      not a party to this Agreement, the Corporation hereby constitutes the
      Underwriter as trustee for such Person for such indemnity and the
      covenants given by Corporation to such Person in this Agreement. The
      Underwriter hereby accepts such trust and will hold such indemnity and
      covenants for the benefit of such Persons. The benefit of such indemnity
      and covenants shall be held by the Underwriter in trust for the Persons in
      favour of whom such indemnities and covenants are given and may be
      enforced directly by such Persons.

	13. 	
      Expenses

	 	 
		
      The Corporation will be responsible, whether or not the
      Offering is completed, for all of its costs and the reasonable costs of
      the Underwriter in connection with the Offering including the reasonable
      fees and disbursements of counsel including counsel to the Underwriter to
      the extent they exceed $40,000, trust company fees, transfer agents fees,
      fees of outside consultants (if any, subject to the Corporation and the
      Underwriter agreeing on the use of such consultants in advance), filing
      fees, listing fees, the costs and expenses of any securities or other
      filings required to be made in connection with the Offering, printing
      costs, the preparation and holding of information meetings, the
      out-of-pocket expenses including all the Underwriter’s travel expenses in
      connection with due diligence and marketing meetings. The Underwriter
      agrees to consult with the Corporation prior to retaining outside counsel
      (other than Cassels, Brock & Blackwell LLP) in connection with its due
      diligence on the Corporation and agrees that all fees and expenses in
      connection with such due diligence shall be pre-approved by the
      Corporation, acting reasonably.

	 	 
	14. 	
      Conditions

	 	 
		
      All of the terms and conditions contained in this
      Agreement to be satisfied by the Corporation prior to the Closing Time
      shall be construed as conditions and any breach or failure by the
      Corporation to comply with any of such terms and conditions shall entitle
      the Underwriter to terminate the obligations thereof to complete the
      Closing by written notice to that effect given by the Underwriter to the
      Corporation prior to the Closing Time. It is understood and agreed that
      the Underwriter may waive in whole or in part, or extend the time for
      compliance with, any of such terms and conditions without prejudice to the
      rights thereof in respect of any other such term and condition or any
      other or subsequent breach or non-compliance; provided that to be binding
      on the Underwriter any such waiver or extension must be in writing and
      signed by the Underwriter. If the Underwriter shall elect to terminate the
      obligations thereof to complete the Closing as aforesaid, whether the
      reason for such termination is within or beyond the control of the
      Corporation, the liability of the Corporation hereunder shall be limited
      to the indemnity referred to in section 12 hereof, the right to
      contribution referred to in section 12 hereof and the payment of expenses
      referred to in section 13 hereof.

22 

	15. 	
      Notices

	 	 	 
		
      Any notice or other communication required or permitted
      to be given hereunder shall be in writing and shall be personally
      delivered or sent by fax on a Business Day to the following
    addresses:

	 	 	 
		(a) 	
      in the case of the Corporation:

	 	 	 
			
      Detour Gold Corporation

			
      BCE Place, 161 Bay Street, Suite 2700 
Toronto, ON M5J
      2S1

			
      Attention: Gerald S. Panneton, President & Chief
      Executive Officer

			
      Fax: 519-927-9978

	 	 	 
			
      with a copy to:

	 	 	 
			
      Lang Michener LLP

			
      BCE Place, 181 Bay Street, Suite 2500 
Ottawa, ON, M5J
      2T7

			
      Attention: Hellen Siwanowicz

			
      Fax: 416-304-3791

	 	 	 
		(b) 	
      in the case of the Underwriter:

	 	 	 
			
      Dundee Securities Corporation 
Suite 400, 20 Queen
      Street West 
Toronto, ON M5H 3R3

			
      Attention: Vilma Jones

			
      Fax: 416-350-3312

	 	 	 
			
      with a copy to:

	 	 	 
			
      Cassels, Brock & Blackwell LLP

			
      Suite 2100, Scotia Plaza, 40 King Street West
      
Toronto, ON M5H 3C2

			
      Attention: Heather Zordel

			
      Fax: 416-640-3217

	 	 	 
		
      Either the Corporation or the Underwriter may change its
      address for notice by notice given in the manner aforesaid. Any such
      notice or other communication shall be in writing, and unless delivered to
      a responsible officer of the addressee, shall be given by fax, and shall
      be deemed to have been given on the day on which it was delivered or sent
      by fax.

	 	 	 
	16. 	
      Sponsorship

	 	 	 
		
      The Underwriter agrees to act as sponsor for the listing
      of the Corporation on the Exchange if such sponsorship is required for a
      fee of $50,000.

	 	 	 
	17. 	
      Miscellaneous

	 	 	 
		(a) 	
      Governing Law: This Agreement shall be governed by
      and be interpreted in accordance with the laws of the Province of Ontario
      and the federal laws of Canada applicable

23 

	 		
      therein and the parties hereto irrevocably attorn to the
      jurisdiction of the courts of such province.

	 	 	 
	 	(b) 	
      Time of Essence: Time shall be of the essence of
      this Agreement.

	 	 	 
	 	(c) 	
      Survival: All representations, warranties,
      covenants and agreements of the Corporation herein contained or contained
      in any documents contemplated by, or delivered pursuant to, this Agreement
      or in connection with the purchase and sale of the Subscription Receipts
      shall survive the purchase and sale of the Subscription Receipts and the
      termination of this Agreement and shall continue in full force and effect
      for a period of two (2) years from the closing of the Offering for the
      benefit of the Underwriter and the Purchasers, regardless of any
      subsequent disposition of Subscription Receipts, or any investigation by
      or on behalf of the Underwriter with respect thereto.

	 	 	 
	 	(d) 	
      Counterparts: This Agreement may be executed by
      any one or more of the parties to this Agreement by fax other means of
      electronic communication capable of producing a printed copy or in any
      number of counterparts, each of which when so executed shall be deemed to
      be an original and all of which when taken together shall constitute one
      and the same agreement.

	 	 	 
	 	(e) 	
      Entire Agreement: This Agreement constitutes the
      entire agreement between the Corporation and the Underwriter in connection
      with the issue and sale of the Subscription Receipts by the Corporation
      and supersedes all prior agreements, understandings, negotiations and
      discussions, whether oral or written, including, but not limited to, any
      engagement agreement or term sheet relating to the Offering between the
      Corporation and the Underwriter, provided that it does not supersede the
      engagement letter dated October 5, 2005 between the Corporation and the
      Underwriter insofar as such agreement applies to the IPO
  Offering.

	 	 	 
	 	(f) 	
      Severability: If any provision of this Agreement
      is determined to be void or unenforceable in whole or in part, it shall be
      deemed not to affect or impair the validity of any other provision of this
      Agreement and such void or unenforceable provision shall be severed from
      this Agreement.

	 	 	 
	 	(g) 	
      Language: The parties hereto acknowledge and
      confirm that they have requested that this Agreement as well as all
      notices and other documents contemplated hereby be drawn up in the English
      language. Les parties aux présentes reconnaissent et confirment qu’elles
      ont convenu que la présente convention ainsi que tous les avis et
      documents qui s’y rattachent soient rédigés dans la langue
  anglaise.

24 

Would you kindly confirm the agreement of the Corporation to
the foregoing offer by executing four (4) duplicate copies of this Agreement and
thereafter returning four (4) such executed copies to Dundee Securities
Corporation. 

Yours truly,

DUNDEE SECURITIES CORPORATION 

	By:	 	 
	 	David G. Anderson 	 
	 	Sr. Vice-President &
      Director, 	 
	 	Investment Banking 	 

The undersigned hereby accepts and agrees to the foregoing as of
the ______ day of October, 2006. 

	 	DETOUR GOLD CORPORATION 
	 	 	  
	 	 	  
	 	By:	 
	 	 	Gerald S. Panneton 
	 	 	President & CEO 

25 

SCHEDULE “A” 
OFFICERS’ CERTIFICATE (GENERAL)

	TO: 	DUNDEE SECURITIES CORPORATION
      (THE “UNDERWRITER”) 
	 	 
	AND TO: 	CASSELS BROCK & BLACKWELL LLP
    
	 	 
	AND TO: 	THE PURCHASERS OF DETOUR GOLD
      CORPORATION SUBSCRIPTION RECEIPTS 

CERTIFICATE 

The undersigned, Gerald S. Panneton, President & Chief
Executive Officer of Detour Gold Corporation (the “Corporation”), and
Jeffrey Mason, Chief Financial Officer of the Corporation, hereby certify, for
and on behalf of the Corporation in their capacity as officers of the
Corporation and not in their personal capacity, after having made due inquiry,
that the following facts, matters and information are true and accurate and not
misleading in any material respect: 

	1. 	
      The facts, matters and information certified to herein
      are based on one or more of knowledge and information available or
      provided to us and our honest belief and all statements made in this
      certificate represent our reasonably held honest belief as to the facts,
      matters, information and belief possessed by us. We have used our best
      efforts to become informed of and about the facts, matters and information
      certified to herein and have sought the advice of counsel for the
      Corporation on those matters certified to herein which involve matters of
      laws and have relied upon such advice to the extent that those matters
      involve matters of law.

	 	 
	2. 	
      The Corporation has complied with all covenants and
      agreements contained in, and has satisfied all of the terms and conditions
      of, the Underwriting Agreement to be complied with and satisfied by the
      Corporation at or prior to the Closing Time.

	 	 
	3. 	
      The representations and warranties of the Corporation
      contained in the Underwriting Agreement are true and correct as of the
      Closing Time with the same force and effect as if made at and as of the
      Closing Time after giving effect to the transactions contemplated
      thereby.

	 	 
	4. 	
      Since July 19, 2006, except as disclosed in the
      Information, there has been no material adverse change (whether actual,
      anticipated, proposed, prospective or threatened) in the financial
      condition, assets, liabilities (contingent or otherwise), business,
      affairs, operations or prospects of the Corporation or in the capital of
      the Corporation.

	 	 
	5. 	
      No transaction of a nature material to the Corporation
      has been entered into by the Corporation, except for the Transaction and
      except as disclosed in the Information.

	 	 
	6. 	
      There are no contingent liabilities affecting the
      Corporation which are material to the Corporation.

	 	 
	7. 	
      No order, ruling or determination having the effect of
      ceasing or suspending the sale or ceasing, suspending or restricting
      trading in the securities underlying the Subscription Receipts, the common
      shares or any other securities of the Corporation has been issued or made
      by any stock exchange, securities commission or other regulatory authority
      and is continuing in effect and no proceedings,

A-1 

		
      investigations or enquiries for such purpose have been
      instituted or are pending, or are contemplated or threatened under any of
      the Securities Laws of the Offering Jurisdictions or by any stock
      exchange, securities commission or other regulatory authority.

	 	 
	8. 	
      There are no actions, suits, proceedings or enquiries
      pending or, to the best of their knowledge, threatened against or
      affecting the Corporation or to which any property or assets of the
      Corporation is subject, at law or in equity, or before or by any federal,
      provincial, state, municipal or other governmental department, commission,
      board, bureau, agency or instrumentality, domestic or foreign, which may,
      in any way, materially and adversely affect the Corporation.

	 	 
	9. 	
      No failure or default on the part of the Corporation
      exists under any law or regulation applicable to the Corporation or under
      any licence.

	 	 
	10. 	
      This certificate is being made and delivered pursuant to
      subparagraph 5(a)(ii)C of the Underwriting Agreement dated as of the date
      hereof between the Corporation and the Underwriter (the “Underwriting
      Agreement”) and we acknowledge that the addressees hereof will be
      relying on this certificate.

Unless otherwise defined herein, all words and terms with the
initial letter or letters thereof capitalized in this certificate and not
defined herein but defined in the Underwriting Agreement shall have the meanings
given to such capitalized words and terms in the Underwriting Agreement. The
undersigned acknowledge that they are familiar with the definitions given to the
capitalized words and terms in the Underwriting Agreement and such definitions
are hereby incorporated by reference. 

IN WITNESS WHEREOF the undersigned have executed this
certificate as of the _____ day of October, 2006. 

 

	 	Gerald S.
      Panneton, President 
	 	& Chief Executive Officer of 
	 	Detour Gold Corporation 
	 	  
	 	  
	 	Jeffrey Mason, Chief Financial Officer of

	 	Detour Gold Corporation 

A-2 

SCHEDULE “B” 

TERM SHEET – DETOUR GOLD CORPORATION PRIVATE 
PLACEMENT OF
SUBSCRIPTION RECEIPTS 

	Issuer: 	
      Detour Gold Corporation (“Detour” or the
      “Corporation”). 

	 
    	
      

      

	Issue: 	
      2,500,000 subscription receipts (“Subscription
      Receipts”) entitling the holder to acquire upon exercise thereof
      2,500,000 common shares of Detour (the “Shares”) on a private
      placement basis, representing approximately 25% of the Corporation’s
      outstanding common shares following the completion of this Private
      Placement Offering and the non-brokered private placement discussed below
      (assuming all subscription receipts issued pursuant to the brokered and
      non-brokered private placement were exercised). The Subscription Receipts
      will be automatically exercised into Shares at the closing of the
      Transaction (defined below) which will occur contemporaneously with
      closing of Detour’s initial public offering. 

	 
    	
      

      

	  	
      Contemporaneously with the completion of the Private
      Placement Offering, Detour intends to issue 2,500,000 Subscription
      Receipts entitling the holders to acquire upon exercise thereof 2,500,000
      common shares at $2.00 per Subscription Receipt on a non-brokered private
      placement basis, without any participation of, or any fees payable to,
      Dundee Securities Corporation (“Dundee”). 

	 
    	
      

      

	Issue Price: 	
      $2.00 per Subscription Receipt 

	 
    	
      

      

	Offering Size: 	
      $5,000,000 

	 
    	
      

      

	The Transaction: 	
      Pelangio Mines Inc. (“Pelangio”) and Detour
      entered into an asset purchase agreement dated August 21, 2006, as amended
      on September 21, 2006 and October 4, 2006 (the “Agreement”) for the
      purchase by Detour from Pelangio of the Detour Lake Property, including
      assets under option to Trade Winds Ventures Inc. (the “Property”),
      and subject to terms and conditions as summarized in news releases dated
      August 22, 2006 and September 22, 2006. The Agreement calls for the
      transfer to Detour of all of Pelangio’s interest in the Property, for
      total consideration of approximately $85,000,000, to be paid by Detour to
      Pelangio by way of a cash payment of $5,000,000, and 20,000,000 common
      shares of Detour, subject to adjustment in certain circumstances described
      in the Agreement (the “Transaction”). The conditions for closing
      the Transaction include, but are not limited to, 

	 
    		
      

	  	1. 	
      Regulatory approval; and 

	 
    		
      

	  	2. 	
      Pelangio Shareholders’ Approval by October 30, 2006 or
      such other date as is mutually agreed in writing by Detour and Pelangio
      (the “Pelangio Shareholders’ Approval”). 

	 
    	
      

      

	  	
      The Transaction is also conditional upon Detour raising a
      minimum of $10 million pursuant to a private placement financing and upon
      Detour issuing pursuant to its initial public offering a minimum of
      5,000,000 shares and a maximum of 10,000,000 shares for minimum gross
      proceeds of $15,000,000 by January 30, 2007 or such other date as mutually
      agreed in writing by Detour and Pelangio. 

B-1 

	Use of Proceeds: 	
      The gross proceeds from the sale of Subscription Receipts
      shall be used (i) to make the necessary payments to Pelangio in connection
      with the Transaction, including, if necessary, payments of behalf of
      Pelangio (the “Property Cash Payments”) in connection with the
      Property pursuant to the Agreement, and to repay the $1,000,000 loan from
      Hunter Dickinson Inc. to Detour plus accrued interest (the “HDI
      Loan”) (ii) to fund incorporation expenses and necessary costs of the
      Transaction and the Private Placement Offering and (iii) for general
      working capital purposes. 

	 
    	
       

	Escrowed Proceeds: 	
      At the Closing of the Private Placement Offering, 25%
      (being $1,250,000) of the gross proceeds of the Offering will be remitted
      to Detour at Closing. The balance (75% of the gross proceeds, being
      $3,750,000) shall be deposited in an escrow account (the “Escrowed
      Proceeds”) held by either (i) the Computershare Trust Company of
      Canada, in its capacity as subscription receipt agent, or such other trust
      company as may be acceptable to the Corporation and the Underwriter; or
      (ii) the Underwriter, in either case until the Pelangio Shareholders’
      Approval has been obtained (currently Pelangio’s shareholders’ meeting is
      scheduled to occur on October 30, 2006). 

	 
    	
       

	  	1. 	
      If the Agreement is terminated because Pelangio
      Shareholders’ Approval for the sale of the Property is not received, the
      Corporation shall remit to the holders of the Subscription Receipts, or in
      the case of (a) below the Subscription Receipt Agent or the Underwriter,
      as applicable, shall remit to the holders of all of the Subscription
      Receipts in exchange for the cancellation of such Subscription Receipts:
      

	 
    	
	  		
      (a) $1.50 per Subscription Receipt plus an amount equal
      to a pro rata share of interest earned on the Escrowed Proceeds, which
      amount shall be a return of the Subscription Receipt holders’ subscription
      amount; 

	 
    	
	  		
      (b) a 1/5,000,000th share per Subscription
      Receipt of any unexpended cash proceeds held by Detour after deducting
      Property Cash Payments and repayment of the HDI Loan and any corporate
      expenses, legal fees, brokers commissions, excluding costs incurred by
      Hunter Dickinson Inc., and 

	 
    	
	  		
      (c) a 1/5,000,000th share per Subscription
      Receipt of any Pelangio common shares received by Detour pursuant to the
      Agreement or any cash proceeds from the sale thereof. 

	 
    	
	  	2. 	
      If after Pelangio Shareholders’ Approval is obtained, the
      Agreement is terminated because the purchase of the Property does not
      occur by January 30, 2007, or such other date as is mutually agreed in
      writing by Detour and Pelangio, such date to be not later than April 30,
      2007, the Corporation shall remit to the holders of all of the
      Subscription Receipts, in exchange for the cancellation of such
      Subscription Receipts: 

	 
    	
       

	  		
      (a) a 1/5,000,000th share per Subscription
      Receipt of any unexpended cash proceeds held by Detour after deducting
      Property Cash Payments and repayment of the HDI Loan and any corporate
      expenses, legal fees, and brokers commissions, and 

	 
    	
       

	  	
      
	
      (b) a 1/5,000,000th share per Subscription
      Receipt of any Pelangio 

B-2 

	  	 	common shares received by Detour pursuant to the
      Agreement or any cash proceeds from the sale thereof. 
	  	 	
      

	  	3. 	
      If after Pelangio Shareholders’ Approval is obtained, the
      Agreement is terminated in the event of an Indirect Acquisition or a
      Property Acquisition (as defined in the Agreement) and the Termination Fee
      (as defined in the Agreement) is paid to the Corporation, a Subscription
      Receipt holder may elect to (i) receive $2.20 cash per Subscription
      Receipt (“Proceeds of Disposition”) in exchange for the
      cancellation of such holder’s Subscription Receipts, or (ii) exercise such
      Subscription Receipts to acquire one Share of the Corporation for each
      Subscription Receipt on the basis that the Corporation will remain a
      private corporation, with management mandated to seek and develop other
      investment opportunities. 

	  		
      

	  		
      A Subscriber who is a non-resident of Canada for the
      purposes of the Income Tax Act (Canada) (“ITA”) and who
      elects to receive Proceeds of Disposition shall obtain and deliver to the
      Corporation a certificate pursuant to subsection 116(2) of the ITA having
      a certificate amount not less than the Proceeds of Disposition. If a
      certificate is not so delivered prior to the time for payment of the
      Proceeds of Disposition, the Corporation shall be entitled to withhold 25%
      of the Proceeds of Disposition. 

	  	
      
	
      

	Listing: 	
      The Corporation will use its reasonable commercial
      efforts to become a reporting issuer in all of the provinces of Canada
      other than Québec by filing a final prospectus that will result in the
      initial public offering (“IPO”) of common shares of the Corporation and to
      obtain a listing on the Toronto Stock Exchange or the TSX Venture Exchange
      by January 30, 2007 or such other date as mutually agreed in writing by
      Detour and Pelangio, such date to be not later than April 30, 2007.
  

	  	
       

	Offering Jurisdictions: 	
      Private placement to “accredited investors” in the
      provinces of British Columbia, Alberta and Ontario; in the United States
      pursuant to Rule 144A and/or Regulation D of the U.S. Securities Act of
      1933, as amended; and offshore. 

	  	
       

	Form of Offering: 	
      Bought, subject to a mutually acceptable Underwriting
      Agreement containing “disaster out”, “regulatory out” and “material
      adverse change out” clauses running to the Closing Date. 

	  	
       

	Resale Restriction: 	
      Investors in this offering will be subject to a hold
      period that will extend until not later than the earlier of (i) four (4)
      months following the Corporation becoming a reporting issuer and (ii) the
      issuance of a receipt for a final prospectus for the IPO, provided that
      the date such receipt is issued is at least four (4) months after the
      distribution date. 

	  	
       

	Contractual Escrow: 	
      Senior officers, directors, certain insiders and the
      founding shareholders of Detour will, as a condition of Closing of the
      Private Placement Offering, enter into a contractual escrow with Dundee
      with respect to all of their shares of Detour, which escrow will run for
      six (6) months from the completion of the IPO. The contractual escrow will
      be in addition to any regulatory escrow. 

	  	
       

	Expenses: 	
      The Corporation will pay all reasonable fees and expenses
      incurred in connection with the Private Placement Offering, including the
      reasonable 

B-3 

	  	
      fees and expenses of Dundee’s counsel in excess of
      $40,000, and all reasonable out-of-pocket costs and expenses incurred by
      Dundee, whether or not the offering is completed. 

	  	
       

	Closing Pre-Conditions: 	
      Prior to Closing, Dundee shall be provided with evidence
      of, and shall be satisfied that: 

	  	
       

	  	1. 	
      Dundee has received and had an opportunity to review a
      copy of the fairness opinion provided to the directors of Pelangio by IBK
      Capital Corporation. 

	  		
       

	  	2. 	
      The Corporation shall (i) execute and deliver the
      standard documentation including an underwriting agreement and
      subscription agreements containing standard representations and
      warranties, covenants, indemnities, termination provisions and other
      provisions (ii) deliver standard legal opinions and (iii) comply with all
      applicable legal and regulatory requirements. 

	  		
       

	  	3. 	
      Dundee has received and had an opportunity to review all
      technical data as reasonably requested. 

	  	
       

	Underwriter: 	
      Dundee Securities Corporation. 

	  	
       

	Underwriting Fee: 	
      4% (not payable on the non-broker private placement
      described above under “Issue”). 

	  	
       

	Closing Date: 	
      On or before October 16, 2006 or such other date as
      agreed upon by the Corporation and Dundee. 

B-4 

SCHEDULE “C” 
UNDERWRITER’S CERTIFICATE (FOR U.S.
OFFERING) 

In connection with the private placement in the United States
of Subscription Receipts of Detour Gold Corporation (the “Corporation”)
pursuant to the Underwriting Agreement dated for reference October ___, 2006,
among the Corporation and the Underwriter named therein (the “Underwriting
Agreement”), the undersigned Underwriter and Dundee Securities Inc., as the
U.S. Affiliate, do hereby certify as follows: 

(a)        the Subscription
Receipts have been offered and sold in the United States or to or for the
benefit or account of U.S. Persons only through the U.S. Affiliate, which was on
the dates of such offers and sales, and is on the date hereof, a duly registered
broker or dealer pursuant to Section 15(b) of the 1934 Act and under the
securities laws of each state in which such offers and sales were made (unless
exempted from the respective state’s broker-dealer registration requirements)
and was and is a member in good standing with the National Association of
Securities Dealers, Inc.; 

(b)        all offers
and sales of Subscription Receipts in the United States or to or for the benefit
or account of U.S. Persons have been effected through the U.S. Affiliate in
accordance with all applicable federal and states laws and regulations governing
the registration and conduct of securities brokers and dealers; 

(c)        each offeree
that was in the United States or for the benefit or account of a U.S. Person was
provided with a copy of the Subscription Agreement relating to the offering of
the Subscription Receipts; 

(d)        immediately prior
to transmitting the Subscription Agreement to such offerees, we had reasonable
grounds to believe and did believe that each such offeree was a U.S. Accredited
Investor and, on the date hereof, we have reasonable grounds to believe and do
believe that each person in the United States and each U.S. Person that we have
arranged to purchase Subscription Receipts from the Corporation is a U.S.
Accredited Investor; 

(e)        no form of
general solicitation or general advertising (as those terms are used in
Regulation D) was used by us, including any advertisements, articles, notices or
other communications published in any newspaper, magazine or similar media or
broadcast over radio or television, or any seminar or meeting whose attendees
had been invited by general solicitation or general advertising, in connection
with the offer or sale of the Subscription Receipts in the United States; 

(f)        the offering
of the Subscription Receipts has been conducted in accordance with the terms of
the Underwriting Agreement; and 

(g)        prior to any
sale of Subscription Receipts in the United States or to or for the benefit or
account of a U.S. Person we caused the purchaser to execute a Subscription
Agreement, including the Subscribers Representations, Warranties and
Acknowledgements attached thereto. 

Terms used in this certificate have the meanings given to them
in the Underwriting Agreement unless otherwise defined herein. 

Dated this ________ day of October, 2006. 

	DUNDEE SECURITIES CORPORATION 	 	DUNDEE SECURITIES INC. 
	 	  	 	 	  
	By: 	 	 	By: 	 
	 	David Anderson, Senior Vice 	 	 	Robert Sellars 
	 	President & Director 	 	 	  

C-1Filed by Automated Filing Services Inc. (604) 609-0244 - Detour Gold Corporation - Exhibit 4.03

GEOLOGICAL, MANAGEMENT AND 
ADMINISTRATION SERVICES
AGREEMENT 

THIS AGREEMENT dated for reference the 19th
day of July 2006 

BETWEEN: 

  
    
      
        HUNTER DICKINSON INC., a company incorporated
          under the federal laws of Canada having a registered office at Suite
          1500, 1055 West Georgia Street, Vancouver, British Columbia, V6E 4N7
        

        (herein “HDI”) 

      

    

  

OF THE FIRST PART 

AND: 

  
    
      
        DETOUR GOLD CORPORATION., a British Columbia
          company having a business office at Suite 1020, 800 West Pender Street,
          Vancouver, British Columbia, V6C 2V6 

        (herein “Detour”) 

      

    

  

OF THE SECOND PART 

WHEREAS: 

(A)                   
HDI is a company established to provide geological, corporate development,
administrative and management services for public companies involved in the
acquisition and exploration of natural resource properties; 

(B)                   
Detour and HDI have agreed that HDI will provide the services more
particularly described herein on the terms and conditions of this Agreement.

NOW THEREFORE in consideration of the premises and
mutual covenants herein contained, the parties hereto agree as follows:

PART 1 

ADMINISTRATION SERVICES 

1.1                   
During the term of this Agreement HDI shall provide Detour and/or
Detour’s affiliates with the following administration services: 

(a)          
use of HDI’s business premises located at Suite 1020, 800 West Pender Street,
Vancouver, British Columbia, and at BCE Place Canada Trust Tower, 161 Bay
Street, 

- 2 - 

Suite 2700, Toronto, Ontario on a
non-exclusive basis with access to the reception area, the boardroom and other
offices as available and agreed to from time to time; 

(b)          
use of HDI’s reception and telephone answering personnel; 

(c)          
reasonable use of office equipment including telephone systems, photocopying,
telecopier and computers, and other equipment as required; 

(d)          
administration service personnel including accounting, purchasing, secretarial
and like support staff on an “as needed” and “as available” basis. 

1.2                   
The administration costs payable by Detour to HDI for the
administration services shall be invoiced by HDI on a monthly basis based on a
full cost-recovery basis to HDI and which costs will be reasonably described in
the invoice. The costs shall represent a reasonable pro-rationing (including
where practical time sheet tracking of personnel) of HDI’s costs amongst all its
client companies with regard to the level of service requirements of each such
company. The costs will be reviewed from time to time and the basis may be
changed on notice by HDI in the event Detour’s use of the administration
services are in excess of historical experience or HDI’s costs change or in the
event a greater or lesser number of other public companies are using HDI’s
services. 

1.3                   
Detour acknowledges that HDI has or intends to enter into similar
agreements with other public companies and HDI may add, delete or vary such
arrangements with such other companies in HDI’s sole discretion.

PART 2 

GEOLOGICAL AND MANAGEMENT SERVICES 

2.1                   
In addition to the administration services, HDI shall supply technical,
geological, management and corporate development services to Detour on a
non-exclusive and on an “as needed” and “as available” basis. HDI shall, at
least annually, review the resource property portfolio of Detour together with
Detour’s board of directors and such other independent consultants as Detour
desires to involve with a view to recommending and implementing programs of
exploration. 

2.2                   
Such recommendations shall be accompanied by reasonable details of
programs including scheduling, description of activities and related budgets.
Upon acceptance (with or without variations) of such recommendations by Detour
(which acceptance is in the sole discretion of Detour) HDI shall generally carry
out the program as the agent of Detour and shall: 

(a)          
retain and/or itself provide the necessary technical and support staff; 

(b)         
negotiate third party service contracts and provide them to Detour for execution
or execute same as agent for Detour. Such third party contracts shall generally
include geophysical and geochemical surveys, sampling, line cutting, diamond
drilling, 

- 3 - 

engineering, environmental, independent
analyses and reporting and such other work as has been recommended by HDI or
approved by Detour; 

(c)         
 apply for necessary government exploration or work permits and licences;

(d)          
provide field staff to supervise and oversee the work of HDI staff and other
contractors and subcontractors; 

(e)          
obtain insurance and assist in making application and relevant filings
pertaining to the maintenance of titles to the property as well as filing of
assessment work respecting exploration work carried out and paid for by
Detour;

(f)            
general administration of the exploration program including accounting, payment
of third party invoices and reporting thereon; and 

(g)            
provide assistance with corporate awareness programs regarding Detour. 

2.3                   
For purposes of administration of any exploration program Detour shall
be deemed to be the operator of all of Detour’s joint venture agreements and
HDI’s function shall be as general advisor and agent. 

2.4                   
The geological and management services costs payable by Detour to HDI
for the above technical services shall be included with and agreed as part of
budgets which are provided to and subject to the approval of Detour. Except for
overruns, significant variations (greater than 50%) in the planned programs
shall require the prior approval of Detour but the costs incurred with respect
to such overruns and variations shall notwithstanding, be for the account of
Detour. The geological and management services costs payable by Detour to HDI
for the geological and management services shall be invoiced by HDI on a monthly
basis based on a full cost-recovery basis to HDI and which costs will be
reasonably described in the invoice. The costs shall represent a reasonable
pro-rationing (including where practical time sheet tracking of personnel) of
HDI’s costs amongst all its client companies with regard to the level of service
requirements of each such company. The costs will be reviewed from time to time
and the basis may be changed on notice by HDI in the event Detour’s use of the
geological and management services are in excess of historical experience or
HDI’s costs change or in the event a greater or lesser number of other public
companies are using HDI’s services. 

PART 3 

ADDITIONAL RIGHTS AND DUTIES OF HDI 

3.1                   
Detour agrees to indemnify and hold harmless HDI (and any subsidiary),
their officers, directors, employees and agents, from any and all claims, suits
or demands arising out of the performance of HDI hereunder. Without restricting
the generality of the foregoing Detour agrees to promptly pay HDI invoices and
to advance funds against written cash calls wherever reasonably required by HDI
to pay for or secure services, to secure equipment, contractors, deposits and
the like and to honour all agreements which HDI enters into in good faith as
agent 

- 4 - 

on behalf of Detour with third parties. The foregoing indemnity
shall not apply to losses, claims or suits arising out of HDI’s negligence or
wilful misconduct. 

3.2                   
HDI agrees to carry out its advisory, administrative and operating activities
hereunder in a competent and workmanlike manner, in good faith with a view to
the best interests of Detour. 

3.3                   
HDI shall take reasonable precautions to ensure that only authorized personnel
of HDI and Detour are provided with information respecting the business affairs,
exploration results and properties of Detour. HDI shall limit access to
information respecting exploration developments to its own staff on a
need-to-know basis and shall ensure that its personnel acknowledge the need to
protect confidentiality of information respecting Detour which is developed by
or comes into the possession of HDI and that they are in a “special
relationship” with Detour as contemplated by securities legislation. HDI shall
generally maintain confidentiality of Detour’s affairs and shall take reasonable
precautions to protect the integrity and security of information developed for
Detour. 

3.4                   
HDI shall not compete with Detour and will not endeavour to acquire any
interest in any property of Detour or related to or which can reasonably be said
to be derived from any property of Detour, without the prior written consent of
Detour which consent shall be in Detour’s sole discretion. 

3.5                   
HDI shall not be obligated whatsoever to provide any information or
advice to Detour respecting resource property prospects and opportunities which
come to the attention of HDI personnel unless such prospects and opportunities
can be clearly demonstrated to be presented primarily as a result of the
provision of services by HDI to Detour under the terms of this Agreement. Detour
acknowledges that HDI is entering into substantially identical agreements with
other resource companies and as a consequence HDI will be exposed to resources
property opportunities in the ordinary course and may receive resource property
prospects and opportunities as a consequence of services to such other resource
companies in the ordinary course. As well, Detour acknowledges that HDI may
receive unsolicited proposals and opportunities from sources wholly unrelated to
Detour or any of the other client companies of HDI and those opportunities are
acknowledged by Detour to be the sole property of HDI. 

3.6                   
HDI may be retained by other client companies or terminate its
relationship with any client company in its sole discretion and without notice
to any client company. 

PART 4 

OTHER RIGHTS AND DUTIES OF DETOUR 

4.1                   
Any authorized representative of Detour shall at all reasonable times
have full access to all of the records or information of HDI pertaining to the
affairs of Detour. Such access shall be extended to the auditors and other
professional advisors of Detour. 

- 5 - 

4.2                   
HDI shall indemnify and save harmless Detour from any claim, suit or demand
which may arise by virtue of any improper act or gross negligence of HDI
occurring as a result of the performance by HDI of this Agreement. 

PART 5 

TERMINATION 

5.1                   
This Agreement may be terminated by either party hereto on 90 days written
notice to the other party. From the date of notice to the date of termination,
HDI shall not enter into any new arrangements on behalf of Detour (unless
already legally committed to do so) without Detour’s prior consent. 

5.2                   
In the event of termination during the course of implementation of any
exploration or other program the parties shall negotiate in good faith to
minimize any interruption of such program and to ensure that the costs related
thereto are properly accounted for and duly discharged by Detour.
Notwithstanding any termination of this Agreement Detour shall continue to be
bound by any agreements contracted for on its behalf by HDI prior to
termination. 

5.3                   
The confidentiality and non-competition provisions of this Agreement shall
survive any termination of this Agreement and continue in full force and effect
for three years thereafter. 

5.4                   
Upon termination hereof Detour shall cease to use the HDI premises,
phone number, etc. and shall make arrangements for the orderly transition of
administrative and accounting responsibilities by advice letter to HDI. HDI
shall turn over all business, technical, and like records pertaining to the
affairs and properties of Detour as may be in the possession of HDI although HDI
may retain copies for its own records where reasonably required. 

PART 6 

MISCELLANEOUS 

6.1                   
This Agreement is not assignable by the parties and any purported
assignment thereof is void ab initio. 

6.2                   
This Agreement shall be binding upon and enure to the benefit of the
parties hereto and their respective successors. 

6.3                   
This Agreement shall be construed in accordance with the laws of the
province of British Columbia and the parties agree to attorn to such
jurisdiction in the event of a dispute hereunder. 

- 6 - 

6.4                   
Notices shall be considered effectively given hereunder when personally
delivered to a party by personal service or by fax, in each case addressed to
the President. 

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

HUNTER DICKINSON INC. 

Per:  
_______________________________________
      
   David J. Copeland 

 

DETOUR GOLD CORPORATION 

  Per:   _______________________________________

           Gerald S. Panneton

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