Document:

QKL
STORES INC.

     

    AMENDMENT
NO. 1 TO

    2009
OMNIBUS SECURITIES AND INCENTIVE PLAN

     

    EMPLOYEE
STOCK OPTION AGREEMENT

     

    THIS
AGREEMENT made as of January 30, 2010, by and between QKL Stores, Inc., a
Delaware corporation (the “Company”), and
Chaoyang Li (the “Optionee”).

    

    WHEREAS, on September 14, 2009 the
Company and the Optionee entered into an Employee Stock Option Agreement (the
“Option Agreement”); and

    

    WHEREAS, the Company and Optionee
desire to amend the Option Agreement to correct the exercise price in the Option
Agreement to be the closing price of the Company’s common stock on September 14,
2009.

    

    NOW THEREFORE, the parties do hereby
agree as follows.

     

    1.           The
parties hereto agree to amend Section 2 of the Option Agreement, with
retroactive effect to September 14, 2009 as follows:

     

    “2.  Grant of
Option

     

    The
Committee hereby grants to the Optionee an option to purchase 20,000 shares of
the Company’s Common Stock (“Shares”) for an Option price per Share equal to
$7.50 (not less than the fair market value of a Share on the date of the grant
of the Option (the “Option”).”

     

    2.           Except
as specifically amended hereby, the Option Agreement shall continue in full
force and effect and the parties hereby reaffirm the same.

     

    [SIGNATURE
PAGE FOLLOWS]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	
                OPTIONEE

              	 
      	
                QKL
      STORES INC.

              
	 
      	 
      	 
      
	
                /s/ Chaoying Li

              	 
      	
                By:

              	
                /s/ Zhuangyi Wang

              
	 
      	 
      	 
      	 
      
	
                Name:  Chaoyang
      Li

              	 
      	
                Its:

              	
                Chief
      Executive OfficerUnassociated Document

     

    Exhibit
10.1

    

    [Thompson
Creek Letterhead]

    

    July 15,
2010

    

    Royal
Gold, Inc.

    1660
Wynkoop St.

    Denver,
CO 80202

    

    Re:         Milligan
Project Gold Streaming

    

    Gentlemen:

    

    This
letter confirms our agreement regarding the terms and conditions under which
Royal Gold, Inc. (“Royal
Gold”) will purchase Refined Gold from Terrane Metals Corp. (“Terrane”) or an Affiliate of
Thompson Creek who holds a direct interest in the Milligan Property (the “Milligan Sub”) pursuant to a
form of Purchase and Sale Agreement between Royal Gold, a wholly owned
subsidiary of Royal Gold to be identified after the date hereof (“Royal Gold Sub”), Milligan Sub
and Thompson Creek Metals Company Inc. (“Thompson Creek”) that is
attached hereto as Exhibit 1 (the “Gold Purchase
Agreement”).  Each of Royal Gold and Thompson Creek are
referred to herein as a “Party,” and collectively, the
“Parties”.  All
capitalized terms used in this letter not otherwise defined herein are defined
in Exhibit
1.  Thompson Creek has agreed to acquire Terrane by means of an
agreement to implement a Plan of Arrangement under law of British Columbia,
Canada (the “Acquisition
Agreement”) pursuant to which Thompson Creek will acquire all of the
outstanding common stock of Terrane (the “Acquisition”).  Upon
satisfaction of the conditions set forth in this letter agreement, the Parties
hereby agree to enter into the Gold Purchase Agreement under which Royal Gold
Sub will purchase, and Milligan Sub will sell, Refined Gold.

    

    In consideration of the mutual
promises, representations, warranties, covenants, and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties mutually agree as follows:

    

    1.           Gold Purchase
Agreement.  At the Closing (as defined in Section 4), each
of Royal Gold and Thompson Creek shall, and each shall cause Royal Gold Sub and
Milligan Sub, respectively, to:

    

    
      	
               
      

            	
              (a)

            	
              enter
      into the Gold Purchase Agreement substantially in the form attached as
      Exhibit 1
      hereto; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              execute,
      deliver and perform the agreements, documents, acts and undertakings to be
      completed on or before the Effective Date pursuant to the Gold Purchase
      Agreement, including, without limitation: (i) payment of the Initial
      Deposit upon execution of the Gold Purchase Agreement, and (ii) execute
      and deliver any intercreditor agreements as may be required pursuant to
      Section
      8.6(a) of the Gold Purchase
Agreement.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              2.

            	
              Representations and
      Warranties.

            

    

    

    2.1         Royal Gold.  Royal
Gold, acknowledging that Thompson Creek is entering into this letter agreement
in reliance thereon, hereby makes the representations and warranties set forth
on Schedule 1
hereto, with respect to Royal Gold.

    

    2.2         Thompson
Creek.  Thompson Creek, acknowledging that Royal Gold is
entering into this letter agreement in reliance thereon, hereby makes the
representations and warranties set forth on Schedule 2
hereto

    .

    2.3         Terrane.  Based on
the actual knowledge of the Chief Executive Officer, Chief Financial Officer and
Chief Operating Officer on the date of this Agreement, Thompson Creek knows of
no reason why it would need to qualify, or would not be able to deliver, the
representations and warranties of Milligan Sub contained in Schedule A-1 of the
Gold Purchase Agreement.

    

    
      	
              3.

            	
              Pre-Closing
      Covenants.

            

    

    

    3.1         Consummation of the
Acquisition.  Subject to the terms and conditions of this
letter agreement and the Acquisition Agreement, Thompson Creek will use its
commercially reasonable efforts to take, or cause to be taken, all actions and
to do, or cause to be done, all things necessary, proper or advisable, subject
to Applicable Laws, promptly to consummate the Acquisition and related
transactions contemplated by the Acquisition Agreement provided that nothing
herein restricts the ability of Thompson Creek to rely on any and all conditions
in its favor under the Acquisition Agreement in its sole
discretion.  During the period commencing on the date hereof and
ending on the Closing, Thompson Creek shall confer in good faith on a regular
basis with Royal Gold regarding matters related to the Acquisition and the
general status of Thompson Creek’s evaluation of the operations of Terrane,
including the Milligan Project and the Milligan Properties and including prompt
written notice of any change in the amount or form of consideration Thompson
Creek proposes to pay in connection with the Acquisition.

    

    3.2         Access to
Information.  Prior to the Closing, Royal Gold shall be
entitled, through its officers, employees and representatives (including its
legal advisors and accountants) to make and continue such investigation of the
properties, businesses and operations and books and records of Thompson Creek
and Terrane.  Any such investigation and examination shall be
conducted during regular business hours with reasonable cooperation among the
parties.  No investigation pursuant to this Section 3.2 shall
affect any representation or warranty in this letter agreement of any Party or
any condition to the obligations of the Parties hereunder.

    
      
         

      

      
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    3.3         Updates.  Prior to
the Closing:

    

    
      	
               
      

            	
              (a)

            	
              Prior
      to Closing, Thompson Creek shall promptly disclose its knowledge of the
      following to Royal Gold: (i) the occurrence, or failure to occur, of any
      event that the occurrence or failure of which has caused or could
      reasonably be expected to result in Thompson Creek’s failure to satisfy
      any condition specified herein; (ii) any failure of Thompson Creek to
      comply with or satisfy in any material respect any covenant, condition or
      agreement to be complied with or satisfied prior to Closing by Thompson
      Creek hereunder; (iii) any fact, condition, occurrence or change, that, to
      the knowledge of Thompson Creek, has had or could reasonably be expected
      to have or result in a material adverse effect on the Milligan Project,
      Terrane or Thompson Creek; (iv) any written notice or other communication
      from any Governmental Authority in connection with the transactions
      contemplated hereby; and (v) any litigation, legal action, arbitration,
      proceeding, mediation, demand, claim or investigation (collectively,
      “Legal
      Proceedings”) commenced or, to the knowledge of Thompson Creek,
      threatened against, relating to or involving or otherwise affecting
      Thompson Creek or Terrane that relate to the consummation of the
      Acquisition or the transactions contemplated
  hereby.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Prior
      to Closing, Royal Gold shall promptly disclose its knowledge of the
      following to Thompson Creek: (i) the occurrence, or failure to occur, of
      any event that the occurrence or failure of which has caused or could
      reasonably be expected to result in Royal Gold’s failure to satisfy any
      condition specified herein; (ii) any failure of Royal Gold to comply with
      or satisfy in any material respect any covenant, condition or agreement to
      be complied with or satisfied prior to Closing; (iii) any fact, condition,
      occurrence or change, that, to the knowledge of Royal Gold, has had or
      could reasonably be expected to have or result in a material adverse
      effect on Royal Gold. (iv) any written notice or other communication from
      any Governmental Authority in connection with the transactions
      contemplated hereby; and (v) any Legal Proceedings commenced or, to the
      knowledge of Royal Gold, threatened against, relating to or involving or
      otherwise affecting Royal Gold or Terrane that relate to the consummation
      of the Acquisition or the transactions contemplated
  hereby.

            

    

     

    3.4         Exclusivity.  Immediately
after the execution of this letter agreement by Thompson Creek and Royal Gold
and continuing through Closing or the earlier termination of this letter
agreement:

    

    (a)           Thompson
Creek shall, and shall cause its Representatives to, cease and terminate any
existing activities, discussions or negotiations with any parties conducted
heretofore with respect to any action that would constitute an Alternative Gold
Financing Transaction and shall notify each such party that Thompson Creek and
its Representatives no longer seek or request the making of any Alternative Gold
Financing Transaction, and withdraws any consent theretofore given to the making
of a Alternative Gold Financing Transaction.  Neither Thompson Creek
nor its Representatives shall directly or indirectly, solicit, initiate or
conduct any discussions or negotiations with, or provide any information to or
otherwise cooperate in any other way with, or facilitate or encourage any effort
to attempt to, or enter into any agreement or understanding with, any Person or
group of Persons regarding any Alternative Gold Financing
Transaction.  Thompson Creek shall promptly (and in any event within
two days) notify Royal Gold of the receipt by Thompson Creek or any of its
Representatives of any inquiries, or proposals or requests for information
concerning an Alternative Gold Financing Transaction and shall provide Royal
Gold with a copy of all written materials relating to such inquiries, proposals
or requests.  An “Alternative Gold Financing
Transaction” means a transaction between Thompson Creek or any of its
Affiliates and any Person (including Terrane and its affiliates), other than
Royal Gold, relating to the purchase and sale of gold from any portion of the
Milligan Property, including without limitation: (i) a gold royalty on
production from the Milligan Property, (ii) an amount of gold based on
production from any portion of the Milligan Property; or (iii) any participating
interest in gold based on production from any portion of the Milligan Property
(including granting any interest in a gold royalty stream), or any transaction
having a similar economic effect, but excluding any (i) gold spot sales, (ii)
gold forward sales or options or other gold sales or gold loans to a financial
institution or bullion bank or (iii) internal transfers among Thompson Creek and
its Affiliates,.  A “Person” includes an
individual, corporation, body corporate, limited or general partnership, joint
stock company, limited liability corporation, joint venture, association,
company, trust, bank, trust company, Governmental Authority or any other type of
organization, whether or not a legal entity.  “Representatives” means, as to
any Person, such Person's affiliates and its or their directors, officers,
employees, agents, advisors or other representatives (including, without
limitation, financial advisors, financing sources, counsel and accountants);
and

    
      
         

      

      
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    (b)           Royal
Gold shall, and shall cause its Representatives to, cease and terminate any
existing activities, discussions or negotiations with any parties conducted
heretofore with respect to any action that would constitute an Alternative Royal
Gold Financing and shall notify each such party that Royal Gold and its
Representatives no longer seek or request the making of any Alternative Royal
Gold Financing and withdraws any consent theretofore given to the making of an
Alternative Royal Gold Financing.  Neither Royal Gold nor its
Representatives shall directly or indirectly, solicit, initiate or conduct any
discussions or negotiations with, or provide any information to or otherwise
cooperate in any other way with, or facilitate or encourage any effort to
attempt to, or enter into any agreement or understanding with, any Person or
group of Persons regarding any Alternative Royal Gold
Financing.  Royal Gold shall promptly (and in any event within two
days) notify Thompson Creek of the receipt by Royal Gold or any of its
Representatives of any inquiries, or proposals or requests for information
concerning an Alternative Royal Gold Financing and shall provide Thompson Creek
with a copy of all written materials relating to such inquiries, proposals or
requests.  An “Alternative Royal Gold
Financing” means a transaction between Royal Gold and its Affiliates and
any Person (including Terrane and its Affiliates), other than Thompson Creek,
relating to the purchase and sale of gold from any portion of the Milligan
Property, including without limitation: (i) a gold royalty on production from
the Milligan Property, (ii) an amount of gold based on production from any
portion of the Milligan Property; or (iii) any participating interest in gold
based on production from any portion of the Milligan Property (including
granting any interest in a gold royalty stream), or any transaction having a
similar economic effect, in each case related to an Alternative Terrane
Transaction, but excluding any (i) gold spot sales, (ii) gold forward sales or
options or other gold sales or gold loans to a financial institution or bullion
bank, (iii) internal transfers among Vendor and its Affiliates,.  An
"Alternative Terrane
Transaction" means any of the following transactions between Terrane or
any of its Affiliates and any Person, other than Thompson Creek and its
Affiliates: (i) the acquisition or purchase of any capital stock or other voting
security, any security convertible into or exercisable or exchangeable for any
capital stock or other voting security of Terrane or any of its subsidiaries or
all or a substantial portion of the assets of Terrane or any of its
subsidiaries, including without limitation any interest in a gold royalty
stream; (ii) a merger, recapitalization, reorganization, joint venture or other
business combination involving Terrane or any of its subsidiaries; or (iii) any
other extraordinary business transaction involving or otherwise relating to
Terrane or any of its subsidiaries.

    
      
         

      

      
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    3.5         Expenses of Royal Gold. In
the event Thompson Creek receives any topping fee, break fee or expense
reimbursement or similar payment from Terrane or its Affiliates in connection
with the Acquisition Agreement or its termination, Thompson Creek shall
reimburse Royal Gold for all of its expenses incurred in connection with the
transactions contemplated by this letter agreement, including internal expenses
related to Royal Gold staff and expenses related to external advisors,
consultants, and counsel, to an aggregate maximum of US$1 million.

    

    3.6         Distribution of Initial
Deposit.  Prior to Closing, the Parties agree to use good faith
efforts to establish a procedure for payment of the Initial Deposit at the
Closing that facilitates the timely distribution of those funds in support of
the obligations of Thompson Creek under the Acquisition, provided that such
procedures do not impose any loss of interest or imposition of any expenses upon
a Party hereto apart from nominal administrative expenses.

    

    4.           Closing.  The
closing of the transactions contemplated hereby (the “Closing”) shall occur at 1900 – 355 Burrard
Street, Vancouver, British Columbia on the same date and time as the closing of
the Acquisition pursuant to the Acquisition Agreement, provided that (i)
Thompson Creek agrees to provide no less than 48 hours advance written notice to
Royal Gold of such closing date, and (ii) all conditions to the obligations of
Royal Gold and Thompson Creek hereunder are satisfied or waived in writing by
the Party benefitting from such conditions.

    

    4.1         Mutual
Conditions.  The respective obligations of each Party to
consummate the transactions contemplated by this letter agreement are subject to
the fulfillment at or prior to the Closing of each of the following
conditions:

    

    (a)           There
shall be no effective injunction, writ or preliminary restraining order or any
order of any nature issued by a Governmental Authority of competent jurisdiction
to the effect that the transactions contemplated hereby may not be consummated
as herein provided.

    

    (b)           All
material Approvals of a Governmental Authority required in connection with the
execution and delivery of this Agreement and the performance of the obligations
hereunder shall have been made or obtained, without any limitation, restriction
or condition.

    

    4.2         Conditions to the
Obligations of Royal Gold.  The obligations of Royal Gold to
consummate the transactions contemplated by this letter agreement are subject to
the fulfillment at or prior to the Closing of each of the following additional
conditions:

    

    (a)           The
representations and warranties of Thompson Creek contained herein, that are
qualified as to materiality or words of similar import shall be true and correct
in all respects, and those not so qualified shall be true and correct in all
material respects, in each case when made and on and as of the Closing as though
made on and as of the Closing (except for representations and warranties made as
of a specified date, which shall be true and correct as of the specified
date).

    
      
         

      

      
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    (b)           Thompson
Creek shall have performed or complied with, in all material respects, all
covenants, agreements and conditions contained herein required to be performed
or complied with by it prior to or at the time of the Closing.

    

    (c)           No
fact, event, occurrence or circumstance shall have occurred that, individually
or in aggregate, with or without the passage of time, has had or is reasonably
likely to result in a material adverse effect on Thompson Creek that would
materially impair or prevent Thompson Creek’s ability to close the Acquisition
or develop the Milligan Project or a material adverse effect on the Milligan
Project (in each case without regard to effects from changes in metal prices or
industry wide events that do not have a disproportionate effect).

    

    (d)           Thompson
Creek shall have consummated, or shall simultaneously with the execution of the
Gold Purchase Agreement consummate, the Acquisition of Terrane pursuant to the
terms of Acquisition Agreement.

    

    4.3         Conditions to the Obligations of
Thompson Creek.  The obligations of Thompson Creek to
consummate the transactions contemplated by this Agreement are subject to the
fulfillment of the following conditions:

    

    (a)           The
representations and warranties of Royal Gold contained herein, that are
qualified as to materiality or words of similar import shall be true and correct
in all respects, and those not so qualified shall be true and correct in all
material respects, in each case when made and on and as of the Closing as though
made on and as of the Closing (except for representations and warranties made as
of a specified date, which shall be true and correct as of the specified
date).

    

    (b)           Royal
Gold shall have performed or complied with, in all material respects, all
covenants, agreements and conditions contained herein required to be performed
or complied with by it prior to or at the time of the Closing.

    

    (c)           No
fact, event, occurrence or circumstance shall have occurred that, individually
or in aggregate, with or without the passage of time, has had or is reasonably
likely to result in a material adverse effect on Royal Gold (without regard to
effects from changes in metal prices or industry wide events that do not have a
disproportionate effect).

    

    (d)           On
or before the Closing, Royal Gold shall have executed intercreditor agreements,
in form and substance satisfactory to the parties thereto, with (i) Wells Fargo
Capital Finance, or such other lender or lenders satisfactory to Thompson Creek,
in regard to an asset backed corporate credit facility to be secured against,
among other things, inventory and receivables; and (ii) any project finance
lender or lenders as reasonably requested by Thompson Creek.  The
intercreditor agreements will be consistent with the terms of section 8.6 of the
Gold Purchase Agreement

    
      
         

      

      
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              5.

            	
              Termination.

            

    

    

    5.1         Right to Terminate Prior to Closing
of the Acquisition Transaction.  This letter agreement and the
transactions contemplated hereby may be terminated at any time prior to the
closing of the Acquisition:

    

    (a)           by
the mutual written consent of Thompson Creek and Royal Gold;

    

    (b)           by
either Thompson Creek or Royal Gold, by written notice delivered to the other
Party, if any Governmental Authority shall have issued an order or taken any
other action enjoining, restraining or otherwise prohibiting the transactions
contemplated hereby; provided, however, the Party
seeking to terminate this letter agreement pursuant to this clause (b) shall not
have initiated such proceeding or taken any action in support of such
proceeding;

    

    (c)           by
either Thompson Creek or Royal Gold, by written notice delivered to the other
Party, if the closing of the Acquisition shall not have occurred prior to
December 31, 2010,  or such later date mutually agreed upon in writing
by the Parties (the “Outside
Termination Date”); provided, however, the right to
terminate this letter agreement under this Section 5.1(c) shall
not be available to any Party whose failure to fulfill any obligation under this
letter agreement has been the cause of, or resulted in, the failure of the
closing of the Acquisition to occur on or before the Outside Termination
Date;

    

    (d)           without
further action by Thompson Creek or Royal Gold, effective as of
the  date, if any, on which the Acquisition Agreement is terminated
without the consummation of the Acquisition or Thompson Creek’s offer to
Terrane’s shareholders contemplated thereby is withdrawn or abandoned; provided,
that Thompson Creek shall promptly notify Royal Gold in writing of such
event;

    

    (e)           without
further action by Thompson Creek or Royal Gold, effective as of the date, if
any, on which the shareholders of Terrane decline to approve the Acquisition;
provided, that Thompson Creek shall promptly notify Royal Gold in writing of
such event;

    

    (f)           without
further action by Thompson Creek or Royal Gold, effective as of the date, if
any, on which Thompson Creek or Terrane publicly announce that the Acquisition
will not be proceeding, provided, that Thompson Creek shall promptly notify
Royal Gold in writing of such event;

    
      
         

      

      
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    (g)      
   by Royal Gold, by written notice to Thompson Creek,
if

    

    (i)           there
has been a breach of any representation, warranty, covenant or agreement of
Thompson Creek contained in this letter agreement that would, individually or in
the aggregate, result in a failure of a condition set forth in Section 4.2 on any
date prior to the closing of the Acquisition (it being understood that, for
purposes of this Section 5.1(g), such
date prior to the closing of the Acquisition shall be substituted for the
closing of the Acquisition in determining whether the conditions contained in
Section 5.1(g)
have been satisfied) and (ii) such breach cannot be or has not been cured within
30 days after written notice is provided to Thompson Creek of such breach (it
being understood that Royal Gold may not terminate this Agreement pursuant to
this Section
5.1(g) if such breach by Thompson Creek is so cured within such 30-day
period); provided, however, that no such
cure period shall be available or applicable to any such breach which by its
nature cannot be cured;

    

    (ii)        
 there has been any event, change, occurrence or circumstance (other than
one caused by Royal Gold) that renders the conditions set forth in Section 4.2 incapable
of being satisfied by the Outside Termination Date;

    

    (iii)        
Thompson Creek materially increases the cash portion of its July 9, 2010 offer
to Terrane for the purchase of the shares of Terrane pursuant to the Acquisition
and, promptly following notification by Thompson Creek to Royal Gold of such
increase, Thompson Creek is not able to demonstrate to the satisfaction of Royal
Gold, acting reasonably, that Thompson Creek has or has access to the financial
resources necessary to complete the Development in accordance with the
Development Program.

    

    (h)      
   by Thompson Creek, by written notice to Royal Gold,
if

    

    (i)           there
has been a breach of any representation, warranty, covenant or agreement of
Royal Gold contained in this letter agreement that would, individually or in the
aggregate, result in a failure of a condition set forth in Section 4.3 on any
date prior to the closing of the Acquisition (it being understood that, for
purposes of this Section 5.1(h), such
date prior to the closing of the Acquisition shall be substituted for the
Closing in determining whether the conditions contained in Section 5.1(h) have
been satisfied) and (ii) such breach cannot be or has not been cured within 30
days after written notice is provided to Royal Gold of such breach (it being
understood that Thompson Creek may not terminate this Agreement pursuant to this
Section 5.1(h)
if such breach by Royal Gold is so cured within such 30-day period); provided, however, that no such
cure period shall be available or applicable to any such breach or event which
by its nature cannot be cured; or

    

    (ii)          there
has been any event, change, occurrence or circumstance (other than one caused by
Thompson Creek) that renders the conditions set forth in Section 4.3 incapable
of being satisfied by the Outside Termination Date.

    

    5.2         Effect of Termination and
Abandonment Prior to Closing of the Acquisition.  In the event
of termination of this letter agreement and the abandonment of the transactions
contemplated hereby pursuant to Section 5.1 hereof,
this letter agreement shall become void and of no effect with no liability on
the part of any Party hereto (or of any of its directors, officers, employees,
agents, legal and financial advisors or other representatives); provided, however, no such
termination shall relieve any Party hereto of any liability or damages resulting
from (i) any willful breach of any representations or warranties contained in
this letter agreement; (ii) any breach of any covenant or agreement contained in
this letter agreement; or (iii) instances of fraud, and provided further, this Section 5.2 and the
provisions of Section
6 shall survive any such termination and shall remain in
effect.

    
      
         

      

      
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              6.

            	
              Miscellaneous.

            

    

    

    6.1         Entire Agreement;
Amendment.

    

    (a)           This
letter agreement and the Mutual Non-Disclosure Agreement between Thompson Creek
and Royal Gold effective as of June 1, 2010 together constitute the entire
agreement between the Parties hereto with respect to the subject matter hereof
and supersedes all other prior agreements and understandings, both written and
oral, between the Parties with respect to the subject matter
hereof.

    

    (b)           This
letter agreement may not be changed, amended, supplemented, or otherwise
modified except pursuant to an instrument in writing signed by each of the
Parties.  No course of dealing between or among any Persons having any
interest in this letter agreement shall be deemed effective to modify or amend
any part of this letter agreement or any rights or obligations of any Person
under or by reason of this letter agreement.

    

    6.2         Notices.  All
notices, requests, instructions or other documents to be given under this
Agreement shall be in writing and shall be deemed effectively given only when
personally delivered, when received by facsimile, other electronic means or
overnight delivery via a reputable courier service, in each case, addressed as
set forth in the Notice provision of Exhibit 1.

    

    6.3         Governing Law.  The
Parties agree that this letter agreement shall be governed by and construed in
accordance with the laws of Colorado, excluding any rule or principle that might
refer the governance or the construction of this Agreement to the laws of
another jurisdiction.

    

    6.4         Parties in
Interest.  This letter agreement shall be binding upon and
inure solely to the benefit of each Party hereto and its successors and
permitted assigns, and nothing in this letter agreement, express or implied, is
intended to or shall confer upon any other Person any rights, benefits or
remedies of any nature whatsoever under or by reason of this letter
agreement.

    

    6.5         Time of
Essence.  Time is of the essence in the performance of this
letter agreement.

    

    6.6         Assignment.  Prior
to the Closing, no Party may assign this letter agreement, nor any of the
rights, interests or obligations hereunder, by operation of law (including, but
not limited to, by merger or consolidation) or otherwise, without the prior
written consent of the other Party hereto; provided, however, that either Party
shall have the right, without the consent of the other Party  to
assign all or any portion of its rights, duties and obligations under this
letter agreement to any of its direct or indirect subsidiaries; provided, that
no such assignment shall relieve the assigning Party of its obligations
hereunder.  Any assignment in violation of the preceding sentence
shall be void.

    
      
         

      

      
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    6.7         Right to Specific
Performance.  Without limiting or waiving in any respect any
rights or remedies of the Parties under this letter agreement now or hereafter
existing at law, in equity or by statute, either Party may be entitled to
specific performance of the obligations to be performed by the other Party
hereto in accordance with the provisions of this letter agreement.

    

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    If the foregoing conforms to your
understanding of our agreement, please countersign this letter agreement in the
space provided below.

    

    
      
        
          	 
      	
                  Sincerely,

                
	 
      	 
      
	 
      	
                  Thompson
      Creek Metals Company Inc.

                
	 
      	 
      	 
      	 
      
	 
      	
                  By:

                	
                  /s/ Kevin Loughrey

                	 
      
	 
      	
                  Date:

                	
                  July 15, 21010

                	 
      
	 
      	
                  Title:

                	
                  Chief Executive Officer

                	 
      

        

      

    

    

    
      
        	
                Accepted
      and Agreed:

              	 
      
	 
      	 
      
	
                Royal
      Gold, Inc.

              	 
      
	 
      	 
      	 
      
	
                By:

              	
                /s/ Tony Jensen

              	 
      
	
                Date:

              	
                July 15, 2010

              	 
      
	
                Title:

              	
                President and Chief Executive
      Officer

              	 
      

      

    

    
      
         

      

      
        Page
11

        
          

        

      

      
         

      

    

    

    Exhibit 1 – Form of Gold
Purchase Agreement

      

    PURCHASE
AND SALE AGREEMENT

     

    BY
AND AMONG

     

    [TERRANE
METALS CORP.1],

     

    [RG
NEWCO.],

     

    solely in respect of Article 10 and
Sections 11.4 and 17.15
hereof,

     

    ROYAL
GOLD, INC.

     

    and,
solely in respect of Article 10 and Sections 3.5, 11.2 and 17.14
hereof,

     

    THOMPSON
CREEK METALS COMPANY INC.

     

    DATED:  l, 2010

     

    
      
        

      

    

    1           Corporate
party holding title to Milligan Property may be reorganized.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    TABLE
OF CONTENTS

     

    
      
        
          
            	
                    Article
      1 INTERPRETATION

                  	
                    2

                  
	
                    1.1

                  	
                    Definitions

                  	
                    2

                  
	
                    1.2

                  	
                    Certain
      Rules of Interpretation

                  	
                    12

                  
	 
      	 
      	 
      
	
                    Article
      2 PURCHASE AND SALE

                  	
                    13

                  
	
                    2.1

                  	
                    Purchase
      and Sale of Refined Gold

                  	
                    13

                  
	
                    2.2

                  	
                    Delivery
      Obligations

                  	
                    13

                  
	
                    2.3

                  	
                    Statements

                  	
                    15

                  
	
                    2.4

                  	
                    Gold
      Purchase Price

                  	
                    15

                  
	
                    2.5

                  	
                    Payment

                  	
                    15

                  
	
                    2.6

                  	
                    Sales
      Tax

                  	
                    16

                  
	 
      	 
      	 
      
	
                    Article
      3 DEPOSIT

                  	
                    16

                  
	
                    3.1

                  	
                    Payment
      Deposit

                  	
                    16

                  
	
                    3.2

                  	
                    Initial
      Deposit

                  	
                    16

                  
	
                    3.3

                  	
                    Scheduled
      Deposits

                  	
                    16

                  
	
                    3.4

                  	
                    No
      Interest

                  	
                    16

                  
	
                    3.5

                  	
                    Use
      of Payment Deposit

                  	
                    16

                  
	
                    3.6

                  	
                    Deposit
      Record

                  	
                    17

                  
	
                    3.7

                  	
                    Deposit
      at Expiry of Initial Term

                  	
                    17

                  
	 
      	 
      	 
      
	
                    Article
      4 DELIVERIES

                  	
                    17

                  
	
                    4.1

                  	
                    Deliveries
      of Vendor

                  	
                    17

                  
	
                    4.2

                  	
                    Deliveries
      of Purchaser

                  	
                    18

                  
	 
      	 
      	 
      
	
                    Article
      5 PAYMENT OF SCHEDULED DEPOSITS

                  	
                    19

                  
	
                    5.1

                  	
                    Achievement
      of Deposit Events

                  	
                    19

                  
	
                    5.2

                  	
                    Payment
      of Scheduled Deposits

                  	
                    19

                  
	
                    5.3

                  	
                    Closing
      Conditions for Payment of Scheduled Deposits

                  	
                    19

                  
	 
      	 
      	 
      
	
                    Article
      6 TERM

                  	
                    20

                  
	
                    6.1

                  	
                    Term

                  	
                    20

                  
	 
      	 
      	 
      
	
                    Article
      7 REPORTING; BOOKS AND RECORDS; INSPECTIONS

                  	
                    21

                  
	
                    7.1

                  	
                    Monthly
      Reporting

                  	
                    21

                  
	
                    7.2

                  	
                    Annual
      Reporting

                  	
                    21

                  
	
                    7.3

                  	
                    Additional
      Reporting Requirements

                  	
                    21

                  
	
                    7.4

                  	
                    Books
      and Records

                  	
                    22

                  
	
                    7.5

                  	
                    Inspections

                  	
                    22

                  
	 
      	 
      	 
      
	
                    Article
      8 COVENANTS

                  	
                    23

                  
	
                    8.1

                  	
                    Conduct
      of Operations

                  	
                    23

                  
	
                    8.2

                  	
                    Preservation
      of Corporate Existence

                  	
                    24

                  
	
                    8.3

                  	
                    Processing/Commingling

                  	
                    24

                  
	
                    8.4

                  	
                    Mineral
      Offtake Agreements

                  	
                    24

                  
	
                    8.5

                  	
                    Insurance

                  	
                    25

                  
	
                    8.6

                  	
                    Permitted
      Debt Financings and Permitted Encumbrances

                  	
                    25

                  
	
                    8.7

                  	
                    Confidentiality

                  	
                    27

                  
	
                    8.8

                  	
                    Compliance
      with Law

                  	
                    28

                  

          

        

      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      
        
          
            	
                    8.9

                  	
                    Unprocessed
      Ore

                  	
                    29

                  
	 
      	 
      	 
      
	
                    Article
      9 RIGHT OF FIRST OFFER

                  	
                    29

                  
	
                    9.1

                  	
                    Right
      of First Offer on Gold Interest

                  	
                    29

                  
	 
      	 
      	 
      
	
                    Article
      10 TRANSFERS AND ASSIGNMENTS

                  	
                    30

                  
	
                    10.1

                  	
                    Transfers
      of the Milligan Project

                  	
                    30

                  
	
                    10.2

                  	
                    Exceptions
      Based on Intercreditor Agreements

                  	
                    31

                  
	
                    10.3

                  	
                    Assignment

                  	
                    31

                  
	 
      	 
      	 
      
	
                    Article
      11 REPRESENTATIONS AND WARRANTIES

                  	
                    32

                  
	
                    11.1

                  	
                    Representations
      and Warranties of Vendor

                  	
                    32

                  
	
                    11.2

                  	
                    Representations
      and Warranties of Thompson Creek

                  	
                    32

                  
	
                    11.3

                  	
                    Representations
      and Warranties of the Purchaser

                  	
                    33

                  
	
                    11.4

                  	
                    Representations
      and Warranties of Royal Gold

                  	
                    33

                  
	
                    11.5

                  	
                    Survival
      of Representations and Warranties

                  	
                    33

                  
	
                    11.6

                  	
                    Knowledge

                  	
                    33

                  
	 
      	 
      	 
      
	
                    Article
      12 VENDOR EVENTS OF DEFAULT

                  	
                    33

                  
	
                    12.1

                  	
                    Vendor
      Events of Default

                  	
                    33

                  
	
                    12.2

                  	
                    Remedies

                  	
                    34

                  
	 
      	 
      	 
      
	
                    Article
      13 PURCHASER EVENTS OF DEFAULT

                  	
                    34

                  
	
                    13.1

                  	
                    Purchaser
      Events of Default

                  	
                    34

                  
	
                    13.2

                  	
                    Remedies

                  	
                    35

                  
	 
      	 
      	 
      
	
                    Article
      14 INDEMNITIES

                  	
                    35

                  
	
                    14.1

                  	
                    Indemnity
      of Purchaser

                  	
                    35

                  
	
                    14.2

                  	
                    Indemnity
      of Vendor

                  	
                    36

                  
	
                    14.3

                  	
                    Limitations
      on Indemnification

                  	
                    36

                  
	 
      	 
      	 
      
	
                    Article
      15 INDEPENDENT ENGINEER; ADDITIONAL PAYMENT TERMS;
DISPUTES

                  	
                    37

                  
	
                    15.1

                  	
                    Independent
      Engineer

                  	
                    37

                  
	
                    15.2

                  	
                    Payments

                  	
                    37

                  
	
                    15.3

                  	
                    Overdue
      Payments and Set-Off

                  	
                    37

                  
	
                    15.4

                  	
                    Statement
      Disputes

                  	
                    38

                  
	
                    15.5

                  	
                    Disputes
      and Arbitration

                  	
                    39

                  
	 
      	 
      	 
      
	
                    Article
      16 TAXES

                  	
                    39

                  
	
                    16.1

                  	
                    Taxes

                  	
                    39

                  
	 
      	 
      	 
      
	
                    Article
      17 GENERAL

                  	
                    40

                  
	
                    17.1

                  	
                    Further
      Assurances

                  	
                    40

                  
	
                    17.2

                  	
                    Survival

                  	
                    40

                  
	
                    17.3

                  	
                    No
      Joint Venture

                  	
                    40

                  
	
                    17.4

                  	
                    Governing
      Law

                  	
                    40

                  
	
                    17.5

                  	
                    Notices

                  	
                    41

                  
	
                    17.6

                  	
                    [Reserved]

                  	
                    42

                  
	
                    17.7

                  	
                    Amendments

                  	
                    42

                  
	
                    17.8

                  	
                    Beneficiaries

                  	
                    42

                  
	
                    17.9

                  	
                    Contests

                  	
                    43

                  
	
                    17.10

                  	
                    Entire
      Agreement

                  	
                    43

                  

          

        

      

    

    

    
      
        
           

        

        
          -
ii -

          
            

          

        

        
           

        

      

    

    

    
      
        
          
            	
                    17.11

                  	
                    Waivers

                  	
                    43

                  
	
                    17.12

                  	
                    Severability

                  	
                    43

                  
	
                    17.13

                  	
                    Counterparts

                  	
                    43

                  
	
                    17.14

                  	
                    Thompson
      Creek Guarantee

                  	
                    43

                  
	
                    17.15

                  	
                    Royal
      Gold Guarantee

                  	
                    44

                  

          

        

      

    

    

    
      
        
           

        

        
          - iii
-

          
            

          

        

        
           

        

      

    

     

    THIS PURCHASE AND SALE
AGREEMENT dated as of l, 2010.

     

    BY
AND AMONG:

     

    [RG NEWCO]., a •

     

    (the
“Purchaser”),

     

    -
and-

     

    TERRANE METALS CORP.2, a
corporation incorporated under the laws of British Columbia

     

    (the
“Vendor”)

     

    -and,
solely in respect of Article 10 and Sections 11.4 and 17.15 hereof

     

    ROYAL GOLD, INC., a
corporation incorporated under the laws of the State of Delaware

     

    (“Royal Gold”)

     

    - and,
solely in respect of Article 10 and Sections 3.5, 11.2 and 17.14
hereof

     

    THOMPSON CREEK METALS COMPANY
INC., a corporation incorporated under the laws of British
Columbia

     

    (“Thompson Creek”)

     

    WITNESSES
THAT:

     

    WHEREAS Vendor has agreed to
sell to the Purchaser and the Purchaser has agreed to purchase from Vendor, an
amount of Refined Gold equal to the Designated Percentage of Produced Gold,
subject to and in accordance with the terms and conditions of this
Agreement;

     

    AND WHEREAS Vendor is the
owner of a 100% interest in and to the Milligan Property;

     

    AND WHEREAS capitalized terms
when used in these recitals shall have the respective meanings set forth in
Section 1.1.

     

    NOW THEREFORE in consideration
of the mutual covenants and agreements herein contained and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the Parties hereto, the Parties mutually agree as
follows:

     

    
      
        

      

    

    2           See
Footnote 1.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Article
1

    INTERPRETATION

     

    
      	
              1.1

            	
              Definitions

            

    

     

    In this
Agreement, including in the recitals and schedules hereto:

     

    “Acquisition” means the
acquisition of all of the outstanding securities of Terrane Metals Corporation
and its interest in the Milligan Project by Thompson Creek pursuant to the terms
of an Arrangement Agreement dated July 15, 2010.

     

    “Additional Term” has the
meaning set out in Section 6.1(a).

     

    “Affiliate” means, in relation
to any person or entity, any other person or entity controlling, controlled by
or under common control with such first mentioned person or entity.

     

    “Agreement” means this purchase
and sale agreement and all attached schedules, in each case as the same may be
supplemented, amended, restated, modified or superseded from time to time in
accordance with the terms hereof.

     

    “Applicable Laws” means any
international, federal, state, provincial, or municipal law, regulation,
ordinance, code, order or other requirement or rule of law or the rules,
policies, orders or regulations of any Governmental Authority or stock exchange,
including any judicial or administrative interpretation thereof, applicable to a
person or any of its properties, assets, business or operations.

     

    “Approvals” means all
authorizations, clearances, consents, orders and other approvals required to be
obtained from any person, including any Governmental Authority or stock
exchange, in connection with the completion of the transactions contemplated by
this Agreement.

     

    “Arbitration Rules” means the
rules established pursuant to the International Commercial Arbitration Act
(British Columbia).

     

    “Assignee” has the meaning set
forth in Section 10.1(a).

     

    “Assignment” has the meaning
set forth in Section 10.1.

     

    “Assignor” has the meaning set
forth in Section 10.1.

     

    “Auditor” means a national
Canadian accounting firm, as supported in the discretion of such accounting firm
by a nationally recognized minerals engineering firm, that is independent of the
Parties and their respective Affiliates, and that has experience and expertise
in determining the quantity of gold mined, produced, extracted or otherwise
recovered from mining projects.

     

    “Auditor’s Report” has the
meaning set out in Section 15.4(a)(ii).

    

    
      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

    

     

    “Business Day” means any day
other than a Saturday or Sunday or a day that (i) is a statutory holiday under
the laws of the Province of British Columbia, or (ii) national banking
institutions in New York and Colorado are closed to the public for conducting
business.

     

    “Commingling Plan” has the
meaning set out in Section 8.3.

     

    “Confidential Information” has
the meaning set out in Section 8.7(a).

     

    “Confidentiality Agreement”
means the Mutual Non-Disclosure Agreement between Thompson Creek and Purchaser
effective as of June 1, 2010.

     

    “control” means the right,
directly or indirectly, to direct or cause the direction of the management of
the business or affairs of a person, whether by ownership of securities, by
contract or otherwise; and “controls”, “controlling”, “controlled by” and “under
common control with” have corresponding meanings.

     

    “Corporate Financing” means one
or more secured corporate credit facility(ies) in favour of Vendor or any of its
Affiliates, or pursuant to which the Vendor would be a guarantor, that is
secured partially or wholly against the Milligan Project and to which proceeds
thereof may or may not be used for the purpose of financing all or a portion of
the Project Costs of Development but does not include any unsecured financing or
secured financing of the Vendor or any of its Affiliates that is not secured
against the Milligan Project.

     

    “Corporate Lenders” means the
lenders and their agents and trustees under any Corporate
Financing.

     

    “Corporate Lender
Security” means Encumbrances
(including Permitted Encumbrances) in favour of any Corporate Lenders (or agent
or trustee on their behalf) as security for the payment and performance, when
due, of the obligations of Vendor or any of its Affiliates under any Corporate
Financing.

     

    “CSA” has the meaning set out
in Section 8.7(a)(ii).

     

    “Date of Delivery” has the
meaning set out in Section 2.2(c).

     

    “Default Deposit Reduction
Date” means the date on which the Deposit Record would have been reduced
to nil assuming for all purposes that no Purchaser Event of Default set forth in
Section 13.1(a) or 13.1(b) occurred or continued.

     

    “Definitive Agreement” has the
meaning set out in Section 9.1(b).

     

    “Delivery” means, in respect of
a delivery of Refined Gold, either the crediting of units of gold into a metal
account or, if the Vendor elects to deliver physical gold pursuant to Section
2.2(e), the physical delivery of Refined Gold to a metal account and “Delivered” means that such
Refined Gold has been so credited or physically delivered.

     

    “Deposit Event” has the meaning
set out in Section 5.1.

    

    
      
        
           

        

        
          - 3
-

          
            

          

        

        
           

        

      

    

     

    “Deposit Record” has the
meaning set out in Section 3.6.

     

    “Deposit Record Report” has the
meaning set out in Section 7.3(d).

     

    “Deposit Reduction Time” means
the time at which the Deposit Record is reduced to nil.

     

    “Deposit Suspension Event”
means an event that is reasonably beyond the control of the Vendor and its
Affiliates that prevents the Vendor and its Affiliates from continuing to
advance the Development Program, including (i) acts of God, earthquake, cyclone,
fire, explosion, flood, landslide, lightening storm, tempest, drought or meteor,
(ii) war (declared or undeclared), invasion, act of foreign enemy, hostilities
between nations, civil insurrection or military usurper power, (iii) revolution
or act of public enemy, sabotage, malicious damage, terrorism, insurrection or
civil unrest, (iv) confiscation, nationalisation, requisition, expropriation,
embargo, restraint or damage to property by or under the order of any
Governmental Authority, (v) shortages or inability to obtain fuel, water,
electric power, raw materials, supplies or equipment (vi) transportation
difficulties or handling or loading difficulties at any port or storage
facility, (vii) epidemic or quarantine restrictions, or (viii) an event having
the effect of damaging any part of the Milligan Project, (ix) strikes,
blockades, lock out or other labor dispute, or (vii) blockades by First Nations
groups that substantially prevent or inhibit ingress or egress to the Milligan
Project.

     

    “Designated Percentage of Produced
Gold” means, without duplication (i) 25% *[Redacted]* the number of
ounces of Produced Gold in the form of concentrate in respect of which the
Vendor or any of its Affiliates receives a Gold Payment, (ii) 25% *[Redacted]* the number of
ounces of Produced Gold in the form of doré in respect of which the Vendor or
any of its Affiliates receives a Gold Payment, or (iii) 25% times any Gold
Payment received by Vendor or any of its Affiliates, in respect of Produced Gold
that is not in the form of concentrate or doré.

     

    “Development” means all activities,
operations and work performed for the purpose of or in connection with
construction of the Milligan Facilities through to the point of mechanical
completion of relevant processing facilities as determined in accordance with
the principle Engineering Procurement Construction Management contract (or
equivalent contract) governing the construction of the Milligan Facilities, and
including (i) acquisitions of mineral rights, Surface Rights, water rights,
Permits and other interests necessary for the conduct of construction and
operation of the Milligan Project, (ii) pre-production stripping and development
for the commencement of open pit mining operations, and (iii) activities
undertaken to comply with any legal requirements arising out of or related to
any of the foregoing, all in material accordance with the Milligan Report as it
may be amended from time to time.

     

    “Development Program” means the detailed
monthly budget and schedule outlining the Development in accordance with the
mine plan set forth in the Milligan Report and otherwise prepared in accordance
with Schedule D, including an estimate of Project Costs and showing, without
limitation, the material construction, mine development, equipment acquisitions
and Permits to bring the Milligan Project or any part thereof into commercial
production, as amended from time to time.

     

    
      
        

      

      *[Redacted]*  indicates
confidential information that has been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934.  The confidential information has
been submitted separately to the U.S. Securities and Exchange
Commission.

    

    

    
      
        
           

        

        
          - 4
-

          
            

          

        

        
           

        

      

    

     

    “Dispute Notice” has the
meaning set out in Section 15.4(a)(i).

     

    “Dispute Period” has the
meaning set out in Section 15.4(a)(i).

     

    “Effective Date” means the date
of this Agreement.

     

    “Encumbrances” means any and
all mortgages, charges, assignments, hypothecs, pledges, security interests,
liens and other encumbrances and adverse claims of every nature and kind
securing any obligation of any person, whether registered or
unregistered.

     

    “Environmental Laws” mean
Applicable Laws relating to pollution or protection of the environment,
including, without limitation, Applicable Laws relating to emissions,
discharges, releases of pollutants, contaminants, chemicals, or industrial,
toxic or hazardous substances or wastes into the environment (including, without
limitation, ambient air, surface water, ground water, aquifers, land surface or
subsurface strata) or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants, chemicals or industrial, toxic or hazardous substances
or wastes which are applicable to the Milligan Project, the other assets owned,
controlled or managed by the Vendor which are used on or in connection with the
or the Milligan Project or to the activities of the Vendor on or in connection
with the Milligan Project.

     

    “Event of Force Majeure” means
an event that is reasonably beyond the control of a Party and its Affiliates,
including (i) acts of God, earthquake, cyclone, fire, explosion, flood,
landslide, lightening storm, tempest, drought or meteor, (ii) war (declared or
undeclared), invasion, act of foreign enemy, hostilities between nations, civil
insurrection or military usurper power, (iii) revolution or act of public enemy,
sabotage, malicious damage, terrorism, insurrection or civil unrest, (iv)
confiscation, nationalisation, requisition, expropriation, embargo, restraint or
damage to property by or under the order of any Governmental Authority, (v)
epidemic or quarantine restrictions, or (vi) strikes, blockades, lock out or
other labor dispute, or (vii) blockades by First Nations groups that
substantially prevent or inhibit ingress or egress to the Milligan
Project.

     

    “Fixed Price” means (i) with
respect to the first 550,000 aggregate ounces of Refined Gold sold by the Vendor
to the Purchaser hereunder, US$400 per ounce, and (ii) with respect to each
ounce of Refined Gold sold by the Vendor to the Purchaser hereunder in excess of
550,000 aggregate ounces, US$450 per ounce.

     

    “Gold Payment” means (i) with respect
to Minerals purchased by an Offtaker from the Vendor or any of its Affiliates,
the receipt by the Vendor or any of its Affiliates of payment, whether
provisional or final, or other consideration from the Offtaker in respect of any
Produced Gold, including amounts received in respect of warehouse holding
certificates, and (ii) with respect to Minerals refined, smelted or otherwise
beneficiated by an Offtaker on behalf of the Vendor or any of its Affiliates,
the receipt by the Vendor or any of its Affiliates of Refined Gold, whether
provisional or final settlement, in accordance with the applicable Mineral
Offtake Agreement.

     

    “Gold Purchase Price” has the
meaning set out in Section 2.4.

    

    
      
        
           

        

        
          - 5
-

          
            

          

        

        
           

        

      

    

     

    “Governmental Authority” means
any federal, provincial or local government, agency, department, ministry,
authority, tribunal, commission, official, court or securities
commission.  For the avoidance of doubt, Governmental Authority shall
not be deemed to include First Nations.

     

    “Independent Engineer” has the
meaning set out in Section 15.1.

     

    “Initial Term” has the meaning set out
in Section 6.1(a).

     

    “Insolvency Event” means the
making of an assignment for the benefit of creditors by a Party or a Party
becoming the voluntary or involuntary subject of any proceedings under any
bankruptcy or insolvency law, which proceedings remain undischarged for a period
of 30 days, or if a receiver or receiver/manager is appointed for all or any
substantial part of the property and business of a Party and such receiver or
receiver/manager remains undischarged for a period of 30 days, or if the
corporate existence of a Party is terminated by voluntary or involuntary
dissolution or winding-up (other than by way of amalgamation or
reorganization).

     

    “Lenders” means the lenders and
their agents and trustees under any Vendor Financing.

     

    “LIBO Rate” means for any
calendar month the British Bankers’ Association Interest Settlement Rate for US
Dollars for an interest period of three months displayed and identified on the
Reuters Screen LIBOR 01 Page at approximately 10:00 am (Toronto time) on the
first Business Day of that month, provided however, if such rate does not appear
on the Reuters Screen LIBOR 01 Page at that time, then the “LIBO Rate” for that
calendar month shall be the six month LIBO Rate (determined as at 10:00 am
(Toronto time) on such Business Day) as quoted to the Purchaser by a major UK
bank.

     

    “Losses” has the meaning set
out in Section 0.

     

    “Lot” means the applicable
quantity of Minerals delivered to and accepted by an Offtaker, that is
separately sampled and assayed so that Vendor and the applicable Offtaker can
agree upon the content of some or all of the relevant Minerals therein, all as
set forth in the applicable Mineral Offtake Agreement.

     

    “Lot Provisional Percentage”
means for Lots in which a provisional payment pursuant to Section 2.2(a)(ii) is
applicable *[Redacted]*.

     

    “Material Adverse Effect” means
any event, occurrence, change or effect that, when taken individually or
together with all other events, occurrences, changes or effects, is or could
reasonably be expected to:

     

    
      	
               
      

            	
              (a)

            	
              materially
      limit, restrict or impair the ability of Vendor to perform its obligations
      under this Agreement;

            

    

     

    
      	
               
      

            	
              (b)

            	
              limit,
      restrict or impair the ability of Vendor to operate the Milligan Project
      substantially in accordance with the mine plan for the Milligan Project in
      effect at the time of the occurrence of the Material Adverse Effect;
      or

            

    

     

    
      

      *[Redacted]*  indicates
confidential information that has been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934.  The confidential information has
been submitted separately to the U.S. Securities and Exchange
Commission.

    

     

    
      
        
           

        

        
          - 6
-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (c)

            	
              cause
      any significant decrease to expected gold production from the Milligan
      Project based on the mine plan for the Milligan Project in effect at the
      time of the occurrence of the Material Adverse
  Effect.

            

    

     

    “Milligan Facilities” means the
mining, processing, production, maintenance, administration, infrastructure and
related ancillary infrastructure constructed or operated by the Vendor and its
Affiliates to extract and beneficiate Minerals on the Milligan
Property.

     

    “Milligan Gold Right” has the
meaning set forth in Section 9.1.

     

    “Milligan Project” means
collectively, the Milligan Property and the Milligan Facilities.

     

    “Milligan Property” means the
Mineral Claims and the Mining Lease listed in Schedule B attached hereto,
and includes any extension, renewal, replacement, conversion or substitution of
any such Mineral Claims into a Mining Lease, Surface Rights or other right or
concession or after acquired or resulting Mining Lease, Mineral Claims, Surface
Rights and other rights or concessions, including any re-acquired after
abandonment or other disposition, but in every case without extending the area
covered by the Milligan Property past the area covered by the Mineral Claims and
the Mining Lease listed in Schedule B.

     

    “Milligan Report” means the
Technical Report pursuant to National Instrument 43-101 of the CSA of Terrane
Metals Corp. dated October 13, 2009, entitled “Technical Report – Feasibility
Update Mt. Milligan Property – Northern BC” or such other technical report under
National Instrument 43-101 as Thompson Creek may prepare from time to time
regarding the Milligan Project that establishes a mine plan for initial
commercial production of Minerals from the Milligan Property, provided that such
mine plan does not establish production at a materially lower volume or
materially extend the Development schedule compared to that contemplated in the
Milligan Report on the Effective Date.

     

    “Mineral Claim” means a mineral
claim issued under the Mineral
Tenure Act (British Columbia) or any successor statute thereto or by any
Governmental Authority.

     

    “Mineral Offtake Agreement”
means any agreement entered into by Vendor or any of its Affiliates with an
Offtaker (i) for the sale of Minerals to such Offtaker, or (ii) for the
smelting, refining or other beneficiation of Minerals by such Offtaker for the
benefit of the Vendor or any of its Affiliates, and all amendments or addendums
thereto.

     

    “Minerals” means any and all
marketable metal bearing material (including Produced Gold) in whatever form or
state that is mined, produced, extracted or otherwise recovered from the
Milligan Property, including any such material derived from any processing or
reprocessing of any tailings, waste rock or other waste products originally
derived from the Milligan Property, and including ore and any other products
requiring further milling, processing, smelting, refining or other
beneficiation, including concentrates or doré bars.

     

    “Mining Lease” means a mining
lease issued under the Mineral
Tenure Act (British Columbia) or any successor statute thereto or by any
Governmental Authority.

    

    
      
        
           

        

        
          - 7
-

          
            

          

        

        
           

        

      

    

     

    “Monthly Construction
Report” means a written report
in relation to a calendar month with respect to the Milligan Project prepared by
the engineering, procurement and construction management contractor and any
other internally-prepared monthly report covering aspects of the Development
Program but not included in the engineering, procurement and construction
management report, together with such other materials and information as the
Purchaser reasonably may request, which may include a summary of any (A)
material health and safety violations, (B) material violations of Applicable Law
(including Environmental Laws), (C) blockades or other disputes or disturbances
with First Nations groups, and (D) a summary of the status of Permits and Permit
applications, to be prepared by or on behalf of the Vendor for each month while
the Milligan Project is under Development.

     

    “Monthly Report” means a written report
in relation to a calendar month prepared by the Vendor or its Affiliates with
respect to the Milligan Project, together with such other materials and
information as the Purchaser reasonably may request, which may
include:

     

    
      	  	
              (i) 

            	
              a
      summary of the types, tonnes or tons and gold grade of ore
      mined;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              types,
      tonnes or tons and gold grade of any ore
  stockpiled;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              with
      respect to any processing plant of the Milligan Facilities, the types,
      tonnes or tons and gold grade of processed ore; recoveries for gold; dry
      concentrate tonnage or tonage and gold grades; and doré weight and gold
      grade;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      number of ounces of gold contained in ore processed during such month, but
      not delivered to an Offtaker by the end of such month;
  and

            

    

     

    
      	
               
      

            	
              (v)

            	
              such
      other matters as the Purchaser may reasonable request, which may include a
      summary of any (A) exploration programs, (B) operational issues, (C)
      material health and safety violations, (D) material violations of
      Applicable Law (including Environmental Laws), (E) blockades or other
      disputes or disturbances with First Nations groups, and (F) a summary of
      the status of Permits and Permit
applications.

            

    

     

    “Negotiation Period” has the
meaning set out in Section 9.1(b).

     

    “Offtaker” means any person
other than the Vendor or any of its Affiliates that is a counterparty to a
Mineral Offtake Agreement or an Affiliate of the Vendor who contracts with the
Vendor on arm’s length commercial terms in respect of the applicable Mineral
Offtake Agreement.

     

    “Offtaker Documents” means the
provisional documents and final settlement sheets delivered to or in the
possession of the Vendor that are necessary for the Purchaser to determine the
amount of Refined Gold sold by the Vendor to the Purchaser pursuant to Section
2.1(a) and such other related documents delivered to or in the possession of the
Vendor as the Purchaser may reasonably request, which may include all invoices,
credit notes, bills of lading,  and any and all certificates and other
documentation prepared or produced by the Offtaker, including without
limitation, certificates in respect of provisional and final shipped moisture
content, all provisional and final analyses and assays evidencing the amount of
Minerals, including Produced Gold, delivered to an Offtaker in each Lot and
evidencing the amount of Refined Gold projected or resulting from the refining,
smelting or other beneficiation of a particular Lot.

    

    
      
        
           

        

        
          - 8
-

          
            

          

        

        
           

        

      

    

     

    “Other Minerals” means any and
all marketable metal bearing material in whatever form or state (including ore)
that is mined, extracted or otherwise recovered from any location that is not
within the Milligan Property.

     

    “Parties” means the parties to
this Agreement.

     

    “Payment Deposit” has the
meaning set forth in Section 3.1.

     

    “Permits” means all material
licenses, permits, Approvals (including environmental Approvals) rights
(including surface and access rights), privileges, concessions or franchises
necessary for the construction, development, operation and reclamation of the
Milligan Project.

     

    “Permitted Encumbrances” means
at any time from time to time: (i) the Project Security, (ii) undetermined or
inchoate Encumbrances incidental to construction, maintenance or operations
which have not at the time been filed pursuant to law, (iii) the Encumbrance of
taxes and assessments for the then current year, the Encumbrance for taxes and
assessments not at the time overdue and Encumbrances securing worker’s
compensation assessments which are not overdue, (iv) cash or governmental
obligations deposited in the ordinary course of business in connection with
contracts, bids, tenders or to secure worker’s compensation, unemployment
insurance, surety or appeal bonds, costs of litigation, when required by law,
public and statutory obligations, Encumbrances or claims incidental to current
construction, mechanics’, warehousemen’s, carriers’ and other similar
Encumbrances, (v) security given in the ordinary course of business to a public
utility or any Governmental Authority when required by such utility or
Governmental Authority in connection with the operations of the Vendor in the
ordinary course of business, (vi) easements, rights of way and servitudes in
existence at the date hereof and future easements, rights of way and servitudes,
(vii) all rights reserved to or vested in any Governmental Authority by the
terms of any lease, licence, franchise, grant or permit held by the Vendor or by
any statutory provision to terminate any such lease, licence, franchise grant or
permit or to require annual or periodic payments as a condition of the
continuance thereof or to distrain against or to obtain an Encumbrance on any
property or assets of the Vendor in the event of failure to make such annual or
other periodic payments, (viii) such other Encumbrances as may from time to time
be consented to in writing by the Purchaser, and (ix) Encumbrances noted on
Schedule E.

     

    “person” includes an
individual, corporation, body corporate, limited or general partnership, joint
stock company, limited liability corporation, joint venture, association,
company, trust, bank, trust company, Governmental Authority or any other type of
organization, whether or not a legal entity.

     

    “Produced Gold” means any and
all gold in whatever form or state that is derived from any material mined,
produced, extracted or otherwise recovered from the Milligan Property during the
Term.  For greater certainty, “Produced Gold” shall include
any gold derived from ores, concentrates, doré, tailings, waste rock or other
waste products, or other products originating from the Milligan
Property.

    

    
      
        
           

        

        
          - 9
-

          
            

          

        

        
           

        

      

    

     

    “Project Costs” means the estimated
total costs for the Development, including capital costs, operating costs,
working capital costs, interest costs, and financing costs.

     

    “Project Financing” means one or more credit
facility(ies) available to the Vendor or any of its Affiliates for the purpose
of financing all or a portion of the Project Costs of the Development in
accordance with the Development Program that complies with Section 8.6,
including any refinancing
thereof.

     

    “Project Lenders” means the lenders and
their agents and trustees under any Project Financing.

     

    “Project Security” means Encumbrances in
favour of any Project Lenders (or agent or trustee on their behalf) as security
for the payment and performance, when due, of the obligations of the Vendor or
any of its Affiliates under any Project Financing.

     

    “Project Studies” has the
meaning set out in Section 7.3(c).

     

    “Purchaser” has the meaning set
out in the recitals to this Agreement.

     

    “Purchaser Event of Default”
has the meaning set out in Section 13.1.

     

    “Purchaser Gold Delivery” means
the Delivery of Refined Gold to the Purchaser as set out in Section
2.2(a).

     

    “Purchaser’s Pro Rata Share of
Funding” means the figure obtained by dividing the remaining Scheduled
Deposits by the Project Costs necessary to complete Development.

     

    “Receiving Party” has the
meaning set out in Section 8.7(a).

     

    “Reference Price” means the
market price used to determine the price for Refined Gold in connection with a
sale of Minerals under a Mineral Offtake Agreement.  For greater
certainty, “Reference Price” does not include Refining Adjustments.

     

    “Refining Adjustments” means
any refining charges, treatment charges, penalties, insurance charges,
transportation charges, settlement charges, financing charges or price
participation charges, or other similar charges or deductions, regardless of
whether such charges or deductions are expressed as a specific metal deduction,
separate and apart from the recovery rate pursuant to the terms of the
applicable Mineral Offtake Agreement.

     

    “Refined Gold” means marketable
metal bearing material in the form of gold bars or coins that is refined to a
minimum 995 parts per 1,000 fine gold.

     

    “Restricted Person” means any
person or entity that:

     

    
      	
               
      

            	
              (a)

            	
              is
      named, identified, described on or included on any
  of:

            

    

    

    
      
        
           

        

        
          - 10
-

          
            

          

        

        
           

        

      

    

     

    
      
        	  	
                 
      (i)

              	
                the
      lists maintained by the Office of the Superintendent of Financial
      Institutions Canada with respect to terrorism
  financing;

              

      

    

     

    
      
        	  	
                 (ii)

              	
                the
      Denied Persons List, the Entity List or the Unverified List, compiled by
      the Bureau of Industry and Security, U.S. Department of
      Commerce;

              

      

    

     

    
      
        	  	
                (iii)

              	
                the
      List of Statutorily Debarred Parties compiled by the U.S. Department of
      State;

              

      

    

     

    
      
        	  	
                (iv)

              	
                the
      Specially Designated Nationals Blocked Persons List compiled by the U.S.
      Office of Foreign Assets Control;
or

              

      

    

     

    
      
        	  	
                 (v)

              	
                the
      annex to, or is otherwise subject to the provisions of, U.S. Executive
      Order No. 13324,

              

      

    

     

    
      
        	  	
                (b)

              	
                is
      subject to trade restrictions under United States law, including, but not
      limited to:

              

      

    

     

    
      
        	  	
                 (i)

              	
                the
      International Emergency
      Economic Powers Act, 50 U.S.C.;
or

              

      

    

     

    
      
        	
              	
                (ii)

              	
                the
      Trading with the Enemy Act, 50 U.S.C. App. 1 et seq.; or any other
      enabling legislation or executive order relating thereto, including the
      Uniting and Strengthening America by Providing Appropriate Tools Required
      to Intercept and Obstruct Terrorism Act of 2001, Title III of Pub. L.
      107-56; or

              

      

    

     

    
      	
               
      

            	
              (c)

            	
              is
      a person or entity who is an Affiliate of a person or entity listed
      above.

            

    

     

    “Sales Tax” has the meaning set
out in Section 2.6.

     

    “SEC” has the meaning set out
in Section 8.7(a)(ii).

     

    “Security Agreements” has the
meaning set out in Section 4.1(b).

     

    “Surface Rights” means all
rights to use, enter and occupy the surface of a Mineral Claim or Mining Lease
for the exploration and development or production of Minerals or placer
minerals, including the treatment of ore and concentrates, and all operations
related to the exploration and development or production of Minerals or placer
minerals and the business of mining, and all leases, licenses, contracts,
agreements, Permits or other documents relating to such rights, including
without limitation, any and all surface rights related to infrastructure such as
electric power lines and roads, surface tenures issued by a Governmental
Authority such as investigative permits and temporary permits, and any lease to
the surface of the Milligan Property or license of occupation or other
occupation right and includes any fee simple rights over any part of the
Milligan Property.

     

    “Term” has the meaning set out
in Section 6.1(a).

     

    “Thompson Creek” has the
meaning set out in the recitals to this Agreement.

    

    
      
        
           

        

        
          - 11
-

          
            

          

        

        
           

        

      

    

     

    “Time of Delivery” has the
meaning set out in Section 2.2(c).

     

    “Transfer” has the meaning set
forth in Section 10.3.

     

    “Vendor” has the meaning set
out in the recitals to this Agreement.

     

    “Vendor Event of Default” has
the meaning set out in Section 12.1.

     

    “Vendor Offer” has the meaning
set out in Section 9.1(a).

     

    
      	
              1.2

            	
              Certain
      Rules of Interpretation

            

    

     

    Except as
may be otherwise specifically provided in this Agreement and unless the context
otherwise requires:

     

    
      	
               
      

            	
              (a)

            	
              the
      terms “Agreement”, “this Agreement”, “the Agreement”, “hereto”, “hereof’,
      “herein”, “hereby”, “hereunder” and similar expressions refer to this
      Agreement in its entirety and not to any particular provision
      hereof;

            

    

     

    
      	
               
      

            	
              (b)

            	
              references
      to an “Article”, “Section” or “Schedule” followed by a number or letter
      refer to the specified Article or Section of or Schedule to this
      Agreement;

            

    

     

    
      	
               
      

            	
              (c)

            	
              headings
      of Articles and Sections are inserted for convenience of reference only
      and shall not affect the construction or interpretation of this
      Agreement;

            

    

     

    
      	
               
      

            	
              (d)

            	
              where
      the word “including” or “includes” is used in this Agreement, it means
      “including without limitation” or “includes without
      limitation”;

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      language used in this Agreement is the language chosen by the Parties to
      express their mutual intent, and no rule of strict construction shall be
      applied against any Party;

            

    

     

    
      	
               
      

            	
              (f)

            	
              unless
      the context otherwise requires, words importing the singular include the
      plural and vice versa and words importing gender include all
      genders;

            

    

     

    
      	
               
      

            	
              (g)

            	
              a
      reference to a statute includes all regulations made pursuant to such
      statute and, unless otherwise specified, any reference to a statute or
      regulation includes the provisions of any statute or regulation which
      amends, supplements or supersedes any such statute or any such
      regulation;

            

    

     

    
      	
               
      

            	
              (h)

            	
              in
      this Agreement a period of days shall be deemed to begin on the first day
      after the event which began the period and to end at 5:00 p.m. (Mountain
      time) on the last day of the period. If, however, the last day of the
      period does not fall on a Business Day, the period shall terminate at 5:00
      p.m. (Mountain time) on the next Business
Day;

            

    

     

    
      	
               
      

            	
              (i)

            	
              unless
      specified otherwise in this Agreement, all statements or references to
      dollar amounts in this Agreement are to United States of America dollars;
      and

            

    

     

    
      	
               
      

            	
              (j)

            	
              the
      following schedules are attached to and form part of this
      Agreement:

            

    

     

    
      
        
           

        

        
          - 12
-

          
            

          

        

        
           

        

      

    

     

    
      
        
          	
                  Schedule
      A1

                	
                  -

                	
                  Vendor
      Representations and Warranties

                
	
                  Schedule
      A2

                	
                  -

                	
                  Thompson
      Creek Representations and Warranties

                
	
                  Schedule
      A3

                	
                  -

                	
                  Purchaser
      Representations and Warranties

                
	
                  Schedule
      A4

                	
                  -

                	
                  Royal
      Gold Representations and Warranties

                
	
                  Schedule
      B

                	
                  -

                	
                  Description
      of Milligan Property (with Maps)

                
	
                  Schedule
      C1

                	
                  -

                	
                  Form
      of Security Agreement for Milligan Property

                
	
                  Schedule
      C2

                	
                  -

                	
                  Form
      of Security Agreement for Personal Property

                
	
                  Schedule
      C3

                	
                  -

                	
                  Form
      of Security Agreement - Floating Charge

                
	
                  Schedule
      D

                	
                  -

                	
                  Development
      Program and Scheduled Deposits

                
	
                  Schedule
      E

                	
                  -

                	
                  Permitted
      Encumbrances

                
	
                  Schedule
      F

                	
                  -

                	
                  Provisional
      Payment Illustration

                

        

      

    

     

    Article
2

    PURCHASE
AND SALE

     

    
      	
              2.1

            	
              Purchase
      and Sale of Refined Gold

            

    

     

    
      	
               
      

            	
              (a)

            	
              Subject
      to and in accordance with the terms of this Agreement, the Vendor hereby
      agrees to sell to the Purchaser, and the Purchaser hereby agrees to
      purchase from the Vendor, an amount of Refined Gold equal to the
      Designated Percentage of Produced Gold, free and clear of all
      Encumbrances.

            

    

     

    
      	
               
      

            	
              (b)

            	
              For
      each sale of Refined Gold pursuant to Section 2.1(a), the amount of
      Produced Gold used as the basis for calculating the Designated Percentage
      of Produced Gold shall be determined by the amount of contained gold in
      the Minerals received at the Offtaker as determined by the Offtaker
      Documents.  Produced Gold shall not be reduced for, and the
      Purchaser shall not be responsible for, any Refining
      Adjustments.

            

    

     

    
      	
              2.2

            	
              Delivery
      Obligations

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      Vendor will effect the sale to Purchaser of the Refined Gold as
      contemplated in Section 2.1(a) within two Business Days following the date
      of the relevant Gold Payment.  In the event a Gold Payment
      consists of a provisional payment,
then:

            

    

     

    
      
        	
              	
                 
      (i)

              	
                if
      such Gold Payment represents a provisional payment in respect of a Lot
      under a Mineral Offtake Agreement that is made in the form of Refined
      Gold, the Vendor shall sell and deliver to the Purchaser Refined Gold
      equal to the Designated Percentage of Produced Gold for such Lot
      multiplied by the applicable provisional payment percentage specified in
      such Mineral Offtake
Agreement;

              

      

    

     

    
      
        	
              	
                 (ii)

              	
                if
      such Gold Payment represents a provisional payment in cash in respect of a
      Lot under a Mineral Offtake Agreement, the Vendor shall sell and deliver
      to the Purchaser Refined Gold equal to the Designated Percentage of
      Produced Gold (based on the Produced Gold identified on the provisional
      settlement sheet provided by the Offtaker for such Lot) multiplied by the
      applicable Lot Provisional
Percentage;

              

      

    

    

    
      
        
           

        

        
          - 13
-

          
            

          

        

        
           

        

      

    

     

    
      
        	  	
                (iii)

              	
                *[Redacted]*;

              

      

    

     

    
      
        	
              	
                (iv)

              	
                in
      respect of a Gold Payment that represents the final settlement payment
      under a Mineral Offtake Agreement for any Lot for which the Vendor
      previously Delivered Refined Gold to the Purchaser in connection with a
      provisional Gold Payment pursuant to Section 2.2(a)(i), 2.2(a)(ii) or
      2.2(a)(iii) above, the Vendor shall sell and deliver to the Purchaser
      Refined Gold in an amount equal to the amount by which the Designated
      Percentage of Produced Gold determined pursuant to the final settlement
      with respect to such Lot exceeds the Refined Gold previously delivered to
      the Purchaser in respect of such Gold Payment pursuant to Sections
      2.2(a)(i), 2.2(a)(ii) or 2.2(a)(iii) above, as supported by the
      documentation provided pursuant to Section 2.3, provided, that, if such
      difference is negative, then the Vendor shall only be entitled to set off
      and deduct such excess amount of Refined Gold from the next required
      deliveries by the Vendor under this Agreement until it has been fully
      offset against deliveries to the Purchaser of Refined Gold pursuant to
      Sections 2.2(a)(i), 2.2(a)(ii) and 2.2(a)(iii);
  and

              

      

    

     

    
      	
               
      

            	
               (v)

            	
              Schedule
      F sets forth an illustration of the determination of Refined Gold to be
      delivered to the Purchaser in the case of a provisional Gold Payment
      described in Sections 2.2(a)(ii) and 2.2(a)(iii) above and the Gold
      Payment representing a final settlement payment in respect of the same
      Lot.

            

    

     

    For the
avoidance of doubt, in the event that the Vendor does not Deliver Refined Gold
to the Purchaser in connection with a provisional Gold Payment with respect to
any Lot, the Vendor will effect the sale to the Purchaser of Refined Gold with
respect to such Lot as contemplated in Section 2.1(a) within two Business Days
following the date of the Gold Payment in the form of a final settlement for
such Lot.

     

    
      	
               
      

            	
              (b)

            	
              Vendor
      shall sell and deliver to the Purchaser all Refined Gold to be sold and
      delivered under this Agreement by way of Delivery to the metal account or
      accounts designated by the Purchaser from time to time in North America,
      the United Kingdom or Switzerland or such other location as is mutually
      agreed by the Parties (the “Purchaser Gold
      Delivery”).

            

    

     

    
      	
               
      

            	
              (c)

            	
              Delivery
      of Refined Gold to the Purchaser shall be deemed to have been made at the
      time on the date of Delivery of Refined Gold in the designated metal
      account of the Purchaser pursuant to paragraph (b) (the “Time of Delivery” on the
      “Date of
      Delivery”). Title to, and risk of loss of, Refined Gold shall pass
      from Vendor to the Purchaser at the Time of Delivery. All costs and
      expenses pertaining to each Delivery of Refined Gold by Vendor to the
      Purchaser shall be borne by Vendor.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Vendor
      hereby represents and warrants to the Purchaser that, notwithstanding the
      Vendor’s prior sale to Offtaker of Minerals from which the relevant
      Refined Gold is derived, at each Time of Delivery (i) Vendor will be the
      legal and beneficial owner of the Refined Gold that is Delivered to a
      metal account of the Purchaser, (ii) Vendor will have good, valid and
      marketable title to such Refined Gold, and (iii) such Refined Gold will be
      free and clear of all Encumbrances.

            

    

     

    
      

    

    
      
        *[Redacted]*  indicates
confidential information that has been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934.  The confidential information has
been submitted separately to the U.S. Securities and Exchange
Commission.

         

      

    

    
      
        
           

        

        
          - 14
-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (e)

            	
              The
      Parties acknowledge that Vendor shall be entitled but shall not be obliged
      to sell or deliver to the Purchaser the Refined Gold physically resulting
      from gold mined, produced, extracted or otherwise recovered from the
      Milligan Property, and for greater certainty, shall be entitled to sell
      and Deliver Refined Gold that is otherwise obtained by the Vendor for the
      purpose of making such sale and Delivery to the
  Purchaser.

            

    

     

    
      	
              2.3

            	
              Statements

            

    

     

    Vendor
shall notify the Purchaser in writing of a Purchaser Gold Delivery, no later
than the Time of Delivery, by delivery of a statement to the Purchaser that
includes:

     

    
      	
               
      

            	
              (a)

            	
              the
      calculation of the number of ounces of Refined Gold credited or physically
      Delivered;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Offtaker Documents on which the calculation is
  based;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      Date of Delivery and estimated Time of
Delivery;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      Gold Purchase Price for such Refined Gold;
and

            

    

     

    
      	
               
      

            	
              (e)

            	
              the
      Mineral Offtake Agreement under which such delivery was
    made.

            

    

     

    
      	
              2.4

            	
              Gold
      Purchase Price

            

    

     

    The
Purchaser shall pay to the Vendor a purchase price for each ounce of Refined
Gold sold and Delivered by the Vendor to the Purchaser under this Agreement (the
“Gold Purchase
Price”) equal to:

     

    
      	
               
      

            	
              (a)

            	
              prior
      to the Deposit Reduction Time, the Reference Price, payable by wire
      transfer up to the amount of the Fixed Price; and, if such Reference Price
      is greater than the Fixed Price, payable by crediting an amount equal to
      the difference between such Reference Price and the Fixed Price against
      the Payment Deposit in order to reduce the uncredited balance of the
      Payment Deposit until the uncredited balance of the Payment Deposit has
      been credited and reduced to nil;
and

            

    

     

    
      	
               
      

            	
              (b)

            	
              from
      and after the Deposit Reduction Time, the lesser of the Fixed Price and
      the Reference Price, payable by wire
transfer.

            

    

     

    
      
        	
                2.5

              	
                Payment

              

      

    

     

    Payment
by the Purchaser for each Delivery of Refined Gold shall be made no later than
two Business Days after the applicable Purchaser Gold Delivery by wire transfer
to a bank account of the Vendor designated in accordance with Section
15.2.

     

    
      
        
           

        

        
          - 15
-

          
            

          

        

        
           

        

      

    

     

    
      	
              2.6

            	
              Sales
      Tax

            

    

     

    All
federal, provincial, state and foreign sales and transfer taxes, sales and use
taxes, goods and services taxes, value-added taxes, duties, fees, registration
charges or other like charges (“Sales Taxes”) which are
properly payable in connection with the purchase and sale of the Refined Gold
contemplated by this Agreement shall be borne by the Party responsible for such
Sales Taxes under the Applicable Law.  Each party shall cause to be filed
as required by it under applicable law all tax returns and other documentation,
at its own expense, with respect to such Sales Taxes.

     

    Article
3

    DEPOSIT

     

    
      	
              3.1

            	
              Payment
      Deposit

            

    

     

    The
Purchaser hereby agrees to pay a cash deposit of US$311,500,000 to be applied
against the Gold Purchase Price, on and subject to the terms of this Agreement
(the “Payment
Deposit”).  The Purchaser shall only have the right to demand
refund or repayment of all or any unapplied portion of the Payment Deposit as
provided in Section 3.7 or as otherwise specifically provided in this
Agreement.

     

    
      	
              3.2

            	
              Initial
      Deposit

            

    

     

    The
Purchaser hereby agrees to pay US$226,500,000 of the Payment Deposit by wire
transfer to the Vendor on the Effective Date (this portion of the Payment
Deposit being the “Initial
Deposit”).

     

    
      	
              3.3

            	
              Scheduled
      Deposits

            

    

     

    The
Purchaser hereby agrees to pay US$85,000,000 of the Payment Deposit (this
portion of the Payment Deposit being the “Scheduled Deposits”, and each
partial payment thereof a “Scheduled Deposit”) to the
Vendor by way of cash deposits in accordance with Article 5.  Once a
Scheduled Deposit has been paid, such Scheduled Deposit shall be referred to
herein as a “Paid Scheduled
Deposit.”

     

    
      	
              3.4

            	
              No
      Interest

            

    

     

    No
interest shall be payable on the Payment Deposit.

     

    
      	
              3.5

            	
              Use
      of Payment Deposit

            

    

     

    It is
agreed and acknowledged that Thompson Creek and the Vendor shall use the Payment
Deposit as follows:

     

    
      	
               
      

            	
              (a)

            	
              the
      Initial Deposit will be used as a portion of the consideration payable to
      shareholders of Vendor by Thompson Creek in connection with the
      Acquisition; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Scheduled Deposits will be used for Vendor’s funding requirements with
      respect to the Development pursuant to the Development
      Program.

            

    

     

    
      
        
           

        

        
          - 16
-

          
            

          

        

        
           

        

      

    

     

    
      	
              3.6

            	
              Deposit
      Record

            

    

     

    The
Vendor shall, at all times, maintain a record of the Payment Deposit under this
Agreement (the “Deposit
Record”), which shall be stated in US$ and the balance thereof shall be
equal to:

     

    (Initial
Deposit) + (all Paid Scheduled Deposits) – (all reductions of the Payment
Deposit in accordance with Section 2.4, 3.7 or otherwise)

     

    
      	
              3.7

            	
              Deposit
      at Expiry of Initial Term

            

    

     

    Vendor
shall pay any uncredited balance of the Payment Deposit, as evidenced by the
Deposit Record, by wire transfer to the Purchaser within 45 days after the
expiry of the Initial Term, and shall provide a detailed calculation of the
Deposit Record on the expiry of the Initial Term (other than the expiry of the
Term due to termination of this Agreement under Section 12.2 or Section 13.2)
unless the Vendor has sold and Delivered to the Purchaser an amount of Refined
Gold sufficient to reduce the balance of the Deposit Record to nil as calculated
in accordance with Section 3.6.

     

    Article
4

    DELIVERIES

     

    
      	
              4.1

            	
              Deliveries
      of Vendor

            

    

     

    The
Vendor hereby agrees to deliver to the Purchaser the following concurrent with
execution and delivery of this Agreement:

     

    
      	
               
      

            	
              (a)

            	
              an
      executed certificate of a senior officer of Vendor in form and substance
      satisfactory to the Purchaser, acting reasonably, dated as of the
      Effective Date, as to: (i) resolutions of the board of directors or other
      comparable authority of Vendor authorizing the execution, delivery and
      performance of this Agreement, and the Security Agreements and the
      transactions contemplated hereby, (ii) the names, positions and true
      signatures of the persons authorized to sign this Agreement and the
      Security Agreements on behalf of Vendor, and (iii) such other matters
      pertaining to the transactions contemplated hereby as the Purchaser may
      reasonably require;

            

    

     

    
      	
               
      

            	
              (b)

            	
              as
      security for the performance of its obligations to the Purchaser under
      this Agreement, the executed Security Agreements in substantially the form
      attached as Schedules C1, C2 and C3 (the “Security Agreements”),
      which Security Agreements shall have been registered, filed or recorded in
      all offices, and all actions shall have been taken, that may be prudent or
      necessary to preserve, protect or perfect the security interest of the
      Purchaser under the Security Agreements.  Without limiting the
      foregoing, the Security Agreements on the Milligan Property shall also be
      registered in: (i) British Columbia’s Mineral Titles Online Registry
      against each of the Mineral Claims and Mineral Leases that are part of the
      Milligan Property, (ii) British Columbia’s Personal Property Registry
      against all personal property of Vendor, and (iii) in the Land Title
      Office with respect to any Surface Rights that are registered in the Land
      Title Office from time to time, in which case the Vendor will grant to the
      Purchaser a mortgage over its interest in such Surface Rights as security
      for the performance of its obligations to the Purchaser under this
      Agreement in a form acceptable to the Parties, acting
      reasonably;

            

    

     

    
      
        
           

        

        
          - 17
-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (c)

            	
              a
      favourable legal opinion, in form and substance satisfactory to the
      Purchaser, acting reasonably, dated as of the Effective Date, from legal
      counsel to Vendor as to (i) the legal status of Vendor, (ii) the corporate
      power and authority of Vendor to execute, deliver and perform this
      Agreement and the Security Agreements, (iii) the execution and delivery of
      this Agreement and the enforceability of this Agreement against the
      Vendor, (iv) such legal opinions relating to the security granted in
      favour of the Purchaser as Purchaser may reasonably request, and (v) such
      other legal opinions that the Purchaser may reasonably request;
      and

            

    

     

    
      	
               
      

            	
              (d)

            	
              evidence
      of the satisfaction and discharge of the following charges in favour of
      the Bank of Montreal and related obligations of the
  Vendor:

            

    

     

    
      	
               
      

            	
               
      (i)

            	
              Base
      Registration No. 478928E in the British Columbia Personal Property
      Registry;

            

    

     

    
      	
               
      

            	
               (ii)

            	
              Registration
      No. 123380 in the Nunavut Personal Property
  Registry;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Registration
      No. 2008/07039 14865 in the Yukon Personal Property Registry;
      and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Registration
      No. 625251 in the Northwest Territories Personal Property
      Registry.

            

    

     

    
      	
              4.2

            	
              Deliveries
      of Purchaser

            

    

     

    Purchaser
hereby agrees to deliver to Vendor the following concurrent with execution and
delivery of this Agreement:

     

    
      	
               
      

            	
              (a)

            	
              wire
      transfer of funds to or to the direction of Vendor equal to the Initial
      Payment Deposit;

            

    

     

    
      	
               
      

            	
              (b)

            	
              a
      certificate of a senior officer of the Purchaser, in form and substance
      satisfactory to Vendor, acting reasonably, as to: (i) the resolutions of
      the board of directors of the Purchaser, authorizing the execution,
      delivery and performance of this Agreement and the transactions
      contemplated hereby, (ii) the names, positions and true signatures of the
      persons authorized to sign this Agreement on behalf of the Purchaser, and
      (iii) such other matters pertaining to the transactions contemplated
      hereby as Vendor may reasonably require;
and

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      favourable legal opinion, in form and substance satisfactory to Vendor,
      acting reasonably, from external legal counsel to the Purchaser as to (i)
      the legal status of the Purchaser, (ii) the corporate power and authority
      of the Purchaser to execute, deliver and perform this Agreement, (iii) the
      execution and delivery of this Agreement and the enforceability of this
      Agreement against the Purchaser, and (iv) such other legal opinions as the
      Vendor may reasonably request.

            

    

     

    
      
        
           

        

        
          - 18
-

          
            

          

        

        
           

        

      

    

     

    Article
5

    PAYMENT
OF SCHEDULED DEPOSITS

     

    
      	
              5.1

            	
              Achievement
      of Deposit Events

            

    

     

    Vendor
may, from time to time, demand payment by Purchaser to Vendor of a Scheduled
Deposit in accordance with the requirements set forth in Schedule D (a “Deposit Event”) by providing
to the Purchaser and the Independent Engineer a statement containing the
following at least 10 calendar days prior to the relevant Deposit
Event:

     

    
      	
               
      

            	
              (a)

            	
              the
      date of the Deposit Event;

            

    

     

    
      	
               
      

            	
              (b)

            	
              an
      accounting of the amount of Project Costs to date contributed by each of
      Purchaser, Vendor, and any third party funding the
      Development;

            

    

     

    
      	
               
      

            	
              (c)

            	
              an
      estimate of the amount of Project Costs necessary to complete the
      Development in accordance with the Development Program and any
      modifications thereto;

            

    

     

    
      	
               
      

            	
              (d)

            	
              a
      current calculation of the Purchaser’s Pro Rata Share of
      Funding;

            

    

     

    
      	
               
      

            	
              (e)

            	
              Vendor’s
      forecast of the total Project Costs to be used during the period of time
      encompassing the corresponding Scheduled
  Deposit;

            

    

     

    
      	
               
      

            	
              (f)

            	
              the
      amount of United States dollars requested for the corresponding Scheduled
      Deposit;

            

    

     

    
      	
               
      

            	
              (g)

            	
              the
      anticipated uses for the corresponding Scheduled Deposit;
    and

            

    

     

    
      	
               
      

            	
              (h)

            	
              the
      expected date of the next ensuing Deposit
Event.

            

    

     

    
      	
              5.2

            	
              Payment
      of Scheduled Deposits

            

    

     

    Subject
to Section 5.3, Purchaser shall pay the Vendor the Scheduled Deposit under a
Deposit Event by wire transfer no later than one Business Day following the date
upon which the corresponding Deposit Event occurs to a bank account of Vendor
designated in accordance with Section 15.2.

     

    
      	
              5.3

            	
              Closing
      Conditions for Payment of Scheduled
Deposits

            

    

     

    The
obligation of the Purchaser to make a Scheduled Deposit payment in accordance
with a Deposit Event is subject to the satisfaction of the following
conditions:

     

    
      	
               
      

            	
              (a)

            	
              the
      Vendor shall have delivered to Purchaser the relevant statement described
      in Section 5.1;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Vendor shall have delivered to the Purchaser an executed certificate of a
      senior officer of the Vendor certifying (and evidencing in the case of
      (iv) and (v) below) that, as of the Deposit
  Event:

            

    

     

    
      
        
           

        

        
          - 19
-

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
               
      (i)

            	
              the
      representations and warranties made by the Vendor and Thompson Creek set
      forth in Schedule A1 and Schedule A2 and in the Security Agreements,
      remain true and correct in all material respects on and as of such
      date;

            

    

     

    
      	
               
      

            	
               (ii)

            	
              no
      Vendor Event of Default (or an event which with notice or lapse of time or
      both would become a Vendor Event of Default) has occurred and is
      continuing;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              except
      as otherwise previously communicated to the Purchaser and the Independent
      Engineer, no changes to the Development Program have occurred, the
      Development is in accordance with the Development Program and the Vendor
      has not abandoned the Milligan
Project;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      Vendor has obtained or has access to sufficient financing to complete the
      Development (including pursuant to any modifications to the Development
      Program);

            

    

     

    
      	
               
      

            	
                (v)

            	
              all
      material Permits have been obtained and are in good standing for the
      conduct of the activities conducted in the Development Program to date and
      for the use of funds contemplated by the Deposit Event, and no material
      Permit has been revoked or rescinded that is necessary for the
      commencement of commercial production of Minerals from the Milligan
      Project;

            

    

     

    
      	
               
      

            	
               (vi)

            	
              no
      written notice of any Encumbrance other than a Permitted Encumbrance
      against the Milligan Property has been received by Vendor;
    and

            

    

     

    
      	
               
      

            	
              (vii)

            	
              no
      Deposit Suspension Event has occurred and is
  continuing.

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      Purchaser has not received from the Independent Engineer, prior to the
      date of the Deposit Event, notification that (i) the Development is not in
      accordance with the Development Program, (ii) the Vendor does not have
      sufficient Permits to complete the proposed work program represented by
      the funds under the Deposit Event or that one or more material Permits has
      been revoked, rescinded or is not in good standing, or (iii) the
      Purchaser’s Pro Rata Share of Funding set forth in the statement described
      in Section 5.1 is not correct.

            

    

     

    Article
6

    TERM

     

    
      	
              6.1

            	
              Term

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      term of this Agreement shall commence on the date of this Agreement and,
      subject to Sections 12.2, 13.2 and 6.1(b), shall continue until the date
      that is 50 years after the date of this Agreement (the “Initial Term”) and thereafter
      shall automatically be extended for successive 10 year periods (each an
      “Additional Term” and, together with
      the Initial Term, the “Term”).

            

    

     

    
      
        
           

        

        
          - 20
-

          
            

          

        

        
           

        

      

    

    
      	
               
      

            	
              (b)

            	
              This
      Agreement may be terminated by the Parties on mutual written consent, or
      as otherwise provided in this
Agreement.

            

    

     

    Article
7

    REPORTING;
BOOKS AND RECORDS; INSPECTIONS

     

    
      	
              7.1

            	
              Monthly
      Reporting

            

    

     

    During
the full period in which Development expenditures are being made, the Vendor
shall deliver to the Purchaser a Monthly Construction Report on or before the
30th
calendar day after the end of each calendar month.  Commencing with
the month in which Minerals are first shipped to an Offtaker, the Vendor shall
deliver to the Purchaser a Monthly Report on or before the 30th
calendar day after the end of each calendar month.

     

    
      	
              7.2

            	
              Annual
      Reporting

            

    

     

    Within 60
calendar days after the end of each calendar year, Vendor will deliver to the
Purchaser an annual report that addresses the following for the Milligan
Project:

     

    
      	
               
      

            	
              (a)

            	
              a
      statement setting out the most recent estimated gold reserves and
      resources for the Milligan Property for such calendar year and the
      assumptions used, including cut-off grade, metal prices and metal
      recoveries;

            

    

     

    
      	
               
      

            	
              (b)

            	
              a
      budget, mine operating plan and production forecast of the number of
      ounces of Produced Gold expected to be produced over the next calendar
      year, including:

            

    

     

    
      
        	
              	
                 
      (i)

              	
                tonnes
      or tons, types and gold grade of ore to be
  mined;

              

      

    

     

    
      
        	
              	
                 (ii)

              	
                types,
      tonnes or tons and gold grade of ore to be stockpiled;
  and

              

      

    

     

    
      
        	
              	
                (iii)

              	
                a
      forecast as to the amount of Minerals expected to be produced over the
      next year.

              

      

    

     

    
      	
              7.3

            	
              Additional
      Reporting Requirements

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      Vendor shall provide to Purchaser a copy of any life of mine plan or
      similar comprehensive operating plan produced by or on behalf of Vendor
      detailing the production and development plan for the Milligan Property
      reserves and resource, including all supportive narrative, assumptions and
      strategies, and any update thereto, within 15 days after any life of mine
      plan or update is prepared.

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      Vendor or its Affiliates shall provide the Purchaser with copies of
      reserve and resource reports on the Milligan Property from time to time as
      they become available.

            

    

     

    
      	
               
      

            	
              (c)

            	
              To
      the extent not otherwise required to be delivered herein, the Vendor shall
      promptly provide the Purchaser with all feasibility studies and all
      geological, reserve, engineering and metallurgical and related data and
      evaluations of the Milligan Project prepared by or for the benefit of the
      Vendor or otherwise in the possession and control of Vendor which would
      reasonably be expected to be material to the Purchaser’s interest in the
      Milligan Project (the “Project
      Studies”).

            

    

     

    
      
        
           

        

        
          - 21
-

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (d)

            	
              The
      Vendor shall provide to the Purchaser a statement setting out the Deposit
      Record, including the outstanding balance owing under the Deposit Record,
      as at June 30 and as at December 31 of each calendar year, in each case
      within 30 days following such date (a “Deposit Record
      Report”).

            

    

     

    
      	
              7.4

            	
              Books
      and Records

            

    

     

    
      	
               
      

            	
              (a)

            	
              Vendor
      and its Affiliates shall, in all material respects, keep true, complete
      and accurate books and records of all of its operations and activities
      with respect to the Milligan Project, including the mining and production
      of Minerals and the treatment, processing, milling, concentrating,
      transportation and sale of Minerals. Vendor and its Affiliates shall
      permit the Purchaser and its authorized representatives and agents to
      perform audits no more than once each year and additional limited reviews
      and examinations of its books and records and other information relevant
      to the production, delivery and determination of Produced Gold and Refined
      Gold from time to time at reasonable times, all at the Purchaser’s sole
      risk and expense and upon reasonable notice to confirm compliance with the
      terms of this Agreement. The Purchaser shall diligently complete any audit
      or other reviews and examination permitted
  hereunder.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Vendor
      shall use reasonable commercial efforts to provide in the terms of
      relevant Mineral Offtake Agreements a right of Purchaser to have access to
      and review relevant testing, documents and data of Offtakers and otherwise
      derived pursuant to relevant Mineral Offtake Agreements in respect of
      smelting, refining and beneficiation of
  Minerals.

            

    

     

    
      	
              7.5

            	
              Inspections

            

    

     

    Subject
at all times to the workplace rules and supervision of Vendor, and provided any
rights of access do not interfere with any exploration, development, mining or
processing work conducted on the Milligan Property, Vendor shall grant to the
Purchaser and its representatives and agents, including, without limitation, the
Independent Engineer, at reasonable times and upon reasonable notice and at the
Purchaser’s sole risk and, subject to Section 15.1, expense, the right to access
and inspect the Milligan Property and to monitor Vendor’s mining and processing
operations on the Milligan Project.  The Vendor shall not be
responsible for injuries to or damages suffered by the Purchaser and its
representatives and agents, including, without limitation the Independent
Engineer, while visiting the Milligan Property unless such injuries or damages
are caused or contributed to by the gross negligence or wilful misconduct of the
Vendor or its representatives. The Purchaser may avail itself of such right of
access a maximum of twice per calendar year, other than as required by the
Independent Engineer.  To the extent permitted under Mineral Offtake
Agreements, Purchaser and its representatives and agents, including without
limitation, the Independent Engineer, shall also have the right to be present or
to be represented at any smelter, refinery or other processing facility at which
the weighing, sampling and assaying of metals and the calculation of the Refined
Gold will be determined (i) at any time that the Vendor or any Affiliate, its
representatives or agents is present, provided, that the Vendor or any such
Affiliate shall give the Purchaser reasonable advanced notice of any such visit,
and (ii) at such other time as the Purchaser may request, provided, that the
Purchaser shall give the Vendor reasonable advanced notice of the date on which
Purchaser intends to conduct such visit.  Vendor shall grant to the
Independent Engineer such access to the Milligan Project and its site,
facilities and employees, and to construction and other contractors at such
times and on such notice as the Independent Engineer considers reasonable for
the performance of the Independent Engineer’s duties with respect to this
Agreement.

    

    
      
        
           

        

        
          - 22
-

          
            

          

        

        
           

        

      

    

     

    Article
8

    COVENANTS

     

    
      	
              8.1

            	
              Conduct
      of Operations

            

    

     

    
      	
               
      

            	
              (a)

            	
              All
      decisions regarding the Milligan Project, including all decisions
      concerning the methods, extent, times, procedures and techniques of any
      (i) exploration, development and mining related to the Milligan Project,
      including spending on capital expenditures, (ii) leaching, milling,
      processing or extraction, (iii) materials to be introduced on or to the
      Milligan Project, and (iv) except as provided herein, the sales of
      Minerals and terms thereof shall be made by Vendor, in its sole
      discretion. Without limiting the generality of the foregoing, Vendor shall
      be permitted to amend the mine plan, process design and/or plant and
      equipment for the Milligan Project at any time and from time to time in
      its sole discretion, provided that it is acting in a commercially
      reasonable manner and not inconsistent with accepted Canadian mining
      practice.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Notwithstanding
      Section 8.1(a), Vendor agrees that it shall carry out and perform all
      mining operations and activities pertaining to or in respect of the
      Milligan Project in a commercially reasonable manner and in accordance
      with Applicable Laws, all applicable licences, Permits and other
      authorizations and accepted mining, processing, engineering and
      environmental practices prevailing in the mining industry.
  

            

    

     

    
      	
               
      

            	
              (c)

            	
              Notwithstanding
      Section 8.1(a), Vendor and its Affiliates shall operate the Milligan
      Project as though the Vendor had a full economic interest in all the gold
      produced from the Milligan Property and shall not consider the economic
      impact of the Agreement in its reserves and resources calculations or mine
      planning provided, that the Vendor may seek the Purchaser’s written
      consent (which consent may be withheld in the Purchaser’s sole discretion)
      to consider the economic impact of this Agreement with respect to a
      material expansion of the Milligan Project or the reprocessing of
      tailings, waste rock or other waste
products.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Vendor
      shall at all times during the Term do all things necessary to maintain the
      Milligan Property and, subject to Sections 9.1(a)(ii) and (d)(ii) and
      10.3(b), maintain the related Mineral Claims and Mining Leases in good
      standing, including paying all taxes owing in respect
    thereof.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Notwithstanding
      anything else contained in this Section 8.1, nothing in this Agreement
      shall require Vendor or any of its Affiliates to construct, operate or
      continue the Milligan Project or to explore or develop the Milligan
      Project.

            

    

     

    
      
        
           

        

        
          - 23
-

          
            

          

        

        
           

        

      

    

    

    
      	
              8.2

            	
              Preservation
      of Corporate Existence

            

    

     

    Vendor
shall at all times during the term of this Agreement do and cause to be done all
things necessary or advisable to maintain its corporate existence.

     

    
      	
              8.3

            	
              Processing/Commingling

            

    

     

    The
Vendor may, and may cause each of its Affiliates to, process Other Minerals
through the Milligan Facilities in priority to, or commingle Other Minerals
with, Minerals mined, produced, extracted or otherwise recovered from the
Milligan Property, provided: (i) Vendor (or such Affiliate) has adopted and
employs best industry practices and procedures for weighing, determining
moisture content, sampling and assaying and determining recovery factors (a
“Commingling Plan”),
(ii) the Purchaser has approved the Commingling Plan, such approval not to be
unreasonably withheld, and (iii) Vendor or such Affiliate keeps records required
by the Commingling Plan.

     

    
      	
              8.4

            	
              Mineral
      Offtake Agreements

            

    

     

    
      	
               
      

            	
              (a)

            	
              During
      the Term, the Vendor shall deliver, and (subject to Section 2.1(a)) Vendor
      shall sell, all Minerals that contain Produced Gold to an Offtaker
      pursuant to a Mineral Offtake Agreement, in such quantity, description and
      amounts and at such times and places as required under and in accordance
      with a Mineral Offtake Agreement.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Vendor
      shall take commercially reasonable steps to ensure that it has sufficient
      Mineral Offtake Agreements to efficiently recover gold as and when
      Minerals are produced from the Milligan Project.  Vendor shall
      use commercially reasonable efforts to cause the market price for
      determination of any and all Refined Gold (including under provisional
      payments) sold by Vendor under each Mineral Offtake Agreement to be based
      on an average set by the London Bullion Market Association (or any
      successor thereto) or such other benchmark on such gold market as the
      Parties may mutually agree.  Vendor shall provide the Purchaser
      with a final signed copy of any Mineral Offtake Agreement within ten
      Business Days after the execution
thereof.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Vendor
      shall take commercially reasonable steps to enforce its rights and
      remedies under each Mineral Offtake Agreement with respect to any breaches
      of the terms thereof relating to the timing and amount of payments for
      gold to be made thereunder. Vendor shall notify the Purchaser in writing
      when any dispute arising out of or in connection with any such Mineral
      Offtake Agreement is commenced in respect of Minerals and shall provide
      the Purchaser with timely updates of the status of any such dispute and
      the final decision and award of the court or arbitration panel with
      respect to such dispute, as the case may be.  Vendor shall
      notify the Purchaser in writing upon the occurrence of any force majeure
      or similar provision under any Mineral Offtake Agreement and shall provide
      the Purchaser with timely updates of the status
  thereof.

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      Vendor shall use its commercially reasonable efforts to cause each Mineral
      Offtake Agreement to provide for provisional Gold Payments in the form of
      Refined Gold, which for purposes of this Section 8.4(d) does not include
      paying to an Offtaker greater consideration for its services than would be
      payable for a provisional payment that was in the form of
      cash.

            

    

     

    
      
        
           

        

        
          - 24
-

          
            

          

        

        
           

        

      

    

    

    
      	
              8.5

            	
              Insurance

            

    

     

    
      	
               
      

            	
              (a)

            	
              Vendor
      shall maintain with reputable insurance companies insurance with respect
      to the Milligan Project and for the construction, development and
      operations on and in respect of the Milligan Project against such
      casualties and contingencies and of such types and in such amounts as is
      customary in the Canadian mining industry for similar
      operations.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Vendor
      shall ensure that each shipment of Produced Gold is adequately insured, in
      such amounts and with such coverage as is customary in the Canadian mining
      industry, until the time that risk of loss and damage for such Produced
      Gold is transferred to the Offtaker pursuant to a Mineral Offtake
      Agreement.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Where
      the Vendor or its Affiliate receives payment under any insurance policy in
      respect of a shipment of Produced Gold that is lost or damaged after
      leaving the Milligan Project and before the risk of loss or damage is
      transferred to the Offtaker, the Vendor shall sell and deliver to the
      Purchaser (without duplication to the extent previously sold and delivered
      to the Purchaser by the Vendor) pursuant to Sections 2.1 and 2.4, an
      amount of Refined Gold having a value equal to 25% of the amount of the
      insurance payment received by the Vendor and its Affiliates in respect of
      Produced Gold in such shipment.

            

    

     

    
      	
              8.6

            	
              Permitted
      Debt Financings and Permitted
Encumbrances

            

    

     

    [Provisions below (and conforming definitions) have not been
settled/agreed to by parties]

     

    [Provisions on timing of release to be settled/agreed to by
parties] 

     

    
      	
               
      

            	
              (a)

            	
              [The
      Vendor agrees that, with respect to any secured Project Financing that the
      Vendor arranges for the Milligan Project, the Project Financing shall
      provide that the Project Lenders (or any agent or trustee that holds their
      Project Security) will enter into an intercreditor agreement with the
      Purchaser and Vendor on terms acceptable to each of the parties thereto,
      acting reasonably, under which, inter alia, the Project Lenders and the
      Purchaser and the other parties thereto would agree
  that:

            

    

     

    
      
        	  
    	
                 
      (i)

              	
                Vendor’s
      obligation to deliver the Designated Percentage of Produced Gold to the
      Purchaser against payment of the Gold Purchase Price (and subject to
      Vendor’s right to credit the relevant portion of the Gold Purchase Price
      against the Payment Deposit) rank ahead of any obligation to the Project
      Lenders;

              

      

    

     

    
      
        	  	
                 (ii)

              	
                Subject
      to the foregoing, the Purchaser would subordinate the Purchaser’s security
      interest under the Security Agreements to the Project Security for the
      Project Financing;

              

      

    

     

    
      
        	  	
                (iii)

              	
                the
      Project Lenders’ rights of realization and sale in a default situation
      would be subject to the obligation to make any transferee of the Milligan
      Project or any portion of the Milligan Project (including the Project
      Lenders if they take title to the Milligan Project or any such portion)
      acknowledge and agree directly with the Purchaser to assume jointly and
      severally with any other holders of an interest in the Milligan Project,
      the rights and obligations of the Vendor under this Agreement;
      and

              

      

    

     

    
      
        
           

        

        
          - 25
-

          
            

          

        

        
           

        

      

    

    

    
      
        	  
    	
                (iv)

              	
                other
      reasonable terms and provisions, including any relating to mutual cure
      rights, notices, and other remedies, would be
  included.

              

      

    

     

    
      	
               
      

            	
              (b)

            	
              Financing
      that the Vendor arranges for assets (including without
      limitation,  mobile mining equipment, motor vehicles and office
      equipment) subject to operating leases or purchase money financing or
      other similar financing arrangements shall also be entitled to priority
      over the Purchaser’s Security Agreements and there shall be no requirement
      to enter into an intercreditor agreement with the
    Purchaser.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The Purchaser acknowledges that
      the Vendor or its Affiliates may from time to time enter into commitments
      for certain Corporate
Financings.

            

    

     

    
      	
               
      

            	
              (d)

            	
              In connection in any commitment
      for Corporate Financing, the Vendor covenants and agrees to negotiate in
      good faith with any Corporate Lender and the Purchaser to enter into an
      intercreditor agreement on terms acceptable to each of the parties
      thereto, acting reasonably, under which, inter alia, the Corporate Lenders
      and the Purchaser and the other parties thereto would agree
      that:

            

    

     

    
      
        	  
    	
                 
      (i)

              	
                Vendor’s
      obligation to deliver the Designated Percentage of Produced Gold to the
      Purchaser against payment of the Gold Purchase Price (and subject to
      Vendor’s right to credit the relevant portion of the Gold Purchase Price
      against the Payment Deposit) rank ahead of any obligation to the Corporate
      Lenders;

              

      

    

        

    
      
        	  
    	
                 (ii)

              	
                the
      Corporate Lenders’ rights of realization and sale in a default situation
      would be subject to the obligation to make any transferee of the Milligan
      Project or any portion of the Milligan Project (including the Corporate
      Lenders if they take title to the Milligan Project or any such portion)
      acknowledge and agree directly with the Purchaser to assume jointly and
      severally with any other holders of an interest in the Milligan Project,
      the rights and obligations of the Vendor under this Agreement;
      and

              

      

    

        

    
      
        	  	
                (iii)

              	
                other
      reasonable terms and provisions, including any relating to mutual cure
      rights, notices, and other remedies, would be
  included.

              

      

    

     

    
      	
               
      

            	
              (e)

            	
              The
      security interests referred to in this Section 8.6 which are registered in
      the (i) Personal Property Security Registry; (ii) British Columbia’s
      Mineral Titles Online Registry, and (iii) in the Land Title Office with
      respect to any Surface Rights that are registered in the Land Title Office
      from time to time shall be deemed to be Permitted
      Encumbrances.

            

    

     

    
      	
               
      

            	
              (f)

            	
              Purchaser
      shall consider, but not be obligated hereby, to subordinate
      Purchaser's security interests under the Security Agreements to the
      Corporate Lender Security for the Corporate
  Financing.]

            

    

     

    
      
        
           

        

        
          - 26
-

          
            

          

        

        
           

        

      

    

    

    
      	
              8.7

            	
              Confidentiality

            

    

     

    
      	
               
      

            	
              (a)

            	
              Each
      Party (a “Receiving
      Party”) agrees that it shall maintain as confidential and shall not
      disclose, and shall cause its Affiliates, employees, officers, directors,
      advisors, agents and representatives to maintain as confidential and not
      to disclose, the terms contained in this Agreement and all information
      (whether written, oral or in electronic format) received or reviewed by it
      as a result of or in connection with this Agreement, including any draft
      or final technical reports provided under Section 7.3, any Mineral Offtake
      Agreement provided under Section 8.4(a) and the information received by it
      pursuant to the Confidentiality Agreement (“Confidential
      Information”), provided that a Receiving Party may disclose
      Confidential Information in the following
  circumstances:

            

    

        

    
      
        	  	
                 
      (i)

              	
                to
      its auditor, legal counsel, lenders, brokers, underwriters and investment
      bankers and to persons with which it is considering or intends to enter
      into a transaction for which such Confidential Information would be
      relevant, provided that such persons are advised of the confidential
      nature of the confidential information, undertake to maintain the
      confidentiality of it and are strictly limited in their use of the
      confidential information to those purposes necessary for such persons to
      perform the services for which they were, or are proposed to be, retained
      by the Receiving Party or to consider or effect the applicable
      transaction, as applicable;

              

      

    

          

    
      
        	  	
                 (ii)

              	
                subject
      to Section 8.6(c) and 17.6, where that disclosure is necessary to comply,
      in a Party’s reasonable judgment, with Applicable Laws, including rules
      and regulations promulgated by the U.S. Securities and Exchange Commission
      (the “SEC”),
      the Canadian Securities Administrators (the “CSA”),
      a provincial securities commission, court order or the policies of any
      relevant stock exchange, provided that such disclosure is limited to only
      that Confidential Information so required to be disclosed and that the
      Receiving Party will have evaluated the availability of any laws, rules,
      regulations or contractual rights as to disclosure on a confidential basis
      to which it may be entitled and sought such treatment for portions of such
      documents it reasonably believes are eligible for such
      treatment;

              

      

    

          

    
      
        	  	
                 (iii)

              	
                for
      the purposes of the preparation of an Auditor’s Report under
      Section 15.4 or any arbitration proceeding commenced under
      Section 15.5;

              

      

    

       

    
      
        	  	
                (iv)

              	
                where
      such information is already widely known by the public other than by a
      breach of the confidentiality terms of this Agreement or is known by the
      Receiving Party prior to the entry into of this Agreement and the
      Confidentiality Agreement or obtained independently of this Agreement and
      the disclosure of such information would not breach any other
      confidentiality obligations;

              

      

    

      

    
      
        	  	
                 (v)

              	
                with
      the consent of the disclosing Party;
and

              

      

    

     

    
      
        
           

        

        
          - 27
-

          
            

          

        

        
           

        

      

    

    

    
      
        	  
    	
                (vi)

              	
                to
      those of its and its Affiliates’ directors, officers, employees,
      representatives and agents who need to have knowledge of the Confidential
      Information;

              

      

    

     

    
      	
               
      

            	
              (b)

            	
              Each
      Party shall ensure that its and its Affiliates’ employees, directors,
      officers, representatives and agents and those persons listed in Section
      8.6(a)(i) are made aware of this Section 8.6 and the Confidentiality
      Agreement and comply with the provisions hereof and thereof. Each Party
      shall be liable to the other Party for any improper use or disclosure of
      such terms or information by such
persons.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      Vendor hereby acknowledges that the Purchaser will be required to file
      this Agreement on EDGAR and SEDAR in order to comply with Applicable Laws,
      including the rules and regulations of the SEC and the
      CSA.  Purchaser hereby agrees that, prior to such filing, it
      shall consult in good faith with the Vendor regarding redactions, if any,
      that are permitted to be made to this Agreement as filed on EDGAR pursuant
      to Applicable Law, including the rules and regulations of the SEC;
      provided, however, that the final determination of such redactions, if
      any, shall be made in the Purchaser’s sole discretion.  If in
      order to comply with Applicable Laws, including rules or regulations
      promulgated by the CSA, the Vendor is required to file this Agreement on
      SEDAR, the Vendor shall notify the Purchaser of such requirement at least
      two Business Days prior to the last date to file on SEDAR, and the Parties
      shall consult in good faith with the Vendor regarding redactions, if any,
      that are permitted to be made to this Agreement as filed on SEDAR pursuant
      to Applicable Law, including the rules and regulations of the CSA;
      provided, however, that the final determination of such redactions, if
      any, shall be made in the Vendor’s sole
  discretion.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Vendor
      and the Purchaser will consult with each other before issuing any press
      release concerning the execution of this Agreement or otherwise making any
      public disclosure concerning the execution of this Agreement and shall not
      issue any such press release or make any such public disclosure before
      receiving the consent of the other party.  Nothing in this
      Section 8.6(d) prohibits any party from making a press release or other
      disclosure that is, in a Party’s reasonable judgement, required by
      Applicable Laws or by the policies of any stock exchange if the party
      making the disclosure has first used its commercially reasonable efforts
      to consult the other party with respect to the timing and content
      thereof.

            

    

     

    
      	
              8.8

            	
              Compliance
      with Law

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      Vendor shall materially comply with all Applicable Laws relating to the
      Vendor’s operations on or with respect to the Milligan Property, including
      but not limited to Environmental Laws; provided, however, the Vendor shall
      have the right to contest enforcement actions and any allegations of
      infringement of the same in its discretion.  The Vendor shall
      timely and fully perform in all material respects all environmental
      protection and reclamation activities required pursuant to Applicable
      Laws, including but not limited to Environmental Laws, on or with respect
      to the Milligan Property.

            

    

     

    
      
        
           

        

        
          - 28
-

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (b)

            	
              Each
      of the Parties agrees that it will comply with the Corruption of Foreign Public
      Officials Act (Canada) in connection with its dealings relating to
      this Agreement and the Milligan
Project.

            

    

     

    
      	
              8.9

            	
              Unprocessed
      Ore

            

    

     

    The
Vendor hereby agrees that it shall not (i) sell unprocessed ore from the
Milligan Property, or (ii) enter into any agreement to toll process ores at
facilities owned by third parties (other than Affiliates of the Vendor), in each
case without the prior written consent of the Purchaser, which consent may not
be unreasonably withheld.

     

    Article
9

    RIGHT
OF FIRST OFFER

     

    
      	
              9.1

            	
              Right
      of First Offer on Gold Interest

            

    

     

    
      	
               
      

            	
              (a)

            	
              Subject
      to Section 10.4, if

            

    

     

    
      
        	  	
                 (i)

              	
                at
      any time and from time to time, Vendor or any of its Affiliates wishes to
      offer for sale to any third party or, following an offer by a third party
      to purchase (A) a gold royalty on production from the Milligan Property,
      (B) an amount of gold based on production from any portion of the Milligan
      Property, or (C) any participating interest in gold based on production
      from the Milligan Property,
or

              

      

    

     

    
      
        	  	
                (ii)

              	
                the
      Vendor wishes to terminate or not renew a Mineral Claim or Mining Lease
      from any portion of the Milligan
Property,

              

      

    

     

    ((i) and
(ii) collectively, a “Milligan
Gold Right”)

     

    then the
Vendor shall, by notice in writing to the Purchaser, first offer to sell such
Milligan Gold Right to the Purchaser at the price and upon substantially the
terms that the Vendor proposes to offer or accept from a third party (which
offer the Vendor shall promptly provide to the Purchaser) (the “Vendor Offer”).
Notwithstanding anything to the contrary herein, if the Milligan Gold Right
represents less than 25% of the fair market value of the assets the Vendor
wishes to offer for sale to a third party, then this Section 9.1(a) shall not
apply to such offer to sell to a third party.

     

    
      	
               
      

            	
              (b)

            	
              Upon
      receipt of a Vendor Offer, the Vendor and the Purchaser shall negotiate in
      good faith for a period of up to 45 days commencing on the date of
      delivery by the Vendor to the Purchaser of the Vendor Offer (the “Negotiation Period”) the
      definitive terms of an agreement for the Milligan Gold Right which is the
      subject of the Vendor Offer (the “Definitive
      Agreement”).

            

    

     

    
      	
               
      

            	
              (c)

            	
              If,
      during the Negotiation Period, the Vendor and the Purchaser agree on the
      terms of the Definitive Agreement, then the Vendor and the Purchaser shall
      enter into the Definitive Agreement and proceed to close the transaction
      as soon as commercially reasonable thereafter pursuant to the terms of
      such Definitive Agreement.

            

    

     

    
      
        
           

        

        
          - 29
-

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (d)

            	
              If,
      during the Negotiation Period, the Vendor and the Purchaser are unable to
      agree on the terms of, and enter into, the Definitive Agreement, then, on
      the earlier of (i) the last day of the Negotiation Period, and (ii) the
      day on which the Vendor and the Purchaser agree that negotiations have
      ended,

            

    

     

    
      
        	  	
                (i)

              	
                the
      Vendor may commence negotiations with a third party for the sale of the
      Milligan Gold Right which is the subject of the Vendor Offer, and, either
      directly or through an Affiliate, sell the Milligan Gold Right that is the
      subject of the Vendor Offer to a third party, provided that the terms of
      sale are no more favourable to such third party than those offered to the
      Purchaser in the Vendor Offer,
or

              

      

    

        

    
      
        	  
    	
                (ii)

              	
                in
      the case of the termination or non-renewal of a Mineral Claim or Mining
      Lease, the Vendor may terminate or choose not to renew such Mineral Claim
      or Mining Lease.

              

      

    

     

    
      	
               
      

            	
              (e)

            	
              For
      the avoidance of doubt, this Section 9.1 shall not apply to any (i) gold
      spot sales, gold forward sales or options or other gold sales or gold
      loans to a financial institution or bullion bank, (ii) internal transfers
      among Vendor and its Affiliates, provided that any such transfer complies
      with Section 8.4(a), (iii) a sale of all or substantially all of the
      Milligan Property or of the Milligan Project or a sale of substantially
      all of the assets of the Vendor, (iv) the sale of an equity interest in
      the Vendor, or (v) any Mineral Offtake
  Agreement.

            

    

     

    Article
10

    TRANSFERS
AND ASSIGNMENTS

     

    
      	
              10.1

            	
              General.   No
      Party may sell, transfer, assign, convey, grant any right, title or
      interest in or to, or otherwise dispose of, this Agreement, in whole or in
      part, or its rights under this Agreement, in whole or in part, (and Vendor
      may not effectuate such an assignment under the Security Agreements) and
      Thompson Creek and Vendor may not effectuate a Transfer (any such
      assignment or Transfer referred to herein as an “Assignment”) except to
      the extent such Assignment complies with this Article 10, including the
      conditions set forth in this Section 10.1.  Any Party making an
      Assignment hereunder shall be referred to as an “Assignor”.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Any
      assignee pursuant to an Assignment (an “Assignee”) must execute
      an instrument in writing by which it expressly assumes any and all of the
      obligations of the Assignor pursuant to the Assignment, and the failure of
      any such Assignee to execute such a written instrument shall mean that the
      Assignment is null and void.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Any
      Assignor must provide all other Parties hereunder no less than twenty (20)
      Business Days advance written notice of a proposed
    Assignment.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Upon
      completion of an Assignment by an Assignor in compliance with this Article
      10, (i) if the Assignor is either the Vendor or Thompson Creek, then the
      Purchaser and Royal Gold shall release such Assignor from its obligations
      under this Agreement or the Security Agreements (in the case of an
      Assignment by the Vendor under the Security Agreements), and (ii) if the
      Assignor is either the Purchaser or Royal Gold, then the Vendor and
      Thompson Creek shall release such Assignor from all further obligations
      under this Agreement, in each case in a form reasonably acceptable to the
      Assignor.

            

    

     

    
      
        
           

        

        
          - 30
-

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (d)

            	
              No
      Party hereunder may complete an Assignment while it is in breach or
      default of any term, condition or obligation under this Agreement or the
      Security Agreements.

            

    

     

    
      	
               
      

            	
              (e)

            	
              No
      Party hereunder may make an Assignment to a Restricted
    Person.

            

    

     

    
      	
              10.2

            	
              Transfers to
      Affiliates.  Subject to Section 10.1 and notwithstanding
      Sections 10.5 or 10.6, either Vendor or
      Purchaser may from time to time complete an Assignment to an
      Affiliate.

            

    

     

    
      	
              10.3

            	
              Transfers
      of the Milligan Project

            

    

     

    
      	
               
      

            	
              (a)

            	
              Subject
      to Sections 10.1, 10.2 and 10.4(b), (i) the Vendor may sell, transfer,
      assign, convey, grant any right, title or interest in or to, or otherwise
      dispose of, all or any part of the Milligan Project, and (ii) Thompson
      Creek or Vendor may sell, transfer, assign, grant any right, title or
      interest in or to, or otherwise dispose of any equity interest in the
      Vendor (each of clauses (i) and (ii), a “Transfer”), unless
      Purchaser demonstrates to Vendor, acting reasonably, that at the time of
      the Transfer the transferee does not have sufficient financial resources
      and operational expertise to continue developing and operating the
      Milligan Project in a manner that provides reasonable assurance that the
      Development will be completed in accordance with the Development Program
      and, after Development, operate the Milligan Project in accordance with
      Section 8.1(b).  

            

    

     

    
      	
               
      

            	
              (b)

            	
              Subject
      to Section 9.1, the Vendor may relinquish, surrender or terminate all or
      any part of any Mineral Claims or Mining Leases constituting the Milligan
      Project if Vendor reasonably determines that the cost of maintaining such
      relinquished, surrendered or terminated Mineral Claims or Mining Leases is
      not justified.  If Vendor acquires or reacquires any Mineral
      Claims or Mining Leases that cover or relate to any previously released
      portion of the Milligan Project, this Agreement shall apply fully to such
      acquired or reacquired portion.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Notwithstanding
      Section 10.3(a) above, the Vendor may enter into a joint venture with
      another person or persons with respect to the Milligan Project provided
      that:

            

    

     

    
      
        	  	
                 (i)

              	
                Vendor
      retains at least a 50% undivided interest in the Milligan Project; Vendor
      is at all times the operator of the Milligan Project; and each joint
      venture participant agrees in a document, or documents, acceptable to the
      Purchaser, acting reasonably, with Vendor, the Purchaser and any other
      joint venture participant to assume on a joint and several basis with the
      Vendor all of the obligations and duties under this Agreement and to
      acknowledge and assume the obligations under the Security Agreements;
      and

              

      

    

       

    
      
        	  
    	
                (ii)

              	
                all
      filings have been made and all other actions have been taken that are
      required in order for the Purchaser to continue at all times following
      such transfer to have a valid and perfected security interest in the
      Milligan Property and the Produced
Gold.

              

      

    

     

    
      
        
           

        

        
          - 31
-

          
            

          

        

        
           

        

      

    

    

    
      	
              10.4

            	
              Exceptions
      Based on Intercreditor Agreements

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      rights of the Purchaser pursuant to Section 9.1 shall be subject to the
      provisions of any intercreditor agreement pursuant to Section 8.6 and
      shall not terminate upon a realization by the Project Lenders, if
      applicable.

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      restrictions on Assignment under this Article 10 shall not apply to any
      grant of an Encumbrance on all or any portion of the Milligan Project that
      is permitted under Section 8.6.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      restrictions on Assignment under this Article 10 shall apply to any sale,
      transfer, assignment, conveyance, grant of any right, title or interest in
      or to or other disposition of all or any portion of the Milligan Project
      in connection with or resulting from a realization by the Project Lenders,
      if applicable, which realization shall be subject to the provisions of any
      intercreditor agreement made pursuant to Section
  8.6.

            

    

     

    
      	
              10.5

            	
              Assignment
      by Purchaser Group

            

    

     

    Subject
to Sections 10.1 and 10.2, until such time as all of the Scheduled Deposits have
been paid to Vendor, neither Purchaser nor Royal Gold shall make an Assignment
except with the prior written consent of Vendor, such consent not to be
unreasonably withheld.  Thereafter, Purchaser and Royal Gold may make
an Assignment without the consent of Vendor.

     

    
      	
              10.6

            	
              Assignment
      by Vendor Group

            

    

     

    Subject
to Sections 10.1 and 10.2, neither the Vendor nor Thompson Creek shall make
an Assignment in respect of this Agreement or the Security Agreements (in the
case of the Vendor) except to the extent such Assignment is concurrent with a
Transfer or otherwise with the prior written consent of the Purchaser, such
consent not to be unreasonably withheld.

     

    Article
11

    REPRESENTATIONS
AND WARRANTIES

     

    
      	
              11.1

            	
              Representations
      and Warranties of Vendor

            

    

     

    Vendor,
acknowledging that the Purchaser and Royal Gold are entering into this Agreement
in reliance thereon, hereby makes the representations and warranties set forth
in Schedule A1 to the Purchaser and Royal Gold on and as of the date of this
Agreement and on and as of any other date required pursuant to this
Agreement.

     

    
      	
              11.2

            	
              Representations
      and Warranties of Thompson Creek

            

    

     

    Thompson
Creek, acknowledging that the Purchaser and Royal Gold are entering into this
Agreement in reliance thereon, hereby makes the representations and warranties
set forth in Schedule A2 to the Purchaser and Royal Gold on and as of the date
of this Agreement and on and as of any other date required pursuant to this
Agreement.

    

    
      
        
           

        

        
          - 32
-

          
            

          

        

        
           

        

      

    

    

    
      	
              11.3

            	
              Representations
      and Warranties of the Purchaser

            

    

     

    The
Purchaser, acknowledging that Vendor and Thompson Creek are entering into this
Agreement in reliance thereon, hereby makes the representations and warranties
set forth in Schedule A3 to Vendor and Thompson Creek on and as of the date of
this Agreement.

     

    
      	
              11.4

            	
              Representations
      and Warranties of Royal Gold

            

    

     

    Royal
Gold, acknowledging that Vendor and Thompson Creek are entering into this
Agreement in reliance thereon, hereby makes the representations and warranties
set forth in Schedule A4 to Vendor and Thompson Creek on and as of the date of
this Agreement.

     

    
      	
              11.5

            	
              Survival
      of Representations and Warranties

            

    

     

    The
representations and warranties set forth in Schedules A1, A2, A3 and A4 shall
survive the execution and delivery of this Agreement for a term of five years
following the payment of the final Scheduled Deposit.

     

    
      	
              11.6

            	
              Knowledge

            

    

     

    Where any
representation or warranty contained in this Agreement is expressly qualified by
reference to the “knowledge” of Vendor to refer to the actual knowledge of any
of the Chief Executive, Chief Financial and Chief Operating Officers of Thompson
Creek.3

     

    Article
12

    VENDOR
EVENTS OF DEFAULT

    

    
      	
              12.1

            	
              Vendor
      Events of Default

            

    

     

    Each of
the following events or circumstances constitutes an event of default by Vendor
(each, a “Vendor Event of
Default”):

     

    
      	
               
      

            	
              (a)

            	
              Vendor
      fails to sell and deliver Refined Gold to the Purchaser on the terms and
      conditions set forth in this Agreement within ten Business Days after
      receipt of notice from the Purchaser notifying Vendor of such
      default;

            

    

     

    
      	
               
      

            	
              (b)

            	
              other
      than as provided in Section 12.1(a), Vendor is in breach or default of any
      terms or conditions, or any of its covenants or obligations, set forth in
      this Agreement or the Security Agreements in any material respect, which
      is incapable of being cured, or, if any such term, condition, covenant or
      obligation is capable of being cured, such breach or default is not
      remedied within a period of 30 days following delivery by the Purchaser to
      Vendor of written notice of such breach or default, or such longer period
      of time as the Purchaser may determine in its sole
    discretion;

            

    

    

      

    

      
      3
Potentially, officers of Vendor to be added.

      

        
          
             

          

          
            - 33
-

            
              

            

          

          
             

          

        

      

         

    

    
      	
               
      

            	
              (c)

            	
              the
      Vendor is in breach of Article 10;

            

    

     

    
      	
               
      

            	
              (d)

            	
              if,
      prior to the Deposit Reduction Time, Vendor or any of its Affiliates
      defaults under any indebtedness and such default is not remedied within
      the cure period permitted under such indebtedness and materially adversely
      affects the financial condition of Vendor such that it impairs its
      ownership of the Milligan Project or its ability to operate the Milligan
      Project in the ordinary course; or

            

    

     

    
      	
               
      

            	
              (e)

            	
              upon
      the occurrence of an Insolvency Event affecting
  Vendor.

            

    

     

    
      	
              12.2

            	
              Remedies

            

    

     

    
      	
               
      

            	
              (a)

            	
              If
      a Vendor Event of Default occurs and is continuing, the Purchaser shall
      have the right, upon written notice to Vendor, at its option, and in
      addition to and not in substitution for any other remedies available to it
      at law or in equity, to terminate this Agreement and demand from Vendor on
      90 days notice the repayment of the uncredited balance of the Payment
      Deposit, as evidenced by the Deposit Record, without
    interest.

            

    

     

    
      	
               
      

            	
              (b)

            	
              For
      greater certainty, if the Purchaser does not exercise its right under
      Section 12.2(a), the obligation of Vendor or any successor on a
      realization hereunder shall continue in full force and
    effect.

            

    

     

    Article
13

    PURCHASER
EVENTS OF DEFAULT

     

    
      	
              13.1

            	
              Purchaser
      Events of Default

            

    

     

    Each of
the following events or circumstances constitutes an event of default by the
Purchaser (each, a “Purchaser
Event of Default”):

     

    
      	
               
      

            	
              (a)

            	
              the
      Purchaser fails to pay for Refined Gold delivered to the Purchaser in
      accordance with Section 2.4 within 10 days of receipt of notice from
      Vendor notifying the Purchaser of such
default;

            

    

     

    
      	
               
      

            	
              (b)

            	
              subject
      to satisfaction of the conditions set forth in Section 5.3 and Schedule D,
      the Purchaser fails to pay any portion of the Payment Deposit to Vendor,
      within 10 days of receipt of notice from Vendor notifying the Purchaser of
      such default;

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      Purchaser is in breach of Article
10;

            

    

     

    
      	
               
      

            	
              (d)

            	
              the
      Purchaser is in breach or default of any of the terms or conditions, or
      any of its covenants or obligations, set forth in this Agreement in any
      material respect (other than a breach or default of the covenants or
      obligations referenced in Sections 13.1(a) and 13.1(b) above), which is
      incapable of being cured, or, if any such term, condition, covenant or
      obligation is capable of being cured, such breach or default is not
      remedied within a period of 30 days following delivery by the Vendor to
      Purchaser of written notice of such breach or default, or such longer
      period of time as the Vendor may determine in its sole discretion;
      or

            

    

     

    
      
        
           

        

        
          - 34
-

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (e)

            	
              upon
      the occurrence of an Insolvency Event affecting
  Purchaser.

            

    

     

    
      	
              13.2

            	
              Remedies

            

    

     

    In
addition to Vendor’s rights and remedies available to it at law or in equity, if
a Purchaser Event of Default described in Sections 13.1(a), 13.1(b) or 13.1(c)
occurs and is continuing, Vendor shall have the right, upon written notice to
the Purchaser, to suspend its obligations under this Agreement; provided,
however, that those obligations that existed prior to the date of such written
notice and such other provisions of this Agreement as are required to give
effect thereto, shall not be suspended and provided that, if suspension is as a
result of a Purchaser Event of Default for a breach of Article 10, the
provisions of Article 7 shall also be suspended and Vendor shall not be
obligated to sell or deliver any Refined Gold to the Purchaser during such
suspension.  If the Purchaser cures the Purchaser Event of Default in
full within 60 days, then Vendor’s obligations under this Agreement shall
recommence as of the date the Purchaser cures the Purchaser Event of Default in
full. If the Purchaser fails to cure the Purchaser Event of Default described in
Sections 13.1(a) or 13.1(b) in full within 60 days then Vendor may elect at any
time thereafter to suspend its obligations to deliver Refined Gold under this
Agreement for the remainder of the Term of the Agreement, and thereupon the
Purchaser shall only have the right or conversely, Vendor shall only have the
obligation, to refund the uncredited portion of the Payment Deposit, as
evidenced by the Deposit Record, on the Default Deposit Reduction
Date.  In addition, Purchaser shall indemnify Vendor, and save it
harmless, on an after-tax basis, from and against any tax liability of Vendor to
the extent that it arises (i) as a consequence of Vendor electing to suspend its
obligations to deliver Refined Gold for the reminder of the Term of the
Agreement, and (ii) in the taxation year of Vendor in which such suspension
occurs.  If a Purchaser Event of Default under Sections 13.1(d)
and 13.1(e) has occurred and is continuing, then Vendor shall have no right to
terminate this Agreement, but it shall be entitled to all other remedies
available to it at law or in equity.

     

    Article
14

    INDEMNITIES

     

    
      	
              14.1

            	
              Indemnity
      of Purchaser

            

    

     

    Subject
to Section 14.4, the Vendor agrees to indemnify the Purchaser from and against,
and to hold the Purchaser harmless from any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, claims, expenses
or disbursements of any kind whatsoever (collectively “Losses”) which may at any time
be imposed on, incurred by or asserted against the Purchaser in any way to the
extent relating to or arising out of (A) any breach by the Vendor or Thompson
Creek or any misrepresentation or inaccuracy of any representation or warranty
of the Vendor or Thompson Creek contained in this Agreement, including without
limitation the representations and warranties set forth on Schedules A1 and A2
hereto, or in any document, instrument or agreement delivered pursuant hereto;
(B) any breach, including breach due to non-performance, by  the
Vendor or Thompson Creek of any covenant or agreement to be performed by the
Vendor or Thompson Creek contained in this Agreement or in any document,
instrument or agreement delivered pursuant hereto.

    

    
      
        
           

        

        
          - 35
-

          
            

          

        

        
           

        

      

    

    

    
      	
              14.2

            	
              Indemnity
      of Vendor

            

    

     

    Subject
to Section 14.4, the Purchaser agrees to indemnify the Vendor from and against,
and to hold the Vendor harmless from, any and all Losses which may at any time
be imposed on, incurred by or asserted against the Vendor in any way to the
extent relating to or arising out of (A) any breach by the Purchaser or Royal
Gold or any misrepresentation or inaccuracy of any representation or warranty of
the Purchaser contained in this Agreement, including without limitation the
representations and warranties set forth on Schedules A3 and A4 hereto, or in
any document, instrument or agreement delivered pursuant hereto; and (B) any
breach, including breach due to non-performance, by the Purchaser or Royal Gold
of any covenant or agreement to be performed by the Purchaser or Royal Gold
contained in this Agreement or in any document, instrument or agreement
delivered pursuant hereto.

     

    14.3      Limited
Indemnity for Losses Related to Incidental Connection to Property

     

    Subject
to Section 14.4, the Vendor agrees to indemnify the Purchaser and Royal Gold
from and against, and to hold the Purchaser and Royal Gold harmless from, any
and all Losses which may at any time be imposed on, incurred by or asserted
against the Purchaser and Royal Gold in any way to the extent relating to or
arising out of (A) the failure of the Vendor or Thompson Creek to comply with
any Applicable Law, including any Applicable Law relating to environmental
protection and reclamation obligations, with respect to the Milligan Property;
(B) the physical environmental condition of the Milligan Project and matters of
health or safety related to the Milligan Project or any action or claim brought
with respect thereto; and (C) any actual or threatened withdrawal by any
Governmental Authority of any material Approval under Environmental Laws which
is necessary for the construction or operation of the Milligan Project, or any
actual or threatened challenge by any person to any material Approval under
Environmental Laws which is necessary for the construction or operation of the
Milligan Project.  Vendor’s indemnification obligation pursuant to
this Section 14.3 shall arise to the extent such Losses are direct, such as but
not limited to Losses incurred from defending enforcement actions or defending
lawsuits joined against Purchaser or Royal Gold.  Vendor’s
indemnification obligation pursuant to this Section 14.3 shall not arise
(i) where indemnification is available to Purchaser pursuant to Section
14.1, and (ii) where Losses are incidental or consequential to the
occurrence of the matters listed in this Section 14.3 (A), (B) and (C), such as
but not limited to lost profits from the resulting failure of Vendor to develop
the Milligan Project, to extract or process Minerals, or to deliver or sell
Minerals to an Offtaker.

     

    
      	
              14.4

            	
              Limitations
      on Indemnification

            

    

     

    Notwithstanding
anything else to the contrary in this Article 14, in no event will either Party
be liable to the other Party for:

     

    
      	
               
      

            	
              (a)

            	
              any
      lost profits or incidental, indirect, speculative, consequential, special,
      punitive, or exemplary damages of any kind (whether based in contract,
      tort, including negligence, strict liability, fraud, or otherwise, or
      statutes, regulations, or any other theory) arising out of or in
      connection with this Agreement, even if advised of such potential damages;
      or

            

    

     

    (b)         Losses
directly arising from an Event of Force Majeure.

    

    
      
        
           

        

        
          - 36
-

          
            

          

        

        
           

        

      

    

     

    Article
15

    INDEPENDENT
ENGINEER; ADDITIONAL PAYMENT TERMS; DISPUTES

     

    
      	
              15.1

            	
              Independent
      Engineer

            

    

     

    
      	
               
      

            	
              (a)

            	
              Following
      the Effective Date, the Parties will select by mutual agreement an
      individual to serve as an independent engineer under this Agreement (the
      “Independent
      Engineer”). To the extent he is no longer available to perform the
      service or if agreed by the Purchaser and Vendor, a replacement
      Independent Engineer will be selected by the mutual agreement of the
      Purchaser and Vendor. If the Purchaser and Vendor cannot agree upon an
      initial Independent Engineer within 45 days following the date of this
      Agreement or a replacement Independent Engineer within 15 days after an
      existing Independent Engineer ceases to perform such service, the
      Independent Engineer shall be selected by the following procedure: the
      Purchaser will nominate three Qualified Candidates, one of which Vendor
      will elect within 10 days after Vendor shall have received notice of the
      Purchaser’s nomination, failing which the Purchaser shall appoint one of
      the nominees as the Independent Engineer. For purposes hereof, a “Qualified Candidate”
      shall mean an individual with not less than 15 years of relevant mineral
      engineering expertise in the precious metals industry. The Qualified
      Candidate will not have been a director, officer, employee of, or
      contractor or service provider to, or director, officer, beneficial owner
      or close relative of a beneficial owner of any contractor or service
      provider to the Purchaser or Vendor or any Affiliate thereof for a period
      of five years preceding his or her nomination by the Purchaser unless
      mutually agreed between the Purchaser and
  Vendor.

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      regular retainer of the Independent Engineer shall be paid by the
      Purchaser. All incremental fees, costs and expenses of the Independent
      Engineer, including, without limitation, the costs related to reviewing
      data resulting from a proposed change to Project Costs or the Development
      Program, will be borne by Vendor.

            

    

     

    
      	
              15.2

            	
              Payments

            

    

     

    All
payments of funds due by one Party to another under this Agreement shall be made
in U.S. Dollars or such other currency as the Parties may agree from time to
time in writing and shall be made by wire transfer in immediately available
funds to the bank account or accounts designated by the receiving Party in
writing from time to time.

     

    
      	
              15.3

            	
              Overdue
      Payments and Set-Off

            

    

     

    
      	
               
      

            	
              (a)

            	
              Any
      payment not made by a Party on or by any applicable payment date referred
      to in this Agreement shall incur interest from the due date until such
      payment or delivery is paid or made in full at a per annum rate equal to
      the LIBO Rate on the due date plus four percent, calculated and compounded
      monthly in arrears.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Any
      such overdue dollar amount owed to the Vendor under this Agreement may be
      set off against future Refined Gold owed to Purchaser based on the London
      Bullion Market Association afternoon price fix for gold on the date such
      dollar amount became overdue.

            

    

     

    
      
        
           

        

        
          - 37
-

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (c)

            	
              The
      value of any such overdue payment associated with Refined Gold owed to the
      Purchaser under this Agreement shall be based on the London Bullion Market
      Association afternoon fix for gold on the date such Refined Gold became
      overdue, and the Purchaser may elect to receive such overdue payment in
      Refined Gold or as a set off against future Gold Purchase Price payments
      owed to the Vendor under Section
2.5.

            

    

     

    
      	
              15.4

            	
              Statement
      Disputes

            

    

     

    
      	
               
      

            	
              (a)

            	
              If
      the Purchaser disputes any statement provided pursuant to Section 2.3, the
      number of ounces of Refined Gold to be Delivered in any Delivery of
      Refined Gold to the Purchaser hereunder, or the uncredited balance of the
      Payment Deposit set forth in any Deposit Record
  Report:

            

    

     

    
      
        	  	
                 (i)

              	
                the
      Purchaser may notify Vendor in writing (the “Dispute
      Notice”) of such dispute within one year from the date of delivery
      of the applicable Deposit Record Report (in the case of a dispute
      regarding the calculation of the uncredited balance of the Deposit Record)
      or the applicable statement under Section 2.3 (in the case of a dispute
      regarding any statement or the number of ounces of Refined Gold to be
      delivered to the Purchaser hereunder), as applicable (the “Dispute
      Period”);

              

      

    

       

    
      
        	  	
                 (ii)

              	
                if
      the Purchaser and Vendor have not resolved the dispute within a 60-day
      period, then the Purchaser shall have the right during the ensuing 60 days
      to require Vendor to retain an Auditor to prepare a written report on the
      subject matter of the dispute (the “Auditor’s
      Report”);

              

      

    

       

    
      
        	  	
                (iii)

              	
                the
      Auditor shall have the same inspection rights as the Purchaser under
      Section 7.4(a) in order to prepare the Auditor’s Report and Vendor shall
      provide, or cause to be provided, to the Auditor any information
      reasonably requested by the Auditor to enable the auditor to prepare the
      Auditor’s Report;

              

      

    

      

    
      
        	  	
                (iv)

              	
                promptly
      following completion of the Auditor’s Report, Vendor will deliver a copy
      thereof to the Purchaser;

              

      

    

       

    
      
        	  
    	
                 (v)

              	
                the
      cost of obtaining the Auditor’s Report shall be paid by the Purchaser
      unless the Auditor’s Report concludes that (i) in the case of a dispute
      regarding the number of ounces of Refined Gold to be delivered in any
      delivery of Refined Gold to the Purchaser hereunder, the number of ounces
      that should have been delivered by Vendor (in aggregate for all deliveries
      in dispute) was more than 5% greater than the actual number of ounces so
      delivered by Vendor, or (ii) in the case of a dispute regarding the
      calculation of the uncredited balance of the Payment Deposit in a Deposit
      Record Report, the correct uncredited balance of the Payment Deposit is
      more than 5% different from the amount reported by Vendor in the
      applicable Deposit Record Report, in each of which cases the cost of
      obtaining the Auditor’s Report shall be for the account of
      Vendor;

              

      

    

     

    
      
        
           

        

        
          - 38
-

          
            

          

        

        
           

        

      

    

    

    
      
        	  
    	
                 (vi)

              	
                if
      either Vendor or the Purchaser disputes the Auditor’s Report and such
      dispute is not resolved between the Parties within 10 days after the date
      of delivery of the Auditor’s Report, then such dispute may be resolved by
      arbitration in accordance with the arbitration provisions set out in
      Section 15.5 of this Agreement provided that such dispute must be
      referred to arbitration within 30 days after the end of such 10-day
      period; and

              

      

    

        

    
      
        	   
      	
                (vii)

              	
                if
      such dispute is not referred to arbitration within such 30-day period,
      then the Auditor’s Report will be deemed final and binding on the
      Parties;

              

      

    

     

    
      	
               
      

            	
              (b)

            	
              If
      the Purchaser does not deliver a Dispute Notice within the applicable
      Dispute Period, then each statement provided pursuant to Section 2.3, the
      number of ounces of Refined Gold to be delivered in any delivery of
      Refined Gold to the Purchaser hereunder or the calculation of the
      uncredited balance of the Payment Deposit set forth in any Deposit Record
      Report, as applicable, will be deemed final and binding on the Parties
      after the expiry of the applicable Dispute
  Period.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Any
      matter in respect of which a Dispute Notice is delivered shall be resolved
      only pursuant to this Section 15.4 including, if applicable, an
      arbitration commenced in accordance with Section
    15.4(a)(vi).

            

    

     

    
      	
              15.5

            	
              Disputes
      and Arbitration

            

    

     

    Any
dispute, controversy or claim arising out of or relating to this Agreement or
the breach, termination or invalidity thereof which has not been resolved by the
Parties in accordance with the procedures set out herein, if any, and within the
time frames specified herein (or where no time frames are specified, within 15
days of the delivery of written notice by either Party of such dispute,
controversy or claim), including the determination of the scope or applicability
of this Agreement to arbitrate, shall be settled by binding arbitration, and any
party may so refer such dispute, controversy or claim to binding arbitration.
Such referral to binding arbitration shall be to a qualified single arbitrator
pursuant to the Arbitration Rules, as may be amended from time to time, which
rules shall govern such arbitration proceeding except to the extent modified by
the rules for arbitration set out in Annex 1 and the discretion of the
arbitrator thereunder.  The determination of such arbitrator shall be
final and binding upon the Parties and the costs of such arbitration shall be as
determined by the arbitrator.  Judgment on the award may be entered in
any court having jurisdiction. This Section 15.5 shall not preclude the Parties
from seeking provisional remedies in aid of arbitration from a court of
competent jurisdiction. The Parties covenant and agree that they shall conduct
all aspects of such arbitration having regard at all times to expediting the
final resolution of such arbitration.

     

    Article
16

    TAXES

     

    
      	
              16.1

            	
              Taxes

            

    

     

    
      	
               
      

            	
              (a)

            	
              Except
      as described in Section 16.1(c), all deliveries of Refined Gold or
      payments made by a Party shall be made without any deduction, withholding,
      charge or levy for or on account of any tax, duty or other charges of
      whatever nature imposed by any taxing or Governmental Authority, all of
      which shall be for the account of the Party making the delivery or
      payment.

            

    

     

    
      
        
           

        

        
          - 39
-

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (b)

            	
              The
      Parties acknowledge and agree that this Agreement and the purchase and
      sale transactions contemplated hereby are, and are intended to be,
      transactions for the purchase and sale of gold and the Parties do not
      intend this Agreement and the transactions contemplated hereby to
      constitute the purchase and sale of a resource property for Canadian legal
      and tax purposes.

            

    

     

    
      	
               
      

            	
              (c)

            	
              If
      the Purchaser is an entity that is a non resident of Canada for the
      purposes of the Income
      Tax Act (Canada), the Purchaser shall indemnify the Vendor for any
      Canadian withholding on any amount paid or credited to the Purchaser as,
      on account or in lieu of payment of, or in satisfaction of a payment of
      Refined Gold or any other payment to be made to the Purchaser under this
      Agreement.  If the Vendor does withhold any amount, it shall
      provide written proof of any such withholding payment to the
      Purchaser.

            

    

     

    Article
17

    GENERAL

     

    
      	
              17.1

            	
              Further
      Assurances

            

    

     

    Each
Party shall execute all such further instruments and documents and do all such
further actions as may be necessary to effectuate the documents and transactions
contemplated in this Agreement, in each case at the cost and expense of the
Party requesting such further instrument, document or action, unless expressly
indicated otherwise.

     

    
      	
              17.2

            	
              Survival

            

    

     

    The
following provisions shall survive termination of this Agreement: 8.7, 12.2,
13.2, Article 14, 15.4, 15.5 and Sections [•] of each of the Security
Agreements and such other provisions of this Agreement as are required to give
effect thereto.

     

    
      	
              17.3

            	
              No
      Joint Venture

            

    

     

    Nothing
herein shall be construed to create, expressly or by implication, a joint
venture, mining partnership, commercial partnership, agency relationship or
fiduciary relationship between the Purchaser and Vendor under Canadian
law.

     

    
      	
              17.4

            	
              Governing
      Law

            

    

     

    This
Agreement shall be governed by and construed under the laws of the Province of
British Columbia and the federal laws of Canada applicable therein (without
regard to its laws relating to any conflicts of laws).  The United
Nations Vienna Convention on Contracts for the International Sale of Goods shall
not apply to this Agreement.

     

    
      
        
           

        

        
          - 40
-

          
            

          

        

        
           

        

      

    

    

    
      	
              17.5

            	
              Notices

            

    

     

    
      	
               
      

            	
              (a)

            	
              Unless
      otherwise specifically provided in this Agreement, any notice or other
      correspondence required or permitted by this Agreement shall be deemed to
      have been properly given or delivered when made in writing and
      hand-delivered to the Party to whom directed, or when given by facsimile
      transmission, with all necessary delivery charges fully prepaid (or in the
      case of a facsimile, upon confirmation of receipt), and addressed to the
      Party to whom directed at the following
address:

            

    

     

    
      
        	  
    	
                (i)

              	
                if
      to Vendor to:

              

      

    

     

    [26
W. Dry Creek Circle

    Suite
810

    Littleton,
CO  80120   USA

    Attention:  l]

    Facsimile:  (303)
761-7420

    

    with a
copy, which shall not constitute notice, to:

    

    Goodmans

    Barristers
and Solicitors

    1900 –
355 Burrard Street

    Vancouver,
BC  V6C 2G8

    

    
      
        	  	
                (ii)

              	
                if
      to Thompson Creek to:

              

      

    

      

    26 W. Dry
Creek Circle

    Suite
810

    Littleton,
CO  80120   USA

    Attention:  l

    Facsimile:  (303)
761-7420

    

    with a
copy, which shall not constitute notice, to:

    

    Goodmans

    Barristers
and Solicitors

    1900 –
355 Burrard Street

    Vancouver,
BC  V6C 2G8

    

    
      
        	  	
                (iii)

              	
                if
      to the Purchaser to:

              

      

    

     

    [RG
Newco]

    c/o Royal
Gold, Inc.

    1660
Wynkoop Street, Suite 1000

    Denver,
CO 80202-1132 USA

    Attention:
Vice President and General Counsel

    Facsimile:
(303) 595-9385

    

    
      
        
           

        

        
          - 41
-

          
            

          

        

        
           

        

      

    

    

    with a
copy, which shall not constitute notice, to:

     

    Hogan
Lovells US LLP

    One Tabor
Center

    1200
Seventeenth Street, Suite 1500

    Denver,
CO 80202   USA

    Attention:  Paul
Hilton, Esq.

    Facsimile:  (303)
899-7333

     

    
      
        	  
    	
                (iv)

              	
                if
      to Royal Gold, to:

              

      

    

     

    Royal
Gold, Inc.

    1660
Wynkoop Street, Suite 1000

    Denver,
CO 80202-1132 USA

    Attention:
Vice President and General Counsel

    Facsimile:
(303) 595-9385

     

    with a
copy, which shall not constitute notice, to:

     

    Hogan
Lovells US LLP

    One Tabor
Center

    1200
Seventeenth Street, Suite 1500

    Denver,
CO 80202   USA

    Attention:  Paul
Hilton, Esq.

    Facsimile:  (303)
899-7333

     

    
      	
               
      

            	
              (b)

            	
              Any
      notice or other communication given in accordance with this section, if
      delivered by hand as aforesaid shall be deemed to have been validly and
      effectively given on the date of such delivery if such date is a Business
      Day and such delivery is received before 4:00 pm at the place of delivery;
      otherwise, it shall be deemed to be validly and effectively given on the
      Business Day next following the date of delivery. Any notice of
      communication which is transmitted by facsimile transmission as aforesaid
      shall be deemed to have been validly and effectively given on the date of
      transmission if such date is a Business Day and such transmission was
      received before 4:00 pm at the place of receipt; otherwise it shall be
      deemed to have been validly and effectively given on the Business Day next
      following such date of
transmission.

            

    

     

    
      	
              17.6

            	
              [Reserved]

            

    

     

    
      	
              17.7

            	
              Amendments

            

    

     

    This
Agreement may not be changed, amended or modified in any manner, except pursuant
to an instrument in writing signed on behalf of each of the Parties
hereto.

     

    
      	
              17.8

            	
              Beneficiaries;
      Successors and Assigns

            

    

     

    This
Agreement is for the sole benefit of the Parties and shall enure to the benefit
of and be binding on their successors and permitted assigns and, except as
expressly contemplated herein, nothing herein is intended to or shall confer
upon any other person any legal or equitable right, benefit or remedy of any
nature or kind whatsoever under or by reason of this Agreement.

    

    
      
        
           

        

        
          - 42
-

          
            

          

        

        
           

        

      

    

    

    
      
        	
                17.9

              	
                Contests

              

      

    

     

    The
Vendor hereby consents to the Purchaser’s participation (at the Purchaser’s sole
expense) to protect its interest and investment in any proceeding relating to
any act of eminent domain, expropriation, confiscation, or nationalization of
all or part of the Milligan Property.

     

    
      	
              17.10

            	
              Entire
      Agreement

            

    

     

    This
Agreement, the Security Agreements and the Confidentiality Agreement together
constitute the entire agreement between the Parties with respect to the subject
matter hereof and cancel and supersede any prior understandings and agreements
between the Parties with respect thereto. There are no representations,
warranties, terms, conditions, opinions, advice, assertions of fact, matters,
undertakings or collateral agreements, express, implied or statutory, by or
between the Parties (or by any of their respective employees, directors,
officers, representatives or agents) other than as expressly set forth in this
Agreement, the Security Agreements or the Confidentiality
Agreement.

     

    
      	
              17.11

            	
              Waivers

            

    

     

    Any
waiver of, or consent to depart from, the requirements of any provision of this
Agreement shall be effective only if it is in writing and signed by the Party
giving it, and only in the specific instance and for the specific purpose for
which it has been given. No failure on the part of any Party to exercise, and no
delay in exercising, any right under this Agreement shall operate as a waiver of
such right. No single or partial exercise of any such right shall preclude any
other or further exercise of such right or the exercise of any other
right.

     

    
      	
              17.12

            	
              Severability

            

    

     

    If any
provision of this Agreement is determined by a court of competent jurisdiction
to be invalid, illegal or unenforceable in any respect, all other provisions of
this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to any Party.

     

    
      	
              17.13

            	
              Counterparts

            

    

     

    This
Agreement may be executed in one or more counterparts, and by the Parties in
separate counterparts, each of which when executed shall be deemed to be an
original, but all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Agreement by telecopy or electronic scan shall be effective as delivery of a
manually executed counterpart of this Agreement.

     

    
      	
              17.14

            	
              Thompson
      Creek Guarantee

            

    

     

    Thompson
Creek hereby absolutely, unconditionally and irrevocably guarantees the prompt
and complete performance of all of the terms, covenants, conditions and
provisions to be performed by the Vendor pursuant to this Agreement, and shall
perform such terms, covenants, conditions and provisions upon the default or
non-performance thereof by the Vendor.

    

    
      
        
           

        

        
          - 43
-

          
            

          

        

        
           

        

      

    

    

    
      	
              17.15

            	
              Royal
      Gold Guarantee

            

    

     

    Royal
Gold hereby absolutely, unconditionally and irrevocably guarantees the prompt
and complete performance of all of the terms, covenants, conditions and
provisions to be performed by the Purchaser pursuant to this Agreement, and
shall perform such terms, covenants, conditions and provisions upon the default
or non-performance thereof by the Purchaser.

    

    
      
        
           

        

        
          - 44
-

          
            

          

        

        
           

        

      

    

     

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

     

    
      
        
          
            	
                    [PURCHASER]

                  
	 
      
	
                    Per:

                  	
                       

                  
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  
	
                    Per:

                  	
                       

                  
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  
	 
      
	
                    [VENDOR]

                  
	 
      	 
      
	
                    Per:

                  	
                       

                  
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  
	 
      	 
      
	
                    Per:

                  	
                       

                  
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  
	 
      	 
      
	
                    Solely
      in respect of Article 10 and Sections

                  
	
                    11.4
      and 17.14 hereof

                  
	 
      	 
      
	
                    ROYAL
      GOLD, INC.

                  
	 
      	 
      
	
                    Per:

                  	
                       

                  
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  
	 
      	 
      
	
                    Per:

                  	
                       

                  
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  

          

        

      

    

    

    
      
        
           

        

        
          -45-

          
            

          

        

        
           

        

      

    

     

    
      
        
          
            	
                    Solely
      in respect of Article 10 and Sections

                    3.5,
      11.4 and 17.15 hereof

                  
	 
      
	
                    THOMPSON
      CREEK METALS

                    COMPANY
      INC.

                  
	 
      
	
                    Per:

                  	
                      

                  
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  
	 
      	 
      
	
                    Per:

                  	
                      

                  
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  

          

        

      

    

    

    
      
        
           

        

        
          -46-

          
            

          

        

        
           

        

      

    

    

    ANNEX
1

     

    ARBITRATION
RULES

     

    The
following rules and procedures shall apply with respect to any matter to be
arbitrated by the Parties in accordance with Section 15.5 of the
Agreement.

     

    
      	
               
      

            	
              1.

            	
              Initiation
      of Arbitration Proceedings

            

    

     

    
      	
               
      

            	
              (a)

            	
              If
      any Party to this Agreement wishes to have any matter under this Agreement
      arbitrated in accordance with the provisions of this Agreement, it shall
      give notice to the other Party hereto specifying particulars of the matter
      or matters in dispute and proposing the name of the person it wishes to be
      the single arbitrator. Within 20 days after receipt of such notice, the
      other Party to this Agreement shall give notice to the first Party
      advising whether such Party accepts the arbitrator proposed by the first
      Party. If such notice is not given within such 20-day period, the other
      Party shall be deemed to have accepted the arbitrator proposed by the
      first Party. If the Parties do not agree upon a single arbitrator within
      such 20-day period such arbitrator shall be chosen by British Columbia
      International Commercial Arbitration Centre, Vancouver, British Columbia,
      at the written request of either
Party.

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      individual selected as Arbitrator shall be qualified by education and
      experience to decide the matter in dispute. The Arbitrator shall be at
      arm’s length from both Parties and shall not be a member of the audit or
      legal firm or firms who advise either Party or a person who is otherwise
      regularly retained by either of the
Parties.

            

    

     

    
      	
               
      

            	
              2.

            	
              Submission
      of Written Statements

            

    

     

    
      	
               
      

            	
              (a)

            	
              Within
      20 days of the appointment of the Arbitrator, the Party initiating the
      arbitration (the “Claimant”) shall send
      the other Party (the “Respondent”) a statement
      of claim setting out in sufficient detail the facts and any contentions of
      law on which it relies, and the relief that it
  claims.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Within
      15 days of the receipt of the statement of claim, the Respondent shall
      send the Claimant a statement of defence stating in sufficient detail
      which of the facts and contentions of law in the statement of claim it
      admits or denies, on what grounds, and on what other facts and contentions
      of law the Respondent relies.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Within
      ten days of receipt of the statement of defence, the Claimant may send the
      Respondent a statement of reply.

            

    

     

    
      	
               
      

            	
              (d)

            	
              All
      statements of claim, defence and reply shall be accompanied by copies (or,
      if they are especially voluminous, lists) of all essential documents on
      which the Party concerned relies and which have not previously been
      submitted by any Party, and (where practicable) by any relevant
      samples.

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (e)

            	
              After
      submission of all the statements, the Arbitrator will give directions for
      the further conduct of the
arbitration.

            

    

     

    
      	
               
      

            	
              3.

            	
              Meetings
      and Hearings

            

    

     

    
      	
               
      

            	
              (f)

            	
              The
      arbitration shall take place in Vancouver, British Columbia or in such other place
      as the Claimant and the Respondent shall agree upon in
      writing.

            

    

     

    
      	
               
      

            	
              (g)

            	
              The
      arbitration shall be conducted in English unless otherwise agreed by such
      Parties and the Arbitrator.

            

    

     

    
      	
               
      

            	
              (h)

            	
              All
      meetings and hearings will be in private unless the Parties otherwise
      agree.

            

    

     

    
      	
               
      

            	
              (i)

            	
              Any
      Party may be represented at any meetings or hearings by legal
      counsel.

            

    

     

    
      	
               
      

            	
              (j)

            	
              Each
      Party may examine, cross-examine and re-examine all witnesses at the
      arbitration.

            

    

     

    
      	
               
      

            	
              4.

            	
              The
      Decision

            

    

     

    
      	
               
      

            	
              (k)

            	
              The
      Arbitrator will make a decision in writing and, unless the Parties
      otherwise agree, will set out reasons for decision in the
      decision

            

    

     

    
      	
               
      

            	
              (l)

            	
              The
      Arbitrator will send the decision to the Parties as soon as practicable
      after the conclusion of the final hearing, but in any event no later than
      60 days thereafter, unless that time period is extended for a fixed period
      by the Arbitrator on written notice to each Party because of illness or
      other cause beyond the Arbitrator’s
control.

            

    

     

    
      	
               
      

            	
              (m)

            	
              The
      decision shall determine and award
costs.

            

    

     

    
      	
               
      

            	
              (n)

            	
              Any
      Party may appeal the decision of the Arbitrator on a question of law. In
      the event either Party initiates any court proceeding in respect of the
      decision of the Arbitrator or the matter arbitrated, such Party, if
      unsuccessful in the court proceeding, shall pay the other Party’s costs of
      such proceedings on a substantial indemnity
  basis.

            

    

     

    
      	
               
      

            	
              5.

            	
              Jurisdiction
      and Powers of the Arbitrator

            

    

     

    
      	
               
      

            	
              (o)

            	
              By
      submitting to arbitration under the Arbitration Rules, the Parties shall
      be taken to have conferred on the Arbitrator the following jurisdiction
      and powers, to be exercised at the Arbitrator’s discretion subject only to
      the Arbitration Rules and the relevant law with the object of ensuring the
      just, expeditious, economical and final determination of the dispute
      referred to arbitration.  Without limiting the jurisdiction of
      the Arbitrator at law, the Parties agree that the Arbitrator shall have
      jurisdiction to:

            

    

     

    
      	
               
      

            	
                
      (i)

            	
              determine
      any question of law or fact arising in the
  arbitration;

            

    

     

    
      	
               
      

            	
               
      (ii)

            	
              determine
      any question as to the Arbitrator’s
  jurisdiction;

            

    

    

    
      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
               (iii)

            	
              determine
      any question of good faith, dishonesty or fraud arising in the
      dispute;

            

    

     

    
      	
               
      

            	
               
      (iv)

            	
              order
      any Party to furnish further details of that Party’s case, in fact or in
      law;

            

    

     

    
      	
               
      

            	
                
      (v)

            	
              proceed
      in the arbitration notwithstanding the failure or refusal of any Party to
      comply with these Rules or with the Arbitrator’s orders or directions, or
      to attend any meeting or hearing, but only after giving that Party written
      notice that the Arbitrator intends to do
so;

            

    

     

    
      	
               
      

            	
               
      (vi)

            	
              receive
      and take into account such written or oral evidence tendered by the
      Parties as the Arbitrator determines is relevant, whether or not strictly
      admissible in law;

            

    

     

    
      	
               
      

            	
               (vii)

            	
              make
      one or more interim awards;

            

    

     

    
      	
               
      

            	
              (viii)

            	
              hold
      meetings and hearings, and make a decision (including a final decision) in
      Vancouver, British Columbia or elsewhere with the concurrence of the
      Parties thereto;

            

    

     

    
      	
               
      

            	
               
      (ix)

            	
              order
      the Parties to produce to the Arbitrator, and to each other for
      inspection, and to supply copies of, any documents or other evidence or
      classes of documents in their possession or power which the Arbitrator
      determines to be relevant;

            

    

     

    
      	
               
      

            	
                
      (x)

            	
              award
      any remedy or relief that a court could order or grant in accordance with
      the Agreement, including, without limitation, specific performance of any
      obligation created under the Agreement, the issuance of an interim,
      interlocutory or permanent injunction, or the imposition of sanctions for
      abuse or frustration of the arbitration process;
  and

            

    

     

    
      	
               
      

            	
              (xi)

            	
              make
      interim orders to secure all or part of any amount in dispute in the
      arbitration.

            

    

     

    
      	
               
      

            	
              6.

            	
              Confidentiality

            

    

     

    
      	
               
      

            	
              (p)

            	
              The
      arbitration, including any settlement discussions between the parties
      related to the subject matter of the arbitration, shall be conducted on a
      private and confidential basis and any and all information exchanged and
      disclosed during the course of the arbitration shall be used only for the
      purposes of the arbitration. Neither party shall communicate any
      information obtained or disclosed during the course of the arbitration to
      any third party except to those experts or consultants employed or
      retained by, or consulted about retention on behalf of, such party in
      connection with the arbitration and solely to the extent necessary for
      assisting in the arbitration, and only after such persons have agreed to
      be bound by these confidentiality conditions. In the event that disclosure
      of any information related to the arbitration is required to comply with
      Applicable Law or court order, the disclosing Party shall promptly notify
      the other Party of such disclosure, shall limit such disclosure limited to
      only that information so required to be disclosed and shall have availed
      itself of the full benefits of any laws, rules, regulations or contractual
      rights as to disclosure on a confidential basis to which it may be
      entitled.

            

    

    

    
      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (q)

            	
              The
      award of the Arbitrator and any reasons for the decision of the Arbitrator
      shall also be kept confidential except (i) as may reasonably be necessary
      to obtain enforcement thereof, (ii) for either Party to comply with its
      disclosure obligations under Applicable Law, (iii) to permit the parties
      to exercise properly their rights under the Arbitration Rules, and (iv) to
      the extent that disclosure is required to allow the Parties to consult
      with their professional advisors.

            

    

    

    
      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

    

    

    Schedule A1 – Vendor
Representations and Warranties

     

    The
Vendor hereby represents and warrants to the Purchaser as follows:

     

    
      	
               
      

            	
              (a)

            	
              it
      is a company validly existing under the laws of its jurisdiction of
      incorporation and is up to date in respect of all filings required by law
      to maintain its existence;

            

    

     

    
      	
               
      

            	
              (b)

            	
              all
      requisite corporate acts and proceedings have been done and taken by it,
      including obtaining all requisite board of directors' approvals, with
      respect to entering into this Agreement and the Security Agreements and
      performing its obligations hereunder and
  thereunder;

            

    

     

    
      	
               
      

            	
              (c)

            	
              it
      has the requisite corporate power, capacity and authority to enter into
      this Agreement and the Security Agreements and to perform its obligations
      hereunder and thereunder;

            

    

     

    
      	
               
      

            	
              (d)

            	
              this
      Agreement and the Security Agreements and the exercise of its rights and
      performance of its obligations hereunder and thereunder do not and will
      not, (i) conflict with or result in a default under any agreement,
      mortgage, bond or other instrument to which it is a party or which is
      binding on its assets, (ii) conflict with its constating or constitutive
      documents, or (iii) conflict with or violate any Applicable Laws, in each
      case except as would not reasonably be expected to have, individually or
      in the aggregate, a Material Adverse
Effect;

            

    

     

    
      	
               
      

            	
              (e)

            	
              it
      is not currently in breach or default under any agreement, mortgage, bond
      or other instrument to which it is a party or which is binding on or
      affecting any of its assets, and no event has occurred that with the
      passage of time would constitute such a breach or default, except in each
      case where the breach or default would not, or would not reasonably be
      expected to, have a Material Adverse Effect, and it has no knowledge of a
      material breach or default by any counterparty thereto or the inability of
      any counterparty to perform its obligations
  thereunder;

            

    

     

    
      	
               
      

            	
              (f)

            	
              no
      Approvals are required to be obtained by it in connection with the
      execution and delivery or the performance by it of this Agreement or any
      of the Security Agreements or the transactions contemplated hereby and
      thereby;

            

    

     

    
      	
               
      

            	
              (g)

            	
              each
      of this Agreement and the Security Agreements has been duly and validly
      executed and delivered by it and constitutes a legal, valid and binding
      obligation of it, enforceable against it in accordance with its terms
      subject to any qualification regarding enforceability in the legal
      opinions provided pursuant to Section
4.1(c);

            

    

     

    
      	
               
      

            	
              (h)

            	
              there
      is no Insolvency Event in respect of it, and it is not now aware of any
      circumstance which, with notice or the passage of time, or both, would
      give rise to an Insolvency Event with respect to
  it;

            

    

     

    
      	
               
      

            	
              (i)

            	
              other
      than the Haslinger Royalty, no person has any agreement, option, right of
      first refusal or right, title or interest or right capable of becoming an
      agreement, option, right of first refusal or right, title or interest, in
      or to all or any part of the Milligan Project or the gold produced from
      the Milligan Project;

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (j)

            	
              all
      mining patents, fees and other amounts have been paid when due and payable
      and all other actions have been taken and all other obligations as are
      required to maintain the Milligan Project have been complied with, except
      where the failure to make a payment when due or take an action or perform
      an obligation would not be material to the
  Company;

            

    

     

    
      	
               
      

            	
              (k)

            	
              it
      has obtained or been issued all licences, permits, Approvals (including
      environmental Approvals), authorizations, rights (including surface and
      access rights), privileges, concessions or franchises necessary for the
      construction and Development of the Milligan Project as contemplated by
      the Development Program, other than those that are not necessary on the
      date this representation and warranty is given and are expected to be
      obtained in the ordinary course of business by the time they are
      necessary, and such licences, permits, approvals, authorizations, rights,
      privileges, concessions or franchises the failure to have or obtain which
      will not, or will not reasonably be expected to have, individually or in
      the aggregate, Material Adverse Effect, and to the knowledge its
      knowledge, other than the Nak’azdli Litigation, there are no facts or
      circumstances that might reasonably be expected to adversely affect the
      issuance of any such material licences, permits, Approvals (including
      environmental Approvals), authorizations, rights (including surface and
      access rights), privileges, concessions or
  franchises;

            

    

     

    
      	
               
      

            	
              (l)

            	
              the
      Mineral Claims and Mining Leases referred to in Schedule B (the “Milligan Tenures”)
      constitute all of the rights that comprise its interest in the Mineral
      reserves and resources of the Milligan Project as of the date of this
      Agreement and it is the registered, recorded and beneficial owner of a
      100% undivided interest in and to the Milligan Project, free and clear of
      all Encumbrances, except Permitted Encumbrances or as would not have,
      individually or in the aggregate, a Material Adverse Effect or materially
      affect the security interest of the Purchaser under any Security Agreement
      or other security document;

            

    

     

    
      	
               
      

            	
              (m)

            	
              the
      Milligan Tenures are in full force and effect and it has complied in all
      respects with its obligations in respect thereof under Applicable Laws
      (including without limitation Environmental Laws) and the terms thereof
      except to the extent such non-compliance would not be reasonable expected
      to result in a Material Adverse Effect on the operation of the Milligan
      Project;

            

    

     

    
      	
               
      

            	
              (n)

            	
              its
      right, title and interest in and to the Milligan Project is not subject to
      any Encumbrances, other than Permitted Encumbrances, except as would not
      reasonably be expected to have a Material Adverse Effect or materially
      affect the security interest of the Purchaser under any Security Agreement
      or other security document;

            

    

     

    
      	
               
      

            	
              (o)

            	
              the
      maps attached hereto as Schedule B depict the location of the Milligan
      Project in all material respects;

            

    

    

    
      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (p)

            	
              subject
      only to the rights of any Governmental Authority, no person is entitled to
      or has been granted any rent or royalty, or other payment in the nature of
      rent or royalty on or in respect of any Produced Gold other than Haslinger
      Royalty;

            

    

     

    
      	
               
      

            	
              (q)

            	
              it
      has not received any notice of any expropriation proceeding or decision to
      expropriate all or any part of the Milligan Project, and it does not have
      knowledge of any expropriation proceeding pending or threatened against or
      affecting all or any part of the Milligan Project or of any discussions or
      negotiations which could lead to any such expropriation
      proceeding;

            

    

     

    
      	
               
      

            	
              (r)

            	
              except
      as would not, or would not reasonably be expected to, have individually or
      in the aggregate, a Material Adverse Effect, conditions on and relating to
      the Milligan Project and the surface area or mining lots covered by the
      Milligan Project respecting all past and current operations conducted
      thereon by it are in material compliance with Applicable Laws (including
      without limitation Environmental Laws), and conditions on and relating to
      the Milligan Project and the surface area or mining lots covered by the
      Milligan Project respecting all past operations conducted thereon by
      persons other than the Vendor are, to its knowledge, in compliance in all
      material respects with Applicable Laws (including without limitation
      Environmental Laws);

            

    

     

    
      	
               
      

            	
              (s)

            	
              other
      than the Nak’azdli Litigation, it has not been notified that it is a party
      or is subject to any action, suit, proceeding, investigation or claim
      affecting or pertaining to the Milligan Project or any part thereof,
      except as would not reasonably be expected to have, individually or in the
      aggregate, a Material Adverse Effect and, to its knowledge, no such
      action, suit, proceeding, investigation or claim is threatened or
      outstanding;

            

    

     

    
      	
               
      

            	
              (t)

            	
              neither
      it nor the Milligan Project, nor any part thereof, is subject to any
      outstanding judgment, order, writ, injunction or decree that has or would
      reasonably be expected to have, individually or in the aggregate, a
      Material Adverse Effect;

            

    

     

    
      	
               
      

            	
              (u)

            	
              it
      enters into and performs this Agreement on its own account and not as
      trustee or a nominee of any other
person;

            

    

     

    
      	
               
      

            	
              (v)

            	
              except
      for Permitted Encumbrances, the Vendor has not granted, nor agreed to
      grant, an Encumbrance affecting or in the Minerals or the Milligan
      Project, or any part thereof, to any person other than to the
      Purchaser;

            

    

     

    
      	
               
      

            	
              (w)

            	
              the
      Technical Reports are accurate in all material respects and do not contain
      a misrepresentation.  The Technical Reports were prepared in
      accordance with Canadian industry standards set forth in NI 43-101 and the
      information contained in the Technical Reports was, at the time of
      delivery thereof, complete and accurate in all material respects and there
      has occurred no change to such information since the date of delivery
      thereof other than any change that would not reasonably be expected to
      have a Material Adverse Effect; and

            

    

    

    
      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (x)

            	
              since
      December 31, 2009, neither the business, properties, assets, liabilities
      (contingent or otherwise), condition (financial or otherwise),
      capitalization, operation or results of operations of the Vendor, have
      been affected by any change, effect, event or occurrence (whether or not
      insured against) which could reasonably be expected to result, either
      individually or in the aggregate, in a Material Adverse
      Effect.

            

    

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    Schedule A2 – Thompson Creek
Representations and Warranties

     

    Thompson
Creek hereby represents and warrants to the Purchaser as follows:

     

    
      	
               
      

            	
              (a)

            	
              it
      is a company validly existing under the laws of its jurisdiction of
      incorporation and is up to date in respect of all filings required by law
      to maintain its existence;

            

    

     

    
      	
               
      

            	
              (b)

            	
              all
      requisite corporate acts and proceedings have been done and taken by it,
      including obtaining all requisite board of directors' approvals, with
      respect to entering into this Agreement and performing its obligations
      hereunder;

            

    

     

    
      	
               
      

            	
              (c)

            	
              it
      has the requisite corporate power, capacity and authority to enter into
      this Agreement and to perform its obligations
  hereunder;

            

    

     

    
      	
               
      

            	
              (d)

            	
              this
      Agreement and the exercise of its rights and performance of its
      obligations hereunder do not and will not, (i) conflict with or result in
      a default under any agreement, mortgage, bond or other instrument to which
      it is a party or which is binding on its assets, (ii) conflict with its
      constating or constitutive documents, or (iii) conflict with or violate
      any Applicable Laws, in each case except as would not reasonably be
      expected to have, individually or in the aggregate, a material adverse
      effect on Thompson Creek or the performance of its obligations under this
      Agreement;

            

    

     

    
      	
               
      

            	
              (e)

            	
              it
      is not currently in breach or default under any material agreement,
      mortgage, bond or other instrument to which it is a party or which is
      binding on its assets, and no event has occurred that with the passage of
      time would constitute such a breach or default, and it has no knowledge of
      a material breach or default by any counterparty thereto or the inability
      of any counterparty to perform its obligations
  thereunder;

            

    

     

    
      	
               
      

            	
              (f)

            	
              no
      Approvals are required to be obtained by it in connection with the
      execution and delivery or the performance by it of this Agreement or the
      transactions contemplated hereby;

            

    

     

    
      	
               
      

            	
              (g)

            	
              this
      Agreement has been duly and validly executed and delivered by it and
      constitutes a legal, valid and binding obligation of it, enforceable
      against it in accordance with its terms subject to any qualification
      regarding enforceability in the legal opinion provided pursuant to Section
      4.1(c);

            

    

     

    
      	
               
      

            	
              (h)

            	
              it
      has not suffered an Insolvency Event and it is not now aware of any
      circumstance which, with notice or the passage of time, or both, would
      give rise to an Insolvency Event with respect to it;
  and

            

    

     

    
      	
               
      

            	
              (i)

            	
              it
      enters into and performs this Agreement on its own account and not as
      trustee or a nominee of any other
person.

            

    

    

    
      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

    

    

    Schedule A3 – Purchaser
Representations and Warranties

     

    Purchaser
hereby represents and warrants to the Vendor and Thompson Creek as
follows:

     

    
      	
               
      

            	
              (a)

            	
              it
      is a company validly existing under the laws of its jurisdiction of
      incorporation and is up to date in respect of all filings required by law
      to maintain its existence;

            

    

     

    
      	
               
      

            	
              (b)

            	
              all
      requisite corporate acts and proceedings have been done and taken by it,
      including obtaining all requisite board of directors' approvals, with
      respect to entering into this Agreement and performing its obligations
      hereunder;

            

    

     

    
      	
               
      

            	
              (c)

            	
              it
      has the requisite corporate power, capacity and authority to enter into
      this Agreement and to perform its obligations
  hereunder;

            

    

     

    
      	
               
      

            	
              (d)

            	
              this
      Agreement and the exercise of its rights and performance of its
      obligations hereunder do not and will not, (i) conflict with or result in
      a default under any agreement, mortgage, bond or other instrument to which
      it is a party or which is binding on its assets, (ii) conflict with its
      constating or constitutive documents or (iii) conflict with or violate any
      Applicable Laws, in each case except as would not reasonably be expected
      to have, individually or in the aggregate, a material adverse effect on
      the Purchaser or the performance of its obligations under this
      Agreement;

            

    

     

    
      	
               
      

            	
              (e)

            	
              it
      is not currently in breach or default under any material agreement,
      mortgage, bond or other instrument to which it is a party or which is
      binding on its assets, and no event has occurred that with the passage of
      time would constitute such a breach or default, and it has no knowledge of
      a material breach or default by any counterparty thereto or the inability
      of any counterparty to perform its obligations
  thereunder;

            

    

     

    
      	
               
      

            	
              (f)

            	
              no
      Approvals are required to be obtained by it in connection with the
      execution and delivery or the performance by it of this Agreement or the
      transactions contemplated hereby;

            

    

     

    
      	
               
      

            	
              (g)

            	
              this
      Agreement has been duly and validly executed and delivered by it and
      constitutes a legal, valid and binding obligation of it, enforceable
      against it in accordance with its terms subject to any qualification
      regarding enforceability in the legal opinion provided pursuant to Section
      4.2(c);

            

    

     

    
      	
               
      

            	
              (h)

            	
              it
      has not suffered an Insolvency Event and it is not now aware of any
      circumstance which, with notice or the passage of time, or both, would
      give rise to an Insolvency Event with respect to it;
  and

            

    

     

    
      	
               
      

            	
              (i)

            	
              it
      enters into and performs this Agreement on its own account and not as
      trustee or a nominee of any other
person.

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Schedule A4 – Royal Gold
Representations and Warranties

     

    Royal
Gold hereby represents and warrants to the Vendor and Thompson Creek as
follows:

     

    
      	
               
      

            	
              (a)

            	
              it
      is a company validly existing and in good standing under the laws of State
      of Delaware;

            

    

     

    
      	
               
      

            	
              (b)

            	
              all
      requisite corporate acts and proceedings have been done and taken by it,
      including obtaining all requisite board of directors' approvals, with
      respect to entering into this Agreement and performing its obligations
      hereunder;

            

    

     

    
      	
               
      

            	
              (c)

            	
              it
      has the requisite corporate power, capacity and authority to enter into
      this Agreement and to perform its obligations
  hereunder;

            

    

     

    
      	
               
      

            	
              (d)

            	
              this
      Agreement and the exercise of its rights and performance of its
      obligations hereunder do not and will not, (i) conflict with or result in
      a default under any agreement, mortgage, bond or other instrument to which
      it is a party or which is binding on its assets, (ii) conflict with its
      charter or bylaws, or (iii) conflict with or violate any Applicable Laws,
      in each case except as would not reasonably be expected to have,
      individually or in the aggregate, a material adverse effect on the
      Purchaser or the performance of its obligations under this
      Agreement;

            

    

     

    
      	
               
      

            	
              (e)

            	
              it
      is not currently in breach or default under any material agreement,
      mortgage, bond or other instrument to which it is a party or which is
      binding on its assets, and no event has occurred that with the passage of
      time would constitute such a breach or default, and it has no knowledge of
      a material breach or default by any counterparty thereto or the inability
      of any counterparty to perform its obligations
  thereunder;

            

    

     

    
      	
               
      

            	
              (f)

            	
              no
      Approvals are required to be obtained by it in connection with the
      execution and delivery or the performance by it of this Agreement or the
      transactions contemplated hereby;

            

    

     

    
      	
               
      

            	
              (g)

            	
              this
      Agreement has been duly and validly executed and delivered by it and
      constitutes a legal, valid and binding obligation of it, enforceable
      against it in accordance with its terms subject to any qualification
      regarding enforceability in the legal opinion provided pursuant to Section
      4.2(c);

            

    

     

    
      	
               
      

            	
              (h)

            	
              it
      has not suffered an Insolvency Event and it is not now aware of any
      circumstance which, with notice or the passage of time, or both, would
      give rise to an Insolvency Event with respect to it;
  and

            

    

     

    
      	
               
      

            	
              (i)

            	
              it
      enters into and performs this Agreement on its own account and not as
      trustee or a nominee of any other
person.

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Schedule B – Description of
Milligan Property (with Maps)

     

    [Not
Included]

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Schedule C1 – Form of
Security Agreement for Milligan Property

     

    [To
be settled]

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Schedule C2 – Form of
Security Agreement for Personal Property

     

    [To
be settled]

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Schedule C3 – Form of
Security Agreement – Floating Charge

     

    [To
be settled]

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Schedule D – Development
Program and Scheduled Deposits

     

    
      	
               
      

            	
              1.

            	
              Development Program: The
      Vendor shall deliver the Development Program to the Purchaser and the
      Independent Engineer at least 30 days prior to the first Scheduled
      Deposit.

            

    

     

    
      	
               
      

            	
              2.

            	
              Modifications to the
      Development Program:  The Vendor and Purchaser
      acknowledge that the Development Program may require modifications
      throughout Development.  Immediately when known, the Vendor
      shall provide the Independent Engineer and Purchaser written notice of any
      material change to the Development Program and reconcile the changes in a
      report.  The Independent Engineer shall review and provide to
      the Purchaser an opinion as to whether such changes are reasonable and
      shall keep a record of the current and prior Development
      Program.

            

    

     

    
      	
               
      

            	
              3.

            	
              Basis for making Scheduled
      Payments:

            

    

     

    
      	
               
      

            	
              a.

            	
              Promptly
      when received, the Independent Engineer shall review the Development
      Program and will establish a method for tracking the overall Project Costs
      in consultation with the Vendor and the
  Purchaser;

            

    

     

    
      	
               
      

            	
              b.

            	
              The
      Independent Engineer shall keep a record of all funding sources and the
      calculations of the Independent Engineer shall represent the definitive
      record of the Purchaser’s Pro Rata Share of
  Funding;

            

    

     

    
      	
               
      

            	
              c.

            	
              The
      Purchaser shall contribute Scheduled Payments no more frequently than
      every 30 days in an amount consistent with the Purchaser’s Pro Rata Share
      of Funding after accounting for the use of proceeds contemplated in the
      relevant Deposit Event along with all proceeds concurrently being funded
      by Vendor and third parties for the Development Program, payable in
      accordance with each Deposit Event;

            

    

     

    
      	
               
      

            	
              d.

            	
              Notwithstanding
      any other provision of this Agreement, Purchaser’s obligation to make a
      Scheduled Payment shall be suspended
if:

            

    

     

    
      	
               
      

            	
              i.

            	
              Vendor
      has not delivered to Purchaser copies of executed Mineral Offtake
      Agreements representing at least 75% of the Minerals projected to be
      produced during the first five years of operation of the Milligan Project,
      and at such time as the Development has surpassed the cumulative
      investment of 50% of Project Costs;
or

            

    

     

    
      	
               
      

            	
              ii.

            	
              after
      March 31, 2011, the Vendor shall have failed to obtain and keep in good
      standing the Fishery and Oceans
Permits.

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              e.

            	
              If
      Purchaser’s obligation to make Scheduled Payments are suspended in
      accordance with 3.d.i. or 3.d.ii. above, Purchaser will make a Scheduled
      Payment in the amount to regain the Purchaser’s Pro Rata Share of Funding
      on the Deposit Event occurring subsequent to the time that the Vendor
      satisfies the conditions set forth in 3.d.i. or 3.d.ii. above (a “Catch-Up
      Payment”).  Interest shall accrue on any Catch-Up Payment
      from the date the Scheduled Payments are suspended at an interest rate
      equivalent to the average three month United States Treasury bill yield,
      as quoted daily in the Wall Street Journal during such suspension,
      compounded annually, and shall be paid with the Catch-Up
      Payment.  The “Fishery and Oceans Permits” means (i) an
      authorization pursuant to section 35(2) of the Fisheries Act for the
      harmful alteration, disruption or destruction of fish habitat in respect
      of tailings impoundment area for the Milligan Project as described in the
      Milligan Report, and (ii) the addition of the area of the tailings
      impoundment area for the Milligan Project as described in the Milligan
      Report to Schedule 2 to the Metal Mining Effluent Regulations for the
      purposes of section 5(1) thereof, and the approval pursuant to section
      27.1(1) of the Metal Mining Effluent Regulations of a habitat compensation
      plan for such tailings impoundment area that complies with the
      requirements of section 27.1 of the Metal Mining Effluent
      Regulations.

            

    

     

    
      	
               
      

            	
              f.

            	
              Notwithstanding
      anything to the contrary, if Vendor completes the Development, Vendor will
      be entitled to establish a Deposit Event for the outstanding balance of
      Scheduled Deposits that have not been funded to
  date.

            

    

    

    
      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

    

    

    Schedule E – Permitted
Encumbrances

     

    
      	
              Personal
      Property

              Registry
      (BC)

            	 
      	
              Base
      Registration No.: 166686D

              Registration
      Date: August 8, 2006

              Registration
      Length: 5 years

              Secured
      Party: Canadian Imperial Bank of Commerce

              Debtor(s):
      Terrane Metals Corp.

            
	 
      	 
      	 
      
	 
      	 
      	
              Base
      Registration No.: 262518D

              Registration
      Date: September 27, 2006

              Registration
      Length: Infinity

              Secured
      Party: Kennecott Canada Exploration Inc

              Debtor(s):
      Terrane Metals Corp.

            
	 
      	 
      	 
      
	 
      	 
      	
              Base
      Registration No.: 478928E

              Registration
      Date: July 15, 2008

              Registration
      Length: 5 years

              Secured
      Party: Bank of Montreal, as Administrative Agent

              Debtor(s):
      Terrane Metals Corp.

            
	 
      	 
      	 
      
	 
      	 
      	
              Base
      Registration No.: 605381F

              Registration
      Date: June 10, 2010

              Registration
      Length: 4 years

              Secured
      Party: Key Lease Canada Ltd.

              Debtor(s):
      Terrane Metals Corp.

            
	 
      	 
      	 
      
	 
      	 
      	
              Base
      Registration No.: 605397F

              Registration
      Date: June 10, 2010

              Registration
      Length: 4 years

              Secured
      Party: Key Lease Canada Ltd.

              Debtor(s):
      Terrane Metals Corp.

            
	 
      	 
      	 
      
	
              Personal
      Property

              Registry
      (Nunavut)

            	 
      	
              Registration
      No.: 123380

              Registration
      Date: July 30, 2008

              Registration
      Length: 5 years

              Secured
      Parties: Bank of Montreal, as Administrative Agent, Bank of
      Montreal

              Debtor(s):
      Terrane Metals Corp.

            
	 
      	 
      	 
      
	
              Personal
      Property

              Registry
      (Yukon)

            	 
      	
              Registration
      No.: 2008/07/30 14865

              Registration
      Date: July 30, 2008

              Registration
      Length: 5 years

              Secured
      Parties: Bank of Montreal, as Administrative Agent, Bank of
      Montreal

              Debtor(s):
      Terrane Metals Corp.

            
	 
      	 
      	 
      
	
              Personal
      Property

              Registry
      (Northwest

              Territories)

            	 
      	
              Registration
      No.: 625251

              Registration
      Date: July 30, 2008

              Registration
      Length: 5 years

              Secured
      Parties: Bank of Montreal, as Administrative Agent, Bank of
      Montreal

              Debtor(s):
      Terrane Metals Corp.

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    Schedule F – Provisional Payment
Illustration

     

    *[Redacted]*

     

    
      

      *[Redacted]*  indicates
confidential information that has been omitted in reliance on Rule 24b-2 of the
Securities Exchange Act of 1934.  The confidential information has
been submitted separately to the U.S. Securities and Exchange
Commission.

    

     

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

      

    Schedule 1 to the Letter
Agreement – Royal Gold Representations and Warranties

     

    Royal
Gold hereby represents and warrants to the Vendor and Thompson Creek as
follows:

     

    
      	
              (a)

            	
              it
      is a company validly existing and in good standing under the laws of State
      of Delaware;

            

    

     

    
      	
              (b)

            	
              all
      requisite corporate acts and proceedings have been done and taken by it,
      including obtaining all requisite board of directors' approvals, with
      respect to entering into this letter agreement and performing its
      obligations hereunder;

            

    

     

    
      	
              (c)

            	
              it
      has the requisite corporate power, capacity and authority to enter into
      this letter agreement and to perform its obligations
      hereunder;

            

    

     

    
      	
              (d)

            	
              this
      letter agreement and the exercise of its rights and performance of its
      obligations hereunder do not and will not, (i) conflict with or result in
      a default under any agreement, mortgage, bond or other instrument to which
      it is a party or which is binding on its assets, (ii) conflict with its
      charter or bylaws, or (iii) conflict with or violate any Applicable Laws,
      in each case except as would not reasonably be expected to have,
      individually or in the aggregate, a material adverse effect on Royal Gold
      or the performance of its obligations under this
  Agreement;

            

    

     

    
      	
              (e)

            	
              it
      is not currently in breach or default under any material agreement,
      mortgage, bond or other instrument to which it is a party or which is
      binding on its assets, and no event has occurred that with the passage of
      time would constitute such a breach or default, and it has no knowledge of
      a material breach or default by any counterparty thereto or the inability
      of any counterparty to perform its obligations
  thereunder;

            

    

     

    
      	
              (f)

            	
              no
      Approvals are required to be obtained by it in connection with the
      execution and delivery or the performance by it of this letter agreement
      or the transactions contemplated
hereby;

            

    

     

    
      	
              (g)

            	
              this
      letter agreement has been duly and validly executed and delivered by it
      and constitutes a legal, valid and binding obligation of it, enforceable
      against it in accordance with its terms subject to any qualification
      regarding enforceability in the legal opinion provided pursuant to Section
      4.2(c) of Exhibit 1;

            

    

     

    
      	
              (h)

            	
              it
      has not suffered an Insolvency Event and it is not now aware of any
      circumstance which, with notice or the passage of time, or both, would
      give rise to an Insolvency Event with respect to it;
  and

            

    

     

    
      	
              (i)

            	
              it
      enters into and performs this letter agreement on its own account and not
      as trustee or a nominee of any other
person.

            

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Schedule 2 to the
Letter Agreement – Thompson Creek Representations and
Warranties

    

    Thompson
Creek hereby represents and warrants to the Purchaser as follows:

     

    
      	
              (a)

            	
              it is a company validly existing
      under the laws of its jurisdiction of incorporation and is up to date in
      respect of all filings required by law to maintain its
      existence;

            

    

     

    
      	
              (b)

            	
              all
      requisite corporate acts and proceedings have been done and taken by it,
      including obtaining all requisite board of directors' approvals, with
      respect to entering into this letter agreement and performing its
      obligations hereunder;

            

    

     

    
      	
              (c)

            	
              it
      has the requisite corporate power, capacity and authority to enter into
      this letter agreement and to perform its obligations
      hereunder;

            

    

     

    
      	
              (d)

            	
              this
      letter agreement and the exercise of its rights and performance of its
      obligations hereunder do not and will not, (i) conflict with or result in
      a default under any agreement, mortgage, bond or other instrument to which
      it is a party or which is binding on its assets, (ii) conflict with its
      constating or constitutive documents, or (iii) conflict with or violate
      any Applicable Laws, in each case except as would not reasonably be
      expected to have, individually or in the aggregate, a material adverse
      effect on Thompson Creek or the performance of its obligations under this
      letter agreement;

            

    

     

    
      	
              (e)

            	
              it
      is not currently in breach or default under any material agreement,
      mortgage, bond or other instrument to which it is a party or which is
      binding on its assets, and no event has occurred that with the passage of
      time would constitute such a breach or default, and it has no knowledge of
      a material breach or default by any counterparty thereto or the inability
      of any counterparty to perform its obligations
  thereunder;

            

    

     

    
      	
              (f)

            	
              no
      Approvals are required to be obtained by it in connection with the
      execution and delivery or the performance by it of this letter agreement
      or the transactions contemplated
hereby;

            

    

     

    
      	
              (g)

            	
              this
      letter agreement has been duly and validly executed and delivered by it
      and constitutes a legal, valid and binding obligation of it, enforceable
      against it in accordance with its terms subject to any qualification
      regarding enforceability in the legal opinion provided pursuant to Section
      4.1(c) of Exhibit 1;

            

    

     

    
      	
              (h)

            	
              it
      has not suffered an Insolvency Event and it is not now aware of any
      circumstance which, with notice or the passage of time, or both, would
      give rise to an Insolvency Event with respect to it;
  and

            

    

     

    
      	
              (i)

            	
              it
      enters into and performs this letter agreement on its own account and not
      as trustee or a nominee of any other
person.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]