Document:

EX-10.2

 Exhibit 10.2 

Execution Version 
  

 
  

THIRD AMENDMENT 
 TO

 5-YEAR REVOLVING CREDIT AGREEMENT 

dated as of 

August 10, 2016 

among 
 MURPHY
OIL CORPORATION, 
 CANAM OFFSHORE LIMITED, 

and 
 MURPHY OIL COMPANY
LTD., 
 as Borrowers 

JPMORGAN CHASE BANK, N.A., 

as Administrative Agent, 

and 
 The Lenders Party
Hereto 
  
  

 

 THIRD AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT 

THIS THIRD AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT (this “Third Amendment”) dated as of August 10, 2016 is
among MURPHY OIL CORPORATION, a Delaware corporation (the “Company”), CANAM OFFSHORE LIMITED, a Bahamian corporation (“Canam”), MURPHY OIL COMPANY LTD., a Canadian corporation
(“MOCL” and, together with the Company and Canam, the “Borrowers”); JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, together with its successors in such capacity, the
“Administrative Agent”) for the lenders party to the Existing Credit Agreement referred to below (collectively, the “Lenders”), issuing bank (in such capacity, together with its successors in such capacity, the
“Existing Issuing Bank”) swingline lender (in such capacity, together with its successors in such capacity, the “Existing Swingline Lender”); and the undersigned Lenders. 

R E C I T A L S 

A. The Borrowers, the Administrative Agent and the Lenders are parties to that certain 5-Year Revolving Credit Agreement dated as of
June 14, 2011 (as amended by that certain Commitment Increase and Maturity Extension Agreement dated as of May 23, 2013 and that certain Second Amendment dated as of August 2, 2013, the “Existing Credit Agreement”),
pursuant to which the Lenders have made certain extensions of credit available to the Borrower. 
 B. The Company has invited each Existing
Lender (as defined below) to extend revolving commitments pursuant to the terms and conditions set forth in the New Credit Agreement (as defined below). Any Existing Lender that agrees to participate as a lender in the New Credit Agreement pursuant
to this Third Amendment and identified as such on its signature page hereto is referred to herein as an “Extending Lender”. 

C. The Company desires to enter into the New Credit Agreement (as defined below) evidencing a senior credit facility in an aggregate principal
amount of $1,200,000,000 (the credit facility evidenced by the New Credit Agreement and the other New Loan Documents described below, the “New Credit Facility”). 

D. On the New Facility Availability Date (as defined below), the Borrowers desire to permanently reduce to zero and terminate the Existing
Commitment (as defined below) of each Existing Lender that elects to become an Extending Lender. 
 E. The Borrowers have requested and the
Existing Required Lenders (as defined below) have agreed to amend certain provisions of the Existing Credit Agreement as set forth herein. 

F. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 Section 1. Defined Terms. Each
capitalized term used herein but not otherwise defined herein has the meaning given such term in the Amended Credit Agreement (as amended hereby). Unless otherwise indicated, all references to Sections and Articles in this Third Amendment refer to
Sections and Articles of the Existing Credit Agreement. In addition, (a) terms defined in the introductory paragraph hereto have the meanings set forth therein and (b) as used in this Third Amendment, the following defined terms have the
following meanings: 
 “Amended Credit Agreement” means the Existing Credit Agreement, as amended by this Third Amendment.

 “Existing Commitment” means, with respect to any Existing Lender, the
“Commitment” of such Existing Lender under the Existing Credit Agreement immediately prior to the New Facility Availability Date. 

“Existing Credit Agreement” has the meaning set forth in Recital A of this Third Amendment. 

“Existing Issuing Bank Resignation” has the meaning set forth in Section 3(e)(i) of this Third Amendment. 

“Existing LC Rollover” has the meaning set forth in Section 3(b) of this Third Amendment. 

“Existing Lender” means any Lender party to the Existing Credit Agreement immediately prior to the New Facility Availability
Date. 
 “Existing Letters of Credit” has the meaning set forth in Section 3(b) of this Third Amendment. 

“Existing Outstanding Obligations” means all outstanding Obligations under and as defined in the Existing Credit Agreement
immediately prior to the New Facility Availability Date (including, without limitation, any fees owing to the Existing Issuing Bank and the Lenders in respect of Existing Letters of Credit no longer outstanding under the Existing Credit Agreement
pursuant to the Existing LC Rollover). 
 “Existing Required Lenders” means the “Required Lenders” under and as
defined in the Existing Credit Agreement, as determined on the Signing Date. 
 “Existing Swingline Lender Resignation” has
the meaning set forth in Section 3(e)(ii) of this Third Amendment. 
 “Extending Lender” has the meaning set forth in
Recital B of this Third Amendment. 
 “New Credit Facility” has the meaning set forth in Recital C of this Third Amendment.

 “New Facility Availability Date” has the meaning set forth in Section 5 of this Third Amendment. 

“New Loans” means the “Loans” under and as defined in the New Credit Agreement. 

“Non-Extending Lender” means any Existing Lender that is not an Extending Lender. 

“Signing Date” has the meaning set forth in Section 4 of this Third Amendment. 

Section 2. Agreements as of the Signing Date. Subject to the conditions set forth in Section 4 of this Third Amendment,
effective as of the Signing Date, the Borrowers, the Administrative Agent, the Existing Issuing Bank, the Existing Swing Line Lender and the Existing Required Lenders agree as follows: 

  
 2 

 2.1 Consent to New Credit Facility. Notwithstanding anything to the contrary in the
Existing Credit Agreement, the Existing Required Lenders hereby consent to the New Credit Facility, including the execution and delivery of the New Credit Agreement and the other New Loan Documents by the “Loan Parties” under and as
defined in the New Credit Agreement, and the incurrence of the Indebtedness and Guarantees thereunder and from and after March 31, 2017, the Liens (if any) securing the “Obligations” under and as defined in the New Credit Agreement.

 2.2 Amendments to Section 1.01. The following definitions are hereby added to Section 1.01 where alphabetically
appropriate to read as follows: 
 “BNP LC Facility” means that certain Uncommitted Facility Letter and Supplement between
BNP Paribas and the Company dated as of December 4, 2013 (as amended prior to the date hereof), but without giving effect to any extension, amendment, refinancing or other modification thereto or any increase in the principal amount thereof
from or after the Third Amendment Signing Date. 
 “New Credit Agreement” means that certain Credit Agreement, dated as of
August 10, 2016, by and among the Company, Murphy Exploration & Production Company International, a Delaware corporation, and MOCL, as the borrowers thereunder, the lenders party thereto and JPMorgan Chase Bank, N.A., as the
administrative agent thereunder. 
 “New Loan Documents” means the “Loan Documents” under and as defined in the
New Credit Agreement. 
 “Third Amendment Signing Date” means August 10, 2016. 

2.3 Amendments to Section 6.02. Section 6.02 is hereby amended by deleting “and” at the end of subsection (g),
deleting the period at the end of subsection (h) and replacing it with “; and”, and adding a new subsection (i) to read as follows: 

(i) from and after March 31, 2017, Liens (if any) securing (a) the “Obligations” under and as defined in the New Credit
Agreement and (b) obligations under the BNP LC Facility to the extent required pursuant to the terms thereof; provided that the aggregate amount of Indebtedness under the BNP LC Facility secured by any such Lien shall not exceed the
amount that would have been secured as if such Liens existed on the Third Amendment Signing Date (assuming that the maximum availability thereunder is fully utilized on the Third Amendment Signing Date). 

2.4 Amendment to Section 6.06. Section 6.06 is hereby amended by adding the following proviso at the end thereof: 

; provided further that, notwithstanding anything herein to the contrary, (A) the terms and conditions contained in the New
Credit Agreement and the other New Loan Documents shall not be subject to this Section 6.06 and (B) the restrictions contained in this Section 6.06 shall not apply to the restrictions and conditions set forth in the supplemental
indenture described in the Preliminary Prospectus Supplement of the Company dated August 10, 2016 and filed with the SEC as Registration No. 333-207463 (such supplemental indenture, the “2016 Indenture”), or any other
indenture or agreement governing Indebtedness that is not more restrictive than the 2016 Indenture. 

  
 3 

 2.5 Amendments to Article IX. 

(a) The second paragraph of Article IX is hereby amended by adding the following sentence at the end thereof to read as follows: 

In addition to and not in limitation of the foregoing, each Borrower and each Lender acknowledges that the Administrative Agent is or may be
an agent, arranger and/or lender under the New Credit Agreement and other New Loan Documents, other loans or other securities and waives any existing or future conflicts of interest associated with its role hereunder and in such other transactions.

 (b) The last sentence of the sixth paragraph of Article IX is hereby amended and restated in its entirety to read as follows: 

After the Administrative Agent’s resignation hereunder, the provisions of this Article IX and Section 10.03 shall
continue in effect for the benefit of such retiring Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them (i) while it was acting as Administrative Agent
and (ii) after such resignation or removal for as long as any of them continues to act in any capacity hereunder or under any agreement or instrument contemplated hereby, including in respect of any actions taken in connection with transferring
the agency to any successor Administrative Agent. 
 (c) Article IX is hereby amended by adding the following new paragraph after the sixth
paragraph therein: 
 Notwithstanding the foregoing, if no successor Administrative Agent has been appointed (and accepted
such appointment) pursuant to the previous paragraph by the date that is 30 days after the resigning Administrative Agent gives notice of its resignation, then the Administrative Agent’s resignation shall nevertheless become effective on such
date. At such time, (a) the Required Lenders shall be vested with all of the rights of, and perform all the duties of, the Administrative Agent hereunder until such time, if any, as a successor Administrative Agent has been appointed as
provided above and (b) the Borrowers shall make all payments in respect of the Loans or any fees or other amounts under this Agreement to, and deliver all notices and other communications directly to, each of the Lenders individually, and shall
for all other purposes deal directly with the Lenders. 

  
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 (d) Amendments to Section 10.03. 

(i) Section 10.03(a) is hereby amended by adding the following sentence at the end thereof to read as follows: 

For the avoidance of doubt, if at any time there is no Administrative Agent serving hereunder, references in this Section 10.03(a) to
“Administrative Agent” shall be deemed to be references to “Required Lenders”. 
 (ii)
Section 10.03(b) is hereby amended by adding the following phrase prior to the period at the end thereof: “as determined by a court of competent jurisdiction by final and non-appealable judgment”. 

2.6 Amendment to Section 10.12. Section 10.12 is hereby amended by adding the following sentence at the end thereof: 

Notwithstanding the foregoing, the Administrative Agent shall be permitted to disclose all Information and any other information, notices,
reports or other communications received from any Person pursuant to this Agreement to the agents, arrangers and lenders under the New Credit Agreement. 

2.7 Acknowledgements. Each party hereto hereby acknowledges and agrees as follows: 

(a) The amendments to the Existing Credit Agreement as contemplated hereby shall not be construed to discharge or otherwise affect any Existing
Outstanding Obligations accrued or otherwise owing under the Existing Credit Agreement and the other Loan Documents that have not been paid, it being understood that such obligations will continue to be evidenced as and constitute
“Obligations” under and as defined in the Amended Credit Agreement and the Loan Documents payable in accordance with the terms thereof, to the extent not otherwise repaid in accordance with the terms hereof. 

(b) The Existing LC Rollover shall occur on the New Facility Availability Date and any notice or other requirement under or pursuant to the
Existing Credit Agreement in respect of the Existing LC Rollover is hereby waived. 
 (c) The Existing Issuing Bank Resignation (as defined
below) and the Existing Swing Line Lender Resignation (as defined below) may each occur on the New Facility Availability Date and any notice or other requirement under or pursuant to the Existing Credit Agreement in respect of the Existing Issuing
Bank Resignation or the Existing Swing Line Lender Resignation is hereby waived. 
 Section 3. New Facility Availability Date
Agreements. Subject to the conditions set forth in Section 5 of this Third Amendment, effective as of the New Facility Availability Date, the Borrowers, the Administrative Agent, the Existing Issuing Bank, the Existing Swing Line Lender and
the Existing Required Lenders agree as follows: 
 (a) Amendment to Schedule 2.01. Schedule 2.01 to the Existing Credit Agreement is
hereby amended and restated in its entirety in the form attached hereto as Schedule 2.01. 
 (b) Assignment of Existing Letters of
Credit. The Letters of Credit issued and outstanding under the Amended Credit Agreement and described on Annex I hereto (the “Existing Letters of Credit”) shall be deemed to be issued under the New Credit Agreement on the New
Facility Availability Date and shall no longer constitute Letters of Credit under the Amended Credit Agreement (the “Existing LC Rollover”). 

  
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 (c) Extending Lenders. Each Existing Lender identified as an Extending Lender on its
signature page hereto hereby acknowledges and agrees that such Lender has made an election to be, and shall, effective immediately on the New Facility Availability Date, (i) become an “Extending Lender” hereunder and
(ii) (A) have its Existing Commitment reduced to zero and terminated, (B) no longer be a party to the Amended Credit Agreement or have any obligations under or in respect of the Amended Credit Agreement (provided that any indemnities
or other contingent obligations owing to any Extending Lender pursuant to the Amended Credit Agreement shall survive) and (C) become a “Lender” under and as defined in the New Credit Agreement, with all the rights and obligations of a
“Lender” thereunder, with respect to and to the extent of its “Commitments” under and as defined in the New Credit Agreement. 

(d) Non-Extending Lenders. Each Non-Extending Lender shall continue to be a “Lender” under and as defined in the Amended
Credit Agreement, with all the rights and obligations of a Lender thereunder, with respect to and to the extent of its “Commitment” under and as defined in the Amended Credit Agreement. Schedule 2.01 hereto reflects the
“Commitment” of each “Lender” (each as defined in the Amended Credit Agreement) under the Amended Credit Agreement. 

(e) Resignation. 
 (i) The
Existing Issuing Bank hereby resigns as an “Issuing Bank” under the Amended Credit Agreement, the “LC Issuance Limit” in respect of the Existing Issuing Bank under the Amended Credit Agreement is hereby terminated and reduced to
zero, and the Existing Issuing Bank shall not have any further obligations in respect of Letters of Credit under the Amended Credit Facility (provided that any indemnities or other contingent obligations owing to the Existing Issuing Bank pursuant
to the Amended Credit Agreement shall survive) (collectively, the “Existing Issuing Bank Resignation”); and 
 (ii) the
Existing Swingline Lender hereby resigns as a “Swingline Lender” under the Amended Credit Agreement, the Swingline Loan commitment pursuant to Section 2.04(a) of the Amended Credit Agreement is hereby terminated and reduced to zero,
and the Existing Swingline Lender shall have no further obligations in respect of Swing Line Loans under the Amended Credit Facility (provided that any indemnities or other contingent obligations owing to the Existing Swingline Lender pursuant to
the Amended Credit Agreement shall survive) (the “Existing Swingline Lender Resignation”). 
 Section 4. Conditions
Precedent to Signing Date. This Third Amendment (other than Section 3) shall become effective on the date on which each of the following conditions is satisfied (the “Signing Date”): 

4.1 The Administrative Agent shall have received from the Borrowers, the Existing Required Lenders, the Extending Lenders, the
Existing Issuing Bank and the Existing Swingline Lender, counterparts (in such number as may be requested by the Administrative Agent) of this Third Amendment signed on behalf of such Persons. 

4.2 The “Effective Date” under and as defined in the New Credit Agreement shall have occurred. 

4.3 The Administrative Agent shall have received such other documents as the Administrative Agent or special counsel to the
Administrative Agent may reasonably request. 

  
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 The Administrative Agent is hereby authorized and directed to declare the occurrence of the
Signing Date when it has received documents confirming compliance with the conditions set forth in this Section 4 or the waiver of such conditions as agreed to by the Existing Required Lenders pursuant to Section 10.02(b) of the Existing
Credit Agreement. Such declaration shall be final, conclusive and binding upon all parties to this Third Amendment for all purposes. For purposes of determining compliance with the conditions specified in this Section 4, each Existing Required
Lender shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to an Existing Required Lender unless the
Administrative Agent shall have received written notice from such Lender prior to the proposed Signing Date specifying its objection thereto. 

Section 5. Conditions Precedent to New Facility Availability Date. Section 3 of this Third Amendment shall become effective
on the date on which each of the following conditions is satisfied (the “New Facility Availability Date”): 

5.1 The Signing Date shall have occurred. 

5.2 The Administrative Agent and the Lenders shall have received all fees and other amounts due and payable, if any, in
connection with this Third Amendment on or prior to the New Facility Availability Date (including fees and expenses of counsel to the Administrative Agent). 

5.3 No Default shall have occurred and be continuing, after giving effect to the terms of this Third Amendment. 

5.4 The representations and warranties set forth in Section 7.2(d)(i) of this Third Amendment shall be true and correct on
the New Facility Availability Date. 
 5.5 The “Availability Date” under and as defined in the New Credit Agreement
shall have occurred, which New Credit Agreement shall permit the Existing LC Rollover such that the Existing Letters of Credit shall be deemed to be “Letters of Credit” issued under and as defined in the New Credit Agreement. 

5.6 After giving effect to the Existing LC Rollover, the aggregate Credit Exposure under the Amended Credit Agreement shall be
equal to zero. 
 The Administrative Agent is hereby authorized and directed to declare the occurrence of the New Facility Availability Date
when it has received documents confirming compliance with the conditions set forth in this Section 5 or the waiver of such conditions as agreed to by the Existing Required Lenders pursuant to Section 10.02(b) of the Existing Credit
Agreement. Such declaration shall be final, conclusive and binding upon all parties to this Third Amendment for all purposes. For purposes of determining compliance with the conditions specified in this Section 5, each Lender shall be deemed to
have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received
written notice from such Lender prior to the proposed New Facility Availability Date specifying its objection thereto. 
 Section 6.
Post-Effective Date Agreement. 
 6.1 Fifth Third Bank has informed the Borrowers, the Administrative Agent and the
Existing Required Lenders that it desires to participate as a lender in the New Credit Agreement on or after the New Facility Availability Date. The Borrowers, the Administrative Agent and the Existing Required

  
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Lenders hereby agree that, effective as of the Fifth Third Assignment Date (as defined below), Fifth Third Bank, as a Lender under the Amended Credit Agreement shall (i) have its Commitment
reduced to zero and terminated, (ii) no longer be a party to the Amended Credit Agreement or have any obligations under or in respect of the Amended Credit Agreement (provided that any indemnities or other contingent obligations owing to it
pursuant to the Amended Credit Agreement shall survive) and (iii) become a “Lender” under and as defined in the New Credit Agreement, with all the rights and obligations of a “Lender” thereunder, with respect to and to the
extent of its “Commitments” under and as defined in the New Credit Agreement. This Section 6.1 is referred to as the “Fifth Third Exit”. 

6.2 The Fifth Third Exit shall become effective on the date on which each of the following conditions is satisfied (such date,
the “Fifth Third Assignment Date”): 
 (a) The New Facility Availability Date shall have occurred (or shall occur
simultaneously with the Fifth Third Exit). 
 (b) The Administrative Agent shall have received a duly executed assignment and assumption
agreement, pursuant to which Fifth Third Bank acquires a “Commitment” under and as defined in the New Credit Agreement. 
 The
Administrative Agent is hereby authorized and directed to declare the occurrence of the Fifth Third Assignment Date when it has received documents confirming compliance with the conditions set forth in this Section 6.2. Such declaration shall
be final, conclusive and binding upon all parties to this Third Amendment for all purposes. The Administrative Agent shall promptly notify the Lenders of the Fifth Third Assignment Date, and the Administrative Agent may furnish to the Lenders an
amended and restated Schedule 2.01 to the Amended Credit Agreement reflecting the Commitments of the Lenders after giving effect to the Fifth Third Exit, which amended and restated Schedule 2.01 shall amend, restate and supersede in its entirety
Schedule 2.01 as it may exist at such time. 
 Section 7. Miscellaneous. 

7.1 Confirmation. The provisions of the Existing Credit Agreement, as amended by this Third Amendment, shall remain in
full force and effect following the effectiveness of this Third Amendment. 
 7.2 Ratification and Affirmation;
Representations and Warranties. Each Borrower hereby: (a) acknowledges the terms of this Third Amendment; (b) acknowledges, ratifies and affirms its obligations and continued liability under, the Existing Credit Agreement and agrees
that the Existing Credit Agreement remains in full force and effect, except as expressly amended hereby, after giving effect to the amendments contained herein; (c) agrees that the terms “Agreement”, “this Agreement”,
“herein”, “hereinafter”, “hereto”, “hereof” and words of similar import, as used in the Existing Credit Agreement, shall, unless the context otherwise requires, refer to the Amended Credit Agreement, and the
term “Credit Agreement” as used in the other Loan Documents shall mean the Amended Credit Agreement and (d) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Third Amendment:
(i) all of the representations and warranties contained in the Existing Credit Agreement are true and correct, unless such representations and warranties are stated to relate to a specific earlier date, in which case, such representations and
warranties shall continue to be true and correct as of such earlier date and (ii) no Default has occurred and is continuing.  

7.3 Counterparts. This Third Amendment may be executed by one or more of the parties hereto in any number of separate
counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this Third Amendment by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.

  
 8 

 7.4 NO ORAL AGREEMENT. THIS THIRD AMENDMENT, THE EXISTING CREDIT AGREEMENT
AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
ORAL AGREEMENTS BETWEEN THE PARTIES. 
 7.5 GOVERNING LAW. THIS THIRD AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE
VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND EACH BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THE EXISTING CREDIT AGREEMENT OR THIS THIRD AMENDMENT, OR FOR THE RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN
OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THE EXISTING CREDIT AGREEMENT OR THIS THIRD AMENDMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING ANY
ACTION OR PROCEEDING RELATING TO THE EXISTING CREDIT AGREEMENT OR THIS THIRD AMENDMENT AGAINST ANY BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION. 

[SIGNATURES BEGIN NEXT PAGE] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be duly executed as of
the date first written above. 
  

			
	MURPHY OIL CORPORATION
		
	By:	 	 /s/ John B. Gardner

	Name:	 	John B. Gardner
	Title:	 	Vice President and Treasurer
	
	CANAM OFFSHORE LIMITED
		
	By:	 	 /s/ John B. Gardner

	Name:	 	John B. Gardner
	Title:	 	Vice President and Treasurer
	
	MURPHY OIL COMPANY LTD.
		
	By:	 	 /s/ John B. Gardner

	Name:	 	John B. Gardner
	Title:	 	Treasurer

  
 [SIGNATURE PAGE TO THIRD
AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT] 

 
			
	JPMORGAN CHASE BANK, N.A., as Administrative Agent, Existing Swingline Lender, Existing Issuing Bank, Existing Lender and Extending Lender
		
	By:	 	 /s/ Jeffrey C. Miller

	Name:	 	Jeffrey C. Miller
	Title:	 	Vice President

  
 [SIGNATURE PAGE TO THIRD
AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT] 

 
			
	 BANK OF AMERICA, N.A., as an Existing

Lender and as an Extending Lender

		
	By:	 	 /s/ Ken Phelan

	Name:	 	Ken Phelan
	Title:	 	Director

  
 [SIGNATURE PAGE TO THIRD
AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT] 

 
			
	 WELLS FARGO BANK, NATIONAL

ASSOCIATION, as an Existing Lender and
 as an Extending
Lender

		
	By:	 	 /s/ Nathan Starr

	Name:	 	Nathan Starr
	Title:	 	Vice President

  
 [SIGNATURE PAGE TO THIRD
AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT] 

 
			
	 DNB CAPITAL LLC, as an Existing Lender

and as an Extending Lender

		
	By:	 	 /s/ Sybille Andaur

	Name:	 	Sybille Andaur
	Title:	 	First Vice President
		
	By:	 	 /s/ Barbara Gronquist

	Name:	 	Barbara Gronquist
	Title:	 	Senior Vice President

  
 [SIGNATURE PAGE TO THIRD
AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT] 

 
			
	 BNP PARIBAS, as an Existing Lender and

as an Extending Lender

		
	By:	 	 /s/ Julien Pecoud-Bouvet

	Name:	 	Julien Pecoud-Bouvet
	Title:	 	Vice President
		
	By:	 	 /s/ Gregoire Poussard

	Name:	 	Gregoire Poussard
	Title:	 	Vice President

  
 [SIGNATURE PAGE TO THIRD
AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT] 

 
			
	 THE BANK OF TOKYO-MITSUBISHI

UFJ, LTD., as an Existing Lender and
 as an Extending
Lender

		
	By:	 	 /s/ Todd Vaubel

	Name:	 	Todd Vaubel
	Title:	 	Vice President

  
 [SIGNATURE PAGE TO THIRD
AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT] 

 
			
	 REGIONS BANK, as an Existing Lender and

as an Extending Lender

		
	By:	 	 /s/ Kelly L. Elmore III

	Name:	 	Kelly L. Elmore III
	Title:	 	Managing Director

  
 [SIGNATURE PAGE TO THIRD
AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT] 

 
			
	 BANCORPSOUTH BANK, as an Existing

Lender and as an Extending Lender

		
	By:	 	 /s/ Ronald L. Hendrix

	Name:	 	Ronald L. Hendrix
	Title:	 	Executive Vice President

  
 [SIGNATURE PAGE TO THIRD
AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT] 

 
			
	 CAPITAL ONE, NATIONAL

ASSOCIATION, as an Existing Lender and
 as an Extending
Lender

		
	By:	 	 /s/ Matthew Molero

	Name:	 	Matthew Molero
	Title:	 	Senior Vice President

  
 [SIGNATURE PAGE TO THIRD
AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT] 

 
			
	 WHITNEY BANK, as an Existing Lender and

as an Extending Lender

		
	By:	 	 /s/ Elder Gwin

	Name:	 	Elder Gwin
	Title:	 	Vice President

  
 [SIGNATURE PAGE TO THIRD
AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT] 

 
			
	COMERICA BANK, as an Existing Lender
		
	By:	 	 /s/ Brandon M. White

	Name:	 	Brandon M. White
	Title:	 	Vice President

  
 [SIGNATURE PAGE TO THIRD
AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT] 

 SCHEDULE 2.01 

COMMITMENTS AS OF THE NEW FACILITY AVAILABILITY DATE 
  

									
	 Lender
	  	Amount of
Commitment	 	  	Applicable
Percentage	 
	 Royal Bank of Canada
	  	$	190,000,000	  	  	 	30.158730159	% 
	 US Bank National Association
	  	$	120,000,000	  	  	 	19.047619048	% 
	 Canadian Imperial Bank of Commerce
	  	$	95,000,000	  	  	 	15.079365079	% 
	 Fifth Third Bank
	  	$	75,000,000	  	  	 	11.904761905	% 
	 Australia and New Zealand Banking Group Limited
	  	$	50,000,000	  	  	 	7.936507937	% 
	 PNC Bank, National Association
	  	$	50,000,000	  	  	 	7.936507937	% 
	 Comerica Bank
	  	$	25,000,000	  	  	 	3.968253968	% 
	 Bank Hapoalim BM – New York
	  	$	25,000,000	  	  	 	3.968253968	% 
		  	  
	  
	 	  	  
	  
	 
	 TOTAL:
	  	$	630,000,000	  	  	 	100	% 

 ANNEX I 

EXISTING LETTERS OF CREDIT 
  

																													
	 Issuing Bank
	 	LC No.	 	 	Issue
Date	 	 	Expiration
Date	 	 	Face Amount	 	 	Accrual	 	 	Beneficiary	 	 	Applicant	 
	 J.P. Morgan Chase
	 	 	TFTS-988779	  	 	 	03/30/2016	  	 	 	03/31/2017	  	 	$	88,477,075.00	  	 	 	No	  	 	 
  
	Enbridge G&P
 Canada Ltd.
	 
   
	 	 
  
	Murphy Oil
 Company Ltd.STARCORE
INTERNATIONAL
MINES
LTD.

 

 

and

 

 

AMERICAN
CONSOLIDATED
MINERALS
CORP.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ARRANGEMENT
AGREEMENT

 

October
1, 2014

    	 

    	 

    

TABLE
OF CONTENTS

 

 

ARTICLE
1 INTERPRETATION

Section
1.1Defined 
Terms1

Section
1.2Certain Rules
of Interpretation11

Section
1.3Schedules12

ARTICLE
2

THE
ARRANGEMENT

Section
2.1Arrangement13

Section
2.2Interim Order13

Section
2.3The American
Consolidated
Meeting14

Section
2.4The American
Consolidated
Circular15

Section
2.5Final Order16

Section
2.6Court Proceedings17

Section
2.7No Fractional
Shares17

Section
2.8Arrangement
Filings
and Effective
Date18

Section
2.9Announcement
and Shareholder
Communications18

Section
2.10List of
Shareholders19

ARTICLE
3 REPRESENTATIONS
AND WARRANTIES

Section
3.1Representations
and Warranties
of American
Consolidated19

Section
3.2Representations
and Warranties
of Starcore19

ARTICLE
4 COVENANTS

Section
4.1Covenants
of American
Consolidated
Regarding
the Conduct
of Business
until the
Effective
Time 20

Section
4.2Covenants
of American
Consolidated
Regarding
the Arrangement22

Section
4.3Covenants
of Starcore
Relating
to the
Arrangement23

Section
4.4American
Consolidated
Warrants24

Section
4.5Starcore
Meeting or
Written
Resolution24

Section
4.6Starcore
Circular25

Section
4.7Access to
Information;
Confidentiality26

Section
4.8Notice and Cure
Provisions26

Section
4.9Insurance
and Indemnification27

ARTICLE
5

ADDITIONAL
COVENANTS
REGARDING
NON-SOLICITATION

Section
5.1Non-Solicitation27

Section
5.2Notification
of Acquisition
Proposals29

(
i )

    	 

    	 

    

Section
5.3Responding
to an Acquisition
Proposal29

Section
5.4Right
to Match30

Section
5.5Breach by
Subsidiaries
and Representatives33

ARTICLE
6 CONDITIONS

Section
6.1Mutual
Conditions
Precedent33

Section
6.2Additional
Conditions
Precedent
to the Obligations
of Starcore33

Section
6.3Additional
Conditions
Precedent
to the
Obligations
of American
Consolidated
34

Section
6.4Satisfaction
of Conditions35

ARTICLE
7

TERM
AND TERMINATION

Section
7.1Term36

Section
7.2Termination36

Section
7.3Effect of
Termination/Survival38

ARTICLE
8 GENERAL
PROVISIONS

Section
8.1Amendments38

Section
8.2Termination
Fees39

Section
8.3Expenses40

Section
8.4Notices40

Section
8.5Time
of the
Essence41

Section
8.6Injunctive
Relief41

Section
8.7Third
Party
Beneficiaries41

Section
8.8Waiver42

Section
8.9Entire
Agreement42

Section
8.10Successors
and Assigns42

Section
8.11Severability42

Section
8.12Governing
Law43

Section
8.13Rules
of Construction43

Section
8.14No Liability43

Section
8.15Language43

Section
8.16Counterparts43

 

SCHEDULES

 

Schedule
APLAN
OF ARRANGEMENT

Schedule
BARRANGEMENT
 RESOLUTION

Schedule
CREPRESENTATIONS
AND WARRANTIES
OF AMERICAN
CONSOLIDATED

 

Schedule
DREPRESENTATIONS
AND WARRANTIES
OF STARCORE

 

 

(
ii )

    	 

    	 

    

ARRANGEMENT
AGREEMENT

 

 

This
Arrangement
Agreement
is dated
October
1, 2014 between
Starcore
International
Mines
Ltd.
(“Starcore”)
and American
Consolidated
Minerals
Corp. (“American
 Consolidated”).

 

WHEREAS:

 

		(a)	Starcore
proposes to
acquire
all of
the issued
and outstanding
common
shares
of American
Consolidated
on the
basis of
one third
of a
Starcore
common
share
for each one
(1) American
Consolidated
common share;

 

		(b)	Starcore
and American
Consolidated
intend
that the
acquisition
of American
Consolidated
by Starcore
be carried
out under
the
arrangement
provisions
of Part
9, Division
5 of the
Business
Corporations
Act (British
Columbia);

 

		(c)	The
boards
of directors
of each
of Starcore
and American
Consolidated
have unanimously
determined
that the
Arrangement
is in the
best interest
of their
respective
shareholders,
and has resolved
to support
the Arrangement
and enter
into this Arrangement
Agreement;
and

 

		(d)	Starcore
has entered
into
voting support
agreements
with each
of the
directors
and officers
of American
Consolidated
and with
certain
other shareholders
of American
Consolidated;

 

THIS
AGREEMENT
WITNESSES
that in
consideration
of the
covenants
and agreements
herein
contained
and other
good and
valuable
consideration
(the
receipt
and sufficiency
of which
are hereby
mutually
acknowledged),
the Parties
hereto do
hereby covenant
and agree
as follows:

 

 

ARTICLE
1 INTERPRETATION

 

Section
1.1  Defined
Terms.

Wherever
used in
this Agreement,
unless there
is something
inconsistent
in the subject
matter or
context,
the following
capitalized
words and
terms will
have the
meanings
set out
below and
in addition
certain
other
words and
terms are
defined
in the
Plan of
Arrangement:

 

“Acquisition
Proposal”
means, other
than the
transactions
contemplated
by this Agreement
and other
than
any transaction
involving
only American
Consolidated
and/or
one or
more of
its wholly-owned
Subsidiaries,
any offer,
proposal or inquiry
(written or
oral) from any
Person or
group of Persons
other than
Starcore
(or any affiliate
of Starcore
or any Person
acting in concert
with Starcore
or any affiliate
of Starcore)
after the date
of this
Agreement
relating to (i)
any sale or
disposition
(or any lease, long-term
supply agreement
or other
arrangement
having the same economic
effect as a sale),
direct or
indirect,
of assets representing
20% or more of
the

    	 

    	 

    

 

 

consolidated
assets or
contributing
20% or
more
of the
consolidated
revenue
of American
Consolidated
and its Subsidiaries
or of
20% or
more of
the voting
or equity
securities
of American
Consolidated
or any
of its
Subsidiaries
(or
rights
or interests in such
voting or
equity securities),
(ii) any take-over
bid, exchange
offer or
other transaction
that, if
consummated,
would result
in such
Person
or group
of Persons
beneficially
owning
20% or more of
any class of
voting or
equity
securities of American
Consolidated
or any of its Subsidiaries,
(iii) any
plan of
arrangement,
merger,
amalgamation,
consolidation,
share exchange,
business
combination,
reorganization,
recapitalization,
liquidation,
dissolution
or winding
up involving
American
Consolidated
or any of its Subsidiaries,
or (iv) any
other similar
transaction
or series of
transactions
involving
American
Consolidated
or any of its Subsidiaries.

 

“affiliate”
has the
meaning
specified
in National
Instrument 45-106
– Prospectus
and Registration
 Exemptions.

 

“Agreement”
means
this arrangement
agreement,
together
with the
Schedules
attached hereto,
as the same
may be amended,
supplemented
or otherwise
modified from
time to
time
in accordance
with the
terms hereof.

 

“American
Consolidated”
means
American
Consolidated
Minerals
Corp., a corporation
incorporated
under
the laws of
British
Columbia.

 

“American
Consolidated
Board” means
the board
of directors
of American
Consolidated
as constituted
from time
to time.

 

“American
Consolidated
Board Recommendation”
means
has the
meaning
specified
in Section
2.4(2).

 

“American
Consolidated
Circular”
means
the notice
of the
American
Consolidated
Meeting and
accompanying
management
information
circular,
including
all schedules,
appendices
and exhibits
to, and
information
incorporated
by reference
in, such management
information
circular,
to be sent to the American
Consolidated
Shareholders
in connection
with the American
Consolidated
Meeting,
as amended,
supplemented or
otherwise
modified from time
to time in accordance
with the terms of
this Agreement.

 

“American
Consolidated
Disclosure
Letter”
means the
disclosure
letter dated
the date of
this Agreement
and delivered
by American
Consolidated
to Starcore
with this Agreement.

 

“American
Consolidated
Employees”
means
the employees
of American
Consolidated
and its
Subsidiaries.

 

“American
Consolidated
Filings”
means
all documents
publicly
filed under
 the
profile of
American
Consolidated
on the
System
for Electronic
Document
Analysis
Retrieval
(SEDAR)
since August
19, 2012.

    	 

    	 

    

 

 

“American
Consolidated
Meeting”
means the
special
meeting
of American
Consolidated
Shareholders,
including
any adjournment
or postponement
of such
special meeting
in accordance
with the
terms of
this Agreement,
to be
called and held in accordance
with the Interim
Order to consider
the Arrangement
Resolution
and for any other
purpose as may be set
out in the
American
Consolidated
Circular.

 

“American
Consolidated
Options”
means
the outstanding
options
to purchase
American
Consolidated
Shares
issued pursuant
to the American
Consolidated
Option
Plan,
as listed in
Section
8(b)
of the
American
Consolidated
Disclosure
Letter.

 

“American
Consolidated
Option
Plan”
means
the American
Consolidated
stock option
plan
as most
recently
approved by
American
Consolidated
Shareholders
on December
13, 2013, pursuant
to which
American
Consolidated
Options
are granted.

 

“American
Consolidated
Shareholders”
means the
registered
or beneficial
holders
of the
American
Consolidated
Shares,
as the
context
requires,
and American
Consolidated
Shareholder
means any
one of
them.

 

“American
Consolidated
Shares”
means
the common
shares
in the
capital
of American
Consolidated
as presently
constituted.

 

“American
Consolidated
Warrants” means
outstanding
share
purchase warrants
to purchase American
Consolidated
Shares
as listed
in Section
8(c)
of the American
Consolidated
Disclosure
Letter.

 

“Arrangement”
means
an arrangement
under
Part
9, Division
5 of
the BCBCA,
on the terms
and conditions
set forth
in the
Plan
of Arrangement,
subject
to any amendments
or supplement
thereto
made
in accordance
with this Agreement
and the provisions
of the Plan
of Arrangement
or made
at the direction
of the
Court in the Final Order.

 

“Arrangement
Resolution”
means the
Special
Resolution
of American
Consolidated
Shareholders
approving
the Arrangement
and presented
at the
American
Consolidated
Meeting substantially
in the
form of
Schedule
B.

 

“Arrangement
Filings”
means the
filings,
if any,
that may
be required
under
Section 292
of the
BCBCA
to be made
by American
Consolidated
with the
Registrar
in order for
the Arrangement
to be
effective;

“associate”
has the
meaning
specified
in the
Securities
Act
(British
Columbia).
“Authorization”
 means
 with 
respect 
to  any  Person,
 any 
order, 
permit, 
approval,

consent,
waiver,
licence
or similar
authorization
of any
Governmental
Entity
having

jurisdiction
over
the Person.

    	 

    	 

    

 

 

“BCBCA”
means the
Business
Corporations
Act
(British
Columbia)
and the regulations
made
thereunder,
as now
in effect
and as they
may be
promulgated
or amended
from time
to time;

 

“Business
Day” means
a day
which
is not
a Saturday,
Sunday
or a
civic
or statutory
holiday
in Vancouver,
British
Columbia.

 

“Change
in Recommendation”
has the
meaning
specified
in Section
7.2(1)(d)(ii).
“Closing
Certificate”
has
the meaning
ascribed
thereto
in the
Plan of
Arrangement.

“Confidentiality
Agreement”
means
that certain
confidentiality
agreement
made
as of August
20, 2014 between
Starcore
and American
Consolidated.

 

“Consideration”
means
the consideration
to be received
by the
American
Consolidated
Shareholders
pursuant
to the Plan
of Arrangement
as consideration
for their American
Consolidated
Shares,
consisting
of one
third
of one
(1/3)
Starcore
Share per
one (1) American
Consolidated
Share (the
“Exchange
Ratio”).

 

“Constating
Documents”
means notice
of articles,
amalgamation,
or continuation
(or
the equivalent),
as applicable,
and articles
and all
amendments
to such
articles.

 

“Contract”
means
any
legally
binding
agreement,
commitment,
engagement,
contract,
franchise,
licence,
obligation
or undertaking
(written
or oral)
to which
a Party
or any
of its Subsidiaries
is a party
or by
which it
or any
of its
Subsidiaries
is bound
or affected or
to which any of
their respective
properties
or assets is
subject.

 

“Court”
means
the
Supreme
Court
of British
Columbia.

 

“Depositary”
means
[Computershare
Investor
Services
Inc.], or
any other
depositary
or trust
company,
bank
or financial
institution
agreed
to between
Starcore
and American
Consolidated
for the
purpose of,
among
other
things,
exchanging
certificates representing
American
Consolidated
Shares
for Starcore
Shares
in connection
with the Arrangement.

 

“Dissent
Rights”
means
the rights
of dissent
exercisable
by American
Consolidated
Shareholders
in respect
of the
Arrangement
Resolution.

 

“Effective
Date” means
the date
upon which
the Arrangement
becomes
effective
as provided
in the
Plan
of Arrangement.

“Effective
Time”
has the
meaning ascribed
thereto
in the
Plan
of Arrangement.
“Encumbrance”
means
any mortgage,
hypothec,
pledge,
assignment,
charge,
lien,

claim,
security
interest,
adverse
interest,
other
third
person
interest
or encumbrance

of
any kind,
whether contingent
or absolute
and any agreement,
option,
right
or privilege
(whether
by law,
contract
or otherwise)
capable of
becoming
any of
the foregoing.

    	 

    	 

    

 

 

“Environmental
Laws”
means
all Law
and
agreements
with Governmental
Entities
and all
other
statutory
requirements
relating
to public
health
or the
protection
of the
environment
and
all Authorizations
issued pursuant
to such
Law, agreements
or other statutory
requirements.

“Exchange
Ratio”
has the
meaning
specified
in the
definition
of Consideration.
“Final
Order”
means
the
final order
of the
Court, after
a hearing
on the
fairness
of

the
terms
and conditions
of the
Arrangement,
in a form
acceptable
to American

Consolidated
and Starcore,
each acting
reasonably,
approving the
Arrangement,
as such
order may
be amended
by the
Court (with
the consent
of American
Consolidated
and Starcore,
each acting
reasonably)
at any time
prior
to the Effective
Date or, if appealed,
then unless such
appeal is withdrawn
or denied,
as affirmed or as amended
(provided
that any such
amendment
is acceptable
to both American
Consolidated
and Starcore,
each acting reasonably)
on appeal.

 

“Governmental
Entity”
means (i)
any international,
multinational,
national,
federal,
provincial,
state, regional,
municipal,
local or
other government,
governmental
or public
department,
central
bank,
court, tribunal,
arbitral
body, commission,
board,
bureau,
ministry,
agency
or instrumentality,
domestic or
foreign,
(ii) any subdivision
or authority
of any of
the above, (iii)
any quasi-governmental
or private body
exercising any
regulatory,
expropriation or
taxing
authority
under or
for the account
of any
of the
foregoing
or (iv)
any stock
exchange.

 

“IFRS”
means
generally
accepted accounting
principles
as set out
in the
Canadian Institute
of Chartered
Accountants
Handbook
– Accounting
for an
entity that
prepares
its financial
statements
in accordance
with International
Financial
Reporting Standards,
at the relevant
time, applied
on a consistent
basis.

 

“Indemnified
Persons”
has the
meaning
specified
in Section
8.7(1).

 

“Interim
Order”
means
the interim
order of
the Court
pursuant
to Section
291 of
the BCBCA,
in a
form acceptable
to American
Consolidated
and Starcore,
each acting
reasonably,
providing
for,
among other
things,
the calling
and holding
of the
American
Consolidated
Meeting, as such
order may
be amended,
supplemented or
varied by the Court
with the consent
of American
Consolidated
and Starcore,
each acting reasonably.

 

“Law”
means,
with respect
to any Person,
any and
all applicable
law (statutory,
common or
otherwise),
constitution,
treaty,
convention,
ordinance,
code, rule,
regulation,
order,
injunction,
judgment,
decree,
ruling
or other
similar requirement,
whether domestic
or foreign,
enacted,
adopted,
promulgated or
applied by a Governmental
Entity that
is binding
upon or
applicable to such
Person
or its business,
undertaking,
property or
securities, and
to the extent
that they
have the force
of law, policies,
guidelines,
notices and
protocols
of any Governmental
Entity,
as amended.

    	 

    	 

    

 

 

“Locked-up
Shareholders”
means
Robert
Eadie
and all
of the
directors
and officers
of American
Consolidated.

 

“Matching
Period”
has the
meaning
specified
in Section
5.4(1)(e).

 

“Material
Adverse
Effect”
when used
in connection
with an
entity means
any change,
event, occurrence,
effect,
state of
facts or
circumstance
that, either
individually
or in the aggregate,
is or could reasonably
be expected to be material
and adverse
to the
business,
financial
condition,
or results
of operations
of a Party
and its Subsidiaries
taken as a whole;
other than
changes,
events, occurrences,
statements of
facts, effects,
or circumstances
that arise
from or in
connection
with:

 

		(a)	general
political,
economic,
financial,
currency exchange,
securities,
capital
or credit
market conditions
in Canada,
the United
States or
Mexico;

 

		(b)	any
act of
terrorism,
war (whether
or not
declared),
armed hostilities,
riots, insurrection,
civil
disorder,
military
conflicts
or other
armed conflict,
in each
case, whether
occurring
within or
outside
of Canada,
the
United
States
or Mexico;

 

		(c)	the announcement
of this
Agreement,
including
any actions
of competitors,
or any
loss or
threatened
loss of,
or adverse
change or
threatened
adverse change
in the
relationship
of a
Party
with any
Governmental
Entity or
any
of its employees,
executives,
financing sources,
distributors
or suppliers
arising as a consequence
of the same;

 

		(d)	any
change
or proposed
change
in Law
or GAAP
or accounting
rules or
the interpretation
thereof
applicable
to the
industries
or markets
in which
a Party
or any
of its subsidiaries
operate;

 

		(e)	any action
taken by
a Party
in accordance
with this
Agreement
or with
the prior
written consent
of the
other
Party;

 

		(f)	any change
affecting
the industries
or markets
in which
a Party
or any
of its Subsidiaries
operate;
and

 

		(g)	the termination
of any
option,
earn-in
or joint
venture
agreement
to which
a Party
is a signatory,

 

provided,
however,
that
with respect
to clauses
(a), (b),
(d)
and
(f),
such matters
do not
have a
materially
disproportionate
effect on
a Party
and its
subsidiaries
as a whole,
relative to
companies
of similar
size operating
in the
industries
or markets
in which
a Party
or any
of its
subsidiaries
operate,
and
provided
further,
however,
that references
in certain sections
of this
Agreement
to dollars
amounts
are not intended
to be, and
shall
be deemed
not to
be, illustrative
or interpretative
for the
purpose of
determining
whether
a “Material Adverse
Effect” has
occurred.

    	 

    	 

    

 

 

“Material
Contract”
means
any Contract
that is
material
to the
business,
operations
or prospects
of a
Party
and its
Subsidiaries
taken
as a whole.

 

“Material
Information”
has the
meaning
specified
in Policy
3.3 (Timely
Disclosure)
of the
TSX
Venture
Exchange
Corporate Finance
Manual.

 

“Misrepresentation”
means
an untrue
statement
of a
material
fact or
an omission
to state a material
fact required
or necessary
to make
the statements
contained
therein not
misleading
in light
of the
circumstances
in which
they are
made.

 

“officer”
has the
meaning
specified
in the
Securities
Act
(British
Columbia).

 

“Ordinary
Course”
means,
with respect
to an action,
that such
action is
consistent
with the
past practices
of a Party
and is
taken
in the
ordinary
course
of the
normal
day-to-day
operations
of the
business
of that
Party.

 

“Outside
Date” means
December
31, 2014 or
such later
date as
may be
agreed to
in writing
by the
Parties.

 

“Parties”
means
the Starcore
and American
Consolidated
and “Party”
means any one
of them.

 

“Permitted
Liens”
means,
in respect
of American
Consolidated
or any
of its
Subsidiaries,
any one
or more
of the
following:

 

		(a)	statutory
liens for
Taxes
not yet
due or
payable
or which
American
Consolidated
or its
Subsidiaries
owing
such Taxes
is contesting
in good
faith but
only for
so long
as such
contestation
effectively
postpones
enforcement
of any such
liens for
Taxes,
and, in
each case,
if adequate
reserves
with respect thereto
are maintained
in the appropriate
financial
statements;

 

		(b)	statutory
 liens 
incurred 
or  deposits
 made
 in 
the  ordinary
 course 
of  the business
of American
Consolidated
and its
Subsidiaries
in connection
with workers’
compensation,
employment insurance
and similar legislation,
but only to
the extent that
each such
statutory lien
or deposit
relates to amounts
not yet
due;

 

		(c)	security given
by American
Consolidated
or any
of its Subsidiaries
to a public
utility
or any
Governmental
Entity when
required
in the
 ordinary
course of
business
of American
Consolidated
and its Subsidiaries;

 

		(d)	undetermined
or inchoate
construction,
mechanics
or repair
or storage
liens arising
in the
ordinary
course
of business
of American
Consolidated
and its Subsidiaries,
with respect
to amounts
which
are not
yet due
and a
claim for which
has not
been filed
or registered
pursuant
to applicable
Law or
of which notice
in writing
has not
been given
to American
Consolidated
or its Subsidiaries;

    	 

    	 

    

 

 

		(e)	easements,
including
rights
of way
for, or
reservations
or rights
of others
relating to,
sewers,
water lines,
gas lines,
pipelines,
electric
lines, telegraph
and telephone
lines and
other similar
services
and any
registered
restrictions
or covenants
that run
with the
land,
provided
that there
has been compliance
with the material
provisions
thereof and that
they do not
materially detract
from the ability
to use any leased properties
and would not
reasonably
be expected to materially
and adversely affect
the ability of American
Consolidated
and its Subsidiaries
to carry on their
business as it has been
carried on
in the
past;

 

		(f)	zoning
by-laws,
ordinances
or other
restrictions
as to
the use
of real
property,
provided
that they
do not
materially
detract
from
the ability 
to  use 
any leased properties
and would
not reasonably
be expected
to materially
and adversely
affect the ability
of American
Consolidated
and its Subsidiaries
to carry on their
business as
it has been carried
on in the
past;

 

		(g)	such other defects or irregularities of title as do not materially and adversely detract from the value 

                                                                                or interfere with the use of the properties or assets subject thereto or affected thereby;

 

		(h)	the right
reserved
to or
vested in any
Governmental
Entity by
any statutory
provision
or by
the terms
of any
lease, licence,
franchise,
grant
or permit
of American
Consolidated
or any of
its Subsidiaries,
to terminate
any such lease, licence,
franchise,
grant or permit,
or to require
annual or other
payments
as a condition
of their
continuance;
and

 

		(i)	encumbrances
listed and
described
in section
1.1 of
the American
Consolidated
Disclosure
Letter.

 

“Person”
includes
any
individual,
partnership,
association,
body corporate,
organization,
trust, estate,
trustee, executor,
administrator,
legal
representative,
government
(including
Governmental
Entity),
syndicate
or other
entity, whether
or not having
legal
status.

 

“Plan
of Arrangement”
means
the plan
of arrangement,
substantially
in the
form
of Schedule
A, subject
to any
amendments
or variations
to such
plan
made
in accordance
with Section
8.1 or made
at the direction
of the
Court in
the Final
Order with
the prior
written consent
of American
Consolidated
and
Starcore,
each acting
reasonably.

 

“Registrar”
means
the Registrar
of Companies
appointed pursuant
to Section
400 of
the BCBCA;

 

“Regulatory
Approval”
means, any
consent,
waiver,
permit,
exemption,
review, order,
decision
or approval
of, or
any registration
and filing
with, any
Governmental
Entity,
or the
expiry,
waiver or
termination
of any
waiting
period
imposed by
Law

    	 

    	 

    

 

 

or
a Governmental
Entity,
in each
case in
connection
with, or
required
to lawfully
complete, the
Arrangement.

 

“Representative”
has the
meaning
specified
in Section
5.1(1). “Required
Approval”
has the
meaning
specified
in Section
2.2(iii).

“Securities
Authority”
means the
British
Columbia
Securities
Commission
and any other
applicable
securities
commissions
or securities
regulatory
authority
of a province
or territory
of Canada.

 

“Securities
Laws”
means
the Securities
Act
(British
Columbia)
and any other
applicable
provincial
securities
Laws,
together
with the
rules and
regulations
published under
such laws.

 

“Starcore”
means
Starcore
International
Mines Ltd.,
a corporation
 incorporated
under
the laws of
British
Columbia.

 

“Starcore
Disclosure
Letter”
means
the disclosure
letter dated
the date
of this
Agreement
and delivered
by Starcore
to American
Consolidated
with  this
Agreement.

 

“Starcore
Filings”
means
all documents
publicly
filed under
the profile
of Starcore
on the System
for Electronic
Document
Analysis
Retrieval (SEDAR)
since August
19, 2012.

 

“Starcore
Meeting”
means
the special
meeting
of Starcore
Shareholders,
including
any adjournment
or postponement
thereof,
that may
be required
for the
purpose of
obtaining
Starcore
Shareholder
Approval.

 

“Starcore
Shareholder
Approval”,
if required
by the TSX,
means the
approval by the
Starcore
Shareholders
of the
issuance
of the
Consideration
(a)
at the Starcore
Meeting by
ordinary
resolution
or (b)
if permitted
by the TSX,
by written
resolution
of at least 50% of
the Starcore
Shares.

 

“Starcore
Shareholders”
means the
registered
or beneficial
holders
of the
Starcore
Shares,
as the
context
requires.

 

“Starcore
Shares”
means
the common
shares
in the
capital
of Starcore
as presently
constituted.

 

“Subsidiary”
means,
with respect
to a specified
body corporate
is any body
corporate of
which the
specified
body corporate
is entitled
to elect a
majority
of the board
of directors
thereof
(whether
or not
shares
of any other
class shall
or might
be entitled to vote upon
the happening
of any event
or contingency)
are at the time
owned directly
or indirectly
by such body corporate
and shall include
any body

    	 

    	 

    

 

 

corporate,
partnership,
joint
venture
or other
entity
over which
it exercises
direction
or control
or which
is in
a like
relation
to a subsidiary;

 

“Superior
Proposal”
means any
unsolicited
bona
fide written
Acquisition
Proposal
from a
Person
to acquire
not less
than
all of
the outstanding
American
Consolidated
Shares or
all or substantially
all of the assets
of American
Consolidated
on a consolidated
basis, that
complies with
Securities Laws
and did
not result
from or involve
a breach of Article
5 and: (a)
is reasonably capable
of being completed
without undue
delay, taking
into account
all financial,
legal, regulatory
and other
aspects of such
proposal and the Person
making such
proposal; (b) if any
consideration
is cash, is not subject
to any financing
contingency
and in respect
of which
adequate
arrangements
have been made
to ensure
that the required
funds will
be available to effect payment
in full for
all of the American
Consolidated
Shares or
assets, as the case may be;
(c) if any consideration
is in shares or
other securities,
the value of
such
shares of
securities shall
be the 20 day
volume
weighted
average trading
price
of such shares
or securities
on the
stock exchange
upon
which the greatest
volume of
trading in such
shares or
securities occurs;
and (d)
that the
American
Consolidated
Board
determines, in
its good
faith judgment,
after receiving
the advice
of its
outside
legal and
financial
advisors
and after taking
into account
all the terms and
conditions
of the Acquisition
Proposal,
including
all legal,
financial,
regulatory
and other aspects of
such Acquisition
Proposal and the
party making
such Acquisition
Proposal, would,
if consummated
in accordance
with its terms,
but without
assuming away the risk
of non-completion,
result in
a transaction
which is more
favourable, from
a financial
point
of view,
to the American
Consolidated
Shareholders
than the Arrangement
(including
any amendments
to the terms
and conditions
of the Arrangement
proposed by American
Consolidated
pursuant
to Section 5.4(2)).

 

“Superior
Proposal
Notice”
has the
meaning
specified in
Section
5.4(1)(c).

 

“Tax
Act” means
the Income
Tax
Act
(Canada)
and
the regulations
made
thereunder
as now
in effect
and as
they may
be promulgated
or amended
from time
to time.

 

“Tax
Returns”
means
any and
all returns,
reports,
declarations,
elections,
notices, forms,
designations,
filings,
and statements
(including
estimated
tax returns
and reports,
withholding
tax returns
and reports,
and
information
returns
and reports)
filed or required
to be filed
in respect
of Taxes.

 

“Taxes”
means
(i) any
and
all taxes,
duties,
fees, excises,
premiums,
assessments,
imposts, levies
and other
charges or
assessments
of any
kind
whatsoever
imposed
by any Governmental
Entity,
whether computed
on a separate,
consolidated,
unitary, combined
or other
basis, including
those levied on,
or measured
by, or
described
with respect
to, income,
gross receipts,
profits, gains,
windfalls,
capital,
capital stock,
production, recapture,
transfer, land
transfer,
license, gift, occupation,
wealth, environment,
net worth, indebtedness,
surplus, sales, goods
and services, harmonized
sales, use, value-added,
excise, special
assessment, stamp,
withholding,
business, franchising,
real or
personal
property,
health, employee
health, payroll,

    	 

    	 

    

 

 

workers’
compensation,
employment
or unemployment,
severance,
social
services, social
security,
education,
utility,
surtaxes,
customs,
import
or export,
and including
all license
and
registration
fees and
all employment
insurance,
health
insurance
and government
pension
plan
premiums
or contributions;
(ii) all
interest,
penalties,
fines, additions
to tax or
other
additional
amounts
imposed
by any
Governmental
Entity on
or in
respect
of amounts
of the
type described
in clause
(i)
above
or this
clause (ii);

(iii)
any liability
for the
payment
of any
amounts
of the
type described
in clauses
(i)

or
(ii) as
a result
of being
a member
of an
affiliated,
consolidated,
combined
or unitary
group for
any period;
and (iv)
any liability
for
the payment
of any
amounts
of the
type described
in clauses
(i) or
(ii) as
a result
of any
express or
implied obligation
to indemnify
any other
Person
or as
a result
of being
a transferee
or successor
in interest
to any party.

 

“Termination
Fee” has the
meaning
specified in
Section
8.2. “Termination
Fee Event”
has the
meaning
specified
in Section
8.2. “TSXV”
means
the TSX
Venture
Exchange.

“TSX”
means the
Toronto
Stock
Exchange.

 

“Voting
Agreements”
means the
voting
agreements
dated the
date hereof
and made
between Starcore
and the
Locked-up
Shareholders.

 

Section
1.2Certain Rules
of Interpretation.

In this
Agreement,
unless otherwise
specified:

 

		(1)	Headings,
etc. The
provision
of a
Table
of Contents,
the division
of this
Agreement
into Articles
and Sections
and the
insertion
of headings
are for
convenient
reference
only and
do not affect
the construction
or interpretation
of this Agreement.

 

(2)         
Currency.
All references
to dollars
or to
$ are
references
to Canadian
dollars.

 

		(3)	Gender
and Number.
Any reference
to gender
includes
all genders.
Words importing
the
singular
number
only
include
the plural
and vice
versa.

 

		(4)	Certain
Phrases
and References,
etc. The
words
“including”,
“includes”
and “include”
mean
“including
(or
includes
or include)
without
limitation,”
and “the
aggregate
of”, “the
total
of”, “the
sum of”,
or a
phrase
of similar
meaning
means “the
aggregate
(or total
or sum),
without
duplication,
of.” Unless stated otherwise,
“Article”, “Section”,
and “Schedule”
followed by
a number or
letter mean and
refer to the specified
Article or
Section of
or Schedule
to this Agreement.
The term “Agreement”
and any reference
in this Agreement
to this Agreement or
any other agreement
or document
includes,
and is a
reference
to, this Agreement
or such
other agreement
or document
as it may have been, or
may from time
to time be amended,
restated,
replaced,
supplemented or
novated and includes
all schedules
to it.

    	 

    	 

    

 

 

		(5)	Capitalized
Terms.
All capitalized
terms used
in any Schedule,
in the
American
Consolidated
Disclosure
Letter  or
 in  the
 Starcore
 Disclosure
 Letter 
have  the
meanings
ascribed
to them
in this
Agreement.

 

		(6)	Knowledge.
Where 
any 
representation
 or 
warranty 
is  expressly 
qualified  by reference
to the
knowledge
of American
Consolidated
or Starcore,
it shall
be deemed
to refer to
the actual
knowledge,
after making
reasonable
inquiries
regarding
the relevant
matter, of
the senior
officers
of American
Consolidated
or Starcore,
as the case may be.

 

		(7)	Accounting
Terms.
All accounting
terms are
to be interpreted
in accordance
with IFRS
and all determinations
of an
accounting
nature
required
to be made
shall be made
in a manner
consistent
with IFRS.

 

		(8)	Statutes.
Any reference
to a  statute
 refers
 to 
such  statute
 and  all 
rules  and
regulations
made
under
it, as it
or they
may have
been or
may from
time to
time be
amended
or re-enacted,
unless stated otherwise.

 

		(9)	Computation
of Time.
A period
of time
is to be
computed as
beginning
on the
day following
the event
that began
the period
and ending
at 4:30 p.m.
on the
last day
of the period,
if the last day
of the period
is a Business
Day, or
at 4:30 p.m.
on the next Business
Day if the last day of
the period
is not a Business
Day.

 

		(10)	Time References.
References
to time
are to
local time,
Vancouver,
British
Columbia.

 

		(11)	Subsidiaries.
To the
extent any
warranties,
covenants
or agreements
relate,
directly
or indirectly,
to a Subsidiary
of American
Consolidated,
each such
provision
shall be
construed
as a covenant
by American
Consolidated
to cause
(to the
fullest
extent to which
it is
legally
capable)
such Subsidiary
to perform
the required
action.

 

Section
1.3Schedules.

		(1)	The
schedules
attached to
this Agreement
form an
integral
part
of this
Agreement
for all
purposes of
it.

 

		(2)	The
American
Consolidated
Disclosure
Letter and
the Starcore
Disclosure
Letter and
all information
contained
in them
is confidential
information
and
may not
be disclosed
unless
(i) it
is required
to be disclosed
pursuant
to Law,
unless
such Law
permits the
Parties to refrain
from disclosing
the information
for confidentiality
or other
purposes, or
(ii)
a Party
needs
to disclose
it in order
to enforce
or exercise
its rights
under
this Agreement.

    	 

    	 

    

 

 

ARTICLE
2

THE
ARRANGEMENT

 

Section
2.1Arrangement

 

American
Consolidated
and Starcore
agree that
the Arrangement
will be implemented
in accordance
with and
subject
to the
terms and
conditions
of this
Agreement
and the Plan
of Arrangement.
Without
limitation
to the foregoing,
at the Effective
Time,
the Plan of
Arrangement
shall become
effective
with the
result
that among
other things,
Starcore
will become
the holder
of all
the outstanding
American
Consolidated
Shares.

 

Section
2.2Interim
Order

 

As
soon
as reasonably
practicable
following
the execution
of this
Agreement,
but in any
event within
10 days
of execution
of this
Agreement,
American
Consolidated
shall apply to the Court,
pursuant to Part
9, Division
5 of the BCBCA
and, in cooperation
with Starcore,
prepare,
file and
diligently
pursue
an application
for the
Interim
Order,
which shall
provide,
among other
things:

 

		(i)	for
the class
of persons
to whom
notice
is to be
provided
in respect
of the Arrangement
and the
American
Consolidated
Meeting and
for the
manner
in which such
notice is
to be provided;

 

		(ii)	for
confirmation
of the
record
date for
the American
Consolidated
Meeting referred
to in Section
2.3(1).

 

		(iii)	that the
required
level of
approval (the
“Required
Approval”)
for the Arrangement
Resolution
shall
be two-thirds
of the
votes cast
on the Arrangement
Resolution
by American
Consolidated
Shareholders
present
in person
or represented
by proxy at the American
Consolidated
Meeting, voting
together as a single
class;

 

		(iv)	that the
terms, restrictions
and conditions
of American
Consolidated’s
Constating
Documents,
including
quorum
requirements
 and  all
 other matters,
shall apply
in respect
of the
American
Consolidated
Meeting;

 

		(v)	for
the grant
of the
Dissent Rights
to those
 American
 Consolidated
Shareholders
who are
registered
American
Consolidated
Shareholders;

 

		(vi)	for
the notice
requirements
with respect
to the presentation
of the
application
to the Court
for the
Final Order;

 

		(vii)	that the
American
Consolidated
Meeting may
be adjourned
or postponed
from time
to time
by American
Consolidated
in accordance
with the
terms
of this Agreement
without
the need for
additional
approval of
the Court;

    	 

    	 

    

 

 

		(viii)	that the
record
date for
American
Consolidated
Shareholders
entitled  to notice
of and
to vote
at the
American
Consolidated
Meeting will
not change
in respect
of any
adjournment(s)
of the
American
Consolidated
Meeting;

 

		(ix)	that it
is Starcore’s
intention
to rely
upon the
exemption
from registration
provided
by Section
3(a)(10)
of the
U.S. Securities
Act with
respect
to the issuance
of the
Consideration
(including
the Starcore
Shares issuable
upon exercise
of the American
Consolidated
Warrants)
to be issued
pursuant
to the Arrangement,
based on the Court’s
approval of
the Arrangement;
and

 

		(x)	for
such other
 matters
 as  Starcore
 may 
reasonably
 require,
 subject 
to obtaining
the prior
consent of
American
Consolidated,
such
consent
not to
be unreasonably
withheld
or delayed.

 

Section
2.3The American
Consolidated
Meeting

 

		(1)	Subject
to the
terms of
this
Agreement,
American
Consolidated
shall:

 

		(a)	convene
and conduct
the American
Consolidated
Meeting in
accordance
with the
Interim
Order,
American
Consolidated’s
Constating
Documents
and Law
as soon
as reasonably
practicable,
and in
any event on
or before
November
30, 2014, for the
purpose of
considering
the Arrangement
Resolution
and for
any other
proper purpose
as may
be set out
in the American
Consolidated
Circular
and agreed to
by Starcore,
and not adjourn,
postpone or
cancel (or propose
the adjournment,
postponement
or cancellation
of)
the American
Consolidated
Meeting without
the prior written
consent
of Starcore,
except
in the
case of
an adjournment,
as required
for quorum
purposes, if required
by applicable
Law, or as
required
or permitted
under Section
5.4(5);

 

		(b)	solicit
proxies in
favour of
the approval
of the
Arrangement
Resolution
and against
any resolution
submitted
by any American
Consolidated
Shareholder
that is inconsistent
with the
Arrangement
Resolution
and the completion
of any of
the transactions
contemplated
by this Agreement,
including,
if so requested
and paid
for by
Starcore,
acting reasonably,
using dealer
and proxy solicitation
services
firms
and cooperating
with any Persons
engaged
by Starcore
to solicit proxies
in favour
of the approval
of the Arrangement
Resolution;

 

		(c)	provide
Starcore
with copies
of or
access to
information
regarding
the American
Consolidated
Meeting generated
by any dealer
or proxy
solicitations
services
firm,
as requested
from time
to time
by Starcore;

 

		(d)	permit
Starcore,
on behalf
of the
management
of American
Consolidated,
directly
or through
a soliciting
dealer to
actively solicit
proxies in
favour of
the Arrangement
on  behalf
of management
of American
 Consolidated
in

    	 

    	 

    

 

 

compliance
with Law
and disclose
in the American
Consolidated
Circular
that Starcore
may make
such
solicitations;

 

		(e)	consult
with Starcore
in fixing
the date
of the
American
Consolidated
Meeting,
give notice
to Starcore
of the
American
Consolidated
Meeting and allow
Starcore’s
representatives
and legal counsel
to attend the American
Consolidated
Meeting;

 

		(f)	promptly
advise Starcore,
at such
times as
Starcore
may reasonably
request
and at least
on a
daily basis
on each
of the
last ten (10)
Business
Days
prior
to the date of
the American
Consolidated
Meeting, as to the aggregate
tally of the proxies received
by American
Consolidated
in respect
of the Arrangement
Resolution;

 

		(g)	promptly
advise Starcore
of any communication
from any
American
Consolidated
Shareholder
in opposition
to the Arrangement
and/or
purported exercise
or withdrawal
of Dissent
Rights, if
American
Consolidated
receives any
written notice
of dissent,
and of any written
communications
sent by or
on behalf of
American Consolidated
to any American
Consolidated
Shareholder
exercising
or purporting to exercise
Dissent Rights;

 

		(h)	not
make
any payment
or settlement
offer,
or agree
to any payment
or settlement
prior
to the
Effective
Time
with
respect
to Dissent
Rights
without
the prior
written
consent
of Starcore;
and

 

		(i)	not
change
the record
date for
the American
Consolidated
Shareholders
entitled to
vote at
the American
Consolidated
Meeting in
connection
with any adjournment
or postponement
of the
American
Consolidated
Meeting unless
required
by Law.

 

Section
2.4The American
Consolidated
Circular

 

		(1)	American
Consolidated
shall promptly
prepare
and complete,
in consultation
with Starcore,
the American
Consolidated
Circular
together
with any
other documents
required
by Law
in connection
with the
American
Consolidated
Meeting and
the Arrangement,
and American
Consolidated
shall,
promptly after
obtaining
the Interim Order,
(and in all
cases no
later than five
(5) Business
Days
thereafter)
cause the American
Consolidated
Circular
and such other
documents to be filed
and sent to each American
Consolidated
Shareholder
and other
Person
as required
by the Interim Order and
Law, in
each case so as to permit
the American
Consolidated
Meeting to be held by the date
specified in Section
2.3(1).

 

		(2)	American
 Consolidated
 shall 
ensure 
that  the
 American
 Consolidated
 Circular
complies in
material
respects
with the
Law, does
not contain
any Misrepresentation
relating to
American
Consolidated
and provides
the American
Consolidated
Shareholders
with sufficient
information
to permit them to form
a reasoned

    	 

    	 

    

 

 

judgement
concerning
the
matters
to be placed
before
the American
Consolidated
Meeting.
Without
limiting
the
generality
of the
foregoing,
the
American
Consolidated
Circular
must
include:
(i) a
statement
that
the
American
Consolidated
Board has
unanimously
determined
that
the Arrangement
Resolution
is in
the best interests
of American
Consolidated
and recommends
that American
Consolidated
Shareholders
vote in favour
of the Arrangement
Resolution
(the
“American Consolidated
Board Recommendation”),
and (ii)
a statement
that the
Locked-Up
Shareholders
have entered
into a Voting
Agreement
and will vote
their
American
Consolidated
Shares in favour
of the
Arrangement
Resolution
and against
any resolution
submitted by any
American
Consolidated
Shareholder
that is inconsistent
with the
Arrangement.

 

		(3)	American
Consolidated
shall give
Starcore
and its
legal counsel
a reasonable
opportunity
to review
and comment
on drafts
of the
American
Consolidated
Circular
and other
related
documents,
and shall
give reasonable
consideration
to any comments
made
by Starcore
and its counsel,
and agrees
that all information
relating
solely to
Starcore
included
in the
American
Consolidated
Circular
must be
in a form
and content satisfactory
to Starcore,
acting reasonably.

 

		(4)	Starcore
shall provide
all necessary
information
concerning
Starcore
and its
affiliates that
is required
by Law
to be included
in the
American
Consolidated
Circular
or amendments
or supplements
or other
related documents
to American
Consolidated
in writing,
use best efforts
to obtain any necessary
consents from
any of its
auditors and
any other advisors
to the use
of any financial,
technical
or other
expert information
required
to be included in the American
Consolidated
Circular
and to the identification
in the American
Consolidated
Circular
of each such
advisor
and shall ensure
that such
information
does not
contain
any Misrepresentation
concerning
Starcore,
its Subsidiaries
and the Starcore
Shares.

 

		(5)	Each
Party 
shall 
promptly  notify
 the 
other 
Party 
if  it  becomes
 aware
 that  the
American
Consolidated
Circular
contains
a Misrepresentation,
or otherwise
requires
an amendment
or supplement.
The Parties
shall co-operate
in the preparation
of any
such  amendment
or supplement
as required
or appropriate,
and  American
Consolidated
shall promptly
mail, file or
otherwise publicly
disseminate
any such amendment
or  supplement
to the American
Consolidated
Shareholders
and, if required
by the Court
or by Law, file the
same with the Securities
Authorities
or any other
Governmental
Entity
as required.

 

Section
2.5Final 
Order

 

(1)
American
Consolidated
shall take
all steps
necessary
or desirable
to submit
the Arrangement
to the Court
and diligently
pursue an application
for the
Final Order pursuant
to Part 9, Division
5 of the BCBCA,
as soon as reasonably
practicable,
but in any event
not later than
three (3) Business
Days after the
Arrangement
Resolution
is passed at the American
Consolidated
Meeting as provided
for in the
Interim Order.

    	 

    	 

    

 

 

Section
2.6Court Proceedings

 

		(1)	In connection
with all
Court
proceedings
relating
to obtaining
the Interim
Order and the
Final Order,
American
Consolidated
shall:

 

		(a)	diligently
pursue,
and cooperate
with Starcore
in diligently
pursuing,
the Interim
Order
and
the
Final
Order;

 

		(b)	provide
legal counsel
to Starcore
with a
reasonable
opportunity
to review
and comment
upon
drafts
of all
material
to be filed
with the
Court
in connection
with the
Arrangement,
and
give reasonable
consideration
to all such
comments;

 

		(c)	provide
copies of
any notice
of appearance,
evidence
or other
documents served
on American
Consolidated
or its
legal counsel
in respect
of the
application
for the Interim
Order or the Final
Order or
any appeal from
them, and any notice,
written or
oral, indicating
the intention of
any Person
to appeal, or
oppose the
granting
of, the Interim
Order or
the Final
Order;

 

		(d)	ensure
that all material
filed with
the  Court
 in  connection
 with 
the Arrangement
is consistent
with this
Agreement
and the
Plan of
Arrangement;

 

		(e)	not
file any
material
with the
Court in
connection
with the
Arrangement
or serve
any such
material,
or agree
to modify
or amend
any material
so filed or
served,
except
as contemplated
by this
Agreement
or with
Starcore’s
prior written
consent, such
consent not
to be unreasonably
withheld,
conditioned
or delayed,
provided Starcore
is not required
to agree or
consent to any
increase in
or variation
in the form
of the Consideration
or other modification
or amendment
to such
filed or
served
materials
that expands
or increases
Starcore’s
obligations,
or diminishes
or limits
Starcore’s
rights,
set forth in
any such
filed or
served materials
or under
this Agreement;

 

		(f)	oppose
any proposal
from
any Person
that the
Final
Order contain
any provision
inconsistent
with this
Agreement,
and if
required
by the
terms of
the Final
Order or
by Law
to return
to Court with
respect
to the Final Order
do so only after notice
to, and in consultation
and cooperation
with, Starcore;
and

 

		(g)	not
object
to legal
counsel
to Starcore
making
such submissions
on the
heading
of the
motion
for the
Interim
Order
and
the application
for the
Final
Order as
such counsel
considers
appropriate.

 

Section
2.7No Fractional
Shares

 

Starcore
will not
be required
to issue
or deliver
fractions
of Consideration
shares or
to distribute
share certificates
which
evidence
fractional
Consideration
shares.

    	 

    	 

    

 

 

Section
2.8Arrangement
Filings
and Effective
Date

 

		(1)	American
Consolidated
shall amend
the Plan
of Arrangement
from time
to time
at the reasonable
request
of Starcore,
provided
that no such
amendment
is inconsistent
with the
Interim
Order or
the Final
Order or
is prejudicial
to the
American
Consolidated
Shareholders.

 

		(2)	American
Consolidated
shall file
any Arrangement
Filings
with the
Registrar
as soon
as practicable
after the
satisfaction
or, where
not prohibited,
the waiver by
the applicable
Party
or Parties
in whose
favour the
condition
is, of
the conditions
set out in Article
6 (excluding
conditions
that, by their terms,
cannot be satisfied
until the Effective
Date, but subject
to the satisfaction
or, where not
prohibited,
the waiver by the applicable
Party or
Parties in whose
favour the condition
is, of those
conditions
as of the Effective
Date),
unless another
time or date
is agreed to in writing
by the Parties.
Starcore
will file
a certified
copy of
the Closing
Certificate
in its record
book and complete
the Arrangement
Filings
if required.

 

		(3)	The
closing
of the
Arrangement
will take
place at
the offices
of McMillan
LLP
in Vancouver,
British
Columbia,
or at
such other
location
as may
be agreed
upon
by the Parties.

 

Section
2.9Announcement
and Shareholder
Communications

		(1)	Starcore
and American
Consolidated
shall
each publicly
announce
the transactions
contemplated
hereby promptly
following
the execution
of this
Agreement,
the text
and timing
of each Party’s
announcement
to be approved by the
other
Party in
advance, each
acting reasonably.
Starcore
and American
Consolidated
agree to cooperate
in the preparation
of presentations,
if any, to
the American
Consolidated
Shareholders
or the
Starcore
Shareholders
regarding
the transactions
contemplated by this
Agreement
and no Party
shall:

 

		(a)	issue
any press 
release 
or  otherwise
 make
 public
 announcements
 with respect
to this Agreement
or the
Plan of
Arrangement
without
the consent
of the 
other 
Party 
(which 
consent shall
 not be unreasonably
withheld or
delayed);
or

 

		(b)	make
any filing
with any
Governmental
Entity with
respect
thereto
without
prior
consultation
with the
other
Party;

 

provided,
however,
that
the foregoing
shall be
subject
to each
Party’s
overriding
obligation
to make
any disclosure
or filing
under
Law or
stock exchange
rules, and
the Party
making
such disclosure
shall
use all
commercially
reasonable
efforts
to give prior
written
notice to the
other Party
and reasonable
opportunity
to review
or comment
on the
disclosure
or filing,
and if
such prior
notice
is not possible,
to give such notice
immediately
following
the making
of such disclosure
or filing.

 

		(2)	To
the extent
possible,
American
Consolidated
shall
provide
prior
notice
to Starcore
of any
public
disclosure
that it proposes
to make
regarding
Material Information,

    	 

    	 

    

 

 

together
with a
draft copy
of such
disclosure.
Starcore
and its legal
counsel
shall be
given a
reasonable
opportunity
to review
and comment
 on 
such 
Material Information
prior
to such
Material
Information
being disseminated
publicly
or filed
with any Governmental
Entity, and reasonable
consideration
shall be given
to any comments made
by Starcore
and its counsel.

 

Section
2.10List of
Shareholders

At
the request
of Starcore
from time
to time,
American
Consolidated
will provide
Starcore
with a
list (in
both
written
and electronic
form) of
(i) the
American
Consolidated
Shareholders,
together with
their addresses
and respective
holdings
of American
Consolidated
Shares,
(ii) the names,
addresses and holdings
of all Persons
having rights
issued by American
Consolidated
to acquire
American
Consolidated
Shares (including
holders
of American
Consolidated
Options and
American
Consolidated
Warrants),
and (iii) participants
and book-based
nominee registrants
such as
CDS & Co., CEDE
& Co. and
DTC, and non-objecting
beneficial owners
of American
Consolidated
Shares, together
with their
addresses and respective
holdings
of American
Consolidated
Shares. American
Consolidated
shall from
time to time
require
that its registrar
and transfer
agent furnish
Starcore
with such additional
information,
including
updated or additional
lists of American
Consolidated
Shareholders,
and lists of securities
positions
and other assistance
as Starcore
may reasonably
request
in order to be
able to communicate
with respect
to the Arrangement
with the American
Consolidated
Shareholders
and with such
other Persons
as are entitled
to vote on the
Arrangement
Resolution.

 

 

ARTICLE
3 REPRESENTATIONS
AND WARRANTIES

 

Section
3.1Representations
and Warranties
of American
Consolidated

		(1)	Except
as set forth
in the American
Consolidated
Disclosure
Letter,
or as
disclosed
in the American
Consolidated
Filings,
American
Consolidated
represents
and
warrants
to Starcore
as set forth
in Schedule
C and acknowledges
and agrees
that Starcore
is relying upon
such representations
and warranties
in connection
with the
entering into of
this Agreement:

 

		(2)	The
representations
and warranties
of American
Consolidated
contained
in this
Agreement
shall not
survive
the completion
of the
Arrangement
and shall
expire and
be terminated
on the
earlier of
the Effective
Time
and the
date on
which this
Agreement
is terminated
in accordance
with its
terms.

 

Section
3.2Representations
and Warranties
of Starcore

		(1)	Except
as set forth
in the
Starcore
Disclosure
Letter,
or as
disclosed
in the
Starcore
Filings,
Starcore
represents
and warrants
to American
Consolidated
as set
forth in
Schedule
D and
acknowledges
and agrees
that
American
Consolidated
is relying
upon the representations
and warranties in
connection
with the entering
into of this
Agreement.

    	 

    	 

    

 

 

		(2)	The
representations
and warranties
of Starcore
contained in
this Agreement
shall not
survive the
completion
of the
Arrangement
and shall
expire
and be terminated
on the earlier
of the
Effective
Time
and the date
on which
this Agreement
is terminated in accordance
with its terms.

 

 

ARTICLE
4 COVENANTS

 

Section
4.1Covenants
of American
Consolidated
Regarding
the Conduct
of Business
until the
Effective
Time.

		(1)	Until
the earlier
of the
Effective
Time
and the
time
that this
Agreement
is terminated in
accordance
with its
terms,
American
Consolidated
shall conduct
business
only
in the Ordinary
Course.

 

		(2)	Without
limiting
the generality
of Section
4.1(1),
and without
derogating
from the
obligations
of American
Consolidated
in Section
6.2, American
Consolidated
shall use
reasonable
commercial
efforts
to preserve
intact the
current business
organization
of American
Consolidated,
keep available
the services
of the present
employees and agents
of American
Consolidated
and maintain
good relations
with, and the
goodwill
of, suppliers,
customers,
landlords,
creditors,
distributors
and all
other Persons
having business
relationships
with American
Consolidated
and except for
transactions
involving
American
Consolidated
and one
or more
of its
wholly-
owned Subsidiaries
or between wholly–owned
Subsidiaries
of American
Consolidated
or with the
prior written
consent of
Starcore,
American
Consolidated
shall not, and shall
not permit
any of its Subsidiaries
to, directly
or indirectly:

 

		(a)	amend
its Constating
Documents
or, in
the case
of any
Subsidiary
which
is not a
corporation,
its similar
organizational
documents;

 

		(b)	split,
combine
or reclassify
any shares
of American
Consolidated
or declare,
set aside
or pay
any dividend
or other
distribution
(whether
in cash,
stock or
property
or any
combination
thereof);

 

		(c)	redeem,
repurchase,
or otherwise
acquire
or offer
to redeem,
repurchase
or otherwise
acquire
any shares
of capital
stock of
American
Consolidated
or any of
its Subsidiaries;

 

		(d)	issue,
deliver
or sell,
or authorize
the issuance,
delivery
or sale
of any
shares
of capital
stock,
any options,
warrants or
similar
rights
exercisable
or exchangeable
for or
convertible
into such
capital
stock,
of American
Consolidated
or any of its
Subsidiaries,
except for
the issuance of
American
Consolidated
Shares issuable
upon the exercise
of the currently
outstanding
American
Consolidated
Warrants;

    	 

    	 

    

 

 

		(e)	acquire
(by merger,
consolidation,
acquisition
of stock
or assets
or otherwise),
directly
or indirectly,
in one
transaction
or in
a series
of related
transactions,
any assets,
securities,
properties,
interests
or businesses;

 

		(f)	prepay
any indebtedness
before its
scheduled
maturity
or increase,
create, incur,
assume
or otherwise
become
liable
for any
indebtedness
for borrowed
money or
guarantees
thereof;

 

		(g)	make
any loan
or advance
to, or
any capital
contribution
or investment
in, or
assume, guarantee
or otherwise
become liable
with respect
to the liabilities
or obligations
of, any
Person;

 

		(h)	enter into
any interest
rate, currency,
equity
or commodity
swaps,
hedges, derivatives,
forward
sales contracts
or similar
financial
instruments;

 

		(i)	make
any bonus
or profit
sharing
distribution
or similar
payment
of any
kind;

 

		(j)	except
as required
by IFRS
or any
other
accepted
accounting
principles
to which
American
Consolidated
is subject
to or
by Law,
make
any change
in American
Consolidated’s
methods of
accounting;

 

		(k)	grant
any
general
increase
in the
rate of
wages,
salaries, bonuses
or other
remuneration
of any
employees;

 

		(l)	(i)
create, enter
into or
increase any
severance,
change
of control
or termination
pay to
(or
amend
any existing
arrangement
with) any
American
Consolidated
Employee,
director
or executive
officer
of American
Consolidated
or any of its
Subsidiaries;
(ii) change
the benefits
payable
under any existing
severance
or termination
pay policies
with any American
Consolidated
Employee,
director
or executive
officer
of American
Consolidated
or any of its Subsidiaries;
(iii) change
the benefits payable
under any employment
agreements
with any
American
Consolidated
Employee,
director
or executive
officer of
American Consolidated
or any of
its Subsidiaries;
(iv) enter
into any employment,
deferred compensation
or other
similar
agreement
(or
amend
any such
existing
agreement,
except
as necessary to comply
with Law
or with respect
to existing provisions
of such plans)
with any
director
or executive
officer
of American
Consolidated;
or (v) change
compensation,
bonus
levels or other benefits
payable
to any director
or executive
officer of
American
Consolidated
or to any American
Consolidated
Employee;

 

		(m)	cancel,
waive, release,
assign,
settle or
compromise
any material
claims or
rights;

 

		(n)	compromise
or settle
any litigation,
proceeding
or governmental
investigation;

    	 

    	 

    

 

 

		(o)	except
in the
Ordinary
Course, amend
or modify
in any
material
respect
or terminate
or waive
any right
under
any Material
Contract
or enter
into any contract
or agreement
that would
be a Material
Contract
if in
effect on
the date hereof;

 

		(p)	except
as contemplated
in Section
4.9 amend,
modify or
terminate
any insurance
policy
of American
Consolidated
or any
Subsidiary
in effect
on the date
of this
Agreement;

 

		(q)	abandon
or fail
to diligently
pursue
any application
for any
material
licenses,
permits,
authorizations
or registrations;

 

		(r)	issue,
sell, dispose
of or
grant any
interest in,
encumber
or pledge
or create any lien
or agree
to issue,
sell, dispose
of or grant
an interest
in, encumber
or pledge
or create
any lien
on any
shares or
rights
convertible
into shares
of any Subsidiary
or affiliate;
or

 

		(s)	authorize,
agree, resolve
or otherwise
commit,
whether
or not
in writing,
to do any
of the
foregoing.

 

Section
4.2Covenants
of American
Consolidated
Regarding
the Arrangement.

		(1)	American
Consolidated
shall use
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 
under 
Law  to
consummate the
Arrangement
as soon 
as  practicable,
including:

 

		(a)	using
commercially
reasonable
efforts
to obtain
and maintain
all third
party or
other
consents,
waivers,
permits,
exemptions,
orders,
approvals, agreements,
amendments
or confirmations
that are
required
(A)
in connection
with the
Arrangement
or (B)
required
in order
to maintain
the Material
Contracts
in full
force and
effect following
completion
of the
Arrangement,
in each case,
on terms that
are satisfactory
to Starcore;
and

 

		(b)	using
commercially
reasonable
efforts to,
on prior
written approval
of Starcore,
oppose, lift
or rescind
any injunction,
restraining
or other
order, decree
or ruling
seeking to restrain,
enjoin
or otherwise
prohibit or
adversely affect
the consummation
of the
Arrangement
and defend,
or cause
to be defended,
any proceedings
to which it is a party
or brought against
it or its directors
or officers
challenging
the Arrangement
or this Agreement;

 

		(c)	carrying
out
the
terms of
the Interim
Order
and the
Final
Order
applicable
to it and
complying
promptly
with
all requirements
imposed
by Law
on it
or its Subsidiaries
with respect
to this
Agreement
or the
Arrangement;

 

		(d)	not
taking
any action,
or refraining
from taking
any action,
or permitting
any action to
be taken
or not
taken, which
is inconsistent
with this
Agreement
or

    	 

    	 

    

 

 

which
would reasonably
be expected
to prevent,
delay or
otherwise
impede the
consummation
of the
Arrangement;
and

 

		(e)	complete
the Arrangement
Filings
at or
immediately
following
the Effective
Time.

 

		(2)	American
Consolidated
shall promptly
notify
Starcore
of:

 

		(a)	any Material
Adverse
Effect or
any change,
effect, event,
development,
occurrence,
circumstance
or state
of facts
which
would reasonably
be expected to
have a
Material
Adverse
Effect;

 

		(b)	any notice
or other
communication
from any
Person
alleging
that the
consent (or
waiver,
permit,
exemption,
order,
approval,
agreement,
amendment
or confirmation)
of such
Person
is required
in connection
with this
Agreement or
the Arrangement;

 

		(c)	any notice
or other
communication
from any
Governmental
Entity
in connection
with
the Agreement
(and contemporaneously
provide
a copy
of any such
written
notice or
communication
to Starcore);
or

 

		(d)	any filing,
actions, suits,
claims, investigations
or proceedings
commenced
or, to its
knowledge,
threatened
against,
relating
to or
involving
or otherwise
affecting
American
Consolidated,
this Agreement
or the
Arrangement.

 

		(3)	The
Parties
shall, as
promptly as
practicable,
prepare
and file all
necessary documents,
registrations,
statements,
petitions,
filings
and applications
for the
Regulatory
Approvals and
use their
commercially
reasonable
efforts to obtain
and maintain
all Regulatory
Approvals.

 

		(4)	The
Parties
shall cooperate
with one
another
in connection
with obtaining
the Regulatory
Approvals including
providing
one another
with copies
of all
notices
and information
or other
correspondence
supplied
to, filed
with, or received
from, any Governmental
Entity.
Despite the
forgoing, Starcore
is under
no obligation
to take any steps or
actions that would,
in its sole discretion,
affect Starcore’s
right to own,
use or exploit
its business,
operations
or assets or those
of American
Consolidated.

 

Section
4.3Covenants
of Starcore
Relating
to the
Arrangement

Starcore
shall, and
shall
cause its
Subsidiaries
to, perform
all obligations
required
to be performed
by Starcore
or any
of its
Subsidiaries
under
this Agreement,
co-operate
with American
Consolidated
in connection
therewith,
and do all such other
acts and things
as may be necessary
or desirable
in order to consummate
and make
effective, as soon
as reasonably
practicable,
the transactions
contemplated
in this
Agreement
and,
without
limiting the
generality
of the foregoing,
Starcore
shall and where
appropriate
shall cause each of
its Subsidiaries
to:

    	 

    	 

    

 

 

		(1)	defend
all lawsuits
or other
legal, regulatory
or other
proceedings
against
Starcore
challenging
or affecting
this Agreement
or the
consummation
of the
transactions
contemplated
hereby;

 

		(2)	apply
for and
use its
best efforts
to obtain
approval
of the
listing and
posting for
trading
on the
TSX
of (i)
the Consideration
shares
and (ii)
the Starcore
Shares
which are
issuable upon
the exercise
of the
American
Consolidated
Warrants
and otherwise
comply with TSX
requirements
relevant
to this Agreement;

 

		(3)	use
commercially
reasonable
efforts
to satisfy
all conditions
precedent
in this
Agreement.

 

		(4)	Starcore
shall promptly
notify
American
Consolidated
of:

 

		(a)	any Material
Adverse
Effect or
any  change,
 effect, 
event,  development,
occurrence,
circumstance
 or 
state  of 
facts  which
 would 
reasonably
 be expected to have
a Material Adverse
Effect;

 

		(b)	any notice
or other
communication
from any
Person
alleging
that the
consent (or
waiver,
permit,
exemption,
order,
approval,
agreement,
amendment
or confirmation)
of such
Person
is required
in connection
with this
Agreement or
the Arrangement;

 

		(c)	any notice
or other
communication
from any
Governmental
Entity
in connection
with
the Agreement
(and contemporaneously
provide
a copy
of any such
written
notice or
communication
to Starcore);
or

 

		(d)	any filing,
actions, suits,
claims, investigations
or proceedings
commenced
or, to its
knowledge,
threatened
against,
relating
to or
involving
or otherwise
affecting
Starcore,
this Agreement
or the
Arrangement.

 

Section
4.4American
Consolidated
Warrants

Starcore
covenants
and agrees
that the American
Consolidated
Warrants outstanding
on the
Effective
Date shall
continue
in effect
on the
same terms
and conditions
(subject
to adjustments
required
after giving
effect
to the Arrangement
including,
without limitation,
that such
American Consolidated
Warrants shall be exercisable
for Starcore
Shares).
Starcore
shall take
all corporate action necessary
to reserve for
issuance a sufficient
number of
Starcore
Shares
for delivery
upon exercise
of the
American
Consolidated
Warrants assumed
in accordance
with this Section
4.4.

 

Section
4.5Starcore
Meeting
or Written
Resolution

Subject
to the terms
of this
Agreement,
if required
by the
TSX,
Starcore
agrees to
(a) convene
and conduct
the Starcore
Meeting in
accordance
with Starcore’s
articles
as soon
as reasonably
practicable
or (b)
if so
permitted
by the TSX,
obtain
the Starcore
Shareholder
Approval by
written
resolution
of at
least 50%
of the Starcore
Shares.

    	 

    	 

    

 

 

Section
4.6Starcore
Circular

		(1)	If Starcore
is required
by the
TSX
to convene
the
Starcore
Shareholder
Meeting in
order to
obtain the
Starcore
Shareholder
Approval,
Starcore
shall:

 

		(a)	as promptly
as reasonably
practicable
following
execution
of this
Agreement,

(i) 
prepare
the
Starcore
Circular
together
with any
other
documents
required
by applicable
Laws, (ii)
file the
Starcore
Circular
in all
jurisdictions
where
the same
is required
to be filed,
and (iii)
mail
the
Starcore
Circular
as required
in accordance
with all
applicable
Laws;

 

		(b)	ensure
that the
Starcore
Circular
complies
in all
material
respects
with all Laws
(except
that Starcore
shall not
be responsible
for any
information
relating to American
Consolidated
and its affiliates
included therein);

 

		(c)	(i)
solicit
proxies in
favour
of the
Starcore
Shareholder
Approval resolution,
and against
any resolution
submitted
by any
other
Starcore
Shareholder,
and take all other
actions that are
reasonably
necessary or
desirable to seek the Starcore
Shareholder
Approval, and (ii)
recommend
to holders
of Starcore
Shares
that they vote
in favour
of the
Starcore
Shareholder
Approval resolution;
and

 

		(d)	provide
American
Consolidated
with final
copies of
the Starcore
Circular
prior
to the mailing
to the
Starcore
Shareholders.

 

		(2)	If Starcore
is required
by the
TSX
to convene
the
Starcore
Shareholder
Meeting in
order to
obtain the
Starcore
Shareholder
Approval,
American
Consolidated
shall:

 

		(a)	provide
to Starcore
all information
regarding
American
Consolidated,
its affiliates
and the
American
Consolidated
Shares
as required
by Laws
for inclusion
in the
Starcore
Circular
or in any amendments
or supplements
to such Starcore
Circular;

 

		(b)	use
best efforts
to obtain
any necessary
consents
from
any of
its auditors
and any
other
advisors
to the
use of
any
financial,
technical
or other
expert
information
required
to be included
in the
Starcore
Circular
and to
the identification
in the
Starcore
Circular
of each
such advisor;
and

 

		(c)	ensure 
that  no  such
 information
 will 
include
 any  Misrepresentation
concerning
American
Consolidated,
its Subsidiaries
and the 
American
Consolidated
Shares.

 

		(3)	American
Consolidated
and its legal counsel
shall
be given a reasonable
opportunity
to review
and comment
on the
Starcore
Circular
prior
to the Starcore
Circular
being printed
and filed
with the
Governmental
Entities,
and reasonable
consideration
shall be given
to  any comments
made by American
Consolidated
and its counsel,
provided
that all
information
relating
solely to American
Consolidated,
its affiliates

    	 

    	 

    

 

 

and the
American
Consolidated
Shares
included
in the Starcore
Circular
shall be
in form
and content
satisfactory
to American
Consolidated,
acting reasonably.

 

		(4)	American
Consolidated
and Starcore
shall each
promptly notify
each other
if at any time
before the
Effective
Date either
becomes
aware that
the Starcore
Circular
contains a Misrepresentation,
or that
otherwise
requires
an amendment
or supplement
to the Starcore
Circular
and the Parties
shall co-operate
in the preparation
of any amendment
or supplement
to the Starcore
Circular
as required
or appropriate,
and Starcore
shall promptly
mail or
otherwise
publicly
disseminate
any amendment
or supplement
to the Starcore
Circular
to Starcore
Shareholders
and, if
required
by the
Court or
applicable
Laws, file the
same with
the Governmental
Entities and
as otherwise
required.

 

Section
4.7Access to
Information;
Confidentiality

 

		(1)	Each
of Starcore
and American
Consolidated
shall provide
to the other
and their respective
Representatives
(a) upon
reasonable
notice, reasonable
access during
normal business
hours to its and its Subsidiaries’
(i) premises,
(ii) property
and assets (including
all books
and records, whether
retained
internally or
otherwise)
and (iii) senior
personnel,
so long as the
access does not
unduly interfere
with the
Ordinary Course
conduct
of business;
and (b) such
financial
and operating
data or
other information
with respect
to the assets or business of
the applicable
Party as from
time to time
is reasonably
requested.

 

		(2)	Investigations
made
by or
on behalf
of a
Party,
whether under
this Section
4.7 or
otherwise,
will not
waive, diminish
the scope
of, or
otherwise
affect any representation
or warranty
made by
the other
Party
in this
Agreement.

 

		(3)	The
Parties
acknowledge
that the
Confidentiality
Agreement
continues
to apply
and that
any information
provided
under
Section
4.7(1) above
that is
non-public
and/or
proprietary
in nature
shall be subject
to the
terms
of the
Confidentiality
Agreement.
If this
Agreement
is terminated
in accordance
with its
terms, the
obligations
under
the Confidentiality
Agreement
shall
survive the
termination
of this
Agreement.

 

Section
4.8Notice and
Cure
Provisions

 

		(1)	Each
Party
shall
promptly
notify
the other
Party
of the
occurrence,
or failure
to occur,
of any
event or
state of
facts which
occurrence
or failure
would,
or would
be reasonably
likely
to:

 

		(a)	cause
any of
the representations
or warranties
of such
Party
contained in
this Agreement
to be untrue
or inaccurate
in any
material
respect
at any
time
from the
date
of this
Agreement
to the
Effective
Time;
or

 

		(b)	result
in the failure
to comply
with or
satisfy any
covenant,
condition
or agreement
to be complied
with or
satisfied by such
Party under
this Agreement.

    	 

    	 

    

 

 

		(2)	Notification
provided
under
this  Section
4.8  will 
not  affect
 the 
representations,
warranties,
covenants,
agreements
or obligations
of the
Parties
(or
remedies
with respect
 thereto)
 or the
conditions
to the obligations
of  the
Parties 
under this
Agreement.

 

Section
4.9Insurance
and Indemnification

 

		(1)	Prior
to the Effective
Date,
American
Consolidated
may purchase
customary
“tail” policies
of directors’
and
officers’
liability
insurance
providing
protection
no less favourable
in the aggregate
to the protection
provided
by the policies
maintained
by American
Consolidated
and its Subsidiaries
which
are in effect
immediately
prior to the Effective
Date and providing
protection in
respect of
claims arising
from facts or
events which occurred
on or prior
to the Effective
Date and
Starcore
will, or will
cause American
Consolidated
and its
Subsidiaries
to maintain
such
tail policies in
effect without
any reduction
in scope
or coverage
for six (6)
years
from the
Effective Date;
provided that Starcore
will not be required
to pay any amounts in
respect of
such coverage
prior to the Effective
Time and provided
further that the cost
of such
policies shall not
exceed
150% of the American
Consolidated’s
current annual
aggregate
premium
for policies
currently
maintained
by American
Consolidated
or its Subsidiaries.

 

		(2)	Starcore
shall honour
all rights
to indemnification
or exculpation
now
existing
in favour
of present
and
former
employees,
officers
and directors
of American
Consolidated
and its Subsidiaries
to the extent
that
they are disclosed
to Starcore
and acknowledges
that such
rights,
to the extent
that they are
disclosed
to Starcore
shall survive
the completion
of the Plan
of Arrangement
and shall
continue
in full
force and
effect in accordance
with their
terms for a period
of not
less than
two (2)
years from
the Effective
Date.

 

 

ARTICLE
5

ADDITIONAL
COVENANTS
REGARDING
NON-SOLICITATION

 

Section
5.1Non-Solicitation

 

		(1)	Except
as expressly
provided
in this
Article
5, American
Consolidated
shall
not, directly
or indirectly,
through
any officer,
director,
employee,
representative
(including
any financial
or other
adviser) or
agent of
American
Consolidated
or of
any of
its Subsidiaries
(collectively
“Representatives”),
and shall
not
permit any
such Person
to:

 

		(a)	solicit,
initiate,
encourage
or otherwise
facilitate
(including
by way
of furnishing
or providing
copies
of, access
to, or
disclosure
of, any
information,
properties
(including
mineral
properties),
facilities, books
or records
of American
Consolidated
or any Subsidiary
or affiliate,
or entering
into any
form of
agreement,
arrangement
or understanding)
any inquiry,
proposal
or offer that
constitutes
or may reasonably
be expected to constitute
or lead to,
an Acquisition
Proposal;

    	 

    	 

    

 

 

		(b)	enter into
or otherwise
engage
or participate
in any
discussions
or negotiations
with any
Person
(other
than
Starcore)
regarding
any inquiry,
proposal or
offer that constitutes
or may
reasonably
be expected to
constitute
or lead
to, an
Acquisition
Proposal;

 

		(c)	make
a Change
in Recommendation;

 

		(d)	accept,
approve, endorse
or recommend,
or publicly
propose to
accept,
approve, endorse
or recommend
any Acquisition
Proposal,
or take
no position
or remain
neutral with
respect
to, any
Acquisition
Proposal;
or

 

		(e)	enter into
or publicly
propose
to enter into
any agreement
in respect
of any publically
announced
Acquisition
Proposal
(it being
understood
that publicly
taking  no
position
or a
neutral
position
with respect
to  an  Acquisition
Proposal for
a period
of no more than
two (2) Business
Days following
the formal announcement
of such Acquisition
Proposal
will not be considered
to be  in  violation
 of 
this  Section
5.1 provided the
Board
has rejected such
Acquisition
Proposal and
affirmed the Board
Recommendation
before the end of such
two (2) Business
Day period);

 

		(2)	If not
already
ceased and
terminated,
American
Consolidated
shall, and
shall cause
its  Subsidiaries
and its
Representatives
to, immediately
cease and
terminate, and
cause to be
terminated, any
solicitation,
encouragement,
discussion,
negotiations,
or other activities
 commenced
prior to the
date of
this Agreement
with any Person
(other than
Starcore)
with respect
to any inquiry,
proposal or offer
that constitutes,
or may reasonably
be expected to constitute
or lead to,
an Acquisition
Proposal, and
in connection
with such
termination
shall:

 

		(a)	discontinue
access to,
and disclosure
of all
information,
including
any data
room and
any confidential
information,
properties,
facilities,
books and records
of American
Consolidated
or any Subsidiary;
and

 

		(b)	request,
and exercise
all rights
it has
to require
(i) the
return
or destruction
of all
copies
of any
confidential
information
regarding
American
Consolidated
or any
Subsidiary
provided
to any
Person
(other
than Starcore),
and (ii)
the destruction
of all material
including
or incorporating
or otherwise
reflecting
such confidential
information
regarding
American
Consolidated
or any Subsidiary
using its
best efforts
to ensure
that such requests
are fully
complied with
in accordance
with the
terms of such
rights
or entitlements.

 

		(3)	American
Consolidated
represents
and warrants
that American
Consolidated
has not
waived any
confidentiality,
standstill
or similar
agreement
or restriction
to which
American
Consolidated
or any
Subsidiary
is a Party,
except
to permit
submissions
of expressions
of interest
prior
the date
of this
Agreement,
and
further
covenants
and agrees
(i) that
American
Consolidated
shall
take all necessary
action to enforce
each confidentiality,
standstill
or similar agreement
or restriction
to which American
Consolidated
or any Subsidiary
is a party,
and (ii)
that neither
American

    	 

    	 

    

 

 

Consolidated,
nor
any
Subsidiary
nor
any
of their
respective
Representatives
have
or will,
without
the prior
written consent
of Starcore
(which
may be
withheld
or delayed
in Starcore’s
sole
and absolute
discretion),
release any Person
from,
or waive, amend,
suspend
or otherwise
modify
such
Person’s
obligations
respecting
American
Consolidated,
or any of
its Subsidiaries,
under
any confidentiality,
standstill
or similar
agreement
or restriction
to which
American
Consolidated
or any Subsidiary
is a party.

 

Section
5.2  Notification
of Acquisition
Proposals

 

		(1)	If American
Consolidated
or any
of its
Subsidiaries
or any
of their
respective
Representatives,
receives
or otherwise
becomes
aware of
any
inquiry,
proposal
or offer
that
constitutes
or may
reasonably
be expected
to constitute
or lead
to an Acquisition
Proposal,
or any request
for copies
of, access to,
or disclosure
of, confidential
information
relating
to American
Consolidated
or any Subsidiary,
including
but not
limited
to information,
access, or disclosure
relating
to the properties,
facilities, books
or records
of American
Consolidated
or any
Subsidiary,
American
Consolidated
shall immediately
notify
Starcore,
at first orally,
and then
promptly
and in any
event within
24 hours
in writing,
of:

 

		(a)	such
Acquisition
Proposal,
inquiry,
proposal, offer
or request,
including
a description
of its
material
terms and
conditions,
the identity
of all
Person(s)
making
the Acquisition
Proposal, inquiry,
proposal,
offer
or request,
and copies of
all documents,
correspondence
or other
material
received
in respect
of, from
or on behalf
of any such
Person;
and

 

		(b)	the
status of
developments
and
negotiations
with
respect
to such
Acquisition
Proposal,
inquiry,
proposal,
offer or
request,
including
any changes,
modifications
or other
amendments
to any
such Acquisition
Proposal,
inquiry,
proposal,
offer or request.

 

Section
5.3  Responding
to an Acquisition
Proposal

 

Notwithstanding
Section
5.1, if at
any time
following
the date
of this
Agreement
and prior
to the approval
by American
Consolidated
Shareholders
of the
Arrangement
Resolution
the American
Consolidated
Board
receives a bona
fide written
Acquisition
Proposal that was
not solicited
after entering
into this Agreement
in breach of
Section
5.1 (and provided
that: (i) the Person
making
the Acquisition
Proposal was
not restricted
from making
such Acquisition
Proposal pursuant
to an existing
standstill
or similar restriction;

(ii)  
American
Consolidated
has been
and continues
to be
in compliance
with its
obligations
under
this Article
5; and
(iii)
American
Consolidated
notifies
Starcore
in accordance
with Section
5.2), then
the American Consolidated
Board
may (directly
or through
its advisors
or Representatives):

 

		(a)	contact
the Person
making
such Acquisition
Proposal
and its Representatives
to clarify
the terms
and
conditions
of such
Acquisition
Proposal
so as
to

    	 

    	 

    

 

 

determine
whether such
proposal is,
or could
reasonably
be expected
to lead to,
a Superior
Proposal;

 

		(b)	if, in
the opinion
of the
American
Consolidated
Board,
acting in
good faith
and after
receiving
advice
from its
outside
financial
advisor
and outside
legal counsel,
the Acquisition
Proposal
is, or could reasonably
be expected
to lead to, a Superior
Proposal:

 

		(i)	furnish
information
with
respect
to American
Consolidated
and its
Subsidiaries
to the
Person
making
such
Acquisition
Proposal
and its
Representatives;
and/or

 

		(ii)	consider
such
Acquisition
Proposal
and/or,
 participate
 and/or
engage
in discussions
with the
Person
making
such Acquisition
Proposal
and its
Representatives;

 

provided
that (x)
American
Consolidated
will not,
and will
not
allow its Representatives
to, disclose
any non-public
information
with respect
to American
Consolidated
or its
Subsidiaries
to such
Person
without
entering
into a
confidentiality
and standstill
agreement
with such
Person,
having
terms not
more
favourable
to such
Person
than the
equivalent
terms of
the Confidentiality
Agreement,
and a correct
and complete
copy of
such agreement
will be provided
to Starcore
before
any such
information
is provided;
and (y)
Starcore
is promptly
provided
with a list and
copies
of all information
provided
to the Person
making
such Acquisition
Proposal
not previously
provided
to Starcore.

 

Section
5.4Right
to Match

 

		(1)	If American
Consolidated
receives an
Acquisition
Proposal
that constitutes
or may
constitute
a Superior
Proposal
prior
to the approval
of the
Arrangement
Resolution
by the American
Consolidated
Shareholders,
the American
Consolidated
Board
may, subject
to compliance
with Article
7 and
Section 8.2,
enter into a
definitive agreement
with respect
to such
Acquisition
Proposal,
that is a Superior
Proposal, if
and only
if:

 

		(a)	the Person
making
the Superior
Proposal
was not
restricted
from making
such Superior
Proposal
pursuant
to an existing
standstill
or similar
restriction;

 

		(b)	American
Consolidated
has been,
and continues
to be,
in compliance
with
its obligations
under
this Article
5;

 

		(c)	American
Consolidated
has delivered
to Starcore
a written notice
of the determination
of the
American
Consolidated
Board
that such
Acquisition
Proposal
constitutes
a Superior
Proposal and
of the
intention
of the
American
Consolidated
Board
to enter into such
definitive
agreement, together
with a written
notice from the
American
Consolidated
Board
regarding
the value

    	 

    	 

    

 

 

and
financial
terms that
the American
Consolidated
Board,
in consultation
with its
financial
advisors,
has determined
should
be ascribed
to any non-
cash consideration
offered
under
such Acquisition
Proposal (the
“Superior
Proposal 
Notice”);

 

		(d)	American
Consolidated
has provided
Starcore
a copy
of the
proposed definitive
agreement
for the
Superior
Proposal;

 

		(e)	at least
five (5)
Business
Days
(the
“Matching
Period”)
have elapsed
from the date
that is the
later of
the date
on which
Starcore
received the
Superior
Proposal
Notice
and a
copy of
the proposed
definitive
agreement
for the Superior
Proposal from
American
Consolidated;

 

		(f)	during
any Matching
Period,
Starcore
has had
the opportunity
(but
not the obligation),
in accordance
with Section
5.4(2),
to offer
to amend
this Agreement
and the Arrangement
in order for
such Acquisition
Proposal
to cease to be a Superior
Proposal;

 

		(g)	if applicable,
the American
Consolidated
Board
has determined
in good
faith, after
consultation
with American
Consolidated’s
outside legal
counsel and
financial advisers,
that such Acquisition
Proposal continues
to constitute
a Superior
Proposal
compared
to the terms
of the
Arrangement
as proposed
to be amended by Starcore
under Section
5.4(2);

 

		(h)	the American
Consolidated
Board
has determined
in good
faith,
after consultation
with
American
Consolidated’s
outside
legal counsel
that it
is necessary
for the
American
Consolidated
Board
to enter
into a
definitive
agreement
with respect
to such Superior
Proposal in order
to properly
discharge
its fiduciary
duties;

 

		(i)	such
Superior
Proposal
does not
provide
for the
payment
of any
break, termination
or other
fees or
expenses to
any person
in the
event that
American
Consolidated
completes the transactions
with Starcore
contemplated
by this Agreement
or any other
similar transaction
with Starcore
agreed to prior
to the termination
of this
Agreement;
and

 

		(j)	prior
to entering
into such
definitive
agreement
American
Consolidated
terminates
this Agreement
pursuant
to Section
7.2(1)(c)(ii)
and pays
the Termination
Fee pursuant
to Section
8.2.

 

		(2)	During
the Matching
Period,
or such
longer
period
as American
Consolidated
may approve
in writing
for such
purpose: (a)
the American
Consolidated
Board
shall review any
offer made
by Starcore
under Section
5.4(1)(f)
to amend the
terms of
this Agreement
and the Arrangement
in good
faith in
order to
determine
whether
such proposal would,
upon acceptance,
result in
the Acquisition
Proposal
previously constituting
a Superior
Proposal
ceasing to
be a Superior
Proposal;
and (b)
American
Consolidated
shall negotiate
in good faith with
Starcore
to make such
amendments

    	 

    	 

    

 

 

to
the terms
of this
Agreement
and the Arrangement
as would
enable Starcore
to proceed with
the transactions
contemplated
by this Agreement
on such
amended terms.
If the American
Consolidated
Board
determines
that such
Acquisition
Proposal would cease to be a Superior
Proposal,
American
Consolidated
shall promptly so advise
Starcore,
and American
Consolidated
and Starcore
shall amend
this Agreement
to reflect such
offer made
by Starcore,
and shall take
and cause to be taken all
such actions
as are necessary
to give effect
to the foregoing.

 

		(3)	Each
successive
amendment
to any
Acquisition
Proposal
shall constitute
a new Acquisition
Proposal
for the
purposes of
this Section
5.3, and
Starcore
shall be afforded
a new five
(5) Business
Day Matching
Period
from the
later of the
date on which
Starcore
received the Superior
Proposal
Notice and a copy
of the definitive
agreement for
the new Superior
Proposal from
American Consolidated.

 

		(4)	The 
American
 Consolidated
 Board
 shall
 promptly
 reaffirm
 the 
American
Consolidated
Board
 Recommendation
 by  press
 release 
after  any 
Acquisition
Proposal
which is
not determined
to be a
Superior
Proposal
is publicly announced
or the American
Consolidated
Board
determines
that a proposed
amendment
to the terms
of this Agreement
as contemplated
under
Section
5.4(2)
would result
in an Acquisition
Proposal no longer
being a Superior
Proposal. American
Consolidated
shall provide
Starcore
and its outside
legal counsel
with a reasonable
opportunity
to review the form
and content
of any such press
release and
shall make
all reasonable
amendments
to such press
release as requested
by Starcore
and its counsel.

 

		(5)	If American
Consolidated
provides
a Superior
Proposal
Notice to
Starcore
after a date
that is less
than ten
(10)
Business
Days
before the
American
Consolidated
Meeting,
American
Consolidated
shall
either proceed
with or
shall postpone
the American
Consolidated
Meeting, as directed
by Starcore
to a date that is not more
than ten (10)
Business
Days after the scheduled
date of the American
Consolidated
Meeting.

 

		(6)	Nothing
contained
in this
Section
5.3 shall
limit
in any
way the obligation
of American
Consolidated
to convene
and hold
the American
Consolidated
Meeting in
accordance with
Section
2.3 of this Agreement
while this Agreement
remains in
force.

 

		(7)	Nothing
contained
in this
Article 5
shall prohibit
the American
Consolidated
Board
from responding
through
a directors’
circular
or otherwise
as required
by Law to
an Acquisition
Proposal that
it determines
is not a Superior
Proposal, provided
that American
Consolidated
shall provide
Starcore
and its
outside legal
counsel with
a reasonable
opportunity to review
the form and
content of
such circular
or other disclosure
and shall make
all reasonable
amendments
as requested
by Starcore
and its counsel.

    	 

    	 

    

 

 

Section
5.5Breach by
Subsidiaries
and Representatives

 

Without
limiting
the generality
of the
foregoing,
American
Consolidated
shall advise
its Subsidiaries
and the
Representatives
of the
prohibitions
set out
in this Article
5 and
any violation
of the restrictions
set forth in this Article
5 by American
Consolidated,
its Subsidiaries
or Representatives
is deemed
to be a breach
of this Article
5 by American
Consolidated.

 

 

ARTICLE
6 CONDITIONS

 

Section
6.1Mutual
Conditions
Precedent

 

The
Parties
are not
required
to complete
the
Arrangement
unless
each of
the following
conditions
is satisfied
on or
prior
to the
Effective
Time,
which
conditions
may only
be waived,
in whole
or in part,
by the
mutual consent
of the Parties:

 

		(1)	American
Consolidated
Shareholder
Approval.
The Required
Approval shall
have been obtained
at the American
Consolidated
Meeting.

 

		(2)	Interim
and Final
Order.
The Interim
Order and
the Final
Order have
each been obtained
on terms
consistent
with
this Agreement,
and have not
been set
aside or
modified in
a manner
unacceptable
to either American
Consolidated
or Starcore,
acting reasonably,
on appeal
or otherwise.

 

		(3)	Starcore
Shareholder
Approval.
If so
required
by the
TSX, the
Starcore
Shareholder
Approval
shall
have
been obtained.

 

		(4)	Illegality.
No Law
is in
effect that
makes
the consummation
of the
Arrangement
illegal
or otherwise
prohibits
or enjoins
American
Consolidated
or Starcore
from consummating
the Arrangement.

 

		(5)	Stock
Exchange
Approvals.
The conditional
approval
from the
TSX
and TSXV
shall have
been obtained
by Starcore
and American
Consolidated,
respectively.

 

Section
6.2Additional
Conditions
Precedent
to the
Obligations
of Starcore

 

Starcore
is not
required
to complete
the Arrangement
unless
each of
the following
conditions
is satisfied
on or
before the
Effective
Time,
which conditions
are for
the exclusive
benefit of
Starcore
and may only
be waived, in
whole
or in part,
by Starcore
in its
sole discretion:

 

		(1)	Representations
and Warranties.
The representations
and warranties
of American
Consolidated
which
are qualified
by references
to materiality
or by
the expression
“Material Adverse
Effect”
and the representations
and warranties
set forth
in Section 5.1(3)
and Schedule
C were true and
correct as of the
Effective
Time, in
all respects,
and all other representations
and warranties
of American
Consolidated

    	 

    	 

    

 

 

were
true and
correct as
of the
Effective
Time,
in all
material
respects,
in each
case except
for representations
and warranties
made
as of
a specified
date, the
accuracy of
which
shall be
determined
as of
such
specified
date, and
American
Consolidated
has delivered
a certificate
confirming
same to
Starcore,
executed
by two
(2) senior officers
of American
Consolidated
(in each case
without
personal
liability)
addressed to Starcore
and dated the Effective
Date.

 

		(2)	Performance
of Covenants.
American
Consolidated
has fulfilled
or complied
in all
material
respects
with each
of the
covenants
of American
Consolidated
contained
in this
Agreement
to be fulfilled
or complied
with by it on or
prior
to the Effective
Time, and
has delivered
a certificate
confirming
same to
Starcore,
executed
by two

(2) 
senior
officers
of American
Consolidated
(in each
case without
personal
liability)
addressed to
Starcore
and
dated the
Effective
Date.

 

		(3)	No Legal
Action.
There
is no
action or
proceeding
pending
or threatened
by any
Person
in any
jurisdiction
to:

 

		(a)	cease trade,
enjoin,
prohibit,
or impose
any limitations,
damages
or conditions
on, Starcore’s
ability to
acquire,
hold,
or exercise
full rights
of ownership
over,
any American
Consolidated
Shares,
including
the right
to vote the American
Consolidated
Shares;

 

		(b)	prohibit
or restrict
the Arrangement,
or the
ownership
or operation
by Starcore
of the
business
or assets
of Starcore,
American
Consolidated
or any of
its Subsidiaries,
or compel
Starcore
to dispose
of or
hold separate
any material
portion of
the business
or assets
of Starcore,
American
Consolidated
or any
of its
Subsidiaries
as a result
of the
Arrangement;
or

 

		(c)	prevent
or materially
delay
the consummation
of the
Arrangement,
or if
the Arrangement
is consummated,
have a Material
Adverse
Effect.

 

		(4)	Dissent
Rights. Dissent
Rights
have not
been exercised
with respect
to more
than 5% of
the issued
and outstanding
American
Consolidated
Shares.

 

		(5)	No Material
Adverse
Effect. There
shall not
have occurred
a Material
Adverse
Effect to
American
Consolidated.

 

Section
6.3 Additional
Conditions
Precedent
to the
Obligations
of American
Consolidated

 

American
Consolidated
is not
required
to complete
the Arrangement
unless
each of
the following
conditions
is satisfied
on or
before the
Effective
Time,
which conditions
are for
the exclusive
benefit of
American
Consolidated
and may only be waived,
in whole or
in part,
by American
Consolidated
in its
sole discretion:

 

		(1)	Representations
and Warranties.
The representations
and warranties
of Starcore
which  are
 qualified
 by 
references 
to  materiality
 and 
the  representations
 and

    	 

    	 

    

 

 

warranties
set forth
in Schedule
D were
true and
correct as
of the
date of
this Agreement
and are
true and
correct as
of the
Effective Time,
in all
respects,
and all other
representations
and warranties
of Starcore
were true
and correct as
of the date
of this
Agreement
and are
true and
correct as
of the
Effective
Time,
in all material
respects,
in each case
except
for representations
and warranties
made
as of
a specified
date, the
accuracy
of which
shall
be determined
as of
such
specified
date, and Starcore
has delivered
a certificate
confirming
same to
American
Consolidated,
executed by
two (2) senior
officers
of Starcore
(in each
case without
personal
liability) addressed
to American Consolidated
and dated
the Effective Date.

 

		(2)	Performance
of Covenants.
Starcore
has fulfilled
or complied
in all
material
respects
with each
of the
covenants
of Starcore
contained
in this
Agreement
to be fulfilled
or complied
with by
it on
or prior
to the Effective
Time,
and has delivered
a certificate confirming
same to American
Consolidated,
executed by two
(2) senior
officers
of Starcore
(in each
case without
personal
liability)
addressed to
American
Consolidated
and dated the
Effective Date.

 

		(3)	No Legal Action. There is no action or proceeding pending or threatened by any Person (other than 

                                                                                Starcore) in any jurisdiction to:

 

		(a)	cease trade,
enjoin,
prohibit,
or impose
any limitations,
damages
or conditions
on, Starcore’s
ability to
acquire,
hold,
or exercise
full rights
of ownership
over,
any American
Consolidated
Shares,
including
the right
to vote the American
Consolidated
Shares;

 

		(b)	prohibit
or restrict
the Arrangement,
or the
ownership
or operation
by Starcore
of the
business
or assets
of Starcore,
American
Consolidated
or any of
its Subsidiaries,
or compel
Starcore
to dispose
of or
hold separate
any material
portion of
the business
or assets
of Starcore,
American
Consolidated
or any
of its Subsidiaries
as a result
of the
Arrangement;
or

 

		(c)	prevent
or materially
delay
the consummation
of the
Arrangement,
or if
the Arrangement
is consummated,
have a Material
Adverse
Effect.

 

		(4)	No Material
Adverse
Effect. There
shall not
have occurred
a Material
Adverse
Effect
to Starcore.

 

Section
6.4Satisfaction
of Conditions

 

The
conditions
precedent
set out
in Section
6.1, Section
6.2 and
Section
6.3 will
be conclusively
deemed
to have been
satisfied,
waived
or released
at the
Effective
Time.

    	 

    	 

    

 

 

ARTICLE
7

TERM
AND TERMINATION

 

Section
7.1Term

 

This
Agreement
shall
be effective
from
the
date
hereof
until
the earlier
of the
Effective
Date
and the
termination
of this
Agreement
in accordance
with its
terms.

 

Section
7.2Termination

 

		(1)	This Agreement
may be
terminated
prior
to the
Effective
Time
by:

 

		(a)	the mutual
written
agreement
of the
Parties;
or

 

		(b)	either American
Consolidated
or Starcore
if:

 

		(i)	the Required
Approval is
not obtained
at the American
Consolidated
Meeting in
accordance
with the
Interim Order,
provided
that a Party
may not
terminate
this Agreement
pursuant
to this Section
7.2(1)(b)(i)
if the
failure to
obtain
the Required
Approval has been caused
by, or
is a result of,
a breach
by such Party
of any
of its
representations
or warranties
or the
failure of such
Party
to perform
any of its covenants
or agreements
under
this Agreement;

 

		(ii)	after the
date of
this Agreement,
any Law
is enacted,
made,
enforced or
amended,
as applicable,
that makes
the consummation
of the
Arrangement
illegal
or otherwise
permanently
prohibits or
enjoins
American
Consolidated
or Starcore
from consummating
the Arrangement,
and such
Law has,
if applicable,
become
final
and non-
appealable, provided
the Party
seeking to terminate
this Agreement
pursuant to this Section
7.2(1)(b)(ii)
has used its best efforts
to, as applicable,
appeal or overturn
such Law or
otherwise have
it lifted or rendered
non-applicable
in respect of
the Arrangement
to the extent required
by this Agreement;

 

		(iii)	the Effective
Time
does
not occur
on or
prior
to the Outside
Date, provided
that a
Party
may not
terminate
this Agreement
pursuant
to this Section
7.2(1)(b)(iii)
if the
failure
of the
Effective
Time
to so occur
has been caused
by, or
is a
result
of, a breach
by such
Party of
any of its representations
or warranties
or the failure
of such Party
to perform
any of its
covenants
or agreements
under
this Agreement;
or

 

		(c)	American
Consolidated
if:

 

		(i)	a breach
of any
representation
or warranty
or failure
to perform
any covenant
or agreement
on the
part
of Starcore
under
this Agreement
occurs that would
cause the condition
in Section
6.3(1)
or

    	 

    	 

    

 

 

Section
6.3(2)
not to
be satisfied,
and such
breach or
failure is incapable
of being
cured;
provided
that any
intentional
breach
shall be deemed
to be incurable
and American
Consolidated
is not then in breach
of this Agreement
so as to cause any
condition
in Section
6.2(1) or
Section 6.2(2)
not to be satisfied;

 

		(ii)	prior
to the approval
by the American
Consolidated
Shareholders
of the 
Arrangement
Resolution,
the American
Consolidated
Board
authorizes
American
Consolidated
to enter into a written
agreement
with respect
to a Superior
Proposal, provided
American Consolidated
is then in compliance
with Article
5, and that prior
to or concurrent
with such
termination
American
Consolidated
pays
the Termination
Fee in
accordance
with Section
8.2; or

 

(iii)         
there has
occurred
a Material
Adverse
Effect to
Starcore.

 

		(d)	Starcore
if:

 

		(i)	a breach
of any
representation
or warranty
or failure
to perform
any covenant
or agreement
on the
part
of American
Consolidated
under
this Agreement
occurs
that would cause any condition
in Section
6.2(1) or
Section 6.2(2)
not to be satisfied,
and such breach or
failure is incapable
of being cured;
provided that any intentional
breach shall
be deemed
to be incurable and Starcore
is not then in
breach of
this Agreement
so as to cause any condition
in Section
6.3(1) or
Section 6.3(2)
not to be satisfied;

 

		(ii)	the
American
Consolidated
Board
or any
committee
of the
American
Consolidated
Board
fails to
recommend
or withdraws,
amends,
modifies
or qualifies,
publicly
proposes
or states
its intention
to do
so, or
fails to publicly
reaffirm
(without
qualification),
the American
Consolidated
Board Recommendation
(a “Change
in Recommendation”)
(it being
understood
that publicly
taking
no position
or a neutral
position
with respect
to an Acquisition
Proposal
which has
been publically
disclosed
for more
than two
(2) Business
Days after
first learning
of an Acquisition
Proposal
shall
be deemed to be a Change
in Recommendation),
or American
Consolidated
breaches
Section 5.1(1)
in any
respect or,
the American
Consolidated
Board or
any committee
of the American
Consolidated
Board resolves
or proposes
to take any of
the foregoing
actions;
or

 

		(iii)	there
has occurred
a Material
Adverse
Effect to
American
Consolidated.

    	 

    	 

    

 

 

Section
7.3  Effect
of Termination/Survival

 

		(1)	If this
Agreement
is terminated
pursuant
to Section
7.1 or
Section
7.2, this Agreement
shall become
void and
of no
further
force or
effect without
liability of
any Party (or
any shareholder,
director,
officer,
employee, agent,
consultant
or representative
of such Party)
to any other Party
to this Agreement,
except that:
(a) in the event of
termination
under Section
7.1, Section
4.9 (Insurance
and Indemnification)
shall survive for
a period
of six (6) years
following
such termination;
and (b)
in the event of
termination
under
Section 7.2, this
Section
7.3, Section 8.2 (Termination
Fees)
Section 8.3 (Expenses)
and Section
8.7 (Third Party
Beneficiaries)
shall survive,
and provided
further that
no Party shall
be relieved of
any liability for
any wilful
breach by it of
this Agreement.

 

		(2)	As used
in this
Section
7.3, “wilful
breach”
means
a breach
that is a consequence
of an
act undertaken
by the
breaching
party
with the
actual
knowledge
that
the taking
of such
act would, or
would be reasonably
expected to,
cause a breach
of this Agreement.

 

 

ARTICLE
8 GENERAL
PROVISIONS

 

Section
8.1  Amendments

 

This
Agreement
and the
Plan of
Arrangement
may,
at any time
and from
time to time
before or
after the holding
of the
American
Consolidated
Meeting but
not later
than the Effective
Time, be amended
by mutual written
agreement of
the Parties,
without further
notice to or authorization
on the part
of the American
Consolidated
Shareholders,
and any such
amendment
may, without
limitation:

 

		(a)	change
the time
for performance
of any
of the
obligations
or acts
of the
Parties;

 

		(b)	modify any
representation
or warranty
contained
in this Agreement
or in
any document
delivered
pursuant
to this
Agreement;

 

		(c)	modify
any of
the
covenants
contained
in this
Agreement
and
waive
or modify
performance
of any
of the
obligations
of the
Parties;
and/or

 

		(d)	modify any
mutual
conditions
contained
in this
Agreement.

 

provided
that such
amendment
does not:
(i) invalidate
any required
approval of
the Arrangement
by the
American
Consolidated
Shareholders;
or (ii)
after the holding
of the American
Consolidated
Meeting,
result
in an
adverse change
in the quantum
or form
of consideration
payable
to American
Consolidated
Shareholders
pursuant to the
Arrangement.

    	 

    	 

    

 

 

Section
8.2Termination
Fees

 

		(1)	Despite
any other
provision
in this
Agreement
relating
to the payment
of fees
and expenses,
including
the payment
of brokerage
fees, if a
Termination
Fee Event
occurs,
American
Consolidated
shall pay
Starcore
the Termination
Fee in
accordance with
Section 8.2(3).

 

		(2)	For
the purposes
of this
Agreement,
“Termination
Fee”  means
 $200,000 
and “Termination
Fee Event”
means the
termination
of this
Agreement:

 

		(a)	By Starcore,
pursuant
to Section
7.2(1)(d)(ii);

 

		(b)	By American
Consolidated,
pursuant
to Section
7.2(1)(c)(ii);
or

 

		(c)	by American
Consolidated
or Starcore
pursuant
to Section
7.2(1)(b)(i)
or Section
7.2(1)(b)(iii)
if;

 

		(i)	prior
to such
termination,
an Acquisition
Proposal
is made
or publicly
announced
by any
Person
other
than
Starcore
or any
of its
affiliates
or any
 Person
(other
than Starcore
or any
of its affiliates)
shall have
publicly announced
an intention
to do so; and

 

		(ii)	within
180 days
following
the date
of such
termination,
(i)
an Acquisition
Proposal
(whether
or not
such
Acquisition
Proposal
is the same
Acquisition
Proposal
referred
to in
clause
(i) above)
is consummated,
or (ii)
American Consolidated,
directly or
indirectly,
in one or
more transactions,
enters into a contract
in respect of
an Acquisition
Proposal.

 

		(3)	The
Termination
Fee
shall be
paid by
American
Consolidated
to Starcore
as follows,
by wire
transfer
or immediately
available
funds,
if a Termination
Fee Event
occurs due
to:

 

		(a)	a termination
of this
Agreement
pursuant
to Section
8.2(2)(a),
within
three (3)
Business
Days
of the
occurrence
of such
Termination
Fee Event;

 

		(b)	a termination
of this
Agreement
pursuant
to Section
8.2(2)(b),
prior
to or simultaneously
with the occurrence
of such
Termination
Fee Event;
and

 

		(c)	a termination
of this
Agreement
pursuant
to Section
8.2(2)(c),
on or
prior
to the  consummation
of the
Acquisition
Proposal or
the entering
into of
the Contract
referred
to in Section
8.2(2)(c).

 

		(4)	American
Consolidated
acknowledges
that the
agreements
contained
in Section
8.2 are an
integral part
of the
transactions
contemplated
by this Agreement,
and that without
these agreements
Starcore
would not
enter into this
Agreement,
and that
the amounts set out
in this Section
8.2 represent
liquidated
damages
which are
a genuine
pre-estimate
of the damages,
including opportunity
costs, which
Starcore
will suffer

    	 

    	 

    

 

 

or
incur as
a result
of the
event giving
rise to
such damages
and resultant
termination
of this
Agreement,
and is
not a
penalty.
American
Consolidated
irrevocably
waives any right
it may have to raise as a defence
that any such liquidated
damages
are excessive
or punitive.

 

Section
8.3Expenses

		(1)	All out-of-pocket
third
party
transaction
expenses
incurred
by a Party
in connection
with  this
 Agreement
 and 
the  Plan
of Arrangement
 shall be 
paid  by
 the  Party
incurring such
expenses, whether or
not the Arrangement
is consummated.

 

		(2)	American
Consolidated
confirms
that no
broker,
finder
or investment
banker
is or
will be
entitled to any
brokerage,
finder’s or
other
fee or commission
in connection
with the transactions
contemplated
by this Agreement.

 

Section
8.4Notices.

Any
notice, or
other
communication
given
regarding
the
matters
contemplated
by this Agreement
(must
be in writing,
sent
by personal
delivery,
courier
or facsimile
(but
not by
electronic
mail)
and addressed:

		(a)	to Starcore
International
Mines Ltd.
at: Suite
750 – 580
Hornby
Street

Vancouver,
British
Columbia
V6C 3B6

 

Attention:Chief
Executive
Officer Facsimile:604.602.4936

 

with
a copy
to:

 

McMillan
LLP

Suite
1500 - 1055
West Georgia
Street Vancouver,
British
Columbia,
V6E 4N7
Canada

 

Attention:Cory
Kent Facsimile:604.685.7084

		(b)	to American
Consolidated
Minerals
Corp. at:
Suite
750 – 580
Hornby
Street

Vancouver,
British
Columbia
V6C 3B6

 

Attention:Lead
Director
Facsimile:604.602.4936

 

 

 

with
a copy
to:

    	 

    	 

    

 

 

Owen
Bird
Law Corporation
Suite
2900 – 595
Burrard
Street

Vancouver,
British
Columbia,
V6E 4N7
Canada

 

Attention:Jeffrey
Lightfoot
Facsimile:604.632.4487

 

 

Any
notice
or other
communication
is deemed
to be given
and
received
(i) if
sent
by personal
delivery
or same
day courier,
on the
date
of delivery
if it
is a Business
Day and
the delivery
was made
prior to
4:00 p.m.
(local time
in place
of receipt)
and
otherwise on
the next
Business
Day, (ii)
if sent by overnight
courier,
on the next
Business
Day, or
(iii) if
sent by facsimile,
on the
Business
Day following
the
date of confirmation
of transmission
by the originating
facsimile. A Party
may change
its address for
service from
time to time by providing
a notice
in accordance
with the
foregoing.
Any subsequent
notice or
other communication
must be sent
to the Party
at its changed
address. Any element
of a Party’s
address that
is not specifically
changed
in a notice
will be assumed
not to be changed.
Sending
a copy of
a notice or
other communication
to a Party’s
legal counsel
as contemplated
above is for information
purposes only
and does
not constitute
delivery of
the notice
or other
communication
to that Party.
The failure
to send a copy
of a notice
or other
communication
to legal counsel
does not
invalidate
delivery
of that
notice or
other
communication
to a Party.

 

Section
8.5  Time
of the
Essence.

Time
is of
the essence
in this
Agreement.

 

Section
8.6  Injunctive
Relief.

The
Parties
agree
that
irreparable
harm
would
occur
for which
money
damages
would
not
be an adequate
remedy
at law
in the
event that
any
of the
provisions
of this
Agreement
were not
performed
in accordance
with their
specific
terms or
were otherwise
breached.
It is accordingly
agreed
that the
Parties
shall
be entitled
to injunctive
and
other
equitable
relief to prevent
breaches
of this
Agreement,
and to enforce
compliance
with the terms
of this Agreement,
this being
in addition
to any other
remedy
to which the Parties
may be entitled
at law or in equity.

 

Section
8.7  Third
Party
Beneficiaries.

		(1)	Except
as provided
in Section
4.9 which,
without
limiting
their terms,
are intended
as stipulations
for the
benefit of
the third
Persons
mentioned
in such
provisions
(such third
Persons
referred
to in this Section
8.7 as the “Indemnified
Persons”)
and except
for the rights
of the American
Consolidated
Shareholders
to receive the Consideration
following
the Effective Time
pursuant to the
Arrangement
(for which
purpose American
Consolidated
hereby confirms
that it is acting as agent
on behalf
of the American
Consolidated
Shareholders),
American
Consolidated
and Starcore
intend that this
Agreement will
not benefit or
create any right
or cause
of action in
favour of any Person,
other than the Parties
and that no Person,
other
than the

    	 

    	 

    

 

 

Parties,
shall be
entitled to
rely on
the provisions
of this
Agreement
in any action,
suit, proceeding,
hearing
or other
forum.

 

	 	(2)	Despite the foregoing, Starcore acknowledges to each of the Indemnified Persons their direct rights against it under Section 4.9 of this Agreement, which are intended for the benefit of, and shall be enforceable by, each Indemnified Person, his or her heirs and his or her legal representatives, and for such purpose, American Consolidated confirms that it is acting as trustee on their behalf, and agrees to enforce such provisions on their behalf. The Parties reserve their right to vary or rescind the rights at any time and in any way whatsoever, if any, granted by or under this Agreement to any Person who is not a Party, without notice to or consent of that Person, including any Indemnified Person.

 

Section
8.8Waiver.

No
waiver of
any of
the provisions
of this
Agreement
will constitute
a waiver
of any
other
provision
(whether
or not
similar).
No waiver
will be
binding
unless
executed
in writing
by the
Party
to be
bound
by the
waiver. A
Party’s
failure
or delay
in exercising
any right
under
this Agreement
will not
operate
as a waiver of
that right.
A single
or partial
exercise of
any right
will not preclude
a Party from
any other
or further
exercise of
that right
or the exercise
of any
other right.

 

Section
8.9Entire
Agreement.

This
Agreement,
together
with the
Confidentiality
Agreement,
constitutes
the entire agreement
between
the Parties
with respect
to the
transactions
contemplated
by this Agreement
and supersedes
all prior
agreements,
understandings,
negotiations
and discussions,
whether oral
or written,
of the Parties.
There are
no representations,
warranties, covenants,
conditions
or other
agreements,
express or implied,
collateral,
statutory or
otherwise, between
the Parties
in connection
with the subject
matter of this
Agreement,
except
as specifically
set forth
in this
Agreement.
The Parties
have not
relied and are
not relying
on any other
information,
discussion
or understanding
in entering
into and completing
the transactions
contemplated
by this Agreement.

 

Section
8.10Successors
and Assigns.

		(1)	This
Agreement
becomes
effective only
when executed
by American
Consolidated
and Starcore.
After that
time, it
will be
binding upon
and enure
to the benefit
of American
Consolidated,
Starcore
and their respective successors
and permitted assigns.

 

		(2)	Neither
this
Agreement
nor
any of
the
rights
or obligations
under
this Agreement
are assignable
or transferable
by any
Party
without
the prior
written
consent
of the
other Party.

 

Section
8.11Severability.

If
any
provision
of this
Agreement
is determined
to be illegal,
invalid
or unenforceable
by an arbitrator
or any
court
of competent
jurisdiction,
that
provision
will be severed
from
this
Agreement
and
the
remaining
provisions
shall
remain
in full
force
and

    	 

    	 

    

 

 

effect.
Upon such
determination
that any
term or
other provision
is invalid,
illegal or
incapable
of being
enforced,
the Parties
shall
negotiate
in good
faith
to modify
this Agreement
so as to effect
the original
intent of the
Parties
as closely as possible
in an acceptable
manner
to the end that the
transactions
contemplated
hereby are fulfilled
to the fullest extent
possible.

 

Section
8.12  Governing
Law.

This
Agreement
will be
governed
by and
interpreted
and enforced
in accordance
with the
laws of
the
Province
of British
Columbia
and the
federal
laws of
Canada
applicable therein.

 

Section
8.13  Rules
of Construction.

The
Parties
to this
Agreement
waive the
application
of any
Law or
rule of
construction
providing
that ambiguities
in any
agreement
or other
document
shall
be construed
against
the party
drafting such
agreement
or other
document.

 

Section
8.14  No Liability.

No
director
or officer
of Starcore
shall
have any
personal
liability
whatsoever
to American
Consolidated
under
this Agreement
or any
other
document
delivered
in connection
with the
transactions
contemplated
hereby
on behalf
of Starcore.
No director
or officer
of American
Consolidated
or any of its Subsidiaries
shall have
any personal
liability whatsoever
to Starcore
under this Agreement
or any other document
delivered
in connection
with the transactions
contemplated
hereby on
behalf of American
Consolidated
or any of
its Subsidiaries.

 

Section
8.15  Language.

The
Parties
expressly acknowledge
that they
have
requested
that this
Agreement
and all
ancillary
and related
documents
thereto be
drafted in
the English
language
only.
Les parties
aux présentes
reconnaissent
avoir exigé
que la présente
entente et tous les
documents qui
y sont accessoires
soient rédigés
en anglais
seulement.

 

Section
8.16  Counterparts.

This
Agreement
may be
executed
in any
number
of counterparts
(including
counterparts
by facsimile)
and all
such counterparts
taken together
shall be
deemed
to constitute
one and
the same
instrument.
The Parties
shall be
entitled to
rely upon
delivery of
an executed
facsimile
or similar executed
electronic copy
of this
Agreement,
and such
facsimile or similar
executed
electronic copy
shall be legally
effective to create
a valid and binding agreement
between the Parties.

 

 

 

 

[Remainder
of page
intentionally
left blank.
Signature
pages
follow.]

    	 

    	 

    

IN WITNESS
WHEREOF
the Parties
have executed
this Arrangement
Agreement.

 

 

 

AMERICAN
CONSOLIDATED
MINERALS
CORP.

 

By:(sgd)
Allan
Fabbro

Authorized
Signing
Officer

 

 

 

 

 

 

STARCORE
INTERNATIONAL
MINES
LTD.

 

By:(sgd)
Robert
Eadie 

 

Authorized
Signing
Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature
Page
to Arrangement
Agreement

    	 

    	 

    

SCHEDULE
A

PLAN
OF ARRANGEMENT

 

IN
THE MATTER
OF AN ARRANGEMENT
among
American
Consolidated
Minerals Corp.
(“American
Consolidated”)
and
the holders
from
time to
time of
the issued
and outstanding
common
shares without
par value in the
capital of
American
Consolidate,
pursuant
to Part 9, Division
5 of the
Business
Corporations
Act (British
Columbia),
as amended.

 

ARTICLE
1 INTERPRETATION

 

		1.1	In this
Plan
of Arrangement,
any capitalized
term
used herein
and not
defined
in this
Section
1.1 will
have the
meaning
ascribed
thereto
in the Arrangement
Agreement.
Unless the
context otherwise
requires,
the following
words and phrases
used in this Plan
of Arrangement
will have the meanings
hereinafter
set out:

 

“American
Consolidated”
means American
Consolidated
Minerals
Corp., a
corporation existing
under
the laws
of the
Province
of British
Columbia,
Canada.

 

“American
Consolidated
Meeting”
means
the special
meeting
of American
Consolidated
Shareholders,
including
any adjournment
or postponement
thereof,
to be called
and held
in accordance
with the
Interim Order
to consider
the Arrangement
Resolution
and for any other
purpose as may
be set out in the
American Consolidated
Circular.

 

“American
Consolidated
Shareholders”
means
the registered
or beneficial
holders
of the American
Consolidated
Shares,
as the context
requires,
and American
Consolidated
Shareholder
means
any one of
them.

 

“American
Consolidated
Shares”
means
the common
shares
without
par value
in the authorized
share
capital of
American
Consolidated.

 

“American
Consolidated
Warrants” means
outstanding
share
purchase
warrants to purchase
American
Consolidated
Shares
as listed
in Section
8(c) of
the American
Consolidated
Disclosure
Letter.

 

“Arrangement”
means
the arrangement
under
Part 9,
Division
5 of
the BCBCA
as described
herein,
subject
to any
amendments
or supplements
thereto
made
in accordance
with the
Arrangement
Agreement and
the provisions hereof
or made
at the direction
of the Court
in the Final Order.

 

“Arrangement
Agreement”
means
the agreement
made
as of
October
1, 2014 between
Starcore
and American
Consolidated,
including
all schedules
annexed
thereto,
together with
the American
Consolidated
Disclosure
Letter
and the Starcore
Disclosure
Letter,
as each may
be amended,
supplemented
or otherwise
modified from
time to time
in accordance with
the terms thereof.

 

“Arrangement
Resolution”
means
the special
resolution
of the
American
Consolidated
Shareholders
approving the
Arrangement
which
is to be
considered
at the American

    	 

    	 

    

 

 

Consolidated
Meeting
and will
be substantially
in the
form
of Schedule
B to the
Arrangement
Agreement.

 

“BCBCA”
means
the Business
Corporations
Act
(British
Columbia)
and the
regulations
made
thereunder,
as now
in effect
and as
they may
be promulgated
or amended
from time
to time.

 

“Business
Day”
means
any day,
other than
a Saturday,
a Sunday
or a
statutory
or civic holiday
in Vancouver,
British
Columbia.

 

“Closing
Certificate”
means a
certificate
in the
form attached
hereto as
Appendix
A which,
when signed
by an
authorized
representative
of each
of the
Parties,
will constitute
acknowledgement
by the Parties
that
this Plan
of Arrangement
has been implemented
to their respective
satisfaction.

 

“Court”
means
the
Supreme
Court
of British
Columbia.

 

“Depositary”
means
Computershare
Investor
Services
Inc., or
any other
depositary
or trust
company,
bank or
financial
institution
agreed
to between
Starcore
and American
Consolidated
for the
purpose of,
among other
things,
exchanging
certificates representing
American
Consolidated
Shares for
Starcore
Shares in
connection
with the Arrangement.

 

“Dissent
Procedures”
has the
meaning
ascribed
thereto
in Section
5.1.

 

“Dissent
Rights”
means
the rights
of dissent
exercisable
by the American
Consolidated
Shareholders
in respect
of the
Arrangement
described
in Article
5 hereto.

 

“Dissenter”
means
a registered
American
Consolidated
Shareholder
who has duly
exercised
a Dissent
Right
and who
is ultimately
entitled to
be paid
the fair
value of
the American
Consolidated
Shares
held by such
registered
American
Consolidated
Shareholder.

 

“Dissenting
Shares”
has the
meaning
ascribed
thereto
in Section
5.2.

 

“Effective
Date”
means
the effective
date of
the Arrangement,
being the
third Business
Day after
the date
upon which
all conditions
precedent
(excluding
conditions
that, by
their terms, cannot
be satisfied until
the Effective
Date) to
the completion
of the Arrangement
as set
out in Article
6 of
the Arrangement
Agreement
have been satisfied
or waived
in accordance
with the Arrangement
Agreement,
or such other
date as
may be agreed
to by Starcore
and American
Consolidated,
and Starcore
and American
Consolidated
will execute
the Closing Certificate
confirming
the Effective
Date.

 

“Effective
Time”
means
the time
on the
Effective
Date specified
as the “Effective
Time” on
the Closing
Certificate.

 

“Exchange
Ratio”
means
one third
of one
(1/3)
Starcore
Share
for each
one
(1) American
Consolidated
Share.

    	 

    	 

    

 

 

“Final
Order”
means
the final
order of
the Court,
after a hearing
upon the
fairness
of the
terms and
conditions
of the
Arrangement,
approving
the Arrangement,
in a form
acceptable to American
Consolidated
and Starcore,
each acting reasonably,
as such order may
be amended
by the
Court (with
the consent
of American
Consolidated
and Starcore,
each acting
reasonably)
at any time
prior
to the Effective
Date or,
if appealed,
then, unless
such
appeal is
withdrawn
or denied,
as affirmed
or as
amended
on appeal.

 

“Interim
Order”
means
the interim
order of
the Court
made
pursuant
to Section
291 of
the BCBCA,
in a form
acceptable
to American
Consolidated
and Starcore,
each acting reasonably,
providing
for,
among other
things,
the calling
and holding
of the
American
Consolidated
Meeting,
as the
same may
be amended,
supplemented
or varied
by the
Court, with
the consent of
Starcore
and American
Consolidated,
each acting
reasonably.

 

“Plan
of Arrangement”
means this
Plan
of Arrangement
and any
amendments
or variations
thereto made
in accordance
with this
Plan
of Arrangement
or upon
the direction
of the
Court in the
Final Order
with the
consent
of American
Consolidated
and Starcore,
each acting reasonably.

 

“Registrar”
means
the Registrar
of Companies
appointed
pursuant
to Section
400 of
the BCBCA.

 

“Starcore”
means
Starcore
International
Mines
Ltd.,
a corporation
existing
under
the laws
of the
Province
of British
Columbia,
Canada.

 

“Starcore
Shares”
means
the common
shares
without
par value
in the
authorized
share
capital of
Starcore.

 

“Subsidiary”
has the
meaning
given
such
term in
the Arrangement
Agreement.
“Tax Act”
means
the Income
Tax Act
(Canada).

“Transmittal
Letter”
means
the letter of
transmittal
to be sent
by American
Consolidated
to American
Consolidated
Shareholders
for use
in connection
with the
Arrangement.

 

		1.2	In this
Plan
of Arrangement,
unless
otherwise
expressly
stated or
the context
otherwise
requires:

 

		(a)	the
division
of this
Plan
of Arrangement
into Articles
and
Sections
and the
further
division
thereof
into subsections
and the
insertion
of headings
are for convenience
of reference
only and
will not affect
the construction
or interpretation
of this Plan
of Arrangement.
Unless otherwise
indicated,
any reference
in this Plan
of Arrangement
to an Article,
Section or
subsection refers
to the specified
Article, Section
or subsection
to this Plan
of Arrangement;

 

		(b)	the terms
“hereof”,
“herein”,
“hereunder”
and similar
expressions
refer to
this Plan
of Arrangement
and
not to
any particular
section or
other portion
hereof and include
any agreement or instrument
supplementary
or ancillary
hereto and,

    	 

    	 

    

 

 

unless
otherwise
indicated,
a reference
herein to
a Section
is to the
appropriate
Section
of this
Plan of
Arrangement;

 

		(c)	words
importing the
singular
number only
will include
the plural
and vice
versa, words
importing
the use
of any
gender
will include
all genders
and words
importing persons
will include
firms and corporations
and vice versa;

 

		(d)	if any
date on
which
any
action is
required
to be
taken hereunder
by any
of the parties
is not
a Business
Day,
such action
will be required
to be taken
on the
next succeeding
day which
is a Business
Day;

 

		(e)	the
word
“including”
means
“including,
without
limiting
the generality
of the
foregoing”;

 

		(f)	a reference
to a statute
is to that
statute as
now enacted
or as
the statute
may from
time to
time be
amended,
re-enacted
or replaced
and includes
any regulation,
rule or
policy made
thereunder;
and

 

		(g)	all references
to cash
or currency
in this
Plan
of Arrangement
are to
Canadian
dollars
unless
otherwise
indicated.

 

ARTICLE
2 ARRANGEMENT
AGREEMENT

 

		2.1	This
Plan
of Arrangement
is made
pursuant
to and
subject
to the provisions
of the
Arrangement
Agreement.

 

		2.2	This
Plan
of Arrangement
will become
effective
as at
the
Effective
Time
and will
be binding
without
any further
authorization,
act or
formality
on the
part of
the
Court,
the Registrar,
or American
Consolidated
Shareholders,
from
and after
the
Effective
Time.

 

ARTICLE
3 ARRANGEMENT

 

		3.1	On
the Effective
Date, subject
to the
provisions
of Article
5 hereof,
the following
will occur
 and
will be
deemed
to occur
in the
following
sequence
without
any further
authorization,
act or
formality:

 

		(a)	each issued
American
Consolidated
Share
outstanding
immediately
prior
to the Effective
Time
held by a
American
Consolidated
Shareholder
in respect
of which
Dissent Rights
have been
validly
exercised will
be deemed
to have been
transferred without
any further
act or formality,
to Starcore,
free and
clear of any
liens, claims
and encumbrances
in consideration
for a debt
claim against
Starcore
in an
amount
and payable
in accordance
with Article
5, and:

 

		(i)	such
American
Consolidated
Shareholder
will cease
to be
the registered
holder
of such
Dissenting
Shares
and will
cease to
have any rights
as registered
holders
of such
American
Consolidated
Shares
other than
the

    	 

    	 

    

 

 

right
 to  be 
paid fair  value
 for 
such  Dissenting
 Shares
 as  set 
out  in
Section
5.2(a);

 

		(ii)	such
American
Consolidated
Shareholder’s
name will
be removed
as the registered
holder
of such
Dissenting
Shares
from the
registers
of American
Consolidated
Shares maintained
by or on behalf
of American
Consolidated;
and

 

		(iii)	Starcore
will be deemed
to be the
transferee
of such
Dissenting
Shares, free
and clear of
any liens, claims
and encumbrances;
and

 

		(b)	immediately
thereafter,
each issued
and outstanding
American
Consolidated
Share
(other
than any
American
Consolidated
Share
in respect
of which
a registered
American
Consolidated
Shareholder
has validly
exercised
his,
her or its Dissent
Right)
will be transferred
to, and acquired
by Starcore,
without
any act or
formality on
the part
of the
holder
of such
American
Consolidated
Share
or Starcore,
free and clear
of all liens,
claims and
encumbrances,
in exchange
for such number
of Starcore
Shares equal
to the Exchange
Ratio, provided
that the
aggregate number
of Starcore
Shares payable
to any American
Consolidated
Shareholder,
if calculated
to include a
fraction
of a
Starcore
Share, will
be rounded down
to the nearest
whole Starcore
Share,
with no consideration
being paid
for the fractional
share, and the
name of each
such American
Consolidated
Shareholder
will be removed
from the register
of holders
of American
Consolidated
Shares and added
to the register
of holders
of Starcore
Shares,
and Starcore
will be
recorded
as the registered
holder
of such
American
Consolidated
Shares
so exchanged
and
will be deemed
to be
the legal
and beneficial
owner thereof.

 

		3.2	From
the Effective
Time,
where American
Consolidated
is required
to issue
American
Consolidated
Shares
to any person
or entity
pursuant
to any American
Consolidated
Warrant, any
convertible
securities or
any other
agreement
or arrangement
(and such
issuance
of American
Consolidated
Shares
is not
otherwise
addressed
in this
Plan
of Arrangement)
such obligation
will be satisfied
by the delivery
to the person
or entity entitled
to receive such
American
Consolidated
Shares the
number of Starcore
Shares
equal
to the Exchange
Ratio that
the person
or entity
would have
been entitled
to receive if the
American
Consolidated
Shares had been
issued immediately
before the Effective
Time, and
the person
or entity entitled to receive
the American
Consolidated
Shares will
be bound by the terms of
this Plan
of Arrangement
and will receive
and accept Starcore
Shares in
lieu of American
Consolidated
Shares.

 

ARTICLE
4 CERTIFICATES
AND
PAYMENTS

 

		4.1	Starcore
will deposit
the Starcore
Shares
with the
Depositary
to satisfy the
consideration
issuable and/or
payable
to the American
Consolidated
Shareholders
pursuant
to this Plan
of Arrangement
(other than
registered
American
Consolidated
Shareholders
validly exercising
Dissent
Rights and
who have not withdrawn
their notice
of objection).

    	 

    	 

    

 

 

		4.2	After the
Effective
Date,
certificates
formerly
representing
American
 Consolidated
Shares 
which
are held
by a American
Consolidated
Shareholder
will, except
for American
Consolidated
Shares held
by Dissenters,
represent
only the
right
to receive the
consideration
issuable and/or
payable
therefor
pursuant to Section
3.1 in accordance
with the
terms of
this Plan
of Arrangement.

 

		4.3	No
dividends
or other
distributions
declared
or made
after the
Effective
Date  with
respect to
the Starcore
Shares
with a
record
date after
the Effective
Date will
be payable
or paid
to the holder
of any
unsurrendered
certificate
or certificates
for American
Consolidated
Shares which,
immediately
prior to the Effective
Date,
represented outstanding
American
Consolidated
Shares and
will not be payable
or paid until
the surrender
of certificates
for American
Consolidated
Shares for
exchange
for the consideration
issuable and/or
payable
therefor
pursuant to Section
3.1 in accordance
with the terms
of this
Plan of
Arrangement.

 

		4.4	As soon
as reasonably
practicable
after the
Effective
Date (subject
to Section
6.2), the
Depositary
will forward
to each
American
Consolidated
Shareholder
that submitted
a duly completed Transmittal
Letter to the Depositary,
together with the certificate
(if any)
representing
the American
Consolidated
Shares held by such
American
Consolidated
Shareholder,
the certificates
representing
the Starcore
Shares issued
to such American
Consolidated
Shareholder
pursuant to Section
3.1(b), which
shares will be
registered
in such name
or names and
either (i) delivered
to the address or addresses
as such American
Consolidated
Shareholder
directed in
their Transmittal Letter
or (ii) made
available for pick
up at the offices
of the Depositary
in accordance with
the instructions
of the American
Consolidated
Shareholder
in the Transmittal
Letter.

 

		4.5	American
Consolidated
Shareholders
that did
not submit
an effective
Transmittal
Letter prior
to the Effective
Date
may take
delivery
of the
consideration
issuable
or payable
to them by delivering
the certificates
representing
American
Consolidated
Shares formerly
held by them to the
Depositary
at the offices indicated
in the Transmittal
Letter. Such
certificates
must be
accompanied
by a duly
completed
Transmittal Letter,
together with
such other
documents
as  the Depositary
may require.
Certificates
representing
the Starcore
Shares issued
to such American
Consolidated
Shareholder
pursuant to Section
3.1 will be registered
in such name or
names
and delivered
to the address
or addresses as such
American
Consolidated
Shareholder
directed in
their Transmittal
Letter or (ii) made
available for pick
up at the offices
of the Depositary
in accordance
with the instructions
of the American
Consolidated
Shareholder
in the Transmittal
Letter,
as soon
as reasonably
practicable
after receipt
by the Depositary
of the required
certificates and
documents.

 

		4.6	Any certificate
which
immediately
prior
to the
Effective
Date
represented
outstanding
American
Consolidated
Shares
and which
has not
been surrendered,
with all
other instruments
required
by this Article
4, on or prior
to the sixth anniversary
of the
Effective Date,
will cease to represent
any claim against or
interest of any
kind or nature
in American
Consolidated,
Starcore
or the Depositary.

 

		4.7	In the
event any
certificate,
which
immediately
before the
Effective
Time
represented
one or
more outstanding
American
Consolidated
Shares
that was
exchanged
pursuant
to

    	 

    	 

    

 

 

Section
3.1, is lost,
stolen or
destroyed,
upon the making
of an affidavit
of that fact
by the
Person
claiming such
certificate
to be lost,
stolen
or destroyed,
the Depositary
will issue
in exchange
for such
lost,
stolen or
destroyed
certificate,
the consideration
to which
such Person
is entitled
in respect
of the
American
Consolidated
Shares represented
by such
lost, stolen,
or destroyed
certificate pursuant
to Section 3.1 deliverable
in accordance with
such Person’s
Transmittal
Letter. When
authorizing
such issuances
or payment
in exchange
for any
lost, stolen
or destroyed
certificate,
the Person
to whom
consideration
is to be
issued and/or
paid will,
as a condition
precedent
to the issuance
 and/or
payment
thereof,
give
a bond
satisfactory
to Starcore
and its transfer
agent in
such sum
as Starcore
may direct
or otherwise
indemnify
Starcore
in a manner satisfactory
to it, against
any Claim that may
be made against
one or both
of them with
respect to the
certificate alleged
to have been lost, stolen
or destroyed.

 

ARTICLE
5 RIGHTS
OF DISSENT

 

		5.1	Notwithstanding
Section
3.1, holders
of American
Consolidated
Shares
may exercise
rights
of dissent
(the
“Dissent
Rights”)
in connection
with
the Arrangement
pursuant
to the Interim
Order and
in the manner
set forth in sections
242 to 247 of
the BCBCA
(collectively,
the “Dissent
Procedures”).

 

		5.2	American
Consolidated
Shareholders
who duly
and validly
exercise
Dissent
Rights
with
respect
to their
American
Consolidated
Shares (“Dissenting
Shares”)
and who:

 

		(a)	are
ultimately
entitled
to be
paid fair
value for
their Dissenting
Shares
will be deemed
to have transferred
their Dissenting
Shares
to Starcore
and shall
be paid an
amount equal
to such
fair value;
or

 

		(b)	for
any reason
are  ultimately
 not 
entitled 
to  be  paid
 fair  value
 for 
their Dissenting
Shares,
will be
deemed
to have participated
in the
Arrangement
on the
same basis
as a non-dissenting
American
Consolidated
Shareholder
and will
receive Starcore
Shares on
the same basis as every
other non-dissenting
American
Consolidated
Shareholder;

 

but
in no case
will American
Consolidated
be required
to recognize
such
persons
as holding
American
Consolidated
Shares on
or after
the Effective
Date.

 

		5.3	If a
American
Consolidated
Shareholder
exercises
the Dissent
Right,
Starcore
will, on
the Effective
Date,
set aside
a number
of Starcore
Shares
which is
attributable
under
the Arrangement
to the American
Consolidated
Shares
for which
Dissent
Rights
have been
exercised.
If the dissenting
American
Consolidated
Shareholder
is ultimately 
not entitled
to be paid
fair value for
their Dissenting
Shares,
they will
be deemed
to have participated
in the Arrangement
on the same
basis as the non-dissenting
American
Consolidated
Shareholders
and Starcore
will distribute
to such American
Consolidated
Shareholder
the Starcore
Shares that
the American
Consolidated
Shareholder
is entitled to receive
pursuant to the terms
of the Arrangement.
If a American
Consolidated
Shareholder
duly complies
with the Dissent
Procedures
and is ultimately
entitled to be

    	 

    	 

    

 

 

paid
fair value
for their
Dissenting
Shares,
Starcore
will pay
the amount
to be paid
in respect
of the
Dissenting
Shares.

 

ARTICLE
6

EFFECT
OF THE
ARRANGEMENT

 

		6.1	As at and
from the
Effective
Time:

 

		(a)	American
Consolidated
will be
a wholly-owned
Subsidiary
of Starcore;

 

		(b)	the  rights
 of 
creditors
 against
 the  property
 and  interests
 of 
American
Consolidated
will be
unimpaired
by the
Arrangement;
and

 

		(c)	American
Consolidated
Shareholders,
other than
Dissenters,
will hold
Starcore
Shares
in replacement
for
their American
Consolidated
Shares,
as provided
by the Plan
of Arrangement.

 

		6.2	Starcore,
American
Consolidated
and the
Depositary
will be
entitled
to deduct
and withhold
from any
consideration
payable
to any
holder
of American
Consolidated
Shares
and to
any Dissenter,
such
amounts as
Starcore,
American
Consolidated
or the
Depositary
is required
or permitted
to deduct
and withhold
with respect
to such payment
under the
Tax Act, the United
States Internal
Revenue Code
of 1986 or any
provision of
provincial,
state, local
or foreign
tax laws, in each case,
as amended.
To the extent
that amounts
are so withheld,
such withheld
amounts will
be treated for
all purposes
hereof
as having
been paid to
the holder
of the
shares
in respect
of which
such deduction
and withholding
was made, provided
that such withheld
amounts are actually
remitted to the
appropriate taxing authority.
Each of
American
Consolidated,
Starcore
and the Depositary
is hereby authorized
to sell or otherwise
dispose
of such portion
of Starcore
Shares payable
as consideration
as is necessary
to provide
sufficient
funds to Starcore,
American
Consolidated
or the Depositary,
as the case may
be, to enable it to implement
such deduction
or withholding,
and Starcore,
American
Consolidated
or the Depositary
will notify
the holder
thereof and remit
to the holder
any unapplied
balance of
the net proceeds
of such
sale.

 

ARTICLE
7 AMENDMENTS

 

		7.1	Starcore
and American
Consolidated
reserve 
the  right
 to  amend,
 modify
 and/or
supplement
this Plan
of Arrangement
from time
to time
at any time
prior
to the Effective
Date,  provided
 that any such
amendment,
modification
or supplement
must be contained
in a written
document that
is approved by each of Starcore
and American
Consolidated
and is filed
with the Court. Subject
to Section
7.3, if such
amendment,
modification
or supplement
is made following
the American
Consolidated
Meeting, it
will  be approved
by the Court and,
if required
by the Court, communicated to the
American
Consolidated
Shareholders,
and will become
part of
the Arrangement
upon completion
of all the
conditions
required
in the Court
approval.

    	 

    	 

    

 

 

		7.2	Save
and except
as may
be otherwise
provided
in the
Interim
Order,
any
amendment,
modification
or supplement
to this
Plan of
Arrangement
may be
proposed
by Starcore
or American
Consolidated
(provided
that
the
other
will have
consented
thereto)
at any
time prior
to the
American
Consolidated
Meeting
with or
without
any
other
prior
notice
or communication
to American Consolidated
Shareholders,
and if so proposed
and accepted by American
Consolidated
Shareholders
voting at the
American
Consolidated
Meeting,
will become
part
of this Plan
of Arrangement
for all purposes.

 

		7.3	Any
amendment,
modification
or supplement
to this
Plan
of Arrangement
may be
made
by Starcore
and American
Consolidated
without
approval
of the
American
Consolidated
Shareholders
provided
that it
concerns
a matter
which,
in the
reasonable
opinion
of Starcore
and American
Consolidated
is of an administrative
nature required
to better give effect to the
implementation
of this
Plan of
Arrangement
and is
not materially
adverse to 
the financial
or economic
interests
of any of
the American
Consolidated
Shareholders.

 

ARTICLE
8 FURTHER
ASSURANCES

 

8.1
Notwithstanding
that the
transactions
and events
set out
herein
will occur
and be deemed
to occur
in the
order
set out
in this
Plan of
Arrangement
without
any further
act or formality,
each of
the parties
to the Arrangement
Agreement will
make, do
and execute,
or cause
to be made,
done and
executed,
all such
further
acts, deeds,
agreements, transfers,
assurances, instruments
or documents
as may reasonably
be required
by any of them in order
further to document
or evidence
any of the transactions
or events set out
therein.

    	 

    	 

    

Appendix
“A” to the
Plan of
Arrangement – Closing
Certificate

 

Re:Arrangement
Agreement
dated October
1, 2014 between
Starcore
International
Mines Ltd.
and American
Consolidated
Minerals
Corp.
(the
“Arrangement
Agreement”)

 

 

 

Defined
terms used
but not
defined
in this
certificate
shall
have the
meaning
ascribed
thereto
in the
Arrangement
Agreement.

 

Each
of the
undersigned
hereby confirms
that the
undersigned
is satisfied
that the
conditions
precedent
to its
respective
obligations
to complete
the Arrangement
Agreement
have been
satisfied and
that the
Arrangement
is completed
as of(am/pm
Vancouver
local time)
(the
“Effective
Time”)
on, 2014 (the
“Effective Date”).

 

 

 

 

STARCORE
INTERNATIONAL
MINES LTD.

 

 

 

 

Name:
Title:

 

 

AMERICAN
 CONSOLIDATED
MINERALS
CORP.

 

 

 

 

Name:
Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A
- 1

    	 

    	 

    

SCHEDULE
B ARRANGEMENT
RESOLUTION

 

BE
IT RESOLVED
THAT:

 

		1.	The
arrangement
(the
“Arrangement”)
under
section
288 of
the Business
Corporations
Act (British
Columbia)
(the “BCBCA”)
involving
American
Consolidated
Minerals
Corp. (“AJC”)
and Starcore
International
Mines Ltd.
(“Starcore”),
all as more
particularly
described and
set forth
in the Management
Information
Circular
(the “Circular”)
of AJC dated
October 14, 2014
accompanying
the notice
of this meeting
(as the
Arrangement
may be
modified,
supplemented
or amended),
is hereby
authorized,
approved and adopted.

 

		2.	The
plan of
arrangement,
as it may
be or
has been
amended
(the
“Plan of
Arrangement”),
involving
AJC and
implementing
the
Arrangement,
the
full text
of which
is set out
in Schedule
B to the
Circular
(as
the Plan
of Arrangement
may be, or
may have been,
modified,
supplemented
or amended),
is hereby approved
and adopted.

 

		3.	The
arrangement
agreement
(the “Arrangement
Agreement”)
between
AJC  and
Starcore,
dated October
1, 2014, the
actions of
the directors
of AJC
in approving
the Arrangement
and the
actions
of the
officers
of AJC
in executing
and delivering
the Arrangement
Agreement
and any amendments
thereto are hereby
ratified and approved.

 

		4.	AJC is
authorized
to apply
for a
final
order from
the Supreme
Court of
British
Columbia
to approve
the Arrangement
on the
terms set
forth
in the
Arrangement
Agreement
and the Plan
of Arrangement
(as they may be, or
may have been,
amended,
modified or
supplemented
and as
described
in the Circular).

 

		5.	Notwithstanding
that
this resolution
has
been passed
(and
the
Arrangement
adopted)
by the
shareholders
of AJC
or that
the
Arrangement
has
been approved
by the
Supreme
Court
of British
Columbia,
the directors
of AJC
are
hereby
authorized
and
empowered,
without
further
notice
to, or
approval
of, the
shareholders
of AJC:

 

		a.	to amend
the Arrangement
Agreement
or the
Plan
of Arrangement
to the
extent permitted
by the
Arrangement
Agreement
or the
Plan
of Arrangement;
or

 

		b.	subject to
the terms
of the
Arrangement
Agreement,
not to
proceed with
the Arrangement.

 

		6.	Any director
or officer
of AJC
is hereby
authorized
and directed
for and
on behalf
of AJC to
execute,
whether
under
corporate seal
of AJC
or otherwise,
and to
deliver such
documents
as are
necessary
or desirable
to give effect
to the Arrangement.

 

		7.	Any
director
or officer
of AJC
is hereby
authorized,
for and
on behalf
and in
the
name
of AJC,
to execute
and
deliver,
whether
under
corporate
seal of
AJC or
otherwise,
all such
agreements,
forms, waivers,
notices,
certificates,
confirmations
and other
documents
and instruments
and to do
or cause to be done
all such other
acts and
things
as in the

    	 

    	 

    

-
2 -

 

 

opinion
of such
director
or officer
may be
necessary,
desirable
or useful
for
the purpose of
giving
effect to
the foregoing
resolutions,
the Arrangement
Agreement
and the
completion
of the
Plan of
Arrangement
in accordance with
the terms of
the Arrangement
Agreement,
including:

 

		a.	all actions
required
to be
taken by
or on
behalf of
AJC, and
all necessary
filings and
obtaining
the necessary
approvals, consents
and acceptances
of appropriate
regulatory
authorities;
and

 

		b.	the signing
of the
certificates,
consents
and other
documents
or declarations
required
under
the Arrangement
Agreement
or otherwise
to be
entered
into by AJC,

 

such
determination
to be conclusively
evidenced
by the
execution
and delivery
of such
document,
agreement
or instrument
or the
doing
of any
such act
or thing.

    	 

    	 

    

 

SCHEDULE
C

 

REPRESENTATIONS
AND WARRANTIES
OF AMERICAN
CONSOLIDATED

 

Except
as set forth
in the
correspondingly
numbered
paragraph
of the
American
Consolidated
Disclosure
Letter,
or as
disclosed
in the
American
Consolidated
Filings
filed before
the
date of
this
Agreement,
American
Consolidated
hereby
represents
and
warrants to
Starcore
as follows,
and acknowledges
and agrees
that Starcore
is relying
upon
such representations
and warranties
in connection
with the entering
into of
this
Agreement:

 

		(1)	Organization
and
Qualification.
American
Consolidated
and each
of its
Subsidiaries
are corporations
duly incorporated
and validly
existing
under
all applicable
Laws
of their
respective
jurisdiction
of incorporation,
continuance
or creation
and each
has full
corporate
power
and authority
to own
its assets
and conduct
its business
as now owned
and conducted.
American
Consolidated
and each
of its Subsidiaries
are duly qualified
to carry
on business
and
are in
good standing
in each
jurisdiction
in which
the character
of their
properties
or the nature
of their activities
makes such
qualification
necessary,
except
where
the failure
to be so qualified
will not,
individually
or in
the
aggregate,
have a Material
Adverse
Effect.
True
and complete
copies of
the constating
documents
of American
Consolidated
and each of
its Subsidiaries
have been delivered
or made
available to Starcore,
and neither
American
Consolidated
nor its Subsidiaries
have taken
any action
to amend or
supersede
such documents.

 

		(2)	Authority
Relative 
to  this 
Agreement.
 American
 Consolidated
 has  the
 requisite
corporate power
and authority
to enter into
this Agreement
and to perform
its obligations
hereunder.
The execution
and delivery
of this Agreement
by American
Consolidated
and the consummation
by American
Consolidated
of the transactions
contemplated
by this Agreement
have been duly authorized
by the American
Consolidated
Board
and no other corporate proceedings
on the part
of American
Consolidated
or its Subsidiaries
are necessary
to authorize
this Agreement
except
for the authorization
of American
Consolidated
Securityholders
of the
Arrangement
Resolution.
This Agreement
has been duly
executed and delivered
by American
Consolidated
and constitutes
a valid and binding
obligation
of American
Consolidated,
enforceable
by Starcore
against American
Consolidated
in accordance
with its terms,
except as
the enforcement
thereof
may be
limited by
bankruptcy,
insolvency
and other applicable
Laws affecting
the enforcement
of creditors’
rights
generally and subject
to the qualification
that equitable
remedies
may be granted
only in
the discretion
of a court
of competent
jurisdiction.

 

		(3)	No
Conflict; Required
Filings
and Consent.
The execution
and delivery
by American
Consolidated
of this
Agreement
and the
performance
by it of
its obligations
hereunder
and the
completion
of the Arrangement
will not
violate,
conflict
with or result
in a breach of
any provision
of the constating
documents
of American
Consolidated
or those
of its Subsidiaries,
and except
as would not,
individually
or in the aggregate,
have or reasonably
be expected to have a Material
Adverse Effect,
will not: (a)
violate, conflict
with or result
in a breach of:
(i) any agreement,
contract,

    	 

    	 

    

 

 

indenture,
deed of
trust, mortgage,
bond,
instrument,
Authorization,
license
or permit
to which
American
Consolidated
or its
Subsidiaries
is a party
or by
which American
Consolidated
or its Subsidiaries
is bound;
or (ii)
to the knowledge
of American
Consolidated,
any Law to which
American
Consolidated
or its Subsidiaries
is subject
or by which
American
Consolidated
or its Subsidiaries
is bound;
(b) give
rise to any
right
of termination,
or the acceleration
of any indebtedness,
under
any such agreement,
contract,
indenture,
Authorization,
deed of trust,
mortgage,
bond,
instrument,
license
or permit;
or (c) give
rise to any rights
of first refusal
or rights
of first offer,
trigger any
change
in control
or influence
provisions
or any
restriction
or limitation
under
any such
agreement,
contract,
indenture,
Authorization,
deed of
trust, mortgage,
bond,
instrument,
license
or permit,
or result
in the imposition
of any Encumbrance,
charge
or lien
upon
any
of American
Consolidated‘s
assets (including
mineral
properties)
or the assets
(including
mineral
properties)
of any of
its Subsidiaries.
Other than
the approval
of the TSXV,
the Interim
Order,
the Final
Order,
and the
filing
of any Arrangement
Filings,
no authorization,
consent
or approval
of, or filing
with, any
Governmental
Entity or
any court
or other
authority
is necessary
on the
part of
American
Consolidated
for the
consummation
by American
Consolidated
of its obligations
in connection
with the Arrangement
under
this Agreement
or for the
completion
of the Arrangement
not to cause
or result
in any loss of
any rights
or assets or any
interest
therein
held by American
Consolidated
or its Subsidiaries
in any material
assets or properties,
except for
such Authorizations,
consents,
approvals and
filings
as to which the
failure to obtain
or make
would not,
individually
or in the
aggregate,
prevent or
materially
delay
consummation
of the
Arrangement.

 

		(4)	Subsidiaries.
American
Consolidated
does not
have Subsidiaries
or any
material
interests in
any Person,
other than
as disclosed
in the American
Consolidated
Filings
or the
American
Consolidated
Disclosure
Letter.

 

		(5)	Compliance
with Laws.

 

		(a)	To
the knowledge
of American
Consolidated,
the operations
of American
Consolidated
and its
Subsidiaries
have been
and are
now conducted
in compliance
with all Laws
of each jurisdiction,
the Laws of
which have been
and are now applicable
to the operations
of American
Consolidated
or of any of
its Subsidiaries;
and none of
American
Consolidated
or any of
its Subsidiaries
has received
any notice of
any alleged
violation
of any such
Laws, other
than non-compliance
or violations
which, individually
or in the
aggregate, would
not have
a Material
Adverse
Effect.

 

		(b)	Neither
of American
Consolidated
nor
its Subsidiaries
is in conflict
with,
or in default
(including
cross
defaults)
under
or in
violation
of: (a)
its notice
of articles
or articles
or equivalent
organizational
documents;
or (b)
any agreement
or understanding
to which
it or
by which any
of its properties
or assets in which
it has a controlling
interest or
an option
to acquire
a controlling
interest
is bound
or affected,
except for
failures which,
individually
or in the
aggregate,
would not
have a Material Adverse
Effect.

    	 

    	 

    

 

 

		(6)	Company 
Authorizations.
 American
 Consolidated
 and  its
 Subsidiaries
 have obtained
all authorizations
necessary
for the
ownership,
operation,
development,
maintenance,
or use of
the material
assets of American
Consolidated
or its Subsidiaries
or otherwise
in connection
with the material
business or
operations
of American
Consolidated
or its Subsidiaries
and such authorizations
are in full force
and effect.
American
Consolidated
and its Subsidiaries
have fully complied
with and are
in  compliance
with all
authorizations,
except,
 in  each
 case,  for
such  non-
compliance which,
individually
or in 
the aggregate,
would not have a Material
Adverse Effect.
There is no action,
investigation
or proceeding
pending
or, to the knowledge
of American
Consolidated,
threatened
regarding
 any of
the authorizations.
None of 
American
Consolidated
nor any
of its Subsidiaries
has received any notice,
whether written
or oral, of
revocation
or non-renewal
of any such
authorizations,
or of any
intention
of any Person
to revoke
or refuse
to renew any of
such authorizations,
except in
each case, for
revocations
or non-renewals
which, individually
or in the
aggregate, would
not have a Material
Adverse Effect
and, to the
knowledge
of American
Consolidated,
all such authorizations
continue
to be effective in
order for American
Consolidated
and its Subsidiaries
to continue
to conduct
their respective
businesses as they
are currently being
conducted.

 

		(7)	Regulatory
Filings.
The American
Consolidated
Filings
have complied
in all
material
respects
with all
requirements
of applicable
Law. None
of the
 American
Consolidated
Filings,
at the time
filed or
as subsequently
amended,
contained
any untrue
statement or
a material fact
or omitted
to state a material fact
required
to be stated therein
or necessary
in order
to make the
statements
made therein,
in light of the
circumstances
under which
they were made,
not misleading.

 

		(8)	Capitalization
and
Listing.

 

		(a)	The
authorized
share
capital
of American
Consolidated
consists
only of
an unlimited
number of
American
Consolidated
Shares.
As at the
date of
this Agreement
there are:
(A)
17,569,191 American
Consolidated
Shares
validly issued
and outstanding
as fully-paid
and non-assessable
American
Consolidated
Shares; (B)
nil outstanding
American
Consolidated
Options
providing for
the issuance
of nil American
Consolidated
Shares upon
the exercise thereof;
 and (C)
outstanding
American
Consolidated
Warrants
providing
for the issuance
of 1,671,416
American
Consolidated
Shares upon
the exercise thereof.
There are
no other warrants,
conversion
privileges,
calls or other
rights, shareholder
rights plans,
agreements,
arrangements,
commitments,
or obligations
of American
Consolidated
or any of
its Subsidiaries
to issue or
sell any
American
Consolidated
Shares
or of
any of
its Subsidiaries
or securities
or obligations
of any kind convertible
into,
exchangeable
for or otherwise
carrying the right
or obligation
to acquire
any American
Consolidated
Shares or
any of its Subsidiaries,
and there are
no outstanding
stock appreciation
rights, phantom
equity or
similar rights,
agreements, arrangements
or commitments
of American
Consolidated
or any of
its Subsidiaries,
and no Person
is entitled to any
pre-emptive
or other
similar right
granted by American
Consolidated
or any of its Subsidiaries.

    	 

    	 

    

 

 

		(b)	Schedule
8(b)
to the
American
Consolidated
Disclosure
Letter sets
forth,
as of the
date
hereof,
the holders
of all
outstanding
American
Consolidated
Options
and the
number,
exercise
prices and
expiration
dates
of each
grant to such
holders.
All American Consolidated
Shares that
may be issued
pursuant
to the exercise
of outstanding
American
Consolidated
Options
will, when
issued in
accordance with
the terms
of the
 American
Consolidated
Options,
as the case may be, be
duly authorized,
validly
issued,
fully-paid
and non-assessable
and are
not and
will not
be subject
to or issued
in violation
of, any pre-emptive
rights.

 

		(c)	Schedule
8(c)
to the
American
Consolidated
Disclosure
Letter sets
forth, as
of the
date
hereof,
the holders
of all
outstanding
American
Consolidated
Warrants and
the number,
exercise prices
and expiration
dates of
each grant
to such holders.
All American Consolidated
Shares
that may
be issued pursuant
to the
exercise
of outstanding
American
Consolidated
Warrants will,
when issued
in accordance with
the terms of
the  American
Consolidated
Warrants, as the case may
be, be duly authorized,
validly
issued,
fully-paid
and non-assessable
and are
not and
will not
be subject
to or issued
in violation
of, any
pre-emptive
rights.

 

		(d)	There
are no
outstanding
contractual
obligations
of American
Consolidated
or any
of its
Subsidiaries
to repurchase,
redeem
or otherwise
acquire
any American
Consolidated
Shares or
any shares
of its Subsidiaries.
No Subsidiaries
of American
Consolidated
own any
American
Consolidated
Shares.

 

		(e)	No
order ceasing
or suspending
trading
in securities
of American
Consolidated
nor prohibiting
the sale of
such securities
has been
issued and
is outstanding
against
American
Consolidated
or its
directors,
officers
or promoters.

 

		(9)	Shareholder
and Similar
Agreements.
American
Consolidated
is not
party
to any shareholder,
pooling,
voting trust
or other
similar
agreement
relating
to the issued
and outstanding
 American
Consolidated
 Shares
 or 
the  shares 
of any  of
its Subsidiaries.

 

		(10)	U.S. Securities
Law Matters.

 

		(a)	There
is no class
of securities
of American
Consolidated
which
is registered
pursuant
to Section
12 of
the Exchange
Act, nor
is American
Consolidated
subject to
any reporting
obligation
(whether
active or
suspended)
pursuant to
Section 15(d)
of the
Exchange
Act. American
Consolidated
is not,
and has
never been, subject
to any requirement
to register
any class of its equity
securities pursuant
to Section
12(g) of
the Exchange
Act.

 

		(b)	American
 Consolidated
 is  not
 an  investment
 company 
registered
 or required
to be registered
under
the U. S.
Investment
Company
Act of
1940, as amended.

    	 

    	 

    

 

 

		(c)	The
American
Consolidated
Shares
have not
been traded
on any
national securities
exchange
in the
United States
during
the past
12 calendar
months,
and will
not be so traded
prior to
the Effective Date.

 

		(11)	Reports.
American
Consolidated
has filed
with all
applicable
Governmental
Entities
true  and 
complete  copies
 of 
the  American
 Consolidated
 Filings
 that 
American
Consolidated
is required
to file therewith.
The American
Consolidated
Filings
at the
time filed:
(a) did
not contain
any untrue
statement of a material
fact or omit
to state a material
fact required
to be stated therein or
necessary to make
the statements
therein,
in  the 
light of the circumstances
under
which they were
made, not
misleading,
and (b)
 complied
in all material
respects with
the requirements
of applicable
Securities Laws.
American
Consolidated
has not filed any confidential
material change
report with
any Governmental
Entity which
at the date hereof
remains
confidential.

 

		(12)	Financial
Statements.

 

		(a)	The
audited consolidated
financial
statements
of American
Consolidated
as at and for
each of
the fiscal years
ended
on September
30, 2013 and
September
30, 2012 including
the notes thereto
and the reports
by American
Consolidated’s
auditors
thereon, and
the interim
consolidated
financial
statements for
American
Consolidated
for the period
ended March 31, 2014
including
the notes
thereto
have been,
and all financial
statements of
American
Consolidated
which are publicly
disseminated
by American
Consolidated
in respect
of any subsequent
periods
prior to the
Effective
Date will
be, prepared
in accordance
with IFRS
applied on
a basis consistent
with prior
periods
and present fairly,
in all material
respects, the assets,
liabilities (whether
accrued,
absolute, contingent
or otherwise),
consolidated
financial position
and results
of operations
of American
Consolidated
and its Subsidiaries
as of the respective
dates thereof
and its results of
operations
and cash
flows for
the respective
periods
covered thereby
(except
as may be
indicated expressly
in the notes
thereto).
There
are no outstanding
loans
made
by American
Consolidated
or any
of its
Subsidiaries
to any executive
officer
or director
of American
Consolidated.

 

		(b)	Since
September
30, 2013, neither
American
Consolidated
nor its
Subsidiaries
nor, to
American
Consolidated’s
knowledge,
any director,
officer,
employee,
auditor,
accountant
or representative
of American
Consolidated
or its Subsidiaries
has received
or otherwise
had or obtained
knowledge
of any complaint,
allegation,
assertion,
or claim, whether
written or
oral, regarding
the accounting
or auditing
practices, procedures,
methodologies
or methods
of American
Consolidated
or its Subsidiaries
or their respective
internal
accounting controls,
including any
complaint,
allegation, assertion,
or claim that
American
Consolidated
or its Subsidiaries
has engaged
in questionable
accounting
or auditing
practices, which
has not been resolved
to the satisfaction
of the audit committee
of the American
Consolidated
Board.

    	 

    	 

    

 

 

		(13)	Undisclosed
Liabilities.
Neither American
Consolidated
nor its
Subsidiaries
has any
liabilities
or obligations
 of 
any  nature, 
whether 
or  not
 accrued,
 contingent
 or otherwise,
except
for: (a)
liabilities and obligations
that are specifically
presented on the
audited consolidated
statements of
financial
position
of American
Consolidated
as of  September
30, 2013
(the
“American
Consolidated
Statement
of Financial
Position”)
or disclosed
in the notes
thereto;
or (b) liabilities
and obligations
incurred
in the Ordinary
Course, that
are not
and would not,
individually
or in
the aggregate
with  all 
other liabilities
 and obligations
of  American
Consolidated
and its Subsidiaries
(other
than those
disclosed
on the
American
Consolidated
Statement
of Financial
Position
and/or 
in the notes  to the
American
Consolidated
financial
statements),
reasonably
be expected to have a Material Adverse
Effect, or have a Material
Adverse Effect,
or, as a consequence
of the consummation
of the Arrangement,
have a Material
Adverse
Effect. Without
limiting
the foregoing,
the American
Consolidated
Statement of
Financial
Position
reflects
reasonable
reserves in
accordance
with IFRS
for contingent
liabilities
relating to pending
litigation
and other
contingent
obligations
of American
Consolidated
and its Subsidiaries.

 

		(14)	Interest in
Properties
and
Mineral
Rights.

 

		(a)	All of
American
Consolidated’s
and its  Subsidiaries’
 real 
properties (collectively,
and where
material,
the “Property”)
and all
of American
Consolidated’s
and its Subsidiaries’
mineral
interests
and rights
(including
any material claims,
mineral leases,
concessions,
exploration
licenses, exploitation
licenses  and
 prospecting
 permits)
 (collectively,
 and  where
material, 
the  “Mineral
Rights”),
 are 
set  out 
in  Schedule
 14(a)
 of the
American
Consolidated
Disclosure
Letter. Other
than the
Property
and the
Mineral Rights
set out in
Schedule
14(a)
of the
American
Consolidated
Disclosure
Letter, neither
American
Consolidated
nor its Subsidiaries,
owns or
has any interest in any
material real
property or
any material mineral
interests and rights.

 

		(b)	American
Consolidated
or one
of its
Subsidiaries
is the
recorded
holder
or has
rights
to acquire
pursuant
to legally
binding
and
enforceable
contracts,
as applicable,
the Mineral
Rights,
free and clear
of any
Encumbrances.

 

		(c)	All of
the Mineral
Rights
have been
properly
located and
recorded
in compliance
with applicable
Law and
are comprised
of valid and
subsisting
mineral
claims.

 

		(d)	The
Mineral
Rights
are in
good standing
under
applicable
Law and,
all work
required
to be performed
and filed
in respect
thereof
has been
performed
and filed,
all Taxes,
rentals,
fees, expenditures
and other
payments
in respect
thereof have
been paid or
incurred and all filings
in respect thereof
have been made.

 

		(e)	There
is no
material
adverse
claim against
or challenge
to the
title to
or ownership
of any
of the
Mineral
Rights.

    	 

    	 

    

 

 

		(f)	American
Consolidated
or a
Subsidiary
has the
exclusive
right
to deal
with
the Property
and all
of the
Mineral
Rights.

 

		(g)	Other
than as
disclosed
in the
American
Consolidated
Disclosure
Letter,
no Person
other than
American
Consolidated
and its
Subsidiaries
has any
interest in
the Property
or any
of the
Mineral
Rights
or the
production
or profits therefrom
or any royalty
in respect
thereof
or any right
to acquire
any such interest.

 

		(h)	Other
than as
disclosed
in the American
Consolidated
Disclosure
Letter,
there are
no back-in
rights,
earn-in
rights,
rights
of first
refusal
or similar
provisions
or rights
which would
affect American
Consolidated’s
or a Subsidiaries’
interest in
the Property
or any of
the Mineral
Rights.

 

		(i)	There
are no
material
restrictions
on the
ability of
American
Consolidated
and its
Subsidiaries
to use,
transfer
or exploit
the Property
or any
of the
Mineral
Rights,
except
pursuant
to the applicable
Law.

 

		(j)	Neither
American
Consolidated
nor any
of its
Subsidiaries
has received
any notice,
whether written
or oral,
from any
Governmental
Entity of
any revocation
or intention
to revoke
any interest
of American
Consolidated
or a Subsidiary
in any
of the
Mineral
Rights.

 

		(k)	American
Consolidated
and its Subsidiaries
have all
necessary
right
to conduct
the exploration
and development
work
on the
mineral
claims apprised
in the
Mineral
Rights
currently
conducted
or contemplated
by American
Consolidated
on such
mineral
claims.

 

		(15)	Mineral
Reserves
and Resources.
The mineral
reserves
and mineral
resources declared
by American
Consolidated,
as set
forth
in the American
Consolidated
Filings,
were prepared
in all
material
respects
in accordance
with sound
mining,
engineering,
geoscience
and other applicable
industry
standards and practices,
and in all material
respects
in accordance
with all applicable
Laws, including
the requirements
of National
Instrument 43-101
– Standards
of Disclosure
for Mineral
Projects. All
information
regarding
the Mineral
Rights,
including
all drill
results,
technical reports
and studies, that are
required
to be disclosed
at Law, have been
disclosed in
the American
Consolidated
Filings
on or
before the
date hereof..

 

		(16)	No
Option
on Assets.
No Person
has any
agreement
or option
or any
right
or privilege
capable 
of  becoming
 an 
agreement
 or 
option 
for  the
 purchase
 from
American
Consolidated
or any of its
Subsidiaries
of the material
assets of American
Consolidated
or its
Subsidiaries.

 

		(17)	Operational
Matters. Except
as would
not, individually
or in
the aggregate,
be reasonably
expected to
result
in a Material
Adverse
Effect:

 

		(a)	all rentals,
royalties,
overriding
royalty interests,
production
payments,
net profits,
interest
burdens,
payments
and obligations
due and
payable,
or

    	 

    	 

    

 

 

performable,
as the case
may be,
on or
prior
to the
date hereof
under,
with respect
to, or
on account
of, any
direct
or indirect
assets of
American
Consolidated
and its
Subsidiaries,
have been:
(A) duly
paid;
(B) duly
performed;
or (C)
provided for
prior to the date
hereof;
and

 

		(b)	all costs,
expenses,
and liabilities
payable
on or
prior
to the date
hereof
under 
the  terms 
of  any
 contracts
 and 
agreements
 to  which
American
Consolidated
or any of
its Subsidiaries
is directly
or indirectly
bound have
been properly and
timely
paid, except
for such
expenses that
are being
currently paid
prior
to delinquency
in the
Ordinary
Course.

 

		(18)	Employment
Matters.

 

		(a)	Neither
American
Consolidated
nor any
of its
Subsidiaries
has entered
into
any written
or oral
agreement
or understanding
providing for
severance
or termination
payments
to any director,
officer or
employee in
 connection
with the
termination
of their
position
or their
employment
as a
direct
result
of a change
in control
of American
Consolidated
(including
as a result
of the
Arrangement).

 

		(b)	Neither
American
Consolidated
nor
its Subsidiaries
(i)
is a party
to any
collective
bargaining
agreement,
or (ii)
is subject
to any
application
for certification
or,
to the
knowledge
of American
Consolidated,
threatened
or apparent
union-organizing
campaigns
for employees
not
covered
under
a collective
bargaining
agreement.

 

		(c)	Neither
American
Consolidated
nor its
Subsidiaries
is subject
to any
claim for
wrongful
dismissal,
constructive
dismissal
or any
other tort
claim, actual
or, to
the knowledge
of American
Consolidated,
threatened,
or any litigation
actual, or to the
knowledge
of American
Consolidated,
threatened,
relating
to employment
or termination
of employment
of employees
or independent
contractors.
No labour
strike, lock-out,
slowdown
or work stoppage
is pending
or threatened
against
or directly
affecting
American
Consolidated.

 

		(19)	Absence of
Certain
Changes
or Events.
Since
September
30, 2013:

 

		(a)	American
Consolidated
and its
Subsidiaries
have conducted
their respective
businesses
only
in the
Ordinary
Course and
consistent
with past
practice;

 

		(b)	no liability
or obligation
of any nature
(whether
absolute, accrued,
contingent
or otherwise)
which
has had or
is reasonably
likely to
have a Material
Adverse
Effect
has been
incurred;

 

		(c)	there
has not
been any
event, circumstance
or occurrence
which
has had or
is reasonably
likely to
give
rise to
a Material
Adverse
Effect;

    	 

    	 

    

 

 

		(d)	there
has not
been any
change
in the
accounting
practices used
by American
Consolidated
and its
Subsidiaries,
except
as disclosed
in the
 American
Consolidated
Filings;

 

		(e)	there
has not
been any
increase
in the
salary, bonus,
or other
remuneration
payable
to any
employees
or officers
of any
of American
Consolidated
or its Subsidiaries;

 

		(f)	there
has not
been any
redemption,
repurchase
or other
acquisition
of American
Consolidated
Shares
by American
Consolidated,
or any declaration,
setting aside
or payment
of any dividend
or other distribution
(whether
in cash, shares
or property)
with respect to the American
Consolidated
Shares;

 

		(g)	there
has not
been any
entering
into,
or an
amendment
of, any
Material
Contract;

 

		(h)	there
has not
been any
satisfaction
or settlement
of any
material
claims
or material
 liabilities
 that 
were  not
 reflected
 in 
American
 Consolidated’s
audited financial
statements, other
than the settlement
of claims or
liabilities
incurred in the
Ordinary
Course consistent
with past practice;
and

 

		(i)	except
for ordinary
course adjustments,
there has
not been
any increase
in the
salary,
bonus,
or other
remuneration
payable
to any officers
or senior
or executive
officers
of American
Consolidated
or its
Subsidiaries.

 

		(20)	Litigation.
There
is no claim,
action, proceeding
or investigation
pending
or, to
the knowledge
of American
Consolidated,
threatened
against
or relating
to American
Consolidated
or its Subsidiaries,
the business
of American
Consolidated
or any
of its Subsidiaries
or affecting
any of their properties
(including
mineral
projects),
or assets, before or
by any Governmental
Entity which,
if adversely
determined,
would have, or reasonably
could be expected
to have, a Material
Adverse
Effect or
prevent or materially
delay the consummation
of the Arrangement,
nor to the knowledge
of American
Consolidated
are there
any events
or circumstances
which could
reasonably
be expected to give
rise to any such
claim, action,
proceeding
or investigation
(provided
that this representation
shall not apply
to claims, actions,
proceedings,
or investigations
which may
arise after the date
of this Agreement
which do not
have a reasonable
prospect of
succeeding
or, if successful,
would not give
rise to, nor
reasonably
be expected to give rise
to, a Material
Adverse
Effect).
Neither American
Consolidated
nor any
of its
Subsidiaries
is subject
to any outstanding
order, writ,
injunction
or decree
which has had or
is reasonably
likely to have a Material
Adverse Effect
or which
would prevent
or materially
delay consummation
of the transactions
contemplated
by this Agreement.

 

		(21)	Taxes.

 

		(a)	Each
of American
Consolidated
and its Subsidiaries
has duly
and in
a timely
manner
made
or prepared
all Tax
Returns
required
to be made
or prepared

    	 

    	 

    

 

 

by
it, and duly
and in
a timely
manner
filed all
Tax Returns
required
to be filed by
it with
the appropriate
Governmental
Entity,
such Tax
Returns were
complete and correct in
all material respects
and American Consolidated
and each of its Subsidiaries
has paid all Taxes,
including installments
on account of Taxes
for the current
year required
by applicable Law,
which are
due and payable
by it whether or not
assessed by the appropriate Governmental
Entity. Since
such publication
date, no material
liability in
respect of
Taxes not
reflected in such
statements or
otherwise provided
for has been assessed,
proposed
to be assessed, incurred
or accrued,
other than
in the
Ordinary
Course.

 

		(b)	Each
of American
Consolidated
and its
Subsidiaries
has duly
and timely
withheld
all Taxes
and other
amounts required
by Law
to be withheld
by it (including
Taxes and
other
amounts required
to be withheld
by it in respect
of any amount
paid or credited
or deemed
to be paid or credited
by it to or for the benefit
of any Person)
and has duly and timely
remitted to the
appropriate Governmental
Entity such
Taxes
or other
amounts required
by Law to be remitted
by it.

 

		(c)	Each
of American
Consolidated
and its
Subsidiaries
has duly
and timely
collected all
amounts
on account
of any
sales, use or
transfer Taxes,
including
goods and
services,
harmonized
sales, provincial
and territorial
taxes and
state and local
taxes, required
by Law
to be collected
by it and has duly
and timely remitted
to the appropriate Governmental
Entity such
amounts required
by Law
to be remitted
by it.

 

		(d)	None
of American
Consolidated
nor any
of its
Subsidiaries
has made,
prepared
and/or
filed any
elections, designations
or similar
filings
relating to
Taxes
or entered
into any agreement
or other
arrangement
in respect
of Taxes
or Tax
Returns
that has effect
for any period
ending after
the Effective
Date.

 

		(e)	There
are no
proceedings,
investigations,
audits or
claims now
pending
or threatened
against
American
Consolidated
or any
of its
Subsidiaries
in respect
of any Taxes
and there are
no matters
under discussion,
audit or appeal
with any
Governmental
Entity
relating to Taxes.

 

		(f)	None
of American
Consolidated
nor any
of its
Subsidiaries
has acquired
property
from a
non-arm’s
length Person,
within
the meaning
of the
Tax Act:
(i) for consideration
the value of
which is less
than the fair market
value of
the property;
or (ii) as a contribution
of capital
for which no shares
were
issued by the
acquirer
of the property.

 

(g)         
For
the purposes
of the
Tax Act
and any
other
relevant
Tax purposes:

 

		(i)	American
Consolidated
 is  resident
 in Canada
 and  a  “taxable
Canadian
corporation”;
and

    	 

    	 

    

 

 

		(ii)	Each
of American
Consolidated’s
Subsidiaries
is resident
in the jurisdiction
in which
it was formed,
and is
not resident
in any other country.

 

		(h)	There
are no
Encumbrances
for Taxes
upon any
properties
or assets
of American
Consolidated
or any
of its
Subsidiaries
(other
than
Encumbrances
relating to
Taxes
not yet
due and
payable
and for
which adequate
reserves
have been recorded
on the
most recent
balance
sheet included
in American
Consolidated’s
audited financial
statements).

 

		(22)	Books
and Records.
The corporate
records
and minute
books  of
 American
Consolidated
and its
Subsidiaries
have been
maintained
in accordance
with all
applicable
Laws,
and the minute
books of
American
 Consolidated
 and its Subsidiaries
as provided
to Starcore
are complete
and accurate
in all material
respects. The
corporate minute
books for
American
Consolidated
and its Subsidiaries
contain
minutes
of all
meetings
and resolutions
of the
directors
and American
Consolidated
Securityholders
held. The
financial
books and records
and accounts of
American
Consolidated
and its Subsidiaries
in all material
respects: (a)
have been
maintained
in accordance
with good
business
practices
and in accordance
with IFRS and
with the accounting
principles
generally
accepted in
the country of
domicile of each
such entity,
on a basis consistent
with prior years;
(b) are stated in reasonable
detail and,
in the case of American
Consolidated’s
Subsidiaries,
accurately and fairly
reflect the transactions
and dispositions
of assets of American
Consolidated
and its Subsidiaries;
and (c) in the
case of American
Consolidated’s
Subsidiaries,
accurately
and fairly
reflect
the basis  for
American
Consolidated’s
consolidated
financial statements.

 

		(23)	Insurance.

 

		(a)	American
 Consolidated
 has  in 
place 
reasonable
 and  prudent
 insurance
policies appropriate
for  its 
size,  nature 
and  stage
 of 
development.
 All
premiums
payable
prior
to the
date hereof
under
such policies
of insurance
have been
paid and
neither
American
Consolidated
nor its
Subsidiaries
has failed to
make
a claim thereunder
on a
timely
basis.

 

		(b)	Each
of such
policies
and
other forms
of insurance
is in full
force and
effect on
the date
hereof
and American
Consolidated
will use
reasonable
commercial
efforts
to keep
them in
full force and
effect or
renew them
as appropriate through
the Effective
Date. No
written
(or to the
knowledge
of American
Consolidated
other) notice
of cancellation
or termination
has been received
by American
Consolidated
or its Subsidiaries
with respect
to any such
policy.

 

		(24)	Non-Arm’s
Length
Transactions.
Except
as disclosed
in the American
Consolidated
Filings
and for
employment
or employment
compensation
agreements
entered into
in the Ordinary
Course, there
are no
current contracts,
commitments,
agreements,
arrangements
or other
transactions
(including
relating
to indebtedness
by American
Consolidated
or its Subsidiaries)
between American
Consolidated
or its Subsidiaries

    	 

    	 

    

 

 

on
the one
hand,
and any
(i)
officer
or director
of American
Consolidated
or any
of its Subsidiaries,
(ii)
any holder
of record
or, to the knowledge
of American
Consolidated,
beneficial
owner of five
percent
or more of
the voting securities
of American
Consolidated,
or (iii) any affiliate
or associate of
any officer,
director
or beneficial
owner, on
the other hand.

 

		(25)	Environmental.
Except
for any
matters
that,
individually
or in
the
aggregate,
would not
have or
would
not
reasonably
be expected
to have
a Material
Adverse
Effect:

 

		(a)	Since
September
30, 2013 all
facilities
and operations
of American
Consolidated
and its
Subsidiaries
have been
conducted,
and are
now, in
compliance
with all Environmental
Laws;

 

		(b)	American
Consolidated
and its
Subsidiaries
are in
possession
of, and
in compliance
with,
all environmental
permits
that
are required
to own,
lease and
operate
the
Mineral
Rights
at its current
stage
of development
and to conduct
their respective
business as
they are
now being conducted;

 

		(c)	no
environmental,
reclamation
or closure
obligation,
demand,
notice,
work order
or other
liabilities
presently
exist
with respect
to any
portion
of any
currently
or formerly
owned,
leased,
used or
otherwise
controlled
property,
interests
and rights
or relating
to the
operations
and business
of American
Consolidated
and its
Subsidiaries
and,
to the knowledge
of American
Consolidated,
there
is no basis for any
such obligations,
demands,
notices,
work orders
or liabilities
to arise in the
future as a result
of any activity
in respect
of such
property,
interests,
rights,
operations
and business;

 

		(d)	neither
American
Consolidated
nor any
of its
Subsidiaries
is subject
to any proceeding,
application,
order or
directive
which
relates to environmental,
health or safety matters,
and which may
require
any material
work, repairs,
construction
or expenditures;

 

		(e)	to the
knowledge
of American
Consolidated,
there
are no
changes
in the
status, terms
or conditions
of any
environmental
permits
held by
American
Consolidated
or any
of its
Subsidiaries
or any
renewal,
modification,
revocation,
reassurance,
alteration,
transfer or
amendment
of any
such environmental
approvals,
consents,
waivers, permits,
orders
and exemptions,
or any
review
by, or approval
of, any
Governmental
Entity
of such environmental
approvals,
consents,
waivers, permits,
orders
and exemptions
that are required
in connection
with the
execution
or delivery
of this Agreement,
the consummation
of the
transactions
contemplated
herein
or the
continuation
of the
business
of American
Consolidated
or any
of its Subsidiaries
following
the Effective
Date;

 

		(f)	American
Consolidated
and its
Subsidiaries
have
made
available
to Starcore
all material
audits, assessments,
investigation
reports,
studies, plans,
regulatory
correspondence
and
similar
information
with respect
to environmental
matters;
and

    	 

    	 

    

 

 

		(g)	to the
knowledge
of American
Consolidated,
American
Consolidated
and
its Subsidiaries
are not
subject
to any
past or
present
fact, condition
or circumstance
that
could
reasonably
be expected
to result
in liability
under
any Environmental
Laws
that
would
individually
or in the
aggregate,
constitute
a Material Adverse
Effect.

 

		(26)	Restrictions
on Business
Activities. There
is no agreement,
judgement,
injunction,
order or
decree
binding upon
American
Consolidated
or any
of its
Subsidiaries
that has or could
reasonably
be expected
to have the effect
of prohibiting,
restricting
or materially
impairing
any business
practice of
American Consolidated
or any of its Subsidiaries,
any acquisition
of property
by American Consolidated
or any of its Subsidiaries,
or the conduct
of business
by American Consolidated
or any of its
Subsidiaries
as currently conducted
(including
following
the transaction
contemplated
by this Agreement)
other than
such agreements,
judgements,
injunctions,
orders or
decrees which
would not,
individually
or in the
aggregate,
reasonably
be expected
to have
a Material
Adverse
Effect.

 

		(27)	Material
Contracts.
American
Consolidated
and its
Subsidiaries
have performed
in all respects
all respective
obligations
required
to be performed
by them
to date under
the Material Contracts.
Neither American
Consolidated
nor any of its
Subsidiaries
is in breach
or default
under any Material
Contract
to which it
is a party or
bound, nor
does American
Consolidated
have knowledge
of any condition
that with the
passage of
time or the giving
of notice or
both would result
in such
a breach
or default,
except in
each case where
any such
breaches
or defaults
would not, individually
or in the aggregate,
reasonably be expected
to result in,
or result
in, a Material Adverse
Effect. Neither
American
Consolidated
nor any of
its Subsidiaries
knows of,
or has received
written notice of,
any breach or default
under (nor,
to the knowledge
of American
Consolidated,
does there exist
any condition
which with
the passage of
time or the
giving of
notice
or both
would result
in such a breach
or default
under)
any such
Material Contract
by any other
party thereto
except where
any such violation
or default
would not, individually
or in the aggregate,
reasonably
be expected to result
in, or result
in, a Material
Adverse Effect.
Prior
to the date hereof,
American
Consolidated
has made
available
to Starcore
true and
complete copies of
all of the Material
Contracts
of American
Consolidated.
All Material
Contracts are
legal, valid,
binding and in
full force
and effect and are enforceable
by American
Consolidated
(or its Subsidiaries,
as the case may
be) in accordance
with their respective
terms (subject
to bankruptcy,
insolvency
and other
applicable Laws
affecting creditors’
rights
generally,
and to general
principles
of equity)
and are the product
of fair and arms’
length negotiations
between the parties
thereto.

 

		(28)	Winding
Up. No
order has
been made,
petition
presented or
meeting
convened
for the
purpose of
winding
up of
American
Consolidated
or any of its
Subsidiaries,
or for
the appointment
of any
provisional
liquidator
or in
relation to
any other
process whereby
the business
is terminated and the
assets of
American
Consolidated
or any of its Subsidiaries
are distributed
amongst the creditors
and/or shareholders
or other
contributors,
and there are no proceedings
under any
applicable
insolvency,
bankruptcy, reorganization
or  similar
 laws  in
 any  relevant
 jurisdiction,
 and  no

    	 

    	 

    

 

 

events
have occurred
which,
under
applicable
Laws, would
be reasonably
likely to justify
any such
cases or
proceedings.

 

		(29)	Brokers.
None of
American
Consolidated,
any of
its Subsidiaries,
or any
of their respective
officers,
directors
or employees
has employed
any broker
or finder
or incurred
any liability
for 
any  brokerage
 fees,  commissions
 or 
finder’s
 fees  in
connection
with the transactions
contemplated
by this Agreement.

 

		(30)	Reporting
Issuer Status.
As of
the date
hereof, American
Consolidated
is a reporting
issuer  not
in default
(or
the equivalent)
under
the Securities
Laws
of each
of the Provinces
of British
Columbia,
Alberta and Ontario.

 

		(31)	Stock
Exchange
Compliance.
American
Consolidated
is in compliance
in all
material
respects
with the
applicable
listing
and corporate
governance
rules and
regulations
of the
TSXV.

    	 

    	 

    

 

SCHEDULE
D

 

REPRESENTATIONS
AND WARRANTIES
OF STARCORE

 

Except
as set forth
in the
correspondingly
numbered
paragraph
of the
Starcore
Disclosure
Letter,
or as
disclosed
in the
Starcore
Filings
filed before
the
date of
this Agreement,
Starcore
hereby
represents
and warrants
to American
Consolidated
as follows,
and acknowledges
and
agrees that
American
Consolidated
is relying
upon such
representations
and warranties
in connection
with the entering
into of
the Agreement:

 

		(1)	Organization
and Qualification.
Each
of Starcore
and Compañia
Minera
Peña
de Bernal,
S.A. de
C.V.
(the
“Starcore
Subsidiaries”)
is a corporation
duly incorporated
and validly
existing
under
all applicable
Laws
of its
respective
jurisdiction
of incorporation,
continuance
or creation
and has
full corporate
power
and
authority
to own its assets and
conduct
its business
as now owned
and conducted.
Starcore
and each of the
Starcore
Subsidiaries
is duly qualified
to carry on business
and is in
good standing
in each
jurisdiction
in which
the character
of its respective
properties
or the nature
of its
respective
activities makes
such qualification
necessary,
except
where the
failure to be so qualified
will not,
individually
or in the aggregate,
have a Material Adverse
Effect. True
and complete
copies of
the constating
documents
of Starcore
have been delivered
or made
available to American
Consolidated.

 

		(2)	Authority
Relative
to this
Agreement.
Starcore
has the
requisite
corporate power
and authority
to enter
into this
Agreement
and to perform
its obligations
hereunder.
The execution
and delivery
of this
Agreement
by Starcore
and the
consummation
by Starcore
of the transactions
contemplated by this
Agreement
have been duly
authorized
by the
board
of directors
of Starcore
and no
other corporate
proceedings
on the
part of
Starcore
or any of the
Starcore
Subsidiaries
are necessary
to authorize this Agreement.
This Agreement
has been duly
executed
and delivered
by Starcore
and constitutes
a valid and binding
obligation
of Starcore,
enforceable by
American
Consolidated
against Starcore
in accordance
with its terms,
except
as the enforcement
thereof may
be limited by bankruptcy,
insolvency
and other
applicable Laws
affecting
the enforcement
of creditors’
 rights
generally
and subject
to the qualification
that equitable
remedies
may be granted
only
in the discretion
of a court of
competent jurisdiction.

 

		(3)	No
Conflict;
Required
Filings
and
Consent.
The
execution
and
delivery
by Starcore
of this
Agreement
and
the
performance
by it of
its obligations
hereunder
and the
completion
of the
Arrangement
will not
violate, conflict
with or result
in a breach
of any
provision
of the
constating
documents
of Starcore
or those
of any of
the Starcore
Subsidiaries,
and except
as would not,
individually
or in the
aggregate,
have or
reasonably
be expected to have a 
Material Adverse
Effect, will
not: (a)
violate,
conflict
with or
result in
a breach
of: (i)
any agreement,
contract,
indenture,
deed of
trust, mortgage,
bond,
instrument,
Authorization,
license or
permit to which
Starcore
or any
of the
Starcore
Subsidiaries
is a party
or by which
Starcore
or any
of the
Starcore
Subsidiaries
is bound;
or (ii) any
Law to which
Starcore
or any of
the Starcore
Subsidiaries
is subject or
by which
Starcore
or any of
the Starcore

    	 

    	 

    

 

 

Subsidiaries
is bound;
(b)
give rise
to any
right
of termination,
or the
acceleration
of any
indebtedness,
under
any such
agreement,
contract,
indenture,
Authorization,
deed of
trust, mortgage,
bond,
instrument,
license
or permit;
or (c)
give rise
to any rights
of first
refusal
or rights
of first
offer,
trigger
any change
in control
or influence
provisions
or any
restriction
or limitation
under
any such agreement,
contract,
indenture,
Authorization,
deed of trust,
mortgage,
bond,
instrument,
license or
permit,
or result
in the
imposition
of any
Encumbrance,
charge
or lien
upon
any
of Starcore’s
assets (including
mineral
properties)
or the
assets of
any
of the
Starcore
Subsidiaries
(including
mineral
properties).
Other than
Starcore
Shareholder
Approval, if
required,
and conditional
listing
approval
of the TSX
of the Starcore
Shares
issued as
Consideration,
no authorization,
consent
or approval
of, or
filing with,
any Governmental
Entity or
any court
or other
authority
is necessary
on the part
of Starcore
for the
consummation
by Starcore
of its obligations
in connection
with the Arrangement
under
this Agreement
or for the
completion
of the
Arrangement
not to cause
or result
in any loss of
any rights
or assets or any
interest
therein
held by Starcore
or any of
the Starcore
Subsidiaries
in any material
assets or properties,
except for
such Authorizations,
consents,
approvals and
filings
as to which the
failure to obtain
or make
would not,
individually
or in the aggregate,
prevent or
materially
delay
consummation
of the
Arrangement.

 

		(4)	Regulatory
Filings.
The Starcore
Filings
have complied
in all
material
respects
with all
requirements
of applicable
Law.
None of
the Starcore
Filings,
at the time
filed or as subsequently
amended,
contained
any untrue
statement or
a material
fact or
omitted to
state a material
fact required
to be stated
therein
or necessary in
order to
make
the statements
made
therein, in
light of the
circumstances
under which
they were
made, not
misleading.

 

		(5)	Compliance
with Laws.

 

		(a)	The
operations
of Starcore
and the Starcore
Subsidiaries
have been
and are
now conducted
in compliance
with all
Laws
of each
jurisdiction,
the Laws
of which
have been
and are
now applicable
to the
operations
of Starcore
or of
any of
the Starcore
Subsidiaries
and none of Starcore
or any of the
Starcore
Subsidiaries
has received
any notice of
any alleged
violation of
any such
Laws, other
than non-compliance
or violations
which, individually
or in the
aggregate, would
not have
a Material Adverse
Effect.

 

		(b)	None
of Starcore
or any
of the
Starcore
Subsidiaries
is in conflict
with,
or in default
(including
cross
defaults)
under
or in
violation
of: (A)
its notice
of articles
or articles
or equivalent
organizational
documents;
or (B)
any agreement
or understanding
to which
it or
by which
any of
its properties
or assets in which
it has a controlling
interest
or an option
to acquire
a controlling
interest
is bound
or affected, except
for failures which,
individually
or in the
aggregate,
would not
have a Material Adverse
Effect.

 

		(6)	Starcore
Authorizations.
Starcore
and the
Starcore
Subsidiaries
have obtained
all authorizations
necessary
for the
ownership,
operation,
development,
maintenance,
or use
of the
material
assets of
Starcore
or the Starcore
Subsidiaries
or otherwise
in

    	 

    	 

    

 

 

connection
with the
material
business
or operations
of Starcore
or the
Starcore
Subsidiaries
and such
authorizations
are in
full force
and effect.
Starcore
and the Starcore
Subsidiaries
have fully
complied
with
and are
in compliance
with all
authorizations,
except,
in each case,
for such
non-compliance
which,
individually
or in the aggregate,
would not
have a Material
Adverse Effect.
There is
no action, investigation
or proceeding
pending
or, to the knowledge
of Starcore,
threatened regarding
any of the
authorizations.
None of Starcore
or any of the
Starcore
Subsidiaries
has received
any notice, whether
written or
oral, of revocation
or non-
renewal of
any such authorizations,
or of any
intention of
any Person
to revoke or
refuse to renew
any of such
authorizations,
except
in each case, for revocations
or non-renewals
which, individually
or in
the aggregate,
would not have a
Material Adverse
Effect and,
to the knowledge
of Starcore,
all such authorizations
continue
to be effective
in order
for Starcore
and the Starcore
Subsidiaries
to continue
to conduct
their respective
businesses
as they are currently
being conducted.

 

		(7)	Capitalization
and
Listing.

 

		(a)	The
authorized
share
capital
of Starcore
consists
of an
unlimited
number
of Starcore
Shares.
As at the
date of
this Agreement
there are:
(A)
143,515,465 Starcore
Shares
validly
issued and
outstanding
as fully-paid
and non-
assessable Starcore
Shares; and
(B) outstanding
options
providing
for the issuance
of 16,025,000
Starcore
Shares upon
the exercise
thereof; and
(C) outstanding
common share
purchase warrants
providing
for the
issuance
of nil Starcore
Shares
upon the
exercise
thereof.
[Other
than as
disclosed
in the Starcore
Disclosure
Letter],
there are
no warrants, conversion
privileges,
calls or other
rights, shareholder
rights
plans, agreements,
arrangements,
commitments,
or obligations
of Starcore
or any
of the
Starcore
Subsidiaries
to issue or sell
any Starcore
Shares or
of any of
the Starcore
Subsidiaries
or securities or
obligations
of any kind convertible
into, exchangeable
for or otherwise
carrying the right
or obligation
to acquire
any Starcore
Shares or
any of the Starcore
Subsidiaries,
and there
are no outstanding
stock appreciation
rights,
phantom
equity or
similar rights,
agreements,
arrangements
or commitments
of Starcore
or any of
the Starcore
Subsidiaries,
and no Person
is entitled to any pre-emptive
or other similar
right granted
by Starcore
or any of the
Starcore
Subsidiaries.

 

		(b)	Other
than as
disclosed
in the Starcore
Filings,
there are
no outstanding
contractual
obligations
of Starcore
or any
of the
Starcore
Subsidiaries
to repurchase,
redeem
or otherwise
acquire
any Starcore
Shares
or any
shares
of any of
the Starcore
Subsidiaries.
No Subsidiary
of Starcore
owns any
Starcore
Shares.

 

		(c)	No
order ceasing
or suspending
trading
in securities
of Starcore
nor prohibiting
the sale
of such
securities
has been
issued
and is
outstanding
against
Starcore
or its directors,
officers
or promoters.

    	 

    	 

    

 

 

		(8)	Shareholder
 and  Similar
 Agreements.
 Starcore
 is  not
 party
 to  any
 shareholder,
pooling,
voting
trust or
other  similar
 agreement
 relating
 to  the
 issued
 and outstanding
Starcore
Shares
or the
shares
of any
of the
Starcore
Subsidiaries.

 

		(9)	Reports.
Starcore
has filed with
all applicable
Governmental
Entities
true and complete
copies of
the Starcore
Filings
that Starcore
is required
to file
therewith. Starcore
Filings
at the time
filed: (i)
did not
contain
any untrue
statement
of a material
fact or
omit to
state a
material fact
required
to be stated
therein
or necessary
to make the statements
therein, in
the light of
the circumstances
under which
they were made,
not misleading,
and (i)
complied in all material
respects
with the
requirements
of applicable
Securities Laws.
Starcore
has not filed any confidential
material change
report with
any Governmental
Entity which
at the date hereof
remains confidential.

 

		(10)	Financial
Statements.

 

		(a)	The
audited consolidated
financial
statements
of Starcore
as at and
for each
of the
fiscal
years
ended
July 31,
2013 and July
31, 2012,
including
the notes
thereto and
the reports
by Starcore’s
auditors
thereon,
and the
interim consolidated
financial
statements for
Starcore
for the period
ended April
30, 2014 including
the notes thereto
have been, prepared
in accordance with
IFRS applied
on a basis consistent
with all applicable
Laws and present fairly,
in all material
respects,
the assets, liabilities
(whether accrued,
absolute, contingent
or otherwise),
consolidated
financial
position and
results of
operations
of the respective
businesses as of
the respective
dates thereof
and its results
of operations
and cash flows for
the respective
periods
covered thereby
(except
as may be indicated
expressly in the notes
thereto).

 

		(b)	Since
July 31, 2013, neither
Starcore
nor any of
the Starcore
Subsidiaries
nor,
to Starcore’s
knowledge,
any director,
officer,
employee,
auditor,
accountant
or representative
of Starcore
or any
of the
Starcore
Subsidiaries
has received
or  otherwise
 had or obtained
knowledge
of any complaint,
allegation,
assertion, or
 claim,
 whether 
written 
or  oral,
regarding
 the accounting
 or auditing
practices,
procedures,
methodologies
or methods
of Starcore
or any
of the Starcore
Subsidiaries
or their respective
internal
accounting controls,
including
any complaint,
allegation, assertion,
or claim that Starcore
or any of
the Starcore
Subsidiaries
has engaged
in questionable
accounting
or auditing
practices, which
 has not
been resolved
to the satisfaction
of the
audit
committee of the
Starcore
Board.

 

		(11)	Undisclosed
Liabilities.
Neither Starcore
nor any
of the
Starcore
Subsidiaries
has any
liabilities
or obligations
of any
nature, whether
or not
accrued,
contingent
or otherwise,
except
for: (a)
liabilities
and obligations
that are
specifically
presented on
the audited
consolidated
statements of
financial
position of
Starcore
as of July
31, 2013 (the “Starcore
Statement
of Financial
Position”)
or disclosed
in the notes thereto;
or (b)
liabilities and
obligations
incurred in
the Ordinary Course,
that are not and would
not, individually
or in the
aggregate
with all other
liabilities and
obligations
of Starcore
and the
Starcore
Subsidiaries
(other
than those
disclosed
on

    	 

    	 

    

 

 

the
Starcore
Statement
of Financial
Position
and/or
in the
notes to
the
Starcore
financial
statements),
reasonably
be expected
to have
a Material
Adverse
Effect, or
have a Material Adverse
Effect, or,
as a consequence
of the consummation
of the
Arrangement,
have a
Material
Adverse
Effect.
Without limiting
the foregoing,
the Starcore
Statement
of Financial
Position
reflects
reasonable
reserves
in accordance
with IFRS
for contingent
liabilities relating
to pending
litigation
and other
contingent
obligations
of Starcore
and the Starcore
Subsidiaries.

 

		(12)	Interest in
Properties
and
Mineral
Rights.

 

		(a)	All of
Starcore’s
and the
Starcore
Subsidiaries’
real
properties
(collectively,
and where
material,
the “Starcore
Property”)
and all
of Starcore’s
and the Starcore
Subsidiaries’
mineral
interests
and rights
(including
any material
claims, mineral
leases, concessions,
exploration
licenses, exploitation
licenses and prospecting
permits)
(collectively,
and where
material, the “Starcore
Mineral Rights”),
are disclosed
in the Starcore
Filings.
Other than
the Starcore
Property
and the Starcore
Mineral Rights
disclosed
in the Starcore
Filings,
neither Starcore
nor the Starcore
Subsidiaries,
owns or
has any interest in
any material
real property
or any material
mineral
interests and
rights.

 

		(b)	Starcore
or one
of the
Starcore
Subsidiaries
is the recorded
holder
of the Starcore
Mineral
Rights
and all
of the
Starcore
Mineral
Rights
have been properly
recorded
and are
comprised of
valid and subsisting
concessions.

 

		(c)	The
Starcore
Mineral
Rights
are in
good standing
under
applicable
Law and,
all  work
required
to be performed
and filed in
respect
thereof has
been
performed
and filed, all Taxes,
rentals, fees,
expenditures
and other payments
in respect
thereof
have been paid
or incurred and
all filings in
respect thereof
have been made.

 

		(d)	There
is no
material
adverse
claim against
or challenge
to the
title to or
ownership
of any
of the
Starcore
Mineral
Rights.

 

		(e)	Except
as disclosed
in the
Starcore
Filings,
no Person
other than
Starcore
and the Starcore
Subsidiaries
has any
interest
in the
Starcore
Property
or any
of the 
Starcore
Mineral
Rights or
the production or
profits therefrom
or any royalty in
respect
thereof
or any
right to acquire
any such
interest.

 

		(f)	Except
as disclosed
in Starcore’s
Filings,
there are
no back-in
rights,
earn-in
rights,
rights
of first
refusal
or similar
provisions
or rights
which would
affect Starcore’s
or a
Subsidiary’s
interest
in the
Starcore
Property
or any
of the Starcore
Mineral Rights.

 

		(g)	There
are no
material
restrictions
on the
ability of
Starcore
and the Starcore
Subsidiaries
to use,
transfer
or exploit
the Starcore
Property
or any
of the
Starcore
Mineral
Rights,
except pursuant
to the applicable
Law.

    	 

    	 

    

 

 

		(h)	Neither
Starcore
nor any
of the
Starcore
Subsidiaries
has received
any notice,
whether written
or oral,
from any
Governmental
Entity of
any revocation
or intention
to revoke
any interest of
Starcore
or a Subsidiary
in any of the
Starcore
Mineral
Rights.

 

		(i)	Starcore
and the
Starcore
Subsidiaries
have all
surface rights
necessary
to conduct
exploration
and mining
activities
as currently
conducted
by Starcore
and the
Starcore
Subsidiaries.

 

		(13)	Mineral
Reserves 
and  Resources.
 The 
mineral
 reserves
 and  mineral
 resources
declared
by Starcore,
as set
forth in
the Starcore
Filings,
were prepared
in all material
respects
in accordance
with  sound
 mining,
 engineering,
 geoscience
 and  other
applicable industry
standards
and practices,
and in all material
respects in accordance
with all applicable
Laws, including
the requirements
of National
Instrument 43-101
– Standards
of Disclosure
for Mineral
Projects.
All information
regarding
the Starcore
Mineral Rights,
including
all drill results,
technical reports
and studies, that are
required
to be disclosed
at Law, have been disclosed
in the Starcore
Filings
on or
before
the date hereof.

 

		(14)	No
Option
on Assets.
No Person
has any
agreement
or option
or any
right
or privilege
capable
of becoming
an agreement
or option
for the
purchase
from
Starcore
or any
of the
Starcore
Subsidiaries
of the
material
assets of
Starcore.

 

		(15)	Operational
Matters. Except
as would
not, individually
or in
the aggregate,
be reasonably
expected to
result
in a Material
Adverse
Effect:

 

		(a)	all rentals,
royalties,
overriding
royalty
interests,
production
payments,
net profits, interest
burdens,
payments
and obligations
due and
payable,
or performable,
as the
case may
be, on or
prior to
the date
hereof under,
with respect
to, or
on account of,
any direct or
indirect
assets of Starcore
and the Starcore
Subsidiaries,
have been: (A)
duly paid;
(B) duly
performed;
or (C)
provided for
prior for
the date
hereof; and

 

		(b)	all costs,
expenses, and
liabilities
payable
on or
prior
to the date
hereof under
the terms
of any
contracts
and agreements
to which
Starcore
or any
of the
Starcore
Subsidiaries
is directly
or indirectly
bound
have been
properly
and timely paid,
except
for such
expenses that
are being
currently paid
prior
to delinquency
in the Ordinary
Course.

 

		(16)	Absence
of Certain
Changes
or Events.
Since July
31, 2013,
except
as set
out in
the Starcore
Filings:

 

		(a)	Starcore
and the Starcore
Subsidiaries
have conducted
their respective
businesses
only
in the
Ordinary
Course and
consistent
with past
practice;

 

		(b)	no liability
or obligation
of any
nature
(whether
absolute,
accrued,
contingent
or  otherwise)
which
has had
or is 
reasonably
 likely 
to  have  a 
Material
Adverse
Effect has
been incurred;

    	 

    	 

    

 

 

		(c)	there
has not
been any
event, circumstance
or occurrence
which
has had
or is reasonably
likely
to give
rise to
a Material
Adverse
Effect;

 

		(d)	there
has not
been any
change
in the
accounting
practices
used by
Starcore
and the
Starcore
Subsidiaries;

 

		(e)	there
has not
been any
redemption,
repurchase
or other
acquisition
of Starcore
Shares
by Starcore,
or any
declaration,
setting aside
or payment
of any dividend
or other
distribution
(whether in
cash, shares
or property)
with respect
to the Starcore
Shares, except
as disclosed
in the Starcore
Disclosure
Letter; and

 

		(f)	there
has not
been any
satisfaction
or settlement
of any
material
claims
or material
liabilities
that were
not reflected
in Starcore’s
audited financial
statements, other
than the
settlement of
claims
or liabilities
incurred in the Ordinary
Course consistent
with past
practice.

 

		(17)	Litigation.
There
is no claim,
action, proceeding
or investigation
pending
or, to
the knowledge
of Starcore,
threatened against
or relating
to Starcore
or any
of the
Starcore
Subsidiaries,
the
business of
Starcore
or any
of the
Starcore
Subsidiaries
or affecting
any of
their properties
(including
mineral
projects),
assets, before
or by
any Governmental
Entity which,
if adversely
determined,
would have,
or reasonably
could be expected to have,
a Material Adverse
Effect or prevent
or materially
delay the consummation
of the
Arrangement,
nor to knowledge
of Starcore
are there any events
or circumstances
which could
reasonably
be expected
to give
rise to
any such
claim, action,
proceeding
or investigation
(provided
that this representation
shall not apply
to claims, actions,
proceedings,
or investigations
which may
arise after the
date of
this Agreement
which do
not have a
reasonable
prospect
of succeeding
or, if
successful, would
not give rise
to, nor reasonably
be expected to give rise
to, a Material
Adverse
Effect).
Neither Starcore
nor any
of the Starcore
Subsidiaries
is subject to any outstanding
order, writ,
injunction
or decree
which has
had or is reasonably
likely to
have a
Material Adverse
Effect or
which
would prevent
or materially
delay consummation
of the transactions
contemplated
by this Agreement.

 

		(18)	Taxes.

 

		(a)	Each
of Starcore
and the
Starcore
Subsidiaries
has duly
and in a
timely manner
made
or prepared
all Tax
Returns
required
to be made
or prepared
by it, and
duly and
in a timely
manner
filed all
material Tax
Returns
required
to be filed
by it with
the appropriate
Governmental
Entity,
such Tax
Returns
were complete and
correct in
all material
respects
and Starcore
and each
of the Starcore
Subsidiaries
has paid all Taxes,
including
installments
on account
of Taxes
for the
current year
required
by applicable
Law,
which are
due and payable
by it whether or not
assessed by the appropriate Governmental
Entity.
Since such
publication
date, no material
liability
in respect of
Taxes not
reflected
in such
statements
or otherwise
provided for
has been assessed,
proposed to be assessed, incurred
or accrued,
other than
in the Ordinary
Course.

    	 

    	 

    

 

 

		(b)	There
are no
proceedings,
investigations,
audits
or claims
now pending
or threatened
against
Starcore
or any
of the
Starcore
Subsidiaries
in respect
of any
Taxes
and there
are no matters
under discussion,
audit or
appeal with any Governmental
Entity relating
to Taxes.

 

		(c)	For
the purposes
of the
Tax Act
and any
other
relevant
Tax purposes:

 

		(i)	Starcore
is resident
in Canada
and
a “taxable
Canadian
corporation”;
and

 

		(ii)	Each of
Starcore’s
Subsidiaries
is resident
in the
jurisdiction
in which
it was formed,
and
is not
resident
in any
other
country.

 

		(d)	There
are no
Encumbrances
for Taxes
upon any
properties
or assets
of Starcore
 or 
any  of 
the  Starcore
 Subsidiaries
 (other
 than
 Encumbrances
relating to
Taxes not
yet due
and payable
and for
which adequate
reserves have been
recorded
on the
most recent
balance
sheet included
in Starcore’s
audited financial
statements).

 

		(19)	Books
and Records.
The
corporate records
and minute
books of
Starcore
and the Starcore
Subsidiaries
have been
maintained
in accordance
with all
applicable
Laws. The
corporate minute
books for
Starcore
and the Starcore
Subsidiaries
contain
minutes
of all
meetings
and resolutions
of the directors
and Starcore
Securityholders
held.

 

		(20)	Insurance.

 

		(a)	Starcore
has in
place
insurance
policies
appropriate
for its
size, nature
and stage of
development.
All premiums
payable
prior
to the date
hereof
under
such policies
of insurance
have been paid
and neither
Starcore
nor any of
the Starcore
Subsidiaries
has failed to make
a claim thereunder
on a timely
basis.

 

		(b)	Each
of such
policies
and
other forms
of insurance
is in
full force
and effect
on the
date
hereof
and Starcore
will use
reasonable
commercial
efforts
to keep them
in full
force and
effect
or renew
them as appropriate
through
the Effective Date.
No written
(or to the
knowledge
of Starcore
other) notice
of cancellation
or termination
has been received
by Starcore
or any of the Starcore
Subsidiaries
with respect
to any such policy.

 

		(21)	Non-Arm’s
Length
Transactions.
Except
as disclosed
in the
Starcore
Filings,
the Starcore
Disclosure
Letter
and for
employment
or employment
compensation
agreements
and incentive
stock option
agreements
entered
into in the
Ordinary Course,
there are no current
contracts,
commitments,
agreements,
arrangements
or other
transactions
(including
relating to
indebtedness
by Starcore
or any of
the Starcore
Subsidiaries)
between Starcore
or any of the Starcore
Subsidiaries
on the one
hand, and any
(i) officer
or director
of Starcore
or any of the
Starcore
Subsidiaries,

(ii)
any holder
of record
or,
to the
knowledge
of Starcore,
beneficial
owner
of five

    	 

    	 

    

 

 

percent
or more
of the
voting securities
of Starcore,
or (iii)
any affiliate
or associate
of any officer,
director
or beneficial
owner,
on the
other
hand.

 

		(22)	Environmental.
Except
for any
matters
that,
individually
or in
the
aggregate,
would
not
have or
would
not
reasonably
be expected
to have
a Material
Adverse
Effect:

 

		(a)	Since
July 31,
2013, all
facilities
and
operations
of Starcore
and the
Starcore
Subsidiaries
have
been conducted,
and
are now,
in compliance
with all
Environmental
Laws;

 

		(b)	Starcore
and the
Starcore
Subsidiaries
are in
possession
of, and
in compliance
with,
all environmental
permits
that
are required
to own,
lease and
operate
the Starcore
Property
and Starcore
Mineral
Rights
at its current
stage of
development
and
to conduct
their respective
business
as they
are now
being conducted;

 

		(c)	no
environmental,
reclamation
or closure
obligation,
demand,
notice, work
order
or other
liabilities
presently
exist with
respect
to any
portion
of any
currently
or formerly
owned,
leased,
used or
otherwise
controlled
property,
interests
and rights
or relating
to the
operations
and
business
of Starcore
and the Starcore
Subsidiaries;

 

		(d)	to the
knowledge
of Starcore,
there are
no changes
in the
status, terms
or conditions
of any
environmental
permits
held by Starcore
or any
of the
Starcore
Subsidiaries
or any renewal,
modification,
revocation,
reassurance,
alteration, transfer
or amendment
of any such environmental
approvals, consents,
waivers, permits,
orders and exemptions,
or any review
by, or approval
of, any
Governmental
Entity of
such environmental
approvals, consents,
waivers, permits,
orders
and exemptions
that are required
in connection
with the execution
or delivery
of this
Agreement,
the consummation
of the transactions
contemplated
herein or
the continuation
of the business
of Starcore
or any of the Starcore
Subsidiaries
following
the Effective Date.

 

		(e)	Starcore
and the
Starcore
Subsidiaries
have made
available
to American
Consolidated
all material
audits, assessments,
investigation
reports,
studies, plans,
regulatory
correspondence
and similar
information
with respect
to environmental
matters;
and

 

		(f)	Starcore
and the
Starcore
Subsidiaries
are not
subject
to any
present
fact, condition
or circumstance
that could
reasonably
be expected
to result
in liability under
any Environmental
Laws
that would
individually
or in
the aggregate,
constitute
a Material
Adverse
Effect.

 

		(23)	Restrictions
on Business
Activities. There
is no agreement,
judgement,
injunction,
order or decree
binding upon
Starcore
or any of
the Starcore
Subsidiaries
that has or
could  reasonably
be expected
to have the
effect of
prohibiting,
 restricting
 or materially
impairing
any business
practice of Starcore
or any of the
Starcore

    	 

    	 

    

 

 

Subsidiaries,
any acquisition
of property
by Starcore
or any
of the
Starcore
Subsidiaries,
or the
conduct
of business
by Starcore
or any
of the
Starcore
Subsidiaries
as currently
conducted
(including
following
the transaction
contemplated
by this Agreement)
other than
such agreements,
judgements,
injunctions,
orders or
decrees which
would not,
individually
or in the
aggregate, reasonably
be expected to have a Material
Adverse
Effect.

 

		(24)	Material
Contracts.
Starcore
and the
Starcore
Subsidiaries
have performed
in all
respects
all respective
obligations
required
to be performed
by them
to date
under
the Material
Contracts.
Neither Starcore
nor
any of
the Starcore
Subsidiaries
is in breach
or default
under
any Material
Contract
to which
it is a
party
or bound,
nor does
Starcore
have knowledge
of any
condition
that with the
passage of
time or
the giving
of notice
or both would
result in such
a breach or
default, except
in each case where
any such
breaches
or defaults
would
not,
individually
or in the
aggregate,
reasonably
be expected to
result
in, or
result
in, a Material
Adverse Effect.
Neither
Starcore
nor any
of the Starcore
Subsidiaries
knows
of, or has
received written
notice
of, any breach
or default
under
(nor,
to the knowledge
of Starcore,
does there
exist any
condition
which
with the
passage of time
or the
giving
of notice
or both
would result
in such
a breach
or default
under)
any such
Material Contract
by any other
party
thereto
except where
any such
violation or
default would
not, individually
or in the
aggregate,
reasonably
be expected to result
in, or result
in, a Material
Adverse
Effect.

 

		(25)	Reporting
Issuer Status.
As of
the date
hereof,
Starcore
is a reporting
issuer
not in
default
(or
the equivalent)
under
the Securities
Laws of
each of
the Provinces
of British
Columbia,
Alberta
and Ontario.

 

		(26)	Stock
Exchange
Compliance.
Starcore
is in
compliance
in all
material
respects
with the
applicable
listing
and corporate
governance
rules
and regulations
of the
TSX.

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