Document:

EXHIBIT 10.1

 

SECURITIES PURCHASE
AGREEMENT

 

 

This SECURITIES PURCHASE
AGREEMENT (the “Agreement”), dated as of February 21, 2017, by and between EL CAPITAN PRECIOUS METALS, INC.,
a Nevada corporation, with headquarters located at 5871 Honeysuckle Road, Prescott, AZ 86305 (the “Company”), and
Lucas Hoppel, an individual, with its address at 295 Palmas Inn Way, Suite 130, PMB 346, Humacao, PR 00791 (the “Buyer”).

 

WHEREAS:

 

A.            
The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “1933 Act”);

 

B.            
Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement,
a convertible note of the Company, in the form attached hereto as Exhibit A, in the aggregate principal amount of up to
US$550,000.00, or such lesser amount based on actual Advances thereunder (together with any
note(s) issued in replacement thereof or otherwise with respect thereto in accordance with the terms thereof, the “Note”),
convertible into shares of common stock, of the Company (the “Common Stock”), upon the terms and subject to the limitations
and conditions set forth in such Note.

 

C.            
The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is
set forth immediately below its name on the signature pages hereto; and

 

NOW THEREFORE, the
Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.            PURCHASE AND SALE OF NOTE.

 

a.    
Purchase of Note. On the Initial Closing Date (as defined below), the Company shall issue the Note to the Buyer and
the Buyer agrees to make an initial advance of principal under the Note (the “Initial Advance”) in the amount set forth
on the signature page hereto, subject to the express terms of the Note. At any time on or before the maturity date of the Note,
the Company may request that the Buyer make one or more additional advances under the Note (each an “Additional Advance”
and together with the Initial Advance, the “Advances” and each an “Advance”) in amounts in the aggregate,
and when added to amount of the Initial Advance, equals $500,000. In order to reflect an agreed-upon original issue discount, the
outstanding principal amount of the Note attributable to each Advance shall be 110% of the amount of such Advance (i.e., if Holder
funds a $100,000 Advance, then the outstanding principal amount of the Note attributable to such Advance will be $110,000). Holder
may elect, in its sole discretion, to make any such Additional Advance, but shall not be obligated to do so. In connection with
each Advance, the Company shall issue to the Buyer a warrant, in substantially the form attached as Exhibit B, to purchase a number
of shares of its Common Stock equal to fifty percent (50%) of the number of shares of Common Stock issuable upon conversion of
the principal amount of the corresponding Advance as of the applicable Closing Date.

 

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b.    
Form of Payment. On the Initial Closing Date (as defined below), the Buyer shall pay the Initial Advance by wire
transfer of immediately available funds, in accordance with the Company’s written wiring instructions, against delivery of
the Note, and the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer. If the Buyer decides,
in his sole discretion, to make one or more Additional Advances under the Note, as further described in the Note, then such Additional
Advances shall be paid in accordance with the Company’s written wiring instructions as well.

 

c.    
Closing Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 6 and
Section 7 below, the date of the issuance the Note pursuant to this Agreement and the payment of the Initial Advance (the “Initial
Closing”) shall occur on February 21, 2017, or such other mutually agreed upon date (the “Initial Closing Date”)
at such location as may be agreed to by the parties. Any Additional Advances under the Note shall occur at such times and at such
place(s) as the parties shall mutually agree (each an “Additional Closing” and together with the Initial Closing, the
“Closings” and each a “Closing”)(the date of each Closing is referred to herein as a “Closing Date”).

 

2.           
REPRESENTATIONS AND WARRANTIES OF THE BUYER. The Buyer represents and warrants to the Company that:

 

a.    
Investment Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable
upon conversion of or otherwise pursuant to the Note (including, without limitation, such additional shares of Common Stock, if
any, as are issuable (i) on account of interest on the Note or (ii) under any other provision in the Note, such shares
of Common Stock being collectively referred to herein as the “Conversion Shares” and, collectively with the Note, the
“Securities”) for its own account and not with a present view towards the public sale or distribution thereof, except
pursuant to sales registered or exempted from registration under the 1933 Act; provided, however, that by making
the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves
the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under
the 1933 Act.

 

b.    
Accredited Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a)
of Regulation D (an “Accredited Investor”).

 

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c.    
Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon
specific exemptions from the registration requirements of United States federal and state securities laws and that the Company
is relying upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and
the eligibility of the Buyer to acquire the Securities.

 

d.    
Information. The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue
to be, furnished with all materials relating to the business, finances and operations of the Company and materials relating to
the offer and sale of the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any,
have been, and for so long as the Note remain outstanding will continue to be, afforded the opportunity to ask questions of the
Company. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will
not disclose such information unless such information is disclosed to the public prior to or promptly following such disclosure
to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives
shall modify, amend or affect Buyer’s right to rely on the Company’s representations and warranties contained in Section
3 below. The Buyer understands that its investment in the Securities involves a significant degree of risk. The Buyer is not aware
of any facts that may constitute a breach of any of the Company’s representations and warranties made herein.

 

e.    
Governmental Review. The Buyer understands that no United States federal or state agency or any other government
or governmental agency has passed upon or made any recommendation or endorsement of the Securities.

 

f.     
Transfer or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not
being registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the
Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered
to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions
of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant
to an exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred
to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”))
of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited
Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under
the 1933 Act (or a successor rule) (“Regulation S”), and the Buyer shall have delivered to the Company, at the cost
of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions,
which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only
in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances
in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in
the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder;
and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any
state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the
foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a bona
fide margin account or other lending arrangement.

 

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g.    
Legends. The Buyer understands that the Note and Conversion Shares, until such time as the Conversion Shares have
been registered under the 1933 Act or may be sold pursuant to Rule 144 or Regulation S, or other valid exemption, without any restriction
as to the number of securities as of a particular date that can then be immediately sold, will bear a restrictive legend in substantially
the following form (and a stop-transfer order may be placed against transfer of the certificates for such Securities):

 

“NEITHER THE ISSUANCE AND SALE
OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES.”

 

The legend set forth above
shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it is stamped,
if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an effective
registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation S without any restriction
as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides the Company
with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect
that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion shall be accepted
by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities, including those represented by
a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any.
In the event that the Company does not accept an opinion of counsel reasonably provided by the Buyer with respect to the transfer
of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline, the Buyer may declare
it to be an Event of Default pursuant to Section 2 of the Note.

 

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h.    
Authorization; Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed
and delivered on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in
accordance with its terms.

 

i.     
Residency. The Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the
signature pages hereto.

 

3.           
REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company represents and warrants to the Buyer that, except as disclosed
in the SEC Documents, that:

 

a.    
Organization and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation
duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full
power and authority (corporate and other) to own, lease, use and operate its properties and to carry on its business as and where
now owned, leased, used, operated and conducted. The Company and each of its Subsidiaries is duly qualified as a foreign corporation
to do business and is in good standing in every jurisdiction in which its ownership or use of property or the nature of the business
conducted by it makes such qualification necessary except where the failure to be so qualified or in good standing would not have
a Material Adverse Effect. “Material Adverse Effect” means any material adverse effect on the business, operations,
assets, financial condition or prospects of the Company or its Subsidiaries, if any, taken as a whole, or on the transactions contemplated
hereby or by the agreements or instruments to be entered into in connection herewith. “Subsidiaries” means any corporation
or other organization, whether incorporated or unincorporated, in which the Company owns, directly or indirectly, any equity or
other ownership interest.

 

b.    
Authorization; Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform
this Agreement, the Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance
with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation
by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance
and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by
the Company’s Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders
is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized representative, and such
authorized representative is the true and official representative with authority to sign this Agreement and the other documents
executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery
by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its terms.

 

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c.    
Capitalization. Except as disclosed in the SEC Documents (as defined below), no shares are reserved for issuance
pursuant to the Company’s stock option plans, no shares are reserved for issuance pursuant to securities (other than the
Securities) exercisable for, or convertible into or exchangeable for shares of Common Stock. All of such outstanding shares of
capital stock are, or upon issuance will be, duly authorized, validly issued, fully paid and non-assessable. No shares of capital
stock of the Company are subject to preemptive rights or any other similar rights of the shareholders of the Company or any liens
or encumbrances imposed through the actions or failure to act of the Company. Except as disclosed in the SEC Documents, as of the
effective date of this Agreement, (i) there are no outstanding options, warrants, scrip, rights to subscribe for, puts, calls,
rights of first refusal, agreements, understandings, claims or other commitments or rights of any character whatsoever relating
to, or securities or rights convertible into or exchangeable for any shares of capital stock of the Company or any of its Subsidiaries,
or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock
of the Company or any of its Subsidiaries, (ii) there are no agreements or arrangements under which the Company or any of its Subsidiaries
is obligated to register the sale of any of its or their securities under the 1933 Act and (iii) there are no anti-dilution or
price adjustment provisions contained in any security issued by the Company (or in any agreement providing rights to security holders)
that will be triggered by the issuance of the Note or the Conversion Shares. The Company has filed in its SEC Documents true and
correct copies of the Company’s Certificate of Incorporation as in effect on the date hereof (“Certificate of Incorporation”),
the Company’s By-laws, as in effect on the date hereof (the “By-laws”), and the material terms of all securities
convertible into or exercisable for Common Stock of the Company and the material rights of the holders thereof in respect thereto.
The Company shall provide the Buyer with a written update of this representation signed by the Company’s Chief Executive
on behalf of the Company as of the Closing Date.

 

d.    
Issuance of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the
Note, in accordance with its terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims
and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders
of the Company and will not impose personal liability upon the holder thereof.

 

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e.    
Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common
Stock upon the issuance of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation
to issue Conversion Shares upon conversion of the Note in accordance with this Agreement is absolute and unconditional regardless
of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

f.     
No Conflicts. The execution, delivery and performance of this Agreement and the Note by the Company and the consummation
by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation
for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate
of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default
(or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company
or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or
its securities are subject) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company
or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations,
cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect). Neither the Company
nor any of its Subsidiaries is in violation of its Certificate of Incorporation, By-laws or other organizational documents and
neither the Company nor any of its Subsidiaries is in default (and no event has occurred which with notice or lapse of time or
both could put the Company or any of its Subsidiaries in default) under, and neither the Company nor any of its Subsidiaries has
taken any action or failed to take any action that would give to others any rights of termination, amendment, acceleration or cancellation
of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party or by which any property
or assets of the Company or any of its Subsidiaries is bound or affected, except for defaults and possible defaults disclosed in
the SEC Reports or as would not, individually or in the aggregate, have a Material Adverse Effect. The businesses of the Company
and its Subsidiaries, if any, are not being conducted, and shall not be conducted so long as the Buyer owns any of the Securities,
in violation in any material respect of any law, ordinance or regulation of any governmental entity. Except as specifically contemplated
by this Agreement and as required under the 1933 Act and any applicable state securities laws, the Company is not required to obtain
any consent, authorization or order of, or make any filing or registration with, any court, governmental agency, regulatory agency,
self-regulatory organization or stock market or any third party in order for it to execute, deliver or perform any of its obligations
under this Agreement, the Note in accordance with the terms hereof or thereof or to issue and sell the Note in accordance with
the terms hereof and to issue the Conversion Shares upon conversion of the Note. All consents, authorizations, orders, filings
and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on
or prior to the date hereof. The Company is not in violation of the listing requirements of the Over-the-Counter Bulletin Board
(the “OTCBB”), the OTCQB or any similar quotation system, and does not reasonably anticipate that the Common Stock
will be delisted by the OTCBB, the OTCQB or any similar quotation system, in the foreseeable future. The Company and its Subsidiaries
are unaware of any facts or circumstances which might give rise to any of the foregoing.

 

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g.    
SEC Documents; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents
required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended
(the “1934 Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial
statements and schedules thereto and documents (other than exhibits to such documents that are not required to be filed under the
1934 Act) incorporated by reference therein, being hereinafter referred to herein as the “SEC Documents”). The Company
has delivered to the Buyer true and complete copies of the SEC Documents, except for such exhibits and incorporated documents.
As of their respective dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the
rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the
time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were
made, not misleading. None of the statements made in any such SEC Documents is, or has been, required to be amended or updated
under applicable law (except for such statements as have been amended or updated in subsequent filings prior the date hereof).
As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all
material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto.
Such financial statements have been prepared in accordance with United States generally accepted accounting principles, consistently
applied, during the periods involved and fairly present in all material respects the consolidated financial position of the Company
and its consolidated Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). Except as set forth in
the financial statements of the Company included in the SEC Documents, the Company has no liabilities, contingent or otherwise,
other than (i) liabilities incurred in the ordinary course of business, and (ii) obligations under contracts and commitments incurred
in the ordinary course of business and not required under generally accepted accounting principles to be reflected in such financial
statements, which, individually or in the aggregate, are not material to the financial condition or operating results of the Company.
The Company is subject to the reporting requirements of the 1934 Act. For the avoidance of doubt, filing of the documents required
in this Section 3(g) via the SEC’s Electronic Data Gathering, Analysis, and Retrieval system (“EDGAR”) shall
satisfy all delivery requirements of this Section 3(g).

 

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h.    
Absence of Certain Changes. There has been no material adverse change and no material adverse development in the
assets, liabilities, business, properties, operations, financial condition, results of operations, prospects or 1934 Act reporting
status of the Company or any of its Subsidiaries.

 

i.     
Absence of Litigation. There is no action, suit, claim, proceeding, inquiry or investigation before or by any court,
public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its
Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or their officers or directors in their capacity
as such, that could have a Material Adverse Effect. The Company and its Subsidiaries are unaware of any facts or circumstances
which might give rise to any of the foregoing.

 

j.     
Patents, Copyrights, etc. The Company and each of its Subsidiaries owns or possesses the requisite licenses or rights
to use all patents, patent applications, patent rights, inventions, know-how, trade secrets, trademarks, trademark applications,
service marks, service names, trade names and copyrights (“Intellectual Property”) necessary to enable it to conduct
its business as now operated (and, as presently contemplated to be operated in the future). Except as disclosed in the SEC Documents,
there is no claim or action by any person pertaining to, or proceeding pending, or to the Company’s knowledge threatened,
which challenges the right of the Company or of a Subsidiary with respect to any Intellectual Property necessary to enable it to
conduct its business as now operated (and, as presently contemplated to be operated in the future); to the best of the Company’s
knowledge, the Company’s or its Subsidiaries’ current and intended products, services and processes do not infringe
on any Intellectual Property or other rights held by any person; and the Company is unaware of any facts or circumstances which
might give rise to any of the foregoing. The Company and each of its Subsidiaries have taken reasonable security measures to protect
the secrecy, confidentiality and value of their Intellectual Property.

 

k.    
No Materially Adverse Contracts, Etc. Neither the Company nor any of its Subsidiaries is subject to any charter,
corporate or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s
officers has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is
a party to any contract or agreement which in the judgment of the Company’s officers has or is expected to have a Material
Adverse Effect.

 

l.     
Tax Status. The Company and each of its Subsidiaries has made or filed all federal, state and foreign income and
all other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent
that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all
unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount,
shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set
aside on its books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such
returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority
of any jurisdiction, and the officers of the Company know of no basis for any such claim. The Company has not executed a waiver
with respect to the statute of limitations relating to the assessment or collection of any foreign, federal, state or local tax.
None of the Company’s tax returns is presently being audited by any taxing authority.

 

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m.  
Certain Transactions. Except for arm’s length transactions pursuant to which the Company or any of its Subsidiaries
makes payments in the ordinary course of business upon terms no less favorable than the Company or any of its Subsidiaries could
obtain from third parties and other than the grant of stock options and related party transactions disclosed in the SEC Documents,
none of the officers, directors, or employees of the Company is presently a party to any transaction with the Company or any of
its Subsidiaries (other than for services as employees, officers and directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring
payments to or from any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership, trust
or other entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee
or partner.

 

n.    
Disclosure. All information relating to or concerning the Company or any of its Subsidiaries set forth in this Agreement
and provided to the Buyer pursuant to Section 2(d) hereof and otherwise in connection with the transactions contemplated hereby
is true and correct in all material respects and the Company has not omitted to state any material fact necessary in order to make
the statements made herein or therein, in light of the circumstances under which they were made, not misleading. No material event
or circumstance has occurred or exists with respect to the Company or any of its Subsidiaries or its or their business, properties,
prospects, operations or financial conditions, which, under applicable law, rule or regulation, requires public disclosure or announcement
by the Company but which has not been so publicly announced or disclosed (assuming for this purpose that the Company’s reports
filed under the 1934 Act are being incorporated into an effective registration statement filed by the Company under the 1933 Act).

 

o.    
Acknowledgment Regarding Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer
is acting solely in the capacity of arm’s length purchasers with respect to this Agreement and the transactions contemplated
hereby. The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer
or any of its respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is
not advice or a recommendation and is merely incidental to the Buyer’ purchase of the Securities. The Company further represents
to the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation
of the Company and its representatives.

 

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p.    
No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf,
has directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances
that would require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities
to the Buyer will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes
of any shareholder approval provisions applicable to the Company or its securities.

 

q.    
No Brokers. The Company has taken no action which would give rise to any claim by any person for brokerage commissions,
transaction fees or similar payments relating to this Agreement or the transactions contemplated hereby, other than as provided
for in the disbursement memo.

 

r.     
Permits; Compliance. The Company and each of its Subsidiaries is in possession of all franchises, grants, authorizations,
licenses, permits, easements, variances, exemptions, consents, certificates, approvals and orders necessary to own, lease and operate
its properties and to carry on its business as it is now being conducted (collectively, the “Company Permits”), and
there is no action pending or, to the knowledge of the Company, threatened regarding suspension or cancellation of any of the Company
Permits. Neither the Company nor any of its Subsidiaries is in conflict with, or in default or violation of, any of the Company
Permits, except for any such conflicts, defaults or violations which, individually or in the aggregate, would not reasonably be
expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries has received any notification with
respect to possible conflicts, defaults or violations of applicable laws, except for notices relating to possible conflicts, defaults
or violations, which conflicts, defaults or violations would not have a Material Adverse Effect.

 

s.     
Environmental Matters.

 

(i)     
There are, to the Company’s knowledge, with respect to the Company or any of its Subsidiaries or any predecessor of
the Company, no past or present violations of Environmental Laws (as defined below), releases of any material into the environment,
actions, activities, circumstances, conditions, events, incidents, or contractual obligations which may give rise to any common
law environmental liability or any liability under the Comprehensive Environmental Response, Compensation and Liability Act of
1980 or similar federal, state, local or foreign laws and neither the Company nor any of its Subsidiaries has received any notice
with respect to any of the foregoing, nor is any action pending or, to the Company’s knowledge, threatened in connection
with any of the foregoing. The term “Environmental Laws” means all federal, state, local or foreign laws relating to
pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater,
land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened
releases of chemicals, pollutants contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”)
into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport
or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments,
licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

 

    	11

    	 

    

 

(ii)     
Other than those that are or were stored, used or disposed of in compliance with applicable law, no Hazardous Materials
are contained on or about any real property currently owned, leased or used by the Company or any of its Subsidiaries, and no Hazardous
Materials were released on or about any real property previously owned, leased or used by the Company or any of its Subsidiaries
during the period the property was owned, leased or used by the Company or any of its Subsidiaries, except in the normal course
of the Company’s or any of its Subsidiaries’ business.

 

(iii)     
There are no underground storage tanks on or under any real property owned, leased or used by the Company or any of its
Subsidiaries that are not in compliance with applicable law.

 

t.     
Title to Property. Except as disclosed in the SEC Documents the Company and its Subsidiaries have good and marketable
title in fee simple to any real property and good and marketable title to all personal property owned by them which is material
to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects or such
as would not have a Material Adverse Effect. Any real property and facilities held under lease by the Company and its Subsidiaries
are held by them under valid, subsisting and enforceable leases with such exceptions as would not have a Material Adverse Effect.

 

u.    
Internal Accounting Controls. Except as disclosed in the SEC Documents the Company and each of its Subsidiaries maintain
a system of internal accounting controls sufficient, in the judgment of the Company’s board of directors, to provide reasonable
assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles
and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or
specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences.

 

    	12

    	 

    

 

v.    
Foreign Corrupt Practices. Neither the Company, nor any of its Subsidiaries, nor any director, officer, agent, employee
or other person acting on behalf of the Company or any Subsidiary has, in the course of his actions for, or on behalf of, the Company,
used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity;
made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; violated
or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or made any bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

 

w.   
Solvency. Subject to the disclosures in the SEC Documents, including without limitation the statements in various
SEC Documents under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations
– Liquidity and Capital Resources,” the Company (after giving effect to the transactions contemplated by this Agreement)
is solvent (i.e., its assets have a fair market value in excess of the amount required to pay its probable liabilities on
its existing debts as they become absolute and matured) and currently the Company has no information that would lead it to reasonably
conclude that the Company would not, after giving effect to the transaction contemplated by this Agreement, have the ability to,
nor does it intend to take any action that would impair its ability to, pay its debts from time to time incurred in connection
therewith as such debts mature. For the avoidance of doubt any disclosure of the Borrower’s inability to continue as a “going
concern” shall not, by itself, be a violation of this Section 3(w).

 

x.    
No Investment Company. The Company is not, and upon the issuance and sale of the Securities as contemplated by this
Agreement will not be an “investment company” required to be registered under the Investment Company Act of 1940 (an
“Investment Company”). The Company is not controlled by an Investment Company.

 

y.    
Insurance. The Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility
against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses
in which the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has any reason to believe that
it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. Upon written
request the Company will provide to the Buyer true and correct copies of all policies relating to directors’ and officers’
liability coverage, errors and omissions coverage, and commercial general liability coverage.

 

z.    
Breach of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties
set forth in this Section 3 which breach results in a Material Adverse Effect, and in addition to any other remedies available
to the Buyer pursuant to this Agreement, it will be considered an Event of Default under Section 2 of the Note.

 

    	13

    	 

    

 

4.           
COVENANTS.

 

a.    
Best Efforts. The parties shall use their commercially reasonable best efforts to satisfy timely each of the conditions
described in Section 6 and 7 of this Agreement.

 

b.    
Use of Proceeds. The Company shall use the proceeds from the sale of the Note general working capital purposes.

 

c.    
Financial Information. For so long as the Note remains outstanding, the Company agrees to send or make available
the following reports to the Buyer: (i) within ten (10) days after the filing with the SEC, a copy of its Annual Report on
Form 10-K its Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K; (ii) within one (1) day after release, copies
of all press releases issued by the Company or any of its Subsidiaries; and (iii) contemporaneously with the making available
or giving to the shareholders of the Company, copies of any notices or other information the Company makes available or gives to
such shareholders. For the avoidance of doubt, filing the documents required in (i) above via EDGAR or releasing any documents
set forth in (ii) above via a recognized wire service shall satisfy the delivery requirements of this Section 4(c).

 

d.    
Listing. The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange
or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance)
and, so long as the Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed,
such listing of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain and, so long
as the Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the OTCBB, OTCQB, OTC Pink or
any equivalent replacement exchange, the Nasdaq National Market (“Nasdaq”), the Nasdaq SmallCap Market (“Nasdaq
SmallCap”), the New York Stock Exchange (“NYSE”), or the NYSE MKT and will comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”)
and such exchanges, as applicable. The Company shall promptly provide to the Buyer copies of any material notices it receives from
the OTCBB, OTCQB and any other exchanges or quotation systems on which the Common Stock is then listed regarding the continued
eligibility of the Common Stock for listing on such exchanges and quotation systems (filing documents via EDGAR or releasing any
documents via a recognized wire service shall satisfy the provision requirements of this Section 4(d)).

 

e.    
Corporate Existence. So long as the Buyer beneficially owns the Note and the Note remains outstanding, the Company
shall maintain its corporate existence and shall not sell all or substantially all of the Company’s assets, except (A) in
the event of a merger or consolidation or sale of all or substantially all of the Company’s assets, where the surviving or
successor entity in such transaction (i) assumes the Company’s obligations hereunder and under the agreements and instruments
entered into in connection herewith and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTCBB,
OTCQB, OTC Pink, Nasdaq, NasdaqSmallCap, NYSE or AMEX, or (B) if the Company repays all outstanding amounts under the Note in conjunction
with the closing of such transaction.

 

    	14

    	 

    

 

f.     
[RESERVED]

 

g.    
Failure to Comply with the 1934 Act. So long as the Buyer beneficially owns the Note and the Note remains outstanding,
the Company shall comply in all material respects with the reporting requirements of the 1934 Act and the Company shall continue
to be subject to the reporting requirements of the 1934 Act.

 

h.    
Trading Activities. Neither the Buyer nor its affiliates has an open short position (or other hedging or similar
transactions) in the common stock of the Company and the Buyer agree that it shall not, and that it will cause its affiliates not
to, engage in any short sales of or hedging transactions with respect to the common stock of the Company.

 

i.     
Breach of Covenants. If the Company breaches the covenants set forth in this Section 4 in any material respect,
and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an event of default
under Section 2 of the Note.

 

5.           
Transfer Agent Instructions. Prior to registration of the Conversion Shares under the 1933 Act or the date on which
the Conversion Shares may be sold pursuant to Rule 144 without any restriction as to the number of Securities as of a particular
date that can then be immediately sold, all such certificates shall bear the restrictive legend specified in Section 2(g) of this
Agreement.  The Company warrants that: (i) no stop transfer instructions to give effect to Section 2(f) hereof (in the case
of the Conversion Shares, prior to registration of the Conversion Shares under the 1933 Act or the date on which the Conversion
Shares may be sold pursuant to Rule 144 without any restriction as to the number of Securities as of a particular date that can
then be immediately sold), will be given by the Company to its transfer agent and that the Securities shall otherwise be freely
transferable on the books and records of the Company as and to the extent provided in this Agreement and the Note; (ii) it will
not direct its transfer agent not to transfer or delay, impair, and/or hinder its transfer agent in transferring (or issuing) (electronically
or in certificated form) any certificate for Conversion Shares to be issued to the Buyer upon conversion of or otherwise pursuant
to the Note as and when required by the Note and this Agreement; and (iii) it will not fail to remove (or directs its transfer
agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw
any stop transfer instructions in respect thereof) on any certificate for any Conversion Shares issued to the Buyer upon conversion
of or otherwise pursuant to the Note as and when required by the Note and this Agreement.  Nothing in this Section shall affect
in any way the Buyer’s obligations and agreement set forth in Section 2(g) hereof to comply with all applicable prospectus
delivery requirements, if any, upon re-sale of the Securities.  If the Buyer provides the Company, at the cost of the Buyer,
with (i) an opinion of counsel in form, substance and scope customary for opinions in comparable transactions, to the effect that
a public sale or transfer of such Securities may be made without registration under the 1933 Act and such sale or transfer is effected
or (ii) the Buyer provides reasonable assurances that the Securities can be sold pursuant to Rule 144, the Company shall permit
the transfer, and, in the case of the Conversion Shares, promptly instruct its transfer agent to issue one or more certificates,
free from restrictive legend, in such name and in such denominations as specified by the Buyer.  The Company acknowledges
that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer, by vitiating the intent and purpose
of the transactions contemplated hereby.  Accordingly, the Company acknowledges that the remedy at law for a breach of its
obligations under this Section may be inadequate and agrees, in the event of a breach or threatened breach by the Company of the
provisions of this Section, that the Buyer shall be entitled, in addition to all other available remedies, to an injunction restraining
any breach and requiring immediate transfer, without the necessity of showing economic loss and without any bond or other security
being required.

 

    	15

    	 

    

 

6.           
CONDITIONS PRECEDENT TO THE COMPANY’S OBLIGATIONS TO SELL. The obligation of the Company hereunder to issue
and sell the Note to the Buyer at the Initial Closing and accept the Advance at any Closing is subject to the satisfaction, at
or before the applicable Closing Date of each of the following conditions thereto, provided that these conditions are for the Company’s
sole benefit and may be waived by the Company at any time in its sole discretion:

 

a.    
The Buyer shall have executed this Agreement and delivered the same to the Company.

 

b.    
The Buyer shall have delivered the Purchase Price in accordance with Section 1(b) above.

 

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

 

d.    
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization
having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

7.           
CONDITIONS PRECEDENT TO THE BUYER’S OBLIGATION TO PURCHASE. The obligation of the Buyer hereunder to purchase
the Note at the Initial Closing and make the Advance at any Closing is subject to the satisfaction, at or before the applicable
Closing Date of each of the following conditions, provided that these conditions are for the Buyer’s sole benefit and may
be waived by the Buyer at any time in its sole discretion:

 

    	16

    	 

    

 

a.    
The Company shall have executed this Agreement and delivered the same to the Buyer.

 

b.    
The Company shall have delivered to the Buyer duly executed Note in accordance with Section 1(b) above.

 

c.    
The representations and warranties of the Company shall be true and correct in all material respects as of the date when
made and as of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific
date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date.
The Buyer shall have received a certificate or certificates, executed by the chief executive officer of the Company, dated as of
the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Buyer including, but
not limited to certificates with respect to the Company’s Certificate of Incorporation, By-laws and Board of Directors’
resolutions relating to the transactions contemplated hereby.

 

d.    
No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization
having authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated
by this Agreement.

 

e.    
No event shall have occurred which would reasonably be expected to have a Material Adverse Effect on the Company including
but not limited to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its 1934
Act reporting obligations.

 

f.     
The Common Stock shall have been authorized for quotation on the OTCBB, OTCQB or any similar quotation system and trading
in the Common Stock on the OTCBB, OTCQB or any similar quotation system shall not have been suspended by the SEC or the OTCBB,
OTCQB or any similar quotation system.

 

g.    
The Buyer shall have received an officer’s certificate described in Section 3(c) above, dated as of the Closing Date.

 

    	17

    	 

    

 

8.           
GOVERNING LAW; MISCELLANEOUS.

 

a.    
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada
without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions
contemplated by this Agreement shall be brought only in the state and/or federal courts located in San Diego, California. The parties
to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall
not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Company and Buyer
waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and
costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or
unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it
may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove
invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.
Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding
in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail
or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

b.    
Counterparts; Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts
have been signed by each party and delivered to the other party. This Agreement, once executed by a party, may be delivered to
the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this
Agreement.

 

c.    
Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect
the interpretation of, this Agreement.

 

d.    
Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall
be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under
any law shall not affect the validity or enforceability of any other provision hereof.

 

    	18

    	 

    

 

e.    
Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding
of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein,
neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No
provision of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest
of the Buyer.

 

f.     
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder
shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered
or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid,
or (iv) transmitted by hand delivery, telegram, facsimile, or electronic mail, addressed as set forth below or to such other address
as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to
be given hereunder shall be deemed effective (a) upon hand delivery, delivery by electronic mail, or delivery by facsimile, with
accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered
on a business day during normal business hours where such notice is to be received), or the first business day following such delivery
(if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second
business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

 

If to the Company,
to:

 

EL CAPITAN PRECIOUS METALS, INC.

5871 Honeysuckle Road

Prescott, AZ 86305

E-mail: antolstephen @gmail.com

 

If to the Holder,
to:

 

LUCAS HOPPEL

295 Palmas Inn
Way, Suite 130, PMB 346

Humacao, PR 00791

E-mail: Luke@lukehoppel.com

 

Each party shall provide
notice to the other party of any change in address.

 

g.    
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior
written consent of the other. Notwithstanding the foregoing, subject to Section 2(f), the Buyer may assign its rights hereunder
to any person that purchases Securities in a private transaction from the Buyer or to any of its “affiliates,” as that
term is defined under the 1934 Act, without the consent of the Company.

 

    	19

    	 

    

 

h.    
Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

i.     
Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement
shall survive each Closing hereunder. The Company agrees to indemnify and hold harmless the Buyer and all their officers, directors,
employees and agents for loss or damage arising as a result of or related to any breach by the Company of any of its representations,
warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement
of expenses as they are incurred.

 

j.     
Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and
things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may
reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

 

k.    
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rules of strict construction will be applied against any party.

 

l.     
Publicity. The Company and the Buyer shall have the right to review a reasonable period of time before issuance of
any press releases, SEC, OTCQB (or other applicable trading market), or FINRA filings, or any other public statements with respect
to the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the prior
approval of the Buyer, to make any press release or SEC, OTCQB (or other applicable trading market) or FINRA filings with respect
to such transactions as is required by applicable law and regulations (although the Buyer shall be consulted by the Company in
connection with any such press release prior to its release and shall be provided with a copy thereof).

 

 

 

[ - signature page follows - ]

 

    	20

    	 

    

 

IN WITNESS WHEREOF, the
undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

	EL CAPITAN PRECIOUS METALS, INC.	 
	 	 
	 	 
	By: 	/s/ John Stapleton	 
	 	Name: John Stapleton
Title: Chief Executive Officer	 

 

 

 

	BUYER	 
	 	 
	 	 
	By: 	/s/ Lucas Hoppel	 
	 	Name: Lucas Hoppel	 

 

 

 

AGGREGATE SUBSCRIPTION AMOUNT:

 

	Aggregate Principal Amount of Note:	 	US$550,000.00
	 	 	 
	Maximum Aggregate Amount of Advances:	 	US$500,000.00
	 	 	 
	Initial Advance:	 	US$100,000.00

 

 

*The Initial Advance of $100,000.00 under the
Note, resulting in an outstanding principal amount $110,000.00, shall be paid at the Initial Closing. Additional Advances may be
funded by the Buyer upon mutual agreement of the Buyer and the Company in accordance with the terms of the Note.

 

 

    	21

    	 

    

 

EXHIBIT A

Form of Convertible Note

(see attached)

 

 

 

    	22

    	 

    

 

 

EXHIBIT B

Form of Common Stock Purchase Warrant

(see attached)

 

 

 

    	23EXHIBIT 10.2

 

NEITHER THIS NOTE NOR THE SECURITIES
INTO WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION
OF ANY STATE. THESE SECURITIES HAVE BEEN SOLD IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

EL
CAPITAN PRECIOUS METALS, INC.

CONVERTIBLE NOTE

	Issuance Date:  February 21, 2017	Original
Principal Amount:	$550,000.00
	Note No. ECPN-1	Maximum Aggregate Advance Amount:	$500,000.00

 

 

FOR VALUE RECEIVED,
El Capitan Precious Metals, Inc., a Nevada corporation (the “Company”), hereby promises to pay to the order
of Lucas Hoppel or registered assigns (the “Holder”) the amount set out above as the Original Principal
Amount, or such lesser amount based on actual Advances (as defined below) hereunder (as reduced pursuant to the terms hereof pursuant
to redemption, conversion or otherwise, the “Principal”) when due, whether upon the Maturity Date (as defined
below), acceleration, redemption or otherwise (in each case in accordance with the terms hereof) and to pay interest (“Interest”)
on outstanding Principal at the applicable Interest Rate from the date set out above as the Issuance Date (the “Issuance
Date”) until the same becomes due and payable, upon the Maturity Date or acceleration, conversion, redemption or otherwise
(in each case in accordance with the terms hereof).

 

An initial advance
of One Hundred Thousand Dollars ($100,000) shall be made by the Holder to the Company on the Issuance Date (the “Initial
Advance”). At any time on or before the Maturity Date, the Company may request that the Holder make one or more additional
advances hereunder (each an “Additional Advance” and together with the Initial Advance, the “Advances”
and each an “Advance”) in amounts in the aggregate, and when added to the Initial Advance, equal the $500,000
Maximum Aggregate Advance Amount. Holder may elect, in its sole discretion, to make any such Additional Advance, but shall not
be obligated to do so. At the closing of each Advance, the outstanding Principal amount of the Note attributable to such Advance
shall be 110% of the amount of such Advance (i.e., upon funding the Initial Advance of $100,000, the outstanding Principal amount
of the Note attributable to the Initial Advance will be $110,000).

 

For purposes hereof,
the term “Outstanding Balance” means the Principal amount attributable to all Advances, as reduced or increased, as
the case may be, pursuant to the terms hereof for repayment, conversion, breach hereof or otherwise, plus any accrued but unpaid
Interest, collection and enforcements costs, and any other fees, penalties, damages or charges incurred under this Note.

 

(1)          GENERAL
TERMS

 

(a)           
Payment of Principal. The “Maturity Date” shall be six months from
the Issuance Date, as may be extended at the option of the Holder in the event that, and for so long as, an Event of Default (as
defined below) shall not have occurred and be continuing on the Maturity Date (as may be extended pursuant to this Section 1) or
any event shall not have occurred and be continuing on the Maturity Date (as may be extended pursuant to this Section 1) that with
the passage of time and the failure to cure would result in an Event of Default. 

 

    	1

    	 

    

 

(b)          
Interest. Interest shall accrue on the outstanding Principal
amount attributable to each Advance, as reduced or increased, as the case may be, pursuant to the terms hereof for repayment, conversion,
breach hereof or otherwise, commencing on the date that such Advance is made, at a rate equal to of
seven percent (7%) (“Interest Rate”). Except to the extent converted into Common Stock pursuant to the terms
hereof, all accrued and unpaid Interest shall be paid on the Maturity Date (or sooner as provided herein) to the Holder or its
assignee in whose name this Note is registered on the records of the Company regarding registration and transfers of Notes in cash.

 

(c)           
Security. This Note shall not be secured by any collateral or any assets pledged to
the Holder

 

(2)          EVENTS OF DEFAULT. 

 

(a)           An “Event of Default”, wherever used herein, means the occurrence of any
one of the following events (whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law
or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental
body) and the Company’s receipt of written notice of the declaration of such Event of Default by Holder:

 

(i)          
The Company’s failure to pay to the Holder any amount of Principal, Interest, or other amounts
when and as due under this Note; 

 

(ii)          
A Conversion Failure as defined in section 3(b)(ii);

 

(iii)        
The Company or any subsidiary of the Company shall commence, or there shall be commenced against
the Company or any subsidiary of the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or
any successor thereto, or the Company or any subsidiary of the Company commences any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether
now or hereafter in effect relating to the Company or any subsidiary of the Company or there is commenced against the Company or
any subsidiary of the Company any such bankruptcy, insolvency or other proceeding, in each case which remains undismissed for a
period of sixty-one (61) days; or the Company or any subsidiary of the Company is adjudicated insolvent or bankrupt; or any order
of relief or other order approving any such case or proceeding is entered; or the Company or any subsidiary of the Company suffers
any appointment of any custodian, private or court appointed receiver or the like for it or any substantial part of its property
which continues undischarged or unstayed for a period of sixty-one (61) days; or the Company or any subsidiary of the Company makes
a general assignment for the benefit of creditors; or the Company or any subsidiary of the Company shall fail to pay, or shall
state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the Company or any subsidiary
of the Company shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its
debts; or the Company or any subsidiary of the Company shall by any act or failure to act expressly indicate its consent to, approval
of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company or any subsidiary of the Company
for the purpose of effecting any of the foregoing;

 

(iv)        
a default initially occurring on or after the Issuance Date by the Company or any subsidiary
of the Company in any of its obligations under any other Note or any mortgage, credit agreement or other facility, indenture agreement,
factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced any indebtedness
for borrowed money or money due under any long term leasing or factoring arrangement of the Company or any subsidiary of the Company
in an amount exceeding $50,000, whether such indebtedness now exists or shall hereafter be created; 

 

    	2

    	 

    

 

(v)          The Common Stock is suspended or delisted for trading on the Over the Counter OTCQB Venture
Marketplace, OTC Pink Open Marketplace, or other principal market (the “Primary Market”); 

 

(vi)         The Company loses its ability to deliver shares via “DWAC/FAST” electronic transfer;

 

(vii)       
The Company loses its status as “DTC Eligible”;

 

(viii)     
 The Company shall become late or delinquent in its filing requirements as a fully-reporting
issuer registered with the Securities & Exchange Commission;

 

(ix)         
The Company shall fail to reserve and keep available out of its authorized Common Stock a
number of shares equal to at least the full number of shares of Common Stock issuable upon conversion of all outstanding amounts
under this Note.

 

(b)          
Upon the occurrence of any Event of Default (i) the Outstanding Balance shall immediately
increase to 140% of the Outstanding Balance immediately prior to the occurrence of the Event of Default, and (ii) (ii) a penalty
of $500 (five hundred) per day shall accrue until the default is remedied, and (iii) the Conversion Price shall be permanently
redefined to equal 60% of the average of the three (3) lowest traded prices during the fourteen (14) consecutive Trading Days immediately
preceding the applicable Conversion Date on which the Holder elects to convert all or part of this Note, subject to adjustment
as provided in this Note (collectively the “Default Effect”). 

 

(3)          CONVERSION OF NOTE.     This Note shall be convertible into shares of the Company’s
Common Stock, on the terms and conditions set forth in this Section 3.

 

(a)           
Conversion Right. Subject to the provisions of Section 3(c), at any time on or after
the Issue Date, the Holder shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined
below) into fully paid and nonassessable shares of Common Stock in accordance with Section 3(b), at the Conversion Price (as defined
below). The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to this Section 3(a) shall
be equal to the quotient of dividing the Conversion Amount by the Conversion Price. The Company shall not issue any fraction of
a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock,
the Company shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all
of its own transfer agent fees, legal fees and costs and any other fees or costs that may be incurred by it or charged to it in
connection with the issuance of shares of the Company’s Common Stock to the Holder arising out of or relating to the conversion
of this Note. 

 

(i)         
“Conversion Amount” means the portion of the Outstanding Balance to be converted.

 

(ii)         “Conversion Price” shall equal the VWAP of the Common Stock on the trading
day prior to the Initial Advance or, if lower, the VWAP on the trading day prior to any Additional Advance, in each case subject
to adjustment as provided in this Note. The Conversion Price in effect following the Initial Advance is reflected on Schedule 1
to this Note, which Schedule shall be updated from time to time to reflect any adjustments to the Conversion Price. 

 

    	3

    	 

    

 

(b)          
Mechanics of Conversion.

 

(i)         
Optional Conversion. To convert any Conversion Amount into shares of Common Stock on
any date (a “Conversion Date”), the Holder shall (A) transmit by email, facsimile (or otherwise deliver), for
receipt on or prior to 11:59 p.m., New York, NY Time, on such date, a copy of an executed notice of conversion in the form attached
hereto as Exhibit A (the “Conversion Notice”) to the Company. On or before the third Business Day following
the date of receipt of a Conversion Notice (the “Share Delivery Date”), the Company shall (A) if legends are not
required to be placed on certificates of Common Stock pursuant to the then existing provisions of Rule 144 of the Securities Act
of 1933 (“Rule 144”) and provided that the Transfer Agent is participating in the Depository Trust Company’s
(“DTC”) Fast Automated Securities Transfer Program, credit such aggregate number of shares of Common Stock to
which the Holder shall be entitled to the Holder’s or its designee’s balance account with DTC through its Deposit Withdrawal Agent
Commission system or (B) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program, issue
and deliver to the address as specified in the Conversion Notice, a certificate, registered in the name of the Holder or its designee,
for the number of shares of Common Stock to which the Holder shall be entitled which certificates shall not bear any restrictive
legends unless required pursuant the Rule 144. If this Note is physically surrendered for conversion and the outstanding Principal
of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Company shall, upon request
of the Holder, as soon as practicable and in no event later than three (3) Business Days after receipt of this Note and at its
own expense, issue and deliver to the holder a new Note representing the outstanding Principal not converted. The Person or Persons
entitled to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the
record holder or holders of such shares of Common Stock upon the transmission of a Conversion Notice.

 

(ii)         Company’s Failure to Timely Convert. If within three (3) Trading Days after the Company’s
receipt of the facsimile or email copy of a Conversion Notice, the Company fails to issue and deliver to Holder, in the manner
required under Section 3(b)(i), the number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion
of any Conversion Amount (a “Conversion Failure”), the outstanding Principal amount of the Note shall increase
by $2,000 per Trading Day until the Company issues and delivers a certificate to the Holder or credit the Holder’s balance account
with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s conversion of any Conversion
Amount (and interest on such additional Principal amount shall be deemed to have accrued thereon from the Issuance Date). The Company
will not be subject to any penalties once its transfer agent processes the shares to the DWAC system. If the Company fails to deliver
shares in accordance with the timeframe stated in Section 3(b)(i), resulting in a Conversion Failure, the Holder, at any time prior
to receiving such shares, may rescind, in whole or in part, the corresponding conversion and have the rescinded Conversion Amount
returned to the Outstanding Balance (and interest on such rescinded Conversion Amount shall be deemed to have accrued thereon from
the Issuance Date as if such conversion had not occurred).

 

(iii)        
DWAC/FAST Eligibility. If there is a Conversion Failure as defined in Section 3(b)(ii),
and if the Holder incurs a Market Price Loss, then at any time subsequent to incurring the loss the Holder may provide the Company
written notice indicating the amounts payable to the Holder in respect of the Market Price Loss and the Company must make the Holder
whole by either of the following options at Holder’s election:

 

Market Price
Loss = [(High trade price for the period between the day of conversion and the day the shares clear in the Holder’s brokerage
account) x (Number of shares receivable from the conversion)] – [(Net Sales price realized by Holder) x (Number of shares
receivable from the conversion)].

 

    	4

    	 

    

 

 

Option A –
Pay Market Price Loss in Cash. The Company must pay the Market Price Loss by cash payment, and any such cash payment must be made
by the third business day from the time of the Holder’s written notice to the Company.

 

Option B –
Add Market Price Loss to Outstanding Balance. The Company must pay the Market Price Loss by adding the Market Price Loss to the
Outstanding Balance (under Holder’s and the Company’s expectation that any Market Price Loss amounts will tack back
to the Issuance Date).

 

If conversion shares
may be sold without limitation under Rule 144 or are registered for resale pursuant to an effective registration statement but
are not delivered to the Holder by DWAC/FAST electronic transfer, an additional 10% discount to the Conversion Price will apply.

 

(iv)         
DTC Eligibility & Sub-Penny. If the Company fails to maintain its status as “DTC Eligible” for any
reason, or, if the effective Conversion Price as calculated in Section 3(a)(ii) is less than $0.01 at any time (regardless of whether
or not a Conversion Notice has been submitted to the Company), the outstanding Principal amount of the Note shall increase by ten
thousand dollars ($10,000) (and interest on such additional Principal amount shall be deemed to have
accrued thereon from the Issuance Date). In addition, the Conversion Price shall be permanently redefined to equal 60% of
the average of the three (3) lowest traded prices during the fourteen (14) consecutive Trading Days immediately preceding the applicable
Conversion Date on which the Holder elects to convert all or part of this Note, subject to adjustment as provided in this Note.

 

(v)         
Par Value True-Up. In the event that the Conversion Price is less than Par Value on
the Conversion Date, the Holder may elect to submit a Conversion Notice (attached hereto as Exhibit A) with a conversion price
equal to the Company’s Par Value. In addition, upon written notice from the Holder in the form attached hereto as Exhibit
B (the “True-Up Notice”), the Holder may require the Company, at the Holder’s election, to either (A)
issue and deliver to the Holder a number of shares of Common Stock as equals (X) the Conversion Amount divided by 60% of the lowest
trade occurring during the twenty five (25) consecutive Trading Days immediately preceding the applicable Conversion Date, less
(Y) the Conversion Amount divided by the Par Value (Any additional shares of Common Stock issuable pursuant to this Section 3(b)(v)
shall be referred to herein as “True-Up Shares”), or (B) add to the Outstanding Balance a dollar amount equal
to the number of True-Up Shares (as calculated above) multiplied by the high trade price on the Conversion Date (Any dollar amount
added to the Outstanding Balance pursuant to this Section 3(b)(v) shall be referred to herein as the “True-Up Balance”)
(under Holder’s and the Company’s expectation that any True-Up Balance amounts will tack back to the Issuance Date).

 

(vi)        
Split, Subdivision, Reverse Split or Combination of Shares. If the Company at any time
while this Note, or any portion thereof, remains outstanding shall issue additional shares of its Common Stock as a dividend with
respect to any shares of its Common Stock, or split, subdivide, reverse split or combine the securities as to which conversion
rights under this Note exist, into a different number of securities of the same class, the Conversion Price per share for such
securities shall be proportionately decreased in the case of a stock dividend, split or subdivision or proportionately increased
in the case of a combination or reverse split and the number of shares which the Holder hereof shall be entitled to receive upon
conversion shall be correspondingly appropriately adjusted, provided, however, that if the Conversion Price in effect at such time
involves a variable rate formula (including but not limited to the Conversion Price that would be in effect upon triggering of
the Default Effect), then the Conversion Price shall not be subject to any such adjustment contained in this paragraph. 

 

    	5

    	 

    

 

(vii)       
Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion
of any portion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this
Note to the Company unless (A) the full Outstanding Balance of this Note is being converted or (B) the Holder has provided the
Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance of this Note upon
physical surrender of this Note. The Holder and the Company shall maintain records showing the Principal and Interest converted
and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Company, so as
not to require physical surrender of this Note upon conversion.

 

(c)  
Limitations on Conversions or Trading.

 

(i)         
Beneficial Ownership. The Company shall not effect any conversions of this Note and
the Holder shall not have the right to convert any portion of this Note or receive shares of Common Stock as payment of interest
hereunder to the extent that after giving effect to such conversion or receipt of such interest payment, the Holder, together with
any affiliate thereof, would beneficially own (as determined in accordance with Section 13(d) of the Exchange Act and the rules
promulgated thereunder) in excess of 9.99% of the number of shares of Common Stock outstanding immediately after giving effect
to such conversion or receipt of shares as payment of interest. Since the Holder will not be obligated to report to the Company
the number of shares of Common Stock it may hold at the time of a conversion hereunder, unless the conversion at issue would result
in the issuance of shares of Common Stock in excess of 9.99% of the then outstanding shares of Common Stock without regard to any
other shares which may be beneficially owned by the Holder or an affiliate thereof, the Holder shall have the authority and obligation
to determine whether the restriction contained in this Section will limit any particular conversion hereunder and to the extent
that the Holder determines that the limitation contained in this Section applies, the determination of which portion of the principal
amount of this Note is convertible shall be the responsibility and obligation of the Holder. If the Holder has delivered a Conversion
Notice for a principal amount of this Note that, without regard to any other shares that the Holder or its affiliates may beneficially
own, would result in the issuance in excess of the permitted amount hereunder, the Company shall notify the Holder of this fact
and shall honor the conversion for the maximum principal amount permitted to be converted on such Conversion Date in accordance
with Section 3(a) and, any principal amount tendered for conversion in excess of the permitted amount hereunder shall remain outstanding
under this Note. The provisions of this Section may be waived by Holder upon not less than 65 days prior written notification to
the Company.

 

(ii)         Capitalization. So long as this as this Note is outstanding, upon written request of
the Holder, the Company shall furnish to the Holder information regarding the then-current number of common shares issued and outstanding,
the then-current number of common shares authorized, and the then-current number of shares reserved for third parties.

 

(d) 
Other Provisions.

 

(i)         
Share Reservation.     The Company shall at all times reserve and keep available out
of its authorized Common Stock a number of shares equal to at least the full number of shares of Common Stock issuable upon conversion
of all outstanding amounts under this Note; and within three (3) Business Days following the Company’s receipt from the Holder
of written notice that such minimum number of shares of Common Stock is not so reserved, the Company shall promptly reserve a sufficient
number of shares of Common Stock to comply with such requirement. 

 

    	6

    	 

    

 

(ii)         Prepayment.       At any time following the Issuance Date, the Company shall have the
option, upon five (5) business days’ notice to Holder, to pre-pay the entire remaining Outstanding Balance in cash, provided
that (i) the Company shall pay the Holder 100% of the Outstanding Balance, and (ii) such amount must be paid in cash not later
than next business day following such five (5) business day notice period and (iii) the Holder may still convert this Note pursuant
to the terms hereof at all times until such prepayment amount has been received in full. Except as set forth in this Section the
Company may not prepay this Note in whole or in part.

 

(iii)        Terms of Future Financings. So long as this Note is outstanding, upon any issuance
by the Company or any of its subsidiaries of any security with any term more favorable to the holder of such security or with a
term in favor of the holder of such security that was not similarly provided to the Holder in this Note, then the Company shall
notify the Holder of such additional or more favorable term and such term, at Holder’s option, shall become a part of the
Note. The types of terms contained in another security that may be more favorable to the holder of such security include, but are
not limited to, terms addressing conversion discounts, conversion lookback periods, interest rates, original issue discounts, stock
sale price, private placement price per share, and warrant coverage. Notwithstanding the forgoing, this Section 3(d)(iii) shall
not apply to any Exempt Issuance (as defined below). For such purposes, an “Exempt Issuance” means (A) any issuance
of Company securities that is not made pursuant to a bona fide financing transaction, (B) any issuance under the equity line arrangements
governed by that certain Equity Purchase Agreement dated March 16, 2016 between the Company and River North Equity, LLC, as amended,
or any replacement equity line arrangement with an affiliate of River North Equity, LLC; and (C) any issuance of securities of
the Company pursuant to a subsequent financing transaction or arrangement between the Company and the Holder that is unrelated
to issuances contemplated by this Note and the corresponding Securities Purchase Agreement between the Company and the Holder.
For the avoidance of doubt, Exempt Issuances shall include, without limitation: (Y) the issuance of securities to officers,
directors, employees of or consultants to the Company pursuant to compensatory arrangements (whether or not pursuant to a plan),
or (Z) securities issued pursuant to leasing arrangements, acquisitions or strategic transactions approved by a majority of the
disinterested directors of the Company. 

 

(iv)         All calculations under this Section 3 shall be rounded up to the nearest $0.00001 or whole
share.

 

(v)         
Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of
Default pursuant to Section 2 herein for the Company’s failure to deliver certificates representing shares of Common Stock upon
conversion within the period specified herein and such Holder shall have the right to pursue all remedies available to it at law
or in equity including, without limitation, a decree of specific performance and/or injunctive relief, in each case without the
need to post a bond or provide other security. The exercise of any such rights shall not prohibit the Holder from seeking to enforce
damages pursuant to any other Section hereof or under applicable law. 

 

(4)          PIGGYBACK REGISTRATION RIGHTS. The Company shall include on the next registration statement
the Company files with SEC (other than in connection with a merger, acquisition, pursuant to Form S-4 or Form S-8 or successor
forms, or on any form which does not include substantially the same information as would be required to be included in a registration
statement covering the sale of shares of Common Stock issued upon conversion of the amount of this Note subject to such Advance)
(or on the subsequent registration statement if such registration statement is withdrawn) all shares issuable upon conversion of
the then Outstanding Balance amount of this Note. Failure to do so will result in liquidated damages of 25% of the outstanding
Principal balance of this Note, but not less than $25,000, being immediately due and payable to the Holder at its election in the
form of an addition to the balance of this Note. The Holder’s piggyback registration rights shall terminate at the earlier
of such time as all of the Registrable Securities have been sold or the date the Holder may sell shares issuable upon conversion
of this Note without volume limitations under Rule 144 of Securities Act of 1933, as amended, or otherwise. The Holder’s
piggyback registration rights are conditioned on the Holder furnishing the Company with such information regarding the Holder
and distribution of conversion shares as the Company may from time to time reasonably request for purposes of preparing the registration
statement.

 

    	7

    	 

    

 

(5)          REISSUANCE OF THIS NOTE.

 

(a)           
Assignability. The Company may not assign this Note. This Note will be binding upon
the Company and its successors and will inure to the benefit of the Holder and its successors and assigns and may be assigned by
the Holder to anyone of its choosing without Company’s approval. 

 

(b)          
Lost, Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction,
of any indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender
and cancellation of this Note, the Company shall execute and deliver to the Holder a new Note representing the outstanding Principal.

 

(6)          NOTICES.       Any notices, consents, waivers or other communications required or permitted
to be given under the terms hereof must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered
personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically
generated and kept on file by the sending party) (iii) upon receipt, when sent by email; or (iv) one (1) Trading Day after deposit
with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The
addresses, facsimile numbers and email addresses for such communications shall be those set forth below at such other address,
facsimile number and email address, and/or to the attention of such other person, as the recipient party has specified by written
notice given to each other party three (3) Business Days prior to the effectiveness of such change. Written confirmation of receipt
(i) given by the recipient of such notice, consent, waiver or other communication, (ii) mechanically or electronically generated
by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such
transmission or (iii) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal
service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i),
(ii) or (iii) above, respectively.

 

The addresses for such communications shall
be:

 

If to the Company, to:

 

El Capitan Precious Metals, Inc.

5871 Honeysuckle Road

Prescott, AZ 86305

E-mail:   antolstephen@gmail.com

 

If to the Holder:

 

Lucas Hoppel

295 Palmas Inn Way

Ste 104 PMB 345

Humacao, PR 00791

Email:   Luke@LukeHoppel.com

 

    	8

    	 

    

 

(7)          APPLICABLE LAW AND VENUE. This Note shall be governed by and construed in accordance
with the laws of the State of Nevada, without giving effect to conflicts of laws thereof. Any action brought by either party against
the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of California or
in the federal courts located in the city and county of San Diego, in the State of California. Both parties and the individuals
signing this Agreement agree to submit to the jurisdiction of such courts.

 

(8)          WAIVER. Any waiver by the Holder of a breach of any provision of this Note shall not
operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this
Note. The failure of the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be
considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term
of this Note. Any waiver must be in writing.

 

(9)          LIQUIDATED DAMAGES. Holder and Company agree that in the event Company fails to comply
with any of the terms or provisions of this Note, Holder’s damages would be uncertain and difficult (if not impossible) to accurately
estimate because of the parties’ inability to predict future interest rates, future share prices, future trading volumes and other
relevant factors. Accordingly, Holder and Company agree that any fees, balance adjustments, default interest or other charges assessed
under this Note are not penalties but instead are intended by the parties to be, and shall be deemed, liquidated damages (under
Holder’s and Company’s expectations that any such liquidated damages will tack back to the Closing Date for purposes of determining
the holding period under Rule 144).

 

[Signature Page Follows]

 

 

    	9

    	 

    

 

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed by a duly authorized officer as of the date set forth above.

 

	 	COMPANY:
	 	 
	 	El Capitan Precious Metals, Inc.
	 	 
	 	 
	 	By: 	/s/ John Stapleton
	 	 	Name: John Stapleton
Title: Chief
Executive Officer

 

 

 

	 	HOLDER:
	 	 
	 	Lucas Hoppel
	 	 
	 	 
	 	By: 	/s/ Lucas Hoppel
	 	 	

 

 

 

 

 

 

 

 

 

 

[Signature Page to Convertible Note No. ECPN-1]

 

    	10

    	 

    

 

EXHIBIT A

 

CONVERSION NOTICE 

 

	[Company Contact, Position]
	[Company Name]
	[Company Address]
	[Contact Email Address]
	 
	 
	 
	The
    undersigned hereby elects to convert a portion of the $________ Convertible Note _______ issued to Lucas Hoppel on ____________
    into Shares of Common Stock of ____________ according to the conditions set forth in such Note as of the date written below.
	 
	 
	By
    accepting this notice of conversion, you are acknowledging that the number of shares to be delivered represents less than
    10% (ten percent) of the common stock outstanding immediately prior to the conversion.  If the number of shares
    to be delivered represents more than 9.99% of the common stock outstanding, this conversion notice shall immediately automatically
    extinguish and debenture Holder must be immediately notified.
	 
	 
	 
	 
	Date
    of Conversion:	 	 
	 	 	 
	Conversion
    Amount:	 	 
	 	 	 
	Conversion
    Price:	 	 
	 	 	 
	Shares
    to be Delivered:	 	 
	 
	 
	 
	Shares delivered in name of:
	 
	Lucas
    Hoppel
	 	 
	 	Signature:  
	 	 	 
	 	 	 
	 	By:
    Lucas Hoppel	 
	 	 	 	 	 	 	 	 	 	 	 

 

    	

    	 

    

 

 

EXHIBIT B

 

TRUE-UP NOTICE

 

 

 

 

	[Company Contact, Position]
	[Company Name]	 
	[Company Address]	 
	[Contact Email Address]

 

 

The undersigned hereby gives notice to [COMPANY
NAME], a ______ corporation (the “Company”), pursuant to that certain convertible note dated _______ ___, 20__
by and between the Company and the Holder (the “Note”), that the Holder elects to:

 

		___	Receive fully paid and non-assessable True-Up Shares pursuant to Section 3(b)(v) of the Note (such
Additional Origination Shares shall be calculated as set forth below), or

 

		___	Add to the Outstanding Balance a dollar amount equal to the True-Up Amount (such True-Up Amount
shall be calculated as set forth below).

 

 

The number of True-Up Shares Holder is entitled
to receive is calculated as follows:

 

Conversion Amount ($___) / ___% of
the lowest trade occurring during the _________ (__) consecutive Trading Days immediately preceding the applicable Conversion Date
($_.__) - Conversion Amount ($___) divided by the Par Value ($_.__) =

 

____________ True-Up Shares

 

 

The amount of True-Up Balance to be added to
the Outstanding Balance is calculated as follows:

 

Number of True-Up Shares (_____)
* high trade price on the Conversion Date ($_.__)=

 

____________ True-Up Balance

 

 

	Shares delivered in name of:	 	 
	 
	Lucas Hoppel
	 	 	 	 	 
		 
	 	Signature:  
	 	 	 
	 	 	 
	 	By:
    Lucas Hoppel	 
	 	 	 	 	 	 	 	 	 	 	 

 

 

    	

    	 

    

 

 

SCHEDULE
1

 

CONVERSION
PRICE 

 

 

 

The Conversion Price in effect immediately
following the Initial Advance is $0.0913.

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