Document:

Exhibit
10.1

 

EXECUTION VERSION

 

COMMON STOCK PURCHASE AGREEMENT

 

THIS
COMMON STOCK PURCHASE AGREEMENT  (this “Agreement”)
is made as of December 29, 2009, by and between GOLDEN MINERALS COMPANY, a
Delaware corporation (the
“Company”), and SENTIENT GLOBAL RESOURCES FUND III, L.P., a Cayman Islands exempted
limited partnership and SGRF III PARALLEL I, L.P.,  a Cayman Islands
exempted limited partnership  (the “Buyers”).

 

RECITALS

 

A.                                   Pursuant to the terms and conditions of
this Agreement, the Company has agreed to issue and sell to Buyers and Buyers
have agreed to purchase, from the Company’s authorized but unissued common
stock, par value $0.01 per share (“Common Stock”),
745,318 shares of Common Stock (the “Initial Shares”)
at a price of C$7.06 per share.

 

B.                                     The Company has filed a registration
statement on Form S-1 (333-162486) with the U.S. Securities and Exchange
Commission (the “SEC”) and a preliminary long form
prospectus with certain provincial securities regulators in Canada in
connection with an initial public offering of Common Stock (the “Initial Public Offering”), and the Company has agreed to
issue and sell to Buyers and Buyers shall have an option to purchase pursuant
to the long form prospectus in Canada, an additional number of shares of Common
Stock such that the Buyers’ aggregate ownership of the Company’s Outstanding
Common Stock on a non-diluted basis following the Initial Public Offering shall
be equal to 19.90%.

 

NOW, THEREFORE, in consideration of the recitals and the mutual
promises, representations, warranties, and covenants set forth in this
Agreement and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

 

AGREEMENT

 

1.                                      PURCHASE OF COMMON STOCK

 

1.1                               Initial Shares.

 

(a)                                        Initial Issuances of Shares.

 

(i)                                     Subject to the terms and conditions of this Agreement, at the
First Initial Closing, Buyers shall purchase
and the Company shall issue and sell to Buyers, the number of Initial Shares
set forth in Exhibit B under the heading “First Delivery Initial
Shares” (the “First Delivery Initial Shares”),
free and clear of all Encumbrances, except for any restrictions on transfer
arising under the Lock-Up Agreement, the Securities Act or any applicable state
or Canadian provincial securities laws.

 

 

(ii)                                  Subject to the terms and conditions of this Agreement, at the
Second Initial Closing, Buyers shall purchase
and the Company shall issue and sell to Buyers, the number of Initial Shares
set forth in Exhibit B under the heading “Second Delivery Initial
Shares” (the “Second Delivery Initial Shares”),
free and clear of all Encumbrances, except for any restrictions on transfer
arising under the Lock-Up Agreement, the Securities Act or any applicable state
or Canadian provincial securities laws.

 

(b)                                       Initial Shares Purchase Price.  The Buyers agree to pay an aggregate of
C$5,261,945.08 to the Company as the purchase price for the Initial Shares (the
“Initial Shares Purchase Price”),
allocated between the Buyers and between the First Delivery Initial Shares and
Second Delivery Initial Shares in the manner set forth in Exhibit B.

 

(c)                                        First Initial Closing.

 

(i)                                     The Closing.  The closing of the sale of the First Delivery
Initial Shares (the “First Initial  Closing”) shall take place at 10:00 A.M., Denver time,
on December 31, 2009, following satisfaction or waiver of each of the
conditions set forth in Sections 3.1(a) and 3.2(a) (other than such
conditions as can be satisfied only at the First Initial Closing), at the
offices of Davis Graham & Stubbs LLP, 1550 17th Street, Denver
Colorado 80202, or at such other place or at such other time as shall be agreed
upon by the Company and Buyers.  The time
and date on which the First Initial Closing is actually held is referred to
herein as the “First Initial Closing Date”.

 

(ii)                                  Deliveries by the Company.  At the First Initial Closing, the Company
shall deliver:

 

(1)                                  Certificates representing the First Delivery Initial Shares,
duly and validly issued in favor of Buyers and otherwise sufficient to vest in
Buyers good title to the First Delivery Initial Shares;

 

(2)                                  The Registration Rights Agreement, duly executed by the
Company;

 

(3)                                  A certificate issued by the secretary or an assistant
secretary of the Company, dated the First Initial Closing Date, in form and
substance reasonably satisfactory to Buyers, certifying on behalf of the
Company (i) the resolutions of the board of directors of the Company
authorizing the execution, delivery and performance of this Agreement and the
Registration Rights Agreement and the issuance of the Initial Shares, the
Pre-Emptive Right Shares, the Subsequent Offering Shares and the Subsequent
Over-Allotment Shares, (ii) the incumbency and signature of the authorized
signatory of the Company executing this Agreement and the Registration Rights
Agreement, (iii) the amended and restated certificate of incorporation and
bylaws of the Company, as in effect on the Initial Closing Date, and (iv) that
the condition to closing set forth in Section 3.1(a)(iii) has been met;

 

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(4)                                  An opinion of U.S. counsel to the Company addressed to the
Buyers, providing that the issuance, sale and delivery to the Buyers of the
Initial Shares, the Pre-Emptive Right Shares, the Subsequent Offering Shares
and the Subsequent Over-Allotment Shares have been duly authorized by all
necessary corporate action and upon issuance against payment therefor and
delivery to the Buyers, such shares will be validly issued, fully paid and
non-assessable; and

 

(5)                                  An opinion of Canadian counsel to the Company addressed to
the Buyers, providing that the issuance of the Initial Shares is exempt from
Canadian prospectus requirements, that such shares are subject to restrictions
on transfer under Canadian law and that such shares are duly listed for trading
on the Toronto Stock Exchange (“TSX”).

 

(iii)                               Deliveries by Buyers.  At the First Initial Closing, Buyers shall
deliver:

 

(1)                                  By wire transfer of immediately available funds, the amount
of the Initial Shares Purchase Price set forth in Exhibit B under
the heading “First Delivery Purchase Price” to an account designated by the
Company prior to the Closing;

 

(2)                                  The Registration Rights Agreement, duly executed by Buyers;
and

 

(3)                                  The Lock-Up Agreement, duly executed by Buyers.

 

(d)                                       Second Initial Closing.

 

(i)                                     The Closing. The
closing of the sale of the Second Delivery Initial Shares (the “Second Initial  Closing”) shall
take place at 10:00 A.M., Denver time, three (3) business days after
the day on which the TSX gives notice to Buyers and/or the Company that the
Personal Information Form (“PIF”) submitted
by a representative of the Buyers has been cleared, provided that the
applicable conditions to closing set forth in Sections 3.1(a) and 3.2(a) have
been met (other than such conditions as can be satisfied only at the Second
Initial Closing), at the offices of Davis Graham & Stubbs LLP, 1550 17th Street, Denver
Colorado 80202, or at such other place or at such other time as shall be agreed
upon by the Company and Buyers.  With the
mutual agreement of the Company and the Buyers, the Second Initial Closing and
the Pre-Emptive Right Closing may occur simultaneously. The time and date on
which the Second Initial Closing is actually held is referred to herein as the “Second Initial Closing
Date”.

 

(ii)                                  Deliveries by the Company.
At the Second Initial Closing, the Company shall deliver:

 

(1)                                  Certificates representing the Second Delivery Initial Shares
duly and validly issued in favor of Buyers and otherwise sufficient to vest in
Buyers good title to the Second Delivery Initial Shares; and

 

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(2)                                  A certificate issued by the secretary or an assistant
secretary of the Company, dated the Second Initial Closing Date, in form and substance
reasonably satisfactory to Buyers, certifying (i) that there have been no
changes to the resolutions of the board of directors of the Company or the
amended and restated certificate of incorporation and bylaws of the Company, in
each case, from the copies delivered to Buyers at the First Initial Closing,
and (ii) that the condition to closing in Section 3.1(a)(iii) has
been met.

 

(iii)                               Deliveries by Buyers.
At the Second Initial Closing, Buyers shall deliver by wire transfer of
immediately available funds the amount of the Initial Shares Purchase Price set
forth in Exhibit B under the heading “Second Delivery Purchase
Price” to an account designated by the Company prior to closing.

 

1.2                               Subsequent Shares.

 

(a)                                        Option to Purchase Additional Shares.

 

(i)                                     Pre-emptive Share Rights.
In connection with the issuance of (1) any Common Stock, other than in an
Exempt Transaction (such issuance, a “Pre-IPO Dilutive Issuance”),
between the date of this Agreement and the earlier of March 31, 2010 or
the day immediately prior to the day on which the Company commences its
roadshow in connection with the Initial Public Offering (the “IPO Launch Date”), or (2) any Common Stock in
connection with any offering described in the Private Placement Memorandum,
provided that such issuance occur prior to the IPO Launch Date (such issuance,
an “Identified Issuance”, and together with
any Pre-IPO Dilutive Issuance, a “Pre-Emptive Right Issuance”),
Buyers shall have the right to purchase additional shares of Common Stock as
provided in this Section 1.2(a)(i). At least three (3) business days
prior to any Pre-Emptive Right Issuance, the Company shall provide notice to
Buyers setting forth (a) the number of shares of Common Stock that are to
be issued and sold by the Company in connection with the Pre-Emptive Right
Issuance (the “New Shares”), (b) the number
of shares of Outstanding Common Stock immediately following the issuance of the
New Shares, and (c) the number of shares of Common Stock which Buyers
shall have the option to purchase from the Company pursuant to this Agreement
(such shares, the “Pre-Emptive Right Shares”)
in order to cause Buyers’ ownership of Common Stock (including the New Shares
and the Initial Shares) on a non-diluted basis immediately following the
issuance of the New Shares to be equal to 19.90% of the Outstanding Common
Stock then outstanding.  Subject to the
terms and conditions of this Agreement, at the Pre-Emptive Right Closing,
Buyers shall have the option to
purchase from the Company, on a private placement basis, some or all of the
Pre-Emptive Right Shares, free and clear of all Encumbrances, except for
any restrictions on transfer arising under the Lock-Up Agreement, the
Securities Act or any applicable state or Canadian provincial securities
laws.  Notwithstanding anything to the
contrary in this Agreement, Buyers shall not have the right to purchase
Pre-Emptive Right Shares pursuant to this Section 1.2(a)(i) unless
such shares may be issued by the Company as a private placement under
applicable TSX rules without obtaining stockholder approval.

 

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(ii)                                  Subsequent Offering Shares.  At least three (3) business days prior
to the IPO Closing Date, the Company shall provide notice to Buyers setting
forth (1) the number of shares of Common Stock that are to be issued and
sold to the public by the Company in connection with the Initial Public
Offering (the “Initial IPO Shares”), (2) the
number of shares of Outstanding Common Stock immediately following the issuance
of the Initial IPO Shares (not including the Subsequent Offering Shares), and (3) the
number of shares of Common Stock which Buyers shall have the option to purchase
from the Company pursuant to this Agreement (such shares, the “Subsequent Offering Shares”) in order to cause Buyers’
aggregate ownership of Common Stock (including the Pre-Emptive Shares and the
Initial Shares) on a non-diluted basis immediately following the issuance of
the Initial IPO Shares to be equal to 19.90% of the Outstanding Common Stock
then outstanding.  Subject to the terms
and conditions of this Agreement, at the Subsequent Offering Closing, Buyers
shall have the option to purchase from
the Company pursuant to the long form prospectus in Canada, in a transaction
completed pursuant to Regulation S outside the United States, some or all of
the Subsequent Offering Shares, free and clear of all Encumbrances,
except for any restrictions on transfer arising under the Lock-Up Agreement,
the Securities Act or any applicable state or Canadian provincial securities
laws.

 

(iii)                               Over-Allotment IPO Shares.  In connection with the Initial Public
Offering, the Company has granted to its Underwriters an option to purchase an
additional number of shares of Common Stock equal to fifteen percent (15%) of
the Initial IPO Shares in order to fill over-allotments, if any (the “Over-Allotment Option”). 
In the event the Over-Allotment Option is exercised in whole or in part,
at least three (3) business days prior to the closing date of the
Over-Allotment Option, the Company shall provide notice to Buyers setting forth
(1) the number of shares of Common Stock that are to be issued and sold to
the public by the Company in connection with the exercise of the Over-Allotment
Option (the “Over-Allotment IPO Shares” and,
together with the Initial IPO Shares, the “IPO Shares”), (2) the
number of shares of Outstanding Common Stock immediately following the issuance
of the Over-Allotment IPO Shares (not including the Subsequent Over-Allotment
Shares), and (3) the number of shares of Common Stock which Buyers shall
have the option to purchase from the Company pursuant to this Agreement (such
shares, the “Subsequent Over-Allotment Shares”)
in order to cause Buyers’ aggregate ownership of Common Stock (including the Initial
Shares, the Pre-Emptive Right Shares and the Subsequent Offering Shares) on a
non-diluted basis immediately following the issuance of the Over-Allotment IPO
Shares to be equal to 19.90% of the Outstanding Common Stock then outstanding.  Subject to the terms and conditions of this
Agreement, at the Subsequent Over-Allotment Closing, Buyers shall have the option to purchase from the Company
pursuant to the long form prospectus in Canada, in a transaction completed
pursuant to Regulation S outside the United States, some or all of the
Subsequent Over-Allotment Shares, free and clear of all Encumbrances, except
for any restrictions on transfer arising under the Lock-Up Agreement, the
Securities Act or any applicable state or Canadian provincial securities laws.

 

(iv)                              Notice and Acceptance.  Buyers may accept the Company’s offer as to
the total number of Pre-Emptive Right Shares, Subsequent Offering Shares, or 

 

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Subsequent Over-Allotment Shares
(together, the “Subsequent Shares”) offered to
it, or any lesser number, by written notice (“Acceptance
Notice”) given to the Company within two (2) business days
following receipt of the notice from the Company pursuant to Section 1.2(a)(i),
(ii) or (iii), as applicable.  The
Acceptance Notice shall specify the number of Pre-Emptive Right Shares,
Subsequent Offering Shares, or Subsequent Over-Allotment Shares, as applicable,
that Buyers agree to purchase.

 

(v)                                 Applicability of Pre-Emptive Rights.  In determining the number
of Pre-Emptive Right Shares, Subsequent Offering Shares or Subsequent
Over-Allotment Shares that Buyers are entitled to purchase pursuant to this
Agreement, the number of shares issued by the Company to any third party (a “Pre-Emptive Rights Holder”) in satisfaction of contractual
pre-emptive rights shall be considered such that following such issuance by the
Company, Buyers’ aggregate ownership of Common Stock on a non-diluted basis
immediately following the issuance shall (assuming Buyers elect to purchase
their full allotment of Pre-Emptive Rights Shares, Subsequent Offering Shares
or Subsequent Over-Allotment Shares) be equal to 19.90% of the Outstanding
Common Stock then outstanding.  In such
event, the number of Subsequent Shares issued to Buyers and the number of
additional shares issued to the Pre-Emptive Rights Holder shall, in each case,
be the lowest number of additional shares of Common Stock possible while
satisfying the Company’s obligation to cause Buyers and the Pre-Emptive Rights
Holder to maintain their contractually agreed pro rata ownership.

 

(b)                                       Subsequent Closing Purchase Price.

 

(i)                                     At the Pre-Emptive Right Closing, Buyers agree to pay to the
Company a purchase price per Pre-Emptive Right Share set forth in the
Acceptance Notice equal to (1) in the case of New Shares issued for cash,
the price per share at which the New Shares are sold by the Company, and (2) in
the case of New Shares issued for consideration other than cash, C$7.06 (the “Pre-Emptive Right Shares Purchase Price”).

 

(ii)                                  At the Subsequent Offering Closing and the Subsequent
Over-Allotment Closing, if applicable, Buyers agree to pay to the Company in
Canada a purchase price per share set forth in the applicable Acceptance Notice
equal to the price at which the IPO Shares are sold to the public (the “Subsequent Shares Purchase Price”).

 

(c)                                        Subsequent Closing.

 

(i)                                     The Closing. The
closing of the sale of the Pre-Emptive Right Shares (the “Pre-Emptive
Right Closing”) shall take place at 10:00 A.M., Denver time, on
the second business day following satisfaction or waiver of each of the
conditions set forth in Sections 3.1(b) and 3.2(b) (other than such
conditions as can be satisfied only at the Closing), at the offices of Davis
Graham & Stubbs LLP, 1550 17th Street, Denver Colorado 80202, or at such
other place or at such other time as shall be agreed upon by the Company and
Buyers.  The closing of the sale of the
Subsequent Offering Shares (the “Subsequent Offering
Closing”) and the Subsequent Over-Allotment Shares (the “Subsequent Over-Allotment Closing”) shall take place at the
Initial Public Offering closing date, or Over-Allotment Option closing date, as
applicable. The time 

 

6

 

and date on which the Pre-Emptive
Right Closing is actually held is referred to herein as the “Pre-Emptive Right Closing Date”; the time and date on which
the Subsequent Offering Closing is actually held is referred to herein as the “Subsequent Offering Closing Date”; and the time and date on
which the Subsequent Over-Allotment Closing is actually held is referred to
herein as the “Subsequent Over-Allotment Closing Date”.
Upon the mutual agreement of the Company and the Buyers, the Pre-Emptive Right
Closing and the Second Initial Closing may occur simultaneously.

 

(ii)                                  Deliveries by the Company.  At the applicable Subsequent Closing, the
Company shall deliver:

 

(1)                                  One or more certificates representing the Pre-Emptive Right
Shares, the Subsequent Offering Shares or Subsequent Over-Allotment Shares, as
applicable, duly and validly issued in favor of Buyers and otherwise sufficient
to vest in Buyers good title to the Pre-Emptive Right Shares, the Subsequent
Offering Shares or Subsequent Over-Allotment Shares, as applicable, in each
case allocated between the Buyers in accordance with the pro rata share
specified in Exhibit B to this Agreement;

 

(2)                                  A certificate issued by the secretary or an assistant
secretary of the Company, dated the applicable Closing Date, in form and
substance reasonably satisfactory to Buyers, certifying (i) that there
have been no changes to the resolutions of the board of directors of the
Company or the amended and restated certificate of incorporation and bylaws of
the Company, in each case, from the copies delivered to Buyers at the Initial
Closing, and (ii) that the condition to closing in Section 3.1(b)(iii) has
been met;

 

(3)                                  At the Pre-Emptive Right Closing, an opinion of Canadian
counsel to the Company providing that the issuance of the Pre-Emptive Right
Shares is exempt from Canadian prospectus requirements, that such shares are
subject to restrictions on transfer under Canadian law and that such shares are
duly listed for trading on the TSX.  At
the Subsequent Offering Closing and the Subsequent Over-Allotment Closing, an opinion
of Canadian counsel to the Company provides that the Subsequent Offering Shares
and Subsequent Over-Allotment Shares are duly listed for trading on the TSX.

 

(4)                                  At the Subsequent Offering Closing, the final Canadian long
form prospectus.

 

(iii)                               Deliveries by Buyer.  At the applicable Subsequent Closing Buyers
shall deliver by wire transfer of immediately available funds the Pre-Emptive
Right Shares Purchase Price or the Subsequent Offering Shares Purchase Price,
as applicable, to an account designated by the Company prior to the applicable
Subsequent Closing.  At the Subsequent
Offering Closing and the Subsequent Over-Allotment Closing, if requested by the
Canadian Underwriter, the Buyers shall deliver to the Canadian Underwriter an
agreement, in form and substance reasonably satisfactory to the Buyers, waiving
any right to make a claim against the Canadian Underwriter in the event 

 

7

 

the Canadian long form prospectus
contains, or is alleged to contain, a misrepresentation or omission of a
material fact.

 

2.                                      REPRESENTATIONS AND WARRANTIES

 

2.1                               Representations and Warranties of the Company.  The Company hereby
represents and warrants to Buyers as follows:

 

(a)                                        Organization.  The Company is a corporation, duly organized,
validly existing and in good standing under the laws of the State of
Delaware.  The Company has the requisite
corporate power and authority to own, lease and operate its assets and
properties and to carry on its business as it is now being conducted.  The Company is qualified to transact business
and is in good standing in each jurisdiction in which the properties owned,
leased or operated by it or the nature of the business conducted by it makes
such qualification necessary, except where the failure to be so qualified and
in good standing would not reasonably be expected to have a Material Adverse
Effect.

 

(b)                                       Authorization; Validity of Agreement.  The Company has full
corporate power and authority to execute and deliver this Agreement and the
Registration Rights Agreement and to consummate the transactions contemplated
hereby and thereby.  The execution,
delivery and performance by the Company of this Agreement and the Registration
Rights Agreement and the consummation of the transactions contemplated hereby
and thereby have been duly authorized by the Company’s Board of Directors, and
no other corporate action on the part of the Company is necessary to authorize
the execution and delivery by the Company of this Agreement or the Registration
Rights Agreement or the consummation of the purchase and sale of the Shares.

 

(c)                                        Subsidiaries.  Each direct and indirect Subsidiary of the
Company is duly organized, validly existing and in good standing under the laws
of its jurisdiction of formation and has the requisite power and authority to
own, lease and operate its assets and properties and to carry on its business
as it is now being conducted and each Subsidiary of the Company is qualified to
transact business, and is in good standing, in each jurisdiction in which the
properties owned, leased or operated by it or the nature of the business
conducted by it makes such qualification necessary; except, in all cases, where
the failure to be so organized, existing, qualified and in good standing would
not reasonably be expected to have a Material Adverse Effect. The
organizational diagram which is part of the Private Placement Memorandum
accurately describes the direct or beneficial ownership of each direct or
indirect Subsidiary of the Company in all material respects.

 

(d)                                       Execution; Validity of Agreement.  This Agreement has
been duly executed and delivered by the Company and, assuming due and valid
authorization, execution and delivery hereof by Buyer, is a valid and binding
obligation of the Company, enforceable against the Company in accordance with
its terms, except as such enforceability may be limited by the effects of
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium, and
other laws relating to or affecting creditors’ rights, and the general
principles of equity.

 

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(e)                                        Consents and Approvals; No Violations.  Except for approval
of the listing of the Shares by the Toronto Stock Exchange and, if applicable,
the NYSE Amex, none of the execution, delivery or performance of this Agreement
and the Registration Rights Agreement by the Company, the consummation by the
Company of the issuance and sale of the Shares in accordance herewith or
compliance by the Company with any of the provisions hereof will (1) conflict
with or result in any breach of any provision of the certificate of
incorporation or bylaws of the Company or any of its Subsidiaries, (2) require
any filing with (except for filings with the SEC, the Ontario Securities
Commission, the TSX, and other regulatory authorities advising them of the
issuance and sale of the Shares), or permit, authorization, consent or approval
of, any Governmental Entity or any other Person, (3) result in a violation
or breach of, or constitute (with or without due notice or lapse of time or
both) a default (or give rise to any right of termination, cancellation or
acceleration) under, any of the terms, conditions or provisions of any note,
bond, mortgage, indenture, lease, license, contract, agreement or other
instrument or obligation to which the Company or any of its Subsidiaries is a
party, other than such violation, breach or default as would not reasonably be
expected to have a Material Adverse Effect, or (4) violate any order,
writ, injunction, decree, statute, rule or regulation applicable to the
Company or any of its Subsidiaries, other than such violation as would not
reasonably be expected to have a Material Adverse Effect.

 

(f)                                          Good Title Conveyed.  At the time of issuance, the Shares will be
duly authorized, validly issued, fully paid and nonassessable and, not subject
to any preemptive rights.  The Shares,
when issued, will be free and clear of all Encumbrances, except for any
restrictions on transfer arising under the Lock-Up Agreement, the Securities
Act or any applicable state or Canadian provincial securities laws.

 

(g)                                       Capitalization.  The authorized capital of the Company
consists of (i) 50,000,000 shares of Common Stock, of which 3,255,000 are
issued and outstanding as of the date of this Agreement, including 255,000
shares of restricted stock which are subject to forfeiture conditions, and (ii) 10,000,000
shares of preferred stock, par value $0.01 per share, none of which are issued
and outstanding.  Except for (a) the
Shares, (b) shares of Common Stock to be issued in connection with the
anticipated Initial Public Offering, (c) 25,000 shares of Common Stock to
be issued to directors of Golden Minerals pursuant to outstanding restricted
stock units, (d) shares of Common Stock which may be issued in the
ordinary course pursuant to the Company’s 2009 Equity Incentive Plan, and (e) any
potential issuance identified in the Private Placement Memorandum, the Company
has not issued or committed to issue any shares of Common Stock or preferred
stock or any rights, warrants, options to acquire any shares of any class of
capital stock of the Company.

 

(h)                                       Filings.  The Company is a reporting issuer in the
Province of Ontario and is not in default in any material respect of any of the
requirements of the Securities Act (Ontario) and the rules and regulations
adopted thereunder together with applicable policy statements of the Ontario
Securities Commission and rules of the Toronto Stock Exchange
(collectively, the “Canadian Securities Laws”).  The Company has made all filings with the SEC
that it has been required to make under the Securities Act and the Exchange Act
and all filings that it has been required to make pursuant to the Canadian
Securities Laws, including the Canadian long form prospectus (collectively, but
not including any report prepared pursuant to Canadian National Instrument
43-101- Standards of Disclosure for Mineral Projects, the “Public 

 

9

 

Reports”).  The Company
prepared the Public Reports and the Private Placement Memorandum in good faith,
and to the Company’s knowledge (after reasonably prudent inquiry), none of the
Public Reports, as of their respective dates, contained any untrue statement of
a material fact or omitted to state a material fact necessary in order to make
the statements made therein, in light of the circumstances under which they
were made, not misleading.  The Company
is a domestic issuer, as defined in Rule 902 under the Securities Act.

 

(i)                                           Financial Statements.  The financial statements included in the
Public Reports (including the related notes and schedules) (the “Financial Statements”) have been prepared in accordance with
United States generally accepted accounting principles applied on a consistent
basis throughout the periods covered thereby and fairly present in all material
respects the financial condition of the Company as of the indicated dates and
the results of operations of the Company for the indicated periods, subject, in
the case of unaudited consolidated financial statements, to normal year-end
adjustments.

 

(j)                                           Absence of Changes.  Since September 30, 2009, (i) no
event has occurred which has caused or constitutes a Material Adverse Effect,
and (ii) neither the Company nor any of its Subsidiaries has entered into
any agreement that was material to the Company and was required to be disclosed
pursuant to Form 8-K under the Exchange Act that has not been disclosed.

 

(k)                                        Litigation. There are
no claims, suits, actions or proceedings pending or, to the knowledge of the
Company, threatened against, relating to or affecting the Company or any of its
Subsidiaries, before any court, governmental department, commission, agency,
instrumentality or authority, or any arbitrator that would reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect.  Neither the Company nor any of its
Subsidiaries is subject to any judgment, decree, injunction, rule or order
of any court, governmental department, commission, agency, instrumentality or
authority, or any arbitrator which prohibits the consummation of the
transactions contemplated hereby or would reasonably be expected, individually
or in the aggregate, to have a Material Adverse Effect.

 

(l)                                           No Violation or Default.
Neither the Company nor any of its Subsidiaries is: (i) in violation of
its certificate of incorporation or by-laws or similar organizational
documents; (ii) in default, and no event has occurred that, with notice or
lapse of time or both, would constitute such a default, in the due performance
or observance of any term, covenant or condition contained in any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to
which the Company or any of its subsidiaries is a party or by which the Company
or any of its Subsidiaries is bound or to which any of the property or assets
of the Company or any of its Subsidiaries is subject; or (iii) in
violation of any law or statute or any judgment, order, rule or regulation
of any court or arbitrator or governmental or regulatory authority, except, in
each case, for any such default or violation that would not, individually, or
in the aggregate, have a Material Adverse Effect.

 

(m)                                     Taxes. The
Company and its Subsidiaries have paid all material federal, state, local and
foreign taxes and filed all material tax returns required to be paid or filed
through the date hereof, and there is no tax deficiency that has been, or would
reasonably be expected to be, asserted against the Company or any of its
Subsidiaries or any of their respective 

 

10

 

properties
or assets, except for such deficiency as would not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect.

 

(n)                                       Compliance with Environmental Laws. (i) The Company and its Subsidiaries (x) are in
compliance with any and all applicable federal, state, local and foreign laws,
rules, regulations, requirements, decisions and orders relating to the
protection of human health and safety, the environment or hazardous or toxic
substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”); (y) have received and are in
compliance with all permits, licenses, certificates or other authorizations or
approvals required of them under applicable Environmental Laws to conduct their
respective businesses; and (z) have not received notice of any actual or
potential liability for the investigation or remediation of any disposal or
release of hazardous or toxic substances or wastes, pollutants or contaminants,
and (ii) there are no costs or liabilities associated with Environmental
Laws of or relating to the Company or its Subsidiaries, except for any such
failure to comply, or failure to receive required permits, licenses or
approvals, or cost or liability, as would not, individually or in the
aggregate, have a Material Adverse Effect.

 

(o)                                       Compliance with ERISA. (i) Each employee benefit plan, within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), for which the Company or any member of its “Controlled
Group” (defined as any organization which is a member of a controlled group of
corporations within the meaning of Section 414 of the Internal Revenue
Code of 1986, as amended (the “Code”)) would
have any liability (each, a “Plan”) has been
maintained in compliance with its terms and the requirements of any applicable
statutes, orders, rules and regulations, including but not limited to
ERISA and the Code; and (ii) no prohibited transaction, within the meaning
of Section 406 of ERISA or Section 4975 of the Code, has occurred
with respect to any Plan excluding transactions effected pursuant to a
statutory or administrative exemption; except where those events or conditions
described in clauses (i) or (ii) above would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(p)                                       Insurance. The Company and its Subsidiaries have insurance covering
their respective properties, operations, personnel and businesses, which
insurance is in amounts and insures against such losses and risks as are
customary in the industry.  Neither the
Company nor any of its Subsidiaries 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 at reasonable cost from similar insurers
as may be necessary to continue its business.

 

(q)                                       Mineral Resources.

 

(i)                                     The Company has made available to Buyer the estimate of
mineral resources at the Yaxtche zone at the Company’s El Quevar project, as
prepared by Chlumsky, Armbrust & Meyer LLC, dated October 12,
2009 (the “Technical Report”).  The Technical Report was prepared in all
material respects in accordance with Canadian National Instrument 43-101-
Standards of Disclosure for Mineral Projects. 
Except as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect, to the Company’s knowledge, the
factual, non-interpretive data 

 

11

 

on which the Technical Report was
based for purposes of estimating the mineral resources set forth in the
Technical Report was accurate in all material respects.

 

(ii)                                  Except as otherwise described in the Public Reports or the
Technical Report, the Company has good and defensible title to all interests in
mining claims, concessions, exploitation or extraction rights or similar rights
described in the Technical Report, free and clear of all Encumbrances, except
such as are described in the Public Reports or the Technical Report or such as
do not (individually or in the aggregate) materially affect the value of such
property or materially interfere with the use made or proposed to be made of
such property by the Company and the Subsidiaries.

 

(r)                                          Brokers or Finders.  Except as set forth in the Private Placement
Memorandum, the Company has not entered into any agreement or arrangement
entitling any agent, broker, investment banker, financial advisor or other firm
or Person to any broker’s or finder’s fee or any other commission or similar
fee in connection with any of the transactions contemplated by this Agreement.

 

(s)                                        Internal Controls.  The Company maintains a system of internal
accounting and other controls sufficient to provide reasonable assurances 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 United States generally
accepted accounting principles and to maintain accountability for assets, (iii) access
to assets is permitted only in accordance with management’s general or specific
authorization, and (iv) the recorded accounting for assets is compared
with existing assets at reasonable intervals and appropriate action is taken
with respect to any differences.  The
books and records of the Company disclose all of their material financial
transactions and such transactions have been fairly and accurately
recorded.  The minute books and corporate
records of the Company are true and correct in all material respects and
contain all minutes of all meetings and all resolutions of the directors (and
any committees of such directors) as at the date hereof.

 

(t)                                          Sarbanes-Oxley Act of 2002.  The Company is in compliance in all material
respects with its obligations under the Sarbanes-Oxley Act of 2002, as amended.

 

2.2                               Buyer Representations and Warranties.  Buyers, each
severally with respect to the Shares purchased by it, hereby represent and
warrant to the Company as follows:

 

(a)                                        Organization; Authorization; Validity of Agreement.  Each Buyer is a
limited partnership duly organized, validly existing and in good standing under
the laws of the Cayman Islands and has full limited partnership power and
authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby.  The
execution, delivery and performance by Buyers of this Agreement and the
consummation of the transactions contemplated hereby have been duly authorized
by Buyers, and no other action on the part of Buyers is necessary to authorize
the execution and delivery by Buyers of this Agreement or the consummation of
the transactions contemplated hereby.  No
vote of, or consent by, the limited partners of Buyers is necessary to
authorize the execution and delivery by Buyers of this Agreement or the
consummation by it of the purchase and sale of the Shares.

 

12

 

(b)                                       Execution; Validity of Agreement.  This Agreement has
been duly executed and delivered by Buyers, and assuming due and valid
authorization, execution and delivery hereof by the Company, is a valid and
binding obligation of each Buyer, enforceable against each Buyer in accordance
with its terms, except as such enforceability may be limited by the effects of
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium, and
other laws relating to or affecting creditors’ rights, and the general
principles of equity.

 

(c)                                        Consents and Approvals; No Violations.  None of the
execution, delivery or performance of this Agreement, the Registration Rights
Agreement or the Lock-Up Agreement by Buyers, the consummation by Buyers of the
purchase and sale of the Shares or compliance by Buyers with any of the
provisions hereof or thereof will (1) conflict with or result in any
breach of any provision of the certificate of limited partnership and agreement
of limited partnership of either Buyer, (2) require any filing with
(except for filings with the SEC, the Ontario Securities Commission, the TSX,
and other regulatory authorities advising them of the issuance and sale of the
Shares), or permit, authorization, consent or approval of, any Governmental
Entity, except for approval of the listing of the Shares by the Toronto Stock
Exchange and, if applicable, the NYSE Amex, (3) result in a violation or
breach of, or constitute (with or without due notice or lapse of time or both)
a default (or give rise to any right of termination, cancellation or
acceleration) under, any of the terms, conditions or provisions of any note, bond,
mortgage, indenture, lease, license, contract, agreement or other instrument or
obligation to which either Buyer is a party or to which its assets are subject,
or (4) violate any order, writ, injunction, decree, statute, rule or
regulation applicable to either Buyer.

 

(d)                                       Investment Representations.

 

(i)                                     Each Buyer is acquiring the Shares for investment and not
with a view toward, or for sale in connection with, any distribution thereof,
nor with any present intention of distributing or selling the Shares.

 

(ii)                                  Each Buyer is an “accredited investor” as defined in
Regulation D under the Securities Act and in National Instrument 45-106 -
Prospectus and Registration Exemptions and able to bear the economic risk of
holding the Shares for an indefinite period, and has knowledge and experience
in financial and business matters such that it is capable of evaluating the
risks of the investment in the Shares.

 

(iii)                               Each Buyer’s principal address is outside the United States
and neither Buyer is a “U.S. person” as defined in Rule 902 under the
Securities Act (a “Non-U.S. Person”).  Each Buyer is acquiring the Shares outside of
the United States in accordance with Regulation S under the Securities
Act.  The purchase of the Shares by each
Buyer is for such Buyer’s own account or for the account of one or more
Affiliates of Buyers who are Non-U.S. Persons located outside the United
States.

 

(iv)                              Each Buyer acknowledges that it has received a copy of the
final Private Placement Memorandum relating to the offering of the Shares and
that it has had the right to ask questions of and receive answers from the
Company and its officers and directors, and to obtain such information as
Buyers deem necessary to verify the accuracy (a) of the information
referred to in the Private Placement Memorandum and 

 

13

 

(b) of any other information
that we deem relevant to making an investment decision with respect to the
Shares.

 

(v)                                 At the date hereof and immediately prior to the Initial Closing,
neither Buyer is an “affiliate” (as defined in Rule 144 under the
Securities Act) of the Company or acting on behalf of an affiliate of the
Company.

 

(vi)                              Each Buyer acknowledges that the Shares are being offered in
a transaction not involving any public offering within the United States within
the meaning of the Securities Act and that the Shares have not been registered
under the Securities Act and will bear the legend set forth below:

 

THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR ANY STATE
SECURITIES LAWS, AND MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO
THE COMPANY, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
U.S. SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH
REGULATION S UNDER THE U.S. SECURITIES ACT, (D) IN COMPLIANCE WITH THE
EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE
SECURITIES LAWS, OR (E) IN A TRANSACTION THAT DOES NOT REQUIRE
REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE LAWS AND
REGULATIONS GOVERNING THE OFFER AND SALE OF SECURITIES, AND, IN THE CASE OF
(C), (D) OR (E), THE HOLDER HAS PRIOR TO SUCH TRANSFER FURNISHED TO THE
CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND
SUBSTANCE SATISFACTORY TO THE CORPORATION.

 

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

 

For the Initial Shares and Pre-Emptive Right
Shares Only:

 

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE
HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE [insert date that is 4 months and a day after issuance].

 

14

 

(e)                                        Golden Minerals Shares.  As of the date hereof, neither Buyers nor any
of their Affiliates are the beneficial owner (as defined in Rule 13d-3
under the Exchange Act) of any Common Stock.

 

(f)                                          Brokers or Finders.  Buyers have not entered into any agreement or
arrangement entitling any agent, broker, investment banker, financial advisor
or other firm or Person to any broker’s or finder’s fee or any other commission
or similar fee in connection with any of the transactions contemplated by this
Agreement.

 

(g)                                       Non-Reliance of Buyer.  Except for the specific representations and
warranties expressly made by the Company in Section 2.1 of this Agreement,
Buyers acknowledge that (a) neither the Company, its Affiliates nor any
other Person has made any representation or warranty, express or implied, as to
the Company, the Company’s business, assets, liabilities, operations,
prospects, condition (financial or otherwise), including with respect to the
effectiveness or success of the Company’s exploration activities or future
capital raising activities, and (b) no officer, agent, representative or
employee of the Company has any authority, express or implied, to make any
representations, warranties or agreements not specifically set forth in this Agreement.
Each Buyer specifically disclaims that it is relying upon or has relied upon
any representations or warranties that may have been made by any Person except
for the specific representations and warranties expressly made by the Company
in Section 2.1.  Any inspection,
investigation or review performed by Buyers in connection with this Agreement
will not affect or negate the representations and warranties of the Company
contained herein.

 

3.                                      CONDITIONS TO CLOSING

 

3.1                               Conditions to Obligations of Buyers to Close.

 

(a)                                        Initial Closing Date.  The obligations of Buyers to consummate the
purchase and sale of the Initial Shares shall be subject to the satisfaction or
waiver on or prior to the First Initial Closing Date or Second Initial Closing
Date, as applicable, of each of the following conditions:

 

(i)                                     Statutes; Court Orders.  No statute, rule or regulation shall
have been enacted or promulgated by any Governmental Entity which prohibits the
consummation of the purchase and sale of the Initial Shares; and there shall be
no order or injunction of a court of competent jurisdiction in effect
precluding or prohibiting consummation of the purchase and sale of the Initial
Shares.

 

(ii)                                  Government Action.  There shall not be threatened or pending any
suit, action or proceeding by any Governmental Entity seeking to restrain or
prohibit the consummation of the purchase and sale of the Initial Shares or
seeking to impose material limitations on the ability of Buyers effectively to
exercise full rights of ownership of the Initial Shares, including the right to
vote the Shares.

 

(iii)                               Representations and Warranties.  The representations and warranties of the
Company set forth in this Agreement shall be true and correct as of the First
or Second Initial Closing Date, as applicable, as though made on and as of such

 

15

 

date, except where the failure to
do so would not have a Material Adverse Effect, provided that if any
fact or condition occurs after the date of this Agreement and such fact or
condition causes any representation or warranty in this Agreement to be untrue,
misleading or inaccurate in any material respect, the Company will deliver to
Buyers a certificate describing the exceptions to the applicable representation
(a “Representation Update Certificate”), and
such Representation Update Certificate will be deemed to modify automatically
the applicable representation or warranty; provided, however,
that if such Representation Update Certificate reflects an occurrence which
could reasonably be expected to have a Material Adverse Effect, Buyers shall be
entitled to reject the Representation Update Certificate and the condition set
forth in this Section 3.1(a)(iii) shall not be met.

 

(iv)                              Covenants.  The Company shall have complied in all
material respects with all covenants, agreements and obligations of the Company
contained in this Agreement.

 

(v)                                 Consents and Approvals.  The Company shall have delivered to Buyers a
letter from the TSX evidencing the conditional approval of the sale of the
Initial Shares and, with respect to the Second Initial Closing, TSX shall have
given notice to Buyer and/or the Company that the PIF submitted by a
representative of the Buyers has been cleared.

 

(vi)                              Deliveries at Closing.  Buyers shall have received from the Company
each of the deliveries set forth in Section 1.1(c)(ii) or 1.1(d)(ii),
as applicable.

 

(b)                                       Subsequent Closing Date.  The obligations of Buyers to consummate the
purchase and sale of the number of Pre-Emptive Right Shares, the Subsequent
Offering Shares and the Subsequent Over-Allotment Shares that Buyers have
elected to purchase pursuant to Section 1.2(a) shall be subject to
the satisfaction or waiver on or prior to the applicable Subsequent Closing
Date of each of the following conditions:

 

(i)                                     Statutes; Court Orders.  No statute, rule or regulation shall
have been enacted or promulgated by any Governmental Entity which prohibits the
consummation of the purchase and sale of the Pre-Emptive Right Shares, the
Subsequent Offering Shares or the Subsequent Over-Allotment Shares, as
applicable; and there shall be no order or injunction of a court of competent
jurisdiction in effect precluding or prohibiting consummation of the purchase
and sale of the Pre-Emptive Right Shares, the Subsequent Offering Shares or the
Subsequent Over-Allotment Shares, as applicable.

 

(ii)                                  Government Action.  There shall not be threatened or pending any
suit, action or proceeding by any Governmental Entity seeking to restrain or
prohibit the consummation of the purchase and sale of the Pre-Emptive Right
Shares, the Subsequent Offering Shares or the Subsequent Over-Allotment Shares,
as applicable, or the performance of any of the other transactions reasonably
related thereto or seeking to impose material limitations on the ability of
Buyers effectively to exercise full rights of ownership of the Pre-Emptive
Right Shares, the Subsequent Offering Shares or the Subsequent Over-Allotment
Shares, as applicable, including the right to vote such Shares.

 

16

 

(iii)                               Representations and Warranties.  The representations and warranties of the
Company set forth in this Agreement shall be true and correct as of the
applicable Subsequent Closing Date, as applicable, as though made on and as of
such Closing Date, except where the failure to do so would not have a Material
Adverse Effect, provided that if any fact or condition occurs after the
date of this Agreement and such fact or condition causes any representation or
warranty in this Agreement to be untrue, misleading or inaccurate in any
material respect, the Company will deliver to Buyers a Representation Update
Certificate, and such Representation Update Certificate will be deemed to
modify automatically the applicable representation or warranty; provided,
however, that if such Representation Update Certificate reflects an
occurrence which could reasonably be expected to have a Material Adverse
Effect, Buyers shall be entitled to reject the Representation Update Certificate
and the condition set forth in this Section 3.1(b)(iii) shall not be
met.

 

(iv)                              Covenants.  The Company shall have complied in all
material respects with all covenants, agreements and obligations of the Company
contained in this Agreement.

 

(v)                                 Consents and Approvals.  The Company shall have received listing
approval from the Toronto Stock Exchange and the NYSE Amex (if the Company’s
Common Stock is then listed for trading on the NYSE Amex) for the Pre-Emptive
Right Shares, the Subsequent Offering Shares and the Subsequent Over-Allotment
Shares, as applicable, and the TSX shall have given notice to Buyer and/or the
Company that the PIF submitted by a representative of the Buyers has been
cleared.

 

(vi)                              Pre-Emptive Right Closing.  With respect to the Pre-Emptive Right Closing
only, the Company shall have issued the New Shares.

 

(vii)                           Initial Public Offering.  With respect to the Subsequent Offering
Closing and Subsequent Over-Allotment Closing only, the Initial Public Offering
shall have closed and the Initial IPO Shares shall have been issued to the
Underwriters in connection therewith.

 

(viii)                        Over-Allotment Option.   With respect to the Subsequent
Over-Allotment Closing only, the Over-Allotment Option shall have closed and
the Subsequent Over-Allotment Shares shall have been issued to the Underwriters
in connection therewith.

 

(ix)                                Deliveries at Closing.  Buyers shall have received from the Company
each of the deliveries set forth in Section 1.2(c)(ii).

 

(c)                                        Waiver.  The conditions set forth in this Section 3.1
are for the sole benefit of Buyers, may be waived by Buyers, in whole or in
part, at any time and from time to time in the sole discretion of Buyers.

 

17

 

3.2                               Conditions to Obligations of the Company to
Close.

 

(a)             Initial
Closing Date.  The obligations of the
Company to consummate the purchase and sale of the Initial Shares shall be
subject to the satisfaction on or prior to the First Initial Closing Date or
Second Initial Closing Date, as applicable, of each of the following
conditions:

 

(i)            Statutes; Court Orders.  No statute, rule or regulation shall
have been enacted or promulgated by any Governmental Entity which prohibits the
consummation of the purchase and sale of the Initial Shares; and there shall be
no order or injunction of a court of competent jurisdiction in effect
precluding or prohibiting consummation of the purchase and sale of the Initial
Shares.

 

(ii)           Government Action.  There shall not be threatened or pending any
suit, action or proceeding by any Governmental Entity seeking to restrain or
prohibit the consummation of the purchase and sale of the Initial Shares.

 

(iii)          Representations and Warranties.  The representations and warranties of Buyers
set forth in this Agreement shall be true and correct in all material respects
as though made on and as of the Initial Closing Date, except when the failure
to do so would not have a material adverse effect on the ability of Buyers to
perform its obligations under this Agreement or the availability of an
exemption from registration pursuant to Regulation S under the Securities Act.

 

(iv)          Covenants.  Buyers shall have complied in all material
respects with all covenants, agreements and obligations of Buyers contained in
this Agreement.

 

(v)           Consents and Approvals.  The Company shall have received conditional
approval from the Toronto Stock Exchange for the issuance of the Initial
Shares.

 

(vi)          Deliveries at Closing.  The Company shall have received from Buyers
each of the deliveries set forth in Section 1.1(c)(iii) or
1.1(d)(iii), as applicable.

 

(b)             Closing
Date.  The obligations of the Company
to consummate the issuance and sale of the Pre-Emptive Right Shares, the
Subsequent Offering Shares and the Subsequent Over-Allotment Shares, as
applicable, shall be subject to the satisfaction or waiver on or prior to the
applicable Closing Date of each of the following conditions:

 

(i)            Statutes; Court Orders.  No statute, rule or regulation shall
have been enacted or promulgated by any Governmental Entity which prohibits the
consummation of the purchase and sale of the Pre-Emptive Right Shares, the
Subsequent Offering Shares or the Subsequent Over-Allotment Shares, as
applicable; and there shall be no order or injunction of a court of competent
jurisdiction in effect precluding or prohibiting consummation of the purchase
and sale of the Pre-Emptive Right Shares, the Subsequent Offering Shares or the
Subsequent Over-Allotment Shares, as applicable.

 

18

 

(ii)           Government Action.  There shall not be threatened or pending any
suit, action or proceeding by any Governmental Entity seeking to restrain or
prohibit the consummation of the purchase and sale of the Pre-Emptive Right
Shares, the Subsequent Offering Shares or the Subsequent Over-Allotment Shares,
as applicable.

 

(iii)          Representations and Warranties.  The representations and warranties of Buyers
set forth in this Agreement shall be true and correct in all material respects
as though made on and as of the applicable Closing Date, except when the
failure to do so would not have a material adverse effect on the ability of
Buyers to perform its obligations under this Agreement or the availability of
an exemption from registration pursuant to Regulation S under the Securities
Act.

 

(iv)          Covenants.  Buyers shall have complied in all material
respects with all covenants, agreements and obligations of Buyers contained in
this Agreement.

 

(v)           Consents and Approvals.  The Company shall have received listing
approval from the Toronto Stock Exchange and the NYSE Amex (if the Company’s
Common Stock is then listed for trading on the NYSE Amex) for the Subsequent
Offering Shares and the Subsequent Over-Allotment Shares, as applicable.

 

(vi)          Pre-Emptive Right Closing.  With respect to the Pre-Emptive Right Closing
only, the Company shall have issued the New Shares.

 

(vii)         Initial Public Offering.  With respect to the Subsequent Offering
Closing and the Subsequent Over-Allotment Closing only, the Initial Public
Offering shall have closed and the Initial IPO Shares shall have been issued to
the Underwriters in connection therewith.

 

(viii)        Over-Allotment Option.   With respect to the Subsequent
Over-Allotment Closing only, the Over-Allotment Option shall have closed and
the Over-Allotment IPO Shares shall have been issued to the Underwriters in
connection therewith.

 

(ix)           Deliveries at Closing.  The Company shall have received from Buyers
each of the deliveries set forth in Section 1.2(c)(iii).

 

(c)             Waiver.  The foregoing conditions are for the sole
benefit of the Company, may be waived by the Company, in whole or in part, at
any time and from time to time in the sole discretion of the Company.

 

4.                                      ADDITIONAL COVENANTS.

 

4.1          Standstill.  From the date hereof
until the First Initial Closing Date, and for a period of two (2) years
after the First Initial Closing Date, without the prior consent of the board of
directors of the Company, Buyers shall not, directly or indirectly through any
Affiliate, acquire or offer to acquire or agree to acquire (including in the
public markets or pursuant to the purchase of Subsequent Offering Shares or
Subsequent Over-Allotment Shares pursuant to this Agreement) from any Person,
directly or indirectly, by purchase or merger, through the 

 

19

 

acquisition
of control of another Person, by joining a partnership, limited partnership or
other “group” (within the meaning of Section 13(d)(3) of the Exchange
Act) or otherwise beneficial ownership of Common Stock if such acquisition
would cause Buyers’ aggregate beneficial ownership of Common Stock of the
Company to exceed twenty-two and five-tenths percent (22.50%) of the
Outstanding Common Stock of the Company, or direct or indirect rights
(including convertible securities, warrants or options) to acquire such
beneficial ownership (or otherwise act in concert with respect to any such
securities, rights or options with any Person that so acquires, offers to
acquire or agrees to acquire), provided, however,  that no violation of this Section 4.1 shall be
deemed to have occurred solely due to acquisitions resulting from (1) a
stock split, reverse stock split, reclassification or other transaction by the
Company affecting any class of the outstanding capital stock of the Company
generally, (2) a stock dividend or other pro rata distribution by the
Company to holders of its outstanding capital stock, or (3) any increase
in the percentage ownership by Buyers of outstanding shares of Common Stock
resulting from any action taken by the Company, including the repurchase of
shares of Common Stock pursuant to any share repurchase or similar program; provided,
further that if Buyers or their Affiliates shall become the beneficial
owner of more than twenty-two and five-tenths percent (22.50%) of the
Outstanding Common Stock in the aggregate as a result of any of the
transactions set forth in the preceding clause (1), (2) or (3), then for
so long as Buyers’ beneficial ownership remains above such threshold, the
acquisition of additional shares of Common Stock by Buyers or their Affiliates
(including direct or indirect rights to acquire Common Stock) shall be
prohibited by this Article IV.

 

4.2          Transfer Restrictions.  Buyers
acknowledge that the Shares are being offered in a transaction not involving
any public offering within the United States within the meaning of the
Securities Act and that the Shares have not been registered under the
Securities Act.  Buyers shall not make
any sale or other disposition of all or any portion of the Shares except: (a) to
the Company, (b) pursuant to an effective registration statement under the
Securities Act, (c) outside the United States in compliance with
Regulation S under the Securities Act, (d) pursuant to an exemption from
registration under the Securities Act and in compliance with any applicable
state securities laws, or (e) in a transaction that does not require
registration under the Securities Act or any applicable state securities laws
and regulations governing the offer and sale of securities.  In connection with a sale pursuant to clause
(c), (d) or (e), Buyers shall furnish to the Company an opinion of counsel
of recognized standing in form and substance satisfactory to the Company.  The Company shall instruct its transfer agent
to refuse to register any disposition of the Shares not made in compliance with
this Section 4.2.

 

4.3          Hedging Transactions. Buyers shall not engage in hedging transactions involving the Shares unless in
compliance with the Securities Act.

 

4.4          Listing.  The Company
shall use commercially reasonable efforts to cause the Company’s Common Stock
to become listed on the NYSE Amex or another United States national securities
exchange.

 

4.5          Observer
Rights.  The Company shall invite one representative
selected by the Buyers to attend all meetings of its Board of Directors (“Board”) in a nonvoting observer capacity and, in this
respect, shall give such representative copies of all notices, minutes,
consents, and other materials that it provides to its directors in connection
with any meeting of 

 

20

 

the Board; provided, however, that such representative shall agree
to hold in confidence and trust and to act in a fiduciary manner with respect
to all information so provided; and provided further, that the Company
reserves the right to withhold any information and to exclude such
representative from any meeting or portion thereof if access to such
information or attendance at such meeting could adversely affect the
attorney-client privilege between the Company and its counsel or result in
disclosure of trade secrets or a conflict of interest.  Upon the request of the Company, the Buyers
and the representative of Buyers shall enter into a confidentiality agreement
satisfactory to the Company in its reasonable discretion before exercising any
observer rights provided pursuant to this Section 4.5.  The rights provided in this Section 4.5
shall expire on the earlier of:  (i) the
date, following the Second Initial Closing Date (or following March 31,
2010, if earlier), on which Buyer ceases to beneficially own at least seventeen
percent (17%) of the Company’s Outstanding Common Stock (including Shares
reflected in an Acceptance Notice for which the Subsequent Closing has not yet
occurred), or (ii) the date on which the stockholders of the Company elect
Buyer’s Nominee to serve on the Board pursuant to Section 4.6 hereof.

 

4.6                               Board of Directors.

 

(a)             Nomination
of Buyer Representative.  Subject to
the terms and conditions of this Section 4.6, beginning with the first
annual meeting of the Company’s stockholders after March 2011, Buyers
shall be entitled to designate one nominee for election to serve on the Board
(such individual, a “Nominee”).  Buyers shall provide written notice to the
Board  at least one hundred days prior to the first anniversary of
the preceding year’s annual meeting, identifying the name of the Buyers’
proposed Nominee and the information required by Regulation 14A under the
Exchange Act and the Company’s bylaws for each such Nominee (the “Nomination Notice”). 
Upon receiving a Nomination Notice, the Board shall take all actions
reasonably necessary to include such Nominee in the Company’s next election of
members of the Board by the stockholders and shall also recommend that the
stockholders of the Company vote for such Nominee for election to the Board,
including providing its written recommendation in any proxy materials presented
to the stockholders of the Company for such election.

 

(b)             Termination of Rights.  The
rights provided in this Section 4.6 shall expire on the earlier of: (i) the
date, following the Second Initial Closing Date (or March 31, 2010, if
earlier), on which Buyers cease to beneficially own together at least seventeen
percent (17%) of the Company’s Outstanding Common Stock (including Shares
reflected in an Acceptance Notice for which the Subsequent Closing has not yet
occurred), or (ii) the date of the Company’s first annual general meeting
of stockholders after March 2011, if the Company’s stockholders do not
elect Buyers’ Nominee.

 

5.                                      TERMINATION

 

5.1                               Termination prior
to First Initial Closing.  This Agreement may be terminated at any time prior to the
First Initial Closing:

 

(a)             by
mutual written consent of Buyers and the Company;

 

21

 

(b)             by
either Buyers or the Company if the issuance and sale of the First Delivery
Initial Shares shall not have occurred on or before January 31, 2010 (the “Initial Closing  Outside Date”);
provided, however, that the right to terminate this Agreement
under this Section 5.1(b) shall not be available to any party whose
failure to fulfill any obligation under this Agreement has been the cause of,
or resulted in, the failure of the Closing to occur on or before the Initial
Closing Outside Date;

 

(c)             by
either Buyers or the Company if a court of competent jurisdiction or
governmental, regulatory or administrative agency or commission shall have
issued an order, decree or ruling or taken any other action (which order,
decree or ruling each of the parties hereto shall use all reasonable efforts to
lift), in each case permanently restraining, enjoining or otherwise prohibiting
the issuance and sale of the Initial Shares, and such order, decree, ruling or
other action shall have become final and nonappealable;

 

(d)             by
Buyers if prior to the Initial Closing, there shall be a breach of any
representation, warranty, covenant or agreement of the Company in this
Agreement such that the conditions set forth in Section 3.1(a)(iii) and
(iv) are not capable of being satisfied on or before the Initial Closing
Outside Date, provided that Buyers may not terminate this Agreement
pursuant to this clause (d) if Buyers are in material breach of this Agreement;

 

(e)             by the
Company if, prior to the Initial Closing, there shall be a breach of any
representation, warranty, covenant or agreement of Buyer in this Agreement such
that the conditions set forth in Section 3.2(a)(iii) and (iv) are
not capable of being satisfied on or before the Initial Closing Outside Date; provided
that the Company may not terminate this Agreement pursuant to this clause (e) if
the Company is in material breach of this Agreement.

 

5.2                               Termination after the First Initial Closing.

 

(a)             by
mutual written consent of Buyers and the Company;

 

(b)             by
either Buyers or the Company if the issuance and sale of the Second Delivery
Initial Shares, the Pre-Emptive Right Shares, the Subsequent Offering Shares or
Subsequent Over-Allotment Shares, as applicable, has not occurred on or before March 31,
2010 (the “Subsequent Closing  Outside Date”); provided, however, that
the right to terminate this Agreement under this Section 5.2(b) shall
not be available to any party whose failure to fulfill any obligation under
this Agreement has been the cause of, or resulted in, the failure of the
Closing to occur on or before the Subsequent Closing Outside Date;

 

(c)             by
either Buyers or the Company if a court of competent jurisdiction or
governmental, regulatory or administrative agency or commission shall have
issued an order, decree or ruling or taken any other action (which order,
decree or ruling each of the parties hereto shall use all reasonable efforts to
lift), in each case permanently restraining, enjoining or otherwise prohibiting
the issuance and sale of the Pre-Emptive Right Shares, the Subsequent Offering
Shares or the Subsequent Over-Allotment Shares, as applicable, and such order,
decree, ruling or other action shall have become final and nonappealable;

 

(d)             by
Buyers if prior to the applicable Subsequent Closing there shall be a breach of
any representation, warranty, covenant or agreement of the Company in this 

 

22

 

Agreement
such that the conditions set forth in Section 3.1(b)(iii) or (iv) are
not capable of being satisfied on or before the Subsequent Closing Outside Date
provided that Buyer may not terminate this Agreement pursuant to this
clause (d) if Buyers are in material breach of this Agreement;

 

(e)             by the
Company if, prior to the applicable Subsequent Closing there shall be a breach
of any representation, warranty, covenant or agreement of Buyers in this
Agreement such that the conditions set forth in Section 3.2(b)(iii) or
(iv) are not capable of being satisfied on or before the Subsequent Closing
Outside Date; provided that the Company may not terminate this Agreement
pursuant to this clause (e) if the Company is in material breach of this
Agreement.

 

5.3          Effect of Termination.  In the event the First Initial Closing does
not occur as a result of either party exercising its right to terminate
pursuant to Section 5.1, or if the Second Delivery Initial Shares,
Pre-Emptive Share Closing, Subsequent Offering Closing or Subsequent
Over-Allotment Closing does not occur as a result of either party exercising
its right to terminate pursuant to Section 5.2, then neither party shall
have any further rights or obligations under this Agreement, except that (i) nothing
herein shall relieve either party from liability for any willful breach of this
Agreement, (ii) with respect to a termination following the First Initial
Closing, such termination shall only be effective with respect to those
provisions governing the Second Initial Closing, Pre-Emptive Share Closing, the
Subsequent Offering Closing or the Subsequent Over-Allotment Closing, as
applicable, and shall not, by way of illustration, affect the continued
enforceability of the provisions contained in Article IV hereof,  and (iii) the Confidentiality Agreement,
together with provisions of Section 6.2 (Notices),
6.5 (Governing Law), 6.6 (Submission to Jurisdiction), 6.7 (Entire Agreement), 6.8 (Counterparts), 6.10 (Expenses), and 6.11 (Announcements) hereof shall survive the
termination of this Agreement.

 

6.                                      MISCELLANEOUS.

 

6.1          Successors and
Assigns.  Neither
this Agreement nor any of the rights, interests or obligations hereunder shall
be assigned by any of the parties hereto without the prior written consent of
the other parties.  Subject to the
preceding sentence, this Agreement shall be binding upon, inure to the benefit
of, and be enforceable by, the parties and their respective permitted
successors and assigns.  Nothing in this
Agreement is intended to confer upon any party other than the parties hereto or
their respective permitted successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.

 

6.2          Notices.  Unless otherwise
provided herein, any notice, request, waiver, instruction, consent or document
or other communication required or permitted to be given by this Agreement
shall be effective only if it is in writing and (i) delivered by hand or
sent by certified mail, return receipt requested, (ii) if sent by a
nationally-recognized overnight delivery service with delivery confirmed, or (iii) if
sent by facsimile (or other similar electronic means), with receipt confirmed
as follows:

 

23

 

	
  Company:

  	
  Golden Minerals
  Company

  350 Indiana Street, Suite 800

  Golden, Colorado 80401

  Attn: President

  Fax: (303) 839-5907

  
	
   

  	
   

  
	
  with a copy to:

  	
  Davis Graham & Stubbs LLP

  1550 17th Street, Suite 500

  Denver, Colorado 80202

  Attn: Deborah J. Friedman

  Fax: (303) 892-7400

  
	
   

  	
   

  
	
  Buyers:

  	
  Sentient Global
  Resources Fund III, LP

  SGRF III Parallel I, LP

  Landmark Square, 1st Floor, 64 Earth Close, West Bay Beach South

  PO Box 10795

  George Town, Grand Cayman KY1-1007

  CAYMAN ISLANDS

  Attention: Sue Bjuro — Office Manager

  Fax (345) 946-0921

  
	
   

  	
   

  
	
  with a copy to:

  	
  Quinn &
  Brooks, LLP

  c/o Gregory A. Smith

  9800 Mt. Pyramid Ct., Suite 400

  Englewood, Colorado 80112

  Fax: (720) 294-8374

  

 

The parties shall
promptly notify each other of any change in their respective addresses or
facsimile numbers or of the individual or entity or office to receive notices,
requests or other communications under this Section 6.2.  All notices shall be deemed to have been
given (i) if personally delivered or sent by certified mail, as of the
date when so delivered, (ii) if sent by nationally-recognized overnight
delivery service, two days after mailing, or (iii) if sent by facsimile
(or other similar electronic means) as of the date sent, if during normal
business hours of the recipient, and otherwise on the next business day.

 

6.3          Amendments and
Waivers.  This
Agreement may not be amended or supplemented, unless set forth in a writing
signed by each party hereto. Except as otherwise permitted in this Agreement,
the terms or conditions of this Agreement may not be waived unless set forth in
a writing signed by the party entitled to the benefits thereof.  No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of such provision at any
time in the future or a waiver of any other provision hereof.  The rights and remedies of the parties hereto
are cumulative and not alternative. Except as otherwise provided in this
Agreement, neither the failure nor any delay by any party hereto in exercising
any right, power or privilege under this Agreement will operate as a waiver of
such right, power or privilege, and no single or partial exercise of any such
right, power or privilege will preclude any other or 

 

24

 

further
exercise of such right, power or privilege or the exercise of any other right,
power or privilege.

 

6.4          Severability. 
Any term or
provision of this Agreement that is held by a court of competent jurisdiction
or other authority to be invalid, void or unenforceable in any situation in any
jurisdiction shall not affect the validity or enforceability of the remaining
terms and provisions hereof or the validity or enforceability of the offending
term or provision in any other situation or in any other jurisdiction.  If the final judgment of a court of competent
jurisdiction or other authority declares that any term or provision hereof is
invalid, void or unenforceable, the parties agree that the court making such
determination shall have the power to reduce the scope, duration, area or
applicability of the term or provision, to delete specific words or phrases, or
to replace any invalid, void or unenforceable term or provision with a term or
provision that is valid and enforceable and that comes closest to expressing
the intention of the invalid or unenforceable term or provision.

 

6.5          Governing Law.  This Agreement shall
be governed by and construed in accordance with the internal laws (as opposed
to the conflicts of law provisions) of the State of Colorado.

 

6.6          Submission to
Jurisdiction.  The parties hereby submit to the
non-exclusive jurisdiction of any court of the State of Colorado or the United
States District Court for the District of Colorado for the purpose of any suit,
action, or other proceeding arising out of this Agreement, and waive any and
all objections to jurisdiction that they may have under the laws of the State
of Colorado or the United States and any claim or objection that any such court
is an inconvenient forum.

 

6.7          Entire
Agreement.  This Agreement, together with the exhibits hereto and the
Confidentiality Agreement constitutes the full and entire understanding and
agreement between the parties with regard to the subjects hereof and thereof.

 

6.8          Counterparts.  This
Agreement may be executed in two or more counterparts (including by facsimile
or similar means of electronic communication), each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

6.9          Specific Performance.  Buyers and the
Company each agree that irreparable damage would occur in the event that any of
the provisions of this Agreement and the Confidentiality Agreement were not
performed by them in accordance with the terms hereof and that each party shall
be entitled to specific performance of the terms hereof, in addition to any
other remedy at law or equity.  Each
party hereto expressly waives any requirement that any other party hereto
obtain any bond or provide any indemnity in connection with any action seeking
injunctive relief or specific enforcement of the provisions of the Agreement
and the Confidentiality Agreement.

 

6.10        Expenses.  All reasonable,
documented out-of-pocket costs and expenses incurred by the parties in
connection with the negotiation, preparation, execution and delivery of this
Agreement, the Registration Rights Agreement and the Lock-Up Agreement,
including the 

 

25

 

fees,
expenses and disbursements of legal counsel and accountants, shall be paid by
the Company, provided  however, that the Company shall not be
required to reimburse Buyers’ costs and expenses in the event this Agreement is
terminated by the Company pursuant to Section 5.1(e) or 5.2(e).  Costs and expenses incurred by the parties in
connection with the performance of its obligations under this Agreement, the
Registration Rights Agreement and the Lock-Up Agreement shall be paid by the
party incurring such expenses.

 

6.11        Announcements.  Publicity and other
general releases of information to the public through the media concerning the
transaction contemplated by this Agreement shall be jointly planned and
coordinated between the Company and Buyers.  Neither party shall act
unilaterally in this regard without the prior approval of the other party
provided, however, that such approval shall not be unreasonably withheld. 
Nothing in this Section 6.11 shall prevent either party from furnishing
information to any Governmental Entity or from furnishing information to comply
with applicable laws or rules of any applicable stock exchange.

 

* 
*  *  *  *

 

26

 

IN WITNESS
WHEREOF, the parties have executed this COMMON
STOCK
PURCHASE AGREEMENT  as of the date first written
above.

 

 

	
  GOLDEN
  MINERALS COMPANY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Robert P.
  Vogels

  	
   

  
	
  Name:

  	
  Robert P. Vogels

  	
   

  
	
  Title:

  	
  Sr.
  VP & CFO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SENTIENT GLOBAL RESOURCES FUND III, LP

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Sentient GP III, L.P., General Partner

  	
   

  
	
   

  	
  By:

  	
  Sentient Executive GP III, Limited, General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Gregory Link

  	
   

  
	
  Name:

  	
  Gregory Link

  	
   

  
	
  Title:

  	
  Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SGRF III PARALLEL I, L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Sentient GP III, L.P., General Partner

  	
   

  
	
   

  	
  By:

  	
  Sentient Executive GP III, Limited, General Partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Gregory Link

  	
   

  
	
  Name:

  	
  Gregory Link

  	
   

  
	
  Title:

  	
  Director

  	
   

  

 

 

Exhibit A

DEFINITIONS

 

Certain
capitalized terms used herein shall have the meanings assigned to them in this Exhibit A:

 

“Acceptance Notice” has the meaning set
forth in Section 1.2 (a)(iv).

 

“Affiliate” and “Affiliated”
have the meanings ascribed to them in Rule 405 under the Securities Act.

 

“Agreement” has the meaning set forth in
the Preamble.

 

“Buyers” has the meaning set forth in the
Preamble.

 

“Closing Date” means the date on which
the Closing occurs.

 

“Code” has the meaning set forth in Section 2.1(o).

 

“Common Stock” has the meaning set forth
in the Recitals.

 

“Company” has the meaning set forth in
the Preamble.

 

“Confidentiality Agreement” means the
Confidentiality Agreement between the partners dated April 22, 2009.

 

“Encumbrances” means any and all liens,
charges, security interests, options, claims, mortgages, pledges, proxies,
voting trusts or agreements, obligations, understandings or arrangements,
defects or imperfections of title or other restrictions on title or transfer of
any nature whatsoever.

 

“Environmental Laws” has the meaning set
forth in Section 2.1(n).

 

“ERISA” has the meaning set forth in Section 2.1(o).

 

“Exchange Act” means the U.S. Securities Exchange Act of 1934, as
amended.

 

“Exempt Transaction” means any of the
following transactions:

 

(a)           the award, issuance or exercise of
any bona fide equity incentive securities or equity compensation securities in
favor of directors, officers, employees, consultants or service providers of
the Company or any of its Affiliates pursuant to the Company’s 2009 Equity
Incentive Plan or any other bona fide equity incentive plan adopted by the
Company from time to time; and

 

(b)           any issuance of Common Stock (or
securities of the Company which are convertible into, exchangeable for or
exercisable to acquire Common Stock), which is made to all holders of Common
Stock on a pro rata basis.

 

“Financial Statements” has the meaning
set forth in Section 2.1(i).

 

A-1

 

“First Delivery Initial Shares” has the
meaning set forth in Section 1.1(a)(i).

 

“First Initial Closing” has the meaning
set forth in Section 1.1(c)(i).

 

“First Initial Closing Date” has the
meaning set forth in Section 1.1(c)(i).

 

“Governmental Entity” means any domestic
or foreign court, arbitral tribunal, administrative agency or commission or
other governmental or other regulatory authority or agency.

 

“Initial Closing Outside Date” has the
meaning set forth in Section 5.1(b).

 

“Initial IPO Shares” has the meaning set
forth in Section 1.2(a)(ii).

 

“Initial Public Offering” has the meaning
set forth in the Recitals.

 

“Initial Shares” has the meaning set
forth in the Recitals.

 

“Initial Shares Purchase Price” has the
meaning set forth in Section 1.1(b).

 

“IPO Closing Date” shall mean the date on
which the Initial IPO Shares are delivered to the Underwriters in connection
with the Initial Public Offering.

 

“IPO Shares” has the meaning set forth in
Section 1.2(a)(iii).

 

“Lock-Up Agreement” means the Lock-Up
Agreement to be executed by Buyer and delivered to the Underwriters at the
Initial Closing in the form attached hereto as Exhibit D.

 

“Material Adverse Effect” means a
material adverse effect on the business, assets, liabilities, financial
condition or results of operations of the Company and its Subsidiaries taken as
a whole, or a material adverse effect on the ability of the Company to perform
its obligations under this Agreement; provided  however, that none
of the following individually or in the aggregate, will be deemed to have a
Material Adverse Effect: (x) fluctuations in the market price of the
Common Stock; or (y) fluctuations in the prices of precious or base
metals, or (z) any change or effect arising out of general economic
conditions or conditions generally affecting the mining industries.

 

“New Shares” has the meaning set forth in
Section 1.2(a)(i).

 

“Nominee” has the meaning set forth in Section 4.6(a).

 

“Outstanding Common Stock” means the
Company’s issued and outstanding shares of Common Stock, not including unvested
restricted shares issued pursuant to the Company’s 2009 Equity Incentive Plan
or other bona fide equity incentive plan adopted by the Company from time to
time.

 

“Over-Allotment Option” has the meaning
set forth in Section 1.2(a)(iii).

 

“Over-Allotment IPO Shares” has the
meaning set forth in Section 1.2(a)(iii).

 

A-2

 

“Person” means a natural person,
partnership, corporation, limited liability company, business trust, joint
stock company, trust, unincorporated association, joint venture, Governmental
Entity or other entity or organization.

 

“Plan” has the meaning set forth in Section 2.1(o).

 

“Pre-Emptive Right Closing” has the
meaning set forth in Section 1.2(c)(i).

 

“Pre-Emptive Right Closing Date” has the
meaning set forth in Section 1.2(c)(i).

 

“Pre-Emptive Right Issuance” has the
meaning set forth in Section 1.2(a)(i).

 

“Pre-Emptive Right Shares” has the
meaning set forth in Section 1.2(a)(i).

 

“Pre-Emptive Right Shares Purchase Price”
has the meaning set forth in Section 1.2(b)(i).

 

“Pre-Emptive Rights Holder” has the
meaning set forth in Section 1.2(v).

 

“Pre-IPO Dilutive Issuance” has the meaning set forth in Section 1.2(a)(i).

 

“Private Placement Memorandum” means the
private placement memorandum dated December 29, 2009 delivered to the
Buyers in connection with the transaction contemplated hereby.

 

“Public Reports” has the meaning set
forth in Section 2.1(h).

 

“Registration Rights Agreement” means the
Registration Rights Agreement between the Company and Buyers in the form
attached hereto as Exhibit C.

 

“Required Amendments” has the meaning set
forth in Section 4.6(a).

 

“SEC” has the meaning set forth in the Recitals.

 

“Second Initial Closing” has the meaning
set forth in Section 1.1(d)(i).

 

“Second Initial Closing Date” has the
meaning set forth in Section 1.1(d)(i).

 

“Second Delivery Initial Shares” has the
meaning set forth in Section 1.1(a)(ii).

 

“Securities Act” means the U.S. Securities Act of 1933, as amended.

 

“Shares” means the Initial Shares, the
Pre-Emptive Right Shares, the Subsequent Offering Shares and the Subsequent
Over-Allotment Shares.

 

“Subsequent Closing” means the
Pre-Emptive Right Closing, the Subsequent Offering Closing or the Subsequent
Over-Allotment Closing, as applicable.

 

“Subsequent Closing Outside Date” has the
meaning set forth in Section 5.2(b).

 

A-3

 

“Subsequent Offering Closing” has the
meaning set forth in Section 1.2(c)(i).

 

“Subsequent Offering Shares” has the
meaning set forth in Section 1.2(a)(i).

 

“Subsequent Over-Allotment Closing” has
the meaning set forth in Section 1.2(c)(i).

 

“Subsequent Over-Allotment Closing Date”
has the meaning set forth in Section 1.2(c)(i).

 

“Subsequent Over-Allotment Shares” has
the meaning set forth in Section 1.2(a)(iii).

 

“Subsequent Offering Closing Date” has
the meaning set forth in Section 1.2(c)(i).

 

“Subsequent Shares” has the meaning set
forth in Section 1.2(a)(iv).

 

“Subsequent Shares Purchase Price” has
the meaning set forth in Section 1.2(b)(ii).

 

“Subsidiary” means any corporation or
other entity with respect to which a specified Person (or a Subsidiary thereof)
owns a majority of the common stock or other appropriate equity interest, or
has the power to vote or direct the voting of sufficient securities to elect a
majority of the directors, managers or members (as appropriate) of its board of
directors or other governing body.

 

“Technical Report” has the meaning set
forth in Section 2.1(q).

 

“Underwriters” means Canaccord Financial
Ltd., in Canada, and Dahlman Rose & Company, in the United States,
and/or such other Person who shall be engaged to serve as an underwriter in
connection with the Initial Public Offering.

 

A-4

 

Exhibit B

ALLOCATION
OF SHARES

 

	
  Purchaser

  	
   

  	
  Pro Rata

  Share

  	
   

  	
  First

  Delivery

  Initial

  Shares

  	
   

  	
  First Delivery

  Purchase Price

  	
   

  	
  Second

  Delivery

  Initial

  Shares

  	
   

  	
  Second

  Delivery

  Purchase Price

  	
   

  	
  Total Initial

  Shares

  	
   

  	
  Total Initial

  Shares Purchase

  Price

  	
   

  
	
  Sentient Global Resources Fund III, L.P.

  Landmark Square, 1st Floor, 64 Earth Close,

  West Bay Beach South

  PO Box 10795

  George Town, Grand Cayman KY1-1007

  CAYMAN ISLANDS

  Tel. No.: (503) 223-2721

  Fax No.: (503) 223-1384

  	
   

  	
  90.9375

  	
  %

  	
  299,760

  	
   

  	
  C$

  	
  2,116,305.60

  	
   

  	
  378,014

  	
   

  	
  C$

  	
  2,668,778.84

  	
   

  	
  677,774

  	
   

  	
  C$

  	
  4,785,084.44

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SGRF III Parallel I, L.P.

  Landmark Square, 1st Floor, 64 Earth Close,

  West Bay Beach South

  PO Box 10795

  George Town, Grand Cayman KY1-1007

  CAYMAN ISLANDS

  Tel. No.: (503) 223-2721

  Fax No.: (503) 223-1384

  	
   

  	
  9.0625

  	
  %

  	
  29,873

  	
   

  	
  C$

  	
  210,903.38

  	
   

  	
  37,671

  	
   

  	
  C$

  	
  265,957.26

  	
   

  	
  67,544

  	
   

  	
  C$

  	
  476,860.64

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
  100.00

  	
  %

  	
  329,633

  	
   

  	
  C$

  	
  2,327,208.98

  	
   

  	
  415,685

  	
   

  	
  C$

  	
  2,934,736.10

  	
   

  	
  745,318

  	
   

  	
  C$

  	
  5,261,945.08

  	
   

  

 

B-1

 

EXHIBIT C

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is made and entered
into as of December       , 2009 by and
among GOLDEN MINERALS COMPANY, a Delaware corporation (the “Company”), and SENTIENT GLOBAL RESOURCES FUND III, L.P., a Cayman
Islands exempted limited partnership, and SGRF III PARALLEL I, L.P., a
Cayman Islands exempted limited partnership (the “Buyers”).

 

RECITALS

 

A.            In connection with the Common Stock
Purchase Agreement by and between the Company and Buyers of even date herewith
(the “Purchase Agreement”),
the Company has agreed, upon the terms and subject to the conditions of the
Purchase Agreement, to issue and sell to Buyers and Buyers have agreed to
purchase, shares of the Company’s authorized but unissued Common Stock (the “Shares”).

 

B.            To induce Buyers to
execute and deliver the Purchase Agreement, the Company has agreed to provide
certain registration rights under the U.S. Securities Act of 1933, as amended,
and the rules and regulations thereunder, and applicable state securities
laws.

 

NOW,
THEREFORE, in consideration of the
recitals and the mutual promises, representations, warranties, and covenants
set forth in this Agreement and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

 

AGREEMENT

 

Definitions.

 

In addition to the terms that are defined elsewhere in
this Agreement, the following terms shall have the following meanings:

 

“Affiliate”
with respect to any specified person, has the meaning specified in Rule 144.

 

“Common Stock” means the Company’s common
stock, par value $0.01 per share.

 

“Deferral
Notice” has the meaning specified in Section 3(d) hereof.

 

“Deferral
Period” has the meaning specified in Section 3(d) hereof.

 

“Effectiveness
Deadline Date” has the meaning specified in Section 2(a) hereof.

 

“Effectiveness
Period” means the period commencing on the date the Registration
Statement becomes effective and ending on the date that all Registrable Securities
have ceased to be Registrable Securities.

 

 

“Exchange Act”
means the United States Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC promulgated thereunder.

 

“Filing
Deadline Date” has the meaning specified in Section 2(a) hereof.

 

“Holder”
means Buyers, any
transferee or assignee thereof to whom Buyers assign their rights under this
Agreement and who agrees to become bound by the provisions of this Agreement in
accordance with Section 8(a) and any transferee or assignee thereof
to whom a transferee or assignee assigns its rights under this Agreement and
who agrees to become bound by the provisions of this Agreement in accordance
with Section 8(a).

 

“Initial
Resale Registration Statement” has the meaning specified in Section 2(a) hereof.

 

“Material
Event” has the meaning specified in Section 3(d) hereof.

 

“Notice and
Questionnaire” means a written notice delivered to the Company
containing substantially the information called for by the Selling
Securityholder Notice and Questionnaire attached as Annex A to this Agreement.

 

“Notice
Holder” means on any date, any Holder that has delivered a Notice
and Questionnaire to the Company on or prior to such date.

 

“Prospectus”
means the prospectus included in any Registration Statement (including, without
limitation, a prospectus that discloses information previously omitted from a
prospectus filed as part of an effective registration statement in reliance
upon Rule 415 promulgated under the Securities Act), as amended or supplemented
by any amendment or prospectus supplement, including post-effective amendments,
and all materials incorporated by reference or explicitly deemed to be
incorporated by reference in such Prospectus.

 

“Purchase
Agreement” has the meaning set forth in the Recitals.

 

“Registrable
Securities” means the Shares issued to Buyers under the Purchase
Agreement (including the Initial Shares, the Pre-IPO Shares, the Subsequent
Offering Shares and the Subsequent Over-Allotment Shares, as such terms are
defined in the Purchase Agreement) and any security issued with respect thereto
upon any stock dividend, split, merger or similar event until, in the case of
any such security, the earlier of (i) the sale of such security pursuant
to Rule 144 under the Securities Act or pursuant to an effective
registration statement registering such security for resale, or (ii) the
first date on which the Registrable Securities may be sold pursuant to Rule 144
without being subject to the volume restrictions set forth in Rule 144(e).

 

“Registration
Statement” means any registration statement of the Company that
covers any of the Registrable Securities pursuant to the provisions of this
Agreement, including the Prospectus, amendments and supplements to such
registration statement, including post-effective amendments, all exhibits, and
all materials incorporated by reference or explicitly deemed to be incorporated
by reference in such registration statement.

 

3

 

“Resale
Registration Statement” means the Initial Resale Registration
Statement and any Subsequent Resale Registration Statements.

 

“Rule 144”
means Rule 144 under the Securities Act, as such Rule may be amended
from time to time, or any similar or successor rule or regulation hereafter
adopted by the SEC having substantially the same effect as such Rule.

 

“SEC”
means the United States Securities and Exchange Commission and any successor
agency.

 

“Securities
Act” means the United States Securities Act of 1933, as amended, and
the rules and regulations promulgated by the SEC thereunder.

 

“Shares”
has the meaning set forth in the Recitals.

 

 “Subsequent Resale Registration Statement”
has the meaning specified in Section 2(b) hereof.

 

Resale Registration.

 

The Company shall prepare and file or cause to be prepared and filed
with the SEC no later than May 31, 2010 (the “Filing
Deadline Date”) a Registration Statement (the “Initial
Resale Registration Statement”) registering the resale from time to
time by Buyers of all of the Registrable Securities. The Initial Resale
Registration Statement shall be on Form S-3 or another appropriate form
permitting registration of such Registrable Securities for resale by Buyers in
accordance with the methods of distribution set forth in the Initial Resale
Registration Statement. The Company shall use its commercially reasonable
efforts to promptly respond to comments from the SEC regarding the Initial
Resale Registration Statement, to cause the Initial Resale Registration
Statement to be declared effective under the Securities Act no later than September 30,
2010 (the “Effectiveness Deadline Date”), and to
keep the Initial Resale Registration Statement (or any Subsequent Resale
Registration Statement) continuously effective under the Securities Act until
the expiration of the Effectiveness Period.

 

If the Initial Resale Registration Statement or any Subsequent Resale
Registration Statement ceases to be effective for any reason at any time during
the Effectiveness Period, the Company shall use its commercially reasonable
efforts to obtain the prompt withdrawal of any order suspending the
effectiveness thereof, and in any event shall within thirty (30) days of
such cessation of effectiveness amend the Resale Registration Statement in a
manner reasonably expected by the Company to obtain the withdrawal of the order
suspending the effectiveness thereof, or file an additional Resale Registration
Statement covering all of the securities that as of the date of such filing are
Registrable Securities (a “Subsequent Resale
Registration Statement”). If a Subsequent Resale Registration
Statement is filed, the Company shall use commercially reasonable efforts to
cause the Subsequent Resale Registration Statement to become effective as
promptly as is reasonably practicable after such filing or, if filed during a
Deferral 

 

4

 

Period, after the
expiration of such Deferral Period, and to keep such Registration Statement (or
Subsequent Resale Registration Statement) continuously effective until the end
of the Effectiveness Period.

 

The Company shall supplement and amend the Initial or any Subsequent
Resale Registration Statement if required by the rules, regulations or
instructions applicable to the registration form used by the Company for such
Resale Registration Statement, if required by the Securities Act.

 

Each Holder of Registrable Securities agrees that if such Holder wishes
to sell Registrable Securities pursuant to a Resale Registration Statement and
related Prospectus, it will do so only in accordance with this Section 2(d),
Section 3(d) and Section 4. Each Holder of Registrable
Securities wishing to sell Registrable Securities pursuant to any Resale
Registration Statement and related Prospectus agrees to deliver a Notice and
Questionnaire to the Company promptly upon becoming a Holder and notify the
Company of any change in such information at least five (5) business
days prior to the filing of the Initial Resale Registration Statement or
Subsequent Resale Registration Statement, as applicable. From and after the
date the Initial Resale Registration Statement is declared effective, the
Company shall, as promptly as is reasonably practicable after the date a fully
completed and legible Notice and Questionnaire is received by the Company, (i) if
required by applicable law, file with the SEC a post-effective amendment to the
Resale Registration Statement or prepare and, if required by applicable law,
file a supplement to the related Prospectus or a supplement or amendment to any
document incorporated therein by reference or file any other document required
by the SEC so that the Holder delivering such Notice and Questionnaire is named
as a selling security holder in the Resale Registration Statement and the
related Prospectus in such a manner as to permit such Holder to deliver such
Prospectus to purchasers of the Registrable Securities in accordance with
applicable law (other than laws not generally applicable to all Holders of
Registrable Securities wishing to sell Registrable Securities pursuant to the
Resale Registration Statement and related Prospectus) and using the manner of
sale specified in the Notice and Questionnaire, and, if the Company shall file
a post-effective amendment to the Resale Registration Statement, use commercially
reasonable efforts to cause such post-effective amendment to be declared
effective under the Securities Act as promptly as is reasonably practicable; (ii) provide
such Holder copies of any documents filed pursuant to Section 2(d)(i); and
(iii) notify such Holder as promptly as is reasonably practicable after
the effectiveness under the Securities Act of any post-effective amendment
filed pursuant to Section 2(d)(i); provided, that if such Notice and
Questionnaire is delivered during a Deferral Period, the Company shall so
inform the Holder delivering such Notice and Questionnaire and shall take the
actions set forth in clauses (i), (ii) and (iii) above upon
expiration of the Deferral Period in accordance with Section 3(d),
provided, further, that if under applicable law the Company has more than one
option as to the type or manner of making any such filing, the Company will
make the required filing or filings in the manner or of a type that is
reasonably expected to result in the earliest availability of the Prospectus
for effecting resales of 

 

5

 

Registrable
Securities. Notwithstanding anything contained herein to the contrary, the
Company shall be under no obligation to name any Holder that is not a Notice
Holder as a selling security holder in any Registration Statement or related
Prospectus; provided, however, that any Holder that becomes a Notice Holder
pursuant to the provisions of this Section 2(d) of this Agreement
(whether or not such Holder was a Notice Holder at the time the Registration
Statement was initially declared effective) shall be named as a selling
security holder in the Registration Statement or related Prospectus subject to
and in accordance with the requirements of this Section 2(d).

 

If a Registration Statement covering all the
Registrable Securities required to be covered thereby and required to be filed
by the Company pursuant to this Agreement is (A) not filed with the SEC on
or before the Filing Deadline Date (a “Filing Failure”) or (B) not declared effective
by the SEC on or before the Effectiveness Deadline Date (an “Effectiveness Failure”),
then, as liquidated damages to Buyers by reason of any such delay in or
reduction of its ability to sell the Shares (which remedy shall be the
exclusive remedy for any Filing Failure or Effectiveness Failure (each, a “Failure”)), the Company shall pay to Buyers an amount equal
to 1.0% of the aggregate purchase price paid by Buyers for the Shares for every
thirty (30) days following the Filing Deadline Date that the Registration
Statement is not filed (in the case of a Filing Failure) and for every thirty
(30) days following the Effectiveness Deadline Date that the Registration
Statement is not effective (in the case of an Effectiveness Failure), as the
case may be, on a per diem basis (the “Liquidated Damages”); provided, however, that
the maximum Liquidated Damages payable to Buyers under this Section 2(e) shall
not exceed 3.0% of the aggregate purchase price of the Shares.  Liquidated Damages, if any, shall be paid by
the Company within ten (10) days following the end of each thirty (30) day
period (or shorter period, if applicable) for which Liquidated Damages are
payable.  The Company shall pay interest
on Liquidated Damages not paid when due at a rate of interest equal to fifteen
percent (15.0%) per annum.  In the event
a Registration Statement is filed but is withdrawn by the Company prior to
being declared effective by the SEC, then such Registration Statement will be
deemed to have not been filed for the purpose of this Section 2(e).

 

Registration Procedures.

 

In connection with the registration obligations of the
Company under Section 2 hereof, the Company shall:

 

Prepare and file with the SEC such amendments and post-effective amendments
to each Registration Statement as may be necessary to keep such Registration
Statement continuously effective for the applicable period specified in Section 2(a);
cause the related Prospectus to be supplemented by any required Prospectus
supplement, and as so supplemented to be filed pursuant to Rule 424 (or
any similar provisions then in force) under the Securities Act; and use
commercially reasonable efforts to comply with the provisions of the Securities
Act applicable to it with respect to the disposition of all securities covered
by such Registration 

 

6

 

Statement during
the Effectiveness Period in accordance with the intended methods of disposition
by the sellers thereof set forth in such Registration Statement as so amended
or such Prospectus as so supplemented.

 

Submit to the SEC, within two (2) Business Days after the Company
learns that no review of a particular Registration Statement will be made by
the staff of the SEC or that the staff has no further comments on a particular
Registration Statement, as the case may be, a request for acceleration of
effectiveness of such Registration Statement to a time and date not later than
48 hours after the submission of such request.

 

Use commercially reasonable efforts to obtain the withdrawal of any
order suspending the effectiveness of a Registration Statement or the lifting
of any suspension of the qualification (or exemption from qualification) of any
of the Registrable Securities for sale in any jurisdiction in which they have
been qualified for sale, in either case at the earliest possible moment or, if
any such order or suspension is made effective during any Deferral Period, at
the earliest possible moment after the expiration of such Deferral Period.

 

Upon (A) the issuance by the SEC of a stop order suspending the
effectiveness of the Resale Registration Statement or the initiation of
proceedings with respect to the Resale Registration Statement under Section 8(d) or
8(e) of the Securities Act, (B) the occurrence of any event or the
existence of any fact (a “Material Event”)
as a result of which any Registration Statement shall contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, or
any Prospectus shall contain any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading (including, in any
such case, as a result of the non-availability of financial statements), or (C) the
occurrence or existence of any development, event, fact, situation or
circumstance relating to the Company that, in the discretion of the Company,
makes it appropriate to suspend the availability of the Resale Registration
Statement and the related Prospectus, (i) in the case of clause (B) above,
subject to the next sentence, as promptly as is reasonably practicable prepare
and file a post-effective amendment to such Registration Statement or a
supplement to the related Prospectus or any document incorporated therein by
reference or file any other required document that would be incorporated by
reference into such Registration Statement and Prospectus so that such
Registration Statement does not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading, and such Prospectus does not
contain any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, as thereafter
delivered to the purchasers of the Registrable Securities being sold
thereunder, and, in the case of a post-effective amendment to a Registration
Statement, subject to the next sentence, use commercially reasonable efforts to
cause it to be 

 

7

 

declared effective
as promptly as is reasonably practicable, and (ii) give notice (via
facsimile, telephone or electronic mail followed by a written notice by
internationally recognized overnight courier) to the Notice Holders that the
availability of the Resale Registration Statement is suspended (a “Deferral Notice”) and, upon receipt of any Deferral Notice,
each Notice Holder agrees not to sell any Registrable Securities pursuant to
the Registration Statement until such Notice Holder’s receipt of copies of the
supplemented or amended Prospectus provided for in clause (i) above, or
until it is advised in writing by the Company that the Prospectus may be used,
and has received copies of any additional or supplemental filings that are
incorporated or deemed incorporated by reference in such Prospectus. The
Company will use commercially reasonable efforts to ensure that the use of the
Prospectus may be resumed (x) in the case of clause (A) above, as
promptly as is reasonably practicable, (y) in the case of clause (B) above,
as soon as, in the sole reasonable judgment of the Company, public disclosure
of such Material Event would not be prejudicial to or contrary to the interests
of the Company or, if necessary to avoid unreasonable burden or expense, as
soon as reasonably practicable thereafter and (z) in the case of clause (C) above,
as soon as, in the reasonable discretion of the Company, such suspension is no
longer appropriate. The period during which the availability of the
Registration Statement and any Prospectus is suspended (the “Deferral Period”) is not to exceed (i) 20
consecutive days at any one time; (ii) 30 days in the aggregate in any
three-month period; or (iii) 60 days in the aggregate during any 12-month
period, or as otherwise required by applicable regulatory authority; provided
that, the number of days the Company is required to keep the Registration
Statement effective shall be extended by the number of days equal to the
aggregate Deferral Period(s). The first day of any Deferral Period must be at
least two (2) trading days after the last day of any prior Deferral
Period.

 

During the Effectiveness Period (except during such periods that a
Deferral Notice is outstanding and has not been revoked), deliver to each
Notice Holder in connection with any sale of Registrable Securities pursuant to
a Registration Statement, without charge, as many copies of the Prospectus or
Prospectuses relating to such Registrable Securities and any amendment or
supplement thereto as such Notice Holder may reasonably request; and the
Company hereby consents (except during such periods that a Deferral Notice is
outstanding and has not been revoked) to the use of such Prospectus or each
amendment or supplement thereto by each Notice Holder in connection with any
offering and sale of the Registrable Securities covered by such Prospectus or
any amendment or supplement thereto in the manner set forth therein.

 

Subject to Section 3(d), prior to any public offering of the
Registrable Securities pursuant to the Resale Registration Statement, use
commercially reasonable efforts to register or qualify or cooperate with the
Notice Holders in connection with the registration or qualification (or
exemption from such registration or qualification) of such Registrable
Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Notice Holder reasonably requests
in writing (which request may be included in the Notice and 

 

8

 

Questionnaire), it
being agreed that no such registration or qualification will be made unless so
requested; prior to any public offering of the Registrable Securities pursuant
to the Resale Registration Statement, use commercially reasonable efforts to
keep each such registration or qualification (or exemption therefrom) effective
during the Effectiveness Period in connection with such Notice Holder’s offer
and sale of Registrable Securities pursuant to such registration or
qualification (or exemption therefrom) and do any and all other acts or things
necessary to enable the disposition in such jurisdictions of such Registrable
Securities in the manner set forth in the relevant Registration Statement and
the related Prospectus; provided, that the Company will not be required to (i) qualify
as a foreign corporation or as a dealer in securities in any jurisdiction where
it is not otherwise qualified or (ii) take any action that would subject
it to general service of process in suits or to taxation in any such jurisdiction
where it is not then so subject.

 

Holder’s Obligations.

 

Each Holder agrees, by acquisition of the Registrable
Securities, that no Holder of Registrable Securities shall be entitled to sell
any of such Registrable Securities pursuant to a Registration Statement or to
receive a Prospectus relating thereto, unless such Holder has furnished the
Company with a properly completed Notice and Questionnaire as required pursuant
to this Section 4 (including the information required to be included in
such Notice and Questionnaire) and the information set forth in the next
sentence. Each Holder agrees to deliver a Notice and Questionnaire to the
Company promptly upon becoming a Holder and notify the Company of any change in
such information at least five (5) business days prior to the filing of
the Initial Resale Registration Statement or Subsequent Resale Registration
Statement, as applicable.  Each Notice
Holder agrees promptly to furnish to the Company in writing all information
required to be disclosed in order to make the information previously furnished
to the Company by such Notice Holder not misleading, any other information
regarding such Notice Holder and the distribution of such Registrable
Securities as may be required to be disclosed in the Registration Statement
under applicable law or pursuant to SEC comments and any information otherwise
required by the Company to comply with applicable law or regulations. Each
Holder further agrees, following termination of the Effectiveness Period, to
notify the Company, within ten (10) Business Days of a request, of the
amount of Registrable Securities sold pursuant to the Registration Statement
and, in the absence of a response, the Company may assume that all of the
Holder’s Registrable Securities were so sold.

 

Registration Expenses.

 

The Company shall bear all fees and expenses incurred
in connection with the performance by the Company of its obligations under
Sections 2 and 3 of this Agreement whether or not any of the Registration
Statements are declared effective. Such fees and expenses shall include,
without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses (x) with respect to filings required
to be made with the Toronto Stock Exchange and the NYSE Amex (or such U.S.
national securities exchange on which the Common Stock is then listed) and (y) of
compliance with U.S. federal and state securities or “Blue Sky” laws to the
extent such filings or compliance are required pursuant to this Agreement
(including, without limitation, 

 

9

 

reasonable fees and disbursements of the counsel
specified in the next sentence in connection with Blue Sky qualifications of
the Registrable Securities under the laws of such jurisdictions as the Notice
Holders of a majority of the Registrable Securities being sold pursuant to a
Registration Statement may designate)), (ii) printing expenses, (iii) duplication
expenses relating to copies of any Registration Statement or Prospectus delivered
to any Holders hereunder, and (iv) fees and disbursements of counsel for
the Company in connection with the Resale Registration Statement, provided,
however, that the Company shall not be responsible for any brokers’ fees,
commissions or discounts in connection with the sale of Registrable Securities
or the fees and expenses of legal counsel for the Holders.

 

Information Requirements.

 

The Company covenants that, if at any time before the
end of the Effectiveness Period the Company is not subject to the reporting
requirements of the Exchange Act, it will cooperate with any Holder of
Registrable Securities and take such further reasonable action as any Holder of
Registrable Securities may reasonably request in writing (including, without
limitation, making such reasonable representations as any such Holder may
reasonably request), all to the extent required from time to time to enable
such Holder to sell Registrable Securities without registration under the
Securities Act within the limitations of Rule 144 under the Securities Act
and customarily taken in connection with sales pursuant to such exemptions.
Upon the written request of any Holder of Registrable Securities, the Company
shall deliver to such Holder a written statement as to whether it has complied
with the filing requirements of Rule 144.

 

Indemnification and
Contribution.

 

The Company agrees to indemnify and hold harmless each Holder of
Registrable Securities covered by the Resale Registration Statement, the
directors, officers, employees, Affiliates and agents of each such Holder and
each person who controls any such Holder within the meaning of either the
Securities Act or the Exchange Act against any and all losses, claims, damages
or liabilities, joint or several, to which they or any of them may become
subject under the Securities Act, the Exchange Act or other federal or state
statutory law or regulation, at common law or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise
out of or are based upon any untrue statement or alleged untrue statement of a
material fact contained in the Resale Registration Statement or in any
amendment thereof, in each case at the time such became effective under the
Securities Act, or in any preliminary Prospectus or the Prospectus, or in any
amendment thereof or supplement thereto, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein (in the case of any
preliminary Prospectus or the Prospectus, in the light of the circumstances
under which they were made) not misleading, and agrees to reimburse each such
indemnified party, as incurred, for any legal or other expenses reasonably
incurred by it in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the Company will
not be liable in any such case to the extent that any such loss, claim, damage
or liability arises out of or is based upon any such untrue statement 

 

10

 

or alleged untrue
statement or omission or alleged omission made therein in reliance upon and in
conformity with written information furnished to the Company by or on behalf of
the party claiming indemnification specifically for inclusion therein. This
indemnity shall be in addition to any liability that the Company may otherwise
have.

 

Each Holder of securities covered by the Resale Registration Statement
severally and not jointly agrees to indemnify and hold harmless the Company,
each of its directors, each of its officers who signs the Resale Registration
Statement and each person who controls the Company within the meaning of either
the Securities Act or the Exchange Act, to the same extent as the foregoing
indemnity from the Company to each such Holder, but only with reference to
information relating to such Holder furnished to the Company by or on behalf of
such Holder specifically for inclusion in the documents referred to in the
foregoing indemnity. This indemnity agreement shall be acknowledged by each
Notice Holder that is not the Buyers in such Notice Holder’s Notice and
Questionnaire and shall be in addition to any liability that any such Notice
Holder may otherwise have.

 

Promptly after receipt by an indemnified party under this Section 7
of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under
this Section 7, notify the indemnifying party in writing of the
commencement thereof; but the failure so to notify the indemnifying party (i) will
not relieve it from liability under paragraph (a) or (b) above unless
such failure results in the forfeiture by the indemnifying party of substantial
rights and defenses or otherwise materially prejudices the indemnifying party;
and (ii) will not, in any event, relieve the indemnifying party from any
obligations to any indemnified party other than the indemnification obligation
provided in paragraph (a) or (b) above. The indemnifying party shall
be entitled to appoint counsel (including local counsel) of the indemnifying
party’s choice at the indemnifying party’s expense to represent the indemnified
party in any action for which indemnification is sought (in which case the
indemnifying party shall not thereafter be responsible for the fees and
expenses of any separate counsel, other than local counsel if not appointed by
the indemnifying party, retained by the indemnified party or parties except as
set forth below); provided, however, that such counsel shall be reasonably
satisfactory to the indemnified party. Notwithstanding the indemnifying party’s
election to appoint counsel (including one local counsel) to represent the
indemnified party in an action, the indemnified party shall have the right to
employ separate counsel (including local counsel), and the indemnifying party
shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the
use of counsel chosen by the indemnifying party to represent the indemnified
party would present such counsel with a conflict of interest; (ii) the
actual or potential defendants in, or targets of, any such action include both
the indemnified party and the indemnifying party and the indemnified party
shall have reasonably concluded that there may be legal defenses available to
it and/or other indemnified parties that are different from or additional to
those available to the indemnifying party; (iii) the indemnifying party
shall not have employed 

 

11

 

counsel reasonably
satisfactory to the indemnified party to represent the indemnified party within
a reasonable time after notice of the institution of such action; or (iv) the
indemnifying party shall authorize the indemnified party to employ separate
counsel at the expense of the indemnifying party. An indemnifying party will
not, without the prior written consent of the indemnified parties, settle or
compromise or consent to the entry of any judgment with respect to any pending
or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action)
unless such settlement, compromise or consent includes an unconditional release
of each indemnified party from all liability arising out of such claim, action,
suit or proceeding.

 

If the indemnification to which an indemnified party is entitled under this
Section 7 is for any reason unavailable to or insufficient although
applicable in accordance with its terms to hold harmless an indemnified party
in respect of any losses, liabilities, claims, damages or expenses referred to
therein, then each indemnifying party shall contribute to the aggregate amount
of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect
the relative fault of the indemnifying party or parties on the one hand and of
the indemnified party on the other hand in connection with the statements or
omissions which resulted in such losses, liabilities, claims, damages or
expenses, as well as any other relevant equitable considerations.

 

The relative fault
of the Company on the one hand and the Holders of the Registrable Securities on
the other hand shall be determined by reference to, among other things, whether
any such untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by
the Company or by the Holder of the Registrable Securities and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

 

The parties hereto
agree that it would not be just and equitable if contribution pursuant to this Section 7(d) were
determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to above in this
Section 7(d). The aggregate amount of losses, liabilities, claims,
damages, and expenses incurred by an indemnified party and referred to above in
this Section 7(d) shall be deemed to include any out-of-pocket legal
or other expenses reasonably incurred by such indemnified party in
investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue or alleged
untrue statement or omission or alleged omission.

 

Notwithstanding the
provisions of this Section 7, no Holder of any Registrable Securities
shall be required to indemnify or contribute any amount in excess of

 

12

 

the amount by which
the proceeds received from the sale of the Registrable Securities by such
Holder of Registrable Securities exceeds the amount of any damages that such
Holder of Registrable Securities has otherwise been required to pay by reason
of such untrue or alleged untrue statement or omission or alleged omission.

 

No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.

 

For purposes of
this Section 7(d), each person, if any, who controls Buyers or any Holder
of Registrable Securities within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act shall have the same
rights to contribution as Buyers or such Holder, and each person, if any, who
controls the Company within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act shall have the same rights to
contribution as the Company.

 

The provisions of this Section 7 shall remain in full force and
effect, regardless of any investigation made by or on behalf of any Holder or
the Company or any of the indemnified persons referred to in this Section 7,
and shall survive the sale by a Holder of Registrable Securities covered by the
Resale Registration Statement.

 

Miscellaneous

 

Successors and Assigns. 
Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by any of the parties
hereto without the prior written consent of the other parties.  Subject to the preceding sentence, this
Agreement shall be binding upon, inure to the benefit of, and be enforceable
by, the parties and their respective permitted successors and assigns.  If any permitted transferee of any Holder
shall acquire Registrable Securities, such Registrable Securities shall be
subject to all of the terms of this Agreement and by taking and holding such
Registrable Securities such person shall be conclusively deemed to have agreed
to be bound by and to perform all of the terms and provisions of this
Agreement.  Nothing in this Agreement is
intended to confer upon any party other than the parties hereto or their
respective permitted successors and assigns any rights, remedies, obligations,
or liabilities under or by reason of this Agreement, except as expressly
provided in this Agreement.

 

Notices. Unless otherwise provided herein, any notice, request,
waiver, instruction, consent or document or other communication required or
permitted to be given by this Agreement shall be effective only if it is in
writing and (i) delivered by hand or sent by certified mail, return
receipt requested, (ii) if sent by a nationally-recognized overnight
delivery service with delivery confirmed, or (iii) if sent by facsimile
(or other similar electronic means), with receipt confirmed as follows:

 

	
  Company:

  	
   

  	
  Golden Minerals Company

  

 

13

 

	
   

  	
   

  	
  350 Indiana Street, Suite 800  

  Golden, Colorado 80401  

  Attn: 
  President  

  Fax:  (303)
  839-5907

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Davis Graham &
  Stubbs LLP

  1550 17th Street, Suite 500  

  Denver, Colorado 80202  

  Attn:  Deborah J. Friedman  

  Fax:  (303) 892-7400

  
	
   

  	
   

  	
   

  
	
  Buyers:

  	
   

  	
  Sentient Global Resources Fund III, LP 

  SGRF III Parallel I, LP 

  Landmark Square, 1st Floor, 64
  Earth Close, West Bay Beach South 

  PO Box 10795 

  George Town, Grand Cayman KY1-1007 

  CAYMAN ISLANDS 

  Attention: Sue Bjuro — Office Manager

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Quinn & Brooks, LLP  

  c/o Gregory A. Smith  

  9800 Mt. Pyramid Ct., Suite 400  

  Englewood, Colorado 80112

  

 

The parties shall
promptly notify each other of any change in their respective addresses or
facsimile numbers or of the individual or entity or office to receive notices,
requests or other communications under this Section 8(b).  All notices shall be deemed to have been
given (i) if personally delivered or sent by certified mail, as of the
date when so delivered, (ii) if sent by nationally-recognized overnight
delivery service, two days after mailing, or (iii) if sent by facsimile
(or other similar electronic means) as of the date sent, if during normal
business hours of the recipient, and otherwise on the next business day.

 

Amendments and Waivers. The provisions of
this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, without the written consent of the Company
and the Holders of a majority of the then outstanding Registrable Securities.
Notwithstanding the foregoing, a waiver or consent to depart from the
provisions hereof with respect to a matter that relates exclusively to the
rights of Holders of Registrable Securities whose securities are being sold
pursuant to a Registration Statement and that does not directly or indirectly
affect the rights of other Holders of Registrable Securities may be given by
Holders of at least a majority of the Registrable Securities being sold by such
Holders pursuant to such Registration Statement; provided, that the provisions
of this sentence may not be amended, modified, or supplemented except in 

 

14

 

accordance with the
provisions of the immediately preceding sentence. Each Holder of Registrable
Securities outstanding at the time of any such amendment, modification,
supplement, waiver or consent or thereafter shall be bound by any such
amendment, modification, supplement, waiver or consent effected pursuant to
this Section 8(c), whether or not any notice, writing or marking
indicating such amendment, modification, supplement, waiver or consent appears
on the Registrable Securities or is delivered to such Holder.

 

Severability. 
Any term
or provision of this Agreement that is held by a court of competent
jurisdiction or other authority to be invalid, void or unenforceable in any
situation in any jurisdiction shall not affect the validity or enforceability
of the remaining terms and provisions hereof or the validity or enforceability
of the offending term or provision in any other situation or in any other
jurisdiction.  If the final judgment of a
court of competent jurisdiction or other authority declares that any term or
provision hereof is invalid, void or unenforceable, the parties agree that the
court making such determination shall have the power to reduce the scope,
duration, area or applicability of the term or provision, to delete specific
words or phrases, or to replace any invalid, void or unenforceable term or
provision with a term or provision that is valid and enforceable and that comes
closest to expressing the intention of the invalid or unenforceable term or
provision.

 

Governing Law. 
This Agreement shall be governed by and construed in accordance with the
internal laws (as opposed to the conflicts of law provisions) of the State of
Colorado.

 

Submission to Jurisdiction. 
The parties hereby submit to the non-exclusive jurisdiction of any court
of the State of Colorado or the United States District Court for the District
of Colorado for the purpose of any suit, action, or other proceeding arising
out of this Agreement, and waive any and all objections to jurisdiction that
they may have under the laws of the State of Colorado or the United States and
any claim or objection that any such court is an inconvenient forum.

 

Entire Agreement. 
This
Agreement constitutes the full and entire understanding and agreement between
the parties with regard to the subjects hereof and thereof.

 

Counterparts. 
This
Agreement may be executed in two or more counterparts (including by facsimile
or similar means of electronic communication), each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

Specific Performance.  Buyers and the
Company each agree that irreparable damage would occur in the event that any of
the provisions of this Agreement were not performed by them in accordance with
the terms hereof and that each party shall be entitled to specific performance
of the terms hereof, in addition to any other remedy at law or equity.  Each party hereto expressly waives any
requirement that any other party hereto obtain any bond or provide any
indemnity in connection 

 

15

 

with any action seeking injunctive relief or specific enforcement
of the provisions of the Agreement.

 

Expenses. 
All reasonable, documented out-of-pocket costs and expenses incurred by
the parties in connection with the negotiation, preparation, execution and
delivery of this Agreement, including the fees, expenses and disbursements of
legal counsel and accountants, shall be paid by the Company.  Except as otherwise set forth in this
Agreement, costs and expenses incurred by the parties in connection with the
performance of its obligations under this Agreement shall be paid by the party
incurring such expenses.  The prevailing
party in any litigation or other proceeding to collect Liquidated Damages
pursuant to this Agreement shall be entitled to collect from the non-prevailing
party all reasonable costs and fees associated with such litigation or
proceeding, including reasonable attorneys’ fees.

 

Approval of Holders. Whenever the
consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or
its Affiliates (other than Buyers or subsequent Holders of Registrable
Securities if such subsequent Holders are deemed to be such Affiliates solely
by reason of their holdings of such Registrable Securities) shall not be
counted in determining whether such consent or approval was given by the
Holders of such required percentage.

 

Termination. This Agreement and the
obligations of the parties hereunder shall terminate upon the earlier to occur
of (i) the expiration of the Effectiveness Period or (ii) such time
as there shall be no Registrable Securities.

 

* * * * * 

 

16

 

IN WITNESS WHEREOF, the parties have executed this REGISTRATION RIGHTS AGREEMENT as of the date first written
above.

 

 

	
  GOLDEN
  MINERALS COMPANY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SENTIENT GLOBAL RESOURCES FUND
  III, LP

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Sentient GP III, L.P., General
  Partner

  	
   

  
	
   

  	
  By:

  	
  Sentient Executive GP III,
  Limited, General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name: 

  	
   

  	
   

  
	
  Title: 

  	
  Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SGRF III PARALLEL I, L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Sentient GP III, L.P., General
  Partner

  	
   

  
	
   

  	
  By:

  	
  Sentient Executive GP III,
  Limited, General Partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name: 

  	
   

  	
   

  
	
  Title: 

  	
  Director

  	
   

  

 

 

ANNEX A

 

FORM OF SELLING SECURITYHOLDER NOTICE AND
QUESTIONNAIRE.

 

The undersigned beneficial owner (the “Selling
Securityholder”) of Registrable Securities hereby gives notice to the Company
of its intention to sell or otherwise dispose of Registrable Securities
beneficially owned by it and listed below in Item 3 (unless otherwise specified
under such Item 3) pursuant to the Resale Registration Statement. The
undersigned, by signing and returning this Notice and Questionnaire,
understands that it will be bound by the terms and conditions of this Notice
and Questionnaire and the Registration Rights Agreement.

 

Pursuant to the Registration Rights Agreement, the
undersigned has agreed to indemnify and hold harmless the Company’s directors
and officers and each person, if any, who controls the Company within the
meaning of either Section 15 of the Securities Act or Section 20 of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), from and
against certain losses arising in connection with statements concerning the
undersigned made in the Company’s Resale Registration Statement or the related
prospectus in reliance upon the information provided in this Notice and
Questionnaire.

 

If the Selling Securityholder transfers all or any
portion of the Registrable Securities listed in Item 3 below after the date on
which such information is provided to the Company, the Selling Securityholder
agrees to notify the transferee(s) at the time of the transfer of its
rights and obligations under the registration Rights Agreement and that the
transferee must complete this Notice and Questionnaire in order to avail itself
of the rights under the Registration Rights Agreement.

 

[CONTINUED NEXT PAGE]

 

 

QUESTIONNAIRE

 

Please respond to every item, even if your response is
“none.” If you need more space for any response, please attach additional
sheets of paper. Please be sure to indicate your name and the number of the
item being responded to on each such additional sheet of paper, and to sign
each such additional sheet of paper before attaching it to this Questionnaire.
Please note that you may be asked to answer additional questions depending on
your responses to the following questions.

 

COMPLETED QUESTIONNAIRES SHOULD BE RETURNED TO

GOLDEN MINERALS COMPANY AS FOLLOWS:

 

ONE (1) COPY BY FACSIMILE TO FAX: (303)
839-5907

 

WITH THE ORIGINAL COPY TO FOLLOW TO:

 

GOLDEN  MINERALS COMPANY

 

 

ATTENTION: CHIEF FINANCIAL OFFICER

 

The undersigned hereby provides the following
information to the Company and represents and warrants that such information is
accurate and complete:

 

Your Identity and Background as the Beneficial Owner
of The Registrable Securities.

 

Your full legal
name:

 

 

Your business address (including street address) (or
residence if no business address), telephone number and facsimile number:

 

Address:

 

Telephone No.:

 

Fax No.:

 

Are you a broker-dealer registered pursuant to Section 15
of the Exchange Act?

 

o   Yes.

 

o   No.

 

 

If your response to Item 1(c) above is no, are
you an “affiliate” of a broker-dealer registered pursuant to Section 15 of
the Exchange Act?

 

o   Yes.

 

o   No.

 

For the purposes of
this Item 1(d), an “affiliate” of a registered broker-dealer shall include any
company that directly, or indirectly through one or more intermediaries,
controls, or is controlled by, or is under common control with, such
broker-dealer, and does not include any individuals employed by such
broker-dealer or its affiliates.

 

Full legal name of person or entity in whose name you
hold the Registrable Securities—(i.e. name of your broker, if applicable,
through which your Registered Securities are held):

 

Record Stockholder:

 

Name of broker:

 

Contact person:

 

Telephone No.:

 

Your Relationship With Golden Minerals Company

 

Have you or any of your affiliates, officers,
directors or principal equity holders (owners of 5% or more of the equity
securities of the undersigned) held any position or office or have you had any
other material relationship with Golden Minerals Company (or its predecessors
or affiliates) within the past three years?

 

o   Yes.

 

o   No.

 

If your response to Item 2(a) above is yes,
please state the nature and duration of your relationship with Golden Minerals
Company:

 

Your Interest in the Registrable Securities.

 

State the number of such Registrable Securities
beneficially owned by you.

 

 

Other than as set forth in your response to Item 3(a) above,
do you beneficially own any other securities of Golden Minerals Company?

 

o   Yes.

 

 

o   No.

 

If your answer to Item 3(b) above is yes, state
the type, the aggregate amount and CUSIP No. (if applicable) of such other
securities of Golden Minerals Company beneficially owned by you:

 

Type:

 

Aggregate amount:

 

CUSIP No.:

 

Did you acquire the securities listed in Item 3(a) above
in the ordinary course of business?

 

o   Yes.

 

o   No.

 

At the time of your purchase of the securities listed
in Item 3(a) above, did you have any agreements or understandings,
directly or indirectly, with any person to distribute the securities?

 

o   Yes.

 

o   No.

 

If your response to Item 3(e) above is yes,
please describe such agreements or understandings:

 

Nature of Your Beneficial Ownership.

 

If the name of the beneficial owner of the Registrable
Securities set forth in your response to Item 1(a) above is that of a
limited partnership or corporation, state the names of the general partners of
such limited partnership or the officers and directors of such corporation:

 

 

 

 

With respect to each general partner listed in Item 4(a) above
who is not a natural person, and is not publicly held, name each shareholder
(or holder of partnership interests, if applicable) of such general partner. If
any of these named shareholders are not natural persons or publicly held
entities, please provide the same information. This process should be repeated
until you reach natural persons or a publicly held entity.

 

 

 

 

 

Name your controlling shareholder(s) or other
person or entity who has the ability to exercise control over you (the “Controlling
Entity”). If the Controlling Entity is not a natural person and is not a
publicly held entity, name each shareholder of such Controlling Entity. If any
of these named shareholders are not natural persons or publicly held entities,
please provide the same information. This process should be repeated until you
reach natural persons or a publicly held entity.

 

(A)(i)                  Full legal name of Controlling
Entity(ies) or natural person(s) with who have sole or shared voting or
dispositive power over the Registrable Securities:

 

Business address (including
street address) (or residence if no business address), telephone number and
facsimile number of such person(s):

 

Address:

 

Telephone:

 

Fax:

 

Name of
Shareholder:

 

 

 

(B)(i)                  Full legal name of Controlling
Entity(ies):

 

 

Business address
(including street address) (or residence if no business address), telephone
number and facsimile number of such person(s):

 

Address:

 

Telephone:

 

Fax:

 

Name of
Shareholders:

 

 

 

If you need more
space for this response, please attach additional sheets of paper. Please be
sure to indicate your name and the number of the item being responded to on
each such additional sheet of paper, and to sign each such additional sheet of 

 

 

paper before
attaching it to this Questionnaire. Please note that you may be asked to answer
additional questions depending on your responses to the following questions.

 

Plan of Distribution.

 

The undersigned (including
its donees or pledgees) intends to distribute the Registrable Securities listed
above in Item 3 pursuant to the Resale Registration Statement only as follows
(if at all): Such Registrable Securities may be sold from time to time directly
by the undersigned or, alternatively, through underwriters, broker-dealers or
agents. If the Registrable Securities are sold through underwriters,
broker-dealers or agents, the Selling Securityholder will be responsible for
underwriting discounts or commissions or agents’ commissions. Such Registrable
Securities may be sold in one or more transactions at fixed prices, at
prevailing market prices at the time of sale, at varying prices determined at
the time of sale or at negotiated prices. Such sales may be effected in
transactions (which may involve block transactions) (i) on any national
securities exchange or quotation service on which the Registrable Securities
may be listed or quoted at the time of sale, (ii) in the over-the-counter
market, or (iii) in transactions otherwise than on such exchanges or
services or in the over-the-counter market.

 

DATED this        day
of                 ,
          .

 

 

	
   

  	
   

  
	
   

  	
  Signature of Holder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Print name)

  

 

 

EXHIBIT D

 

December       , 2009

 

Dahlman Rose &
Company, LLC

As Representative of the several

Underwriters referred to below

142 West 57th Street

New York, New York 10019

Dahlman Rose &
Company, LLC

 

Golden Minerals Company Lock-Up Agreement

 

Ladies and Gentlemen:

 

This letter agreement (this “Agreement”) is being delivered pursuant to
that certain Common Stock Purchase Agreement (the “Stock Purchase Agreement”)
by and between Golden Minerals Company, a Delaware corporation (the “Company”),
Sentient Global Resources Fund III, LP, a Cayman Islands exempted limited
partnership, and SGRF III Parallel I, LP, a Cayman Islands exempted limited
partnership, and relates to the proposed initial public offering (the “Offering”)
by the Company of its common stock, $0.01 par value per share (the “Stock”).

 

In order to induce you and the other underwriters for which you will
act as representative (the “Underwriters”) to underwrite the Offering, the
undersigned hereby agrees that, without the prior written consent of Dahlman
Rose & Company, LLC (the “Lead Manager”), during the period from the
date hereof until one hundred eighty (180) days from the date of the final
prospectus for the Offering (the “Lock-Up Period”), the undersigned (a) will
not, directly or indirectly, offer, sell, agree to offer or sell, solicit
offers to purchase, grant any call option or purchase any put option with
respect to, pledge, borrow or otherwise dispose of any Relevant Security (as
defined below), and (b) will not establish or increase any “put equivalent
position” or liquidate or decrease any “call equivalent position” with respect
to any Relevant Security (in each case within the meaning of Section 16 of
the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder), or otherwise enter into any swap,
derivative or other transaction or arrangement that transfers to another, in
whole or in part, any economic consequence of ownership of a Relevant Security,
whether or not such transaction is to be settled by delivery of Relevant
Securities, other securities, cash or other consideration. As used herein “Relevant
Security” means the Stock, any other equity security of the Company or any of
its subsidiaries and any security convertible into, or exercisable or
exchangeable for, any Stock or other such equity security.

 

Notwithstanding the foregoing, the undersigned may transfer Relevant
Securities by bona fide gift, will or intestate succession, provided, each
resulting transferee of Relevant Securities executes and delivers to you an
agreement satisfactory to you certifying that such transferee is bound by the
terms of this Agreement and has been in compliance with the terms hereof since
the date first above written as if it had been an original party hereto.

 

 

Notwithstanding the preceding paragraph, if (1) during the last 17
days of the Lock-Up Period the Company issues an earnings release or material
news or a material event relating to the Company occurs; or (2) prior to
the expiration of the Lock-Up Period the Company announces that it will release
earnings results during the 16-day period beginning on the last day of the
Lock-Up Period, the restrictions imposed by the immediately preceding paragraph
shall continue to apply until the expiration of the 18-day period beginning on
the issuance of the earnings release or the occurrence of the material news or
material event, as applicable, unless the Lead Manager waives, in writing, such
extension.  The undersigned acknowledges
that the Company has agreed in the underwriting agreement for the Offering to
provide notice to the undersigned of any event that would result in an
extension of the Lock-Up Period pursuant to this paragraph, and the undersigned
agrees that any such notice properly delivered will be deemed to have been
given to, and received by, the undersigned.

 

The undersigned hereby authorizes the Company during the Lock-Up Period
to cause any transfer agent for the Relevant Securities to decline to transfer,
and to note stop transfer restrictions on the stock register and other records
relating to, Relevant Securities for which the undersigned is the record holder
and, in the case of Relevant Securities for which the undersigned is the
beneficial but not the record holder, agrees during the Lock-Up Period to cause
the record holder to cause the relevant transfer agent to decline to transfer,
and to note stop transfer restrictions on the stock register and other records relating
to, such Relevant Securities.  The
undersigned hereby further agree that, except as provided in the Registration
Rights Agreement between Buyers and the Company dated the date hereof, without
the prior written consent of the Lead Manager, during the Lock-up Period the
undersigned (x) will not file or participate in the filing with the
Securities and Exchange Commission of any registration statement, or circulate
or participate in the circulation of any preliminary or final prospectus or
other disclosure document with respect to any proposed offering or sale of a
Relevant Security and (y) will not exercise any rights the undersigned may
have to require registration with the Securities and Exchange Commission of any
proposed offering or sale of a Relevant Security.

 

The undersigned hereby represents and warrants that the undersigned has
full power and authority to enter into this Agreement and that this Agreement
constitutes the legal, valid and binding obligation of the undersigned,
enforceable in accordance with its terms. 
Upon request, the undersigned will execute any additional documents
necessary in connection with enforcement hereof.  Any obligations of the undersigned shall be
binding upon the successors and assigns of the undersigned from the date first
above written.

 

This Agreement shall terminate and be of no further force and effect if
the Offering is not completed by March 31, 2010.

 

This Agreement shall be governed by and construed in accordance with
the laws of the State of New York.  Delivery
of a signed copy of this letter by facsimile transmission shall be effective as
delivery of the original hereof.

 

[Signature
follow]

 

2

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Sentient
  Global Resources Fund III, LP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SGRF
  III Parallel I, LP

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Golden Minerals Company Lock-Up Agreement

 

3Exhibit 10.2

 

EXECUTION VERSION

 

PURCHASE AND SALE AGREEMENT

 

Dated as of December 30,
2009

 

among

 

GOLDEN MINERALS COMPANY,

 

SILEX SPAIN, S.L.,

 

MINERA EL QUEVAR S.A.,

 

and

 

MH ARGENTINA S.A.

 

 

LIST OF EXHIBITS

 

	
  Exhibit
  A

  	
  Golden
  Minerals Warrant

  
	
  Exhibit B

  	
  Minera El Quevar Concessions

  
	
  Exhibit
  C

  	
  Registration
  Rights Agreement

  
	
  Exhibit
  D

  	
  Lock-Up
  Agreement

  
	
  Exhibit
  E

  	
  Standstill
  Agreement

  

 

i

 

PURCHASE AND SALE AGREEMENT

 

This PURCHASE AND SALE
AGREEMENT, dated as of December 30, 2009 (this “Agreement”),
is by and between Golden Minerals Company, a corporation organized under the
laws of Delaware (“Golden Minerals”),
Silex Spain, S.L., a sociedad limitada
organized under the laws of Spain (“Buyer”), Minera
El Quevar S.A., a sociedad anónima organized under
the laws of Argentina (the “Company”), and
MH Argentina S.A., a sociedad anonima
organized under the laws of Argentina (“Seller”).

 

RECITALS

 

A.            Seller is the holder of 700
shares of common stock (the “MEQ Shares”) of
the Company and Silex Argentina S.A., a sociedad anonima
organized under the laws of Argentina (“Silex Argentina”)
is the holder of 1,300 shares of common stock of the Company.

 

B.            Silex Argentina and Buyer
are each indirect wholly-owned subsidiaries of Golden Minerals.  Seller is an indirect, wholly-owned
subsidiary of Hochschild Mining Plc, a corporation organized under the laws of
England and Wales (“Hochschild”).

 

C.            Seller desires to sell, and
Golden Minerals and Buyer desire to purchase, the MEQ Shares on the terms and
subject to the conditions set forth in this Agreement.

 

NOW THEREFORE, in
consideration of the mutual agreements hereinafter set forth, the parties agree
as follows:

 

ARTICLE
I

PURCHASE AND SALE OF THE MEQ SHARES

 

1.1.          Purchase and Sale of the MEQ
Shares.  Upon the terms and subject to
the conditions of this Agreement, on the Closing Date, Seller shall sell,
transfer, assign, convey and deliver to Buyer, and Buyer shall purchase from
Seller, the MEQ Shares, free and clear of all Encumbrances.

 

1.2.          Consideration.  As consideration for the MEQ Shares, on the
Closing Date, Golden Minerals shall deliver, transfer, assign and convey or
cause Buyer to deliver:

 

(a)   400,000 shares (the “Golden Minerals Shares”) of Golden Minerals common stock,
par value $0.01 per share (“Common Stock”)
free and clear of all Encumbrances; and,

 

(b)   A warrant to purchase
300,000 shares of Common Stock in the form attached hereto as Exhibit A
(the “Golden Minerals Warrant”) exercisable
for 3 years after the Closing Date.

 

ARTICLE
II

CLOSING

 

2.1.          Closing Date.  The Closing shall take place at 10:00 A.M.,
Denver time, on December 31, 2009, following satisfaction or waiver of each of
the conditions set forth in Article VIII (other than the conditions to
be satisfied on the Closing Date), or such other date as may be agreed upon by 

 

 

Golden Minerals and Seller
by written agreement.  The time and date
on which the Closing is actually held is referred to herein as the “Closing Date”.

 

2.2.          Deliveries of Golden Minerals
and Buyer.  Subject to
the fulfillment or waiver of the conditions set forth in Section 8.1, at
the Closing, Golden Minerals and Buyer shall deliver or cause to be delivered
each of the following to Seller:

 

(a)   A certificate evidencing the
Golden Minerals Shares, registered in the name of Seller, or such other Person
as Seller may designate in writing;

 

(b)   The Golden Minerals Warrant,
duly executed by an authorized officer of Golden Minerals, and registered in
the name of Seller, or such other Person as Seller may designate in writing.

 

(c)   The registration rights
agreement in the form attached hereto as Exhibit C (the “Registration
Rights Agreement”), duly executed by an authorized officer of Golden
Minerals.

 

(d)   A certificate issued by the
secretary or an assistant secretary of Buyer, dated the Closing Date, in form
and substance reasonably satisfactory to Seller, certifying (i) the resolutions
of the appropriate corporate body of Buyer authorizing the execution and
performance of this Agreement and the transactions contemplated hereby, and (ii)
the incumbency and signature of the authorized signatory of Buyer executing
this Agreement;

 

(e)   A certificate issued by the
secretary or an assistant secretary of Golden Minerals, dated the Closing Date,
in form and substance reasonably satisfactory to Seller, certifying (i) the
resolutions of the board of directors of Golden Minerals authorizing the
execution and performance of this Agreement and the Registration Rights
Agreement, the issuance of the Golden Minerals Shares and the Golden Minerals
Warrant and the transactions contemplated hereby and thereby, and (ii) the
incumbency and signatures of the officers of Golden Minerals executing this
Agreement and the Golden Minerals Warrant;

 

(f)    All consents, waivers or
approvals obtained by Buyer or Golden Minerals with respect to the consummation
of the transactions contemplated by this Agreement;

 

(g)   A legal opinion from U.S.
counsel to Golden Minerals as to the authorization and validity of the Golden
Minerals Shares and shares of Common Stock issuable upon exercise of the Golden
Minerals Warrant.

 

(h)   The certificate contemplated
by Section 8.2(b), duly executed by Buyer and Golden Minerals.

 

2.3.          Deliveries of Seller.  Subject to the fulfillment or waiver of the
conditions set forth in Section 8.2, at the Closing, Seller shall
deliver or cause to be delivered each of the following to Golden Minerals and
Buyer:

 

(a)   An irrevocable letter from
Seller, properly executed by the representative of Seller referenced in Section
2.3(b), to the Company instructing that the MEQ Shares be transferred to Buyer
pursuant to this Agreement and instructing the secretary or other authorized 

 

2

 

representative of the Company to update the
shareholders register of the Company to remove Seller and replace it with Buyer
as the registered owner of the MEQ Shares;

 

(b)   A copy of the power of
attorney of the representative of Seller with sufficient authority to sell and
transfer the MEQ Shares;

 

(c)   The Registration Rights
Agreement, duly executed by an authorized officer of Seller.

 

(d)   The lock-up agreement in the
form attached hereto as Exhibit D (the “Lock-Up Agreement”),
duly executed by an authorized officer of Seller, or such other Person as
Seller has designated as the recipient of the Golden Minerals Shares.

 

(e)   The standstill agreement in
the form attached hereto as Exhibit E (the “Standstill
Agreement”), duly executed by an authorized officer of Hochschild.

 

(f)    A certificate issued by the
secretary or an assistant secretary of Seller, dated the Closing Date, in form
and substance reasonably satisfactory to Buyer, certifying (i) the resolutions
of the board of directors of Seller authorizing the execution and performance of
this Agreement and the transactions contemplated hereby, and (ii) the
incumbency and signatures of the authorized signatory of Seller executing this
Agreement;

 

(g)   All consents, waivers or
approvals obtained by Seller with respect to the consummation of the
transactions contemplated by this Agreement;

 

(h)   A letter from each
representative of Seller that is serving as a director or alternate director of
the Company resigning such position with the Company; and

 

(i)    The certificate contemplated
by Section 8.1(b), duly executed by Seller.

 

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF SELLER

 

As an inducement to Buyer to
enter into this Agreement and to consummate the transactions contemplated
hereby, Seller represents and warrants to Buyer and Golden Minerals that the
statements contained in this Article III are true and correct on the
date hereof and will be true and correct as of the Closing Date:

 

3.1.          Organization.  Seller is a sociedad
anónima duly organized, validly existing and in good standing under
the laws of Argentina.   All of the issued and
outstanding capital stock of Seller is held, directly or indirectly, by
Hochschild.

 

3.2.          Authority.  Seller has all requisite corporate or other
entity power and authority to execute, deliver and perform its obligations
under this Agreement.  The execution and
delivery of this Agreement by Seller, and the performance by Seller of its
obligations under this Agreement, has been duly authorized by all requisite
corporate or other entity action on behalf of Seller.

 

3.3.          Validity.  Assuming the due execution and delivery by
Buyer and Golden Minerals, this Agreement constitutes Seller’s legal, valid,
and binding obligation, enforceable against Seller in 

 

3

 

accordance with its terms,
except as such enforceability may be affected by applicable bankruptcy,
reorganization, insolvency, moratorium, or similar Laws affecting creditors
rights generally.

 

3.4.          No Conflicts.  The execution and delivery by Seller of this
Agreement and the performance by Seller of its obligations hereunder and the
consummation of the transactions contemplated hereby (including the transfer of
the MEQ Shares) do not and shall not, (a) result in a violation or breach of
the organizational documents of Seller, (b) result in a violation of any
applicable Laws, or (c) to the knowledge of Seller, constitute a default (or
give rise to any right of termination or cancellation) under, or give rise to
or accelerate any material obligation under, or pursuant to, any material
contract to which the Company is a party or by which the Company or any of its
assets are bound.

 

3.5.          No Consents.  Other than the approval of the board of
directors of Seller, the execution and delivery by Seller of this Agreement and
the performance by Seller of its obligations hereunder and the consummation of
the transactions contemplated hereby (including the transfer of the MEQ Shares)
do not and shall not require the approval, consent, authorization or act of, or
the making by Seller of any declaration, filing or registration with, any
Person.

 

3.6.          No Litigation.  To the knowledge of Seller, there is no
litigation, injunction, order, arbitration or proceeding pending or threatened,
that (i) relates to the Company or all or any portion of the Minera El Quevar
Concessions, or (ii) involves Seller, Hochschild or the Company and that
restrains, prohibits, or seeks to restrain or prohibit, or that could
reasonably be expected otherwise to adversely affect the consummation of the
transactions contemplated by this Agreement.

 

3.7           Minera El Quevar S.A..  To the actual knowledge of Seller, there are
no outstanding claims or possible claims of any kind against any Person in
respect of the Minera El Quevar Concessions.

 

3.8.          Title to MEQ Shares.  The share capital of the Company consists of AR$200,000 divided into 2,000 common shares of AR$100 each.  Seller is the sole record and beneficial
owner of, and has good and marketable title to, the MEQ Shares, free and clear
of all Encumbrances.  The MEQ Shares are
duly authorized, validly issued and fully paid shares of capital stock of the
Company.

 

3.9.          Investment Representations.

 

(a)   Seller is acquiring the
Golden Minerals Shares and the Golden Minerals Warrant for investment solely
for Seller’s own account, except for distributions to Affiliates permitted
pursuant to Section 11.2, and not for distribution, transfer or sale to others
in connection with any distribution or public offering.

 

(b)   Seller has such knowledge,
experience and skill in financial and business matters in general and with
respect to investments of a nature similar to the Golden Minerals Shares and
Golden Minerals Warrant so as to be capable of evaluating the merits and risks
of, and making an informed business decision with regard to, such investment.

 

(c)   Seller (i)  has received all information that Seller deems
necessary to make an informed investment decision with respect to the Golden
Minerals Shares and Golden Minerals 

 

4

 

Warrant; (ii) has had the opportunity to make
such investigation as Seller desires pertaining to Golden Minerals and an
investment in the Golden Minerals Shares and Golden Minerals Warrant and to
verify any information furnished to Seller; and (iii) has had the opportunity
to ask questions to Golden Minerals’ representatives.

 

(d)   Seller’s principal address
is outside the United States and Seller is not a “U.S. person” as defined in Rule
902 under the Securities Act (a “Non-U.S. Person”).  Seller is acquiring the Shares outside of the
United States in accordance with Regulation S under the Securities Act.  The acquisition of the Golden Minerals Shares
and Golden Minerals Warrant by Seller is for Seller’s own account or for the
account of one or more Affiliates of Seller who are Non-U.S. Persons located
outside the United States.

 

(e)   Seller acknowledges that (i)
the Golden Minerals Shares and Golden Minerals Warrant have not been registered
under the Securities Act or other applicable securities laws, and (ii) unless
and until the securities are registered pursuant to an effective registration
statement as provided in the Registration Rights Agreement, the Golden Minerals
Shares and Golden Minerals Warrant may not be sold, transferred, pledged or
otherwise disposed except pursuant to an exemption from registration under the
Securities Act or any applicable securities laws.

 

(f)    Seller acknowledges that the
Golden Minerals Shares, the Golden Minerals Warrant, and the shares issuable
upon exercise of the Golden Minerals Warrant will be “restricted securities” as
defined in Rule 144 under the Securities Act. 
Seller further acknowledges that it is aware that Golden Minerals is a
domestic issuer under the Securities Act, that therefore the legend set forth
below may not be removed in accordance with Rule 905 under the Securities Act
and that consequently delivery of the legended certificate representing such
securities will not constitute “good delivery” in settlement of transactions on
the Toronto Stock Exchange.

 

(g)   Seller acknowledges that
Golden Minerals is not obligated to register the Golden Minerals Shares and
Golden Minerals Warrant for resale under the Securities Act except as provided
in the Registration Rights Agreement or any applicable securities laws and that
Golden Minerals is not obligated to supply Seller with information or
assistance in complying with any exemption under the Securities Act or any
applicable securities laws.

 

(h)   It is understood that the
certificates evidencing the Golden Minerals Shares, the Golden Minerals Warrant
and the shares issuable upon exercise of the Golden Minerals Warrant will bear
the legend set forth below:

 

“THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “U.S. SECURITIES ACT”) OR ANY STATE SECURITIES LAWS, AND
MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO GOLDEN MINERALS, (B) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT, (C) OUTSIDE
THE UNITED STATES IN COMPLIANCE WITH REGULATION S UNDER THE U.S. SECURITIES
ACT, (D) IN COMPLIANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE U.S.
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE
WITH ANY APPLICABLE STATE SECURITIES LAWS, OR (E) IN A TRANSACTION THAT DOES
NOT REQUIRE REGISTRATION UNDER THE U.S. 

 

5

 

SECURITIES ACT OR ANY
APPLICABLE STATE LAWS AND REGULATIONS GOVERNING THE OFFER AND SALE OF
SECURITIES, AND, IN THE CASE OF (C), (D) OR (E), THE HOLDER HAS PRIOR TO SUCH
TRANSFER FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED
STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE CORPORATION.

 

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

 

3.10.        Golden Minerals Shares.  As of the date hereof, neither Seller nor any
of its Affiliates is the beneficial owner (as defined in Rule 13d-3 under the
Exchange Act) of any Common Stock.

 

3.11.        No Brokers.  Neither Seller nor any of its Affiliates has
entered into any agreement or arrangement entitling any agent, broker,
investment banker, financial advisor or other firm or Person to any broker’s or
finder’s fee or any other commission or similar fee in connection with any of
the transactions contemplated by this Agreement.

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF BUYER AND GOLDEN MINERALS

 

As an inducement to Seller
to enter into this Agreement and to consummate the transactions contemplated
hereby, each of Buyer and Golden Minerals, jointly and severally, hereby
represents and warrants to Seller that the statements contained in this Article
IV are true and correct on the date hereof and will be true and correct as
of the Closing Date:

 

4.1.          Organization.  Buyer is a sociedad
limitada duly organized, validly existing and in good standing under
the laws of Spain.  Golden Minerals is a
corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware.  All of
the issued and outstanding capital stock of Buyer is held indirectly by Golden
Minerals.

 

4.2.          Authority.  Each of Buyer and Golden Minerals has all
requisite corporate or other entity power and authority to execute, deliver and
perform its obligations under this Agreement and, with respect to Golden Minerals,
the Golden Minerals Warrant.  The
execution and delivery of this Agreement by Buyer and Golden Minerals, and the
performance by Buyer and Golden Minerals of their obligations under this
Agreement, and, in the case of Golden Minerals, the Golden Minerals Warrant,
have been duly authorized by all requisite corporate or other entity action on
behalf of Buyer and Golden Minerals.

 

4.3.          Validity.  Assuming the due execution and delivery by
Seller, this Agreement constitutes Buyer’s and Golden Minerals’ legal, valid,
and binding obligation, enforceable against each in accordance with its terms,
except as such enforceability may be affected by applicable bankruptcy,
reorganization, insolvency, moratorium, or similar laws affecting creditors
rights generally.  Upon delivery on the
Closing Date, the Golden Minerals Warrant will constitute the 

 

6

 

legal, valid, and binding
obligation of Golden Minerals, enforceable against Golden Minerals in
accordance with its terms, except as such enforceability may be affected by
applicable bankruptcy, reorganization, insolvency, moratorium, or similar laws
affecting creditors’ rights generally.

 

4.4.          No Conflicts.  The execution and delivery by Buyer and
Golden Minerals of this Agreement and the performance by Buyer and Golden
Minerals of their obligations hereunder and the consummation of the
transactions contemplated hereby (including the issuance of the Golden Minerals
Shares) do not and shall not, (a) result in a violation or breach of the
organizational documents of Buyer or Golden Minerals, (b) result in a violation
of any applicable Laws, or (c) constitute a default (or give rise to any right
of termination or cancellation) under, or give rise to or accelerate any
material obligation under, or pursuant to, any material contract to which Buyer
or Golden Minerals is a party or by which Buyer or Golden Minerals or any of
its assets are bound.

 

4.5.          No Consents. Other than
the approval of the board of directors of Buyer and Golden Minerals and the
approval for listing by the Toronto Stock Exchange of the Golden Minerals
Shares and the shares issuable upon exercise of the Golden Minerals Warrant,
the execution and delivery by Buyer and Golden Minerals of this Agreement and
the performance by Buyer and Golden Minerals of their respective obligations
hereunder and the consummation of the transactions contemplated hereby
(including the issuance of the Golden Minerals Shares) do not and shall not
require the approval, consent, authorization or act of, or the making by Buyer
or Golden Minerals of any declaration, filing or registration with, any Person.

 

4.6.          Capitalization of Golden
Minerals.  The
authorized capital of Golden Minerals consists of (i) 50,000,000 shares of
Common Stock, of which 3,255,000 are issued and outstanding as of the date of
this Agreement, and (ii) 10,000,000 shares of preferred stock, par value $0.01
per share, none of which are issued and outstanding.  Except for (a) the Golden Minerals Shares and
the Common Stock reserved for issuance pursuant to the Golden Minerals Warrant,
(b) shares of Common Stock to be issued in connection with the anticipated
Public Offering, (c) 25,000 shares of Common Stock to be issued to directors of
Golden Minerals pursuant to restricted stock units, and (d) issuances
identified in Golden Minerals’ SEC Reports, Golden Minerals has not issued or
committed to issue any shares of Common Stock.

 

4.7           No Litigation.  To the knowledge of Buyer and Golden
Minerals, there is no litigation, injunction, order, arbitration or proceeding
pending or threatened, that restrains, prohibits or seeks to restrain or
prohibit, or that could reasonably be expected otherwise to adversely affect
the consummation of the transactions contemplated by this Agreement.

 

4.8           SEC Reports; Financial
Statements.  Golden
Minerals has filed all reports, schedules, forms, statements and other
documents required to be filed by it under the Securities Act and the Exchange
Act, including pursuant to Section 13(a) or 15(d) thereof, for such period as
it was required by law or regulation to file such material (the foregoing
materials, including the exhibits thereto and documents incorporated by
reference therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid
extension of such time of filing and has filed any such SEC Reports prior to
the expiration of any such extension.  As
of their respective dates, the SEC Reports complied in all material respects
with the requirements of the Securities Act and the Exchange Act, as
applicable, and to the knowledge of Golden Minerals, none of the SEC Reports,
when filed, contained any untrue statement of a material fact or omitted to
state a material 

 

7

 

fact required to be stated
therein or necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading.  The financial statements of Golden Minerals
included in the SEC Reports comply in all material respects with applicable
accounting requirements and the rules and regulations of the SEC with respect
thereto as in effect at the time of filing. 
Such financial statements have been prepared in accordance with United
States generally accepted accounting principles applied on a consistent basis
during the periods involved (“GAAP”), except as may be otherwise specified in
such financial statements or the notes thereto and except that unaudited
financial statements may not contain all footnotes required by GAAP, and fairly
present in all material respects the financial position of Golden Minerals and
its consolidated subsidiaries as of and for the dates thereof and the results
of operations and cash flows for the periods then ended, subject, in the case
of unaudited statements, to normal year-end audit adjustments.

 

4.9           Material Changes;
Undisclosed Events, Liabilities or Developments.  Since the date of the latest audited
financial statements included within the SEC Reports, except as specifically
disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there
has been no event, occurrence or development that has had or that could
reasonably be expected to result in a material adverse effect, (ii) Golden
Minerals has not incurred any liabilities (contingent or otherwise) other than (A)
trade payables and accrued expenses incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected
in Golden Minerals’ financial statements pursuant to GAAP or disclosed in
filings made with the SEC, (iii) Golden Minerals has not altered its method of
accounting, (iv) Golden Minerals has not declared or made any dividend or
distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital
stock, and (v) Golden Minerals has not issued any equity securities to any
executive officer, director or Affiliate, except pursuant to its existing
stock-option and incentive plans for officers and directors.  Golden Minerals does not have pending before
the SEC any request for confidential treatment of information.

 

4.10         Sarbanes-Oxley; Internal
Accounting Controls.  Golden
Minerals is in material compliance with all provisions of the Sarbanes-Oxley
Act of 2002 which are applicable to it as of the date hereof.  Golden Minerals and its subsidiaries maintain
a system of internal accounting controls sufficient 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 GAAP 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.  Golden Minerals has established disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) for Golden Minerals and designed such disclosure controls and
procedures to ensure that information required to be disclosed by Golden Minerals
in the reports it files or submits under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the
SEC’s rules and forms.  Golden Minerals’
certifying officers have evaluated the effectiveness of Golden Minerals’
disclosure controls and procedures as of the end of the period covered by
Golden Minerals’ most recently filed periodic report under the Exchange Act
(such date, the “Evaluation Date”).  Golden Minerals presented in its most
recently filed periodic report under the Exchange Act the conclusions of the
certifying officers about the effectiveness of the disclosure controls and
procedures based on their evaluations as of the Evaluation Date.  Since the Evaluation Date, there have been no
changes in Golden Minerals’ internal control over financial reporting (as such
term is 

 

8

 

defined in the Exchange Act)
that has materially affected, or is reasonably likely to materially affect,
Golden Minerals’ internal control over financial reporting.

 

4.11         Private Placement.  Assuming the accuracy of Seller’s
representations and warranties set forth in Section 3.9, no registration under
the Securities Act is required for the offer and sale of the Golden Minerals
Shares and Golden Minerals Warrants by Golden Minerals to Seller as
contemplated hereby.  The issuance and
sale of the Golden Minerals Shares and Golden Minerals Warrants hereunder does
not contravene the rules and regulations of the SEC.

 

4.12         Exchange Act Registration
and Maintenance Requirements.  Golden Minerals’ Common Stock is registered
pursuant to Section 12(b) or 12(g) of the Exchange Act, and Golden Minerals has
taken no action designed to, or which to its knowledge is likely to have the
effect of, terminating the registration of the Common Stock under the Exchange
Act nor has Golden Minerals received any notification that the SEC is
contemplating terminating such registration.

 

4.13         No Integrated Offering.  Assuming the accuracy of Seller’s representations
and warranties set forth in Section 3.9, neither Golden Minerals, nor any of
its Affiliates, nor any Person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security, under circumstances that would cause this offering of the
Golden Minerals Shares or Golden Minerals Warrants to be integrated or
aggregated with prior offerings by Golden Minerals for purposes of the
Securities Act.

 

4.14         Investment Representations.

 

(a)           Buyer is acquiring the MEQ
Shares for investment solely for Buyer’s own account and not for distribution,
transfer or sale to others in connection with any distribution or public
offering.

 

(b)           Buyer has such knowledge,
experience and skill in financial and business matters in general and with
respect to investments of a nature similar to the MEQ Shares so as to be
capable of evaluating the merits and risks of, and making an informed business
decision with regard to, such investment.

 

(c)            Buyer (i) has received all
information that Buyer deems necessary to make an informed investment decision
with respect to the MEQ Shares; (ii) has had the opportunity to make such
investigation as Buyer desires pertaining to the Company and an investment in
the MEQ Shares and to verify any information furnished to Buyer; and (iii) has
had the opportunity to ask questions to the Company’s representatives.

 

(d)           Buyer acknowledges that (i) the
MEQ Shares have not been registered under the Securities Act or other applicable
securities laws, and (ii) unless and until the securities are registered
pursuant to an effective registration statement, the MEQ Shares may not be
sold, transferred, pledged or otherwise disposed except pursuant to an
exemption from registration under the Securities Act or any applicable
securities laws.

 

(e)            Buyer acknowledges that the
MEQ Shares will be “restricted securities” as defined in Rule 144 under the
Securities Act.

 

9

 

(f)            Buyer acknowledges that the
Company is not obligated to register the MEQ Shares for resale under the
Securities Act or any applicable securities laws and that the Company is not
obligated to supply Buyer with information or assistance in complying with any
exemption under the Securities Act or any applicable securities laws.

 

4.15         No Brokers.  Neither Golden Minerals nor any of its
Affiliates have entered into any agreement or arrangement entitling any agent,
broker, investment banker, financial advisor or other firm or Person to any
broker’s or finder’s fee or any other commission or similar fee in connection
with any of the transactions contemplated by this Agreement.

 

ARTICLE
V

PRE-EMPTIVE SHARE RIGHTS

 

5.1.          Pre-emptive Share Rights.  From and after the date of this Agreement
until the Closing Date, and from the Closing Date to the Expiration Date, each
time Golden Minerals proposes to issue any Common Stock in a public offering or
a private placement for cash (other than in an Exempt Golden Minerals Transaction)
(such issuance, a “Dilutive Issuance”,
and such shares, the “New Shares”),
Golden Minerals shall offer to sell to Seller a number of New Shares (the “Anti-Dilution Golden Minerals Shares”) that would result in
Seller’s Pro Rata Ownership, immediately after the issuance of the
Anti-Dilution Golden Minerals Shares to Seller and the issuance of the New
Shares to each Person other than Seller, to equal eleven percent (11%).  For the avoidance of doubt, (i) Seller or its
Affiliates do not have the right to acquire Anti-Dilution Golden Minerals
Shares if the issuance of New Shares does not result in a reduction of Seller’s
Pro Rata Ownership immediately following the Dilutive Issuance to less than
eleven percent (11%), and (ii) if such Dilutive Issuance would result Seller’s
Pro Rata Ownership being reduced to or remaining below eleven percent (11%)
immediately following the Dilutive Issuance, Seller or its Affiliates shall
have the right to acquire a number of Anti-Dilution Golden Minerals Shares sufficient
to increase Seller’s Pro Rata Ownership up to eleven percent (11%).  The number of Anti-Dilution Golden Minerals
Shares shall be rounded up or down to the nearest whole share, with 0.5 being
rounded up.  Notwithstanding anything to
the contrary in this Agreement, Seller shall have a right to purchase, and
Golden Minerals shall have an obligation to issue, only such number of
Anti-Dilution Golden Minerals Shares as may be issued pursuant to applicable
Canadian and the United States securities laws and securities exchange
regulations in a private placement transaction, without registration in the
Unites States or qualification in Canada, and without obtaining stockholder
approval.

 

5.2.          Notice and Acceptance.

 

(a)   At least ten (10) days prior
to the issuance of any New Shares to which this Article V applies (or, if such
length of notice is impossible or impracticable, such period of time as may be
possible or practicable under the circumstances), Golden Minerals shall deliver
a notice (an “Issue Notice”) to Seller setting
forth: (i) its intention to issue New Shares, (ii) a description of and the
number of such New Shares to be issued, (iii) the price and terms upon which
Golden Minerals proposes to issue such New Shares, and (iv) the number of
Anti-Dilution Golden Minerals Shares which Seller has the right to
acquire.  Within eight (8) days after
receipt of the Issue Notice (or, if less than ten (10) days notice is provided,
as promptly as practicable and in 

 

10

 

any event prior to the issuance of the New
Shares), Seller may elect to purchase, at the price and on the terms specified
in the Issue Notice, the number of Anti-Dilution Golden Minerals Shares
specified in the Issue Notice.

 

(b)   Seller may accept Golden
Minerals’ offer as to the total number of Anti-Dilution Golden Minerals Shares
offered to it or any lesser number, by written notice (“Acceptance
Notice”) given to Golden Minerals within the period set forth in Section
5.2(a).  The Acceptance Notice shall
specify the number of Anti-Dilution Golden Minerals Shares to be purchased and
the name of the Person (being Seller or one of its Affiliates) to which the
Shares should be issued.  Following
receipt of an Acceptance Notice and simultaneous with the issuance of the New
Shares, Golden Minerals shall issue and sell to Seller (or its Affiliate
designee)  and Seller (or its Affiliate
designee) shall subscribe and purchase, at the same price, terms and conditions
as the other New Shares issued in connection with such Dilutive Issuance, the
number of Anti-Dilution Golden Minerals Shares set forth in the Acceptance
Notice.

 

(c)   If all of the New Shares
that Seller is entitled to obtain pursuant to Section 5.1 are not subscribed by
Seller as provided in this Section 5.2, Golden Minerals may, during the ninety
(90) day period following the expiration of the eight-day period provided in Section
5.2 hereof, issue the remaining unsubscribed portion of such New Shares (“Unsubscribed Shares”) to any Person or Persons at a price
not less than that, and upon other terms no more favorable to such Person or
Persons than those, specified in the Issue Notice.  If the Company does not enter into an
agreement for the sale of such Unsubscribed Shares within such ninety (90) day
period, or if such agreement is not consummated within thirty (30) days after
the execution thereof, the right provided hereunder shall be deemed to be
revived and any subsequent sale of such Unsubscribed Shares shall be deemed the
sale of New Shares with respect to which Seller shall have the rights set forth
in Section 5.1.

 

(d)   The election by Seller to
not exercise its rights under this Article V with respect to a particular
Dilutive Issuance shall not constitute a waiver of Seller’s right to acquire
Anti-Dilution Golden Minerals Shares with respect to a subsequent Dilutive
Issuance.

 

(e)   Seller acknowledges that (a)
the Anti-Dilution Golden Minerals Shares, may be “restricted securities” as
defined in Rule 144 under the Securities Act, and (b) Golden Minerals is not
obligated to register the Anti-Dilution Golden Minerals Shares under the
Securities Act or any applicable securities laws, and (c) Golden Minerals is
not obligated to supply Seller with information or assistance in complying with
any exemption under the Securities Act or any applicable securities laws.

 

5.3.          Underwritten Public Offering.  In the event of an underwritten public
offering of Common Stock, including the initial public offering pursuant to the
Preliminary Long Form Prospectus filed with certain Canadian regulatory
authorities on December 14, 2009 in connection with a proposed initial public
offering of Common Stock (the “Initial Public Offering”),
Golden Minerals may satisfy its obligations under this Article V by causing the
underwriter for such offering to allocate sufficient Anti-Dilution Golden
Minerals Shares to Seller in the offering.

 

11

 

5.4.          Termination.  Seller’s rights pursuant to this Article V
shall terminate and be of no further force or effect on and after the date that
is two (2) years following the Closing Date (the “Expiration
Date”).

 

5.5.          Specific Performance and Injunction.  Golden Minerals specifically acknowledges
that its obligations under this Article V are an integral part of the
transactions contemplated by this Agreement. Golden Minerals, therefore,
specifically acknowledges and agrees that the breach of any of the terms of
this Article V by it may cause Seller irreparable harm which may not be
compensable in damages. Golden Minerals further acknowledges and agrees that it
is essential to the effective enforcement of this Agreement that Seller be
entitled to pursue equitable remedies including, but not limited to, specific
performance and injunction.

 

5.6.          Confidentiality.  Seller agrees not to use any information disclosed to Seller by or on behalf of Golden Minerals in connection with
the notice required under Section 5.2 of this Agreement, including, but not
limited to the fact that Golden Minerals is contemplating the issuance of the
New Shares (all such information, the “Confidential
Information”) for
any purpose except to evaluate the possible purchase of Anti-Dilution Golden
Minerals Shares.  Except as may be
required by applicable Laws, Seller agrees not to disclose any Confidential Information to third parties.  Seller acknowledges that U.S. and Canadian securities laws may
prohibit Seller from conducting transactions
in Golden Minerals Common Stock while in possession of the Confidential
Information, or other material non-public information, and Seller agrees to comply in all respects with such laws.

 

ARTICLE
VI

STANDSTILL

 

Seller agrees that, from the
date hereof until the Closing Date, and for a period of two (2) years after the
Closing Date, without the prior unanimous written consent of the board of
directors of Golden Minerals, it shall not, nor shall any of its Affiliates
acquire or offer to acquire or agree to acquire (including in the public
markets or pursuant to the purchase of Anti-Dilution Golden Minerals Shares
pursuant to this Agreement) from any Person, directly or indirectly, by
purchase or merger, through the acquisition of control of another Person, by
joining a partnership, limited partnership or other “group” (within the meaning
of Section 13(d)(3) of the Exchange Act) or otherwise, beneficial ownership of
Common Stock if such acquisition would cause Seller’s beneficial ownership of
Common Stock of the Golden Minerals to exceed nineteen and nine tenths percent
(19.90%) of the outstanding Common Stock of the Company, or direct or indirect
rights (including convertible securities, warrants or options) to acquire such
beneficial ownership (or otherwise act in concert with respect to any such
securities, rights or options with any Person that so acquires, offers to
acquire or agrees to acquire); provided, however,  that no such ownership in excess of
nineteen and nine-tenths percent (19.90%) shall be deemed to have occurred
solely due to acquisitions resulting from (1) a stock split, reverse stock
split, reclassification or other transaction by Golden Minerals affecting any
class of the outstanding capital stock of Golden Minerals generally, (2) a
stock dividend or other pro rata distribution by Golden Minerals to holders of
its outstanding capital stock, or (3) any increase in the percentage ownership
by Seller of outstanding shares of Common Stock resulting from any action taken
by Golden Minerals, including the repurchase of shares of Common Stock pursuant
to any share repurchase or similar program; provided, further
that if Seller or its Affiliates shall become the beneficial owner of more than
nineteen and nine-tenths percent (19.90%) of the Common Stock as a result of
any of the 

 

12

 

transactions
set forth in the preceding clause (1), (2) or (3), then for so long as Seller’s
beneficial ownership remains above such threshold, the acquisition of
additional shares of Common Stock by Seller or its Affiliates (including direct
or indirect rights to acquire Common Stock) shall be prohibited by this Article
VI.

 

ARTICLE
VII

RIGHT OF FIRST REFUSAL

 

If the Company, at any time
following the Closing Date, receives and is willing to accept a bona fide offer
from a third party to purchase, or otherwise acquire an interest in all or any
part of the concessions owned by the Company and set forth on Exhibit B
(the “Minera El Quevar Concessions”), it shall
be obligated to notify Seller of such offer. 
The notice shall state the price and all other pertinent terms and
conditions of the offer, and shall be accompanied by a copy of the offer or
contract for sale.  If the consideration
for the proposed transfer is, in whole or in part, other than cash, the notice
shall describe such consideration and its monetary equivalent (based upon the
fair market value of the nonmonetary consideration and stated in terms of
cash).  Seller shall then have thirty
(30) days from the date such notice is delivered to notify the Company in writing
whether it elects to acquire the offered interest at the same price and on the
same terms and conditions as set forth in the notice.  If it does so elect, the acquisition by
Seller shall be consummated promptly after the Company’s receipt of such notice
from Seller.  If Seller fails to make an
election within the thirty (30) day period, the Company shall have sixty (60)
days following the expiration of such period to consummate the contemplated
transfer of some or all of the Minera El Quevar Concessions to the third party
that made the offer to the Company at a price and on terms no less favorable
than those set forth in the notice.  If
the Company fails to consummate the transfer to a third party within such sixty
(60) day period, Seller’s right of first refusal in such offered interest shall
be revived.  Seller’s right of first
refusal pursuant to this Article VII shall also apply to a sale by Golden
Minerals (or its Affiliate) of the capital stock of the Company, provided
however, that after the date on which Golden Minerals (or its Affiliate)  publicly announces that it has elected to
proceed to development of a mine on all or any portion of the Minera El Quevar
Concessions (such date, the “Development Announcement
Date”), this right of first refusal shall cease to apply to a sale
of the capital stock of the Company.  In
addition, Seller’s right of first refusal will not apply to:

 

(a)   a transfer by the Company of
all or any portion of the Minera El Quevar Concessions of the Company to Golden
Minerals or another Affiliate of the Company, or a transfer by an Affiliate of
the Company of all or any portion of the or equity interests of the Company to
Golden Minerals or another Affiliate of the Company;

 

(b)   the grant by the Company of
a security interest in any interest in the Minera El Quevar Concessions or the
grant by an Affiliate of the Company of a security interest in any equity
interests of the Company, in each case, by mortgage, deed of trust, pledge,
lien or other encumbrance, and the subsequent enforcement or foreclosure of
such security interest by the secured party, if applicable;

 

(c)   the sale or transfer,
directly or indirectly, of equity interests of any Affiliate of the Company; or

 

13

 

(d)   after the Development
Announcement Date, the sale or transfer, directly or indirectly, of equity
interests of the Company.

 

ARTICLE
VIII

CONDITIONS PRECEDENT TO OBLIGATIONS OF PARTIES

 

8.1.          Conditions to Golden
Minerals’ and Buyer’s Obligations.  The obligation of Buyer and Golden Minerals
to consummate the transactions contemplated by this Agreement shall be subject
to the satisfaction, on or prior to the Closing Date, of the following
conditions:

 

(a)   The deliveries set forth in Section
2.3 shall have been satisfied;

 

(b)   There shall have been no material
breach by Seller in the performance of any of its covenants and agreements
herein; each of the representations and warranties of Seller contained or
referred to herein shall be true and correct on the Closing Date as though made
on the Closing Date; and there shall have been delivered to Golden Minerals a
certificate to such effect, dated the Closing Date, signed on behalf of Seller,
in addition to the other deliveries specified in Section 2.3.

 

(c)   The parties shall have
received all approvals and actions of or by all Persons necessary to consummate
the transactions contemplated hereby.

 

8.2.          Conditions to Seller’s
Obligations.  The
obligation of Seller to consummate the transactions contemplated by this
Agreement shall be subject to the satisfaction, on or prior to the Closing
Date, of the following conditions:

 

(a)   The deliveries set forth in Section
2.2 shall have been satisfied;

 

(b)   There shall have been no
material breach by Buyer or Golden Minerals in the performance of any of its
covenants and agreements herein; each of the representations and warranties of
Buyer and Golden Minerals contained or referred to in this Agreement shall be
true and correct on the Closing Date as though made on the Closing Date; and
there shall have been delivered to Seller a certificate to such effect, dated
the Closing Date and signed on behalf of each of Buyer and Golden Minerals, in
addition to the other deliveries specified in Section 2.2.

 

(c)   The parties shall have
received all approvals and actions of or by all Persons necessary to consummate
the transactions contemplated hereby.

 

ARTICLE
IX

TERMINATION

 

9.1.          Termination.  Notwithstanding anything contained in this
Agreement to the contrary, this Agreement may be terminated at any time prior
to the Closing Date:

 

(a)       by the mutual consent of
Golden Minerals and Seller;

 

(b)      by Golden Minerals or Seller
if the Closing shall not have occurred on or before March 31, 2010 (or such
later date as may be mutually agreed to by Golden Minerals and Seller);

 

14

 

(c)       by Golden Minerals in the
event of any material breach by Seller of any of Seller’s agreements,
representations or warranties contained herein and the failure of Seller to
cure such breach within fifteen days after receipt of notice from Golden
Minerals requesting such breach to be cured; or

 

(d)      by Seller in the event of
any material breach by Buyer or Golden Minerals of any of Buyer’s or Golden
Minerals’ agreements, representations or warranties contained herein and the
failure of Buyer or Golden Minerals to cure such breach within fifteen days
after receipt of notice from Seller requesting such breach to be cured.

 

9.2.          Notice of Termination.  Any party desiring to terminate this
Agreement pursuant to Section 9.1 shall give notice of such termination
to the other parties to this Agreement.

 

9.3.          Effect of Termination.  In the event that this Agreement shall be
terminated pursuant to this Article IX, all further obligations of the
parties under this Agreement (other than Sections 11.7 (Governing
Law), 11.8 (Submission to Jurisdiction),
11.9 (Confidentiality), and 11.11 (Expenses),) shall be terminated without further
liability of any party to the other; provided, that nothing herein shall
relieve any party from liability for its willful breach of this Agreement.

 

ARTICLE
X

DEFINITIONS AND INTERPRETATION

 

10.1.        Definitions.  In this Agreement, the following terms have
the meanings specified or referred to in this Section 10.1 and shall be
equally applicable to both the singular and plural forms.

 

“Acceptance Notice” has the meaning specified in Section 5.5.

 

“Affiliate”
means, with respect to any Person, any other Person that directly or indirectly
controls, is controlled by or is under common control with such Person.

 

“Agreement”
has the meaning specified in the preamble.

 

“Anti-Dilution
Golden Minerals Shares” has the meaning specified in Section 5.1.

 

“Business Day” means a day (other than Saturday or Sunday) on
which banks generally are open in Toronto, Canada and Denver, Colorado for the
conduct of substantially all of their activities.

 

“Buyer”
has the meaning specified in the preamble.

 

“Closing”
means the closing of the transfer of the MEQ Shares and the Golden Minerals
Shares and the issuance of the Golden Minerals Warrant.

 

“Closing Date”
has the meaning specified in Section 2.1.

 

“Common Stock”
has the meaning specified in Section 1.2(a).

 

“Company”
has the meaning specified in the preamble.

 

“Dilutive Issuance” has the meaning specified in Section 5.1.

 

“Encumbrance” means any lien (statutory or other), claim,
charge, security interest, mortgage, deed of trust, pledge, hypothecation,
assignment, conditional sale or other title retention agreement, preference,
priority or other security agreement or preferential arrangement of any kind 

 

15

 

or
nature, and any easement, encroachment, covenant, restriction, right of way,
defect in title or other encumbrance of any kind.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, together with the rules and
regulations promulgated thereunder.

 

“Exempt
Golden Minerals Transaction” means any of the following
transactions:

 

(a)       the award, issuance or
exercise of any bona fide equity incentive securities or equity compensation
securities in favor of directors, officers, employees, consultants or service
providers of Golden Minerals or any of its Affiliates pursuant to Golden
Minerals’ 2009 Equity Incentive Plan or any other bona fide equity incentive
plan adopted by Golden Minerals from time to time;

 

(b)      the exercise of the Golden
Minerals Warrant;

 

(c)       any issuance of Common Stock
(or securities of Golden Minerals which are convertible into, exchangeable for
or exercisable to acquire Common Stock), which is made to all holders of Common
Stock on a pro rata basis;

 

(d)       any issuance of Common
Stock in connection with (i) a statutory merger, consolidation, share-for-share
exchange, takeover bid, tender offer, or similar plan or acquisition in which
shares of Common Stock or other securities of Golden Minerals will become or be
exchanged for securities of another Person, or (ii) the issuance of Common
Stock or other securities of Golden Minerals in consideration of a transfer of
assets of another Person to Golden Minerals or one of its Affiliates; or

 

(e)       any issuance or proposed
issuance of Common Stock, other than the Initial Public Offering, disclosed in
writing by the Company prior the date of this Agreement.

 

“Expiration
Date” has the meaning specified in Section 5.4.

 

“GAAP”
means United States generally accepted accounting principles.

 

“Golden
Minerals” has the meaning specified in the preamble.

 

“Golden
Minerals Shares” has the meaning specified in Section 1.2(a).

 

“Golden
Minerals Warrant” has the meaning specified in Section 1.2(b).

 

“Governmental
Body” means any foreign, federal, state, local or other governmental
authority or regulatory body.

 

“Hochschild”
has the meaning specified in the recitals.

 

“Laws” means any foreign, federal, state and local laws, statutes,
regulations, rules, codes or ordinances enacted, adopted, issued or promulgated
by any Governmental Body or common law.

 

“MEQ
Shares” has the meaning specified in the
recitals.

 

“Minera El
Quevar Concessions” has the meaning specified in Article VII.

 

“New Shares”
has the meaning specified in Section 5.1.

 

16

 

“Person” means any individual, corporation, partnership,
joint venture, limited liability company, association, joint-stock company,
trust, unincorporated organization or Governmental Body.

 

“SEC” means
the Securities and Exchange Comission

 

“SEC Reports”
has the meaning specified in Section 4.8.

 

“Securities
Act” means the U.S. Securities Act of 1933, as amended, together
with the rules and regulations promulgated thereunder.

 

“Seller”
has the meaning specified in the preamble.

 

“Seller’s Pro Rata
Ownership” means, at any point in time, that percentage obtained by
dividing (i) the total number of shares of Common Stock beneficially owned by
Seller, as of such point in time (not including unissued shares which may be
issued upon exercise of outstanding warrants, option, rights or other
convertible securities), by (ii) the total number of shares of Common Stock
outstanding as of such point in time (as reasonably calculated based upon all
available information).

 

“Silex
Argentina” has the meaning specified in the recitals.

 

10.2.        Interpretation.  As used in this Agreement, the word “including”
means without limitation, the word “or” is not exclusive and the words “herein”,
“hereof”, “hereby”, “hereto” and “hereunder” refer to this Agreement as a
whole.  Unless the context otherwise
requires, references herein:  (i) to
Articles, Sections and Exhibits mean the Articles and Sections of and the
Exhibits attached to this Agreement; (ii) to an agreement, instrument or other
document means such agreement, instrument or other document as amended,
supplemented and modified from time to time to the extent permitted by the
provisions thereof and by this Agreement; and (iii) to a statute means such
statute as amended from time to time and includes any successor legislation
thereto.  The Exhibits referred to herein
shall be construed with and as an integral part of this Agreement to the same
extent as if they were set forth verbatim herein.  Titles to Articles and headings of Sections
are inserted for convenience of reference only and shall not be deemed a part
of or to affect meaning or interpretation of this Agreement.

 

ARTICLE
XI

GENERAL PROVISIONS

 

11.1.        Notices.  All notices or other communications required
or permitted hereunder shall be in writing and shall be deemed given or
delivered (i) when delivered personally, (ii) if transmitted by facsimile, when
confirmation of transmission is received, unless it is not during normal
business hours in the place of receipt, in which case it shall be deemed
delivered on the next business day, or (iii) if sent by registered or certified
mail, return receipt requested, or by private courier, when received; and shall
be addressed as follows:

 

(a)       If to Seller, to:

 

17

 

Hochschild
Mining PLC

Calle
La Colonia No. 180, Urb. El Vivero, 

Santiado
de Surco

Lima,
Peru

Attention: Jose Augusto Palma

Attention:
Isac Burstein

Fax
No.: 51 1 437-5009

 

(b)      If to Golden Minerals, Buyer
or the Company, to:

 

Golden
Minerals Company

350 Indiana Street, Suite 800

Golden, Colorado 80401

USA

Attention: President

Telephone:       (303) 839-5060

Fax
No.:          (303) 839-5907

 

with
a copy to:

 

Davis
Graham & Stubbs LLP

1550 17th Street, Suite 500

Denver, Colorado 80202

Attention: Deborah J. Friedman

Telephone:       (303) 892-7499

Facsimile:      
(303) 893-1379

 

or to such other address as
such party may indicate by a notice delivered to the other parties hereto.

 

11.2.        Assignment.  The terms, provisions and conditions of this
Agreement shall extend to, be binding upon, and inure to the benefit of the
parties and their respective permitted successors and assigns. No party will
make any assignment of this Agreement or any rights or obligations hereunder
without the advance written consent of the other parties hereto, which may be
granted or denied in the sole discretion of the non-assigning parties, provided
however that Seller may assign its rights and obligations under this
Agreement, including the right to purchase Anti-Dilution Golden Minerals Shares
pursuant to Article V, to any Affiliate of Hochschild in connection with the
transfer of all, but not less than all, of the Golden Minerals Shares without
the consent of Buyer or Golden Minerals.

 

11.3.        Entire Agreement.  This Agreement and the Exhibits referred to
herein and the documents delivered pursuant hereto contain the entire
understanding of the parties hereto with regard to the subject matter contained
herein or therein, and supersede all prior agreements, understandings or
letters of intent between or among any of the parties hereto, including without
limitation the Term Sheet dated November 5, 2009.

 

18

 

11.4.        Waivers.  Except as otherwise provided herein, any term
or provision of this Agreement may be waived, or the time for its performance
may be extended, by the party or parties entitled to the benefit thereof.  Any such waiver shall be validly and sufficiently
given for the purposes of this Agreement if, as to any party, it is in writing
signed by an authorized representative of such party.  The failure of any party hereto to enforce at
any time any provision of this Agreement shall not be construed to be a waiver
of such provision, nor in any way to affect the validity of this Agreement or
any part hereof or the right of any party thereafter to enforce each and every
such provision.  No waiver of any breach
of this Agreement shall be held to constitute a waiver of any other or
subsequent breach.

 

11.5.        Partial Invalidity.  Wherever possible, each provision hereof
shall be interpreted in such manner as to be effective and valid under
applicable law, but in case any one or more of the provisions contained herein
shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, such provision shall be ineffective to the extent, but only to the
extent, of such invalidity, illegality or unenforceability without invalidating
the remainder of such provision or provisions or any other provisions hereof,
unless such a construction would be unreasonable.

 

11.6.        Execution in Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be considered an original instrument, but all
of which shall be considered one and the same agreement, and shall become
binding when one or more counterparts have been signed by each of the parties
hereto and delivered to Seller and Golden Minerals.

 

11.7.        Governing Law.  This Agreement shall be governed by and
construed in accordance with the internal laws (as opposed to the conflicts of
law provisions) of the State of New York.

 

11.8.        Submission to Jurisdiction.  The parties hereby submit to the
non-exclusive jurisdiction of any court of the State of New York or the United
States District Court for the Southern District of the State of New York for
the purpose of any suit, action, or other proceeding arising out of this
Agreement, and waive any and all objections to jurisdiction that they may have
under the laws of the State of New York or the United States and any claim or
objection that any such court is an inconvenient forum.

 

11.9.        Confidentiality.  After Closing, unless Golden Minerals
otherwise agrees in writing, Seller shall keep confidential all non-public,
confidential or proprietary information pertaining to the Company and the
Minera El Quevar Concessions; provided, however, that Seller shall not be
obligated to keep confidential any information that (i) is public or
becomes generally available to the public other than as a result of a
disclosure by Seller, (ii) was or becomes available to Seller after the
Closing Date on a non-confidential basis from a source other than Golden
Minerals or its Affiliates (provided that such source is not bound by any
similar confidentiality obligations), or (iii) Seller is required by
applicable Law to disclose; provided, however, if Seller shall be so required
by applicable Law to disclose any such information, Seller shall use
commercially reasonable efforts to notify Golden Minerals promptly of such
requirement so that Golden Minerals may seek an appropriate protective order.

 

11.10.      Public Announcement.  Neither Golden Minerals nor Seller shall,
without the consent of the other party (which consent shall not be unreasonably
withheld), make any press release or other public announcement concerning the
transactions contemplated by this Agreement, except as

 

19

 

and to the extent that any
such party shall be so obligated by law or by the rules or practices of
the securities exchanges in which the parties or its Affiliates are listed, in
which case the other parties shall be advised and the parties shall use their
best efforts to cause a mutually agreeable release or announcement to be
issued.

 

11.11.      Expenses.  Each party hereto will pay all costs and
expenses incident to its negotiation and preparation of this Agreement and to
its performance and compliance with all agreements and conditions contained
herein on its part to be performed or complied with, including the fees,
expenses and disbursements of its counsel and accountants.

 

11.12.      Further Assurances.  From time to time following the Closing, the
parties hereto shall execute and deliver, or cause to be executed and
delivered, to the other parties hereto such other bills of sale, deeds,
endorsements, assignments and other instruments of conveyance and transfer and
other instruments as the other parties hereto may reasonably request or as may
be otherwise necessary to consummate the transactions hereunder.

 

11.13.      Non-Reliance of Buyer and Golden
Minerals.  Except for the specific
representations and warranties expressly made by Seller in Article III of
this Agreement, each of Golden Minerals and Buyer acknowledges that (a) none
of Seller, its Affiliates nor any other Person has made any representation or
warranty, express or implied, as to the Company or any of the Company’s
businesses, assets, liabilities, operations, prospects, condition (financial or
otherwise), including with respect to the future prospects of the Company, or
the effectiveness or success of the Company’s exploration activities, and (b) no
officer, agent, representative or employee of Seller or Hochschild has any
authority, express or implied, to make any representations, warranties or
agreements not specifically set forth in this Agreement.  Buyer and Golden Minerals each specifically
disclaim that it is relying upon or has relied upon any representations or
warranties that may have been made by any Person except for the specific
representations and warranties expressly made by Seller in Article III of
this Agreement.

 

11.14.      Non-Reliance of Seller.  Except for the specific representations and
warranties expressly made by Golden Minerals and Buyer in Article IV of
this Agreement, Seller acknowledges that (a) none of Buyer, Golden
Minerals, their Affiliates nor any other Person has made any representation or
warranty, express or implied, as to the Company, Golden Minerals, or any of the
Company’s or Golden Minerals’ respective businesses, assets, liabilities,
operations, prospects, condition (financial or otherwise), including with
respect to the future prospects of the Company or Golden Minerals, the
effectiveness or success of the Company’s exploration activities or Golden
Minerals’ future capital raising activities, and (b) no officer, agent,
representative or employee of Buyer or Golden Minerals has any authority,
express or implied, to make any representations, warranties or agreements not
specifically set forth in this Agreement. 
Seller specifically disclaims that it is relying upon or has relied upon
any representations or warranties that may have been made by any Person except
for the specific representations and warranties expressly made by Golden
Minerals and Buyer in Article IV of this Agreement.

 

* * * * *

 

20

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed the day and year first above written.

 

	
  MH
  ARGENTINA S.A.

  	
   

  	
  GOLDEN
  MINERALS COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Isac Burstein

  	
   

  	
  By:

  	
  /s/ Robert P. Vogels

  
	
  Name: Isac Burstein

  	
   

  	
  Name: Robert P. Vogels

  
	
  Title: V.P. Business
  Development

  	
   

  	
  Title: SVP & CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SILEX
  SPAIN, S.L.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Robert B. Blakestad

  
	
   

  	
   

  	
  Name: Robert B. Blakestad

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MINERA EL QUEVAR S.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Agustin Frezze Durand

  
	
   

  	
   

  	
  Name: Agustin Frezze
  Durand

  
	
   

  	
   

  	
  Title: Gerente Legal

  

 

 

EXHIBIT
A

 

THESE WARRANTS AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE
WARRANTS HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR ANY STATE SECURITIES
LAWS, AND MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO
THE COMPANY, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
U.S. SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH
REGULATION S UNDER THE U.S. SECURITIES ACT, (D) IN COMPLIANCE WITH THE
EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE
SECURITIES LAWS, OR (E) IN A TRANSACTION THAT DOES NOT REQUIRE
REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE LAWS AND
REGULATIONS GOVERNING THE OFFER AND SALE OF SECURITIES, AND, IN THE CASE OF
(C), (D) OR (E), THE HOLDER HAS PRIOR TO SUCH TRANSFER FURNISHED TO THE
CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND
SUBSTANCE SATISFACTORY TO THE CORPORATION.

 

COMMON
STOCK PURCHASE WARRANT

 

Void
after 5:00 p.m. (Denver time) on the     th day of
December, 2012 (“Expiry Time”)

 

	
  Number of Warrants: 300,000

  	
   

  	
  Warrant
  Certificate No.  2009-1

  

 

GOLDEN
MINERALS COMPANY

 

This is to certify that, for value received, MH ARGENTINA S.A., a sociedad anonima organized under the laws of Argentina (the “Holder”), shall have the right to purchase from Golden
Minerals Company, a corporation organized under the laws of the State of
Delaware (the “Corporation”), at any time and
from time to time up to the Expiry Time, one fully paid and non-assessable
share of common stock, par value US$0.01 per share (“Common Share”)
for each Warrant (individually, a “Warrant”)
represented hereby at a price of US$15.00 per share (the “Exercise
Price”), subject to the terms and conditions set forth herein.

 

Nothing contained herein shall confer any right upon the Holder to
subscribe for or purchase any Common Shares at any time after the Expiry Time
and from and after the Expiry Time the Warrants and all rights under this
Warrant Certificate shall be void and of no effect or value.

 

Exercise.

 

If the Holder
desires to exercise the right to purchase Common Shares conferred hereby, the
Holder shall:

 

Complete to the
extent possible in the manner indicated and execute an exercise form in the
form attached as (i) Schedule A to this Warrant Certificate if the
Holder is not a “U.S. person” (as such term is defined in Regulation S (a “U.S. Person”) promulgated under the U.S. Securities Act),
not resident in the United States, or not otherwise subject to the securities
laws of the United States, or (ii) Schedule B to this Warrant
Certificate if the Holder is a U.S. Person, resident in the United States or
otherwise subject to the securities laws of the United States;

 

Surrender this
Warrant Certificate to the Corporation; and

 

 

Unless the
Cashless Exercise option provided in Section 1.2 hereof is elected, pay
the Exercise Price on the exercise of this Warrant in respect of the Common
Shares subscribed for either by wire transfer or check payable to the
Corporation.

 

By indicating its
election on the applicable exercise form attached to this Warrant Certificate,
in lieu of making payment of the Exercise Price in cash or wire transfer, the
Holder may elect instead to receive upon such exercise the “Net Number” of
Shares determined according to the following formula (the “Cashless
Exercise”):

 

	
   

  	
  Net Number =

  	
  (A x B) – (A x C)

  	
   

  
	
   

  	
   

  	
  B

  	
   

  

 

For purposes of the
foregoing formula:

 

A  =  The
total number of Common Shares with respect to which this Warrant is then being
exercised.

 

B  =  The
VWAP on the date of such election.

 

C  =  The
Exercise Price then in effect at the time of such exercise.

 

“VWAP”
means, for any date, the price determined by the first of the following clauses
that applies: (i) the volume weighted average price of the Common Shares
for the 10 consecutive trading days immediately preceding the date of delivery
of the exercise form, on the principal U.S. national securities exchange on
which the Common Shares are listed for trading, (ii) if the Common Shares
are not listed for trading on a U.S. national securities exchange, the volume
weighted average price of the Common Shares for the 10 consecutive trading days
immediately preceding the date of delivery of the exercise form on the Toronto
Stock Exchange, (iii) if the Common Shares are not listed for trading on a
U.S. national securities exchange or the Toronto Stock Exchange, the average of
the highest reported bid and lowest reported asked prices on the date preceding
the date of delivery of the exercise form as reported on the OTC Bulletin
Board, or if not applicable, in the “Pink Sheets” published by Pink OTC Markets, Inc.
(or a similar organization or agency succeeding to its functions of reporting
prices), or (v) in all other cases, the fair market value of one Common
Share as determined in good faith by the Company’s board of directors.

 

The Holder shall
be deemed for all purposes to be the holder of record of the number of Common
Shares to be so issued as of the close of business on the date on which this
Warrant Certificate shall have been surrendered and payment made for such
Common Shares as set forth in Section 1.1 or Cashless Exercise elected
pursuant to Section 1.2, as applicable. 
The Holder shall be entitled to delivery of a certificate or
certificates representing such Common Shares and the Corporation shall cause
such certificate or certificates to be delivered to the Holder at the address
specified in the exercise form within three business days after such surrender
and payment as aforesaid.  No fractional
Common Shares will be issuable upon any exercise of this Warrant and the Holder
will not be entitled to any cash payment or compensation in lieu of a
fractional Common Share.

 

Partial Exercise. 
The Holder may from time to time subscribe for and purchase any lesser
number of Common Shares than the total number of Common Shares set forth in
this Warrant Certificate.  If the Holder
subscribes for and purchases any such lesser number of Common Shares prior to
the Expiry Time, the Holder shall be entitled to receive a replacement
certificate representing the unexercised balance of the Warrants.

 

Not a Stockholder.  The
holding of the Warrants shall not constitute the Holder a stockholder of the
Corporation nor entitle the Holder to any right or interest in respect thereof
except as expressly provided in this Warrant Certificate.

 

2

 

Covenants and
Representations.  The Corporation hereby represents and
warrants that  it is authorized to issue
and that it will cause the Common Shares from time to time subscribed for and
purchased in the manner provided in this Warrant Certificate and the
certificate representing such Common Shares to be issued and that it has
reserved, and at all times prior to the Expiry Time, it will reserve and there
will remain unissued, a sufficient number of Common Shares to satisfy the right
of purchase provided in this Warrant Certificate. The Corporation hereby
further covenants and agrees that it will at its expense expeditiously use its
best efforts to obtain the listing of such Common Shares (subject to issue or
notice of issue) on each stock exchange or over-the-counter market on which the
Common Shares may be listed from time to time. All Common Shares which are
issued upon the exercise of the right of purchase provided in this Warrant
Certificate, upon payment therefor of the Exercuse Price pursuant to the
provisions of this Warrant Certificate, or election of Cashless Exercise
pursuant to Section 1.2, if applicable, shall be and be deemed to be fully
paid and non-assessable shares and free from all taxes, liens and charges with
respect to the issue thereof. The Corporation hereby represents and warrants
that this Warrant Certificate is a valid and enforceable obligation of the
Corporation, enforceable in accordance with the provisions of this Warrant
Certificate.

 

Certain
Adjustments.

 

The number and
kind of Common Shares purchasable upon the exercise of this Warrant and the
Exercise Price shall be subject to adjustment from time to time as follows:

 

Stock Dividends. 
If at any time after the date of the issuance of this Warrant the
Corporation shall fix a record date for the issuance of any stock dividend or
distribution payable to the holders of all or substantially all of the Common
Shares in Common Shares or securities or rights convertible or exchangeable
into Common Shares then, on the record date fixed for the determination of
holders of Common Shares entitled to receive such dividend or distribution (or
on the dividend distribution date if no record date is set) or immediately
after the effective date of subdivision or split-up, as the case may be, the
number of shares to be delivered upon exercise of this Warrant will be
increased so that the Holder will be entitled to receive the number of Common
Shares that such Holder would have owned (or been entitled to receive in the
case of convertible or exchangeable securities) immediately following such
action had this Warrant been exercised immediately prior to such record date,
and the Exercise Price will be adjusted as provided below in paragraph (e).

 

Combination of
Stock.  If the number of Common Shares outstanding at
any time after the date of the issuance of this Warrant shall have been
increased or decreased by a combination, subdivision or split of the
outstanding Common Shares, then, immediately after the effective date of such
combination, subdivision or split the number of Common Shares to be delivered
upon exercise of this Warrant will be increased or decreased so that the Holder
thereafter will be entitled to receive the number of Common Shares that such
Holder would have owned immediately following such action had this Warrant been
exercised immediately prior thereto, and the Exercise Price will be adjusted as
provided below in paragraph (e).

 

Reorganization,
etc.  If any capital reorganization of the
Corporation, any reclassification of the Common Shares, any consolidation of
the Corporation with or merger or amalgamation of the Corporation with or into
any other person, or any sale or lease or other transfer of all or
substantially all of the assets of the Corporation to any other person, shall
be effected in such a way that the holders of Common Shares shall be entitled
to receive stock, other securities or assets (whether such stock, other
securities or assets are issued or distributed by the Corporation or another
person) with respect to or in exchange for Common Shares, then, upon exercise
of this Warrant, the Holder shall have the right to receive the kind and amount
of stock, other securities or assets receivable upon such reorganization,
reclassification, consolidation, merger, amalgamation, sale, lease or other
transfer by a holder of the number of 
Common 

 

3

 

Shares that such Holder
would have been entitled to receive upon exercise of this Warrant had this
Warrant been exercised immediately prior to the effective date of such reorganization,
reclassification, consolidation, merger or sale, lease or other transfer.

 

Distributions to
All Holders of Common Shares.  If the
Corporation shall, at any time after the date of issuance of this Warrant, fix
a record date to distribute (or distribute without a record date) to all
holders of its Common Shares, any shares of capital stock of the Corporation
(other than Common Shares or securities or rights convertible or exchangeable
into Common Shares) or evidences of its indebtedness or assets or rights or
warrants to subscribe for or purchase any of its securities or securities
issued in connection with a spin-off, then the Holder shall be entitled to
receive, upon exercise of the Warrant, on a pro rata basis, that portion of
such distribution to which it would have been entitled had the Holder exercised
its Warrant immediately prior to the record date for such distribution.  At the time it fixes the record date for such
distribution (or prior to any distribution if no record date is fixed), the
Corporation shall allocate sufficient reserves to ensure the timely and full
performance of the provisions of this Section 5.1(d).  The Corporation shall promptly (but in any
case no later than five business days prior to the record date of such
distribution) send by internationally recognized courier, postage prepaid, to
the Holder, notice that such distribution will take place.

 

Exercise Price
Adjustment.  Whenever the number of Common Shares
purchasable upon the exercise of this Warrant is adjusted pursuant to Sections
5.1(a) or (b), the Exercise Price payable upon the exercise of this
Warrant shall be adjusted by multiplying such Exercise Price immediately prior
to such adjustment by a fraction, of which the numerator shall be the number of
Common Shares purchasable upon the exercise of the Warrant immediately prior to
such adjustment, and of which the denominator shall be the number of Common
Shares purchasable immediately thereafter. 
In the case of any adjustment that results in the Warrant becoming exercisable
for securities other than, or in addition to, Common Shares, this provision
shall be effected so that the aggregate Exercise Price for all of the
securities or other assets for which this Warrant is exercisable is divided pro
rata among such securities and other assets.

 

Application of
Adjustment Provisions to Warrant Shares Other than Common Shares. 
If, at any time, as a result of the application of this Section 5.1,
the Warrant becomes exercisable for securities or assets other than Common Shares,
then any further adjustment pursuant to this Section 5.1 shall be applied,
as nearly as may be, to any such other securities or assets so as to prevent
any dilution or increase in the rights represented by this Warrant.

 

Notice of
Adjustments.  Whenever the number of Common Shares to be
issued upon exercise of the Warrant or the Exercise Price of such Common Shares
is to be adjusted, as herein provided, the Corporation shall, at least ten (10) business
days prior to such adjustment, send by internationally recognized courier,
postage prepaid, to the Holder, notice of such adjustment or adjustments and a
certificate of the Corporation setting forth the number of Common Shares and
the Exercise Price of such Common Shares after such adjustment, a detailed statement
of the facts requiring such adjustment, and the computation by which such
adjustment was made.

 

Notice of
Extraordinary Corporate Events.      In case the Corporation after the date
hereof shall propose to (i) distribute any dividend (whether stock or cash or
otherwise) to the holders of  Common
Shares or to make any other distribution to the holders of  Common Shares, (ii) offer to all of the
holders of  Common Shares rights to
subscribe for or purchase any additional shares of any class of stock or any
other rights or options, or (iii) effect any reclassification of the
Common Shares (other than a reclassification involving merely the subdivision
or combination of outstanding  Common
Shares), any capital reorganization, any amalgamation, arrangement or merger,
any sale, transfer or other disposition of all or substantially all of its
property, assets and business, or the liquidation, dissolution or winding up of
the Corporation, then, in each such case, the Corporation shall mail to each
Holder notice of such proposed action, which notice shall 

 

4

 

specify the date on which
(a) the books of the Corporation shall close, or (b) a record shall
be taken for determining the holders of Common Shares entitled to receive such
stock dividends or other distribution or such rights or options, or (c) such
reclassification, reorganization, amalgamation, arrangement, merger, sale,
transfer, other disposition, liquidation, dissolution or winding up shall take
place or commence, as the case may be, and the date, if any, as of which it is
expected that holders of record of Common Shares shall be entitled to receive
securities or other property deliverable upon such action.  Such notice shall be mailed in the case of
any action covered by clause (i) or (ii) above at least ten (10) days
prior to the record date for determining holders of Common Shares for purposes
of receiving such payment or offer, or in the case of any action covered by
clause (iii) above at least twenty (20) days prior to the date upon which
such action takes place and at least ten (10) days prior to any record
date to determine holders of Common Shares entitled to receive such securities
or other property.

 

Effect of Failure
to Notify.  Failure to file any certificate or notice or
to mail any notice, or any defect in any certificate or notice, pursuant to
Sections 5.2 and 5.3 shall not affect the requirement to adjust the
Exercise Price, the calculation of the number of shares purchasable upon exercise
of this Warrant, or the legality or validity of any transaction giving rise
thereto, without prejudicing the Holder’s rights to seek damages for such
failure.

 

Other Dilutive
Events.  If the Corporation takes any action affecting
its Common Shares to which the foregoing provisions of this clause 5, in the
opinion of the board of directors of the Corporation, acting in good faith, are
not strictly applicable, or if strictly applicable would not fairly adjust the
rights of the Holder against dilution in accordance with the intent and
purposes hereof, or would otherwise materially affect the rights of the Holder
of the Warrants hereunder, then the Corporation shall execute and deliver to
the Holder an amendment hereto providing for an adjustment in the application
of such provisions so as to adjust such rights as aforesaid in such manner as
the board of directors of the Corporation may determine to be equitable in the
circumstances, acting in good faith, and, if applicable, subject to the
approval of the Toronto Stock Exchange (“TSX”). The failure of the taking of
action by the board of directors of the Corporation to so provide for any
adjustment on or prior to the effective date of any action or occurrence giving
rise to such state of facts will be conclusive evidence that the board of
directors has determined that it is equitable to make no adjustment in the
circumstances.

 

Common Shares. 
For the purpose of this Warrant, the term “Common
Shares” means Golden Minerals Company’ common stock, par value $0.01
per share, as constituted on the date hereof; provided that in the event of a
change, subdivision, re-division, reduction, combination or consolidation
thereof or any other adjustment under Section 5 hereof, or such successive
changes, subdivisions, re-divisions, reductions, combinations, consolidations
or other adjustments, then subject to the adjustments, if any, having been made
in accordance with the provisions of this Warrant,  “Common Shares” shall thereafter mean the shares or other
securities resulting from such change, subdivision, re-division, reduction,
combination or consolidation or other adjustment.

 

Amendments. 
Any provision of this Warrant may be amended and the observance thereof
may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the
Corporation and the Holder, and, if applicable, the approval of the TSX.  Any amendment or waiver effected in
accordance with this Section 6 shall be binding upon such Holder and the Corporation.  A failure on any particular occasion of the
Corporation or the Holder to exercise any right under this Warrant Certificate
shall not be deemed to constitute a waiver of any other right or of that right
on any other occasion.

 

Further Assurances. 
The Corporation hereby covenants and agrees that it will do, execute,
acknowledge and deliver, or cause to be done, executed, acknowledged and
delivered, all and every such 

 

5

 

other act, deed and
assurance as the Holder shall reasonably require for the better accomplishing
and effectuating of the intentions and provisions of this Warrant Certificate.

 

Time of Essence. 
Time is of the essence with respect to this Warrant Certificate.

 

Governing Law. 
This Agreement shall be governed by and construed in accordance with the
internal laws (as opposed to the conflicts of law provisions) of the State of
New York.

 

Submission to
Jurisdiction.  The parties hereby submit to the
non-exclusive jurisdiction of any court of the State of New York or the United
States District Court for the Southern District of the State of New York for
the purpose of any suit, action, or other proceeding arising out of this
Agreement, and waive any and all objections to jurisdiction that they may have
under the laws of the State of New York or the United States and any claim or
objection that any such court is an inconvenient forum.

 

Notices. All notices or other communications
required or permitted hereunder shall be in writing and shall be deemed given
or delivered (i) when delivered personally, (ii) if transmitted by
facsimile, when confirmation of transmission is received, unless it is not
during normal business hours in the place of receipt, in which case it shall be
deemed delivered on the next business day, or (iii) if sent by registered
or certified mail, return receipt requested, or by private courier, when
received; and shall be addressed as follows:

 

The
Corporation:

 

Golden
Minerals Company

350 Indiana Street, Suite 800

Golden, Colorado 80401

USA

Attention: President

Telephone:                                   (303) 839-5060

Fax No.:                                                     (303) 839-5907

 

Holder:

 

MH
Argentina S.A.

 

[Address]

 

Legends on Common
Shares:  Any certificate representing Common Shares
issued upon the exercise of this Warrant will bear the following legend:

 

“THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “U.S. SECURITIES ACT”) OR ANY STATE SECURITIES LAWS, AND
MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE
COMPANY, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
U.S. SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH
REGULATION S UNDER THE U.S. SECURITIES ACT, (D) IN COMPLIANCE WITH THE
EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER, IF AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE
SECURITIES LAWS, OR (E) IN A TRANSACTION THAT DOES NOT REQUIRE
REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE LAWS AND
REGULATIONS GOVERNING THE 

 

6

 

OFFER AND SALE OF
SECURITIES, AND, IN THE CASE OF (C), (D) OR (E), THE HOLDER HAS PRIOR TO
SUCH TRANSFER FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED
STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE CORPORATION.

 

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

 

provided, the legend may be removed by delivery to the
registrar and transfer agent and the Corporation of an opinion of counsel of
recognized standing in form and substance satisfactory to the Corporation, that
such legend is no longer required under applicable requirements of the U.S.
Securities Act or state securities laws.

 

Lost Certificate. 
If this Warrant Certificate or any replacement hereof becomes stolen,
lost, mutilated or destroyed, the Corporation shall, on such terms as it may in
its discretion impose, acting reasonably, issue and deliver a new certificate,
in form identical hereto but with appropriate changes, representing any
unexercised portion of the subscription rights represented hereby to replace
the certificate so stolen, lost, mutilated or destroyed.

 

Language. 
The parties hereto acknowledge and confirm that they have requested that
this Warrant Certificate as well as all notices and other documents
contemplated hereby be drawn up in the English language.

 

Transfer. 
The Warrants shall not be transferred by the Holder without the consent
of the Corporation, provided  however, that the Holder may
transfer all, but not less than all, of the Warrants to any Affiliate of the
Holder without the consent of the Corporation. 
For the purpose of this Warrant, the term “Affiliate” shall mean any other Person that directly or
indirectly controls, is controlled by or is under common control with such
Person.  “Person” shall mean a natural person, partnership,
corporation, limited liability company, business trust, joint stock company,
trust, unincorporated association, joint venture, governmental entity or other
entity or organization. The term “Holder” shall
mean and include any successor, transferee or permitted assignee of the current
or any future Holder. The Warrants may be transferred by the Holder completing
and delivering to the Corporation the transfer form attached hereto as Schedule C.

 

Successors and
Assigns.  This Warrant Certificate shall enure to the
benefit of the Holder and the successors and permitted assignees thereof and
shall be binding upon the Corporation and the successors thereof.

 

* * * * *

 

7

 

IN WITNESS WHEREOF, the
Corporation has caused this Warrant Certificate to be signed by its duly
authorized officer as of the       day of December,
2009.

 

GOLDEN MINERALS COMPANY

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

8

 

SCHEDULE
A

 

TO:         GOLDEN MINERALS
COMPANY

 

EXERCISE
FORM

(Non-U.S. Holders)

 

The undersigned hereby exercises the right to acquire and subscribes
for                   
shares of common stock (“Common Shares”) of Golden Minerals Company (the
“Corporation”) (or such other number of Common Shares or other
securities to which such exercise entitles the undersigned in lieu thereof or
in addition thereto) pursuant to the provisions of the certificate (the “Warrant
Certificate”) dated as of the              
day of                   ,
2009 issued by the Corporation to the Holder (as defined in the Warrant
Certificate) at the purchase price of U.S.$15.00 per Common Share if exercised
on or before 5:00 p.m. (Denver time) on the      th
day of December, 2012 (“Expiry Time”),
(or at such other purchase price as may then be in effect under the provisions
of the Warrant Certificate) and on and subject to the other terms and
conditions specified in the Warrant Certificate and [Initial
one]:

 

o                                    Encloses
herewith a check or has transmitted good same day funds by wire or other
similar transfer in lawful money of the United States payable to or to the
order of the Corporation in payment of the exercise price, or

 

o                                    Elects to acquire
the Common Shares pursuant to the Cashless Exercise option set forth in Section 1.2
of the Warrant Certificate; the undersigned acknowledges that it will receive
the “Net Number” of Common Shares calculated in accordance with Section 1.2,
which shall be less than the number of shares set forth above.

 

By executing this exercise form, the undersigned represents and
warrants that the undersigned (i) is outside the United States (as defined
in Regulation S promulgated by the United States Securities Exchange
Commission under the United States Securities Act of 1933, as amended, (the “U.S.
Securities Act”)) and not a U.S. person (as defined in Regulation S (a “U.S.
Person”), at the time of execution and delivery of this notice; (ii) is
not exercising the right provided for herein for the account or benefit of a
person in the United States or a U.S. Person; (iii) is not exercising
Warrants with the intent to distribute either directly or indirectly any of the
securities acquirable upon exercise in the United States, except in compliance
with the U.S. Securities Act; and (iv) has in all other respects
complied with the terms of Regulation S of the U.S. Securities Act.

 

The undersigned hereby directs that the Common Shares subscribed for be
registered and delivered as follows:

 

	
  Name in Full

  	
   

  	
  Address
  (include Postal Code)

  	
   

  	
  Number
  of Common Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

DATED this             
day of          , 20    .

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

 

SCHEDULE
B

 

TO:         GOLDEN MINERALS
COMPANY

 

EXERCISE
FORM

(U.S. Holders)

 

The undersigned hereby exercises the right to acquire and subscribes
for                        
shares of common stock (“Common Shares”) of Golden Minerals Company (the
“Corporation”) (or such other number of Common Shares or other
securities to which such exercise entitles the undersigned in lieu thereof or
in addition thereto) pursuant to the provisions of the warrant certificate (the
“Warrant Certificate”) dated as of the        
day of         , issued by the
Corporation to the Holder (as defined in the Warrant Certificate) at the
purchase price of U.S.$15.00 per Common Share if exercised on or before 5:00 p.m.
(Denver time) on the    th day of December, 2012 (“Expiry
Time”), (or at such other purchase price as may then be in effect under the
provisions of the Warrant Certificate) and on and subject to the other terms
and conditions specified in the Warrant Certificate and [Initial
one]:

 

o            Encloses herewith a check or
has transmitted good same day funds by wire or other similar transfer in lawful
money of the United States payable to or to the order of the Corporation in
payment of the exercise price, or

 

o            Elects to acquire the Common
Shares pursuant to the Cashless Exercise option set forth in Section 1.2
of the Warrant Certificate; the undersigned acknowledges that it will receive
the “Net Number” of Common Shares calculated in accordance with Section 1.2,
which shall be less than the number of shares set forth above.

 

The undersigned (or any beneficial purchaser on whose behalf the Holder
is acting) is a resident of the United States or is otherwise subject to the
securities laws of the United States and certifies [Initial, as
appropriate]:

 

o            (a)           the undersigned (or any
beneficial purchaser on whose behalf the Holder is acting):

 

(i)            purchased the Warrants
directly from the Corporation for its own account or the account of another “accredited
investor”, as that term is defined in Rule 501(a) (a “U.S.
Accredited Investor”) of Regulation D promulgated under the United States
Securities Act of 1933, as amended (the “U.S. Securities Act”);

 

(ii)           is exercising the Warrants
solely for its own account or the account of such other U.S. Accredited
Investor;

 

(iii)          was a U.S. Accredited Investor
on the date the Warrants were purchased from the Corporation and continues to
be a U.S. Accredited Investor on the date of the exercise of the Warrants; and

 

(iv)          if the Warrants are being
exercised on behalf of another person, represents, warrants and certifies such
person was a U.S. Accredited Investor, on the date the Warrants were purchased
from the Corporation and continues to be a U.S. Accredited Investor on the date
of the exercise of the Warrants; or

 

o            (b)           the undersigned (or any
beneficial purchaser on whose behalf the Holder is acting) has provided to the
Corporation a written opinion of counsel of recognized standing in form and
substance satisfactory to the Corporation to the effect that an exemption from
the registration requirements of the U.S. Securities Act and applicable state
securities laws is available for the issue of the Warrant Shares.

 

If the Holder has indicated that the Holder (and, if applicable, any
beneficial purchaser on whose behalf the Holder is acting) is a U.S. Accredited
Investor by marking alternative (a) above, the Holder has completed and
delivered to the Corporation the form of Accredited Investor Certificate
attached to this Exercise Form as Appendix B-1.

 

 

	
  Name in
  Full

  	
   

  	
  Address (include Postal Code)

  	
   

  	
  Number of Common Shares

  

  

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

DATED this         day of                    ,
20   .

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

2

 

APPENDIX
B-1

 

UNITED
STATES SUBSCRIBERS

 

TO:         GOLDEN MINERALS
COMPANY

 

CERTIFICATE

 

In connection with the
purchase by the undersigned or the disclosed principal, the undersigned (the “Purchaser”)
hereby represents and warrants that the Purchaser (and, if the Purchaser is
acting on behalf of a beneficial purchaser, such beneficial purchase) is an “Accredited
Investor”, as defined in Rule 501(a) of Regulation D under the
United States Securities Act of 1933, as amended (the “U.S. Securities Act”)
as a result of satisfying the requirements of the paragraphs below to which the
undersigned has affixed his or her initials.

 

	
  o

  	
  Any natural person whose individual net worth, or joint net worth
  with that person’s spouse, at the time of his purchase exceeds US$1,000,000;

  
	
   

  	
   

  
	
  o

  	
  Any natural person who had an individual income in excess of
  US$200,000 in each of the two most recent years or joint income with that
  person’s spouse in excess of US$300,000 in each of those years and has a
  reasonable expectation of reaching the same income level in the current year;

  
	
   

  	
   

  
	
  o

  	
  Any bank as defined in Section 3(a)(2) of the U.S.
  Securities Act or any savings and loan association or other institution as
  defined in Section 3(a)(5)(A) of the U.S. Securities Act whether
  acting in its individual or fiduciary capacity; any or dealer registered
  pursuant to Section 15 of the United States Securities Exchange Act of
  1934; any insurance company as defined in Section 2(a)(13) of the U.S.
  Securities Act; any investment company registered under the United States
  Investment Company Act of 1940 or a business development company as defined
  in Section 2(a)(48) of that Act; any Small Business Investment Company
  licensed by the U.S. Small Business Administration under
  Section 301(c) or (d) of the United States Small Business
  Investment Act of 1958; any plan established and maintained by a state, its
  political subdivisions, or any agency or instrumentality of a state or its
  political subdivisions, for the benefit of its employees, if such plan has
  total assets in excess of US$5,000,000; any employee benefit plan within the
  meaning of the United States Employee Retirement Income Security Act of 1974,
  if the investment decision is made by a plan fiduciary, as defined in
  Section 3(21) of such Act, which is either a bank, savings and loan
  association, insurance company, or registered investment adviser, or if the
  employee benefit plan has total assets in excess of US$5,000,000, or, if a
  self-directed plan, with investment decisions made solely by persons that are
  Accredited Investors;

  
	
   

  	
   

  
	
  o

  	
  Any private business development company as defined in
  Section 202(a)(22) of the Investments Advisers Act of 1940;

  

 

3

 

	
  o

  	
  Any organization described in section 501(c)(3) of the Internal
  Revenue Code, corporation, Massachusetts or similar business trust, or partnership
  not formed for the specific purpose of acquiring the Units, with total assets
  in excess of US$5,000,000;

  
	
   

  	
   

  
	
  o

  	
  Any director or executive officer of Golden Minerals Company;

  
	
   

  	
   

  
	
  o

  	
  Any trust with total assets in excess of US$5,000,000, not formed for
  the specific purpose of acquiring the Units, whose purchase is directed by a
  sophisticated person, being defined as a person who has such knowledge and
  experience in financial and business matters that he or she is capable of
  evaluating the merits and risks of the prospective investment;

  
	
   

  	
   

  
	
  o

  	
  Any entity in which all of the equity owners are Accredited
  Investors;

  

 

4

 

SCHEDULE
C

FORM OF
TRANSFER

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
                                                                      
(include name and address of the transferee) Warrants exercisable for shares of
common stock of Golden Minerals Company (the “Corporation”) registered
in the name of the undersigned on the register of the Corporation maintained
therefor, and hereby irrevocably appoints                                                  the
attorney of the undersigned to transfer the said securities on the books
maintained by the Corporation with full power of substitution.

 

DATED this         day of                    ,
20   .

 

 

	
   

  	
  Signature of Transferor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address of Transferor

  

 

The undersigned transferee hereby certifies that:

 

(check one)

 

	
  o

  	
  said transferee was not offered the Warrants in the United States and
  is not in the United States or a “U.S. Person” (as defined in
  Regulation S under the United States Securities
  Act of 1933, as amended (the “U.S. Securities Act”)), and
  is not acquiring the Warrants for the account or benefit of a person in the
  United States or a U.S. Person; or

  
	
   

  	
   

  
	
  o

  	
  enclosed herewith is an opinion of counsel of recognized standing
  (which the transferee understands must be satisfactory to the Corporation) to
  the effect that no violation of the U.S. Securities Act or applicable
  securities laws will result from transfer, exercise or deemed exercise of the
  Warrants.

  

 

 

It
is understood that the Corporation may require additional evidence necessary to
verify the foregoing.

 

	
  DATED:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address of Transferee:

  	
   

  	
  X

  	
   

  
	
   

  	
   

  	
  Signature of individual
  (if Transferee is an individual)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  X

  	
   

  
	
   

  	
   

  	
  Authorized signatory (if
  Transferee is not an individual)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name of Transferee (please print)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name of authorized
  signatory (please print)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Official capacity of
  authorized signatory (please print)

  

 

2

 

EXHIBIT B

 

MINERA EL QUEVAR S.A.
CONCESSIONS

 

Salta Province

 

	
  18037

  	
  QUIRINCOLO
  II

  
	
  3902

  	
  CASTOR

  
	
  17114

  	
  EL
  QUEVAR II

  
	
  1578

  	
  VINCE

  
	
  1542

  	
  ARMONIA

  
	
  12222

  	
  QUESPEJAHUAR

  
	
  18332

  	
  TORO
  I

  
	
  18359

  	
  NEVADO
  I

  

 

 

EXHIBIT C

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”)
is made and entered into as of December    , 2009 by and
among GOLDEN MINERALS COMPANY, a Delaware corporation (the “Company”), and MH ARGENTINA S.A., a sociedad
anonima organized under the laws of Argentina (“Hochschild”).

 

RECITALS

 

A.            In connection with the Purchase and Sale Agreement by
and among the Company, Hochschild and certain other parties dated December [   ], 2009 (the “Purchase Agreement”), the Company has agreed, upon the terms
and subject to the conditions of the Purchase Agreement, to issue to Hochschild
400,000 shares of the Company’s authorized but unissued Common Stock (the “Shares”) and to deliver warrants to purchase 300,000 shares
of Common Stock at an exercise price of US$15.00 (the “Warrant
Shares”).

 

B.            To induce Hochschild to execute and deliver the Purchase
Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and regulations
thereunder, and applicable state securities laws.

 

NOW, THEREFORE, in consideration of the recitals and the mutual
promises, representations, warranties, and covenants set forth in this
Agreement and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

 

AGREEMENT

 

Definitions.

 

In addition to the terms that are defined elsewhere in this Agreement,
the following terms shall have the following meanings:

 

“Affiliate” with respect to any specified
person, has the meaning specified in Rule 144.

 

“Common Stock”
means the Company’s common stock, par value $0.01 per share.

 

“Deferral Notice” has the meaning
specified in Section 3(d) hereof.

 

“Deferral Period” has the meaning
specified in Section 3(d) hereof.

 

“Delay Period” has the meaning set forth
in Section 2(g).

 

“Delayed Filing Date” has the meaning set
forth in Section 2(c).

 

“Demand Notice” has the meaning set forth
in Section 2(a).

 

“Demand Registration” has the meaning set
forth in Section 2(a).

 

 

“Effectiveness Period”
means the period commencing on the on the date the Registration Statement
becomes effective and ending on the date on which the Company terminates the
Registration Statement following the period of effectiveness required pursuant
to Section 2(d), or until all Registrable Securities have ceased to be
Registrable Securities, whichever is earlier.

 

“Exchange Act” means the United States
Securities Exchange Act of 1934, as amended, and the rules and regulations
of the SEC promulgated thereunder.

 

“Filing Date” has the meaning set forth
in Section 2(c).

 

“Holder” of “Holders” means Hochschild, any transferee or
assignee thereof to whom Hochschild assigns its rights under this Agreement and
who agrees to become bound by the provisions of this Agreement in accordance
with Section 8(a), and any transferee or assignee thereof to whom a
transferee or assignee assigns its rights under this Agreement and who agrees
to become bound by the provisions of this Agreement in accordance with Section 8(a).

 

“Material Event” has the meaning
specified in Section 3(d) hereof.

 

“Notice and Questionnaire” means a
written notice delivered to the Company containing substantially the
information called for by the Selling Securityholder Notice and Questionnaire
attached as Annex A to this Agreement.

 

“Notice Holder” means on any date, any
Holder that has delivered a Notice and Questionnaire to the Company on or prior
to such date.

 

“Outstanding Registrable Securities”
means the securities of the Company that qualify as Registrable Securities at
the time of delivery of a Demand Notice.

 

“Prospectus” means the prospectus
included in any Registration Statement (including, without limitation, a
prospectus that discloses information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 415
promulgated under the Securities Act), as amended or supplemented by any
amendment or prospectus supplement, including post-effective amendments, and
all materials incorporated by reference or explicitly deemed to be incorporated
by reference in such Prospectus.

 

“Purchase Agreement” has the meaning set
forth in the Recitals.

 

“Registrable Securities” means the (i) Shares
issued to Hochschild under the Purchase Agreement, (ii) the Warrant
Shares, and (iii) any security issued with respect thereto upon any stock
dividend, split, merger or similar event until, in the case of any such
security, the earlier of (1) the sale pursuant to Rule 144 under the
Securities Act or a registration statement of such Registrable Securities, or (2) the
first date on which the Registrable Securities may be sold pursuant to Rule 144
without being subject to the volume restrictions set forth in Rule 144(e).

 

3

 

“Registration Statement” means any
registration statement of the Company that covers any of the Registrable
Securities pursuant to the provisions of this Agreement, including the
Prospectus, amendments and supplements to such registration statement,
including post-effective amendments, all exhibits, and all materials
incorporated by reference or explicitly deemed to be incorporated by reference
in such registration statement.

 

“Requesting
Holder” has the meaning set forth in Section 2(a).

 

“Rule 144” means Rule 144 under
the Securities Act, as such Rule may be amended from time to time, or any
similar or successor rule or regulation hereafter adopted by the SEC
having substantially the same effect as such Rule.

 

“SEC” means the United States Securities
and Exchange Commission and any successor agency.

 

“Securities Act” means the United States
Securities Act of 1933, as amended, and the rules and regulations
promulgated by the SEC thereunder.

 

“Shares” has the meaning set forth in the
Recitals.

 

“Warrant Shares” has the meaning set
forth in the Recitals.

 

Demand Registration Right.

 

Right to Demand.  Upon the terms and subject to the conditions
of this Agreement, Holders (the “Requesting Holders”)
shall have the right, by written notice delivered to the Company (the “Demand Notice”), to request that the Company register for
resale under and in accordance with the provisions of the Securities Act the
number of Registrable Securities designated by such Holders (a “Demand Registration”). 
Promptly following its receipt of a Demand Notice, the Company will
notify other Holders, if any, of the proposed registration and allow them the
opportunity to include Registrable Securities in such registration.  Holders that elect to participate in such
registration shall provide written notice of such election to the Company
within ten business days of their receipt of notice from the Company.

 

Limits on Demand Registration.

 

The Company shall not be required to register any
Registrable Securities pursuant to this Section 2 unless the anticipated
aggregate offering price to the public in the relevant offering is expected to
be at least $2 million.

 

The Company shall not be obligated to effect more than
one Demand Registration and shall not be obligated to file a Registration
Statement with respect to a Demand Registration prior to May 31, 2010.

 

The Company shall not be obligated to file a
Registration Statement with respect to a Demand Registration within 90 days of
the completion of any underwritten offering of the Company’s securities.

 

4

 

The Company shall not be obligated to file a
Registration Statement with respect to any Demand Notice submitted after the
date that is three years after the date hereof.

 

The Company shall not be obligated to file a
Registration Statement with respect to the distribution of the Registrable
Securities in an underwritten offering.

 

Filing of Registration Statement.  Subject to Sections 2(b) and 2(g), as soon
as practicable, but in any event within 60 days of the date on which the
Company receives a Demand Notice (the “Filing Date”)
(unless a Delay Period is in effect, in which case within 60 days of the
termination of the Delay Period, the “Delayed Filing Date”),
the Company shall file with the SEC a Registration Statement on the appropriate
form for the registration and sale of the Registrable Securities specified in
such Demand Notice, together with the number of Registrable Securities
requested to be included in the Demand Registration by other Holders, if any.

 

Effectiveness of Registration Statement.  The Company shall use its commercially
reasonable efforts to (i) cause a Registration Statement filed pursuant to
Section 2(c) to be declared effective by the SEC as soon as
reasonably practicable, and (ii) subject to Section 8(l), keep such
Registration Statement continuously effective and usable for the sale of
Registrable Securities for a period of up to two hundred seventy (270) days or,
if earlier, until the distribution contemplated in the Registration Statement
has been completed.  If the Company has
an effective Registration Statement on Form S-1 filed pursuant to Section 2(c) and
becomes eligible to use Form S-3 or such other short-form registration
statement form under the Securities Act, the Company shall promptly give notice
of such eligibility to the Holders covered thereby and may, or at the request
of such Holders with a majority of such Registrable Securities shall, promptly
convert such Registration Statement on Form S-1 to a Registration
Statement on Form S-3 or such other short-form registration statement by
means of a post-effective amendment or otherwise, unless any Holder notifies
the Company within 10 business days of receipt of the Company’s notice that
such conversion would interfere with its distribution of Registrable Securities
already in progress and provides a reasonable explanation therefor, in which
case the Company will delay the conversion of the Registration Statement for a
reasonable time after receipt of the first such notice, not to exceed 30 days
in the aggregate (unless the Company, at such time as the conversion from Form S-1
to Form S-3 or such other short-form registration statement may occur,
would otherwise be required to amend the Registration Statement on Form S-1
and require that Holders suspend sales).

 

Holders’ Withdrawal.  Holders of a majority of the Registrable
Securities to be included in a Demand Registration may, at any time prior to
the effective date of the Registration Statement relating thereto, revoke such
request by providing a written notice to the Company of such revocation.  If such revocation request is received more
than fifteen (15) business days after delivery of the Demand Notice, Holders’
right to request a further Demand Registration shall terminate.

 

5

 

Preemption of Demand Registration. 
Notwithstanding anything to the contrary contained herein, after receiving a
Demand Notice, the Company may elect to effect an underwritten primary
registration in lieu of the Demand Registration if the Company’s Board of
Directors believes that such primary registration would be in the best
interests of the Company.  In the event
the Company elects to effect a primary registration after receiving a Demand
Notice, the Company shall use its commercially reasonable efforts to have the
registration statement relating to the primary registration declared effective
by the Commission as soon as reasonably practicable. In addition, the request
for a Demand Registration shall be deemed to have been withdrawn and such
primary registration shall not be deemed to be a Demand Registration for the
purposes of Section 2(b).

 

Delay Period.  Notwithstanding anything to the contrary set
forth herein, the Company shall have the right to delay the filing of any
Registration Statement otherwise required to be filed pursuant to Section 2,
or to suspend the use of any Registration Statement, for a period not in excess
of 60 consecutive days and no more than 90 days in any consecutive 12-month
period (a “Delay Period”), if (i) the Company
is pursuing an acquisition, merger, reorganization, disposition or other
similar transaction and the Company determines in good faith that the Company’s
ability to pursue or consummate such a transaction would be materially
adversely affected by any required disclosure of such transaction in any
Registration Statement, (ii) the Company has experienced some other
material non-public event the disclosure of which at such time, in the good
faith judgment of the Company, would materially adversely affect the Company,
or (iii) the Company determines in good faith that the filing or the
inability to suspend the use of the Registration Statement would otherwise be
detrimental to the Company or its stockholders, or would substantially
interfere with the Company’s ability to timely file a Form 10-Q or 10-K.

 

Registration Procedures.

 

In connection with the registration obligations of the Company under Section 2
hereof, the Company shall:

 

Prepare and file with the SEC such amendments and
post-effective amendments to the Registration Statement as may be necessary to
keep such Registration Statement continuously effective for the applicable
period specified in Section 2(d); cause the related Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to
be filed pursuant to Rule 424 (or any similar provisions then in force)
under the Securities Act; and use commercially reasonable efforts to comply
with the provisions of the Securities Act applicable to it with respect to the
disposition of all securities covered by such Registration Statement during the
Effectiveness Period in accordance with the intended methods of disposition by
the sellers thereof set forth in such Registration Statement as so amended or
such Prospectus as so supplemented.

 

Submit to the SEC, within two (2) Business Days
after the Company learns that no review of the Registration Statement will be
made by the staff of the SEC or that the staff has 

 

6

 

no further comments on a particular Registration
Statement, as the case may be, a request for acceleration of effectiveness of
such Registration Statement to a time and date not later than 48 hours after
the submission of such request.

 

Use commercially reasonable efforts to obtain the
withdrawal of any order suspending the effectiveness of a Registration
Statement or the lifting of any suspension of the qualification (or exemption
from qualification) of any of the Registrable Securities for sale in any
jurisdiction in which they have been qualified for sale, in either case at the
earliest possible moment or, if any such order or suspension is made effective
during any Deferral Period, at the earliest possible moment after the
expiration of such Deferral Period.

 

Upon (A) the issuance by the SEC of a stop order
suspending the effectiveness of the Registration Statement or the initiation of
proceedings with respect to the Registration Statement under Section 8(d) or
8(e) of the Securities Act, (B) the occurrence of any event or the
existence of any fact (a “Material Event”)
as a result of which any Registration Statement shall contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, or
any Prospectus shall contain any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading (including, in any
such case, as a result of the non-availability of financial statements), or (C) the
occurrence or existence of any development, event, fact, situation or
circumstance relating to the Company that, in the discretion of the Company,
makes it appropriate to suspend the availability of the Registration Statement
and the related Prospectus, (i) in the case of clause (B) above,
subject to the next sentence, as promptly as is reasonably practicable prepare
and file a post-effective amendment to such Registration Statement or a
supplement to the related Prospectus or any document incorporated therein by
reference or file any other required document that would be incorporated by
reference into such Registration Statement and Prospectus so that such
Registration Statement does not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading, and such Prospectus does not
contain any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, as thereafter
delivered to the purchasers of the Registrable Securities being sold
thereunder, and, in the case of a post-effective amendment to a Registration
Statement, subject to the next sentence, use commercially reasonable efforts to
cause it to be declared effective as promptly as is reasonably practicable, and
(ii) give notice (via facsimile, telephone or electronic mail followed by
a written notice by internationally recognized overnight courier) to the Notice
Holders that the availability of the Registration Statement is suspended (a “Deferral Notice”) and, upon receipt of any Deferral Notice,
each Notice Holder agrees not to sell any Registrable Securities pursuant to
the Registration Statement until such Notice Holder’s receipt of copies of the
supplemented or amended Prospectus provided for in clause (i) above, or
until it is advised in writing by the Company that the Prospectus may be used,
and has 

 

7

 

received copies of any additional or supplemental
filings that are incorporated or deemed incorporated by reference in such
Prospectus. The Company will use commercially reasonable efforts to ensure that
the use of the Prospectus may be resumed (x) in the case of clause (A) above,
as promptly as is reasonably practicable, (y) in the case of clause (B) above,
as soon as, in the sole reasonable judgment of the Company, public disclosure
of such Material Event would not be prejudicial to or contrary to the interests
of the Company or, if necessary to avoid unreasonable burden or expense, as
soon as reasonably practicable thereafter and (z) in the case of clause (C) above,
as soon as, in the reasonable discretion of the Company, such suspension is no
longer appropriate. The period during which the availability of the
Registration Statement and any Prospectus is suspended (the “Deferral Period”) is not to exceed (i) 60 consecutive
days at any one time; (ii) 30 days in the aggregate in any three-month
period; or (iii) 60 days in the aggregate during any 12-month period, or
as otherwise required by applicable regulatory authority; provided that, the
number of days the Company is required to keep the Registration Statement
effective shall be extended by the number of days equal to the aggregate Deferral
Period(s). The first day of any Deferral Period must be at least two (2) trading
days after the last day of any prior Deferral Period.

 

During the Effectiveness Period (except during such
periods that a Deferral Notice is outstanding and has not been revoked),
deliver to each Notice Holder in connection with any sale of Registrable
Securities pursuant to a Registration Statement, without charge, as many copies
of the Prospectus or Prospectuses relating to such Registrable Securities and
any amendment or supplement thereto as such Notice Holder may reasonably
request; and the Company hereby consents (except during such periods that a
Deferral Notice is outstanding and has not been revoked) to the use of such
Prospectus or each amendment or supplement thereto by each Notice Holder in
connection with any offering and sale of the Registrable Securities covered by
such Prospectus or any amendment or supplement thereto in the manner set forth
therein.

 

Subject to Section 3(d), prior to any public
offering of the Registrable Securities pursuant to the Registration Statement,
use commercially reasonable efforts to register or qualify or cooperate with
the Notice Holders in connection with the registration or qualification (or
exemption from such registration or qualification) of such Registrable
Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Notice Holder reasonably requests
in writing (which request may be included in the Notice and Questionnaire), it
being agreed that no such registration or qualification will be made unless so
requested; prior to any public offering of the Registrable Securities pursuant
to the Registration Statement, use commercially reasonable efforts to keep each
such registration or qualification (or exemption therefrom) effective during
the Effectiveness Period in connection with such Notice Holder’s offer and sale
of Registrable Securities pursuant to such registration or qualification (or
exemption therefrom) and do any and all other acts or things necessary to
enable the disposition in such jurisdictions of such Registrable Securities in
the manner set forth in the relevant Registration Statement and the related
Prospectus; provided, that the Company will not be required to (i) qualify
as a foreign corporation or as a dealer in securities in any 

 

8

 

jurisdiction where it is not otherwise qualified or (ii) take
any action that would subject it to general service of process in suits or to
taxation in any such jurisdiction where it is not then so subject.

 

Holder’s Obligations.

 

Each Holder of Registrable Securities agrees that if
such Holder wishes to sell Registrable Securities pursuant to a Registration
Statement and related Prospectus, it will do so only in accordance with Section 3(d) and
this Section 4. Each Holder of Registrable Securities wishing to sell
Registrable Securities pursuant to any Registration Statement and related
Prospectus agrees to deliver a Notice and Questionnaire to the Company promptly
upon becoming a Holder and notify the Company of any change in such information
at least five (5) business days prior to the filing of the Registration
Statement. From and after the date the Registration Statement is declared
effective, the Company shall, as promptly as is reasonably practicable after
the date a fully completed and legible Notice and Questionnaire is received by
the Company, (i) if required by applicable law, file with the SEC a
post-effective amendment to the Registration Statement or prepare and, if
required by applicable law, file a supplement to the related Prospectus or a
supplement or amendment to any document incorporated therein by reference or
file any other document required by the SEC so that the Holder delivering such
Notice and Questionnaire is named as a selling security holder in the
Registration Statement and the related Prospectus in such a manner as to permit
such Holder to deliver such Prospectus to purchasers of the Registrable Securities
in accordance with applicable law (other than laws not generally applicable to
all Holders of Registrable Securities wishing to sell Registrable Securities
pursuant to the Registration Statement and related Prospectus) and using the
manner of sale specified in the Notice and Questionnaire, and, if the Company
shall file a post-effective amendment to the Registration Statement, use
commercially reasonable efforts to cause such post-effective amendment to be
declared effective under the Securities Act as promptly as is reasonably
practicable; (ii) provide such Holder copies of any documents filed
pursuant to this Section; and (iii) notify such Holder as promptly as is
reasonably practicable after the effectiveness under the Securities Act of any
post-effective amendment filed pursuant to this Section.

 

Each Holder agrees, by acquisition of the Registrable
Securities, that no Holder of Registrable Securities shall be entitled to sell
any of such Registrable Securities pursuant to a Registration Statement or to
receive a Prospectus relating thereto, unless such Holder has furnished the
Company with a properly completed Notice and Questionnaire as required pursuant
to this Section 4 (including the information required to be included in
such Notice and Questionnaire) and the information set forth in the next
sentence.  Each Notice Holder agrees
promptly to furnish to the Company in writing all information required to be
disclosed in order to make the information previously furnished to the Company
by such Notice Holder not misleading, any other information regarding such
Notice Holder and the distribution of such Registrable Securities as may be
required to be disclosed in the Registration Statement under applicable law or
pursuant to SEC comments and any information 

 

9

 

otherwise required by the Company to comply with
applicable law or regulations. Each Holder further agrees, following
termination of the Effectiveness Period, to notify the Company, within ten (10) Business
Days of a request, of the amount of Registrable Securities sold pursuant to the
Registration Statement and, in the absence of a response, the Company may
assume that all of the Holder’s Registrable Securities were so sold.

 

Registration Expenses.

 

The Company shall bear all fees and expenses incurred in connection with
the performance by the Company of its obligations under Sections 2, 3 and 4 of
this Agreement whether or not any of the Registration Statements are declared
effective. Such fees and expenses shall include, without limitation, (i) all
registration and filing fees (including, without limitation, fees and expenses (x) with
respect to filings required to be made with the Toronto Stock Exchange and any
U.S. national securities exchange on which the Company’s Common Stock is then
listed and (y) of compliance with U.S. federal and state securities or “Blue
Sky” laws to the extent such filings or compliance are required pursuant to
this Agreement (including, without limitation, reasonable fees and
disbursements of the counsel specified in the next sentence in connection with
Blue Sky qualifications of the Registrable Securities under the laws of such
jurisdictions as the Notice Holders of a majority of the Registrable Securities
being sold pursuant to a Registration Statement may designate)), (ii) printing
expenses, (iii) duplication expenses relating to copies of any
Registration Statement or Prospectus delivered to any Holders hereunder, and (iv) fees
and disbursements of counsel for the Company in connection with the
Registration Statement, provided, however, that the Company shall not be
responsible for any brokers’ fees, commissions or discounts in connection with
the sale of Registrable Securities or the fees and expenses of legal counsel for
the Holders.

 

Information Requirements.

 

The Company covenants that, if at any time before the end of the
Effectiveness Period the Company is not subject to the reporting requirements
of the Exchange Act, it will cooperate with any Holder of Registrable
Securities and take such further reasonable action as any Holder of Registrable
Securities may request in writing (including, without limitation, making such
reasonable representations as any such Holder may request), all to the extent
required from time to time to enable such Holder to sell Registrable Securities
without registration under and in compliance with the Securities Act and
customarily taken in connection with sales pursuant to such exemptions. Upon
the written request of any Holder of Registrable Securities, the Company shall
deliver to such Holder a written statement as to whether it has complied with
the filing requirements of Rule 144.

 

Indemnification and
Contribution.

 

The Company agrees to indemnify and hold harmless each
Holder of Registrable Securities covered by the Registration Statement, the
directors, officers, employees, Affiliates and agents of each such Holder and
each person who controls any such Holder within the meaning of either the
Securities Act or the Exchange Act against any and all losses, claims, damages
or liabilities, joint or several, to which they or any of them may become
subject under the Securities Act, the Exchange Act or other federal or state
statutory law or regulation, at common law or otherwise, insofar as such
losses, 

 

10

 

claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement or in any
amendment thereof, in each case at the time such became effective under the
Securities Act, or in any preliminary Prospectus or the Prospectus, or in any
amendment thereof or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein (in the case of any
preliminary Prospectus or the Prospectus, in the light of the circumstances
under which they were made) not misleading, and agrees to reimburse each such
indemnified party, as incurred, for any legal or other expenses reasonably
incurred by it in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the
Company will not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon any such untrue
statement or alleged untrue statement or omission or alleged omission made
therein in reliance upon and in conformity with written information furnished
to the Company by or on behalf of the party claiming indemnification
specifically for inclusion therein. This indemnity shall be in addition to any
liability that the Company may otherwise have.

 

Each Holder of securities covered by the Registration
Statement severally and not jointly agrees to indemnify and hold harmless the
Company, each of its directors, each of its officers who signs the Registration
Statement and each person who controls the Company within the meaning of either
the Securities Act or the Exchange Act, to the same extent as the foregoing
indemnity from the Company to each such Holder, but only with reference to
information relating to such Holder furnished to the Company in writing by or
on behalf of such Holder specifically for inclusion in the documents referred
to in the foregoing indemnity. This indemnity agreement shall be acknowledged
by each Notice Holder that is not Hochschild in such Notice Holder’s Notice and
Questionnaire and shall be in addition to any liability that any such Notice
Holder may otherwise have.

 

Promptly after receipt by an indemnified party under
this Section 7 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against the
indemnifying party under this Section 7, notify the indemnifying party in
writing of the commencement thereof; but the failure so to notify the
indemnifying party (i) will not relieve it from liability under paragraph (a) or
(b) above unless such failure results in the forfeiture by the
indemnifying party of substantial rights and defenses or otherwise materially
prejudices the indemnifying party; and (ii) will not, in any event,
relieve the indemnifying party from any obligations to any indemnified party
other than the indemnification obligation provided in paragraph (a) or (b) above.
The indemnifying party shall be entitled to appoint counsel (including local
counsel) of the indemnifying party’s choice at the indemnifying party’s expense
to represent the indemnified party in any action for which indemnification is
sought (in which case the indemnifying party shall not thereafter be
responsible for the fees and expenses of any separate counsel, other than local
counsel if not appointed by the indemnifying party, retained by the indemnified
party or parties except as set forth below); provided, however,
that such counsel shall

 

11

 

be reasonably satisfactory to the indemnified party.
Notwithstanding the indemnifying party’s election to appoint counsel (including
one local counsel) to represent the indemnified party in an action, the
indemnified party shall have the right to employ separate counsel (including
local counsel), and the indemnifying party shall bear the reasonable fees,
costs and expenses of such separate counsel if (i) the use of counsel
chosen by the indemnifying party to represent the indemnified party would
present such counsel with a conflict of interest; (ii) the actual or
potential defendants in, or targets of, any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that there may be legal defenses available to it
and/or other indemnified parties that are different from or additional to those
available to the indemnifying party; (iii) the indemnifying party shall
not have employed counsel reasonably satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of the
institution of such action; or (iv) the indemnifying party shall authorize
the indemnified party to employ separate counsel at the expense of the
indemnifying party. An indemnifying party will not, without the prior written
consent of the indemnified parties, settle or compromise or consent to the
entry of any judgment with respect to any pending or threatened claim, action,
suit or proceeding in respect of which indemnification or contribution may be
sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise
or consent includes an unconditional release of each indemnified party from all
liability arising out of such claim, action, suit or proceeding.

 

If the indemnification to which an indemnified party
is entitled under this Section 7 is for any reason unavailable to or
insufficient although applicable in accordance with its terms to hold harmless
an indemnified party in respect of any losses, liabilities, claims, damages or
expenses referred to therein, then each indemnifying party shall contribute to
the aggregate amount of such losses, liabilities, claims, damages and expenses
incurred by such indemnified party, as incurred, in such proportion as is
appropriate to reflect the relative fault of the indemnifying party or parties
on the one hand and of the indemnified party on the other hand in connection
with the statements or omissions which resulted in such losses, liabilities,
claims, damages or expenses, as well as any other relevant equitable
considerations.

 

The relative fault of the Company on the one hand and
the Holders of the Registrable Securities on the other hand shall be determined
by reference to, among other things, whether any such untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a
material fact relates to information supplied in writing by the Company or in
writing by the Holder of the Registrable Securities and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.

 

The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 7(d) were
determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to above in this
Section 7(d). The aggregate amount of losses, liabilities, 

 

12

 

claims, damages, and expenses incurred by an
indemnified party and referred to above in this Section 7(d) shall be
deemed to include any out-of-pocket legal or other expenses reasonably incurred
by such indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such
untrue or alleged untrue statement or omission or alleged omission.

 

Notwithstanding the provisions of this Section 7,
no Holder of any Registrable Securities shall be required to indemnify or
contribute any amount in excess of the amount by which the proceeds received
from the sale of the Registrable Securities by such Holder of Registrable
Securities exceeds the amount of any damages that such Holder of Registrable
Securities has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission.

 

No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.

 

For purposes of this Section 7(d), each person,
if any, who controls Hochschild or any Holder of Registrable Securities within
the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act shall have the same rights to contribution as Hochschild or such
Holder, and each person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act
shall have the same rights to contribution as the Company.

 

The provisions of this Section 7 shall remain in
full force and effect, regardless of any investigation made by or on behalf of
any Holder or the Company or any of the indemnified persons referred to in this
Section 7, and shall survive the sale by a Holder of Registrable
Securities covered by the Registration Statement.

 

Miscellaneous

 

Successors and
Assigns.  Neither
this Agreement nor any of the rights, interests or obligations hereunder shall
be assigned by any of the parties hereto without the prior written consent of
the other parties, provided  however that this Agreement may be
assigned by the Holder in connection with the transfer of all, but not less
than all, of the Registrable Securities to any Affiliate of the Holder.  Subject to the preceding sentence, this
Agreement shall be binding upon, inure to the benefit of, and be enforceable
by, the parties and their respective permitted successors and assigns.  If any permitted transferee of any Holder
shall acquire Registrable Securities, such Registrable Securities shall be
subject to all of the terms of this Agreement and by taking and holding such
Registrable Securities such person shall be conclusively deemed to have agreed
to be bound by and to perform all of the terms and provisions of this
Agreement.  Nothing in this Agreement is intended
to confer upon any party other than the parties hereto or their respective
permitted successors and assigns any 

 

13

 

rights, remedies, obligations, or liabilities under or
by reason of this Agreement, except as expressly provided in this Agreement.

 

Notices.  All notices or other
communications required or permitted hereunder shall be in writing and shall be
deemed given or delivered (i) when delivered personally, (ii) if
transmitted by facsimile, when confirmation of transmission is received, unless
it is not during normal business hours in the place of receipt, in which case
it shall be deemed delivered on the next business day, or (iii) if sent by
registered or certified mail, return receipt requested, or by private courier,
when received; and shall be addressed as follows:

 

	
  Company:

  	
   

  	
  Golden Minerals Company

  
	
   

  	
   

  	
  350 Indiana Street, Suite 800

  
	
   

  	
   

  	
  Golden, Colorado 80401

  
	
   

  	
   

  	
  Attn: President

  
	
   

  	
   

  	
  Fax: (303) 839-5907

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Davis Graham & Stubbs LLP

  
	
   

  	
   

  	
  1550 17th Street, Suite 500

  
	
   

  	
   

  	
  Denver, Colorado 80202

  
	
   

  	
   

  	
  Attn: Deborah J. Friedman

  
	
   

  	
   

  	
  Fax: (303) 892-7400

  
	
   

  	
   

  	
   

  
	
  Hochschild:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
   

  

 

 

or to such other
address as such party may indicate by a notice delivered to the other parties
hereto.

 

Amendments and Waivers.  The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, without the written consent of the Company and the Holders of a majority
of the then outstanding Registrable Securities. Notwithstanding the foregoing,
a waiver or consent to depart from the provisions hereof with respect to a
matter that relates exclusively to the rights of Holders of Registrable
Securities whose securities are being sold pursuant to a Registration Statement
and that does not directly or indirectly affect the rights of other Holders of
Registrable Securities may be given by Holders of at least a majority of the
Registrable Securities being sold by such Holders pursuant to such

 

14

 

Registration Statement; provided, that the
provisions of this sentence may not be amended, modified, or supplemented
except in accordance with the provisions of the immediately preceding sentence.
Each Holder of Registrable Securities outstanding at the time of any such
amendment, modification, supplement, waiver or consent or thereafter shall be
bound by any such amendment, modification, supplement, waiver or consent effected
pursuant to this Section 8(c), whether or not any notice, writing or
marking indicating such amendment, modification, supplement, waiver or consent
appears on the Registrable Securities or is delivered to such Holder.

 

Severability. 
Any term or provision of this Agreement that is held by a court of
competent jurisdiction or other authority to be invalid, void or unenforceable
in any situation in any jurisdiction shall not affect the validity or
enforceability of the remaining terms and provisions hereof or the validity or
enforceability of the offending term or provision in any other situation or in
any other jurisdiction.  If the final
judgment of a court of competent jurisdiction or other authority declares that
any term or provision hereof is invalid, void or unenforceable, the parties
agree that the court making such determination shall have the power to reduce
the scope, duration, area or applicability of the term or provision, to delete
specific words or phrases, or to replace any invalid, void or unenforceable
term or provision with a term or provision that is valid and enforceable and
that comes closest to expressing the intention of the invalid or unenforceable
term or provision.

 

Governing Law. 
This Agreement shall be governed by and construed in accordance with the
internal laws (as opposed to the conflicts of law provisions) of the State of
New York.

 

Submission to
Jurisdiction.  The parties hereby submit to the
non-exclusive jurisdiction of any court of the State of New York or the United
States District Court for the Southern District of the State of New York for
the purpose of any suit, action, or other proceeding arising out of this
Agreement, and waive any and all objections to jurisdiction that they may have
under the laws of the State of  New York
or the United States and any claim or objection that any such court is an
inconvenient forum.

 

Entire Agreement.  This Agreement constitutes the
full and entire understanding and agreement between the parties with regard to
the subjects hereof and thereof.

 

Counterparts.  This Agreement may be executed in
two or more counterparts (including by facsimile or similar means of electronic
communication), each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

Specific
Performance.  Hochschild and the Company each agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed by them in accordance with the terms hereof and
that each party shall be entitled to specific performance of the terms hereof,
in addition to any other remedy at law or equity.  Each party hereto expressly waives any
requirement that any other

 

15

 

party hereto obtain
any bond or provide any indemnity in connection with any action seeking
injunctive relief or specific enforcement of the provisions of the Agreement.

 

Expenses. 
All reasonable, documented out-of-pocket costs and expenses  incurred by the parties in connection with
the negotiation, preparation, execution and delivery of this Agreement,
including the fees, expenses and disbursements of legal counsel and
accountants, shall be paid by the Company. 
Except as otherwise set forth in this Agreement, costs and expenses
incurred by the parties in connection with the performance of its obligations
under this Agreement shall be paid by the party incurring such expenses.

 

Approval of Holders.  Whenever the consent or approval of Holders
of a specified percentage of Registrable Securities is required hereunder,
Registrable Securities held by the Company or its Affiliates (other than
Hochschild or subsequent Holders of Registrable Securities if such subsequent
Holders are deemed to be Affiliates solely by reason of their holdings of such
Registrable Securities) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

 

Termination.  This Agreement and the obligations of the
parties hereunder shall terminate upon the earlier to occur of (i) the
expiration of the Effectiveness Period or (ii) such time as there shall be
no Registrable Securities.

 

* * * * *

 

16

 

IN WITNESS WHEREOF, the parties have executed this REGISTRATION
RIGHTS AGREEMENT as of the date first written above.

 

 

	
  GOLDEN MINERALS COMPANY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  MH ARGENTINA S.A.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  

 

 

ANNEX A

 

FORM OF SELLING SECURITYHOLDER NOTICE AND
QUESTIONNAIRE.

 

The undersigned beneficial owner (the “Selling Securityholder”) of
Registrable Securities hereby gives notice to the Company of its intention to
sell or otherwise dispose of Registrable Securities beneficially owned by it
and listed below in Item 3 (unless otherwise specified under such Item 3)
pursuant to the Registration Statement. The undersigned, by signing and
returning this Notice and Questionnaire, understands that it will be bound by
the terms and conditions of this Notice and Questionnaire and the Registration
Rights Agreement.

 

Pursuant to the Registration Rights Agreement, the undersigned has
agreed to indemnify and hold harmless the Company’s directors and officers and
each person, if any, who controls the Company within the meaning of either Section 15
of the Securities Act or Section 20 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), from and against certain losses arising
in connection with statements concerning the undersigned made in the Company’s
Registration Statement or the related prospectus in reliance upon the
information provided in this Notice and Questionnaire.

 

If the Selling Securityholder transfers all or any portion of the
Registrable Securities listed in Item 3 below after the date on which such
information is provided to the Company, the Selling Securityholder agrees to
notify the transferee(s) at the time of the transfer of its rights and
obligations under the registration Rights Agreement and that the transferee
must complete this Notice and Questionnaire in order to avail itself of the
rights under the Registration Rights Agreement.

 

[CONTINUED NEXT PAGE]

 

 

QUESTIONNAIRE

 

Please respond to every item, even if your response is “none.” If you
need more space for any response, please attach additional sheets of paper.
Please be sure to indicate your name and the number of the item being responded
to on each such additional sheet of paper, and to sign each such additional
sheet of paper before attaching it to this Questionnaire. Please note that you
may be asked to answer additional questions depending on your responses to the
following questions.

 

COMPLETED QUESTIONNAIRES SHOULD BE RETURNED TO

GOLDEN MINERALS COMPANY AS FOLLOWS:

 

ONE (1) COPY BY FACSIMILE TO FAX: (303)
839-5907

 

WITH THE ORIGINAL COPY TO FOLLOW TO:

 

GOLDEN MINERALS COMPANY

 

 

ATTENTION: CHIEF FINANCIAL OFFICER

 

The undersigned hereby provides the following information to the Company
and represents and warrants that such information is accurate and complete:

 

Your Identity and Background as the Beneficial Owner of The Registrable
Securities.

 

Your full legal name:

 

 

Your business address (including street address) (or residence if no
business address), telephone number and facsimile number:

 

	
  Address:

  	
   

  
	
   

  
	
   

  	
   

  
	
  Telephone No.:

  	
   

  
	
   

  
	
  Fax No.:

  	
   

  
			

 

Are you a broker-dealer registered pursuant to Section 15 of the
Exchange Act?

 

o   Yes.

 

o   No.

 

 

If your response to Item 1(c) above is no, are you an “affiliate”
of a broker-dealer registered pursuant to Section 15 of the Exchange Act?

 

o   Yes.

 

o   No.

 

For the purposes of this Item 1(d), an “affiliate” of
a registered broker-dealer shall include any company that directly, or
indirectly through one or more intermediaries, controls, or is controlled by,
or is under common control with, such broker-dealer, and does not include any
individuals employed by such broker-dealer or its affiliates.

 

Full legal name of person or entity in whose name you hold the
Registrable Securities—(i.e. name of your broker, if applicable, through which
your Registered Securities are held):

 

	
  Record Stockholder:

  	
   

  
	
   

  	
   

  
	
  Name of broker:

  	
   

  
	
   

  	
   

  
	
  Contact person:

  	
   

  
	
   

  	
   

  
	
  Telephone No.:

  	
   

  
			

 

Your Relationship With Golden Minerals Company

 

Have you or any of your affiliates, officers, directors or principal
equity holders (owners of 5% or more of the equity securities of the
undersigned) held any position or office or have you had any other material
relationship with Golden Minerals Company (or its predecessors or affiliates)
within the past three years?

 

o   Yes.

 

o   No.

 

If your response to Item 2(a) above is yes, please state the nature
and duration of your relationship with Golden Minerals Company:

 

Your Interest in the Registrable Securities.

 

State the number of such Registrable Securities beneficially owned by
you.

 

 

Other than as set forth in your response to Item 3(a) above, do you
beneficially own any other securities of Golden Minerals Company?

 

o   Yes.

 

 

o   No.

 

If your answer to Item 3(b) above is yes, state the type, the
aggregate amount and CUSIP No. (if applicable) of such other securities of
Golden Minerals Company beneficially owned by you:

 

	
  Type:

  	
   

  
	
   

  	
   

  
	
  Aggregate amount:

  	
   

  
	
   

  	
   

  
	
  CUSIP No.:

  	
   

  
				

 

Did you acquire the securities listed in Item 3(a) above in the
ordinary course of business?

 

o   Yes.

 

o   No.

 

At the time of your purchase of the securities listed in Item 3(a) above,
did you have any agreements or understandings, directly or indirectly, with any
person to distribute the securities?

 

o   Yes.

 

o   No.

 

If your response to Item 3(e) above is yes, please describe such
agreements or understandings:

 

Nature of Your Beneficial Ownership.

 

If the name of the beneficial owner of the Registrable Securities set
forth in your response to Item 1(a) above is that of a limited partnership
or corporation, state the names of the general partners of such limited
partnership or the officers and directors of such corporation:

 

 

With respect to each general partner listed in Item 4(a) above who
is not a natural person, and is not publicly held, name each shareholder (or
holder of partnership interests, if applicable) of such general partner. If any
of these named shareholders are not natural persons or publicly held entities,
please provide the same information. This process should be repeated until you
reach natural persons or a publicly held entity.

 

 

 

 

Name your controlling shareholder(s) or other person or entity who
has the ability to exercise control over you (the “Controlling Entity”). If the
Controlling Entity is not a natural person and is not a publicly held entity,
name each shareholder of such Controlling Entity. If any of these named
shareholders are not natural persons or publicly held entities, please provide
the same information. This process should be repeated until you reach natural
persons or a publicly held entity.

 

(A)(i)       Full legal name of Controlling Entity(ies) or
natural person(s) with who have sole or shared voting or dispositive power
over the Registrable Securities:

 

Business address (including street address) (or residence if no business
address), telephone number and facsimile number of such person(s):

 

	
  Address:

  
	
   

  
	
  Telephone:

  
	
   

  
	
  Fax:

  
	
   

  
	
  Name of Shareholder:

  
	
   

  

 

(B)(i)       Full legal name of Controlling Entity(ies):

 

 

Business address (including street address) (or
residence if no business address), telephone number and facsimile number of
such person(s):

 

	
  Address:

  
	
   

  
	
  Telephone:

  
	
   

  
	
  Fax:

  
	
   

  
	
  Name of Shareholders:

  
	
   

  

 

If you need more space for this response, please
attach additional sheets of paper. Please be sure to indicate your name and the
number of the item being responded to on each such additional sheet of paper,
and to sign each such additional sheet of paper before attaching it to this
Questionnaire. Please note that you may be asked to answer additional questions
depending on your responses to the following questions.

 

Plan of Distribution.

 

 

The
undersigned (including its donees or pledgees) intends to distribute the
Registrable Securities listed above in Item 3 pursuant to the Registration
Statement only as follows (if at all): Such Registrable Securities may be sold
from time to time directly by the undersigned or, alternatively, through
underwriters, broker-dealers or agents. If the Registrable Securities are sold
through underwriters, broker-dealers or agents, the Selling Securityholder will
be responsible for underwriting discounts or commissions or agents’
commissions. Such Registrable Securities may be sold in one or more
transactions at fixed prices, at prevailing market prices at the time of sale,
at varying prices determined at the time of sale or at negotiated prices. Such
sales may be effected in transactions (which may involve block transactions) (i) on
any national securities exchange or quotation service on which the Registrable
Securities may be listed or quoted at the time of sale, (ii) in the
over-the-counter market, or (iii) in transactions otherwise than on such
exchanges or services or in the over-the-counter market.

 

	
  DATED this        day of                        
  ,       

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature of Holder

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Print name)

  

 

 

EXHIBIT
D

 

December [  ], 2009

 

Dahlman
Rose & Company, LLC

As
Representative of the several

Underwriters referred to below

142
West 57th Street

New
York, New York 10019

Dahlman
Rose & Company, LLC

 

Golden Minerals Company Lock-Up Agreement

 

Ladies
and Gentlemen:

 

This
letter agreement (this “Agreement”) is being delivered pursuant to that certain
Purchase and Sale Agreement by and between Golden Minerals Company, a Delaware
corporation (the “Company”), certain subsidiaries of the Company, and MH
Argentina S.A., a sociedad anonima organized under
the laws of Argentina (the “Purchase and Sale Agreement”) and relates to the
proposed initial public offering (the “Offering”) by the Company, of its common
stock, $0.01 par value per share (the “Stock”).

 

In
order to induce you and the other underwriters for which you will act as
representative (the “Underwriters”) to underwrite the Offering, the undersigned
hereby agrees that, without the prior written consent of Dahlman Rose &
Company, LLC (the “Lead Manager”), during the period from the date hereof until
one hundred eighty (180) days from the date of the final prospectus for the
Offering (the “Lock-Up Period”), the undersigned (a) will not, directly or
indirectly, offer, sell, agree to offer or sell, solicit offers to purchase,
grant any call option or purchase any put option with respect to, pledge,
borrow or otherwise dispose of any Relevant Security (as defined below), and (b)
will not establish or increase any “put equivalent position” or liquidate or
decrease any “call equivalent position” with respect to any Relevant Security
(in each case within the meaning of Section 16 of the Securities Exchange Act
of 1934, as amended, and the rules and regulations promulgated thereunder), or
otherwise enter into any swap, derivative or other transaction or arrangement
that transfers to another, in whole or in part, any economic consequence of
ownership of a Relevant Security, whether or not such transaction is to be
settled by delivery of Relevant Securities, other securities, cash or other
consideration. As used herein “Relevant Security” means the Stock, any other
equity security of the Company or any of its subsidiaries and any security
convertible into, or exercisable or exchangeable for, any Stock or other such
equity security.

 

Notwithstanding
the preceding paragraph, if (1) during the last 17 days of the Lock-Up Period
the Company issues an earnings release or material news or a material event
relating to the Company occurs; or (2) prior to the expiration of the Lock-Up
Period the Company announces that it will release earnings results during the
16-day period beginning on the last day of the Lock-Up Period, the restrictions
imposed by the immediately preceding paragraph shall continue to apply until
the expiration of the 18-day period beginning on the issuance of the earnings
release or the occurrence of the material news or material event, as
applicable, unless the Lead Manager waives, in writing, such extension.  The undersigned acknowledges that the Company
has agreed in the underwriting agreement for the Offering to provide notice to
the undersigned of any event that would result in an extension of the Lock-Up
Period pursuant to this paragraph, and the undersigned agrees that any such
notice properly delivered will be deemed to have been given to, and received
by, the undersigned.

 

24

 

Notwithstanding
the foregoing, the undersigned may transfer all, but not less than all, of the
Relevant Securities to an Affiliate, provided, each resulting transferee of
Relevant Securities executes and delivers to you an agreement satisfactory to
you certifying that such transferee is bound by the terms of this Agreement and
has been in compliance with the terms hereof since the date first above written
as if it had been an original party hereto. 
For the purpose of this Agreement “Affiliate”
shall mean any other Person that directly or indirectly controls, is controlled
by or is under common control with such Person and “Person”
shall mean a natural person, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated
association, joint venture, governmental entity or other entity or
organization.

 

The
undersigned hereby authorizes the Company during the Lock-Up Period to cause
any transfer agent for the Relevant Securities to decline to transfer, and to
note stop transfer restrictions on the stock register and other records
relating to, Relevant Securities for which the undersigned is the record holder
and, in the case of Relevant Securities for which the undersigned is the
beneficial but not the record holder, agrees during the Lock-Up Period to cause
the record holder to cause the relevant transfer agent to decline to transfer,
and to note stop transfer restrictions on the stock register and other records
relating to, such Relevant Securities. 
The undersigned hereby further agrees that, without the prior written
consent of the Lead Manager, during the Lock-up Period the undersigned (x) will
not file or participate in the filing with the Securities and Exchange
Commission of any registration statement, or circulate or participate in the
circulation of any preliminary or final prospectus or other disclosure document
with respect to any proposed offering or sale of a Relevant Security and (y) will
not exercise any rights the undersigned may have to require registration with
the Securities and Exchange Commission of any proposed offering or sale of a
Relevant Security.

 

The
undersigned hereby represents and warrants that the undersigned has full power
and authority to enter into this Agreement and that this Agreement constitutes
the legal, valid and binding obligation of the undersigned, enforceable in
accordance with its terms.  Upon request,
the undersigned will execute any additional documents necessary in connection
with enforcement hereof.  Any obligations
of the undersigned shall be binding upon the successors and assigns of the
undersigned from the date first above written.

 

This
Agreement shall terminate and be of no further force and effect if the Offering
is not completed by March 31, 2009.

 

This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York.  Delivery of a signed
copy of this letter by facsimile transmission shall be effective as delivery of
the original hereof.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Print
  Name:

  	
   

  

 

25

 

EXHIBIT E

 

December [  ], 2009

 

Golden Minerals Company

350 Indiana Street, Suite 800

Golden, Colorado 80401

USA

 

Golden Minerals Company Standstill Agreement

 

Ladies
and Gentlemen:

 

This letter agreement
(this “Agreement”) is being delivered pursuant
to that certain Purchase and Sale Agreement (the “Purchase
Agreement”) by and between Golden Minerals Company, a Delaware
corporation (the “Golden Minerals”), Silex Spain,
S.L., Minera El Quevar S.A. and MH Argentina S.A. pursuant to which Golden
Minerals is issuing 400,000 shares of Golden Minerals common stock, US$0.01 par
value (“Common Stock”) and warrants to purchase
300,000 shares of Common Stock at an exercise price of US$15.00.

 

In order to induce Golden
Minerals to enter into the Purchase Agreement and to issue the shares of Common
Stock contemplated thereby, the undersigned hereby agrees that for a period of
two (2) years from the date hereof, without the prior consent of the board of
directors of Golden Minerals, the undersigned shall not, directly or indirectly
through any Affiliate, acquire or offer to acquire or agree to acquire
(including in the public markets) from any Person, directly or indirectly, by
purchase or merger, through the acquisition of control of another Person, by
joining a partnership, limited partnership or other “group” (within the meaning
of Section 13(d)(3) of the U.S. Securities Exchange Act of 1934) or otherwise
beneficial ownership of Common Stock if such acquisition would cause the
undersigned’s aggregate beneficial ownership of Common Stock of Golden Minerals
to exceed nineteen and nine tenths percent (19.90%) of the outstanding Common
Stock of Golden Minerals, or direct or indirect rights (including convertible
securities, warrants or options) to acquire such beneficial ownership (or
otherwise act in concert with respect to any such securities, rights or options
with any Person that so acquires, offers to acquire or agrees to acquire), provided, however,  that
no violation of this Agreement shall be deemed to have occurred solely due to
acquisitions resulting from (1) a stock split, reverse stock split,
reclassification or other transaction by Golden Minerals affecting any class of
the outstanding capital stock of Golden Minerals generally, (2) a stock
dividend or other pro rata distribution by Golden Minerals to holders of its
outstanding capital stock, or (3) any increase in the percentage ownership by
the undersigned of outstanding shares of Common Stock resulting from any action
taken by Golden Minerals, including the repurchase of shares of Common Stock
pursuant to any share repurchase or similar program; provided, further
that if the undersigned or its Affiliates shall become the beneficial owner of
more than nineteen and nine tenths percent (19.90%) of the outstanding Common
Stock of Golden Minerals in the aggregate as a result of any of the
transactions set forth in the preceding clause (1), (2) or (3), then for so
long as the undersigned’s beneficial ownership remains above such threshold,
the acquisition of additional shares of Common Stock by the undersigned or its
Affiliates (including direct or indirect rights to acquire Common Stock) shall
be prohibited by this Agreement.

 

26

 

For the purpose of this
Agreement “Affiliate” shall mean any other Person
that directly or indirectly controls, is controlled by or is under common
control with such Person.  “Person” shall mean a natural person, partnership,
corporation, limited liability company, business trust, joint stock company,
trust, unincorporated association, joint venture, governmental entity or other
entity or organization.

 

The undersigned hereby
represents and warrants that the undersigned has full power and authority to
enter into this Agreement and that this Agreement constitutes the legal, valid
and binding obligation of the undersigned, enforceable in accordance with its
terms.  Upon request, the undersigned
will execute any additional documents necessary in connection with enforcement
hereof.  Any obligations of the
undersigned shall be binding upon the successors and assigns of the undersigned
from the date first above written.

 

This Agreement shall be
governed by and construed in accordance with the laws of the State of New York.
The undersigned hereby submits to the non-exclusive jurisdiction of any court
of the State of New York or the United States District Court for the Southern
District of the State of New York for the purpose of any suit, action, or other
proceeding arising out of this Agreement, and waives any and all objections to
jurisdiction that it may have under the laws of the State of New York or the
United States and any claim or objection that any such court is an inconvenient
forum.  Delivery of a signed copy of this
letter by facsimile transmission shall be effective as delivery of the original
hereof.

 

[Signature
follow]

 

27

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Hochschild Mining PLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Golden
Minerals Company Standstill Agreement

 

28

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