Document:

Unassociated Document

     

    

    EXHIBIT
4.1

    

    UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE
NOVEMBER 16, 2009.

     

    THIS SECURITY HAS NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE ''SECURITIES
ACT''), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE
FOLLOWING SENTENCE.  BY ITS ACQUISITION HEREOF, THE HOLDER (1) AGREES
THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY,
EXCEPT (A) TO THE ISSUER; (B) TO PERSONS OTHER THAN U.S. PERSONS OUTSIDE THE
UNITED STATES IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT; (C)
PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 ADOPTED UNDER
THE SECURITIES ACT OR ANOTHER AVAILABLE EXEMPTION UNDER THE SECURITIES ACT (IF
AVAILABLE); OR (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, AND (2) AGREES THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS
SECURITY PURSUANT TO SUBPARAGRAPH (B) OR (C) ABOVE, FURNISH TO THE ISSUER OR
ISSUER'S COUNSEL SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY
BE REQUIRED BY THE ISSUER TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT
TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS ''UNITED STATES''
AND ''U.S. PERSON'' HAVE THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE
SECURITIES ACT. IN ANY CASE, THE HOLDER HEREOF WILL NOT, DIRECTLY OR INDIRECTLY,
ENGAGE IN ANY HEDGING TRANSACTION WITH REGARD TO THIS SECURITY, EXCEPT AS
PERMITTED BY THE SECURITIES ACT.

     

    THE OPTIONS REPRESENTED BY THIS
COMPENSATION OPTION CERTIFICATE HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT. THE SECURITIES TO BE ISSUED UPON EXERCISE OF SUCH OPTIONS
WILL NOT BE INITIALLY REGISTERED AND MAY OR MAY NOT LATER BECOME REGISTERED FOR
RESALE UNDER THE SECURITIES ACT.  NEITHER ANY OPTION REPRESENTED BY
THIS COMPENSATION OPTION CERTIFICATE NOR ANY SECURITIES ISSUED UPON EXERCISE OF
SUCH OPTION MAY BE EXERCISED BY OR ON BEHALF OF ANY U.S. PERSON, AS SUCH TERM IS
DEFINED IN REGULATION S PROMULGATED PURSUANT TO THE SECURITIES ACT, UNLESS
REGISTERED UNDER THE SECURITIES ACT OR AN EXEMPTION FROM SUCH REGISTRATION IS
AVAILABLE.

     

    COMPENSATION OPTION TO PURCHASE COMMON
SHARES OF

     

    APOLLO GOLD
CORPORATION

     

    
      	
              Compensation Option Certificate
      No.: 

            	CO-2009/01	 	
              No. of Common Shares under Option:
      1,292,496

            

    

    

     

    For value received, Apollo Gold
Corporation (the "Corporation") hereby grants to Haywood Securities Inc., Suite 2000-400
Burrard Street, Vancouver, BC V6C 3A6  Canada (the "Holder"), the right and option, subject to the
terms and conditions set forth in this compensation option certificate (the
"Compensation Option
Certificate"), to purchase
from the Corporation, up to 1,292,496 common shares of the Corporation (the
"Common
Shares") at an exercise
price of $0.45 per Common Share (the "Exercise
Price") at any time and from time to time up to
4:00 p.m. (Toronto time) on July 15, 2011 (the "Expiry
Time"), upon and subject to
the terms and conditions set forth herein.

     

    
      	
              1.

            	
              Definitions

            

    

     

    In this Compensation Option Certificate,
unless there is something in the subject matter or context inconsistent
therewith, the following terms shall have the following meanings
respectively:

     

    
      	
               
      

            	
              (a)

            	
              "AMEX" means the NYSE Amex
      LLC;

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              "Business
      Day" means any day
      other than a Saturday, Sunday, statutory or civic holiday or a day on
      which the principal banking institutions are closed in the City of
      Toronto, Ontario or the State of
  Colorado;

            

    

     

    
      	
               
      

            	
              (c)

            	
              "Current Market
      Price" of the Common
      Shares at any date means the price per Common Share equal to the weighted
      average price at which the Common Shares have traded on the TSX or, if the
      Common Shares are not then listed on the TSX, on such other Canadian stock
      exchange on which the Common Shares trade as may be selected by the
      directors of the Corporation for such purpose or, if the Common Shares are
      not then listed on any Canadian stock exchange, in the over-the-counter
      market, during the period of any twenty consecutive trading days ending
      not more than five (5) Business Days before such date; provided that the
      weighted average price shall be determined by dividing the aggregate sale
      price of all Common Shares sold on the said exchange or market, as the
      case may be, during the said twenty consecutive trading days by the total
      number of Common Shares so sold; and provided further that if the Common
      Shares are not then listed on any Canadian stock exchange or traded in the
      over-the counter market, then the Current Market Price shall be determined
      by such firm of independent chartered accountants as may be selected by
      the directors of the
Corporation;

            

    

     

    
      	
               
      

            	
              (d)

            	
              "Equity
      Shares" means the
      Common Shares and any shares of any other class or series of the
      Corporation which may from time to time be authorized for issue if by
      their terms such shares confer on the holders thereof the right to
      participate in the distribution of assets upon the voluntary or
      involuntary liquidation, dissolution or winding up of the Corporation
      beyond a fixed sum or a fixed sum plus accrued
      dividends;

            

    

     

    
      	
               
      

            	
              (e)

            	
              "Holder" means the registered holder of
      this Compensation Option Certificate or any additional Compensation Option
      Certificates issued by the Corporation pursuant to the terms
      hereof;

            

    

     

    
      	
               
      

            	
              (f)

            	
              "Options" means the compensation options
      to purchase Common Shares, having the attributes and issued pursuant to
      the terms and provisions set out
  hereunder;

            

    

     

    
      	
               
      

            	
              (g)

            	
              "person" is to be interpreted broadly and
      includes an individual, corporation, partnership, unincorporated
      syndicate, unincorporated organization, trust, trustee, executor,
      administrator or other legal representative or any group or combination
      thereof;

            

    

     

    
      	
               
      

            	
              (h)

            	
              "Subscription
      Form" means the form
      of subscription annexed hereto as Schedule
  "A";

            

    

     

    
      	
               
      

            	
              (i)

            	
              "Trading
      Day" means any day on
      which the Common Shares are listed and posted for trading on the TSX and
      such exchange is open for business or, if not listed and posted for
      trading on such exchange, on such stock exchange or quotation system on
      which the Common Shares are then listed and posted (or quoted) for trading
      and which is open for business, and, in each case, no cease trading or
      similar order is in effect with respect to the Common Shares;
      and

            

    

     

    
      	
               
      

            	
              (j)

            	
              "TSX" means the Toronto Stock
      Exchange.

            

    

     

    
      	
              2.

            	
              Expiry
      Time

            

    

     

    After the Expiry Time, all rights under
this Compensation Option Certificate and any outstanding Options evidenced
hereby, in respect of which the right of subscription and purchase herein
provided for shall not have been exercised, shall wholly cease and terminate and
this Compensation Option Certificate and the Options evidenced hereby shall be
void and of no value or effect.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
              3.

            	
              Exercise
      Procedure

            

    

     

    
      	
               
      

            	
              (a)

            	
              The Holder may exercise its right
      of purchase hereunder in whole or in part at any time at or prior to the
      Expiry Time by surrendering or delivering to the Corporation prior to the
      Expiry Time at its principal office in Colorado: (i) this Compensation
      Option Certificate together with the Subscription Form duly completed and
      executed by the Holder or its legal representative or attorney, duly
      appointed by an instrument in writing in form and manner satisfactory to
      the Corporation; and (ii) cash or a certified cheque, money order or bank
      draft payable to or to the order of the Corporation in an amount equal to
      the Exercise Price multiplied by the number of Common Shares for which
      subscription is being made.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Any Compensation Option
      Certificate, Subscription Form and cash, certified cheque, money order or
      bank draft referred to in the foregoing subsection 3(a) shall be deemed to
      be surrendered only upon delivery thereof to the Corporation at its
      principal office in the manner provided in Section 29
      hereof.

            

    

     

    
      	
              4.

            	
              Entitlement
      to Certificates

            

    

     

    Upon delivery and payment as provided
for in Section 3 above, the Corporation shall cause to be issued to the Holder
the Common Shares subscribed for and the Holder shall become a shareholder of
the Corporation in respect of such Common Shares purchased with effect from the
date of such delivery and payment and shall be entitled to delivery of a
certificate or certificates evidencing such Common Shares. The Corporation shall
cause such certificate or certificates to be issued and delivered to the Holder
at the address or addresses specified in the Subscription Form as soon as
practicable, but in any event, not later than seven (7) Business Days following
such delivery and payment.

     

    
      	
              5.

            	
              Assignment
      or Transfer of Compensation
Options

            

    

     

    The Options evidenced hereby may be
assigned or transferred by the Holder or exercised by or for the benefit of any
person other than the Holder.  The Options evidenced hereby may not be
exercised in the United States or by or on behalf of a U.S. Person or person in
the United States.  "United States" and "U.S. Person" are as defined
in Regulation S under the United States Securities Act of 1933, as
amended.

     

    
      	
              6.

            	
              Partial
      Exercise and Exchanges

            

    

     

    The Holder may subscribe for and
purchase a number of Common Shares which is less than the number it is entitled
to purchase pursuant to this Compensation Option Certificate. In the event of
any such subscription and purchase prior to the Expiry Time, the Holder shall
also be entitled to receive, without charge, a new Compensation Option
Certificate in respect of the balance of the Options to purchase Common Shares
to which it continues to be entitled pursuant to this Compensation Option
Certificate.

     

    This Compensation Option Certificate is
also exchangeable, without charge, from time to time, upon surrender hereof by
the Holder to the Corporation, for a new Compensation Option Certificate or
certificates of like tenor representing in the aggregate the same number of
Options under the Compensation Option Certificate so
surrendered.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
              7.

            	
              No
      Fractional Common Shares

            

    

     

    Notwithstanding any adjustment provided
for in Section 11 hereof, the Corporation shall not be required upon the
exercise of any Options to issue fractional Common Shares in satisfaction of its
obligations hereunder and the Holder understands and agrees that it will not be
entitled to any cash payment or other form of compensation in respect of a
fractional Common Share that might otherwise have been
issued.

     

    
      	
              8.

            	
              Not
      a Shareholder

            

    

     

    Nothing in this Compensation Option
Certificate or in the holding of the Options evidenced hereby shall be construed
as conferring upon the Holder any right or interest whatsoever as a shareholder
of the Corporation.

     

    
      	
              9.

            	
              No
      Obligation to Purchase

            

    

     

    Nothing herein contained or done
pursuant hereto shall obligate the Holder to purchase or pay for, or the
Corporation to issue, any Common Shares except those Common Shares in respect of
which the Holder shall have exercised its right to purchase in the manner
provided hereunder.

     

    
      	
              10.

            	
              Covenants

            

    

     

    
      	
               
      

            	
              (a)

            	
              The Corporation covenants that:
      (i) so long as any Options evidenced hereby remain outstanding, it shall
      reserve and there shall remain unissued out of its authorized capital a
      sufficient number of Common Shares to satisfy the right of purchase
      provided for herein; and (ii) all Common Shares which shall be issued upon
      the exercise of the right to purchase provided for herein, upon payment of
      the Exercise Price therefor, shall be issued as fully paid and
      non-assessable and free from all taxes, liens and charges with respect to
      the issue thereof, other than which may arise by virtue of the Holder's
      personal circumstances.

            

    

     

    
      	
               
      

            	
              (b)

            	
              While any Options evidenced hereby
      remain outstanding, the Corporation shall comply with the securities
      legislation applicable to it in order that the Corporation continue as a
      reporting issuer, or analogous entity, not in default of any requirements
      of such legislation.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The Corporation shall, at its
      expense, expeditiously use its commercially reasonable best efforts to
      obtain the listing on the TSX and the AMEX of the Common Shares issuable
      upon the exercise of the right to purchase provided for herein. The
      Corporation shall, at its expense, include the registration of the resale
      of the Common Shares underlying the Options in its registration statement
      (the "Registration
      Statement") filed in
      connection with the flow-through shares and common shares issued on the
      date of this Compensation Option Certificate, and, subject to the terms
      and conditions of the registration rights agreement, each dated July 15,
      2009 (the "Registration
      Rights Agreement"),
      between the Corporation and the subscriber counterparty thereto, shall use
      its commercially reasonable efforts to register the resale of the Common
      Shares underlying the Options in the United States as soon as possible so
      that the legend referred to in Section 27 (d) may be removed. The
      Corporation and the Holder agree to be bound by the terms of the
      Registration Rights Agreement as if they were original parties thereto,
      and the Holder agrees to complete and execute the Notice and Questionnaire
      prior to the Corporation including the Common Shares in the Registration
      Statement.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (d)

            	
              The Corporation shall use its
      commercially reasonable best efforts to do or cause to be done all things
      necessary to preserve and maintain its corporate
      existence.

            

    

     

    
      	
              11.

            	
              Adjustment
      to Exercise Price

            

    

     

    The rights of the Holder, including the
number of Common Shares issuable upon the exercise of each Option represented
hereby, will be adjusted from time to time upon the occurrence of the events and
in the manner provided in, and in accordance with the provisions of, this
Section.

     

    The Exercise Price in effect at any time
is subject to adjustment from time to time in the events and in the manner
provided as follows:

     

    
      	
               
      

            	
              (1)

            	
              If and whenever at any time after
      the date hereof the
Corporation:

            

    

     

    
      	
               
      

            	
              (a)

            	
              issues Common Shares or securities
      exchangeable for or convertible into Common Shares to all or substantially
      all the holders of the Common Shares as a stock
      dividend;

            

    

     

    
      	
               
      

            	
              (b)

            	
              makes a distribution on its
      outstanding Common Shares payable in Common Shares or securities
      exchangeable for or convertible into Common
  Shares;

            

    

     

    
      	
               
      

            	
              (c)

            	
              subdivides its outstanding Common
      Shares into a greater number of shares;
  or

            

    

     

    
      	
               
      

            	
              (d)

            	
              consolidates its outstanding
      Common Shares into a small number of
  shares;

            

    

     

    (any of such events being called a
"Common
Share Reorganization"),
then the Exercise Price will be adjusted effective immediately after the
effective date or record date for the happening of a Common Share
Reorganization, as the case may be, at which the holders of Common Shares are
determined for the purpose of the Common Share Reorganization by multiplying the
Exercise Price in effect immediately prior to such effective date or record date
by a fraction, the numerator of which is the number of Common Shares outstanding
on such effective date or record date before giving effect to such Common Share
Reorganization and the denominator of which is the number of Common Shares
outstanding immediately after giving effect to such Common Share Reorganization
(including, in the case where securities exchangeable for or convertible into
Common Shares are distributed, the number of Common Shares that would have been
outstanding had all such securities been exchanged for or converted into Common
Shares on such effective date or record date).

     

    
      	
               
      

            	
              (2)

            	
              If and whenever, at any time after
      the date hereof, the Corporation fixes a record date for the issue of
      rights, options or warrants to the holders of all or substantially all of
      its outstanding Common Shares under which such holders are entitled to
      subscribe for or purchase Common Shares or securities exchangeable for or
      convertible into Common Shares,
where:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the right to subscribe for or
      purchase Common Shares or the right to exchange securities for or convert
      securities into Common Shares, expires not more than 45 days after the
      date of such issue (the period from the record date to the date of expiry
      being herein in this Section 11(2) called the "Rights
      Period");
      and

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              the cost per Common Share during
      the Rights Period (inclusive of any cost of acquisition of securities
      exchangeable for or convertible into Common Shares in addition to any
      direct cost of Common Shares) (in this Section 11(2) called the
      "Per Share
      Cost") is less than
      95% of the Current Market Price of the Common Shares on the record
      date;

            

    

     

    (any of such events being called a
"Rights
Offering"), then the
Exercise Price will be adjusted effective immediately after the end of the
Rights Period to a price determined by multiplying the Exercise Price in effect
immediately prior to the end of the Rights Period by a
fraction:

     

    
      	
               
      

            	
              (i)

            	
              the numerator of which is the
      aggregate of:

            

    

     

    
      	
               
      

            	
              A.

            	
              the number of Common Shares
      outstanding as of the record date for the Rights Offering;
      and

            

    

     

    
      	
               
      

            	
              B.

            	
              a number determined by dividing
      the product of the Per Share Cost
and:

            

    

     

    
      	
               
      

            	
              (I)

            	
              where the event giving rise to the
      application of this subsection 11(2) was the issue of rights, options or
      warrants to the holders of Common Shares under which such holders are
      entitled to subscribe for or purchase additional Common Shares, the number
      of Common Shares so subscribed for or purchased during the Rights Period;
      or

            

    

     

    
      	
               
      

            	
              (II)

            	
              where the event giving rise to the
      application of this subsection 11(2) was the issue of rights, options or
      warrants to the holders of Common Shares under which such holders are
      entitled to subscribe for or purchase securities exchangeable for or
      convertible into Common Shares, the number of Common Shares for which
      those securities so subscribed for or purchased during the Rights Period
      could have been exchanged or into which they could have been converted
      during the Rights Period,

            

    

     

    by the Current Market Price of the
Common Shares as of the record date for the Rights Offering;
and

     

    
      	
               
      

            	
              (ii)

            	
              the denominator of which
      is:

            

    

     

    
      	
               
      

            	
              A.

            	
              in the case described in
      subparagraph 11(2)(i)(B)(I), the number of Common Shares outstanding;
      or

            

    

     

    
      	
               
      

            	
              B.

            	
              in the case described in
      subparagraph 11(2)(i)(B)(II), the number of Common Shares that would be
      outstanding if all the Common Shares described in subparagraph
      11(2)(i)(B)(II) had been issued, as at the end of the Rights
      Period.

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    Any Common Shares owned by or held for
the account of the Corporation or any subsidiary or affiliate (as such terms are
defined in the Securities
Act (Ontario)) of the
Corporation will be deemed not to be outstanding for the purpose of any such
computations.

     

    If by the terms of the rights, options
or warrants referred to in this Section 11(2), there is more than one purchase,
conversion or exchange price per Common Share, the aggregate price of the total
number of additional Common Shares offered for subscription or purchase, or the
aggregate conversion or exchange price of the convertible securities so offered,
will be calculated for purposes of the adjustment on the basis
of:

     

    
      	
               
      

            	
              (i)

            	
              the lowest purchase, conversion or
      exchange price per Common Share, as the case may be, if such price is
      applicable to all Common Shares which are subject to the rights, options
      or warrants; and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the average purchase, conversion
      or exchange price per Common Share, as the case may be, if the applicable
      price is determined by reference to that number of Common Shares
      acquired.

            

    

     

    To the extent that any adjustment in the
Exercise Price occurs pursuant to this Section 11(2) as a result of the fixing
by the Corporation of a record date for the distribution of rights, options or
warrants referred to in this Section 11(2), the Exercise Price will be
readjusted immediately after the expiration of any relevant exchange, conversion
or exercise right to the Exercise Price which would then be in effect based upon
the number of Common Shares actually issued and remaining issuable after such
expiration and will be further readjusted in such manner upon expiration of any
further such right.

     

    If the Holder has exercised this
Compensation Option Certificate in accordance herewith during the period
beginning after the record date for a Rights Offering and ending on the last day
of the Rights Period thereunder, the Holder will, in addition to the Common
Shares to which it is otherwise entitled upon such exercise, be entitled to that
number of additional Common Shares equal to the difference, if any, between (x)
the result obtained when the Exercise Price in effect immediately prior to the
end of such Rights Offering pursuant to this subsection is multiplied by the
number of Common Shares received upon the exercise of the Options represented by
this Compensation Option Certificate during such period, and the resulting
product is divided by the Exercise Price as adjusted for such Rights Offering
pursuant to this subsection provided that the provisions of Section 7 will be
applicable to any fractional interest in a Common Share to which such Holder
might otherwise be entitled and (y) the number of Common Shares received upon
the exercise of the Options represented by this Compensation Option Certificate
during such period. Such additional Common Shares will be deemed to have been
issued to the Holder immediately following the end of the Rights Period and a
certificate for such additional Common Shares will be delivered to such Holder
within ten (10) Business Days following the end of the Rights
Period.

     

    
      	
               
      

            	
              (3)

            	
              If and whenever at any time after
      the date hereof, the Corporation fixes a record date for the issue or the
      distribution to the holders of all or substantially all its Common Shares
      of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              shares of the Corporation of any
      class other than Common
Shares;

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (ii)

            	
              rights, options or warrants to
      acquire shares or securities exchangeable for or convertible into shares
      or property or other assets of the Corporation (other than a right to
      subscribe for or purchase Common Shares or a right to exchange securities
      for or convert securities into Common Shares which expires not more than
      45 days after the date of such issue and the cost per Common Share during
      such period (inclusive of any cost of acquisition of securities
      exchangeable for or convertible into Common Shares in addition to any
      direct cost of Common Shares) is at least 95% of the Current Market Price
      of the Common Shares on the record
date);

            

    

     

    
      	
               
      

            	
              (iii)

            	
              evidence of indebtedness;
      or

            

    

     

    
      	
               
      

            	
              (iv)

            	
              any property or other
      assets,

            

    

     

    and if such issuance or distribution
does not constitute a Common Share Reorganization or a Rights Offering (any of
such non-excluded events being called a "Special
Distribution"), the
Exercise Price will be adjusted effective immediately after such record date to
a price determined by multiplying the Exercise Price in effect on such record
date by a fraction:

    
       

      
        	
                 
      

              	
                (i)

              	the numerator of which
is:

      

       

    

    
      	
               
      

            	
              A.

            	
              the product of the number of
      Common Shares outstanding on such record date and the Current Market Price
      of the Common Shares on such record date;
  less

            

    

     

    
      	
               
      

            	
              B.

            	
              the aggregate fair market value
      (as determined by action by the auditors of the Corporation) to the
      holders of the Common Shares of such securities or property or other
      assets so issued or distributed in the Special Distribution;
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the denominator of which is the
      number of Common Shares outstanding on such record date multiplied by the
      Current Market Price of the Common Shares on such record
      date.

            

    

     

    Any Common Shares owned by or held for
the account of the Corporation or any subsidiary or affiliate (as such terms are
defined in the Securities
Act (Ontario)) of the
Corporation will be deemed not to be outstanding for the purpose of any such
computation.

     

    
      	
               
      

            	
              (4)

            	
              If and whenever at any time after
      the date hereof there is a Common Share Reorganization, a Rights Offering,
      a Special Distribution, a reclassification of the Common Shares
      outstanding at any time or change of the Common Shares into other shares
      or into other securities (other than a Common Share Reorganization), or a
      consolidation, amalgamation or merger of the Corporation with or into any
      other corporation or other entity (other than a consolidation,
      amalgamation or merger which does not result in any reclassification of
      the outstanding Common Shares or a change of the Common Shares into other
      shares), or a transfer of the undertaking or assets of the Corporation as
      an entirety or substantially as an entirety to another corporation or
      other entity (any of such events being called a "Capital
      Reorganization"), the
      Holder, upon exercising the Options represented by this Compensation
      Option Certificate after the effective date of such Capital
      Reorganization, will be entitled to receive in lieu of the number of
      Common Shares to which such Holder was theretofore entitled upon such
      exercise, the aggregate number of Common Shares, other securities or other
      property which such Holder would have been entitled to receive as a result
      of such Capital Reorganization if, on the effective date thereof, the
      Holder had been the registered holder of the number of Common Shares to
      which such Holder was therefore entitled upon exercise of the Options
      represented by this Compensation Option Certificate. If determined
      appropriate by action of the directors of the Corporation, appropriate
      adjustments will be made as a result of any such Capital Reorganization in
      the application of the provisions set forth in this Section 11(4) with
      respect to the rights and interests thereafter of the Holder to the end
      that the provisions set forth in this Section 11(4) will thereafter
      correspondingly be made applicable as nearly as may reasonably be in
      relation to any shares, other securities or other property thereafter
      deliverable upon the exercise hereof. Any such adjustment must be made by
      and set forth in an amendment to this Compensation Option Certificate
      approved by action by the directors of the Corporation and will for all
      purposes be conclusively deemed to be an appropriate
      adjustment.

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (5)

            	
              If at any time after the date
      hereof and prior to the Expiry Time any adjustment in the Exercise Price
      shall occur as a result of:

            

    

     

    
      	
               
      

            	
              (a)

            	
              an event referred to in subsection
      11(1);

            

    

     

    
      	
               
      

            	
              (b)

            	
              the fixing by the Corporation of a
      record date for an event referred to in subsection 11(2);
      or

            

    

     

    
      	
               
      

            	
              (c)

            	
              the fixing by the Corporation of a
      record date for an event referred to in subsection 11(3) if such event
      constitutes the issue or distribution to the holders of all or
      substantially all of its outstanding Common Shares of: (A) Equity Shares,
      or (B) securities exchangeable for or convertible into Equity Shares at an
      exchange or conversion price per Equity Share less than 95% of the Current
      Market Price on such record date, or (C) rights, options or warrants to
      acquire Equity Shares at an exercise, exchange or conversion price per
      Equity Share less than 95% of the Current Market Price on such record
      date,

            

    

     

    then the number of Common Shares
purchasable upon the subsequent exercise of the Options represented by this
Compensation Option Certificate shall be simultaneously adjusted by multiplying
the number of Common Shares purchasable upon the exercise of the Options
represented by this Compensation Option Certificate immediately prior to such
adjustment by a fraction which shall be the reciprocal of the fraction employed
in the adjustment of the Exercise Price. To the extent any adjustment in
subscription rights occurs pursuant to this subsection 11(5) as a result of a
distribution of exchangeable or convertible securities other than Equity Shares
referred to in subsection 11(1) or as a result of the fixing by the Corporation
of a record date for the distribution of rights, options or warrants referred to
in subsection 11(2), the number of Common Shares purchasable upon exercise
of the Options represented by this Compensation Option Certificate shall be
readjusted immediately after the expiration of any relevant exchange, conversion
or exercise right to the number of Common Shares actually issued and remaining
issuable immediately after such expiration and shall be further readjusted in
such manner upon expiration of any further such right. To the extent that any
adjustment in subscription rights occurs pursuant to this subsection 11(5) as a
result of the fixing by the Corporation of a record date for the distribution of
exchangeable or convertible securities other than Equity Shares or rights,
options or warrants referred to in subsection 11(3), the number of Common Shares
purchasable upon exercise of the Options represented by this Compensation Option
Certificate shall be readjusted immediately after the expiration of any relevant
exchange, conversion or exercise right to the number which would be purchasable
pursuant to this subsection 11(5) if the fair market value of such securities or
such rights, options or warrants had been determined for purposes of the
adjustment pursuant to this subsection 11(5) on the basis of the number of
Equity Shares issued and remaining issuable immediately after such expiration
and shall be further readjusted in such manner upon expiration of any further
such right.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (6)

            	
              If at any time any adjustment or
      readjustment in the Exercise Price shall occur pursuant to the provisions
      of this Section 11, then the number of Common Shares purchasable upon the
      subsequent exercise of the Options shall be simultaneously adjusted or
      readjusted, as the case may be, by multiplying the number of Common Shares
      purchasable upon the exercise of the Options immediately prior to such
      adjustment or readjustment by a fraction which shall be the reciprocal of
      the fraction used in the adjustment or readjustment of the Exercise
      Price.

            

    

     

    
      	
              12.

            	
              Rules
      Regarding Calculation of
Adjustments

            

    

     

    The following rules and procedures shall
be applicable to adjustments made pursuant to Section 11
herein:

     

    
      	
               
      

            	
              (1)

            	
              The adjustments provided for in
      Section 11 are cumulative and will, in the case of adjustments to the
      Exercise Price, be computed to the nearest one-tenth of one cent and will
      be made successively whenever an event referred to therein occurs, subject
      to the following subsections of this Section
  12.

            

    

     

    
      	
               
      

            	
              (2)

            	
              No adjustment in the Exercise
      Price is required to be made unless such adjustment would result in a
      change of at least 1% in the prevailing Exercise Price; provided, however,
      that any adjustment which, except for the provisions of this subsection,
      would otherwise have been required to be made, will be carried forward and
      taken into account in any subsequent
  adjustments.

            

    

     

    
      	
               
      

            	
              (3)

            	
              No adjustment in the Exercise
      Price will be made in respect of any event described in Section 11, other
      than the events referred to in clauses 11(1)(c) and (d), if the Holder is
      entitled to participate in such event on the same terms, mutatis
      mutandis, as if the
      Holder had exercised the Options evidenced hereby prior to or on the
      effective date or record date of such event. Any participation by a Holder
      pursuant to this Section 12(3) is subject to the prior approval of the TSX
      (or such other stock exchange or quotation system on which the Common
      Shares are then listed and posted (or quoted) for trading, as
      applicable).

            

    

     

    
      	
               
      

            	
              (4)

            	
              No adjustment in the Exercise
      Price will be made under Section 11 in respect of the issue from time to
      time of Common Shares issuable from time to time as dividends paid in the
      ordinary course to holders of Common Shares who exercise an option or
      election to receive substantially equivalent dividends in Common Shares in
      lieu of receiving a cash dividend and any such issue will be deemed not to
      be a Common Share
Reorganization.

            

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (5)

            	
              If at any time a dispute arises
      with respect to adjustments provided for in Section 11, such dispute will
      be conclusively determined by the auditors of the Corporation or if they
      are unable or unwilling to act, by such other firm of independent
      chartered accountants as may be selected by the directors of the
      Corporation and approved by the Holder, acting reasonably, and any such
      determination, absent manifest error, will be binding upon the
      Corporation, the Holder and shareholders of the Corporation. The
      Corporation will provide such auditors or accountants with access to all
      necessary records of the
Corporation.

            

    

     

    
      	
               
      

            	
              (6)

            	
              In case the Corporation, after the
      date of issue of this Compensation Option Certificate, takes any action
      affecting the Common Shares, other than an action described in Section 11,
      which in the opinion of the directors of the Corporation would materially
      affect the rights of the Holder, the Exercise Price will be adjusted in
      such manner, if any, and at such time, by action by the directors of the
      Corporation but subject in all cases to any necessary regulatory approval,
      including approval of the TSX. Failure of the taking of action by the
      directors of the Corporation so as to provide for an adjustment on or
      prior to the effective date of any action by the Corporation affecting the
      Common Shares will be conclusive evidence that the board of directors of
      the Corporation has determined that it is equitable to make no adjustment
      in the circumstances.

            

    

     

    
      	
               
      

            	
              (7)

            	
              If the Corporation sets a record
      date to determine the holders of the Common Shares for the purpose of
      entitling them to receive any dividend or distribution or sets a record
      date to take any other action and, thereafter and before the distribution
      to such shareholders of any such dividend or distribution or the taking of
      any other action, decides not to implement its plan or pay or deliver such
      dividend or distribution or take such other action, then no adjustment in
      the Exercise Price will be required by reason of the setting of such
      record date.

            

    

     

    
      	
               
      

            	
              (8)

            	
              In the absence of a resolution of
      the directors of the Corporation fixing a record date for a Special
      Distribution or Rights Offering, the Corporation will be deemed to have
      fixed as the record date therefor the date on which the Special
      Distribution or Rights Offering is
  effected.

            

    

     

    
      	
               
      

            	
              (9)

            	
              As a condition precedent to the
      taking of any action which would require any adjustment to the Options
      evidenced hereby, including the Exercise Price, the Corporation must take
      any corporate action which may be necessary in order that the Corporation
      shall have unissued and reserved in its authorized capital and may validly
      and legally issue as fully paid and non-assessable all of the shares or
      other securities which the Holder is entitled to receive on the full
      exercise thereof in accordance with the provisions
      hereof.

            

    

     

    
      	
               
      

            	
              (10)

            	
              The Corporation will from time to
      time, within 10 Business Days after the occurrence of any event which
      requires an adjustment or readjustment as provided in Section 11, give
      notice to the Holder specifying the event requiring such adjustment or
      readjustment and the results thereof, including the resulting Exercise
      Price.

            

    

     

    
      	
               
      

            	
              (11)

            	
              Any adjustment to the Exercise
      Price under the terms of this Compensation Option Certificate shall be
      subject to the prior approval of the TSX and such other stock exchange or
      quotation system on which the Common Shares are then listed and posted (or
      quoted) for trading, as
applicable.

            

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    
      	
              13.

            	
              Consolidation
      and Amalgamation

            

    

     

    
      	
               
      

            	
              (1)

            	
              The Corporation shall not enter
      into any transaction whereby all or substantially all of its undertaking,
      property and assets would become the property of any other corporation or
      entity (herein called a "successor
      corporation") whether
      by way of reorganization, reconstruction, consolidation, amalgamation,
      merger, transfer, sale, disposition or otherwise, unless prior to or
      contemporaneously with the consummation of such transaction the
      Corporation and the successor corporation shall have executed such
      instruments and done such things as, in the opinion of counsel to the
      Corporation, are necessary or advisable to establish that upon the
      consummation of such
transaction:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the successor corporation will
      have assumed all the covenants and obligations of the Corporation under
      this Compensation Option Certificate;
and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              this Compensation Option
      Certificate will be a valid and binding obligation of the successor
      corporation entitling the Holder, as against the successor corporation, to
      all the rights of the Holder under this Compensation Warrant
      Certificate.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Whenever the conditions of
      subsection 13(1) shall have been duly observed and performed, the
      successor corporation shall possess and from time to time may exercise
      each and every right and power of the Corporation under this Compensation
      Option Certificate in the name of the Corporation or otherwise and any act
      or proceeding by any provision hereof required to be done or performed by
      any director or officer of the Corporation may be done and performed with
      like force and effect by the like directors or officers of the successor
      corporation.

            

    

     

    
      	
              14.

            	
              Representations
      and Warranties

            

    

     

    The Corporation hereby represents and
warrants with and to the Holder that the Corporation is duly authorized and has
the corporate and lawful power and authority to create and issue the Options
evidenced hereby and the Common Shares issuable upon the exercise hereof, and to
perform its obligations hereunder and that this Compensation Option Certificate
represents a valid, legal and binding obligation of the Corporation enforceable
in accordance with its terms subject to bankruptcy, insolvency and other laws of
general application affecting the rights of creditors and equitable remedies
being in the discretion of the court.

     

    
      	
              15.

            	
              Acquisition
      of the Securities

            

    

     

    The Holder hereby represents, warrants
and certifies to the Corporation that the securities represented by this
Compensation Option Certificate, and the Common Shares issuable upon exercise
thereof, are being acquired solely for its own account and not as a nominee for
any other party and not with a view toward the resale or distribution thereof
and that it will not offer, sell or otherwise dispose of the Compensation Option
Certificate or the Common Shares issuable upon exercise thereof except under
circumstances which will not result in a violation of any applicable securities
laws in Canada, the United States and other applicable securities laws or the
rules of the TSX or AMEX.  In addition, the Holder hereby represents,
warrants and certifies to the Corporation that the Holder: (i) at the time of
receipt of this Compensation Option Certificate is not in the United States;
(ii) is not a U.S. Person and is not receiving this Compensation Option
Certificate for the account or benefit of a U.S. Person; (iii) did not execute
or deliver this Option Compensation Certificate while within the United States;
(iv) has not and will not engage in any hedging transaction with respect to the
Options or the Common Shares, except as permitted by the United States
Securities Act of 1933, as amended (the "U.S. Securities
Act"); and (v) has in all
other respects complied with the terms of Regulation S of the US Securities Act
or any successor rule or regulation of the United States Securities and Exchange
Commission as presently in effect.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      	
              16.

            	
              If
      Share Transfer Books Closed

            

    

     

    The Corporation shall not be required to
deliver certificates for Common Shares while the share transfer books of the
Corporation are properly closed prior to any meeting of shareholders, for the
payment of dividends or for any other purpose and in the event of the surrender
of any Compensation Option Certificate in accordance with the provisions hereof
and the making of any subscription and payment for Common Shares called for
thereby during any such period, delivery of certificates for Common Shares may
be postponed for not more than five (5) Business Days after the date of the
re-opening of said share transfer books. Any such postponement of delivery of
certificates shall be without prejudice to the right of the Holder, if the
Holder has surrendered the same and made payment during such period, to receive
certificates for the Common Shares called for after the share transfer books
have been re-opened.

     

    
      	
              17.

            	
              Stolen,
      Lost, Mutilated or Destroyed
Certificate

            

    

     

    If this Compensation Option Certificate
is stolen, lost, mutilated or destroyed, the Corporation shall, on such terms as
it shall in its discretion impose, issue and countersign a new Compensation
Option Certificate of like denomination, tenor and date as the certificate so
stolen, lost, mutilated or destroyed.

     

    
      	
              18.

            	
              Governing
      Law

            

    

     

    This Compensation Option Certificate
shall be governed by and construed in accordance with the laws of the Province
of Ontario and the federal laws of Canada applicable therein, regardless of the
laws that might otherwise govern under applicable principles of conflicts of
laws thereof, except to the extent mandatorily governed by the law of another
jurisdiction. Each of the Holder and the Corporation: (i) irrevocably consents
to the exclusive jurisdiction and venue of the Courts of Ontario in connection
with any matter or dispute based upon or arising out of this Compensation Option
Certificate or the matters contemplated herein; (ii) agrees that process may be
served upon them in any manner authorized by the laws of the Province of Ontario
for such persons; and (iii) waives and covenants not to assert or plead any
objection which they might otherwise have to such jurisdiction, venue and such
process.

     

    
      	
              19.

            	
              Severability

            

    

     

    If any one or more of the provisions or
parts thereof contained in this Compensation Option Certificate should be or
become invalid, illegal or unenforceable in any respect in any jurisdiction, the
remaining provisions or parts thereof contained herein shall be and shall be
conclusively deemed to be, as to such jurisdiction, severable therefrom
and:

     

    
      	
               
      

            	
              (a)

            	
              the validity, legality or
      enforceability of such remaining provisions or parts thereof shall not in
      any way be affected or impaired by the severance of the provisions or
      parts thereof severed; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              the invalidity, illegality or
      unenforceability of any provision or part thereof contained in this
      Compensation Option Certificate in any jurisdiction shall not affect or
      impair such provision or part thereof or any other provisions of this
      Compensation Option Certificate in any other
      jurisdiction.

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      	
              20.

            	
              Headings

            

    

     

    The headings of the sections,
subsections, clauses and subclauses of this Compensation Option Certificate have
been inserted for convenience and reference only and do not define, limit, alter
or enlarge the meaning of any provision of this Compensation Option
Certificate.

     

    
      	
              21.

            	
              Compensation
      Options Rank Pari Passu

            

    

     

    All Options shall rank pari
passu, whatever may be the
actual date of issue of the same.

     

    
      	
              22.

            	
              Numbering
      of Articles, etc.

            

    

     

    Unless otherwise stated, a reference
herein to a numbered or lettered section, subsection, clause, subclause or
schedule refers to the section, subsection, clause, subclause or schedule
bearing that number or letter in this Compensation Option
Certificate.

     

    
      	
              23.

            	
              Number
      and Gender

            

    

     

    Whenever used in this Compensation
Option Certificate, words importing the singular number only shall include the
plural and vice
versa and words importing
gender shall include all genders.

     

    
      	
              24.

            	
              Day
      Not a Business Day

            

    

     

    In the event that any day on or before
which any action is required to be taken hereunder is not a Business Day then
such action shall be required to be taken on or before the requisite time on the
next day that is a Business Day.

     

    
      	
              25.

            	
              TSX
      and AMEX Approvals

            

    

     

    Notwithstanding anything to the contrary
in this Compensation Option Certificate, no supplement or amendment to the terms
of this Compensation Option Certificate may be made without the prior written
approval of the TSX and AMEX and such other stock exchange or quotation system
on which the Common Shares are then listed and posted (or quoted) for trading,
as applicable.

     

    
      	
              26.

            	
              Binding
      Effect

            

    

     

    This Compensation Option Certificate and
all of its provisions shall enure to the benefit of the Holder and its
successors and shall be binding upon the Corporation and its
successors.

     

    
      	
              27.

            	
              Legends

            

    

     

    
      	
              (a)

            	
              The Holder acknowledges that any
      certificate representing Common Shares issued upon the exercise of this
      Compensation Option Certificate prior to the date which is four months and
      one day after the date hereof will bear the following
      legend:

            

    

     

    "UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE
NOVEMBER 16, 2009."

     

    provided that at any time subsequent to
the date which is four months and one day after the date hereof any certificate
representing such Common Shares may be exchanged for a certificate bearing no
such legends.  The Corporation hereby covenants and agrees that it
will use the best efforts thereof to deliver or to cause to be delivered a
certificate or certificates representing such Common Shares bearing no such
legends within three Business Days after receipt of the legended
certificate.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    
      	
              (b)

            	
              The Holder acknowledges that the
      certificates representing the Common Shares and all certificates issued in
      exchange or substitution thereof, will bear a legend in substantially the
      following form as long as the legend referred to in subsection 27(a)
      remains on such certificate:

            

    

     

    
      	
               
      

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

            

    

     

    
      	
              (c)

            	
              The Holder further acknowledges
      that any certificate representing Common Shares issued upon the exercise
      of this Compensation Option Certificate and all certificates issued in
      exchange or substitution thereof will bear the following
      legend:

            

    

     

    
      	
               
      

            	
              "UNTIL THE SEPARATION TIME (AS
      DEFINED IN THE RIGHTS AGREEMENT REFERRED TO BELOW), THIS CERTIFICATE ALSO
      EVIDENCES AND ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS AS SET FORTH IN
      A SHAREHOLDER RIGHTS PLAN AGREEMENT, DATED AS OF THE 17TH DAY OF JANUARY,
      2007 (THE "RIGHTS AGREEMENT"), BETWEEN THE CORPORATION AND CIBC MELLON
      TRUST COMPANY, AS RIGHTS AGENT, THE TERMS OF WHICH ARE HEREBY INCORPORATED
      HEREIN BY REFERENCE AND A COPY OF WHICH MAY BE INSPECTED DURING NORMAL
      BUSINESS HOURS AT THE PRINCIPAL EXECUTIVE OFFICES OF THE
      CORPORATION.  UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE
      RIGHTS AGREEMENT, SUCH RIGHTS MAY BE TERMINATED, MAY EXPIRE, MAY BECOME
      VOID (IF, IN CERTAIN CASES, THEY ARE "BENEFICIALLY OWNED" BY AN "ACQUIRING
      PERSON", AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT, WHETHER
      CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR ANY SUBSEQUENT HOLDER) OR
      MAY BE EVIDENCED BY SEPARATE CERTIFICATES AND MAY NO LONGER BE EVIDENCED
      BY THIS CERTIFICATE.  THE CORPORATION WILL MAIL OR ARRANGE FOR
      THE MAILING OF A COPY OF THE RIGHTS AGREEMENT TO THE HOLDER OF THIS
      CERTIFICATE WITHOUT CHARGE AS SOON AS IS PRACTICABLE AFTER THE RECEIPT OF
      A WRITTEN REQUEST THEREFOR."

            

    

     

    
      	
              (d)

            	
              In addition, the Holder
      acknowledges that any certificate representing Common Shares issued upon
      the exercise of this Compensation Option Certificate will bear the
      following legend:

            

    

     

    
      	
               
      

            	
              "THIS SECURITY HAS NOT BEEN
      REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
      ''SECURITIES ACT''), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS
      SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER
      (1) AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THE SECURITY
      EVIDENCED HEREBY, EXCEPT (A) TO THE ISSUER; (B) TO PERSONS OTHER THAN U.S.
      PERSONS OUTSIDE THE UNITED STATES IN COMPLIANCE WITH REGULATION S UNDER
      THE SECURITIES ACT; (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION
      PROVIDED BY RULE 144 ADOPTED UNDER THE SECURITIES ACT OR ANOTHER AVAILABLE
      EXEMPTION UNDER THE SECURITIES ACT (IF AVAILABLE); OR (D) PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND (2) AGREES
      THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY PURSUANT TO
      SUBPARAGRAPH (B) OR (C) ABOVE, FURNISH TO THE ISSUER OR ISSUER'S COUNSEL
      SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE
      REQUIRED BY THE ISSUER TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
      PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
      REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS
      ''UNITED STATES'' AND ''U.S. PERSON'' HAVE THE MEANING GIVEN TO THEM BY
      REGULATION S UNDER THE SECURITIES ACT. IN ANY CASE, THE HOLDER HEREOF WILL
      NOT, DIRECTLY OR INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTION WITH REGARD
      TO THIS SECURITY, EXCEPT AS PERMITTED BY THE SECURITIES
      ACT."

            

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      	
              28.

            	
              Currency

            

    

     

    All references herein to monetary
amounts are references to lawful money of Canada, unless otherwise specified
herein.

     

    
      	
              29.

            	
              Notice

            

    

     

    Any notice, document or other
communication required or permitted by this Compensation Option Certificate to
be given by the Holder or the Corporation shall be in writing and is
sufficiently given if delivered personally, or if delivered or if transmitted by
any form of recorded telecommunication tested prior to transmission, to such
person addressed as follows:

     

    
      	
               
      

            	
              (a)

            	
              if to the
      Holder:

            

    

     

    to the address on the face page
hereof

     

    
      	
               
      

            	
              (b)

            	
              if to the
      Corporation:

            

    

     

    Apollo Gold
Corporation

    5655 S. Yosemite Street, Suite
200

    Greenwood Village, Colorado,
80111-3220

     

    
      	
               
      

            	
              Attention:

            	
              Chief Financial
      Officer

            

    

     

    
      	
               
      

            	
              Telephone
    No.:

            	
              (720)
    886-9656

            

    

     

    
      	
               
      

            	
              Facsimile
    No.:

            	
              (720)
    482-0957

            

    

     

    Notice so delivered shall be deemed to
have been given on the Business Day that it is received.  Notices
transmitted by a form of recorded telecommunication shall be deemed given on the
day of transmission.  The Holder or the Corporation may from time to
time notify the other in the manner provided herein of any change of address or
facsimile number which thereafter, until changed by like notice, shall be the
address or facsimile number of such person for all purposes
hereof.

     

    
      	
              30.

            	
              Time
      of Essence

            

    

     

    Time shall be of the essence
hereof.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    IN WITNESS
WHEREOF, the Corporation has caused this
Compensation Option Certificate to be signed by its duly authorized officer
this 15th day of July, 2009.

     

    
      
        	 	      
                APOLLO GOLD
      CORPORATION

              	 
	 	 	 	 
	
              	
                Per:

              	/s/
      R. David Russell	 
	 	 	      
                Authorized
      Signatory

              	 

      

    

    
    

     

    
      
         

      

      
        17Unassociated Document

     

    EXHIBIT
4.2

    

    UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE
NOVEMBER 16, 2009.

     

    THIS SECURITY HAS NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE ''SECURITIES
ACT''), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE
FOLLOWING SENTENCE.  BY ITS ACQUISITION HEREOF, THE HOLDER (1) AGREES
THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY,
EXCEPT (A) TO THE ISSUER; (B) TO PERSONS OTHER THAN U.S. PERSONS OUTSIDE THE
UNITED STATES IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT; (C)
PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 ADOPTED UNDER
THE SECURITIES ACT OR ANOTHER AVAILABLE EXEMPTION UNDER THE SECURITIES ACT (IF
AVAILABLE); OR (D) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, AND (2) AGREES THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS
SECURITY PURSUANT TO SUBPARAGRAPH (B) OR (C) ABOVE, FURNISH TO THE ISSUER OR
ISSUER'S COUNSEL SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY
BE REQUIRED BY THE ISSUER TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT
TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS ''UNITED STATES''
AND ''U.S. PERSON'' HAVE THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE
SECURITIES ACT. IN ANY CASE, THE HOLDER HEREOF WILL NOT, DIRECTLY OR INDIRECTLY,
ENGAGE IN ANY HEDGING TRANSACTION WITH REGARD TO THIS SECURITY, EXCEPT AS
PERMITTED BY THE SECURITIES ACT.

     

    THE OPTIONS REPRESENTED BY THIS
COMPENSATION OPTION CERTIFICATE HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE SECURITIES ACT. THE SECURITIES TO BE ISSUED UPON EXERCISE OF SUCH OPTIONS
WILL NOT BE INITIALLY REGISTERED AND MAY OR MAY NOT LATER BECOME REGISTERED FOR
RESALE UNDER THE SECURITIES ACT.  NEITHER ANY OPTION REPRESENTED BY
THIS COMPENSATION OPTION CERTIFICATE NOR ANY SECURITIES ISSUED UPON EXERCISE OF
SUCH OPTION MAY BE EXERCISED BY OR ON BEHALF OF ANY U.S. PERSON, AS SUCH TERM IS
DEFINED IN REGULATION S PROMULGATED PURSUANT TO THE SECURITIES ACT, UNLESS
REGISTERED UNDER THE SECURITIES ACT OR AN EXEMPTION FROM SUCH REGISTRATION IS
AVAILABLE.

     

    COMPENSATION OPTION TO PURCHASE COMMON
SHARES OF

     

    APOLLO GOLD
CORPORATION

    
       

      
        	
                Compensation Option Certificate
      No.: 

              	CO-2009/02	 	
                      
                  No. of Common Shares under Option:
      274,166

                

              

      

       

    

     

    For value received, Apollo Gold
Corporation (the "Corporation") hereby grants to Blackmont Capital
Inc., Brookfield Place, 181
Bay Street, Suite 900, Toronto, Ontario M5J 2T3 Canada (the "Holder"), the right and option, subject to the
terms and conditions set forth in this compensation option certificate (the
"Compensation Option
Certificate"), to purchase
from the Corporation, up to 274,166 common shares of the Corporation (the
"Common
Shares") at an exercise
price of $0.45 per Common Share (the "Exercise
Price") at any time and
from time to time up to 4:00 p.m. (Toronto time) on July 15, 2011 (the "Expiry
Time"), upon and subject to
the terms and conditions set forth herein.

     

    
      	
              1.

            	
              Definitions

            

    

     

    In this Compensation Option Certificate,
unless there is something in the subject matter or context inconsistent
therewith, the following terms shall have the following meanings
respectively:

     

    
      	
               
      

            	
              (a)

            	
              "AMEX" means the NYSE Amex
      LLC;

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              "Business
      Day" means any day
      other than a Saturday, Sunday, statutory or civic holiday or a day on
      which the principal banking institutions are closed in the City of
      Toronto, Ontario or the State of
  Colorado;

            

    

     

    
      	
               
      

            	
              (c)

            	
              "Current Market
      Price" of the Common
      Shares at any date means the price per Common Share equal to the weighted
      average price at which the Common Shares have traded on the TSX or, if the
      Common Shares are not then listed on the TSX, on such other Canadian stock
      exchange on which the Common Shares trade as may be selected by the
      directors of the Corporation for such purpose or, if the Common Shares are
      not then listed on any Canadian stock exchange, in the over-the-counter
      market, during the period of any twenty consecutive trading days ending
      not more than five (5) Business Days before such date; provided that the
      weighted average price shall be determined by dividing the aggregate sale
      price of all Common Shares sold on the said exchange or market, as the
      case may be, during the said twenty consecutive trading days by the total
      number of Common Shares so sold; and provided further that if the Common
      Shares are not then listed on any Canadian stock exchange or traded in the
      over-the counter market, then the Current Market Price shall be determined
      by such firm of independent chartered accountants as may be selected by
      the directors of the
Corporation;

            

    

     

    
      	
               
      

            	
              (d)

            	
              "Equity
      Shares" means the
      Common Shares and any shares of any other class or series of the
      Corporation which may from time to time be authorized for issue if by
      their terms such shares confer on the holders thereof the right to
      participate in the distribution of assets upon the voluntary or
      involuntary liquidation, dissolution or winding up of the Corporation
      beyond a fixed sum or a fixed sum plus accrued
      dividends;

            

    

     

    
      	
               
      

            	
              (e)

            	
              "Holder" means the registered holder of
      this Compensation Option Certificate or any additional Compensation Option
      Certificates issued by the Corporation pursuant to the terms
      hereof;

            

    

     

    
      	
               
      

            	
              (f)

            	
              "Options" means the compensation options
      to purchase Common Shares, having the attributes and issued pursuant to
      the terms and provisions set out
  hereunder;

            

    

     

    
      	
               
      

            	
              (g)

            	
              "person" is to be interpreted broadly and
      includes an individual, corporation, partnership, unincorporated
      syndicate, unincorporated organization, trust, trustee, executor,
      administrator or other legal representative or any group or combination
      thereof;

            

    

     

    
      	
               
      

            	
              (h)

            	
              "Subscription
      Form" means the form
      of subscription annexed hereto as Schedule
  "A";

            

    

     

    
      	
               
      

            	
              (i)

            	
              "Trading
      Day" means any day on
      which the Common Shares are listed and posted for trading on the TSX and
      such exchange is open for business or, if not listed and posted for
      trading on such exchange, on such stock exchange or quotation system on
      which the Common Shares are then listed and posted (or quoted) for trading
      and which is open for business, and, in each case, no cease trading or
      similar order is in effect with respect to the Common Shares;
      and

            

    

     

    
      	
               
      

            	
              (j)

            	
              "TSX" means the Toronto Stock
      Exchange.

            

    

     

    
      	
              2.

            	
              Expiry
      Time

            

    

     

    After the Expiry Time, all rights under
this Compensation Option Certificate and any outstanding Options evidenced
hereby, in respect of which the right of subscription and purchase herein
provided for shall not have been exercised, shall wholly cease and terminate and
this Compensation Option Certificate and the Options evidenced hereby shall be
void and of no value or effect.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
              3.

            	
              Exercise
      Procedure

            

    

     

    
      	
               
      

            	
              (a)

            	
              The Holder may exercise its right
      of purchase hereunder in whole or in part at any time at or prior to the
      Expiry Time by surrendering or delivering to the Corporation prior to the
      Expiry Time at its principal office in Colorado: (i) this Compensation
      Option Certificate together with the Subscription Form duly completed and
      executed by the Holder or its legal representative or attorney, duly
      appointed by an instrument in writing in form and manner satisfactory to
      the Corporation; and (ii) cash or a certified cheque, money order or bank
      draft payable to or to the order of the Corporation in an amount equal to
      the Exercise Price multiplied by the number of Common Shares for which
      subscription is being made.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Any Compensation Option
      Certificate, Subscription Form and cash, certified cheque, money order or
      bank draft referred to in the foregoing subsection 3(a) shall be deemed to
      be surrendered only upon delivery thereof to the Corporation at its
      principal office in the manner provided in Section 29
      hereof.

            

    

     

    
      	
              4.

            	
              Entitlement
      to Certificates

            

    

     

    Upon delivery and payment as provided
for in Section 3 above, the Corporation shall cause to be issued to the Holder
the Common Shares subscribed for and the Holder shall become a shareholder of
the Corporation in respect of such Common Shares purchased with effect from the
date of such delivery and payment and shall be entitled to delivery of a
certificate or certificates evidencing such Common Shares. The Corporation shall
cause such certificate or certificates to be issued and delivered to the Holder
at the address or addresses specified in the Subscription Form as soon as
practicable, but in any event, not later than seven (7) Business Days following
such delivery and payment.

     

    
      	
              5.

            	
              Assignment
      or Transfer of Compensation
Options

            

    

     

    The Options evidenced hereby may be
assigned or transferred by the Holder or exercised by or for the benefit of any
person other than the Holder.  The Options evidenced hereby may not be
exercised in the United States or by or on behalf of a U.S. Person or person in
the United States.  "United States" and "U.S. Person" are as defined
in Regulation S under the United States Securities Act of 1933, as
amended.

     

    
      	
              6.

            	
              Partial
      Exercise and Exchanges

            

    

     

    The Holder may subscribe for and
purchase a number of Common Shares which is less than the number it is entitled
to purchase pursuant to this Compensation Option Certificate. In the event of
any such subscription and purchase prior to the Expiry Time, the Holder shall
also be entitled to receive, without charge, a new Compensation Option
Certificate in respect of the balance of the Options to purchase Common Shares
to which it continues to be entitled pursuant to this Compensation Option
Certificate.

     

    This Compensation Option Certificate is
also exchangeable, without charge, from time to time, upon surrender hereof by
the Holder to the Corporation, for a new Compensation Option Certificate or
certificates of like tenor representing in the aggregate the same number of
Options under the Compensation Option Certificate so
surrendered.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
              7.

            	
              No
      Fractional Common Shares

            

    

     

    Notwithstanding any adjustment provided
for in Section 11 hereof, the Corporation shall not be required upon the
exercise of any Options to issue fractional Common Shares in satisfaction of its
obligations hereunder and the Holder understands and agrees that it will not be
entitled to any cash payment or other form of compensation in respect of a
fractional Common Share that might otherwise have been
issued.

     

    
      	
              8.

            	
              Not
      a Shareholder

            

    

     

    Nothing in this Compensation Option
Certificate or in the holding of the Options evidenced hereby shall be construed
as conferring upon the Holder any right or interest whatsoever as a shareholder
of the Corporation.

     

    
      	
              9.

            	
              No
      Obligation to Purchase

            

    

     

    Nothing herein contained or done
pursuant hereto shall obligate the Holder to purchase or pay for, or the
Corporation to issue, any Common Shares except those Common Shares in respect of
which the Holder shall have exercised its right to purchase in the manner
provided hereunder.

     

    
      	
              10.

            	
              Covenants

            

    

     

    
      	
               
      

            	
              (a)

            	
              The Corporation covenants that:
      (i) so long as any Options evidenced hereby remain outstanding, it shall
      reserve and there shall remain unissued out of its authorized capital a
      sufficient number of Common Shares to satisfy the right of purchase
      provided for herein; and (ii) all Common Shares which shall be issued upon
      the exercise of the right to purchase provided for herein, upon payment of
      the Exercise Price therefor, shall be issued as fully paid and
      non-assessable and free from all taxes, liens and charges with respect to
      the issue thereof, other than which may arise by virtue of the Holder's
      personal circumstances.

            

    

     

    
      	
               
      

            	
              (b)

            	
              While any Options evidenced hereby
      remain outstanding, the Corporation shall comply with the securities
      legislation applicable to it in order that the Corporation continue as a
      reporting issuer, or analogous entity, not in default of any requirements
      of such legislation.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The Corporation shall, at its
      expense, expeditiously use its commercially reasonable best efforts to
      obtain the listing on the TSX and the AMEX of the Common Shares issuable
      upon the exercise of the right to purchase provided for herein. The
      Corporation shall, at its expense, include the registration of the resale
      of the Common Shares underlying the Options in its registration statement
      (the "Registration
      Statement") filed in
      connection with the flow-through shares and common shares issued on the
      date of this Compensation Option Certificate, and, subject to the terms
      and conditions of the registration rights agreement, each dated July 15,
      2009 (the "Registration
      Rights Agreement"),
      between the Corporation and the subscriber counterparty thereto, shall use
      its commercially reasonable efforts to register the resale of the Common
      Shares underlying the Options in the United States as soon as possible so
      that the legend referred to in Section 27 (d) may be removed. The
      Corporation and the Holder agree to be bound by the terms of the
      Registration Rights Agreement as if they were original parties thereto,
      and the Holder agrees to complete and execute the Notice and Questionnaire
      prior to the Corporation including the Common Shares in the Registration
      Statement.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (d)

            	
              The Corporation shall use its
      commercially reasonable best efforts to do or cause to be done all things
      necessary to preserve and maintain its corporate
      existence.

            

    

     

    
      	
              11.

            	
              Adjustment
      to Exercise Price

            

    

     

    The rights of the Holder, including the
number of Common Shares issuable upon the exercise of each Option represented
hereby, will be adjusted from time to time upon the occurrence of the events and
in the manner provided in, and in accordance with the provisions of, this
Section.

     

    The Exercise Price in effect at any time
is subject to adjustment from time to time in the events and in the manner
provided as follows:

     

    
      	
               
      

            	
              (1)

            	
              If and whenever at any time after
      the date hereof the
Corporation:

            

    

     

    
      	
               
      

            	
              (a)

            	
              issues Common Shares or securities
      exchangeable for or convertible into Common Shares to all or substantially
      all the holders of the Common Shares as a stock
      dividend;

            

    

     

    
      	
               
      

            	
              (b)

            	
              makes a distribution on its
      outstanding Common Shares payable in Common Shares or securities
      exchangeable for or convertible into Common
  Shares;

            

    

     

    
      	
               
      

            	
              (c)

            	
              subdivides its outstanding Common
      Shares into a greater number of shares;
  or

            

    

     

    
      	
               
      

            	
              (d)

            	
              consolidates its outstanding
      Common Shares into a small number of
  shares;

            

    

     

    (any of such events being called a
"Common
Share Reorganization"),
then the Exercise Price will be adjusted effective immediately after the
effective date or record date for the happening of a Common Share
Reorganization, as the case may be, at which the holders of Common Shares are
determined for the purpose of the Common Share Reorganization by multiplying the
Exercise Price in effect immediately prior to such effective date or record date
by a fraction, the numerator of which is the number of Common Shares outstanding
on such effective date or record date before giving effect to such Common Share
Reorganization and the denominator of which is the number of Common Shares
outstanding immediately after giving effect to such Common Share Reorganization
(including, in the case where securities exchangeable for or convertible into
Common Shares are distributed, the number of Common Shares that would have been
outstanding had all such securities been exchanged for or converted into Common
Shares on such effective date or record date).

     

    
      	
               
      

            	
              (2)

            	
              If and whenever, at any time after
      the date hereof, the Corporation fixes a record date for the issue of
      rights, options or warrants to the holders of all or substantially all of
      its outstanding Common Shares under which such holders are entitled to
      subscribe for or purchase Common Shares or securities exchangeable for or
      convertible into Common Shares,
where:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the right to subscribe for or
      purchase Common Shares or the right to exchange securities for or convert
      securities into Common Shares, expires not more than 45 days after the
      date of such issue (the period from the record date to the date of expiry
      being herein in this Section 11(2) called the "Rights
      Period");
      and

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              the cost per Common Share during
      the Rights Period (inclusive of any cost of acquisition of securities
      exchangeable for or convertible into Common Shares in addition to any
      direct cost of Common Shares) (in this Section 11(2) called the
      "Per Share
      Cost") is less than
      95% of the Current Market Price of the Common Shares on the record
      date;

            

    

     

    (any of such events being called a
"Rights
Offering"), then the
Exercise Price will be adjusted effective immediately after the end of the
Rights Period to a price determined by multiplying the Exercise Price in effect
immediately prior to the end of the Rights Period by a
fraction:

     

    
      	
               
      

            	
              (i)

            	
              the numerator of which is the
      aggregate of:

            

    

     

    
      	
               
      

            	
              A.

            	
              the number of Common Shares
      outstanding as of the record date for the Rights Offering;
      and

            

    

     

    
      	
               
      

            	
              B.

            	
              a number determined by dividing
      the product of the Per Share Cost
and:

            

    

     

    
      	
               
      

            	
              (I)

            	
              where the event giving rise to the
      application of this subsection 11(2) was the issue of rights, options or
      warrants to the holders of Common Shares under which such holders are
      entitled to subscribe for or purchase additional Common Shares, the number
      of Common Shares so subscribed for or purchased during the Rights Period;
      or

            

    

     

    
      	
               
      

            	
              (II)

            	
              where the event giving rise to the
      application of this subsection 11(2) was the issue of rights, options or
      warrants to the holders of Common Shares under which such holders are
      entitled to subscribe for or purchase securities exchangeable for or
      convertible into Common Shares, the number of Common Shares for which
      those securities so subscribed for or purchased during the Rights Period
      could have been exchanged or into which they could have been converted
      during the Rights Period,

            

    

     

    by the Current Market Price of the
Common Shares as of the record date for the Rights Offering;
and

     

    
      	
               
      

            	
              (ii)

            	
              the denominator of which
      is:

            

    

     

    
      	
               
      

            	
              A.

            	
              in the case described in
      subparagraph 11(2)(i)(B)(I), the number of Common Shares outstanding;
      or

            

    

     

    
      	
               
      

            	
              B.

            	
              in the case described in
      subparagraph 11(2)(i)(B)(II), the number of Common Shares that would be
      outstanding if all the Common Shares described in subparagraph
      11(2)(i)(B)(II) had been issued, as at the end of the Rights
      Period.

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    
    

     

    Any Common Shares owned by or held for
the account of the Corporation or any subsidiary or affiliate (as such terms are
defined in the Securities
Act (Ontario)) of the
Corporation will be deemed not to be outstanding for the purpose of any such
computations.

     

    If by the terms of the rights, options
or warrants referred to in this Section 11(2), there is more than one purchase,
conversion or exchange price per Common Share, the aggregate price of the total
number of additional Common Shares offered for subscription or purchase, or the
aggregate conversion or exchange price of the convertible securities so offered,
will be calculated for purposes of the adjustment on the basis
of:

     

    
      	
               
      

            	
              (i)

            	
              the lowest purchase, conversion or
      exchange price per Common Share, as the case may be, if such price is
      applicable to all Common Shares which are subject to the rights, options
      or warrants; and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the average purchase, conversion
      or exchange price per Common Share, as the case may be, if the applicable
      price is determined by reference to that number of Common Shares
      acquired.

            

    

     

    To the extent that any adjustment in the
Exercise Price occurs pursuant to this Section 11(2) as a result of the fixing
by the Corporation of a record date for the distribution of rights, options or
warrants referred to in this Section 11(2), the Exercise Price will be
readjusted immediately after the expiration of any relevant exchange, conversion
or exercise right to the Exercise Price which would then be in effect based upon
the number of Common Shares actually issued and remaining issuable after such
expiration and will be further readjusted in such manner upon expiration of any
further such right.

     

    If the Holder has exercised this
Compensation Option Certificate in accordance herewith during the period
beginning after the record date for a Rights Offering and ending on the last day
of the Rights Period thereunder, the Holder will, in addition to the Common
Shares to which it is otherwise entitled upon such exercise, be entitled to that
number of additional Common Shares equal to the difference, if any, between (x)
the result obtained when the Exercise Price in effect immediately prior to the
end of such Rights Offering pursuant to this subsection is multiplied by the
number of Common Shares received upon the exercise of the Options represented by
this Compensation Option Certificate during such period, and the resulting
product is divided by the Exercise Price as adjusted for such Rights Offering
pursuant to this subsection provided that the provisions of Section 7 will be
applicable to any fractional interest in a Common Share to which such Holder
might otherwise be entitled and (y) the number of Common Shares received upon
the exercise of the Options represented by this Compensation Option Certificate
during such period. Such additional Common Shares will be deemed to have been
issued to the Holder immediately following the end of the Rights Period and a
certificate for such additional Common Shares will be delivered to such Holder
within ten (10) Business Days following the end of the Rights
Period.

     

    
      	
               
      

            	
              (3)

            	
              If and whenever at any time after
      the date hereof, the Corporation fixes a record date for the issue or the
      distribution to the holders of all or substantially all its Common Shares
      of:

            

    

     

    
      	
               
      

            	
              (i)

            	
              shares of the Corporation of any
      class other than Common
Shares;

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (ii)

            	
              rights, options or warrants to
      acquire shares or securities exchangeable for or convertible into shares
      or property or other assets of the Corporation (other than a right to
      subscribe for or purchase Common Shares or a right to exchange securities
      for or convert securities into Common Shares which expires not more than
      45 days after the date of such issue and the cost per Common Share during
      such period (inclusive of any cost of acquisition of securities
      exchangeable for or convertible into Common Shares in addition to any
      direct cost of Common Shares) is at least 95% of the Current Market Price
      of the Common Shares on the record
date);

            

    

     

    
      	
               
      

            	
              (iii)

            	
              evidence of indebtedness;
      or

            

    

     

    
      	
               
      

            	
              (iv)

            	
              any property or other
      assets,

            

    

     

    and if such issuance or distribution
does not constitute a Common Share Reorganization or a Rights Offering (any of
such non-excluded events being called a "Special
Distribution"), the
Exercise Price will be adjusted effective immediately after such record date to
a price determined by multiplying the Exercise Price in effect on such record
date by a fraction:

     

    
      	
               
      

            	
              (i)

            	
              the numerator of which
      is:

            

    

     

    
      	
               
      

            	
              A.

            	
              the product of the number of
      Common Shares outstanding on such record date and the Current Market Price
      of the Common Shares on such record date;
  less

            

    

     

    
      	
               
      

            	
              B.

            	
              the aggregate fair market value
      (as determined by action by the auditors of the Corporation) to the
      holders of the Common Shares of such securities or property or other
      assets so issued or distributed in the Special Distribution;
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the denominator of which is the
      number of Common Shares outstanding on such record date multiplied by the
      Current Market Price of the Common Shares on such record
      date.

            

    

     

    Any Common Shares owned by or held for
the account of the Corporation or any subsidiary or affiliate (as such terms are
defined in the Securities
Act (Ontario)) of the
Corporation will be deemed not to be outstanding for the purpose of any such
computation.

     

    
      	
               
      

            	
              (4)

            	
              If and whenever at any time after
      the date hereof there is a Common Share Reorganization, a Rights Offering,
      a Special Distribution, a reclassification of the Common Shares
      outstanding at any time or change of the Common Shares into other shares
      or into other securities (other than a Common Share Reorganization), or a
      consolidation, amalgamation or merger of the Corporation with or into any
      other corporation or other entity (other than a consolidation,
      amalgamation or merger which does not result in any reclassification of
      the outstanding Common Shares or a change of the Common Shares into other
      shares), or a transfer of the undertaking or assets of the Corporation as
      an entirety or substantially as an entirety to another corporation or
      other entity (any of such events being called a "Capital
      Reorganization"), the
      Holder, upon exercising the Options represented by this Compensation
      Option Certificate after the effective date of such Capital
      Reorganization, will be entitled to receive in lieu of the number of
      Common Shares to which such Holder was theretofore entitled upon such
      exercise, the aggregate number of Common Shares, other securities or other
      property which such Holder would have been entitled to receive as a result
      of such Capital Reorganization if, on the effective date thereof, the
      Holder had been the registered holder of the number of Common Shares to
      which such Holder was therefore entitled upon exercise of the Options
      represented by this Compensation Option Certificate. If determined
      appropriate by action of the directors of the Corporation, appropriate
      adjustments will be made as a result of any such Capital Reorganization in
      the application of the provisions set forth in this Section 11(4) with
      respect to the rights and interests thereafter of the Holder to the end
      that the provisions set forth in this Section 11(4) will thereafter
      correspondingly be made applicable as nearly as may reasonably be in
      relation to any shares, other securities or other property thereafter
      deliverable upon the exercise hereof. Any such adjustment must be made by
      and set forth in an amendment to this Compensation Option Certificate
      approved by action by the directors of the Corporation and will for all
      purposes be conclusively deemed to be an appropriate
      adjustment.

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (5)

            	
              If at any time after the date
      hereof and prior to the Expiry Time any adjustment in the Exercise Price
      shall occur as a result of:

            

    

     

    
      	
               
      

            	
              (a)

            	
              an event referred to in subsection
      11(1);

            

    

     

    
      	
               
      

            	
              (b)

            	
              the fixing by the Corporation of a
      record date for an event referred to in subsection 11(2);
      or

            

    

     

    
      	
               
      

            	
              (c)

            	
              the fixing by the Corporation of a
      record date for an event referred to in subsection 11(3) if such event
      constitutes the issue or distribution to the holders of all or
      substantially all of its outstanding Common Shares of: (A) Equity Shares,
      or (B) securities exchangeable for or convertible into Equity Shares at an
      exchange or conversion price per Equity Share less than 95% of the Current
      Market Price on such record date, or (C) rights, options or warrants to
      acquire Equity Shares at an exercise, exchange or conversion price per
      Equity Share less than 95% of the Current Market Price on such record
      date,

            

    

     

    then the number of Common Shares
purchasable upon the subsequent exercise of the Options represented by this
Compensation Option Certificate shall be simultaneously adjusted by multiplying
the number of Common Shares purchasable upon the exercise of the Options
represented by this Compensation Option Certificate immediately prior to such
adjustment by a fraction which shall be the reciprocal of the fraction employed
in the adjustment of the Exercise Price. To the extent any adjustment in
subscription rights occurs pursuant to this subsection 11(5) as a result of a
distribution of exchangeable or convertible securities other than Equity Shares
referred to in subsection 11(1) or as a result of the fixing by the Corporation
of a record date for the distribution of rights, options or warrants referred to
in subsection 11(2), the number of Common Shares purchasable upon exercise
of the Options represented by this Compensation Option Certificate shall be
readjusted immediately after the expiration of any relevant exchange, conversion
or exercise right to the number of Common Shares actually issued and remaining
issuable immediately after such expiration and shall be further readjusted in
such manner upon expiration of any further such right. To the extent that any
adjustment in subscription rights occurs pursuant to this subsection 11(5) as a
result of the fixing by the Corporation of a record date for the distribution of
exchangeable or convertible securities other than Equity Shares or rights,
options or warrants referred to in subsection 11(3), the number of Common Shares
purchasable upon exercise of the Options represented by this Compensation Option
Certificate shall be readjusted immediately after the expiration of any relevant
exchange, conversion or exercise right to the number which would be purchasable
pursuant to this subsection 11(5) if the fair market value of such securities or
such rights, options or warrants had been determined for purposes of the
adjustment pursuant to this subsection 11(5) on the basis of the number of
Equity Shares issued and remaining issuable immediately after such expiration
and shall be further readjusted in such manner upon expiration of any further
such right.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (6)

            	
              If at any time any adjustment or
      readjustment in the Exercise Price shall occur pursuant to the provisions
      of this Section 11, then the number of Common Shares purchasable upon the
      subsequent exercise of the Options shall be simultaneously adjusted or
      readjusted, as the case may be, by multiplying the number of Common Shares
      purchasable upon the exercise of the Options immediately prior to such
      adjustment or readjustment by a fraction which shall be the reciprocal of
      the fraction used in the adjustment or readjustment of the Exercise
      Price.

            

    

     

    
      	
              12.

            	
              Rules
      Regarding Calculation of
Adjustments

            

    

     

    The following rules and procedures shall
be applicable to adjustments made pursuant to Section 11
herein:

     

    
      	
               
      

            	
              (1)

            	
              The adjustments provided for in
      Section 11 are cumulative and will, in the case of adjustments to the
      Exercise Price, be computed to the nearest one-tenth of one cent and will
      be made successively whenever an event referred to therein occurs, subject
      to the following subsections of this Section
  12.

            

    

     

    
      	
               
      

            	
              (2)

            	
              No adjustment in the Exercise
      Price is required to be made unless such adjustment would result in a
      change of at least 1% in the prevailing Exercise Price; provided, however,
      that any adjustment which, except for the provisions of this subsection,
      would otherwise have been required to be made, will be carried forward and
      taken into account in any subsequent
  adjustments.

            

    

     

    
      	
               
      

            	
              (3)

            	
              No adjustment in the Exercise
      Price will be made in respect of any event described in Section 11, other
      than the events referred to in clauses 11(1)(c) and (d), if the Holder is
      entitled to participate in such event on the same terms, mutatis
      mutandis, as if the
      Holder had exercised the Options evidenced hereby prior to or on the
      effective date or record date of such event. Any participation by a Holder
      pursuant to this Section 12(3) is subject to the prior approval of the TSX
      (or such other stock exchange or quotation system on which the Common
      Shares are then listed and posted (or quoted) for trading, as
      applicable).

            

    

     

    
      	
               
      

            	
              (4)

            	
              No adjustment in the Exercise
      Price will be made under Section 11 in respect of the issue from time to
      time of Common Shares issuable from time to time as dividends paid in the
      ordinary course to holders of Common Shares who exercise an option or
      election to receive substantially equivalent dividends in Common Shares in
      lieu of receiving a cash dividend and any such issue will be deemed not to
      be a Common Share
Reorganization.

            

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (5)

            	
              If at any time a dispute arises
      with respect to adjustments provided for in Section 11, such dispute will
      be conclusively determined by the auditors of the Corporation or if they
      are unable or unwilling to act, by such other firm of independent
      chartered accountants as may be selected by the directors of the
      Corporation and approved by the Holder, acting reasonably, and any such
      determination, absent manifest error, will be binding upon the
      Corporation, the Holder and shareholders of the Corporation. The
      Corporation will provide such auditors or accountants with access to all
      necessary records of the
Corporation.

            

    

     

    
      	
               
      

            	
              (6)

            	
              In case the Corporation, after the
      date of issue of this Compensation Option Certificate, takes any action
      affecting the Common Shares, other than an action described in Section 11,
      which in the opinion of the directors of the Corporation would materially
      affect the rights of the Holder, the Exercise Price will be adjusted in
      such manner, if any, and at such time, by action by the directors of the
      Corporation but subject in all cases to any necessary regulatory approval,
      including approval of the TSX. Failure of the taking of action by the
      directors of the Corporation so as to provide for an adjustment on or
      prior to the effective date of any action by the Corporation affecting the
      Common Shares will be conclusive evidence that the board of directors of
      the Corporation has determined that it is equitable to make no adjustment
      in the circumstances.

            

    

     

    
      	
               
      

            	
              (7)

            	
              If the Corporation sets a record
      date to determine the holders of the Common Shares for the purpose of
      entitling them to receive any dividend or distribution or sets a record
      date to take any other action and, thereafter and before the distribution
      to such shareholders of any such dividend or distribution or the taking of
      any other action, decides not to implement its plan or pay or deliver such
      dividend or distribution or take such other action, then no adjustment in
      the Exercise Price will be required by reason of the setting of such
      record date.

            

    

     

    
      	
               
      

            	
              (8)

            	
              In the absence of a resolution of
      the directors of the Corporation fixing a record date for a Special
      Distribution or Rights Offering, the Corporation will be deemed to have
      fixed as the record date therefor the date on which the Special
      Distribution or Rights Offering is
  effected.

            

    

     

    
      	
               
      

            	
              (9)

            	
              As a condition precedent to the
      taking of any action which would require any adjustment to the Options
      evidenced hereby, including the Exercise Price, the Corporation must take
      any corporate action which may be necessary in order that the Corporation
      shall have unissued and reserved in its authorized capital and may validly
      and legally issue as fully paid and non-assessable all of the shares or
      other securities which the Holder is entitled to receive on the full
      exercise thereof in accordance with the provisions
      hereof.

            

    

     

    
      	
               
      

            	
              (10)

            	
              The Corporation will from time to
      time, within 10 Business Days after the occurrence of any event which
      requires an adjustment or readjustment as provided in Section 11, give
      notice to the Holder specifying the event requiring such adjustment or
      readjustment and the results thereof, including the resulting Exercise
      Price.

            

    

     

    
      	
               
      

            	
              (11)

            	
              Any adjustment to the Exercise
      Price under the terms of this Compensation Option Certificate shall be
      subject to the prior approval of the TSX and such other stock exchange or
      quotation system on which the Common Shares are then listed and posted (or
      quoted) for trading, as
applicable.

            

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    
      	
              13.

            	
              Consolidation
      and Amalgamation

            

    

     

    
      	
               
      

            	
              (1)

            	
              The Corporation shall not enter
      into any transaction whereby all or substantially all of its undertaking,
      property and assets would become the property of any other corporation or
      entity (herein called a "successor
      corporation") whether
      by way of reorganization, reconstruction, consolidation, amalgamation,
      merger, transfer, sale, disposition or otherwise, unless prior to or
      contemporaneously with the consummation of such transaction the
      Corporation and the successor corporation shall have executed such
      instruments and done such things as, in the opinion of counsel to the
      Corporation, are necessary or advisable to establish that upon the
      consummation of such
transaction:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the successor corporation will
      have assumed all the covenants and obligations of the Corporation under
      this Compensation Option Certificate;
and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              this Compensation Option
      Certificate will be a valid and binding obligation of the successor
      corporation entitling the Holder, as against the successor corporation, to
      all the rights of the Holder under this Compensation Warrant
      Certificate.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Whenever the conditions of
      subsection 13(1) shall have been duly observed and performed, the
      successor corporation shall possess and from time to time may exercise
      each and every right and power of the Corporation under this Compensation
      Option Certificate in the name of the Corporation or otherwise and any act
      or proceeding by any provision hereof required to be done or performed by
      any director or officer of the Corporation may be done and performed with
      like force and effect by the like directors or officers of the successor
      corporation.

            

    

     

    
      	
              14.

            	
              Representations
      and Warranties

            

    

     

    The Corporation hereby represents and
warrants with and to the Holder that the Corporation is duly authorized and has
the corporate and lawful power and authority to create and issue the Options
evidenced hereby and the Common Shares issuable upon the exercise hereof, and to
perform its obligations hereunder and that this Compensation Option Certificate
represents a valid, legal and binding obligation of the Corporation enforceable
in accordance with its terms subject to bankruptcy, insolvency and other laws of
general application affecting the rights of creditors and equitable remedies
being in the discretion of the court.

     

    
      	
              15.

            	
              Acquisition
      of the Securities

            

    

     

    The Holder hereby represents, warrants
and certifies to the Corporation that the securities represented by this
Compensation Option Certificate, and the Common Shares issuable upon exercise
thereof, are being acquired solely for its own account and not as a nominee for
any other party and not with a view toward the resale or distribution thereof
and that it will not offer, sell or otherwise dispose of the Compensation Option
Certificate or the Common Shares issuable upon exercise thereof except under
circumstances which will not result in a violation of any applicable securities
laws in Canada, the United States and other applicable securities laws or the
rules of the TSX or AMEX.  In addition, the Holder hereby represents,
warrants and certifies to the Corporation that the Holder: (i) at the time of
receipt of this Compensation Option Certificate is not in the United States;
(ii) is not a U.S. Person and is not receiving this Compensation Option
Certificate for the account or benefit of a U.S. Person; (iii) did not execute
or deliver this Option Compensation Certificate while within the United States;
(iv) has not and will not engage in any hedging transaction with respect to the
Options or the Common Shares, except as permitted by the United States
Securities Act of 1933, as amended (the "U.S. Securities
Act"); and (v) has in all
other respects complied with the terms of Regulation S of the US Securities Act
or any successor rule or regulation of the United States Securities and Exchange
Commission as presently in effect.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      	
              16.

            	
              If
      Share Transfer Books Closed

            

    

     

    The Corporation shall not be required to
deliver certificates for Common Shares while the share transfer books of the
Corporation are properly closed prior to any meeting of shareholders, for the
payment of dividends or for any other purpose and in the event of the surrender
of any Compensation Option Certificate in accordance with the provisions hereof
and the making of any subscription and payment for Common Shares called for
thereby during any such period, delivery of certificates for Common Shares may
be postponed for not more than five (5) Business Days after the date of the
re-opening of said share transfer books. Any such postponement of delivery of
certificates shall be without prejudice to the right of the Holder, if the
Holder has surrendered the same and made payment during such period, to receive
certificates for the Common Shares called for after the share transfer books
have been re-opened.

     

    
      	
              17.

            	
              Stolen,
      Lost, Mutilated or Destroyed
Certificate

            

    

     

    If this Compensation Option Certificate
is stolen, lost, mutilated or destroyed, the Corporation shall, on such terms as
it shall in its discretion impose, issue and countersign a new Compensation
Option Certificate of like denomination, tenor and date as the certificate so
stolen, lost, mutilated or destroyed.

     

    
      	
              18.

            	
              Governing
      Law

            

    

     

    This Compensation Option Certificate
shall be governed by and construed in accordance with the laws of the Province
of Ontario and the federal laws of Canada applicable therein, regardless of the
laws that might otherwise govern under applicable principles of conflicts of
laws thereof, except to the extent mandatorily governed by the law of another
jurisdiction. Each of the Holder and the Corporation: (i) irrevocably consents
to the exclusive jurisdiction and venue of the Courts of Ontario in connection
with any matter or dispute based upon or arising out of this Compensation Option
Certificate or the matters contemplated herein; (ii) agrees that process may be
served upon them in any manner authorized by the laws of the Province of Ontario
for such persons; and (iii) waives and covenants not to assert or plead any
objection which they might otherwise have to such jurisdiction, venue and such
process.

     

    
      	
              19.

            	
              Severability

            

    

     

    If any one or more of the provisions or
parts thereof contained in this Compensation Option Certificate should be or
become invalid, illegal or unenforceable in any respect in any jurisdiction, the
remaining provisions or parts thereof contained herein shall be and shall be
conclusively deemed to be, as to such jurisdiction, severable therefrom
and:

     

    
      	
               
      

            	
              (a)

            	
              the validity, legality or
      enforceability of such remaining provisions or parts thereof shall not in
      any way be affected or impaired by the severance of the provisions or
      parts thereof severed; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              the invalidity, illegality or
      unenforceability of any provision or part thereof contained in this
      Compensation Option Certificate in any jurisdiction shall not affect or
      impair such provision or part thereof or any other provisions of this
      Compensation Option Certificate in any other
      jurisdiction.

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      	
              20.

            	
              Headings

            

    

     

    The headings of the sections,
subsections, clauses and subclauses of this Compensation Option Certificate have
been inserted for convenience and reference only and do not define, limit, alter
or enlarge the meaning of any provision of this Compensation Option
Certificate.

     

    
      	
              21.

            	
              Compensation
      Options Rank Pari Passu

            

    

     

    All Options shall rank pari
passu, whatever may be the
actual date of issue of the same.

     

    
      	
              22.

            	
              Numbering
      of Articles, etc.

            

    

     

    Unless otherwise stated, a reference
herein to a numbered or lettered section, subsection, clause, subclause or
schedule refers to the section, subsection, clause, subclause or schedule
bearing that number or letter in this Compensation Option
Certificate.

     

    
      	
              23.

            	
              Number
      and Gender

            

    

     

    Whenever used in this Compensation
Option Certificate, words importing the singular number only shall include the
plural and vice
versa and words importing
gender shall include all genders.

     

    
      	
              24.

            	
              Day
      Not a Business Day

            

    

     

    In the event that any day on or before
which any action is required to be taken hereunder is not a Business Day then
such action shall be required to be taken on or before the requisite time on the
next day that is a Business Day.

     

    
      	
              25.

            	
              TSX
      and AMEX Approvals

            

    

     

    Notwithstanding anything to the contrary
in this Compensation Option Certificate, no supplement or amendment to the terms
of this Compensation Option Certificate may be made without the prior written
approval of the TSX and AMEX and such other stock exchange or quotation system
on which the Common Shares are then listed and posted (or quoted) for trading,
as applicable.

     

    
      	
              26.

            	
              Binding
      Effect

            

    

     

    This Compensation Option Certificate and
all of its provisions shall enure to the benefit of the Holder and its
successors and shall be binding upon the Corporation and its
successors.

     

    
      	
              27.

            	
              Legends

            

    

     

    
      	
              (a)

            	
              The Holder acknowledges that any
      certificate representing Common Shares issued upon the exercise of this
      Compensation Option Certificate prior to the date which is four months and
      one day after the date hereof will bear the following
      legend:

            

    

     

    "UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE
NOVEMBER 16, 2009."

     

    provided that at any time subsequent to
the date which is four months and one day after the date hereof any certificate
representing such Common Shares may be exchanged for a certificate bearing no
such legends.  The Corporation hereby covenants and agrees that it
will use the best efforts thereof to deliver or to cause to be delivered a
certificate or certificates representing such Common Shares bearing no such
legends within three Business Days after receipt of the legended
certificate.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    
      	
              (b)

            	
              The Holder acknowledges that the
      certificates representing the Common Shares and all certificates issued in
      exchange or substitution thereof, will bear a legend in substantially the
      following form as long as the legend referred to in subsection 27(a)
      remains on such certificate:

            

    

     

    
      	
               
      

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

            

    

     

    
      	
              (c)

            	
              The Holder further acknowledges
      that any certificate representing Common Shares issued upon the exercise
      of this Compensation Option Certificate and all certificates issued in
      exchange or substitution thereof will bear the following
      legend:

            

    

     

    
      	
               
      

            	
              "UNTIL THE SEPARATION TIME (AS
      DEFINED IN THE RIGHTS AGREEMENT REFERRED TO BELOW), THIS CERTIFICATE ALSO
      EVIDENCES AND ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS AS SET FORTH IN
      A SHAREHOLDER RIGHTS PLAN AGREEMENT, DATED AS OF THE 17TH DAY OF JANUARY,
      2007 (THE "RIGHTS AGREEMENT"), BETWEEN THE CORPORATION AND CIBC MELLON
      TRUST COMPANY, AS RIGHTS AGENT, THE TERMS OF WHICH ARE HEREBY INCORPORATED
      HEREIN BY REFERENCE AND A COPY OF WHICH MAY BE INSPECTED DURING NORMAL
      BUSINESS HOURS AT THE PRINCIPAL EXECUTIVE OFFICES OF THE
      CORPORATION.  UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE
      RIGHTS AGREEMENT, SUCH RIGHTS MAY BE TERMINATED, MAY EXPIRE, MAY BECOME
      VOID (IF, IN CERTAIN CASES, THEY ARE "BENEFICIALLY OWNED" BY AN "ACQUIRING
      PERSON", AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT, WHETHER
      CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR ANY SUBSEQUENT HOLDER) OR
      MAY BE EVIDENCED BY SEPARATE CERTIFICATES AND MAY NO LONGER BE EVIDENCED
      BY THIS CERTIFICATE.  THE CORPORATION WILL MAIL OR ARRANGE FOR
      THE MAILING OF A COPY OF THE RIGHTS AGREEMENT TO THE HOLDER OF THIS
      CERTIFICATE WITHOUT CHARGE AS SOON AS IS PRACTICABLE AFTER THE RECEIPT OF
      A WRITTEN REQUEST THEREFOR."

            

    

     

    
      	
              (d)

            	
              In addition, the Holder
      acknowledges that any certificate representing Common Shares issued upon
      the exercise of this Compensation Option Certificate will bear the
      following legend:

            

    

     

    
      	
               
      

            	
              "THIS SECURITY HAS NOT BEEN
      REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
      ''SECURITIES ACT''), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS
      SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER
      (1) AGREES THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THE SECURITY
      EVIDENCED HEREBY, EXCEPT (A) TO THE ISSUER; (B) TO PERSONS OTHER THAN U.S.
      PERSONS OUTSIDE THE UNITED STATES IN COMPLIANCE WITH REGULATION S UNDER
      THE SECURITIES ACT; (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION
      PROVIDED BY RULE 144 ADOPTED UNDER THE SECURITIES ACT OR ANOTHER AVAILABLE
      EXEMPTION UNDER THE SECURITIES ACT (IF AVAILABLE); OR (D) PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND (2) AGREES
      THAT IT WILL, PRIOR TO ANY TRANSFER OF THIS SECURITY PURSUANT TO
      SUBPARAGRAPH (B) OR (C) ABOVE, FURNISH TO THE ISSUER OR ISSUER'S COUNSEL
      SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE
      REQUIRED BY THE ISSUER TO CONFIRM THAT SUCH TRANSFER IS BEING MADE
      PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
      REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS
      ''UNITED STATES'' AND ''U.S. PERSON'' HAVE THE MEANING GIVEN TO THEM BY
      REGULATION S UNDER THE SECURITIES ACT. IN ANY CASE, THE HOLDER HEREOF WILL
      NOT, DIRECTLY OR INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTION WITH REGARD
      TO THIS SECURITY, EXCEPT AS PERMITTED BY THE SECURITIES
      ACT."

            

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    
      	
              28.

            	
              Currency

            

    

     

    All references herein to monetary
amounts are references to lawful money of Canada, unless otherwise specified
herein.

     

    
      	
              29.

            	
              Notice

            

    

     

    Any notice, document or other
communication required or permitted by this Compensation Option Certificate to
be given by the Holder or the Corporation shall be in writing and is
sufficiently given if delivered personally, or if delivered or if transmitted by
any form of recorded telecommunication tested prior to transmission, to such
person addressed as follows:

     

    
      	
               
      

            	
              (a)

            	
              if to the
      Holder:

            

    

     

    to the address on the face page
hereof

     

    
      	
               
      

            	
              (b)

            	
              if to the
      Corporation:

            

    

     

    Apollo Gold
Corporation

    5655 S. Yosemite Street, Suite
200

    Greenwood Village, Colorado,
80111-3220

     

    
      	
               
      

            	
              Attention:

            	
              Chief Financial
      Officer

            

    

     

    
      	
               
      

            	
              Telephone
    No.:

            	
              (720)
    886-9656

            

    

     

    
      	
               
      

            	
              Facsimile
    No.:

            	
              (720)
    482-0957

            

    

     

    Notice so delivered shall be deemed to
have been given on the Business Day that it is received.  Notices
transmitted by a form of recorded telecommunication shall be deemed given on the
day of transmission.  The Holder or the Corporation may from time to
time notify the other in the manner provided herein of any change of address or
facsimile number which thereafter, until changed by like notice, shall be the
address or facsimile number of such person for all purposes
hereof.

     

    
      	
              30.

            	
              Time
      of Essence

            

    

     

    Time shall be of the essence
hereof.

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    IN WITNESS
WHEREOF, the Corporation has caused this
Compensation Option Certificate to be signed by its duly authorized officer
this 15th day of July, 2009.

     

    
      
        
          	 	      
                  APOLLO GOLD
      CORPORATION

                	 
	 	 	 	 
	
                	
                  Per:

                	/s/
      R. David Russell	 
	 	 	      
                  Authorized
      Signatory

                	 

        

      

      
      

       

    

    
      
         

      

      
        17

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