Document:

EXHIBIT
      B

     

    COMMON
      STOCK PURCHASE WARRANT

    

    To
      Purchase __________ Shares of Common Stock of

     

    APOLLO
      GOLD CORPORATION

     

    THIS
      COMMON STOCK PURCHASE WARRANT (the “Warrant”)
      certifies that, for value received, _____________ (the “Holder”),
      is
      entitled, upon the terms and subject to the limitations on exercise and the
      conditions hereinafter set forth, at any time on or after the date hereof (the
      “Initial
      Exercise Date”)
      and on
      or prior to the close of business on the third year anniversary of the Initial
      Exercise Date (the “Termination
      Date”)
      but
      not thereafter, to subscribe for and purchase from Apollo Gold Corporation,
      a
      corporation incorporated under the laws of the Yukon Territory, Canada (the
      “Company”),
      up to
      ______ shares (the “Warrant
      Shares”)
      of
      common stock, no par value per share (the “Common
      Stock”),
      of
      the Company; provided,
      however,
      that
      the Termination Date shall be extended for the number of days during such period
      in which (i) trading in the Common Stock is suspended by any Trading Market,
      or
      (ii) the Registration Statement is not effective but in no event later than
      42
      months after the Initial Exercise Date. The purchase price of one share of
      Common Stock under this Warrant shall be equal to the Exercise Price, as defined
      in Section 2(b).

     

    Section
      1. Definitions.
      Capitalized terms used and not otherwise defined herein shall have the meanings
      set forth in that certain Securities Purchase Agreement (the “Purchase
      Agreement”),
      dated
      October 30, 2006, among the Company and the purchasers signatory
      thereto.

     

    Section
      2. Exercise.

     

    a) Exercise
      of Warrant.
      Exercise of the purchase rights represented by this Warrant may be made, in
      whole or in part, at any time or times on or after the Initial Exercise Date
      and
      on or before the Termination Date by delivery to the Company of a duly executed
      facsimile copy of the Notice of Exercise Form annexed hereto (or such other
      office or agency of the Company as it may designate by notice in writing to
      the
      registered Holder at the address of such Holder appearing on the books of the
      Company); provided,
      however,
      within
      5 Trading Days of the date said Notice of Exercise is delivered to the Company,
      if this Warrant is exercised in full, the Holder shall have surrendered this
      Warrant to the Company and the Company shall have received payment of the
      aggregate Exercise Price of the shares thereby purchased by wire transfer or
      cashier’s check drawn on a United States bank. Notwithstanding anything herein
      to the contrary, the Holder shall not be required to physically surrender this
      Warrant to the Company until the Holder has purchased all of the Warrant Shares
      available hereunder and the Warrant has been exercised in full. Partial
      exercises of this Warrant resulting in purchases of a portion of the total
      number of Warrant Shares available hereunder shall have the effect of lowering
      the outstanding number of Warrant Shares purchasable hereunder in an amount
      equal to the applicable number of Warrant Shares purchased. The Holder and
      the
      Company shall maintain records showing the number of Warrant Shares purchased
      and the date of such purchases. The Company shall deliver any objection to
      any
      Notice of Exercise Form within 3 Business Days of receipt of such notice. The
      Holder and any assignee, by acceptance of this Warrant, acknowledge and agree
      that, by reason of the provisions of this paragraph, following the purchase
      of a
      portion of the Warrant Shares hereunder, the number of Warrant Shares available
      for purchase hereunder at any given time may be less than the amount stated
      on
      the face hereof.

     

    
      
        
        

      

      
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    b) Exercise
      Price.
      The
      exercise price of the Common Stock under this Warrant shall be $0.50, subject
      to
      adjustment hereunder (the “Exercise
      Price”).

     

    c) Cashless
      Exercise.
      If at
      any time during the term of this Warrant either there is no effective
      Registration Statement registering, or no current prospectus available for,
      the
      resale of the Warrant Shares by the Holder, then this Warrant may also be
      exercised at such time by means of a “cashless exercise” in which the Holder
      shall be entitled to receive a certificate for the number of Warrant Shares
      equal to the quotient obtained by dividing [(A-B) (X)] by (A),
      where:

     

    
      	
            	(A)
              =	
              the
                VWAP on the Trading Day immediately preceding the date of such
                election;

            

    

    

    
      	
            	(B)
              =	
              the
                Exercise Price of this Warrant, as adjusted; and
                

            

    

    

    
      	
            	(X)
              =	
              the
                number of Warrant Shares issuable upon exercise of this Warrant in
                accordance with the terms of this Warrant by means of a cash exercise
                rather than a cashless exercise.

            

    

     

    
      
        
        

      

      
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    d) Holder’s
      Restrictions.
      The
      Company shall not effect any exercise of this Warrant, and a Holder shall not
      have the right to exercise any portion of this Warrant, pursuant to Section
      2(c)
      or otherwise, to the extent that after giving effect to such issuance after
      exercise, such Holder (together with such Holder’s affiliates, and any other
      person or entity acting as a group together with such Holder or any of such
      Holder’s affiliates), as set forth on the applicable Notice of Exercise, would
      beneficially own in excess of the Beneficial Ownership Limitation (as defined
      below).  For purposes of the foregoing sentence, the number of shares of
      Common Stock beneficially owned by such Holder and its affiliates shall include
      the number of shares of Common Stock issuable upon exercise of this Warrant
      with
      respect to which the determination of such sentence is being made, but shall
      exclude the number of shares of Common Stock which would be issuable upon (A)
      exercise of the remaining, nonexercised portion of this Warrant beneficially
      owned by such Holder or any of its affiliates and (B) exercise or conversion
      of
      the unexercised or nonconverted portion of any other securities of the Company
      (including, without limitation, any other Warrants) subject to a limitation
      on
      conversion or exercise analogous to the limitation contained herein beneficially
      owned by such Holder or any of its affiliates.  Except as set forth in the
      preceding sentence, for purposes of this Section 2(d), beneficial ownership
      shall be calculated in accordance with Section 13(d) of the Exchange Act and
      the
      rules and regulations promulgated thereunder, it being acknowledged by the
      Holder that the Company is not representing to such Holder that such calculation
      is in compliance with Section 13(d) of the Exchange Act and such Holder is
      solely responsible for any schedules required to be filed in accordance
      therewith. To the extent that the limitation contained in this Section 2(d)
      applies, the determination of whether this Warrant is exercisable (in relation
      to other securities owned by such Holder) and of which a portion of this Warrant
      is exercisable shall be in the sole discretion of the Holder, and the submission
      of a Notice of Exercise shall be deemed to be Holder’s determination of whether
      this Warrant is exercisable (in relation to other securities owned by such
      Holder) and of which portion of this Warrant is exercisable, in each case
      subject to such aggregate percentage limitation, and the Company shall have
      no
      obligation to verify or confirm the accuracy of such determination. In addition,
      a determination as to any group status as contemplated above shall be determined
      in accordance with Section 13(d) of the Exchange Act and the rules and
      regulations promulgated thereunder. For purposes of this Section 2(d), in
      determining the number of outstanding shares of Common Stock, a Holder may
      rely
      on the number of outstanding shares of Common Stock as reflected in (x) the
      Company’s most recent Form 10-Q or Form 10-K, as the case may be, (y) a more
      recent public announcement by the Company or (z) any other notice by the Company
      or the Company’s Transfer Agent setting forth the number of shares of Common
      Stock outstanding.  Upon the written or oral request of a Holder, the
      Company shall within two Trading Days confirm orally and in writing to such
      Holder the number of shares of Common Stock then outstanding.  In any case,
      the number of outstanding shares of Common Stock shall be determined after
      giving effect to the conversion or exercise of securities of the Company,
      including this Warrant, by such Holder or its affiliates since the date as
      of
      which such number of outstanding shares of Common Stock was reported. The
“Beneficial
      Ownership Limitation”
shall
      be 4.99% of the number of shares of the Common Stock outstanding immediately
      after giving effect to the issuance of shares of Common Stock issuable upon
      exercise of this Warrant. The Beneficial Ownership Limitation provisions of
      this
      Section 2(d) may be waived by such Holder, at the election of such Holder,
      upon
      not less than 61 days’ prior notice to the Company to change the Beneficial
      Ownership Limitation to 9.99% of the number of shares of the Common Stock
      outstanding immediately after giving effect to the issuance of shares of Common
      Stock upon exercise of this Warrant, and the provisions of this Section 2(d)
      shall continue to apply. Upon such a change by a Holder of the Beneficial
      Ownership Limitation from such 4.99% limitation to such 9.99% limitation, the
      Beneficial Ownership Limitation may not be waived by such Holder. The provisions
      of this paragraph shall be implemented in a manner otherwise than in strict
      conformity with the terms of this Section 2(d) to correct this paragraph (or
      any
      portion hereof) which may be defective or inconsistent with the intended
      Beneficial Ownership Limitation herein contained or to make changes or
      supplements necessary or desirable to properly give effect to such limitation.
      The limitations contained in this paragraph shall apply to a successor holder
      of
      this Warrant.

     

    e) Mechanics
      of Exercise.
      

     

    i. Authorization
      of Warrant Shares.
      The
      Company covenants that all Warrant Shares which may be issued upon the exercise
      of the purchase rights represented by this Warrant will, upon exercise of the
      purchase rights represented by this Warrant, be duly authorized, validly issued,
      fully paid and nonassessable and free from all taxes, liens and charges in
      respect of the issue thereof (other than taxes in respect of any transfer
      occurring contemporaneously with such issue). 

     

    
      
        
        

      

      
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    ii. Delivery
      of Certificates Upon Exercise.
      Certificates for shares purchased hereunder shall be transmitted by the transfer
      agent of the Company to the Holder by crediting the account of the Holder’s
      prime broker with the Depository Trust Company through its Deposit Withdrawal
      Agent Commission (“DWAC”)
      system
      if the Company is a participant in such system, and otherwise by physical
      delivery to the address specified by the Holder in the Notice of Exercise within
      3 Trading Days from the delivery to the Company of the Notice of Exercise Form,
      surrender of this Warrant (if required) and payment of the aggregate Exercise
      Price as set forth above (“Warrant
      Share Delivery Date”).
      This
      Warrant shall be deemed to have been exercised on the date the Exercise Price
      is
      received by the Company. The Warrant Shares shall be deemed to have been issued,
      and Holder or any other person so designated to be named therein shall be deemed
      to have become a holder of record of such shares for all purposes, as of the
      date the Warrant has been exercised by payment to the Company of the Exercise
      Price and all taxes required to be paid by the Holder, if any, pursuant to
      Section 2(e)(vii) prior to the issuance of such shares, have been paid.

     

    iii. Delivery
      of New Warrants Upon Exercise.
      If this
      Warrant shall have been exercised in part, the Company shall, at the request
      of
      a Holder and upon surrender of this Warrant certificate, at the time of delivery
      of the certificate or certificates representing Warrant Shares, deliver to
      Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased
      Warrant Shares called for by this Warrant, which new Warrant shall in all other
      respects be identical with this Warrant.

     

    iv. Rescission
      Rights.
      If the
      Company fails to cause its transfer agent to transmit to the Holder a
      certificate or certificates representing the Warrant Shares pursuant to this
      Section 2(e)(iv) by the Warrant Share Delivery Date, then the Holder will have
      the right to rescind such exercise.

     

    v. Compensation
      for Buy-In on Failure to Timely Deliver Certificates Upon
      Exercise.
      In
      addition to any other rights available to the Holder, if the Company fails
      to
      cause its transfer agent to transmit to the Holder a certificate or certificates
      representing the Warrant Shares pursuant to an exercise on or before the Warrant
      Share Delivery Date, and if after such date the Holder is required by its broker
      to purchase (in an open market transaction or otherwise) shares of Common Stock
      to deliver in satisfaction of a sale by the Holder of the Warrant Shares which
      the Holder anticipated receiving upon such exercise (a “Buy-In”),
      then
      the Company shall (1) pay in cash to the Holder the amount by which (x) the
      Holder’s total purchase price (including brokerage commissions, if any) for the
      shares of Common Stock so purchased exceeds (y) the amount obtained by
      multiplying (A) the number of Warrant Shares that the Company was required
      to
      deliver to the Holder in connection with the exercise at issue times (B) the
      price at which the sell order giving rise to such purchase obligation was
      executed, and (2) at the option of the Holder, either reinstate the portion of
      the Warrant and equivalent number of Warrant Shares for which such exercise
      was
      not honored or deliver to the Holder the number of shares of Common Stock that
      would have been issued had the Company timely complied with its exercise and
      delivery obligations hereunder. For example, if the Holder purchases Common
      Stock having a total purchase price of $11,000 to cover a Buy-In with respect
      to
      an attempted exercise of shares of Common Stock with an aggregate sale price
      giving rise to such purchase obligation of $10,000, under clause (1) of the
      immediately preceding sentence the Company shall be required to pay the Holder
      $1,000. The Holder shall provide the Company written notice indicating the
      amounts payable to the Holder in respect of the Buy-In, together with applicable
      confirmations and other evidence reasonably requested by the Company. Nothing
      herein shall limit a Holder’s right to pursue any other remedies available to it
      hereunder, at law or in equity including, without limitation, a decree of
      specific performance and/or injunctive relief with respect to the Company’s
      failure to timely deliver certificates representing shares of Common Stock
      upon
      exercise of the Warrant as required pursuant to the terms hereof.

     

    
      
        
        

      

      
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    vi. No
      Fractional Shares or Scrip.
      No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant. As to any fraction of a share which Holder would
      otherwise be entitled to purchase upon such exercise, the Company shall pay
      a
      cash adjustment in respect of such final fraction in an amount equal to such
      fraction multiplied by the Exercise Price.

     

    vii. Charges,
      Taxes and Expenses.
      Issuance of certificates for Warrant Shares shall be made without charge to
      the
      Holder for any issue or transfer tax or other incidental expense in respect
      of
      the issuance of such certificate, all of which taxes and expenses shall be
      paid
      by the Company, and such certificates shall be issued in the name of the Holder
      or in such name or names as may be directed by the Holder; provided,
      however,
      that in
      the event certificates for Warrant Shares are to be issued in a name other
      than
      the name of the Holder, this Warrant when surrendered for exercise shall be
      accompanied by the Assignment Form attached hereto duly executed by the Holder;
      and the Company may require, as a condition thereto, the payment of a sum
      sufficient to reimburse it for any transfer tax incidental thereto.

     

    viii. Closing
      of Books.
      The
      Company will not close its stockholder books or records in any manner which
      prevents the timely exercise of this Warrant, pursuant to the terms
      hereof.

     

    Section
      3. Certain
      Adjustments.

     

    a) Stock
      Dividends and Splits.
      If the
      Company, at any time while this Warrant is outstanding: (A) pays a stock
      dividend or otherwise make a distribution or distributions on shares of its
      Common Stock or any other equity or equity equivalent securities payable in
      shares of Common Stock (which, for avoidance of doubt, shall not include any
      shares of Common Stock issued by the Company pursuant to this Warrant), (B)
      subdivides outstanding shares of Common Stock into a larger number of shares,
      (C) combines (including by way of reverse stock split) outstanding shares of
      Common Stock into a smaller number of shares, or (D) issues by reclassification
      of shares of the Common Stock any shares of capital stock of the Company, then
      in each case the Exercise Price shall be multiplied by a fraction of which
      the
      numerator shall be the number of shares of Common Stock (excluding treasury
      shares, if any) outstanding immediately before such event and of which the
      denominator shall be the number of shares of Common Stock outstanding
      immediately after such event and the number of shares issuable upon exercise
      of
      this Warrant shall be proportionately adjusted. Any adjustment made pursuant
      to
      this Section 3(a) shall become effective immediately after the record date
      for
      the determination of stockholders entitled to receive such dividend or
      distribution and shall become effective immediately after the effective date
      in
      the case of a subdivision, combination or re-classification.

     

    
      
        
        

      

      
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    b) Subsequent
      Equity Sales.
      If the
      Company or any Subsidiary thereof, as applicable, shall sell or grant any option
      to purchase, or sell or grant any right to reprice its securities, or otherwise
      dispose of or issue (or announce any sale, grant or any option to purchase
      or
      other disposition) any Common Stock or Common Stock Equivalents entitling any
      Person to acquire shares of Common Stock, at an effective price per share less
      than the then Exercise Price (such lower price, the “Base
      Share Price”
and
      such issuances, subject to the proviso below regarding Exempt Issuances,
      collectively, a “Dilutive
      Issuance”)
      (if
      the holder of the Common Stock or Common Stock Equivalents so issued shall
      at
      any time, whether by operation of purchase price adjustments, reset provisions,
      floating conversion, exercise or exchange prices or otherwise, or due to
      warrants, options or rights per share which are issued in connection with such
      issuance, be entitled to receive shares of Common Stock at an effective price
      per share which is less than the Exercise Price, such issuance shall be deemed
      to have occurred for less than the Exercise Price on such date of the Dilutive
      Issuance), then the Exercise Price shall be reduced and only reduced to equal
      the Base Share Price, but the number of Warrant Shares issuable hereunder shall
      be not be increased. Notwithstanding the foregoing, no adjustments shall be
      made, paid or issued under this Section 3(b) in respect of an Exempt Issuance.
      The Company shall notify the Holder in writing, no later than the Trading Day
      following the issuance of any Common Stock or Common Stock Equivalents subject
      to this Section 3(b), indicating therein the applicable issuance price, or
      applicable reset price, exchange price, conversion price and other pricing
      terms
      (such notice the “Dilutive
      Issuance Notice”).
      For
      purposes of clarification, whether or not the Company provides a Dilutive
      Issuance Notice pursuant to this Section 3(b), upon the occurrence of any
      Dilutive Issuance, after the date of such Dilutive Issuance the Holder is
      entitled to receive Warrant Shares based upon the Base Share Price regardless
      of
      whether the Holder accurately refers to the Base Share Price in the Notice
      of
      Exercise.

     

    c) Pro
      Rata Distributions.
      If the
      Company, at any time prior to the Termination Date, shall distribute to all
      holders of Common Stock (and not to Holders of the Warrants) evidences of its
      indebtedness or assets (including cash and cash dividends) or rights or warrants
      to subscribe for or purchase any security other than the Common Stock (which
      shall be subject to Section 3(b)), then in each such case the Exercise Price
      shall be adjusted by multiplying the Exercise Price in effect immediately prior
      to the record date fixed for determination of stockholders entitled to receive
      such distribution by a fraction of which the denominator shall be the VWAP
      determined as of the record date mentioned above, and of which the numerator
      shall be such VWAP on such record date less the then per share fair market
      value
      at such record date of the portion of such assets or evidence of indebtedness
      so
      distributed applicable to one outstanding share of the Common Stock as
      determined by the Board of Directors in good faith. In either case the
      adjustments shall be described in a statement provided to the Holder of the
      portion of assets or evidences of indebtedness so distributed or such
      subscription rights applicable to one share of Common Stock. Such adjustment
      shall be made whenever any such distribution is made and shall become effective
      immediately after the record date mentioned above.

     

    
      
        
        

      

      
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    d) Fundamental
      Transaction.
      If, at
      any time while this Warrant is outstanding, (A) the Company effects any merger
      or consolidation of the Company with or into another Person, (B) the Company
      effects any sale of all or substantially all of its assets in one or a series
      of
      related transactions, (C) any tender offer or exchange offer (whether by the
      Company or another Person) is completed pursuant to which holders of Common
      Stock are permitted to tender or exchange their shares for other securities,
      cash or property, or (D) the Company effects any reclassification of the Common
      Stock or any compulsory share exchange pursuant to which the Common Stock is
      effectively converted into or exchanged for other securities, cash or property
      (in any such case, a “Fundamental
      Transaction”),
      then,
      upon any subsequent exercise of this Warrant, the Holder shall have the right
      to
      receive, for each Warrant Share that would have been issuable upon such exercise
      immediately prior to the occurrence of such Fundamental Transaction, at the
      option of the Holder, (a) upon exercise of this Warrant, the number of shares
      of
      Common Stock of the successor or acquiring corporation or of the Company, if
      it
      is the surviving corporation, and any additional consideration (the
“Alternate
      Consideration”)
      receivable upon or as a result of such reorganization, reclassification, merger,
      consolidation or disposition of assets by a Holder of the number of shares
      of
      Common Stock for which this Warrant is exercisable immediately prior to such
      event or (b) if the Company is acquired in an all cash transaction, cash equal
      to the value of this Warrant as determined in accordance with the Black-Scholes
      option pricing formula. For purposes of any such exercise, the determination
      of
      the Exercise Price shall be appropriately adjusted to apply to such Alternate
      Consideration based on the amount of Alternate Consideration issuable in respect
      of one share of Common Stock in such Fundamental Transaction, and the Company
      shall apportion the Exercise Price among the Alternate Consideration in a
      reasonable manner reflecting the relative value of any different components
      of
      the Alternate Consideration. If holders of Common Stock are given any choice
      as
      to the securities, cash or property to be received in a Fundamental Transaction,
      then the Holder shall be given the same choice as to the Alternate Consideration
      it receives upon any exercise of this Warrant following such Fundamental
      Transaction. To the extent necessary to effectuate the foregoing provisions,
      any
      successor to the Company or surviving entity in such Fundamental Transaction
      shall issue to the Holder a new warrant consistent with the foregoing provisions
      and evidencing the Holder’s right to exercise such warrant into Alternate
      Consideration. The terms of any agreement pursuant to which a Fundamental
      Transaction is effected shall include terms requiring any such successor or
      surviving entity to comply with the provisions of this Section 3(d) and insuring
      that this Warrant (or any such replacement security) will be similarly adjusted
      upon any subsequent transaction analogous to a Fundamental
      Transaction.

     

    
      
        
        

      

      
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    e) Calculations.
      All
      calculations under this Section 3 shall be made to the nearest cent or the
      nearest 1/100th of a share, as the case may be. For purposes of this Section
      3,
      the number of shares of Common Stock deemed to be issued and outstanding as
      of a
      given date shall be the sum of the number of shares of Common Stock (excluding
      treasury shares, if any) issued and outstanding.

     

    f) Voluntary
      Adjustment By Company.
      The
      Company may at any time during the term of this Warrant reduce the then current
      Exercise Price to any amount and for any period of time deemed appropriate
      by
      the Board of Directors of the Company.

     

    g) Notice
      to Holders.
      

     

    i. Adjustment
      to Exercise Price.
      Whenever the Exercise Price is adjusted pursuant to this Section 3, the Company
      shall promptly mail to each Holder a notice setting forth the Exercise Price
      after such adjustment and setting forth a brief statement of the facts requiring
      such adjustment.

     

    ii. Notice
      to Allow Exercise by Holder.
      If (A)
      the Company shall declare a dividend (or any other distribution) on the Common
      Stock; (B) the Company shall declare a special nonrecurring cash dividend on
      or
      a redemption of the Common Stock; (C) the Company shall authorize the granting
      to all holders of the Common Stock rights or warrants to subscribe for or
      purchase any shares of capital stock of any class or of any rights; (D) the
      approval of any stockholders of the Company shall be required in connection
      with
      any reclassification of the Common Stock, any consolidation or merger to which
      the Company is a party, any sale or transfer of all or substantially all of
      the
      assets of the Company, of any compulsory share exchange whereby the Common
      Stock
      is converted into other securities, cash or property; (E) the Company shall
      authorize the voluntary or involuntary dissolution, liquidation or winding
      up of
      the affairs of the Company; then, in each case, the Company shall cause to
      be
      mailed to the Holder at its last address as it shall appear upon the Warrant
      Register of the Company, at least 10 calendar days prior to the applicable
      record or effective date hereinafter specified, a notice stating (x) the date
      on
      which a record is to be taken for the purpose of such dividend, distribution,
      redemption, rights or warrants, or if a record is not to be taken, the date
      as
      of which the holders of the Common Stock of record to be entitled to such
      dividend, distributions, redemption, rights or warrants are to be determined
      or
      (y) the date on which such reclassification, consolidation, merger, sale,
      transfer or share exchange is expected to become effective or close, and the
      date as of which it is expected that holders of the Common Stock of record
      shall
      be entitled to exchange their shares of the Common Stock for securities, cash
      or
      other property deliverable upon such reclassification, consolidation, merger,
      sale, transfer or share exchange; provided that the failure to mail such notice
      or any defect therein or in the mailing thereof shall not affect the validity
      of
      the corporate action required to be specified in such notice. The Holder is
      entitled to exercise this Warrant during the 10-day period commencing on the
      date of such notice to the effective date of the event triggering such
      notice.

     

    
      
        
        

      

      
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    Section
      4. Transfer
      of Warrant.

     

    a) Transferability.
      This
      Warrant and all rights hereunder are transferable, in whole or in part, upon
      surrender of this Warrant at the principal office of the Company, together
      with
      a written assignment of this Warrant substantially in the form attached hereto
      duly executed by the Holder or its agent or attorney and funds sufficient to
      pay
      any transfer taxes payable upon the making of such transfer. Upon such surrender
      and, if required, such payment, the Company shall execute and deliver a new
      Warrant or Warrants in the name of the assignee or assignees and in the
      denomination or denominations specified in such instrument of assignment, and
      shall issue to the assignor a new Warrant evidencing the portion of this Warrant
      not so assigned, and this Warrant shall promptly be cancelled. A Warrant, if
      properly assigned, may be exercised by a new holder for the purchase of Warrant
      Shares without having a new Warrant issued. 

     

    b) New
      Warrants.
      This
      Warrant may be divided or combined with other Warrants upon presentation hereof
      at the aforesaid office of the Company, together with a written notice
      specifying the names and denominations in which new Warrants are to be issued,
      signed by the Holder or its agent or attorney. Subject to compliance with
      Section 4(a), as to any transfer which may be involved in such division or
      combination, the Company shall execute and deliver a new Warrant or Warrants
      in
      exchange for the Warrant or Warrants to be divided or combined in accordance
      with such notice.

     

    c) Warrant
      Register.
      The
      Company shall register this Warrant, upon records to be maintained by the
      Company for that purpose (the “Warrant
      Register”),
      in
      the name of the record Holder hereof from time to time. The Company may deem
      and
      treat the registered Holder of this Warrant as the absolute owner hereof for
      the
      purpose of any exercise hereof or any distribution to the Holder, and for all
      other purposes, absent actual notice to the contrary.

     

    Section
      5. Miscellaneous.

     

    a) Title
      to Warrant.
      Prior
      to the Termination Date and subject to compliance with applicable laws and
      Section 4 of this Warrant, this Warrant and all rights hereunder are
      transferable, in whole or in part, at the office or agency of the Company by
      the
      Holder in person or by duly authorized attorney, upon surrender of this Warrant
      together with the Assignment Form annexed hereto properly endorsed.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    b) No
      Rights as Shareholder Until Exercise.
      This
      Warrant does not entitle the Holder to any voting rights or other rights as
      a
      shareholder of the Company prior to the exercise hereof. Upon the surrender
      of
      this Warrant and the payment of the aggregate Exercise Price (or by means of
      a
      cashless exercise), the Warrant Shares so purchased shall be and be deemed
      to be
      issued to such Holder as the record owner of such shares as of the close of
      business on the later of the date of such surrender or payment.

     

    c) Loss,
      Theft, Destruction or Mutilation of Warrant.
      The
      Company covenants that upon receipt by the Company of evidence reasonably
      satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
      or any stock certificate relating to the Warrant Shares, and in case of loss,
      theft or destruction, of indemnity or security reasonably satisfactory to it
      (which, in the case of the Warrant, shall not include the posting of any bond),
      and upon surrender and cancellation of such Warrant or stock certificate, if
      mutilated, the Company will make and deliver a new Warrant or stock certificate
      of like tenor and dated as of such cancellation, in lieu of such Warrant or
      stock certificate.

     

    d) Saturdays,
      Sundays, Holidays, etc.
      If the
      last or appointed day for the taking of any action or the expiration of any
      right required or granted herein shall be a Saturday, Sunday or a legal holiday,
      then such action may be taken or such right may be exercised on the next
      succeeding day not a Saturday, Sunday or legal holiday.

     

    e) Authorized
      Shares.
      

     

    The
      Company covenants that during the period the Warrant is outstanding, it will
      reserve from its authorized and unissued Common Stock a sufficient number of
      shares to provide for the issuance of the Warrant Shares upon the exercise
      of
      any purchase rights under this Warrant. The Company further covenants that
      its
      issuance of this Warrant shall constitute full authority to its officers who
      are
      charged with the duty of executing stock certificates to execute and issue
      the
      necessary certificates for the Warrant Shares upon the exercise of the purchase
      rights under this Warrant. The Company will take all such reasonable action
      as
      may be necessary to assure that such Warrant Shares may be issued as provided
      herein without violation of any applicable law or regulation, or of any
      requirements of the Trading Market upon which the Common Stock may be listed.
      

     

    Except
      and to the extent as waived or consented to by the Holder, the Company shall
      not
      by any action, including, without limitation, amending its certificate of
      incorporation or through any reorganization, transfer of assets, consolidation,
      merger, dissolution, issue or sale of securities or any other voluntary action,
      avoid or seek to avoid the observance or performance of any of the terms of
      this
      Warrant, but will at all times in good faith assist in the carrying out of
      all
      such terms and in the taking of all such actions as may be necessary or
      appropriate to protect the rights of Holder as set forth in this Warrant against
      impairment. Without limiting the generality of the foregoing, the Company will
      (a) not increase the par value of any Warrant Shares above the amount payable
      therefor upon such exercise immediately prior to such increase in par value,
      (b)
      take all such action as may be necessary or appropriate in order that the
      Company may validly and legally issue fully paid and nonassessable Warrant
      Shares upon the exercise of this Warrant, and (c) use commercially reasonable
      efforts to obtain all such authorizations, exemptions or consents from any
      public regulatory body having jurisdiction thereof as may be necessary to enable
      the Company to perform its obligations under this Warrant.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Before
      taking any action which would result in an adjustment in the number of Warrant
      Shares for which this Warrant is exercisable or in the Exercise Price, the
      Company shall obtain all such authorizations or exemptions thereof, or consents
      thereto, as may be necessary from any public regulatory body or bodies having
      jurisdiction thereof.

     

    f) Jurisdiction.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Warrant shall be determined in accordance with the provisions of the
      Purchase Agreement.

     

    g) Restrictions.
      The
      Holder acknowledges that the Warrant Shares acquired upon the exercise of this
      Warrant, if not registered, will have restrictions upon resale imposed by state
      and federal securities laws.

     

    h) Nonwaiver
      and Expenses.
      No
      course of dealing or any delay or failure to exercise any right hereunder on
      the
      part of Holder shall operate as a waiver of such right or otherwise prejudice
      Holder’s rights, powers or remedies, notwithstanding the fact that all rights
      hereunder terminate on the Termination Date. If the Company willfully and
      knowingly fails to comply with any provision of this Warrant, which results
      in
      any material damages to the Holder, the Company shall pay to Holder such amounts
      as shall be sufficient to cover any costs and expenses including, but not
      limited to, reasonable attorneys’ fees, including those of appellate
      proceedings, incurred by Holder in collecting any amounts due pursuant hereto
      or
      in otherwise enforcing any of its rights, powers or remedies
      hereunder.

     

    i) Notices.
      Any
      notice, request or other document required or permitted to be given or delivered
      to the Holder by the Company shall be delivered in accordance with the notice
      provisions of the Purchase Agreement.

     

    j) Limitation
      of Liability.
      No
      provision hereof, in the absence of any affirmative action by Holder to exercise
      this Warrant or purchase Warrant Shares, and no enumeration herein of the rights
      or privileges of Holder, shall give rise to any liability of Holder for the
      purchase price of any Common Stock or as a stockholder of the Company, whether
      such liability is asserted by the Company or by creditors of the
      Company.

     

    k) Remedies.
      Holder,
      in addition to being entitled to exercise all rights granted by law, including
      recovery of damages, will be entitled to specific performance of its rights
      under this Warrant. The Company agrees that monetary damages would not be
      adequate compensation for any loss incurred by reason of a breach by it of
      the
      provisions of this Warrant and hereby agrees to waive the defense in any action
      for specific performance that a remedy at law would be adequate.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    l) Successors
      and Assigns.
      Subject
      to applicable securities laws, this Warrant and the rights and obligations
      evidenced hereby shall inure to the benefit of and be binding upon the
      successors of the Company and the successors and permitted assigns of Holder.
      The provisions of this Warrant are intended to be for the benefit of all Holders
      from time to time of this Warrant and shall be enforceable by any such Holder
      or
      holder of Warrant Shares.

     

    m) Amendment.
      This
      Warrant may be modified or amended or the provisions hereof waived with the
      written consent of the Company and the Holder.

     

    n) Severability.
      Wherever possible, each provision of this Warrant shall be interpreted in such
      manner as to be effective and valid under applicable law, but if any provision
      of this Warrant shall be prohibited by or invalid under applicable law, such
      provision shall be ineffective to the extent of such prohibition or invalidity,
      without invalidating the remainder of such provisions or the remaining
      provisions of this Warrant.

     

    o) Headings.
      The
      headings used in this Warrant are for the convenience of reference only and
      shall not, for any purpose, be deemed a part of this Warrant.

     

    ********************

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Company has caused this Warrant to be executed by its
      officer thereunto duly authorized.

     

    Dated:
      October ___, 2006

    
      	 	 	 
	 	APOLLO
              GOLD CORPORATION
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:

              Title:

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    NOTICE
      OF EXERCISE

    

    TO: _____________

    

    (1) The
      undersigned hereby elects to purchase ________ Warrant Shares of the Company
      pursuant to the terms of the attached Warrant (only if exercised in full),
      and
      tenders herewith payment of the exercise price in full, together with all
      applicable transfer taxes, if any.

     

    (2) Payment
      shall take the form of (check applicable box):

     

    o
      in lawful money of the
      United States; or

     

    o
      the cancellation of such number of
      Warrant Shares as is necessary, in accordance with the formula set forth in
      subsection 2(c), to exercise this Warrant with respect to the maximum number
      of
      Warrant Shares purchasable pursuant to the cashless exercise procedure set
      forth
      in subsection 2(c).

     

    (3) Please
      issue a certificate or certificates representing said Warrant Shares in the
      name
      of the undersigned or in such other name as is specified below:

     

    _______________________________

     

    The
      Warrant Shares shall be delivered to the following:

    

    _______________________________

     

    _______________________________

     

    _______________________________

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ASSIGNMENT
      FORM

    

    (To
      assign the foregoing warrant, execute

    this
      form
      and supply required information. 

    Do
      not
      use this form to exercise the warrant.)

    

    FOR
      VALUE
      RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
      assigned to

    

    _______________________________________________
      whose address is

    

    _______________________________________________________________.

    

    

    _______________________________________________________________

    

    Dated:
      ______________, _______

    

    

    Holder’s
      Signature: _____________________________

    

    Holder’s
      Address: _____________________________

     

     
      _____________________________

     

    

    Signature
      Guaranteed: ___________________________________________

     

    NOTE:
      The
      signature to this Assignment Form must correspond with the name as it appears
      on
      the face of the Warrant, without alteration or enlargement or any change
      whatsoever, and must be guaranteed by a bank or trust company. Officers of
      corporations and those acting in a fiduciary or other representative capacity
      should file proper evidence of authority to assign the foregoing
      Warrant.Unassociated Document

    

    THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
      (1) ARE SUBJECT TO THE RESTRICTIONS ON TRANSFER SET FORTH IN SECTIONS 4 AND
      10
      OF THIS WARRANT AND (2) HAVE
      BEEN, OR WILL BE, ACQUIRED FOR INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER
      THE
      SECURITIES ACT OF 1933 OR ANY STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT
      BE
      SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN OPINION OF COUNSEL
      SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH REGISTRATION IS NOT
      REQUIRED.

     

    
      	 Warrant No. 	
               Number
                of Shares:
(subject to
                adjustment)

            

    

    Date
      of
      Issuance: 

     

    APOLLO
      GOLD CORP.

     

    Common
      Stock Purchase Warrant

     

    (Void
      after five years)

     

    Apollo
      Gold Corp., a ________corporation (the “Company”), for value received, hereby
      certifies that Shoreline Pacific, LLC, or its registered assigns (the
“Registered Holder”), is entitled, subject to the terms and conditions set forth
      below, to purchase from the Company, at any time or from time to time commencing
      six months after the date of issuance and on or before 5:00 p.m. (Eastern
      time) on January __, 20__, __________ shares of Common Stock, of the Company,
      at
      a purchase price of $_________ per share. The shares purchasable upon exercise
      of this Warrant, and the purchase price per share, each as adjusted from time
      to
      time pursuant to the provisions of this Warrant, are hereinafter referred to
      as
      the “Warrant Shares” and the “Purchase Price,” respectively.

    

    1.
      Exercise.

    

    (a)
      This
      Warrant may be exercised by the Registered Holder, in whole or in part, by
      surrendering this Warrant, with the purchase form appended hereto as
      Exhibit I duly executed by the Registered Holder or by the Registered
      Holder’s duly authorized attorney, at the principal office of the Company, or at
      such other office or agency as the Company may designate, accompanied by payment
      in full, in lawful money of the United States, of the Purchase Price payable
      in
      respect of the number of Warrant Shares purchased upon such
      exercise.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

      
        

        (b)
          The
          Registered Holder may, at its option, elect to pay some or all of the Purchase
          Price payable upon an exercise of this Warrant by canceling all or a portion
          of
          this Warrant. If the Registered Holder wishes to exercise this Warrant
          by this
          method, the number of Warrant Shares purchaseable (which shall in no event
          exceed the total number of Warrant Shares purchasable under this Warrant
          as set
          forth above), subject to adjustment under Section 2 of this Warrant) shall
          be
          determined as follows:

         

      

    

    X=Y[(A-B)/A];
      where

    

    X=
      the
      number of Warrant Shares to be issued to the Holder.

    

    Y=
      the
      number of Warrant Shares with respect to which this Warrant is being
      exercised.

    

    A=
      the
      Fair Market Value of one share of Common Stock.

    

    B=
      the
      Purchase Price of one share of Common Stock.

    

    The
      Fair
      Market Value per share of Common Stock shall be determined as
      follows:

    

    (i)
      If
      the Common Stock is listed on a national securities exchange, the Nasdaq Stock
      Market or another nationally recognized trading system (including, without
      limitation, the OTC Bulletin Board or any successor and, if the average daily
      trading volume for the preceding 10 days has been at least 100,000 shares,
      the
      Pink Sheets) as of the Exercise Date, the Fair Market Value per share of Common
      Stock shall be deemed to be the average of the high and low reported sale prices
      per share of Common Stock thereon on the three trading days immediately
      preceding the Exercise Date (provided that if no such price is reported on
      such
      day, the Fair Market Value per share of Common Stock shall be determined
      pursuant to clause (ii)).

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    (ii)
      If
      the Common Stock is not listed on a national securities exchange, the Nasdaq
      Stock Market or another nationally recognized trading system as of the Exercise
      Date, the Fair Market Value per share of Common Stock shall be deemed to be
      the
      amount most recently determined by the Board of Directors to represent the
      fair
      market value per share of the Common Stock (including without limitation a
      determination for purposes of granting Common Stock options or issuing Common
      Stock under an employee benefit plan of the Company); and, upon request of
      the
      Registered Holder, the Board of Directors (or a representative thereof) shall
      promptly notify the Registered Holder of the Fair Market Value per share of
      Common Stock. Notwithstanding the foregoing, if the Board of Directors has
      not
      made such a determination within the three-month period prior to the Exercise
      Date, then (A) the Board of Directors shall make a determination of the
      Fair Market Value per share of the Common Stock within 15 days of a request
      by
      the Registered Holder that it do so, and (B) the exercise of this Warrant
      pursuant to this subsection 1(b) shall be delayed until such determination
      is
      made.

    

    (c)
      Each
      exercise of this Warrant shall be deemed to have been effected immediately
      prior
      to the close of business on the day on which this Warrant shall have been
      surrendered to the Company as provided in subsection 1(a) above accompanied
      by
      payment in full of the Purchase Price (the “Exercise Date”). At such time, the
      person or persons in whose name or names any certificates for Warrant Shares
      shall be issuable upon such exercise as provided in subsection 1(d) below shall
      be deemed to have become the holder or holders of record of the Warrant Shares
      represented by such certificates.

    

    (d)
      As
      soon as reasonably practicable after the exercise of this Warrant in full or
      in
      part, the Company, at its expense, will cause to be issued in the name of,
      and
      delivered to, the Registered Holder, or as such Holder (upon payment by such
      Holder of any applicable transfer taxes) may direct:

    

    (i)
      a
      certificate or certificates for the number of full Warrant Shares to which
      the
      Registered Holder shall be entitled upon such exercise plus, in lieu of any
      fractional share to which the Registered Holder would otherwise be entitled,
      cash in an amount determined pursuant to Section 3 hereof; and

    

    (ii)
      in
      case such exercise is in part only, a new warrant or warrants (dated the date
      hereof) of like tenor, calling in the aggregate on the face or faces thereof
      for
      the number of remaining Warrant Shares.

    

    2.
      Adjustments.

    

    (a)
      Adjustment for Stock Splits and Combinations. If the Company shall at any
      time or from time to time after the date on which this Warrant was first issued
      (the “Original Issue Date”) effect a subdivision of the outstanding Common
      Stock, the Purchase Price then in effect immediately before that subdivision
      shall be proportionately decreased. If the Company shall at any time or from
      time to time after the Original Issue Date combine the outstanding shares of
      Common Stock, the Purchase Price then in effect immediately before the
      combination shall be proportionately increased. Any adjustment under this
      paragraph shall become effective at the close of business on the date the
      subdivision or combination becomes effective.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (b)
      Adjustment for Certain Dividends and Distributions. In the event the
      Company at any time, or from time to time after the Original Issue Date shall
      make or issue, or fix a record date for the determination of holders of Common
      Stock entitled to receive, a dividend or other distribution payable in
      additional shares of Common Stock, then and in each such event the Purchase
      Price then in effect immediately before such event shall be decreased as of
      the
      time of such issuance or, in the event such a record date shall have been fixed,
      as of the close of business on such record date, by multiplying the Purchase
      Price then in effect by a fraction:

    

    
      	
            	(1)	
              the
                numerator of which shall be the total number of shares of Common
                Stock
                issued and outstanding immediately prior to the time of such issuance
                or
                the close of business on such record date,
                and

            

    

    

    
      	
            	(2)	
              the
                denominator of which shall be the total number of shares of Common
                Stock
                issued and outstanding immediately prior to the time of such issuance
                or
                the close of business on such record date plus the number of shares
                of
                Common Stock issuable in payment of such dividend or
                distribution;

            

    

    

    provided,
      however, if such record date shall have been fixed and such dividend is not
      fully paid or if such distribution is not fully made on the date fixed therefor,
      the Purchase Price shall be recomputed accordingly as of the close of business
      on such record date and thereafter the Purchase Price shall be adjusted pursuant
      to this paragraph as of the time of actual payment of such dividends or
      distributions.

    

    (c)
      Adjustment in Number of Warrant Shares. When any adjustment is required
      to be made in the Purchase Price pursuant to subsections 2(a) or 2(b), the
      number of Warrant Shares purchasable upon the exercise of this Warrant shall
      be
      changed to the number determined by dividing (i) an amount equal to the
      number of shares issuable upon the exercise of this Warrant immediately prior
      to
      such adjustment, multiplied by the Purchase Price in effect immediately prior
      to
      such adjustment, by (ii) the Purchase Price in effect immediately after
      such adjustment.

    

    (d)
      Adjustments for Other Dividends and Distributions. In the event the
      Company at any time or from time to time after the Original Issue Date shall
      make or issue, or fix a record date for the determination of holders of Common
      Stock entitled to receive, a dividend or other distribution payable in
      securities of the Company (other than shares of Common Stock) or in cash or
      other property (other than cash out of earnings or earned surplus, determined
      in
      accordance with generally accepted accounting principles), then and in each
      such
      event provision shall be made so that the Registered Holder shall receive upon
      exercise hereof, in addition to the number of shares of Common Stock issuable
      hereunder, the kind and amount of securities of the Company and/or cash and
      other property which the Registered Holder would have been entitled to receive
      had this Warrant been exercised into Common Stock on the date of such event
      and
      had the Registered Holder thereafter, during the period from the date of such
      event to and including the Exercise Date, retained any such securities
      receivable, giving application to all adjustments called for during such period
      under this Section 2 with respect to the rights of the Registered
      Holder.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (e)
      Adjustment for Mergers or Reorganizations, etc. If there shall occur any
      reorganization, recapitalization, consolidation or merger involving the Company
      in which the Common Stock is converted into or exchanged for securities, cash
      or
      other property (other than a transaction covered by subsections 2(a), 2(b)
      or 2(d)), then, following any such reorganization, recapitalization,
      consolidation or merger, the Registered Holder shall receive upon exercise
      hereof the kind and amount of securities, cash or other property
      which
      the
      Registered Holder would have been entitled to receive if, immediately prior
      to
      such reorganization, recapitalization, consolidation or merger, the Registered
      Holder had held the number of shares of Common Stock subject to this Warrant.
      Notwithstanding the foregoing sentence, in the event the value of the stock,
      securities or other assets or property (determined in good faith by the Board
      of
      Directors of the Company) issuable or payable with respect to one share of
      the
      Common Stock in connection with such reorganization,
      recapitalization, consolidation or merger is in excess of the Purchase Price
      in
      effect at the time of such reorganization, recapitalization, consolidation
      or
      merger and securities received in such reorganization, recapitalization,
      consolidation or merger, if any, are publicly traded, then this Warrant shall
      expire unless exercised prior to such reorganization, recapitalization,
      consolidation or merger. In any such case, appropriate adjustment (as determined
      in good faith by the Board of Directors of the Company) shall be made in the
      application of the provisions set forth herein with respect to the rights and
      interests thereafter of the Registered Holder, to the end that the provisions
      set forth in this Section 2 (including provisions with respect to changes
      in and other adjustments of the Purchase Price) shall thereafter be applicable,
      as nearly as reasonably may be, in relation to any securities, cash or other
      property thereafter deliverable upon the exercise of this Warrant.

    

    (e)
      Certificate as to Adjustments. Upon the occurrence of each adjustment or
      readjustment of the Purchase Price pursuant to this Section 2, the Company
      at its expense shall promptly compute such adjustment or readjustment in
      accordance with the terms hereof and furnish to the Registered Holder a
      certificate setting forth such adjustment or readjustment (including the kind
      and amount of securities, cash or other property for which this Warrant shall
      be
      exercisable and the Purchase Price) and showing in detail the facts upon which
      such adjustment or readjustment is based. The Company shall, upon the written
      request at any time of the Registered Holder, furnish or cause to be furnished
      to the Registered Holder a certificate setting forth (i) the Purchase Price
      then in effect and (ii) the number of shares of Common Stock and the
      amount, if any, of other securities, cash or property which then would be
      received upon the exercise of this Warrant.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    3.
      Fractional Shares.
      The
      Company shall not be required upon the exercise of this Warrant to issue any
      fractional shares, but shall make an adjustment therefor in cash on the basis
      of
      the Fair Market Value per share of Common Stock, as determined pursuant to
      subsection 1(b) above.

    

    4.
      Requirements for Transfer. (a)
      For a
      period of six months after the issuance date of this Warrant (which shall not
      be
      earlier than the closing date of the offering pursuant to which this Warrant
      is
      being issued), neither this Warrant nor any Warrant Shares issued upon exercise
      of this Warrant shall
      be
      sold, transferred, assigned, pledged, or hypothecated, or be the subject of any
      hedging, short sale, derivative, put, or call transaction that would result
      in
      the effective economic disposition of the securities by any person for a period
      of 180 days immediately following the date of effectiveness or commencement
      of
      sales of the offering pursuant to which this Warrant is being issued, except
      the
      transfer of any security: 

    

    (i)
      by
      operation of law or by reason of reorganization of the Company; 

     

    (ii)
      to
      any NASD member firm participating in the offering and the officers or partners
      thereof, if all securities so transferred remain subject to the lock-up
      restriction in subparagraph 4(a) above for the remainder of the time period;
      

     

    (iii)
      if
      the aggregate amount of securities of the Company held by Shoreline Pacific
      or
      related person do not exceed 1% of the securities being offered; 

     

    (iv)
      that
      is beneficially owned on a pro-rata basis by all equity owners of an investment
      fund, provided that no participating member manages or otherwise directs
      investments by the fund, and participating members in the aggregate do not
      own
      more than 10% of the equity in the fund; 

     

    (v)
      the
      exercise or conversion of any security, if all securities received remain
      subject to the lock-up restriction in subparagraph (g)(1) above for the
      remainder of the time period. 

     

    (b)
      Subject to the foregoing restrictions, the Company agrees that, at any time
      or
      times hereafter (but not more than six (6) years after October 15, 2006), as
      and
      when it intends to register any of its securities under the Securities Act
      of
      1933, as amended (the “Securities Act”) (except in connection with an offering
      on Form S-8 or an offering solely related to an acquisition or exchange on
      a
      Form S-4 or any subsequent similar form) the Company will notify the Holder
      of
      such intention and, upon request from the Holder, will use its reasonable best
      efforts to cause the Warrant Shares designated by the Holder to be registered
      for resale under the Securities Act. The number of Warrant Shares to be included
      in such offering may be reduced if and to the extent that the underwriter of
      securities included in the registration statement and offered by the Company
      shall be of the opinion that such inclusion would adversely affect the marketing
      of the securities to be sold by the Company therein; provided, however, that
      the
      percentage of the reduction of such Warrant Shares shall be no greater than
      the
      percentage reduction of securities of other selling stockholders, as such
      percentage reductions are determined in the good faith judgment of the Company.
      The Company will use its reasonable best efforts to keep such registration
      statement (or another registration statement for such purpose) in effect until
      at least the second anniversary of the Original Issue Date. 

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    5.
      No Impairment.
      The
      Company will not, by amendment of its charter or through any reorganization,
      transfer of assets, consolidation, merger, dissolution, issue or sale of
      securities or any other voluntary action, avoid or seek to avoid the observance
      or performance of any of the terms of this Warrant, but will at all times in
      good faith assist in the carrying out of all such terms and in the taking of
      all
      such action as may be necessary or appropriate in order to protect the rights
      of
      the holder of this Warrant against impairment.

    

    6.
      Notices of Record Date, etc.
      In the
      event:

    

    (a)
      the
      Company shall take a record of the holders of its Common Stock (or other stock
      or securities at the time deliverable upon the exercise of this Warrant) for
      the
      purpose of entitling or enabling them to receive any dividend or other
      distribution, or to receive any right to subscribe for or purchase any shares
      of
      stock of any class or any other securities, or to receive any other right;
      

    

    (b)
      of
      any capital reorganization of the Company, any reclassification of the Common
      Stock of the Company, any consolidation or merger of the Company with or into
      another corporation (other than a consolidation or merger in which the Company
      is the surviving entity and its Common Stock is not converted into or exchanged
      for any other securities or property), or any transfer of all or substantially
      all of the assets of the Company; or

    

    (c)
      of
      the voluntary or involuntary dissolution, liquidation or winding-up of the
      Company, 

    

    then,
      and
      in each such case, the Company will mail or cause to be mailed to the Registered
      Holder a notice specifying, as the case may be, (i) the record date for such
      dividend, distribution or right, and the amount and character of such dividend,
      distribution or right, or (ii) the effective date on which such reorganization,
      reclassification, consolidation, merger, transfer, dissolution, liquidation
      or
      winding-up is to take place, and the time, if any is to be fixed, as of which
      the holders of record of Common Stock (or such other stock or securities at
      the
      time deliverable upon the exercise of this Warrant) shall be entitled to
      exchange their shares of Common Stock (or such other stock or securities) for
      securities or other property deliverable upon such reorganization,
      reclassification, consolidation, merger, transfer, dissolution, liquidation
      or
      winding-up. Such notice shall be mailed at least ten days prior to the record
      date or effective date for the event specified in such notice. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    7.
      Reservation of Stock.
      The
      Company will at all times reserve and keep available, solely for issuance and
      delivery upon the exercise of this Warrant, such number of Warrant Shares and
      other securities, cash and/or property, as from time to time shall be issuable
      upon the exercise of this Warrant.

    

    8.
      Exchange of Warrants.
      Upon the
      surrender by the Registered Holder, properly endorsed, to the Company at the
      principal office of the Company, the Company will, subject to the provisions
      of
      Section 4 hereof, issue and deliver to or upon the order of such Holder, at
      the
      Company’s expense, a new Warrant or Warrants of like tenor, in the name of the
      Registered Holder or as the Registered Holder (upon payment by the Registered
      Holder of any applicable transfer taxes) may direct, calling in the aggregate
      on
      the face or faces thereof for the number of shares of Common Stock (or other
      securities, cash and/or property) then issuable upon exercise of this
      Warrant.

    

    9.
      Replacement of Warrants.
      Upon
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and (in the case of loss, theft or
      destruction) upon delivery of an indemnity agreement (with surety if reasonably
      required) in an amount reasonably satisfactory to the Company, or (in the case
      of mutilation) upon surrender and cancellation of this Warrant, the Company
      will
      issue, in lieu thereof, a new Warrant of like tenor.

    

    10.
      Transfers, etc.

    

    (a)
      The
      Company will maintain a register containing the name and address of the
      Registered Holder of this Warrant. The Registered Holder may change its or
      his
      address as shown on the warrant register by written notice to the Company
      requesting such change.

    

    (b)
      Subject to compliance with applicable securities laws, the legend set forth
      at
      the top of this Warrant and the provisions of Section 4 hereof, this Warrant
      and
      all rights hereunder are transferable, in whole or in part, upon surrender
      of
      this Warrant with a properly executed assignment (in the form of Exhibit II
      hereto) at the principal office of the Company.

    

    (c)
      Until
      any transfer of this Warrant is made in the warrant register, the Company may
      treat the Registered Holder as the absolute owner hereof for all purposes;
      provided, however, that if and when this Warrant is properly assigned in blank,
      the Company may (but shall not be obligated to) treat the bearer hereof as
      the
      absolute owner hereof for all purposes, notwithstanding any notice to the
      contrary.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    11.
      Representations of the Registered Holder.
      The
      Registered Holder of this Warrant represents and warrants to the Company as
      follows:

    

    (a)
      Investment. The Registered Holder is acquiring this Warrant and the
      Warrant Shares issuable upon the exercise of this Warrant, for its own account
      for investment and not with a view to, or for sale in connection with, any
      distribution thereof, nor with any present intention of distributing or selling
      the same, except as otherwise may be permitted under applicable securities
      laws.

    

    (b)
      Authority. The Registered Holder has full power and authority to enter
      into and to perform this Warrant in accordance with its terms. The Registered
      Holder has not been organized specifically for the purpose of investing in
      the
      Company.

    

    (c)
      Accredited Investor. The Registered Holder is an Accredited Investor
      within the definition set forth in Rule 501(a) promulgated under the Securities
      Act. 

    

    12.
      Mailing of Notices, etc.
      All
      notices and other communications from the Company to the Registered Holder
      shall
      be mailed by first-class certified or registered mail, postage prepaid, to
      the
      address last furnished to the Company in writing by the Registered Holder.
      All
      notices and other communications from the Registered Holder or in connection
      herewith to the Company shall be mailed by first-class certified or registered
      mail, postage prepaid, to the Company at its principal office set forth below.
      If the Company should at any time change the location of its principal office
      to
      a place other than as set forth below, it shall give prompt written notice
      to
      the Registered Holder and thereafter all references in this Warrant to the
      location of its principal office at the particular time shall be as so specified
      in such notice.

    

    13.
      No Rights as Stockholder.
      Until
      the exercise of this Warrant, the Registered Holder shall not have or exercise
      any rights by virtue hereof as a stockholder of the Company. Notwithstanding
      the
      foregoing, in the event (i) the Company effects a split of the Common Stock
      by means of a stock dividend and the Purchase Price of and the number of Warrant
      Shares are adjusted as of the date of the distribution of the dividend (rather
      than as of the record date for such dividend), and (ii) the Registered
      Holder exercises this Warrant between the record date and the distribution
      date
      for such stock dividend, the Registered Holder shall be entitled to receive,
      on
      the distribution date, the stock dividend with respect to the shares of Common
      Stock acquired upon such exercise, notwithstanding the fact that such shares
      were not outstanding as of the close of business on the record date for such
      stock dividend.

    

    14.
      Change or Waiver.
      Any term
      of this Warrant may be changed or waived only by an instrument in writing signed
      by the party against which enforcement of the change or waiver is sought.

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    15.
      Section Headings.
      The
      section headings in this Warrant are for the convenience of the parties and
      in
      no way alter, modify, amend, limit or restrict the contractual obligations
      of
      the parties.

    

    16.
      Governing Law.
      This
      Warrant will be governed by and construed in accordance with the internal laws
      of the State of New York (without reference to the conflicts of law provisions
      thereof).

    

    EXECUTED
      as of the Date of Issuance indicated above.

     

    
      	 	 	 
	 	Apollo
              Gold
              Corp.
	 
 	 
 	 
 
	 	By:  	 
	 	 	 
	 	Title:	 
	 	
            
	 	 

    

     

    ATTEST:

    
 

    
      
        

      

    

    
      
        
        

      

      
        10

        
          

        

      

       

    

    EXHIBIT
      I

     

    PURCHASE
      FORM

     

    
      	 To:_________________	
              Dated:____________

            

    

     

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant
      (No. ___), hereby irrevocably elects to purchase (check
      applicable box):

     

    
      	 	
               o

            	
              _____
                shares of the Common Stock covered by such Warrant;
                or

            

    

     

    
      	 	
               o

            	
              the
                maximum number of shares of Common Stock covered by such Warrant
                pursuant
                to the cashless exercise procedure set forth in
                Section 1(b).

            

    

     

    The
      undersigned herewith makes payment of the full purchase price for such shares
      at
      the price per share provided for in such Warrant, which is $________. Such
      payment takes the form of (check
      applicable box or boxes):

    

    
      	 	
               o

            	
              $______
                in lawful money of the United States;
                and/or

            

    

     

    
      	 	
               o

            	
              the
                cancellation of such portion of the attached Warrant as is exercisable
                for
                a total of _____ Warrant Shares (using a Fair Market Value of $_____
                per
                share for purposes of this calculation);
                and/or

            

    

     

    
      	 	
               o

            	
              the
                cancellation of such number of Warrant Shares as is necessary, in
                accordance with the formula set forth in Section 1(b), to exercise
                this Warrant with respect to the maximum number of Warrant Shares
                purchasable pursuant to the cashless exercise procedure set forth
                in
                Section 1(b).

            

    

     

    The
      undersigned hereby makes the representations set forth on Exhibit III of the
      Warrant.

    

     

    Signature: _____________________

     

    Address: ______________________

     

    ______________________

     

    
      
        
        

      

      
        11

        
          

        

      

       

    

    EXHIBIT
      II

     

    ASSIGNMENT
      FORM

     

    FOR
      VALUE
      RECEIVED, ________________________________________ hereby sells, assigns and
      transfers all of the rights of the undersigned under the attached Warrant (No.
      ____) with respect to the number of shares of Common Stock covered thereby
      set
      forth below, unto:

     

    
      	
              Name
                of Assignee

            	 	
              Address

            	 	
              No.
                of Shares

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    

    Dated:
      _____________________ 

    

    Signature:
      ________________________________

     

    Signature
      Guaranteed:
 

    By:
      _______________________

    
       

      The
        signature should be guaranteed by an eligible guarantor institution (banks,
        stockbrokers, savings and loan associations and credit unions with membership
        in
        an approved signature guarantee medallion program) pursuant to Rule 17Ad-15
        under the Securities Exchange Act of 1934.

       

    

     

    
      
        
        

      

      
        12

        
          

        

      

       

    

    Exhibit
      III

    

    INVESTMENT
      REPRESENTATION

     

    This
      agreement must be completed, signed and returned to Alteon Inc. along with
      the
      Purchase Form before the Common Stock issuable upon exercise of this Warrant
      will be issued.

    

    The
      undersigned, __________________________
      ("Purchaser"),
      intends to acquire  
      shares
      of the Common Stock (the "Common Stock") of Alteon Inc. (the "Company") from
      the
      Company pursuant to the exercise or conversion of a certain Warrant to purchase
      Common Stock held by Purchaser. The Common Stock will be issued to Purchaser
      in
      a transaction not involving a public offering and pursuant to an exemption
      from
      registration under the Securities Act of 1933, as amended (the "Securities
      Act")
      and applicable state securities laws. In connection with such purchase and
      in
      order to comply with the exemptions from registration relied upon by the
      Company, Purchaser represents, warrants and agrees as follows:

    

    Purchaser
      is acquiring the Common Stock for its own account for investment and not with
      a
      view to, or for sale in connection with, any distribution thereof, nor with
      any
      present intention of distributing or selling the same, except as otherwise
      may
      be permitted under applicable securities laws. 

    

    Purchaser
      has full power and authority to enter into and to perform the Purchase Form
      to
      which this letter is attached. Purchaser has not been organized specifically
      for
      the purpose of investing in the Company.

    

    Purchaser
      is an Accredited Investor within the definition set forth in Rule 501(a)
      promulgated under the Securities Act. 

    

    Purchaser
      has been advised that the Common Stock has not been registered under the
      Securities Act or state securities laws on the ground that this transaction
      is
      exempt from registration, and that reliance by the Company on such exemptions
      is
      predicated in part on Purchaser's representations set forth in this
      letter.

    

    Purchaser
      has been informed that under the Securities Act, the Common Stock must be held
      indefinitely unless it is subsequently registered under the Securities Act
      or
      unless an exemption from such registration (such as Rule 144) is available
      with
      respect to any proposed transfer or disposition by Purchaser of the Common
      Stock. Purchaser further agrees that the Company may refuse to permit Purchaser
      to sell, transfer or dispose of the Common Stock (except as permitted under
      Rule
      144) unless there is in effect a registration statement under the Securities
      Act
      and any applicable state securities laws covering such transfer, or unless
      Purchaser furnishes an opinion of counsel reasonably satisfactory to counsel
      for
      the Company, to the effect that such registration is not required.

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

    Purchaser
      also understands and agrees that there will be placed on the certificate(s)
      for
      the Common Stock, or any substitutions therefor, a legend stating in
      substance:

    

      "The
        shares represented by this certificate have not been registered under the
        Securities Act of 1933, as amended (the "Securities Act"), or any state
        securities laws. These shares have been acquired for investment and may not
        be
        sold or otherwise transferred in the absence of an effective registration
        statement for these shares under the Securities Act and applicable state
        securities laws, or an opinion of counsel satisfactory to the Company that
        registration is not required and that an applicable exemption is
        available."

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    Purchaser
      has carefully read this letter and has discussed its requirements and other
      applicable limitations upon Purchaser's resale of the Common Stock with
      Purchaser's counsel.

     

    
      	 	 Very truly yours,
	 	 
	 	 
	 	
               By:

              
                

              
Title:

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