Document:

Exhibit 4.12

AGENCY AGREEMENT

November 3, 2005

CROSSHAIR EXPLORATION & MINING CORP.

Suite 2300, 1066 West Hastings Street

Vancouver, BC  V6E 3X2

Attention:

Mark Morabito, President and CEO

Dear Sirs:

Re:

Private Placement of Common Share Units and Flow-Through Units

We, Pacific International Securities Inc, understand that Crosshair Exploration & Mining Corp. (the “Corporation”) proposes to undertake a private placement of up to 4,000,000 flow-through units (the “FT Units”) having the attributes specified in this agreement (the “Agreement”), at a price of $1.00 per FT Unit and up to 7,500,000 non-flow-through units (the “Common Share Units” and collectively with the “FT Units”, the “Offered Securities”) at a price of $0.80 per Common Share Unit, for aggregate gross proceeds of up to $10,000,000, subject to an over-allotment option. The over-allotment option (the “Over-Allotment Option”) will allow the Agent to offer for sale up to 3,750,000 additional Common Share Units for further gross proceeds of up to $3,000,000. Subject to the terms and conditions set forth in this Agreement, the Corporation hereby appoints the Agent to act as the Corporation’s exclusive agent and the Agent accepts the appointment and agrees to act as an agent of the Corporation and to use its commercially reasonable best efforts to find and introduce to the Corporation potential Purchasers (as defined herein) to purchase, by way of private placement, the Offered Securities. The Agent is under no obligation to purchase any of the Offered Securities, although the Agent may subscribe for Offered Securities if it so desires.

1.

Definitions

1.1

In this Agreement, including any Schedules forming a part of this Agreement:

(a)

“$” refers to Canadian dollars;

(b)

“1933 Act” means the United States Securities Act of 1933, as amended;

(c)

“1934 Act” means the United States Securities Exchange Act of 1934, as amended;

(d)

“Accredited Investor” means, for Purchasers resident in British Columbia, Alberta or Ontario, a Purchaser who qualifies as an “accredited investor” pursuant to National Instrument 45-106 – Prospectus and Registration Exemptions (hereinafter “NI 45-106”).

(e)

 “Agent” means Pacific International Securities Inc.;

(f)

“Agent’s Expenses” has the meaning given to that term in section ;

(g)

“Agent’s Fee” has the meaning given to that term in section ;

(h)

“Agreement” means this agreement and includes all Schedules and exhibits attached hereto, in each case as they may be amended or supplemented from time to time;

(i)

“Applicable Securities Laws” means, in respect of each and every offer or sale of Common Share Units and FT Units, the applicable securities legislation, rules, policies, notices and orders of each of the Qualifying Jurisdictions;

(j)

“Canadian Applicable Securities Laws” means the applicable securities legislation, rules, policies, notices and orders of each of the Provinces of British Columbia, Alberta and Ontario;

(k)

“Closing” has the meaning given to that term in section ;

(l)

“Closing Date” has the meaning given to that term in section ;

(m)

“Common Share” means a non-flow-through common share of the Corporation forming part of a Unit to be offered for sale by the Agent under the terms and conditions of this Agreement, and “Common Shares” means more than one Common Share;

(n)

“Common Share Unit” means a unit of the Corporation to be offered for sale by the Agent under the terms and conditions of this Agreement, including any Common Share Units sold pursuant to the Over-Allotment Option, each Common Share Unit consisting of (a) one Common Share and (b) one-half of one Warrant, and “Common Share Units” means more than one Common Share Unit.

(o)

“Compensation Option” has the meaning given to that term in section , and “Compensation Options” means more than one Compensation Option; 

(p)

“Compensation Option Share” has a meaning given to that term in section , and “Compensation Option Shares” means more than one Compensation Option Share;

(q)

“Directed Selling Efforts” means “directed selling efforts” as defined in Rule 902(b) of Regulation S;

(r)

“Distribution” has the meaning given to that term under Canadian Applicable Securities Laws;

(s)

“Exchange” means the TSX Venture Exchange;

(t)

“Exchange Conditions” has the meaning given to that term in section ;

(u)

“Fee Share” has the meaning given to that term in section 10.1, and “Fee Shares” means more than one Fee Share;

(v)

“Fee Unit” has the meaning given to that term in section 10.1, and “Fee Units” means more than one Fee Unit;

(w)

“Fee Warrant” has the meaning given to that term in section 10.1, and “Fee Warrants” means more than one Fee Warrant;

(x)

“Fee Warrant Share” has the meaning given to that term in section 10.1, and “Fee Warrant Shares” means more than one Fee Warrant Share;

(y)

“Financial Statements” means the financial statements of the Corporation described in paragraph ;

(z)

“Foreign Private Issuer” means a “foreign private issuer” as such term is used in Regulation S;

(aa)

“FT Share” means a flow-through common share of the Corporation forming part of the FT Unit to be offered for sale by the Agent under the terms and conditions of this Agreement, and “FT Shares” means more than one FT share;

(bb)

“FT Unit” means a unit of the Corporation to be offered for sale by the Agent under the terms and conditions of this Agreement, each FT Unit consisting of (a) one FT Share and (b) one-half of one FT Warrant, and “FT Units” means more than one FT Unit;

(cc)

“FT Warrant” means a transferable non-flow-through common share purchase warrant of the Corporation, one-half of which forms part of an FT Unit, having the attributes described in section 3.5, and “FT Warrants” means more than one FT Warrant;

(dd)

“FT Warrant Share” means a non-flow-through common share of the Corporation to be issued upon exercise of one or more FT Warrants, and “FT Warrant Shares” means more than one FT Warrant Share;

(ee)

“Indemnified Persons” has the meaning given to that term in section ;

(ff)

“Material Change” has the meaning given to that term under Canadian Applicable Securities Laws;

(gg)

“Material Fact” has the meaning given to that term under Canadian Applicable Securities Laws;

(hh)

“Misrepresentation” has the meaning given to that term under Canadian Applicable Securities Laws;

(ii)

“Net Proceeds” has the meaning given to that term in section ;

(jj)

“Offered Securities” means the Common Share Units and the FT Units.

(kk)

“Private Placement” means the offering and sale of the Common Share Units and the FT Units pursuant to the terms and conditions of this Agreement;

(ll)

“Purchaser” means a person that subscribes for and purchases any of the Offered Securities under the Private Placement and “Purchasers” means more than one Purchaser;

(mm)

“Qualifying Jurisdictions” means the Provinces of British Columbia, Alberta and Ontario, the United States and such other jurisdictions in Canada and outside Canada which are agreed to by the Corporation and the Agents;

(nn)

“Regulation D” means Regulation D promulgated under the 1933 Act;

(oo)

“Regulation S” means Regulation S promulgated under the 1933 Act;

(pp)

“Regulatory Authorities” means the securities regulatory authorities in each of the Qualifying Jurisdictions;

(qq)

“Rule 904” means Rule 904 of Regulation S;

(rr)

“Securities” means the Common Share Units, FT Units, Common Shares, FT Shares, Warrants, FT Warrants, Warrant Shares, and FT Warrant Shares;

(ss)

“Subscription Agreement” means the agreement between the Corporation and a Purchaser pursuant to which the Purchaser subscribes for Common Share Units or FT Units and includes all Schedules thereto, in each case as they may be amended or supplemented from time to time;

(tt)

“Subscription Proceeds” means the aggregate gross subscription proceeds paid by the Purchasers for the Common Share Units and FT Units, including any proceeds paid for the Common Share Units sold pursuant to the Over-Allotment Option;

(uu)

“Substantial US Market Interest” means “substantial US market interest” as defined in Regulation S;

(vv)

“Time of Closing” has the meaning given to that term in section ;

(ww)

“United States” and “US” mean “United States” as defined in Regulation S;

(xx)

“US Accredited Investor” means an “accredited investor” as defined in Rule 501(a) of Regulation D;

(yy)

“US Accredited Investor Certificate” means the U.S. Accredited Investor Certificate for US Purchasers attached as Appendix II to the Subscription Agreement;

(zz)

“US Affiliate” means the US registered broker-dealer affiliate(s) of the Agent;

(aaa)

“US Offeree” means any person in the United States to whom the Common Share Units are offered, irrespective of whether that person subscribes for and purchases the Securities;

(bbb)

“US Person” means “U.S. person” as defined in Regulation S.

(ccc)

“US Purchaser” means (a) any US Person purchasing the Common Share Units, (b) any person purchasing the Common Share Units in the United States, (c) any person purchasing Common Share Units on behalf of any person in the United States or US Person, (d) any person that receives or received an offer of the Common Share Units while in the United States, and (e) any person that is in the United States at the time the subscriber’s buy order was or the Subscription Agreement is executed or delivered;

(ddd)

“Warrant” means a transferable common share purchase warrant, one-half of which forms part of each of a Common Share Unit, having the attributes described in section , and “Warrants” means more than one Warrant; and

(eee)

“Warrant Share” means a common share of the Corporation to be issued upon the exercise of one or more Warrants, and “Warrant Shares” means more than one Warrant Share.

2.

Appointment of Agent

2.1

The Corporation appoints the Agent as its exclusive agent and the Agent accepts the appointment and agrees to act as an agent of the Corporation to use its best efforts to find and introduce to the Corporation potential Purchasers to purchase, by way of private placement, up to 4,000,000 FT Units at a price of $1.00 per FT Unit and up to 7,500,000 Common Share Units at a price of $0.80 per Common Share Unit.

2.2

The Corporation grants to the Agent the Over-Allotment Option to sell up to an additional 3,750,000 Common Share Units at a price of $0.80 per Common Share Unit, such Over-Allotment Option being exercisable by the Agent at any time prior to the Closing Date.

2.3

The Agent is under no obligation to purchase any of the Offered Securities, although the Agent may subscribe for Offered Securities if it so desires.

3.

Offering Terms

3.1

The Offered Securities will be offered for sale by the Agent to Purchasers resident in the Qualifying Jurisdictions.

3.2

The sale of the Offered Securities to Purchasers is to be effected by the Agent in a manner exempt from any prospectus or offering memorandum filing or delivery requirements of the Applicable Securities Laws and without the necessity of obtaining any order or ruling of the Regulatory Authorities and, for offers and sales in the United States, in accordance with the requirements of the exemption from registration from US federal and state securities laws available under Rule 506 of Regulation D.  The Agent will notify the Corporation with respect to the identity and jurisdiction of residence of each Purchaser (and for offers in the United States, with respect to the jurisdiction of each US Offeree and US Purchaser) as soon as practicable and with a view to affording sufficient time to allow the Corporation to secure compliance with all Applicable Securities Laws in connection with the sale of the Offered Securities to the Purchasers and offers of the Offered Securities to US Purchasers.

3.3

The Agent will obtain from each Purchaser a properly completed and duly executed Subscription Agreement and a properly completed and duly executed form of Accredited Investor Certificate or US Subscription Agreement and Accredited Investor Certificate, as applicable, each in the form attached as a Schedule to the Subscription Agreement.

3.4

If, in the opinion of the Agent, it is necessary, the Agent will form, manage and participate in a group of sub-agents to offer and sell the Offered Securities as provided for hereunder. Each sub-agent shall be appropriately registered under the Applicable Securities Laws so as to permit it to lawfully offer and sell the Offered Securities in such jurisdictions in which it offers and sells the Offered Securities.  In the event that a selling group is formed, the Agent will:

(a)

manage the selling group as and to the extent customary in the securities industry in Canada; and

(b)

require each member of the selling group to offer and sell the Offered Securities on the terms set forth in this Agreement.

3.5

Each FT Unit will consist of one FT Share and one-half of one FT Warrant.  Each whole FT Warrant will entitle the holder to purchase one FT Warrant Share for a period of two years from the Closing Date at a price of $1.75 per FT Warrant Share.  The FT Shares will have the attributes described in the form of Subscription Agreement for FT Units and the Agent shall have the benefit of the representations, warranties and covenants with respect to the FT Shares made by the Corporation in such form of Subscription Agreement as if such representation, warranties and covenants were contained herein.

3.6

Each Common Share Unit will consist of one Common Share and one-half of one Warrant. Each whole Warrant will entitle the holder to purchaser one Warrant Share for a period of two years from the Closing Date at a price of $1.25 per Warrant Share. 

3.7

The Corporation covenants to satisfy as expeditiously as possible each of the conditions of the Exchange (the “Exchange Conditions”) required to be satisfied prior to the Exchange’s acceptance of the Corporation’s notice of the Private Placement.

3.8

The terms and conditions of the Warrants, the FT Warrants, the Compensation Options, and the Fee Warrants and the attributes and characteristics of the Warrants, the FT Warrants, the Compensation Options and the Fee Warrants will be substantially as described in this Agreement subject to the changes, if any, that the Corporation and the Agent (on its behalf and, with respect to the Warrants and FT Warrants, on behalf of the Purchasers) may agree to.

3.9

The Private Placement has not been and will not be advertised in any way.

3.10

No selling or promotional expenses will be paid or incurred in connection with the Private Placement, except for professional services or for services performed by a registered dealer.

3.11

The Agent acknowledges that the Securities have not been, and will not be, registered under the 1933 Act or applicable state securities laws and may not be offered or sold except outside the United States in accordance with Regulation S or, for offers in the United States, by the Agent through the US Affiliate, and sale by the Corporation, pursuant to Rule 506 of Regulation D in the manner described in paragraph (b) below (the “US Private Placement”).  Accordingly, the Agent represents, warrants and covenants to the Corporation, without limiting the generality of section  of this Agreement, that, with respect to each offer or sale of Securities, either (a) or (b) immediately following is true as of the date of this Agreement and as of the Time of Closing and the Closing Date, which such representations, warranties and covenants shall survive the completion of the transactions contemplated under this Agreement:

(a)

it has offered and sold, and will offer and sell, Securities outside the United States only in accordance with Rule 903 of Regulation S and accordingly, neither the Agent, its affiliates nor any persons acting on their behalf, has made or will make:

(i)

except as permitted under (b) in respect of the US Private Placement, any offer to sell, or any solicitation of an offer to buy, any Securities to any person in the United States or to, or for the account or benefit of, a US Person;

(ii)

any sale of Securities to any Purchaser unless, at the time the buy order was or will have been originated, the Purchaser was outside the United States and not a US Person, or the Agent, or such affiliate or person acting on behalf of the Agent, reasonably believed that such Purchaser was outside the United States and not a US Person; or

(iii)

any Directed Selling Efforts in the United States with respect to the Securities;

(b)

it has offered and sold, and will offer and sell, Securities to persons in the United States or to, or for the account or benefit of, US Persons, only in the following manner:

(i)

the Agent has and will offer and sell the Securities in the United States only through its US Affiliate (if applicable), which was and is on the dates of such offers and sales a duly registered broker or dealer pursuant to Section 15(b) of the 1934 Act and under the securities laws of each state in which such offers and sales were or are made (unless exempted from the respective state’s broker-dealer registration requirements) and was and is a member in good standing with the National Association of Securities Dealers, Inc.;

(ii)

immediately prior to soliciting offerees, the Agent has or will have reasonable grounds to believe and did or will believe that each US Offeree and each US Purchaser was and is an US Accredited Investor;

(iii)

no form of general solicitation or general advertising (as those terms are used in Regulation D) has been or will be used by the Agent or its affiliates, including advertisements, articles, notices or other communications published in any newspaper, magazine, or similar media or broadcast over radio or television, or any seminar or meeting whose attendees had been invited by general solicitation or general advertising, in connection with the offer or sale of the Offered Securities in the United States;

(iv)

any offer, sale or solicitation of an offer to buy Securities that has been made or will be made in the United States or to US Persons was or will be made only to US accredited investors by the Agent through its US Affiliate (if applicable), and in transactions that are exempt from registration under the 1933 Act and any applicable state securities laws and in accordance with any applicable US federal or state laws or regulations governing the registration and conduct of securities brokers and dealers;

(v)

all US Offerees and US Purchasers shall be informed that the Securities have not been and will not be registered under the 1933 Act and the Securities are being offered and sold to such purchasers in reliance on an exemption from the registration requirements of the 1933 Act for non-public offerings. Each US Offeree and each US Purchaser shall be provided with disclosure substantially as follows: “The Securities have not been and will not be registered under the US Securities Act of 1933, as amended (the “1933 Act”) and are being offered and sold within the United States only to accredited investors (as defined in Rule 501(a) of Regulation D under the 1933 Act).  Prospective purchasers of the Securities are hereby notified that the seller of the Securities is relying upon the exemption from the provisions of Section 5 of the 1933 Act provided in Section 4(2) of the 1933 Act for non-public offerings. The Securities offered hereby are not transferable except in accordance with the restrictions described herein.”;

(vi)

as a condition of the purchase of the Securities, each US Purchaser will be required to execute and deliver to the Agent the US Accredited Investor Certificate to the foregoing effect, among other terms and conditions;

(vii)

neither the Agent, its affiliates or any person acting on its behalf (other than the Corporation, its affiliates and any person acting on their behalf, as to which no representation is made) has taken or will take, directly or indirectly, any action in violation of Regulation M under the 1934 Act in connection with the offer and sale of the Securities; and

(c)

the Agent and its US Affiliate make the representations and warranties set out in Exhibit “1” – Agent’s Certificate.

4.

Representations and Warranties of the Corporation

4.1

The Corporation represents and warrants to the Agent (each on its own behalf and on behalf of the Purchasers), and acknowledges that the Agent is relying upon such representations and warranties in entering into this Agreement, that:

(a)

the Corporation has no subsidiaries;

(b)

the Corporation is a valid and subsisting corporation duly existing and in good standing under the Business Corporations Act (British Columbia); 

(c)

the Corporation is a reporting issuer in the Provinces of British Columbia and Alberta, has been a reporting issuer in such Provinces for the four months immediately preceding the date hereof and, to the best of its knowledge, is not in default of any of the requirements of the Canadian Applicable Securities Laws;

(d)

the authorized capital of the Corporation consists of an unlimited number common shares without par value, of which 40,626,700 common shares are issued and outstanding as of the date hereof as fully paid and non-assessable shares (the “Issued Shares”);

(e)

the common shares of the Corporation are listed and posted for trading on the Exchange and the Corporation has not been advised by the Exchange that it is in default of any of the listing requirements of the Exchange;

(f)

except for the Issued Shares, the Common Shares and the Warrants comprising the Common Share Units, the FT Shares and FT Warrants comprising the FT Units, the Fee Shares and the Fee Warrants comprising the Fee Units, and the Compensation Options and any options, warrants, agreements and convertible notes disclosed in Schedule “A” to this Agreement, there are no, nor will there be immediately prior to the Time of Closing, documents, instruments or other writings of any kind whatsoever which constitute a “security” (as that term is defined under Canadian Applicable Securities Laws) of the Corporation;

(g)

subject to due exercise of the instruments pursuant to which they are issued, if any, upon their issuance, the Common Shares, the Warrant Shares, the FT Shares, the FT Warrant Shares, the Agent’s Option Shares, the Fee Shares, and the Fee Warrant Shares will be validly issued and outstanding as fully paid and non-assessable common shares of the Corporation;

(h)

upon their issuance, the Warrants, the FT Warrants, the Compensation Options, and the Fee Warrants will be validly created, issued and outstanding, registered in the names of the holders thereof;

(i)

all of the material transactions of the Corporation have been promptly and properly recorded or filed in or with the books or records of the Corporation and the minute books of the Corporation contain all records of the meetings and proceedings of the Corporation’s directors, shareholders and other committees, if any, since January 1, 2003;

(j)

the Corporation holds all material licences and permits that are required for carrying on its business in the manner in which such business has been carried on and each of the foregoing is in full force and effect;

(k)

the Corporation has the corporate power and capacity to own the assets owned by it and to carry on the business carried on by it and the Corporation is duly qualified to carry on business in all jurisdictions in which it carries on business;

(l)

the Corporation has good and marketable title to its assets free and clear of all liens, charges and encumbrances of any kind whatsoever except as set out in Schedule “D”;

(m)

the Corporation holds either freehold title, mining leases, mining claims or other conventional property, proprietary or contractual interests or rights, recognized in the jurisdiction in which a particular property is located, in respect of the ore bodies and minerals located in properties in which the Corporation has an interest under valid, subsisting and enforceable title documents or other recognized and enforceable agreements or instruments, sufficient to permit the Corporation to explore the minerals relating thereto, all such property, leases or claims and all property, leases or claims in which the Corporation has any interest or right have been validly located and recorded in accordance with all applicable laws and are valid and subsisting, the Corporation has all necessary surface rights, access rights and other necessary rights and interests relating to the properties in which the Corporation has an interest granting the Corporation the right and ability to explore for minerals, ore and metals for development purposes as are appropriate in view of the rights and interest therein of the Corporation, with only such exceptions as do not materially interfere with the use made by the Corporation of the rights or interests so held, and each of the proprietary interests or rights and each of the documents, agreements and instruments and obligations relating thereto referred to above is currently in good standing in the name of the Corporation;

(n)

the Corporation is current with all material filings required to be made in all jurisdictions in which it exists or carries on any material business and the Corporation is not in default of any filings required to be made under Applicable Securities Laws;

(o)

since January 1, 2003, all prospectuses, annual information forms, material change reports, shareholder communications, press releases and other disclosure documents of the Corporation, including all publicly filed financial statements, contain no untrue statement of a Material Fact as at the date thereof nor do they omit to state a Material Fact which, at the date thereof, was required to have been stated or was necessary to prevent a statement that was made from being false or misleading in the circumstances in which it was made and were prepared in accordance with and complied with Applicable Securities Laws;

(p)

the audited consolidated financial statements of the Corporation for its fiscal year ended April 30, 2005 and the unaudited financial statements of the Corporation for the period ended July 31, 2005 (the “Financial Statements”) are true and correct in every material respect and present fairly and accurately the financial position and results of the operations of the Corporation for the periods then ended and the Financial Statements have been prepared in accordance with generally accepted accounting principles applied on a consistent basis;

(q)

there are no material liabilities of the Corporation, whether direct, indirect, absolute, contingent or otherwise which are not disclosed or reflected in the Corporation’s Financial Statements except those incurred in the ordinary course of business of the Corporation since July 31, 2005 which are recorded in the books and records of the Corporation;

(r)

since July 31, 2005 there has not been any adverse Material Change of any kind whatsoever in the financial position or condition of the Corporation, or any damage, loss or other change of any kind whatsoever in circumstances materially affecting the business or assets of the Corporation, or the right or capacity of the Corporation to carry on its business;

(s)

the contracts and agreements set out in Schedule “B” hereto constitute all of the material contracts and agreements of the Corporation, and all such contracts and agreements are in good standing in all material respects and not in default in any respect;

(t)

all tax returns and reports of the Corporation required by law to have been filed have been filed and are substantially true, complete and correct and all taxes and other government charges of any kind whatsoever of the Corporation have been paid or accrued in the Financial Statements;

(u)

the Corporation has established on its books and records reserves which are adequate for the payment of all taxes not yet due and payable and there are no liens for taxes on the assets of the Corporation except for taxes not yet due, and there are no audits of any of the tax returns of the Corporation which are known by the Corporation’s management to be pending, and there are no claims which have been or may be asserted relating to any such tax returns which, if determined adversely, would result in the assertion by any governmental agency of any deficiency which would have a material adverse effect on the properties, business or assets of the Corporation;

(v)

except as disclosed on Schedule “C” hereto, there are no actions, suits, judgments, investigations or proceedings of any kind whatsoever outstanding, pending or, to the best of its knowledge, threatened against or affecting the Corporation or its directors, officers or promoters at law or in equity or before or by any federal, provincial, state, municipal or other governmental department, commission, board, bureau or agency of any kind whatsoever which would result in an adverse Material Change in the financial position, business or prospects of the Corporation and there is no basis therefor;

(w)

neither the Corporation nor any of its directors, officers and promoters are in breach of any law, ordinance, statute, regulation, by-law, order or decree of any kind whatsoever which breach would have a material adverse effect on the financial position, business or prospects of the Corporation;

(x)

the Corporation has all requisite power and capacity and good and sufficient right and authority to enter into, deliver and carry out its obligations under this Agreement and the Subscription Agreements and to complete the transactions contemplated under this Agreement on the terms and conditions set forth herein; 

(y)

this Agreement has been authorized, executed and delivered by the Corporation and constitutes a valid and legally binding obligation of the Corporation enforceable against the Corporation in accordance with the terms thereof and, upon being executed and delivered, each of the Subscription Agreements and the certificates representing the Warrants, the FT Warrants, the Compensation Options, and Fee Warrants will constitute a valid and legally binding obligation of the Corporation enforceable against the Corporation in accordance with the terms thereof;

(z)

the execution and delivery of this Agreement and the Subscription Agreements, the performance of its obligations under this Agreement and the completion of the transactions contemplated under this Agreement will not conflict with, or result in the breach of or the acceleration of any indebtedness under, or constitute default under, the Memorandum or Articles of the Corporation or any indenture, mortgage, agreement, lease, licence or other instrument of any kind whatsoever to which the Corporation is a party or by which it or any of its properties or assets is bound, or any statute or any judgment, decree, order, rule, policy or regulation of any court, governmental authority or administrative body of any kind whatsoever applicable to the Corporation or any of its properties or assets, which could have a material adverse effect on the condition, business, properties or results of operations of the Corporation; and

(aa)

no action has been taken by any persons which would in any way limit, restrict or cause interference with any mineral exploration and development work which the Corporation currently proposes to carry out on the Corporation’s mineral properties.

4.2

The Corporation further represents, warrants, covenants and agrees that:

(a)

the Corporation is a Foreign Private Issuer and reasonably believes that, both at the commencement of the Private Placement and the Closing Date, there is no Substantial US Market Interest in the Securities;

(b)

it is not, and agrees to use its best efforts not to become, at any time prior to the expiration of three years after the Closing Date, an “investment company” as defined in the United States Investment Company Act of 1940;

(c)

the Corporation is not required to file reports under Section 13(a) or Section 15(d) of the 1934 Act;

(d)

except with respect to the offer and sale of the Securities offered hereby, the Corporation has not, for a period of six months prior to the commencement of the offering of the Securities, sold, offered for sale or solicited any offer to buy any of its securities in the United States, or to, or for the account or benefit of, a US Person in a manner that would be integrated with the offer and sale of the Securities and would cause the exemption from registration set forth in Rule 506 of Regulation D to become unavailable with respect to the offer and sale of the Securities; 

(e)

neither the Corporation nor any of the predecessors or affiliates thereof has been subject to any order, judgment or decree of any court of competent jurisdiction temporarily, preliminarily or permanently enjoining such person for failure to comply with Rule 503 of Regulation D concerning the filing of a notice of sales on Form D; 

(f)

except with respect to offers and sales in the US Private Placement in the manner described in section  of this Agreement, neither the Corporation nor any of its affiliates, nor any person acting on its or their behalf (other than the Agent, its respective affiliates or any person acting on their behalf, in respect of which no representation is made), has made or will make: (i) any offer to sell, or any solicitation of an offer to buy, any Securities to, or for the account or benefit of, a US Person or to a person in the United States; or (ii) any sale of the Securities unless, at the time the buy order was or will have been originated, the purchaser is (A) outside the United States and not a US Person or (B) the Corporation, its affiliates, and any person acting on their behalf reasonably believe that the purchaser is outside the United States and not a US Person;

(g)

during the period in which the Securities are offered for sale, neither it nor any of its affiliates, nor any person acting on their behalf has taken or will take any action that would cause the exclusion from registration available under Regulation S or the exemption from registration available under Rule 506 of Regulation D to be unavailable for offers and sales of the Securities pursuant to this Agreement;

(h)

none of the Corporation, its affiliates or any person acting on its or their behalf have engaged or will engage in any form of Directed Selling Efforts with respect to offers or sales of the Securities, or has taken or will take any action in violation of Regulation M under the 1934 Act, or have engaged in or will engage in any general solicitation or advertising with respect to offers or sales of the Securities in the United States, or to, or for the account or benefit of, US Persons, including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media, or broadcast over radio, or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising or in a manner involving a public offering within the meaning of section 4(2) of the 1933 Act;

(i)

the Corporation agrees to use its commercially reasonable best efforts to remain a Foreign Private Issuer for a period of two years from the date hereof;

(j)

the Corporation will timely execute or procure the execution of all documents and take or cause to be taken all such steps as may be reasonably necessary or desirable to establish, to the reasonable satisfaction of counsel for the Agent, any and all legal requirements to enable the Agent to offer the Securities for sale in the United States under Rule 506 of Regulation D in accordance with this Agreement; and

(k)

the Corporation will, within fifteen (15) days after the first sale of Securities in the United States, prepare and file with the United States Securities and Exchange Commission a notice on Form D with respect to the Securities and will file all amendments required to be filed as a result of subsequent sales of Securities in the United States or to, or for the account or benefit of, US Persons.  The Corporation shall also prepare and file within prescribed time periods any notices required to be filed with state securities authorities under applicable blue sky laws in connection with any securities sold pursuant to Rule 506 of Regulation D.

4.3

The representations and warranties of the Corporation contained in this Section  of the Agreement shall be true at the Time of Closing and the Closing Date as though they were made at the Time of Closing and the Closing Date and they shall survive the completion of the transactions contemplated under this Agreement.

5.

Representations and Warranties of the Agent

5.1

The Agent represents and warrants to the Corporation, and acknowledges that the Corporation is relying upon such representations and warranties in entering into this Agreement, that:

(a)

the Agent is an Accredited Investor as defined in NI 45-106;

(b)

the Agent is a valid and subsisting corporation duly incorporated and in good standing under the laws of the jurisdiction in which it is incorporated;

(c)

the Agent has not entered, and will not enter, into any contractual arrangement with respect to the Private Placement without the prior written consent of the Corporation, except for this Agreement and any agreement with its affiliates;

(d)

the Agent holds all licences and permits that are required for carrying on its business in the manner in which such business has been carried on;

(e)

the Agent has good and sufficient right and authority to enter into this Agreement and complete its transactions contemplated under this Agreement on the terms and conditions set forth herein; 

(f)

the Agent is appropriately registered under the Applicable Securities Laws so as to permit it to lawfully fulfil its obligations hereunder and to distribute the Securities; and

(g)

the Agent is a member in good standing of the Exchange. 

5.2

The representations and warranties of the Agent contained in this Agreement shall be true at the Time of Closing as though they were made at the Time of Closing and they shall survive the completion of the transactions contemplated under this Agreement.

6.

Covenants of the Corporation

6.1

The Corporation covenants with the Agent (on its own behalf and on behalf of the Purchasers) that it will:

(a)

file with the Exchange as soon as possible all required documents and filing fees, and to do all things required by the rules and policies of the Exchange in order to obtain the approval of the Exchange for the Private Placement, subject only to the filing of required documents, prior to the Closing Date;

(b)

take all steps as may be necessary to enable the Securities to be sold on a private placement basis in the Qualifying Jurisdictions by way of exemptions from the prospectus filing and registration requirements of Applicable Securities Laws and otherwise fulfill all legal requirements required to be fulfilled by the Corporation (including, without limitation, compliance with all Applicable Securities Laws) in connection with the Private Placement;

(c)

maintain its status as a “reporting issuer” not in default in British Columbia and Alberta for a period of two year from the date hereof;

(d)

maintain its listing of its common shares on the Exchange for a period of two years from the date hereof;

(e)

deliver to the Agent and to its legal counsel:

(i)

a copy of all letters, submissions and other materials with respect to the Private Placement filed with the Regulatory Authorities, or any one of them, at the same time that the materials are filed with the Regulatory Authorities;

(ii)

at the Time of the Closing, evidence of the Corporation’s title with respect to the Corporation’s material mineral properties, in form and content acceptable to the Agent, acting reasonably;

(iii)

at the Time of Closing, such favourable legal opinions of the Corporation’s various legal counsel, addressed to the Agent, its legal counsel and the Purchasers and dated as of the Closing Date, in form and content acceptable to the Agent, acting reasonably, with respect to all matters which the Agent may reasonably request including, without limitation:

(1)

the due incorporation and valid subsistence of the Corporation;

(2)

the qualification of the Corporation to carry on business under the laws of each jurisdiction in which it carries on business;

(3)

the authorized and issued capital of the Corporation;

(4)

the due creation, authorization, reservation, and issuance, as the case may be, of the Common Shares, the FT Shares, the Warrants, the FT Warrants, the Warrant Shares, the FT Warrant Shares, the Compensation Options, the Compensation Option Shares, the Fee Shares, the Fee Warrants, and the Fee Warrant Shares and that upon issue, the Common Shares and the FT Shares, and the Fee Shares, if any, will be fully paid and non-assessable; 

(5)

the due authorization, execution, binding effect and enforceability of this Agreement and the Subscription Agreements, subject to bankruptcy laws, the availability of all equitable remedies and other customary exceptions;

(6)

that no prospectus is required and, except as have been obtained or completed, no approval or consent of or filing with any Regulatory Authority or the Exchange is required in order to permit the issuance and sale by the Corporation of the Common Share Units and FT Units, the issuance of the Compensation Options and the issuance of the Fee Units, except for filings required under the Applicable Securities Laws or as may be required by the Exchange;

(7)

that no prospectus is required and, except as have been obtained or completed, no approval or consent of or filing with any Regulatory Authority or the Exchange is required in order to permit the issuance of the Warrant Shares, the FT Warrant Shares, the Compensation Option Shares, and the Fee Warrant Shares provided the conditions set out in the opinion are satisfied; and

(8)

the hold periods and resale restrictions applicable to the Common Shares, the Warrants, the FT Shares, the FT Warrants, the Warrant Shares, the FT Warrant Shares, the Compensation Options, the Compensation Option Shares, the Fee Shares, the Fee Warrants, and the Fee Warrant Shares under the Applicable Securities Laws;

(iv)

at the time of Closing, the Agent shall have received a favourable legal opinion from the Corporation’s United States counsel, dated the Closing Date and addressed to the Agent and its legal counsel, in form and substance satisfactory to the Agent and its counsel, acting reasonably, with respect to the availability of an exemption from the registration requirements under the securities laws of the United States in connection with sale in the United States of the Common Share Units by the Corporation in connection with the Private Placement;

(v)

at the Time of Closing, such certificates of officers of the Corporation, addressed to the Agent and to its legal counsel and dated as of the Closing Date, in form and content acceptable to the Agent, acting reasonably, relating to the offer and sale of the Securities and such other matters as the Agent may reasonably require; and

(vi)

at the Time of Closing, such other materials as the Agent may reasonably require, addressed to the Agent and to such parties as the Agent may direct and as of the Closing Date or such other date as the Agent may reasonably require;

(f)

within the required time, file with the applicable Regulatory Authorities any reports, in the required form, required to be filed under Applicable Securities Laws and the policies of the Exchange in connection with the Private Placement, together with any applicable filing fees and other materials;

(g)

take all steps reasonably necessary to ensure that it has a sufficient number of common shares of the Corporation available for issuance to satisfy its obligations under the Warrants, the FT Warrants, the Compensation Options, and the Fee Warrants and prior to Closing shall have reserved and allotted for issuance the Warrant Shares, the FT Warrant Shares, the Compensation Option Shares and the Fee Warrant Shares;

(h)

from and including the date of this Agreement through to and including the Time of Closing, do all such acts and things necessary to ensure that all of the representations and warranties of the Corporation contained in this Agreement or any certificates or documents delivered by it pursuant to this Agreement remain true and correct; and

(i)

from and including the date of this Agreement through to and including the Time of Closing, not do any such act or thing that would render any representation or warranty of the Corporation contained in this Agreement or any certificates or documents delivered by it pursuant to this Agreement untrue or incorrect

(j)

fulfill its obligations with respect to the FT Shares described in the form of Subscription Agreements for FT Units; and

(k)

maintain proper and complete books, records and accounts in accordance with generally accepted accounting principles showing true and accurate records of all Qualifying Expenses (as defined in the form of Subscription Agreement for FT Units) and make the books and records with respect to the Qualifying Expenses available for inspection and audit by or on behalf of the Purchasers.

7.

Covenants of the Agent

7.1

The Agent covenants with the Corporation that:

(a)

all solicitation, offering and other selling efforts carried out by the Agent in connection with the Distribution of the Securities will be made, and all purchases of the Securities will be made, in compliance with Applicable Securities Laws and in a manner such that no prospectus or offering memorandum need be prepared and filed or delivered by the Corporation in connection with the Distribution of the Securities and such that the Corporation is not made subject to a new continuous disclosure reporting requirement; 

(b)

no delivery has been or will be made by it to any prospective purchaser or Purchaser of any document which, individually or together with any other document, would constitute an offering memorandum under Canadian Applicable Securities Laws; and

(c)

it will obtain from each Purchaser a properly completed and executed Subscription Agreement in a form acceptable to the Corporation and the Agent, acting reasonably.

8.

Conditions Precedent

8.1

The obligations of the Agent to complete the transactions contemplated in this Agreement and to deliver executed Subscription Agreements and the Subscription Proceeds is subject to the following conditions for the benefit of the Agent which must be fulfilled at or prior to the Time of Closing, unless waived in writing by the Agent:

(a)

all actions required to be taken by or on behalf of the Corporation, including, without limitation, the passing of all requisite resolutions of directors of the Corporation, will have been taken so as to validly create, issue, offer, sell, and deliver the Common Shares, the Warrants, the FT Warrants and the FT Shares to the Purchasers and to validly create, issue and deliver the Compensation Options, and the Fee Shares and Fee Warrants, if any, to the Agent;

(b)

the Corporation will have made all necessary filings with and obtained all necessary approvals, consents and acceptances of the applicable Regulatory Authorities, subject, in the case of the Exchange, to the satisfaction of the Exchange Conditions within the time required (subject to any extensions permitted by the Exchange and agreed to by the Agent, in writing), in order to permit the Corporation to create, sell, issue and deliver the Common Shares, the FT Shares, the Warrants and the FT Warrants to the Purchasers and to create, issue and deliver the Compensation Options, and the Fee Shares and the Fee Warrants, if any, to the Agent pursuant to prospectus exemptions under Applicable Securities Laws;

(c)

the Corporation will be, and will have been for at least the four months immediately preceding the Time of Closing, a reporting issuer in one of the jurisdictions of Canada;

(d)

the Private Placement has been approved by the Exchange subject to the satisfaction of the Exchange Conditions within the time required;

(e)

the Corporation will have delivered the required legal opinions, officers’ certificates and other closing materials provided for in this Agreement;

(f)

no order ceasing or suspending trading in any securities of the Corporation, or ceasing or suspending trading by the directors, officers or promoters of the Corporation, or any one of them, or prohibiting the offer, sale, issuance or delivery of the Securities, will have been issued and no proceedings for such purpose, to the knowledge of the Corporation, will be pending or threatened;

(g)

the Corporation will have complied in all material respects with all of its covenants and agreements contained in this Agreement; and

(h)

the representations and warranties of the Corporation contained in this Agreement will be true and correct as of the Time of Closing as if such representations and warranties had been made as of the Time of Closing.

9.

Closing

9.1

The closing of the transactions contemplated under this Agreement (the “Closing”) will be completed at the offices of Anfield Sujir Kennedy & Durno, counsel to the Corporation, at Suite 1600 – 609 Granville Street, Vancouver, British Columbia, V7Y 1C3, at 9:00 a.m. (Vancouver time) on November 3, 2005 or at such other time and date on or prior to or after November 3, 2005 as the Corporation and the Agent may agree (being the “Time of Closing” and the “Closing Date”, respectively).

9.2

Not less than 36 hours prior to Closing, the Agent will deliver, or cause to be delivered, to the Corporation Subscription Agreements executed by the Purchasers including the registration particulars of the certificates representing the Common Shares, the FT Shares, the Warrants and the FT Warrants purchased by such Purchasers.

9.3

At the Closing, the Agent (on its own behalf and on behalf of the Purchasers) will deliver, or cause to be delivered to the Corporation, one or more cheques or bank drafts made payable on the Closing Date to the Corporation in an amount (the “Net Proceeds”) equal to the Subscription Proceeds, less an amount equal to the amount of the portion of the Agent’s Fee payable in cash and the Agent’s Expenses (less the amount paid as a retainer, if any).

9.4

At the Closing, upon payment of the Net Proceeds of the Private Placement to the Corporation, the Corporation will deliver or cause to be delivered to the Agent, the following:

(a)

a direction authorizing the Agent to retain from the Subscription Proceeds an amount equal to the portion of the Agent’s Fee payable in cash and the Agent’s Expenses (less the amount paid as a retainer, if any);

(b)

definitive certificates representing the Common Shares, the Warrants, the FT Shares and FT Warrants sold, as directed by the Agent;

(c)

definitive certificates representing the Compensation Options, the Fee Shares and the Fee Warrants, as applicable; and

(d)

the requisite legal opinions, officer’s certificates and other closing materials provided for in this Agreement.

9.5

The Corporation will, if required by Applicable Securities Laws, endorse each of the certificates for the Common Shares, the Warrants, the Warrant Shares, the FT Shares, the FT Warrants, the FT Warrant Shares, the Compensation Options, the Compensation Option Shares, the Fee Shares, the Fee Warrants, and the Fee Warrant Shares with legends describing the applicable hold period and resale restrictions.

10.

Agent’s Fee, Corporate Finance Fee and Expenses

10.1

In consideration of the services to be rendered by the Agent to the Corporation hereunder, the Corporation agrees to pay to the Agent, at the time and in the manner specified herein, a fee (the “Agent’s Fee”) equal to 7.0% of the aggregate Subscription Proceeds realized from the sale of the FT Units and Common Share Units by the Agent, including any proceeds from sale of Common Share Units pursuant to the Over-Allotment Option, payable in cash or in Common Share Units (each a “Fee Unit”, with an ascribed value of $0.80 per Fee Unit) or in a combination of cash and Fee Units, at the election of the Agent.  Each Fee Unit will consist of one common share of the Corporation (a “Fee Share”) and one-half of one common share purchase warrant (each whole warrant, a “Fee Warrant”).  Each whole Fee Warrant will entitle the holder to purchase one common share of the Corporation (a “Fee Warrant Share”) for a period of two years from the date of issue of the Fee Warrant at a price of $1.25 per Fee Warrant Share.

10.2

In further consideration of the services to be rendered by the Agent to the Corporation, the Corporation agrees to issue to the Agent, at the time and in the manner specified herein, that number of compensation options (the “Compensation Options”) which is equal to 10.0% of the aggregate number of FT Units and Common Share Units sold under the Offering, including any Common Share Units sold pursuant to the Over-Allotment Option. Each Compensation Option will entitle the holder on exercise thereof to purchase, for a period of two years from the Closing Date, one common share of the Corporation (a “Compensation Option Share”) at a price of $0.85 per Compensation Option Share. The Agent acknowledges that the Compensation Options and the Compensation Option Shares have not been, and will not be, registered under the 1933 Act or applicable state securities laws and that the Compensation Options may not be exercised in the United States or by or on behalf of a person in the United States, nor may the Compensation Options, or the Compensation Option Shares be offered or sold in the United States, unless an exemption from registration under the 1933 Act and any applicable state securities laws is available.

10.3

In connection with the acquisition of the Compensation Options and the Fee Units, if any, the Agent represents and warrants to the Corporation as follows:  (i) that the Agent (A) was not offered the Compensation Options or the Fee Units in the United States and (B) did not execute or deliver this Agreement and will not exercise the Compensation Options or the Fee Warrants in the United States; (ii) that the Agent is aware that the Compensation Options, the Compensation Option Shares, the Fee Shares, the Fee Warrants, and the Fee Warrant Shares have not been, and will not be, registered under the 1933 Act or applicable state securities laws and that the Compensation Options and Fee Warrants may not be exercised in the United States or by or on behalf of a person in the United States or a US Person, nor may the Compensation Options, the Compensation Option Shares, the Fee Shares, the Fee Warrants, or the Fee Warrant Shares be offered or sold in the United States, unless an exemption from registration under the 1933 Act and any applicable state securities laws is available.  Until such time as it is no longer required by the 1933 Act, the certificates representing the Compensation Options and the Fee Warrants shall bear a legend in substantially the following form:

“[In the case of the Fee Warrants: THIS WARRANT ] [In the case of the Compensation Option: THIS OPTION] AND THE SECURITIES DELIVERABLE UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.  [In the case of the Fee Warrants: THIS WARRANT] [In the case of the Compensation Option: THIS OPTION] MAY NOT BE EXERCISED IN THE UNITED STATES, OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON UNLESS THE SHARES ISSUABLE UPON EXERCISE OF [In the case of the Fee Warrants: THIS WARRANT] [In the case of the Compensation Option: THIS OPTION] HAVE BEEN REGISTERED UNDER THE SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE.  “UNITED STATES” AND “U.S. PERSON” ARE DEFINED BY REGULATION S UNDER THE SECURITIES ACT.”

10.4

The Corporation will pay all of the reasonable expenses of the Private Placement and all the reasonable expenses (the “Agent’s Expenses”) reasonably incurred by the Agent in connection with the Private Placement including, without limitation, the fees, expenses and disbursements of legal counsel for the Agent, Agent’s out-of-pocket expenses, plus applicable taxes payable thereon.  The Corporation shall provide the Agent with a retainer in the amount of $10,000, representing the Agent’s anticipated expenses, and such retainer shall be applied against the Agent’s Expenses.  The Agent’s Expenses will be paid by the Corporation even if the requisite approval of the Private Placement is not granted by the Exchange or the transactions contemplated by this Agreement are not completed or this Agreement is terminated, unless the failure of acceptance, or completion, or the termination is the result of the breach of this Agreement by the Agent. 

11.

Indemnity

11.1

The Corporation will indemnify and save harmless the Agent, its directors, officers, employees, agents and advisors, and each sub-agent (collectively the “Indemnified Persons”) from and against all losses, claims, damages, expenses or liabilities caused by or arising directly or indirectly from:

(a)

any Misrepresentation or alleged Misrepresentation (except of a statement included in reliance upon information furnished to the Corporation by or on behalf of an Agent) contained in any certificate of the Corporation or any officer thereof delivered to the Agents pursuant to this Agreement;

(b)

the failure by the Corporation to obtain the requisite regulatory approvals to the Private Placement from the Regulatory Authorities and the Exchange; 

(c)

the breach by the Corporation of any of the terms of this Agreement;

(d)

any representation or warranty made by the Corporation herein not being true or ceasing to be true prior to Time of Closing;

(e)

any order made by any regulatory authority, that trading in or Distribution of any of the Securities is to cease or be suspended, or that trading by the directors, officers or promoters of the Corporation, or any one of them, shall cease or be suspended if such order is based on any Misrepresentation of the Corporation (except of a statement included in reliance upon information furnished to the Corporation by or on behalf of an Agent);

(f)

the failure or inability of the Corporation to allot, issue and deliver at the Closing any or all of the certificates representing the Common Shares, the FT Shares, the Warrants and the FT Warrants in a form and denomination satisfactory to the Agent; and

(g)

a determination made by any of the Regulatory Authorities or a court of competent jurisdiction setting aside the offer, sale, issuance or delivery of any of the Common Share Units or FT Units by the Corporation unless the determination is based on the negligence, willful misconduct or bad faith of the Agent.

11.2

If any action or claim is brought against an Indemnified Person in respect of which indemnity may be sought from the Corporation pursuant to this Agreement the Indemnified Person will promptly notify the Corporation in writing, and the Corporation will assume the defence of the action or claim, including the employment of counsel acceptable to the Indemnified Person (acting reasonably) and the payment of all expenses.  The Indemnified Person will have the right to employ separate counsel in any proceeding relating to a claim contemplated by this section if:

(a)

the Indemnified Person has been advised by counsel that there may be legal defences available to the Indemnified Person which are different from or additional to defences available to the Corporation (in which case the Corporation shall not have the right to assume the defence of such proceedings on the Indemnified Person’s behalf);

(b)

the Corporation has not taken the defence of such proceedings and employed counsel within a reasonable time after notice of commencement of proceedings against the Indemnified Person; or

(c)

the employment of such counsel has been authorized by the Corporation in connection with the defence of any proceedings, 

and, in any such event, the Corporation shall pay the fees and expenses of the Indemnified Person’s counsel during the course of the investigation or defence, promptly as such expense, loss, damage or liability is incurred, it being understood and agreed that the Corporation shall not, in connection with a suit in the same jurisdiction, be liable for the legal expenses of more than one separate legal firm to represent the Indemnified Parties.

11.3

No settlement may be made by either the Corporation or any Indemnified Person without prior written consent of the other, such consent not to be unreasonably withheld.

11.4

The Corporation will not make any claim for, and hereby irrevocably waives any right by statute or common law to, contribution against the Indemnified Persons in the event of any action or claim brought against the Corporation as a result of any Misrepresentation or alleged Misrepresentation referred to in Section  other than a Misrepresentation or alleged Misrepresentation included in reliance upon information furnished to the Corporation by or on behalf of an Agent.

11.5

The right to indemnity herein provided will be in addition to and not in derogation of any other right to indemnity or contribution which any Indemnified Person may have by statute or otherwise at law.

11.6

The indemnity provided by this Agreement will remain in full force and effect until all possible liability of the Agent arising out of the transactions contemplated by this Agreement is extinguished by the operation of law and will not be limited to or affected by any other indemnity obtained by the Agent from any other person.

11.7

If indemnification under this Agreement is found in a final judgment (not subject to further appeal) by a court of competent jurisdiction not to be available for reason of public policy, the Corporation and the Indemnified Persons will contribute to the losses, claims, damages, expenses or liabilities (or actions in respect thereof) for which such indemnification is held unavailable in such proportion as is appropriate to reflect the relative benefits to and fault of the Corporation, on the one hand, and the Indemnified Persons on the other hand, in connection with the matter giving rise to such losses, claims, damages, expenses or liabilities (or actions in respect thereof). No person found liable for a fraudulent Misrepresentation will be entitled to contribution from any person who is not found liable for such fraudulent Misrepresentation.

11.8

To the extent that any Indemnified Person is not a party this Agreement, the Agent will obtain and hold the right and benefit of this section in trust for and on behalf of such Indemnified Person. 

12.

Termination of Agent’s Obligations

12.1

The Agent may terminate their obligations under this Agreement and the obligations of the Purchasers under the Subscription Agreements by notice in writing to the Corporation at any time prior to the Time of Closing if:

(a)

an adverse Material Change in the affairs of the Corporation occurs or is announced by the Corporation;

(b)

there should develop, occur, or come into effect any catastrophe of national or international consequence or accident, governmental law, or regulation or other occurrence of any nature which, in the opinion of the Agent, seriously affects or will seriously affect the financial markets or the business of the Corporation or the ability of the Agent to perform its obligations under this Agreement, or a Purchaser’s decision to purchase the Offered Securities, even if the Purchaser has already executed a Subscription Agreement for all or a portion of the Private Placement;

(c)

following a consideration of the history, business, products, property or affairs of the Corporation or their respective principals and promoters, or the state of the financial markets in general, or the state of the market for the Corporation’s securities in particular, the Agent determines in its sole discretion, that it is not in the interest of the Purchasers to complete the purchase and sale of the Offered Securities;

(d)

the Offered Securities cannot, in the opinion of the Agent, be profitably placed due to the state of financial markets, whether national or international;

(e)

any order to cease or suspend trading in the securities of the Corporation, or an order to cease or suspend trading by a director, officer or promoter of the Corporation, or any one of them, is issued by any competent regulatory authority;

(f)

the Corporation is in breach of any material term of this Agreement;

(g)

the Agent determines that any of the material representations or warranties made by the Corporation in this Agreement are false or have become false;

(h)

an inquiry or investigation in relation to the Corporation, or the Corporation’s directors, officers or promoters, is commenced or threatened by an officer or official of any competent securities authority which in the reasonable opinion of the Agent will adversely affect the value or marketability of the Securities; or

(i)

the Agent is not satisfied, in its discretion, with the results of its due diligence investigation of the Corporation.

12.2

The Agent’s obligations hereunder will terminate if the Closing Date does not occur on or before November 30, 2005, unless otherwise agreed to in writing by the Agent.

13.

Restriction on Issuances of Common Shares

13.1

The Corporation agrees not to, directly or indirectly, issue, sell, offer, grant an option or right in respect of, or otherwise dispose of, or agree to, or announce any intention to, issue, sell, offer, grant an option or right in respect of, or otherwise dispose of any additional common shares of the Corporation or any securities convertible or exchangeable into common shares in the capital of the Corporation, other than pursuant to (a) the exercise of previously issued convertible or exchangeable securities disclosed in Schedule “A” hereto; (b) the issuance of securities in accordance with any mineral property option agreement or joint venture agreement disclosed in Schedule “B” hereto; or (c) the grant or exercise of stock options and other similar issuances pursuant to any stock option plan or similar share compensation arrangements in place prior to the Closing Date and which have been disclosed to the Agent, for a period of 90 days from the Closing Date, without the prior written consent of the Agent, such consent not to be unreasonably withheld.

14.

Right of First Refusal

14.1

The Corporation will notify the Agent of any further brokered equity financing that the Corporation requires or proposes to undertake within 12 months from the Closing Date, and the Agent will have a right of first refusal to act as the Corporation’s lead agent in respect of any such financing.  Upon receipt of notice of a financing by the Agent from the Corporation, the Agent must exercise its right of first refusal within 15 days and include in such exercise the terms and conditions of the proposed financing.  In the event that the Agent does not exercise the right of first refusal within 15 days following receipt of notice, the right of first refusal will be deemed to have been waived by the Agent and the Corporation may undertake the proposed financing with another lead agent.

15.

Press Releases

15.1

Subject to compliance with applicable law, any press release of the Corporation relating to the Private Placement will be provided in advance to the Agent, and the Corporation will use its commercially reasonable best efforts to agree to the form and content thereof with the Agent prior to the release thereof.  More particularly, in order to comply with United States Applicable Securities Laws, no press release will be issued by the Corporation concerning the Private Placement during the Private Placement, and any press release issued by the Corporation concerning the Private Placement shall include the following legend:

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or any state securities laws and may not be offered or sold within the United States or to persons in the United States unless registered under the US Securities Act and applicable state securities laws or an exemption from registration is available.

16.

Authorization

16.1

The Agent is authorized to act on its own behalf, and the Corporation shall be entitled to and shall act on any notice given in accordance with this paragraph or agreement entered into by the Agent. 

17.

General

17.1

Time shall be of the essence of this Agreement and any waiver by the parties of this section or any failure by them to exercise any of their rights under this Agreement shall be limited to the particular instance and shall not extend to any other instance or matter in this Agreement or otherwise affect any of their rights or remedies under this Agreement.

17.2

The Exhibit and Schedules to this Agreement are incorporated by reference and the recitals to this Agreement constitute a part of this Agreement.

17.3

This Agreement constitutes the entire Agreement between the parties hereto in respect of the matters referred to herein and there are no representations, warranties, covenants or agreements, expressed or implied, collateral hereto other than as expressly set forth or referred to herein.

17.4

The headings in this Agreement are for reference only and do not constitute terms of the Agreement.

17.5

The provisions contained in this Agreement which, by their terms, require performance by a party to this Agreement subsequent to the Closing Date of this Agreement, shall survive the Closing Date of this Agreement.

17.6

No alteration, amendment, modification or interpretation of this Agreement or any provision of this Agreement shall be valid and binding upon the parties hereto unless such alteration, amendment, modification or interpretation is in written form executed by the parties directly affected by such alteration, amendment, modification or interpretation.

17.7

Whenever the singular or masculine is used in this Agreement the same shall be deemed to include the plural or the feminine or the body corporate as the context may require.

17.8

The parties hereto shall execute and deliver all such further documents and instruments and do all such acts and things as any party may, either before or after the Closing Date, reasonably require in order to carry out the full intent and meaning of this Agreement.

17.9

This Agreement may not be assigned by any party hereto without the prior written consent of all of the parties hereto.

17.10

This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

17.11

If any provision of this Agreement is determined to be void or unenforceable in whole or in part, it shall be deemed not to affect or impair the validity of any other provision of this Agreement and such void or unenforceable provision shall be severable from this Agreement.

17.12

This Agreement shall be subject to, governed by, and construed in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

17.13

This Agreement may be signed by the parties in as many counterparts as may be deemed necessary, each of which so signed shall be deemed to be an original, and all such counterparts together shall constitute one and the same instrument.  For the purposes of this section, a facsimile copy of a counterpart shall be deemed to be an original.

17.14

Any notice to be given hereunder will be in writing and may be given by telecopier or by hand delivery and will be, in the case of the Corporation, addressed and telecopied or delivered to:

Crosshair Exploration & Mining Corp.

Suite 2300, 1066 West Hastings Street

Vancouver, BC   V6E 3X2

Fax:

(604) 601-8250

Attention:  Mark Morabito

with a copy to:

Anfield Sujir Kennedy & Durno

Suite 1600, 609 Granville Street

Vancouver, BC  V7Y 1C3

Fax:

(604) 669-3877

Attention:  Verlee Webb

and in the case of the Agent, be addressed and telecopied or delivered to:

Pacific International Securities Inc.

666 Burrard Street, Park Place

19th Floor 

Vancouver BC  V6C 3N1 

Fax:

(604) 664-3660

Attention:  Craig Roberts

with a copy to:

Blake Cassels & Graydon, LLP

Suite 2600, Three Bentall Centre

595 Burrard Street

Vancouver, B.C.  V7X 1L3

Fax:

(604) 631-3309

Attention:  Bob Wooder

The Corporation and the Agents may change their respective addresses for notice by notice given in the manner referred to above.

If the foregoing is in accordance with your understanding and agreed to by you, please signify your acceptance on the accompanying counterparts of this letter and return same to the Agents whereupon this letter as so accepted will constitute an agreement between the Corporation and the Agent enforceable in accordance with its terms.

Yours truly,

	PACIFIC INTERNATIONAL SECURITIES INC.

By:

____________________________________

Authorized Signatory

	 

The foregoing is accepted and agreed to on the _____ day of November, 2005, effective as of the date appearing on the first page of this Agreement.

	CROSSHAIR EXPLORATION & 

MINING CORP.

By:

___________________________________

Authorized Signatory

	 

SCHEDULE “A”

OPTIONS, WARRANTS AND AGREEMENTS

TO ISSUE SECURITIES

Options, Warrants and Agreements to Issue Securities

1.

Warrants:

1,096,667

$0.30

expiring November 27, 2005

   662,312

$0.50

expiring December 14, 2005

   192,500

$0.50

expiring December 14, 2005

(*)

   326,000

$0.40

expiring January 11, 2006

2,811,110

$0.75

expiring March 15, 2007

     83,690

$0.75

expiring March 15, 2007 (PI Fee Wts)

   256,476

$0.50

expiring March 15, 2007 (PI Agent’s Options

247,032; Haywood 4,444; NBCN 5,000)

    281,111*

$0.75

expiring March 15, 2007 (PI Agent’s Options Wts)

5,709,866

(*) Finders Warrants in connection with a Private Placement

*   (of which 152,873 have been issued)

2.

Stock Options:

4,033,750 (fully vested: 1,763,250)

3.

Agreements:

(a)

Up to 1,600,000 common shares - Amended and Restated Property Agreement dated March 1, 2005 [replacing Property Agreement dated October 14, 2004] between Lewis Murphy and Crosshair Exploration & Mining Corp. in respect of an option for the acquisition by Crosshair Exploration & Mining Corp. of a 90% interest in the property known as the “Moran Lake IOCG” project in central Labrador.

(b)

Up to 1,000,000 common shares - Finder’s Fee Agreement dated August 25, 2004, between Crosshair Exploration & Mining Corp. and Northern Resource Investment Inc. in respect of introducing Crosshair Exploration & Mining Corp. to Liaoning Non-Ferrous Geological Institute and its president, Yanchang Deng.

(c)

Stock Options (up to 175,000), Discovery Bonus (100,000 common shares per Significant Discovery), and Finder’s Fees (common shares) - Contract for Consulting and Geological Services dated March 1, 2004, between Crosshair Exploration & Mining Corp. and Tim Froude for the provision of consulting services by Tim Froude to Crosshair Exploration & Mining Corp. 

(d)

Up to 400,000 common shares - Victoria Lake Property Agreement dated February 14, 2003, as amended on April 29, 2004, and as further amended on November 16, 2004, between Rubicon Minerals Corporation and International Lima Resources Corp. in respect of an option for the acquisition by International Lima Resources Corp. [Crosshair Exploration & Mining Corp.] of a 60% interest in the property known as the “Victoria Lake Property” or the “Southern Golden Promise” property in Newfoundland.

SCHEDULE “B”

LIST OF ALL MATERIAL CONTRACTS AND AGREEMENTS

Material Contracts and Agreements

1.

Amended and Restated Property Agreement dated March 1, 2005 [replacing Property Agreement dated October 14, 2004], between Lewis Murphy and Crosshair Exploration & Mining Corp. in respect of an option for the acquisition by Crosshair Exploration & Mining Corp. of a 90% interest in the property known as the “Moran Lake IOCG” project in central Labrador.

2.

Cooperative Joint Venture Contract for Mining Exploration dated November 12, 2004, between Liaoning Non-Ferrous Geological Bureau Exploration Institute and Crosshair Exploration & Mining Corp. in respect of a Joint Venture project known as the “Beigou Gold Project” in the Liaoning Province of China.

3.

Amended and Restated Cooperative Joint Venture Contract for Mining Exploration dated April 18, 2005 between Liaoning Non-Ferrous Geological Bureau Exploration Institute and Crosshair Exploration & Mining Corp. in respect of a Joint Venture project known as the “Beigou Gold Project” in the Liaoning Province of China.

4.

Finder’s Fee Agreement dated August 25, 2004, between Crosshair Exploration & Mining Corp. and Northern Resource Investment Inc. in respect of introducing Crosshair Exploration & Mining Corp. to Liaoning Non-Ferrous Geological Exploration Institute and its president, Yanchang Deng.

5.

Contract for Consulting and Geological Services dated March 1, 2004, between Crosshair Exploration & Mining Corp. and Tim Froude for the provision of consulting services by Tim Froude to Crosshair Exploration & Mining Corp. 

6.

Victoria Lake Property Agreement dated February 14, 2003, as amended on April 29, 2004, and as further amended on November 16, 2004, between Rubicon Minerals Corporation and International Lima Resources Corp. in respect of an option for the acquisition by International Lima Resources Corp. [Crosshair Exploration & Mining Corp.] of a 60% interest in the property known as the “Victoria Lake Property” or the “Southern Golden Promise” property in Newfoundland.

7.

Contract for Consulting and Geological Services dated September 26, 2005, between Crosshair Exploration & Mining Corp. and J. Wayne Pickett for the provision of consulting services by J. Wayne Pickett to Crosshair Exploration & Mining Corp.

SCHEDULE “C”

LIST OF ACTIONS, SUITS, JUDGEMENTS, INVESTIGATIONS AND PROCEEDINGS

List of Actions, Suits, Judgements, Investigations and Proceedings

No actions, suits, judgments, investigations, or other proceedings.

SCHEDULE “D”

PERMITTED ENCUMBRANCES

Permitted Encumbrances

None

EXHIBIT “1”

AGENT’S CERTIFICATE

AGENT’S CERTIFICATE

In connection with the private placement of securities (the “Securities”) of Crosshair Exploration & Mining Corp. (the “Corporation”) to, or for the account or benefit of, US Persons, or persons in the United States (each a “US Private Placee”) pursuant to US subscription agreements (each a “US Subscription Agreement”) and accredited investor certificates (each an “Accredited Investor Certificate”) of the undersigned Pacific International Securities Inc. (the “Agent”), referred to in the agency agreement dated as of [what is the date], 2005 between the Corporation and the Agent (the “Agency Agreement”), and Pacific International Securities (U.S.) Inc., in its capacity as placement agent in the United States for the Agent (the “Placement Agent”), do hereby certify that:

1.

the Placement Agent or its US Affiliate (if applicable) is a duly licensed and registered broker or dealer with the United States Securities and Exchange Commission and is registered as a broker-dealer in all states where the activities conducted by the Agent requires a license, including Texas, and is a member of, and in good standing with, the National Association of Securities Dealers, Inc. on the date hereof;

2.

all offers and sales of the Securities in the United States or to, or for the account or benefit of, US Persons have been effected in accordance with all applicable US and state broker-dealer registration requirements;

3.

all sales of the Securities in the United States or to, or for the account or benefit of, US Persons were made to a maximum of 50 US Accredited Investors by the Placement Agent;

4.

other than the US Subscription Agreement and Accredited Investor Certificate, no written material was used in connection with the offer or sale of the Securities in the United States, or to, or for the account or benefit of, US Persons;

5.

immediately prior to our transmitting the US Subscription Agreement and Accredited Investor Certificate to such US Private Placees, we had reasonable grounds to believe and did believe that each US Private Placee was a US Accredited Investor and on the date hereof, we continue to believe that each US Private Placee is a US Accredited Investor;

6.

no form of general solicitation or general advertising (as those terms are used in Regulation D) was used by us, including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio  or television, or any seminar or meeting whose attendees had been invited by general solicitation or general advertising, in connection with the offer or sale of the Securities in the United States or to, or for the account as benefit of, US Persons; 

7.

prior to any sale of the Common Share Units in the United States or to, or for the account or benefit of, US Persons, we caused each US Private Placement Placee to sign a US Subscription Agreement and Accredited Investor Certificate containing representations, warranties and agreements to the Corporation that are customary for private placements in the US to US Accredited Investors;

8.

all US Private Placees have been informed that the Common Share Units and Securities have not been and will not be registered under the 1933 Act and the Common Share Units and Securities are being offered and sold to such purchasers in reliance on an exemption from the registration requirements of the 1933 Act for non-public offerings. Each US Private Placee was provided with disclosure substantially as follows: “The Common Share Units and Securities have not been and will not be registered under the US Securities Act and are being offered and sold within the United States only to accredited investors (as defined in Rule 501(a) of Regulation D under the US Securities Act).  Prospective purchasers of the Common Share Units and Securities are hereby notified that the seller of the Common Share Units and Securities is relying upon the exemption from the provisions of Section 5 of the US Securities Act provided in Section 4(2) of the US Securities Act for non-public offerings. The Securities offered hereby are not transferable except in accordance with the restrictions described herein.”; and

9.

the officers signing the certificate are the duly elected, qualified and acting officers of their respective corporation and that they have performed all investigations, examined all records and documents and made all inquiries reasonably necessary or appropriate to obtain sufficient actual knowledge to support the statements made in the certificate.

Terms used in this certificate have the meanings given to them in the Agency Agreement unless otherwise defined herein.

DATED this ____ day of November, 2005.

	PACIFIC INTERNATIONAL 

SECURITIES INC.

By:

_______________________________

Authorized Signatory

	PACIFIC INTERNATIONAL 

SECURITIES (U.S.) INC.

By:

________________________________

Authorized SignatoryExhibit 4.13

SUBSCRIPTION AGREEMENT

(Canadian and Non-U.S. Subscribers)

UNITS

	To:

	Crosshair Exploration & Mining Corp. (the “Issuer”)

	And To:

	Pacific International  Securities Inc. (the “Agent”)

	Re:

	Purchase and Sale of Units of the Issuer

Dated For Reference:  October 12, 2005

 

 _____________________________________________________________________________________

The undersigned (the “Purchaser”) hereby irrevocably subscribes for and agrees to purchase from the Issuer, subject to the terms and conditions set forth in Schedule “A” to this subscription (which, together with all appendices (the “Appendices”) attached hereto, shall be deemed to form a part of this subscription), that number of units (the “Units”) of the Issuer set out on page 2 hereof at a price of Cdn$0.80 per Unit.

The Purchaser and the Issuer hereby agree that the Units, and the subsequent offering thereof, shall have and be conducted on the terms and conditions specified in  Schedule “A” hereto.  The Purchaser hereby makes, on its own behalf and, if applicable, on behalf of others for whom it is contracting hereunder, the acknowledgments, representations and warranties set out in Schedule “A” hereto, and agrees that the Issuer and the Agent can rely on such acknowledgments, representations and warranties should this subscription offer be accepted.

Note:

The Purchaser must either be:

(a)

purchasing the securities offered hereunder as principal or;

(b)

deemed to be purchasing such securities as principal, by virtue of being:

(i)

a trust company or trust corporation described in paragraph (p) of the definition of "accredited investor" in Appendix II (other than a trust company or trust corporation registered under the laws of Prince Edward Island that is not registered or authorized under the Trust and Loan Companies Act (Canada) or under comparable legislation in another jurisdiction of Canada); or

(ii)

a person described in paragraph (q) of the definition of "accredited investor" in Appendix II.

INSTRUCTIONS FOR COMPLETING THIS SUBSCRIPTION PRIOR TO DELIVERY TO THE ISSUER

1.

All Purchasers must complete (i) the information required on page 2 with respect to subscription amounts and registration and delivery particulars; and (ii) the information required on page 3 with respect to information regarding the Purchaser.

2.

Complete the applicable Appendices at the end of Schedule “A”:

(a)

All Purchasers who are not natural persons or are portfolio managers purchasing as agent for accounts that are fully managed by it must complete Appendix I – “Corporate Placee Registration Form” for filing with the TSX Venture Exchange (the "Exchange") unless previously filed.

(b)

All Purchasers resident in British Columbia, Alberta or Ontario must complete Appendix II – “Certificate of B.C., Alberta and Ontario Purchasers” and any further forms required therein.

3.

Return this subscription and all Appendices to the Agent at Suite 1900 - 666 Burrard Street, Vancouver, British Columbia, V6C 3N1 with a certified cheque, money order or bank draft drawn on a Canadian chartered bank and made payable to the Agent in same day freely transferable Canadian funds at par in Vancouver in the aggregate amount of the subscription funds therefor, or in such other manner as may be provided for by the Agent.

SUBSCRIPTION AMOUNTS

	No. of Units to be purchased at Cdn$0.80 each

	

_______________________________________

	Total Subscription Funds for Units

	

Cdn$___________________________________

Dated this ______ day of_________________________2005

REGISTRATION AND DELIVERY 

	

____________________________________________

(Name of Subscriber – please print)

By:   _________________________________________

         (Official Capacity or Title – please print)

______________________________________________

Authorized Signature

______________________________________________

Please print name of individual whose signature appears above if different than the name of the Subscriber printed above

	

____________________________________________

Subscriber's Address

_____________________________________________

_____________________________________________

(Telephone Number)

_____________________________________________

(Facsimile Number)

Details of Beneficial Purchaser If Not Same as Subscriber

	

_____________________________________________

(Name – please print)

______________________________________________

______________________________________________

(if space is inadequate, please attach a schedule containing the necessary information. 

	

_____________________________________________

Beneficial Purchaser's Address

_____________________________________________

_____________________________________________

	Registration Instructions

____________________________________________

(Name

_____________________________________________

Account Reference, if applicable

_____________________________________________

Address

_____________________________________________

	Delivery Instructions

____________________________________________

Name

____________________________________________

Account Reference, if applicable

____________________________________________

Contact Name

____________________________________________

Address

____________________________________________

(Telephone Number)

_____________________________________________

(Facsimile Number)

Execution by the Purchaser above shall constitute an irrevocable offer and agreement by the Purchaser to subscribe for the securities described herein on the terms and conditions herein set out.  The Issuer shall be entitled to rely on the delivery of a facsimile copy of this subscription, and acceptance by the Issuer of such facsimile subscription shall be legally effective to create a valid and binding agreement between the Purchaser and the Issuer in accordance with the terms and conditions hereof.

ACCEPTANCE

	This subscription is accepted and agreed to by the Issuer as of the ____ day of _____________, 2005.

	)

)

)

)

)

)

	CROSSHAIR EXPLORATION & MINING CORP.

Per:

__________________________________

Authorized Signatory

INFORMATION REGARDING THE PURCHASER

Please check the appropriate box (and complete the required information, if applicable) in each section:

1.

Security Holdings.  The Purchaser and all persons acting jointly and in concert with the Purchaser own, directly or indirectly, or exercises control or direction over (provide additional detail as applicable):

_________________ common shares of the Issuer and/or the following other kinds of shares and convertible securities (including but not limited to convertible debt, warrants and options) entitling the Purchaser to acquire additional common shares or other kinds of shares of the Issuer:

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

No shares of the Issuer or securities convertible into shares of the Issuer.

2.

Insider Status.  The Purchaser either:

Is an "Insider" of the Issuer as defined in the Policies of the TSX Venture Exchange (the "Exchange"), by virtue of being:

(a)

a director or senior officer of the Issuer;

(b)

a director or senior officer of a company that is an Insider or subsidiary of the Issuer;

(c)

a person that beneficially owns or controls, directly or indirectly, voting shares of the Issuer carrying more than 10% of the voting rights attached to all the Issuer's outstanding voting shares;

(d)

the Issuer itself if it holds any of its own securities.

Is not an Insider of the Issuer.

3.

Pro Group Status.  The Purchaser either:

Is a Member of the "Pro Group", which is defined in the Rules of the Exchange as either individually or as a group:

1.

the member (i.e. a member of the TSX Venture Exchange under the Exchange requirements);

2.

employees of the member;

3.

partners, officers and directors of the member;

4.

affiliates of the member; and

5.

associates of any parties referred to in subparagraphs 1 through 4;

Is not a member of the Pro Group.

4.

Corporate Placee Form.  The Purchaser is not an individual and either:

has a current Corporate Placee Registration Form on file with the TSX Venture Exchange; or

has completed and returned with this Subscription a duly executed Corporate Placee Registration Form (Appendix I to this Agreement).

SCHEDULE “A”

1.

DEFINITIONS

1.1

In this Agreement, the following words have the following meanings unless otherwise indicated:

(a)

“1933 Act” means the United States Securities Act of 1933 , as amended;

(b)

“Acts” means, collectively, the BC Act, the Alberta Act and the Ontario Act;

(c)

“Agency Agreement” means the agency agreement to be entered into between the Issuer and the Agent;

(d)

“Agent” means Pacific International Securities Inc.;

(e)

“Agreement” means this Agreement, including Schedule “A” and all Appendices;

(f)

“Alberta Act” means the Securities Act (Alberta), as amended, the regulations and rules made thereunder and all administrative policy statements, rules, instruments, blanket orders, notices, directions, and orders  issued by the Alberta Securities Commission;

(g)

“BC Act” means the Securities Act (British Columbia), as amended, the regulations and rules made thereunder and all administrative policy statements, rules, instruments, blanket orders, notices, directions, and orders issued by the BC Securities Commission;

(h)

“Business Day” means any day except Saturday, Sunday, or a statutory holiday in Vancouver, British Columbia;

(i)

"Closing" means the closing on the Closing Date of the transaction of purchase and sale in respect of the Units as contemplated by this Subscription Agreement and the Agency Agreement;

(j)

“Closing Date” means the day on which the Issuer issues the Shares and Warrants comprising the Units to the Purchaser;

(k)

“Commissions” means together, the BC, Alberta and Ontario Securities Commissions;

(l)

"Disclosure Record" means, without limitation, the prospectuses, annual information forms, material change reports, press releases and other documents or reports filed by the Issuer with any applicable securities regulatory authority in Canada during the 24 months preceeding the date hereof;

(m)

“Exchange” means the TSX Venture Exchange;

(n)

“MI 45-102” means the Multilateral Instrument 45-102 entitled “Resale of Securities” published by the Canadian Securities Administrators;

(o)

“NI 45-106” means the National Instrument 45-106 entitled “Prospectus and Registration Exemptions” published by the Canadian Securities Administrators;

(p)

“Ontario Act” means the Securities Act (Ontario), as amended, the regulations and rules made thereunder and all administrative policy statements, rules, instruments, blanket orders, notices, directions, and orders issued by the Ontario Securities Commission;

(q)

“Private Placement” means the offering of the Units by way of private placement;

(r)

"Regulation S" means Regulation S promulgated under the 1933 Act;

(s)

“Regulatory Authorities” means the Commissions and the Exchange;

(t)

“Rule 45-501” means Rule 45-501 entitled “Exempt Distributions” published by the Ontario Securities Commission;

(u)

“Securities” means, collectively, the Units, the Shares, the Warrants, and the Warrant Shares;

(v)

“Shares” means the previously unissued common shares of the Issuer, as presently constituted, which will form part of the Units;

(w)

"United States" means the United States of America, its territories and possessions and any State of the United States and the District of Columbia;

(x)

"U.S. Person" means a U.S. Person as that term is defined in Rule 902(o) of Regulation S, and includes (i) any natural person resident in the United States and (ii) any partnership or corporation organized or incorporated under the laws of United States, among other persons specified in such Rule;

(y)

“Units” means units of the Company consisting of one Share and one-half of one Warrant to be offered under the Private Placement;

(z)

“Warrant Shares” means the previously unissued common shares of the Issuer, as presently constituted, which will be issued on the exercise of the Warrants; 

(aa)

“Warrants” means the transferable share purchase warrants of the Issuer, which will form part of the Units and which will have the terms provided in this Agreement and in the certificates representing the share purchase warrants.

2.

PURCHASE AND SALE OF UNITS

2.1

The Issuer is offering up to 7,500,000 Units at $0.80 per Unit.  The offering price of the Units was determined by the Issuer and the Agent with regard to the pricing policies of the Exchange.  The closing of the Private Placement is subject to the acceptance of the Exchange.

2.2

The Issuer has also granted an over-allotment option (the "Over-Allotment Option") to the Agent entitling it to sell up to an additional 3,750,000 Units to cover over-allotments.  The Over-Allotment Option is exercisable by the Agent at any time prior to the Closing.

2.3

The Units are part of a larger offering (the "Offering") of up to $13,000,000 which includes the Units, and any Units sold pursuant to the Over-Allotment Option, and up to 4,000,000 flow-through units (the "FT Units").  Each FT Unit will be priced at $1.00 per FT Unit and will consist of one flow-through common share and one-half of one transferable non-flow-through share purchase warrant, each whole warrant exercisable for a period of two years at a price of $1.75 per share.

2.4

Each Unit will consist of one Share and one-half of one transferable Warrant.

2.5

The Purchaser agrees to deliver to the Agent as soon as possible and, in any event, not later than 12:00 noon (Vancouver time) on November 8, 2005 the following:

(a)

a completed and duly executed copy of this Agreement;

(b)

if the Purchaser is not an individual, a Corporate Placee Registration Form 4C (unless already on file with the Exchange) attached as Appendix I;

(c)

if the Purchaser is resident in British Columbia, Alberta or Ontario, the Certificate of B.C., Alberta and Ontario Purchasers attached as Appendix II;  and

(d)

all other documents as may be required.

2.6

On the signing of this Agreement, the Purchaser will deliver to the Agent a certified cheque, money order or bank draft drawn on a Canadian chartered bank and made payable to the Agent in the same day freely transferable Canadian funds at par in Vancouver representing the total purchase price of the Units subscribed for by the Purchaser under this Agreement.  The Agent will hold the Purchaser’s subscription funds in trust pending closing of the Private Placement.  If the Issuer declines to accept this Agreement or all of the conditions of purchase in section 4.1 of this Agreement are not fulfilled or waived, the Issuer or the Agent will return the subscription funds to the Purchaser without interest or deduction.

3.

WARRANTS

3.1

Each full Warrant will entitle the Purchaser to purchase one Warrant Share at a price of $1.25 per Warrant Share, if exercised on or before 4:00 p.m. (Pacific Standard Time) on the first Business Day that is two years after the Closing Date.

3.2

The certificates representing the Warrants will refer to the terms and conditions which govern the Warrants and will include, among other things, provisions for the appropriate adjustment in the class, number, and price of the Warrant Shares issued on exercise of the Warrants if certain events occur, including any subdivision, consolidation, or reclassification of the Issuer's common shares, the payment of stock dividends, and the amalgamation of the Issuer.

3.3

If the Purchaser exercises any Warrants, the Issuer will, in accordance with the certificates representing the Warrants:

(a)

issue to the Purchaser the number of Warrant Shares equal to the number of full Warrants exercised; and

(b)

deliver to the Purchaser a share certificate representing the Warrant Shares.

3.4

Subject to the policies of the Exchange and the terms and conditions of the Agency Agreement, the issue of the Warrants will not restrict or prevent the Issuer from obtaining any other financing or from issuing additional securities or rights during the period within which the Warrants may be exercised.

4.

CONDITIONS OF PURCHASE

4.1

The Purchaser acknowledges that the Issuer’s obligation to sell the Units to the Purchaser is subject to, among other things, the conditions that:

(a)

the Purchaser duly completes, signs, and delivers to the Issuer a copy of this Agreement, together with all documents required by applicable securities legislation and the Exchange for delivery on the Purchaser’s behalf, including without limitation the documents described in section 2.3 hereof;

(b)

the Issuer has received all necessary regulatory approvals to the Private Placement including the approval of the Exchange;

(c)

the Issuer accepts this subscription;

(d)

the sale of the Units is exempt from prospectus requirements under the BC Act and any other applicable securities legislation relating to the sale of the Units or all appropriate securities regulators issue all orders, consents, or approvals required to permit the sale without the Issuer having to register or file a prospectus or deliver an offering memorandum to the Purchaser;

(e)

the Purchaser’s representations and warranties remain true and correct as at the Closing Date; 

(f)

the Issuer satisfies each of the Agent’s conditions contained in the Agency Agreement on or before the Closing Date, other than those conditions waived by the Agent; and

(g)

the Issuer being a "reporting issuer" as that term is defined in MI 45-102 at the Closing Date and for the four months preceding the date thereof in a jurisdiction of Canada.

5.

PURCHASER’S REPRESENTATIONS AND WARRANTIES

5.1

The Purchaser acknowledges, represents, warrants and covenants to and with (on its own behalf and, if applicable, on behalf of those for whom the Purchaser is contracting hereunder) the Issuer and the Agent, that, as at the date of this Agreement and at the Closing Date:

(a)

The Issuer has not filed a prospectus with any of the Commissions or any other securities commission or similar authority in connection with the offering of the Units and that:

(i)

the Purchaser is restricted from using most of the civil remedies available under the Acts;

(ii)

the Purchaser may not receive information that would otherwise be required to be provided to him under the Acts;

(iii)

the Issuer is relieved from certain obligations that it would otherwise be required to give if it provided a prospectus under the Acts; and

(iv)

the issuance and sale of the Units to the Purchaser is subject to the sale being exempt from the prospectus requirements of the Acts.

(b)

If the Purchaser is a resident of British Columbia, Alberta or Ontario, then the Purchaser is purchasing the Units as Principal and is either:

(i)

an "accredited investor" as defined in NI 45-106 and was not created or used solely to purchase or hold securities as an accredited investor as described in paragraph (m) of the definition of "accredited investor" in NI 45-106; or

(ii)

purchasing the Units at an acquisition cost to the Purchaser of not less than $150,000 paid in cash and, if the Purchaser is not an individual, the Purchaser was not created or used solely to purchase or hold securities in reliance on the exemption from the dealer registration requirement or prospectus requirement available under section 2.10 of NI 45-106;

and the Purchaser has completed, signed and delivered to the Corporation an Appendix II – "Certificate of B.C., Alberta and Ontario Purchasers";

(i)

(c)

The Purchaser, if not a resident of British Columbia, certifies that it is not resident in British Columbia and acknowledges that:

(i)

no securities commission or similar regulatory authority has reviewed or passed on the merits of the Securities;

(ii)

there is no government or other insurance covering the Securities;

(iii)

there are risks associated with the purchase of the Securities;

(iv)

there are restrictions on the Purchaser’s ability to resell the Securities and it is the responsibility of the Purchaser to find out what those restrictions are and to comply with them before selling the Securities; and

(v)

the Issuer has advised the Purchaser that the Issuer is relying on an exemption from the requirements to provide the Purchaser with a prospectus and to sell securities through a person registered to sell securities under the Acts and, as a consequence of acquiring Securities pursuant to this exemption, certain protections, rights and remedies provided by the Acts, including statutory rights of rescission or damages, will not be available to the Purchaser.

(d)

If the Purchaser is resident outside of Canada, the Purchaser:

(i)

is knowledgeable of, or has been independently advised as to the applicable securities laws of the securities regulatory authorities (the “Authorities”) having application in the jurisdiction in which the Purchaser is resident (the “International Jurisdiction”) which would apply to the acquisition of the Units, if any;

(ii)

is purchasing the Units pursuant to exemptions from the prospectus and registration requirements under the applicable securities laws of the Authorities in the International Jurisdiction or, if such is not applicable the Purchaser is permitted to purchase the Units under the applicable securities laws of the Authorities in the International Jurisdiction without the need to reply on any exemption; 

(iii)

the applicable securities laws of the Authorities in the International Jurisdiction do not require the Issuer to make any filings or seek any approvals of any nature whatsoever from any Authority of any kind whatsoever in the International Jurisdiction in connection with the issue and sale or resale of the Units; and

(iv)

the purchase of the Purchaser's Units by the Purchaser does not trigger:

(A)

any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction; or

(B)

any continuous disclosure reporting obligation of the Issuer in the International Jurisdiction; and

the Purchaser will, if requested by the Issuer or the Agent, deliver to the Issuer and the Agent a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in subparagraphs (ii), (iii) and (iv) above to the satisfaction of the Issuer, acting reasonably;

(e)

The purchase of the Units has not been made through or as a result of, and the distribution of the Units has not been accompanied by, an advertisement in printed media of general and regular paid subscription, radio, or television.

(f)

No person has made to the Purchaser any written or oral representations:

(i)

that any person will resell or repurchase the Securities;

(ii)

that any person will refund the purchase price of the Units or the Warrant Shares;

(iii)

as to the future price or value of any of the Securities; or

(iv)

that the Securities will be listed and posted for trading on a stock exchange or that an application has been made to list and post the Securities for trading on a stock exchange, other than the Shares and Warrant Shares on the Exchange. 

(g)

The Purchaser is not a “control person” of the Issuer as defined in the BC Act, will not become a “control person” by virtue of the purchase of any of the Securities, and does not intend to act in concert with any other person to form a control group of the Issuer.

(h)

The Purchaser and each beneficial purchaser for whom it is acting are resident in the jurisdiction indicated on the cover page to this Agreement and:

(i)

the Purchaser is not a U.S. Person and is not purchasing the Units for the account or benefit of a U.S. Person;

(ii)

the Issuer did not offer the Units to the Purchaser when the Purchaser was in the United States; and

(iii)

the Purchaser did not sign or deliver this Agreement in the United States.

(i)

The Purchaser acknowledges that the Securities have not been registered under the 1933 Act or the securities laws of any state of the United States, and may not be offered or sold in the United States unless registered under the 1933 Act and the securities laws of all applicable states of the United States or an exemption from such registration requirements is available, and that the Issuer has no obligation or present intention of filing a registration statement under the 1933 Act regarding any of the Securities.

(j)

The Units are not being acquired directly or indirectly, for the account or benefit of a U.S. Person or a person in the United States and the Purchaser does not have any agreement or understanding (either written or oral) with any U.S. Person or a person in the United States respecting:

(i)

the transfer or assignment of any rights or interest in any of the Securities;

(ii)

the division of profits, losses, fees, commissions, or any financial stake in connection with this subscription; or

(iii)

the voting of the Shares or the Warrant Shares.

(k)

The Purchaser has no knowledge of a “material fact” or “material change” (as those terms are defined in the Acts) in the Issuer’s affairs that has not been generally disclosed to the public, save knowledge of this particular transaction.

(l)

If the Purchaser is an individual, the Purchaser has attained the age of majority and is legally competent to enter into and sign this Agreement and to take all actions required pursuant hereto, and if the Purchaser is a corporation, the Purchaser is duly incorporated and validly subsisting under the laws of its jurisdiction of incorporation, and its directors, shareholders, and others have given all necessary approvals to authorize the signing of this Agreement on the Purchaser’s behalf.

(m)

The entering into of this Agreement and the transactions contemplated hereby will not result in the violation of any of the terms and provisions of any law applicable to, or the constating documents of, the Purchaser or of any agreement, written or oral, to which the Purchaser may be a part or by which it is or may be bound.

(n)

The Purchaser has duly signed and delivered this Agreement and this Agreement constitutes a legal, valid, and binding agreement of the Purchaser enforceable against the Purchaser in accordance with its terms.

(o)

The Purchaser has obtained independent advice as to the applicable hold period imposed on the Securities by MI 45-102, other securities legislation and the Exchange, and confirms that the Issuer has made no representations regarding the applicable hold periods for the Securities, and the Purchaser is aware of the risks and other characteristics of the Securities and of the fact that the Purchaser may not be able to resell the Securities except in accordance with MI 45-102, other applicable securities legislation and the Exchange’s policies.

(p)

Although the Agent may have introduced the Purchaser to the Issuer, the Purchaser and the Issuer acknowledge and agree with and for the benefit of the Agent that:

(i)

the Agent and its directors, officers, employees, agents, and representatives have no responsibility or liability of any nature whatsoever for the accuracy or adequacy of the information contained in this Agreement, or any other publicly available information concerning the Issuer or as to whether the Issuer has generally disclosed all information concerning the Issuer that it was required to disclosed;

(ii)

the Agent has not engaged in any independent investigation or verification regarding this Agreement or any other information;

(iii)

the Agent is entitled to rely on the statements and answers of the Purchaser and the Issuer contained in this Agreement and in the Appendices, and that the Purchaser will hold harmless the Agent and the Issuer from any loss or damage it may suffer as a result of the Purchaser’s failure to correctly complete the Appendices; and

(iv)

the Purchaser and the Issuer release the Agent and any of its affiliates and any of the Agent’s directors, officers, and employees from any claims, losses, damages, liabilities (or actions in respect thereof), costs, and expenses that may arise in respect of this Agreement.

(q)

If required by applicable securities legislation, policy, or order or by any securities commission, stock exchange or other regulatory authority, the Purchaser will sign, deliver, file, and otherwise assist the Issuer in filing all reports, undertakings, and other documents required with respect to the issue of the Securities.

(r)

the Purchaser is capable of assessing and evaluating the risks and merits of this investment as a result of the Purchaser’s financial, investment or business experience or as a result of advice received from a registered person other than the Issuer or an affiliate thereof, and the Purchaser or, where it is not purchasing as principal, each beneficial purchaser is able to bear the economic loss of its investment.

(s)

the Purchaser (or, if applicable, others for whom it is contracting hereunder) has been advised to consult its own legal and tax advisors with respect to applicable resale restrictions and tax considerations, and it (or, if applicable, others for whom it is contracting hereunder) is solely responsible for compliance with applicable resale restrictions and applicable tax legislation.

(t)

the Purchaser acknowledges that Agent’s counsel is acting as counsel to the Agents and not as counsel to the Purchaser, and the relationship of the Agent’s counsel with the Purchaser is limited solely to the provision of customary commercial legal opinions at the Closing Date, where applicable, and responding to any questions which the Purchaser may have regarding the terms of the documents to be delivered in connection with this transaction.

(u)

The Purchaser makes the representations, warranties, covenants, and acknowledgements contained in this Agreement and in any other Appendices, documents, or materials signed and delivered by the Purchaser hereunder and, if applicable, in its Corporate Placee Registration Form currently on file or to be filed with the Exchange, with the intent that the Issuer, its professional advisors and the Agent may rely on them in determining the Purchaser’s eligibility or, if applicable, the eligibility of others on whose behalf the Purchaser is contracting to purchase the Units, and the Purchaser agrees to indemnify the Issuer and the Agent against all losses, claims, costs, expenses, and damages or liabilities which the Issuer or the Agent may suffer or incur caused by or arising from its reliance thereon.

(v)

The Purchaser agrees that the above representations, warranties, covenants, and acknowledgements will be true and correct both as of the signing date of this Agreement and as of the Closing Date and that they will survive the Purchaser’s purchase of the Units and will continue in full force and effect even if the Purchaser subsequently disposes of any of the Securities.  The Purchaser undertakes to notify the Issuer immediately of any change in any representation, warranty, or other information relating to the Purchaser set forth herein which takes place before the Closing Date.

6.

ISSUER’S COVENANTS

6.1

The Issuer covenants and agrees with the Purchaser as follows:

(a)

the Issuer will promptly comply with all filing and other requirements under all applicable securities laws in connection with the Private Placement;

(b)

the Purchaser shall have the benefit of the representations and warranties made by the Issuer in the Agency Agreement as if such representations and warranties were made by the Issuer in this Agreement; and

(c)

on the Closing Date, the Issuer will have taken all necessary steps to duly and validly create and issue the Securities.

7.

RESALE RESTRICTIONS

7.1

The Purchaser acknowledges that the Securities will be subject to restrictions on resale imposed by MI 45-102 and other applicable securities legislation until:

(a)

the applicable statutory hold period has expired, which in British Columbia, Alberta and Ontario will be  four months from the Closing Date; or

(b)

a further statutory exemption under the BC Act or applicable securities legislation is available to the Purchaser and the prior consent of the Exchange is obtained; or

(c)

an appropriate discretionary order is obtained under applicable securities legislation and the prior consent of the Exchange is obtained; or

(d)

the Purchaser, if a "control person" (as defined under applicable securities legislation), has satisfied all conditions relating to sales by control persons set out in MI 45-102.

7.2

The Purchaser agrees to consult his own legal advisors regarding the statutory resale restrictions applicable to the Securities before the resale of any of the Securities.

7.3

The certificates representing the Securities will bear a legend denoting the resale restrictions imposed by MI 45-102, other applicable securities legislation and the Exchange.  The Purchaser agrees to sell, assign, or transfer the Securities only in accordance with these legends and the requirements of MI 45-102, other applicable securities legislation and the Exchange.

8.

AGENT'S COMMISSION

8.1

Pursuant to the Agency Agreement to be entered into between the Issuer and the Agent, the Issuer has engaged the Agent to act as the sole and exclusive agent for the Private Placement on a best efforts basis.  The Purchaser acknowledges and agrees that in connection with the issue and sale of the Units, the Agent will receive from the Issuer on Closing:

(a)

a commission equal to 7% of the aggregate gross proceeds from the sale of the Units and FT Units under the Offering, including any Units sold pursuant to the Over-Allotment Option, payable in cash, in Units (with an ascribed value of $0.80 per Unit) or in a combination thereof at the election of the Agent, such election to be made prior to or on the Closing Date; and

(b)

Agent’s options (the “Agent’s Options”) entitling the Agent to purchase that number of common shares of the Corporation (the “Agent’s Shares”) equal to 10% of the number of Units and FT Units sold by the Agent pursuant to the Offering, including any Units sold pursuant to the Over-Allotment Option, at an exercise price of $0.85 per Agent’s Share for a period of two years from the Closing Date.

No other fee or commission is payable by the Corporation in connection with the completion of the Private Placement.  However, the Corporation will pay certain fees and expenses of the Agent in connection with the Private Placement as set out in the Agency Agreement.

9.

APPOINTMENT OF AGENT

9.1

The Purchaser (on its own behalf and, if applicable on behalf of others for whom the Purchaser is contracting for hereunder) hereby irrevocably authorizes the Agent:

(a)

to complete and correct in its sole discretion any information contained in this Agreement (including the Appendices hereto), and any other document prepared or delivered by the Purchaser in connection with the Private Placement, which may require completion or correction;

(b)

to negotiate, settle and amend the form of the Warrant Certificate and any other agreement entered into or to be entered into in connection with this transaction;

(c)

to negotiate and waive, in whole or in part, or extend the time for compliance with, any of the Issuer's representations, warranties or covenants or closing conditions, given or made by the Issuer for the benefit of the Purchaser, including but not limited to those contained herein, in the Agency Agreement and any other agreement, instrument or document entered into by the Agent or the Purchaser in connection with this subscription or the Private Placement, all in such manner and on such terms and conditions as the Agent may determine, acting reasonably, without in any way affecting the Purchaser's obligations or the obligations of such others hereunder;

(d)

to act as the Purchaser's representative at the closing of the Private Placement to, among other things, receive certificates representing the Securities subscribed for by the Purchaser, and to swear, execute and file any receipts or other required documentation on behalf of the Purchaser, and

(e)

to terminate this subscription on behalf of the Purchaser in the event that any condition precedent to the completion of the Private Placement has not been satisfied by the date set therefor.

9.2

Although the Agent may have introduced the Purchaser to the Issuer, the Purchaser acknowledges and agrees with, and for the benefit of, the Agent, such acknowledgments and agreements to survive Closing Date, that:

(a)

the Agent and its directors, officers, employees, agents and representatives have no responsibility or liability of any nature whatsoever for the accuracy or adequacy of the Disclosure Record, or as to whether all information concerning the Issuer that is required to be publicly disclosed by it has been generally disclosed;

(b)

the Agent has not engaged in any independent verification with respect to the information contained in the Disclosure Record; and

(c)

the Agent is entitled to rely on the statements, covenants and answers of the Purchaser and the Issuer contained in this subscription, and that the Purchaser will hold harmless the Agent and the Issuer from any loss or damage they may suffer whatsoever as a result of any misrepresentation of the Purchaser contained herein or the Purchaser's failure to accurately complete any of the information required to be completed by the Purchaser herein.

10.

SUBSCRIPTION

10.1

This subscription is irrevocable except that the Purchaser reserves the right to withdraw this subscription and to terminate its obligations hereunder at any time before the Closing Date if the Agent terminates its obligations with respect to this Private Placement under the Agency Agreement and the Purchaser hereby appoints the Agent as its agent for the purpose of notifying the Issuer of the withdrawal or termination of this subscription.

10.2

The Purchaser hereby authorizes and directs the Issuer and the Agent to deliver certificates representing the Shares and the Warrants to be issued to such Purchaser pursuant to this Subscription Agreement either (a) to the residential or business address indicated in this subscription or (b) directly to the Purchaser’s account, if any, maintained with the Agent.

10.3

The Purchaser hereby authorizes and directs the Agent to return any funds for unaccepted subscriptions to the same account from which the funds were drawn, without interest or penalty, including any customer account maintained with the Agent.

10.4

This subscription may be accepted in whole or in part by the Issuer at its sole discretion and the right is reserved to the Issuer at its sole discretion to allot to any Purchaser less than the amount of Units subscribed for.  Confirmation of acceptance or rejection of this subscription will be forwarded to the Purchaser promptly after the acceptance or rejection of the subscription by the Issuer.  If this subscription is rejected in whole, the funds delivered by the Purchaser to the Agent representing the purchase price for the Units subscribed for herein will be promptly returned to the same account from which the funds were drawn, without interest or penalty, including any customer account maintained with any of the Agent.  If this subscription is accepted only in part, the funds representing the portion of the purchase price representing that portion of the subscription for the Units which is not accepted will promptly be similarly returned.

11.

CLOSING DATE

11.1

The Closing Date will take place on November 10, 2005, unless the Issuer and the Agent otherwise agree.

11.2

On the Closing Date, subject to section 4.1, the Issuer will issue and deliver to the Agent, on behalf of the Purchaser the certificates representing the Shares and Warrants purchased by the Purchaser registered as instructed on page 2 of this Agreement.

12.

COLLECTION OF PERSONAL INFORMATION.  

12.1

The Purchaser (on its own behalf and, if applicable, on behalf of any person for whose benefit the Purchaser is subscribing) acknowledges and consents to the collection by the Issuer and the Agent  of the Purchaser's (and any beneficial purchaser’s) personal information for the purpose of completing the Purchaser’s subscription.  The Purchaser (on its own behalf and, if applicable, on behalf of any person for whose benefit the Purchaser is subscribing) acknowledges and consents to the Issuer and Agent retaining the personal information for as long as permitted or required by applicable law or business practices.  The Purchaser (on its own behalf and, if applicable, on behalf of any person for whose benefit the Purchaser is subscribing) further acknowledges and consents to the Issuer or the Agent disclosing as required by applicable securities laws, stock exchange rules, and IDA rules to regulatory authorities, or to other authorities pursuant to the Proceeds of Crime (Money Laundering) Act (Canada), any personal information provided by the Purchaser respecting itself (and any beneficial purchaser).  The Purchaser represents and warrants that it has the authority to provide the consents and acknowledgements set out in this paragraph on behalf of all beneficial purchasers.

12.2

Furthermore, the Purchaser is hereby notified that:

(i)

the Company may deliver to the Ontario Securities Commission certain personal information pertaining to the Purchaser, including such Purchaser’s full name, residential address and telephone number, the number of Units purchased by the Purchaser and the total purchase price paid for such Units, the prospectus exemption relied on by the Company and the date of distribution of the Units,

(ii)

such information is being collected indirectly by the Ontario Securities Commission under the authority granted to it in securities legislation,

(iii)

such information is being collected for the purposes of the administration and enforcement of the securities legislation of Ontario, and 

(iv)

the Purchaser may contact the following public official in Ontario with respect to questions about the Ontario Securities Commission’s indirect collection of such information at the following address and telephone number:

Administrative Assistant to the Director of Corporate Finance

Ontario Securities Commission

Suite 1903, Box 55, 20 Queen Street West

Toronto, Ontario, M5H 3S8

Telephone:  (416) 593-8086

13.

CONSENT

13.1

By executing this Subscription Agreement, the Purchaser (on its own behalf and, if applicable, on behalf of each beneficial purchaser on whose behalf the Purchaser is acting) acknowledges and expressly consents to:

(a)

the disclosure of Personal Information by the Issuer to the Exchange (as defined in Exchange Appendix 6A) pursuant to Form 4B; and

(b)

the collection, use and disclosure of Personal Information by the Exchange for the purposes described in Appendix 6A or as otherwise identified by the Exchange, from time to time.

For the purposes of this Section 12, “Personal Information" means any information about the Purchaser, and includes information contained in Part II Items 8, 9, 10 and Part IV Item 3(a), as applicable, of Form 4B, and “Form 4B” means Exchange Form 4B entitled Private Placement Notice Form

14.

NOTICE

14.1

Any notice under this Agreement will be given in writing and must be delivered, sent by facsimile transmission, or mailed by prepaid post and addressed to the party to which notice is to be given at the address indicated above, or at another address designated by the party in writing.

14.2

If notice is sent by facsimile transmission or is delivered, it will be deemed to have been given at the time of transmission or delivery.

14.3

If notice is mailed, it will be deemed to have been received 48 hours following the date of mailing of the notice.

14.4

If there is an interruption in normal mail service due to strike, labour unrest, or other cause at or prior to the time a notice is mailed, the notice will be sent by facsimile transmission or will be delivered.

15.

MISCELLANEOUS

15.1

A party may not assign this Agreement without the other party’s written consent.

15.2

All references to currency refer to Canadian dollars.

15.3

Time is of the essence of this Agreement and will be calculated in accordance with the provisions of the Interpretation Act (British Columbia).

15.4

Except as expressly provided in this Agreement and in the agreements, instruments, and other documents contemplated or provided for herein, this Agreement contains the entire agreement between the parties regarding the Securities and there are no other terms, conditions, representations, or warranties, whether expressed, implied, oral, or written, by statute, by common law, by the Issuer, or by anyone else.

15.5

The parties to this Agreement may amend this Agreement only in writing.

15.6

This Agreement enures to the benefit of and is binding on the parties to this Agreement and their successors and permitted assigns.

15.7

This Agreement is to be read with all changes in gender or number required by the context.

15.8

This Agreement will be governed by and construed in accordance with the laws of British Columbia and the parties irrevocably attorn and submit to the jurisdiction of the court of British Columbia with respect to any dispute related to this Agreement.

15.9

The parties may sign this Agreement in any number of counterparts and may deliver this Agreement by facsimile, all of which, when taken together, will be deemed to be one and the same document.

15.10

Provided that it has been accepted by the Issuer, this Agreement is intended to and shall take effect on the effective date of the Agency Agreement, notwithstanding its actual date of execution or delivery by any of the parties.

15.11

All costs and expenses incurred by the Purchaser (including any fees and disbursements of any special counsel obtained by the Purchaser) relating to the sale of the Units to the Purchaser shall be borne by the Purchaser.

APPENDIX I

FORM 4C

CORPORATE PLACEE REGISTRATION FORM

Where subscribers to a Private Placement are not individuals, the following information about the placee must be provided.  This Form will remain on file with the Exchange.  The corporation, trust, portfolio manager or other entity (the “Placee”) need only file it on one time basis, and it will be referenced for all subsequent Private Placements in which it participates.  If any of the information provided in this Form changes, the Placee must notify the Exchange prior to participating in further placements with Exchange listed companies.  If as a result of the Private Placement, the Placee becomes an Insider of the Corporation, Insiders of the Placee are reminded that they must file a Personal Information Form (2A) or, if applicable, Declarations, with the Exchange. 

1.

Placee Information:

(a)

Name:  ______________________________________________________________________ 

(b)

Complete Address:  ____________________________________________________________

____________________________________________________________________________

(c)

Jurisdiction of Incorporation or Creation: ___________________________________________

2.

(a)

Is the Placee purchasing securities as a portfolio manager (Yes/No)? ______________________

(b)

Is the Placee carrying on business as a portfolio manager outside of Canada (Yes/No)? 

_____________________________________________________________________________

3.

If the answer to 2(b) above was “Yes”, the undersigned certifies that:

(a)

It is purchasing securities of an Issuer on behalf of managed accounts for which it is making the investment decision to purchase the securities and has full discretion to purchase or sell securities for such accounts without requiring the client’s express consent to a transaction;

(b)

it carries on the business of managing the investment portfolios of clients through discretionary authority granted by those clients (a “portfolio manager” business) in ____________________ [jurisdiction], and it is permitted by law to carry on a portfolio manager business in that jurisdiction;

(c)

it was not created solely or primarily for the purpose of purchasing securities of the Issuer;

(d)

the total asset value of the investment portfolios it manages on behalf of clients is not less than $20,000,000; and

(e)

it has no reasonable grounds to believe, that any of the directors, senior officers and other insiders of the Issuer, and the persons that carry on investor relations activities for the Issuer has a beneficial interest in any of the managed accounts for which it is purchasing

4.

If the answer to 2(a). above was “No”, please provide the names and addresses of control persons of the Placee:

	Name

	City

	Province or State

	Country

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

The undersigned acknowledges that it is bound by the provisions of applicable Securities Law, including provisions concerning the filing of insider reports and reports of acquisitions (See for example, sections 87 and 111 of the Securities Act (British Columbia) and sections 176 and 182 of the Securities Act (Alberta)).

Acknowledgement - Personal Information

“Personal Information” means any information about an identifiable individual, and includes information contained in sections 1, 2 and 4, as applicable, of this Form.

The undersigned hereby acknowledges and agrees that it has obtained the express written consent of each individual to:

(a)

the disclosure of Personal Information by the undersigned to the Exchange (as defined in Appendix 6B) pursuant to this Form; and 

(b)

the collection, use and disclosure of Personal Information by the Exchange for the purposes described in Appendix 6B or as otherwise identified by the Exchange, from time to time.

Dated at __________________________________ on ________________________________________

_______________________________________________

(Name of Purchaser - please print)

_______________________________________________

(Authorized Signature)

_______________________________________________

(Official Capacity - please print)

_______________________________________________

(please print name of individual whose signature 

appears above)

THIS IS NOT A PUBLIC DOCUMENT

APPENDIX II

CERTIFICATE OF

B.C., ALBERTA AND ONTARIO PURCHASERS

Only Purchasers resident in, or otherwise subject to the securities laws of British Columbia, Alberta or Ontario need to complete this Certificate.

In addition to the covenants, representations and warranties contained in the Subscription Agreement, to which this Appendix II –  Certificate of B.C., Alberta and Ontario Purchasers is attached, the undersigned Purchaser (or the Purchaser on behalf of one or more beneficial purchasers for whom the Purchaser is purchasing as principal) covenants, represents and warrants to the Issuer that the Purchaser (or one or more beneficial purchasers for whom the Purchaser is purchasing as principal) is resident in British Columbia,  Alberta or Ontario and either (i) qualifies under Category 1 – Accredited Investor as an “accredited investor” as defined in NI-45-106 and has checked the appropriate box below, or (ii) qualifies under Category 2 - Minimum $150,000 Investment and has checked the appropriate box below.

1

Accredited Investor

	 	(a)   a Canadian financial institution, or a Schedule III bank;

	 	(b)   the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada);

	 	(c)   a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary;

	 	(d)   a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other than a person registered solely as a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador);

	 	(e)   an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d);

	 	(f)   the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada;

	 	(g)   a municipality, public board or commission in Canada or a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l’île de Montréal or an intermunicipal management board in Québec;

	 	(h)   a national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or an agency of that government;

	 	(i)   a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada) or a pension commission or similar regulatory authority of a jurisdiction of Canada;

	 	(j)   an individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000;

	 	(k)   an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;

	 	(l)   an individual who, either alone or with a spouse, has net assets of at least $5,000,000;

	 	(m)   a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements and that was not created or used solely to purchase or hold securities as an accredited investor under this paragraph (m);

	 	(n)   an investment fund that distributes or has distributed its securities only to;

(i)   a person that is or was an accredited investor at the time of the distribution;

(ii)   a person that acquires or acquired securities in the circumstances referred to in sections 2.10 of NI 45-106 [Minimum amount investment], or 2.19 of NI 45-106 [Additional investment in investment funds], or

(iii)   a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 of NI 45-106 [Investment fund reinvestment];

	 	(o)   an investment fund that distributes or has distributed securities under a prospectus  in a jurisdiction of Canada for which the regulator, or, in Québec, the securities regulatory authority has issued a receipt;

	 	(p)   a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be;

	 	(q)   a person acting on behalf of a fully managed account managed by that person, if that person

(i)   is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction, and

(ii)   in Ontario, is purchasing a security that is not a security of an investment fund;

	 	(r)   a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded;

	 	(s)   an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function;

	 	(t)   a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors;

	 	(u)   an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser;

	 	(v)   a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as

(i)   an accredited investor, or

(ii)   an exempt purchaser in Alberta or British Columbia;

2

Minimum $150,000 Investment

	______

	(a)   Purchasing securities having an acquisition cost of not less than $150,000 paid in cash and was not created or used solely to purchase securities in reliance on the exemption from the dealer registration requirement or prospectus requirement available under section 2.10 of NI 45-106;

“financial assets” means 

(a)

cash,

(b)

securities, or

(c)

a contract of insurance, a deposit or an evidence of a deposit that is not a security for the purposes of securities legislation

“fully managed account” means an account of a client for which a person makes the investment decisions if that person has full discretion to trade in securities for the account without requiring the client’s express consent to a transaction;

“person” includes

(a)

an individual,

(b)

a corporation,

(c)

a partnership, trust, fund and an association, syndicate, organization or other organized group of persons, whether incorporated or not, and

(d)

an individual or other person in that person's capacity as a trustee, executor, administrator or personal or other legal representative;

“related liabilities” means

(a)

liabilities incurred or assumed for the purpose of financing the acquisition or ownership of financial assets, or

(b)

liabilities that are secured by financial assets;

“spouse” means, an individual who,

(a)

is married to another individual and is not living separate and apart within the meaning of the Divorce Act (Canada), from the other individual, or

(b)

is living with another individual in a marriage-like relationship, including a marriage-like relationship between individuals of the same gender; or

(c)

in Alberta, is an individual referred to in paragraph (a) or (b), or is an adult interdependent partner within the meaning of the Adult Interdependent Relationships Act (Alberta);

The representations, warranties, statements and certification made in this Certificate are true and accurate as of the date of this Certificate and will be true and accurate as of the Closing.  If any such representation, warranty, statement or certification becomes untrue or inaccurate prior to the Closing, the undersigned Purchaser shall give the Issuer immediate written notice thereof.

The Purchaser acknowledges that the Issuer will be relying on this Certificate in connection with the Subscription Agreement.

The statements made on this certificate are true.

EXECUTED by the Purchaser at ______________________this _________ day of ______________, 2005.

If a corporation, partnership or other entity:

If an individual:

__________________________________

_________________________________

Signature of Authorized Signatory

Signature

__________________________________

_________________________________

Name and Position of Signatory

Print Name

__________________________________

_________________________________

Name of Purchasing Entity

Jurisdiction of Residence

__________________________________

Jurisdiction of Residence

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