Document:

CREDIT AGREEMENT

 

CREDIT AGREEMENT dated as of February 21,
2012, among EMERALD WB LLC, EMERALD GRB LLC, EMERALD OIL AND GAS USA HOLDINGS INC. and HARTZ ENERGY CAPITAL, LLC. The parties hereto
hereby agree as follows:

 

ARTICLE
I: DEFINITIONS

 

Section 1.1. Defined Terms.
As used in this Agreement, the following terms have the meanings specified below:

 

“Agreement” means this
Credit Agreement, as amended, restated or otherwise modified in accordance with the terms hereof.

 

“Agreement Currency” has
the meaning set forth in Section 7.15.

 

“Assignment in Lieu” means
each assignment, bill of sale and conveyance in lieu of foreclosure with respect to the GRB Assets, or any portion thereof, executed
by Emerald GRB in favor of Lender in recordable form satisfactory to the Lender to be held in escrow pursuant to the Escrow Agreement,
and, collectively, the “Assignments in Lieu”.

 

“Borrower” means Emerald
WB LLC, a Colorado limited liability company.

 

“Business Day” means a
day other than a Saturday, Sunday or any day on which commercial banks in New York, New York are authorized or required by law
to close.

 

“Closing Date” means the
date on which the conditions specified in Section 4.1 are satisfied.

 

“Collateral” has the meaning
set forth in Section 2.7.

 

“Colorado Mortgage” means
(a) the Deed of Trust, Assignment of Production, Security Agreement and Financing Statement, dated as of the date hereof,
by Emerald GRB to the Public Trustee of Routt County, Colorado, for the benefit of Lender, with respect to the GRB Assets and (b)
the Deed of Trust, Assignment of Production, Security Agreement and Financing Statement, dated as of the date hereof, by Emerald
GRB to the Public Trustee of Moffat County, Colorado, for the benefit of Lender, with respect to the GRB Assets.

 

“Commitment” means $15,000,000.

 

“Consolidation Option”
has the meaning set forth in Section 2.9.

 

“Credit Documents” means
this Agreement, the Guaranty, the Security Agreements, the Mortgages, Override Assignments, the Assignments in Lieu, the Escrow
Agreement and any other documents hereafter delivered to Lender by any Obligor evidencing, guarantying or securing the Loan or
the Collateral.

 

“Default” means any event
or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become
an Event of Default.

 

“Default Interest” has
the meaning set forth in Section 2.3(b).

 

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“Emerald GRB” means Emerald
GRB LLC, a Colorado limited liability company.

 

“Emerald USA Holdings”
means Emerald Oil and Gas USA Holdings Inc., a Delaware corporation.

 

“Escrow Agent” means Throne
Law Office, P.C. or any successor, as Escrow Agent under the Escrow Agreement.

 

“Escrow Agreement” means
the Escrow Agreement, dated as of the date hereof, among Lender, Emerald GRB and the Escrow Agent relating to the Assignments in
Lieu.

 

“Final Maturity Date” means
(a) August 21, 2012, or (b) such earlier date on which the Loan shall become due and payable in accordance with
the terms of this Agreement, whether by acceleration or otherwise.

 

“Governmental Authority”
means the government of the United States of America or any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to government.

 

“GRB Assets” means all
assets of Emerald GRB, including oil and gas interests owned in the Green River Basin within the states of Colorado and Wyoming
as such oil and gas assets are more fully described in the Colorado Mortgage and the Wyoming Mortgage delivered concurrently herewith.

 

“Guarantor” means (a) Emerald
GRB, (b) Emerald USA Holdings, and (c) each other Person acceptable to Lender who may from time to time guaranty the
Obligations.

 

“Guaranty” means, collectively,
(a) the Unlimited Guaranty and (b) any other guaranty executed after the date hereof from any Guarantor in favor of Lender.

 

“Indebtedness” means (a)
borrowed money or with respect to loans or advances of any kind, (b) all obligations of such Person evidenced by bonds, debentures,
notes or similar instruments, (c) all obligations of such Person under conditional sale or other title retention agreements
relating to property acquired by such Person, (d) all obligations of such Person in respect of the deferred purchase price
of property or services, (e) all Indebtedness of others secured by any Lien on property owned or acquired by such Person,
whether or not the Indebtedness secured thereby has been assumed, (f) all guarantees by such Person of Indebtedness of others
(provided, however, that the amount of any Indebtedness under this clause (f) subject to any particular guarantee shall be limited
to the lesser of such person’s maximum liability under any such guarantee and the amount of Indebtedness of others guaranteed
by such guarantee), (g) obligations that are required to be classified and accounted for as capital leases on a balance sheet
of such Person under generally accepted accounting principles in the United States of America, (h) all obligations, contingent
or otherwise, of such Person as an account party in respect of letters of credit and (i) all obligations, contingent or otherwise,
of such Person in respect of bankers’ acceptances. The Indebtedness of any Person shall include the Indebtedness of any other
entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a
result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such
Indebtedness provide that such Person is not liable therefor. The Indebtedness of any Person shall not include current accounts
payable incurred in the ordinary course of business.

 

“Judgment Currency” has
the meaning set forth in Section 7.15.

 

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“Lender” means Hartz Energy
Capital, LLC.

 

“Lien” means, with respect
to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on
or of such asset, (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention
agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset
and (c) in the case of securities, any purchase option, call or similar right of a third party with respect to such securities.

 

“Loan” means, collectively,
the loans made to Borrower pursuant to Section 2.1.

 

“Material Adverse Effect”
means a material adverse effect on (a) the business, assets, operations, prospects or financial condition of the Obligors,
considered as a whole, (b) the ability of any Obligor to perform any obligations under any Credit Document or (c) the legality,
validity, binding effect or enforceability against any Obligor of any Credit Document to which it is a party.

 

“Material Indebtedness”
means Indebtedness (other than indebtedness owing to another Obligor) of any one or more of the Obligors either (a) owing
to Lender or its affiliates or (b) in an aggregate principal amount exceeding $500,000 or the equivalent thereof.

 

“Mortgage” means, (i) the
Colorado Mortgage, (ii) the Wyoming Mortgage and (iii) the North Dakota Mortgage, to be delivered to Lender by Emerald
GRB and Borrower granting Lender a first priority security interest in and to all of such Obligor’s right, title and interest
in and to the GRB Assets or the Properties, as applicable.

 

“Mortgagor” means Borrower
and Emerald GRB.

 

“Net
ORRI Acres” means the number of acres equal to the product of the ORRI assigned to Lender pursuant to Section
2.3(a) multiplied by the Net Mineral Acres of the Properties; as such term is defined in the Purchase Agreement.

 

“North Dakota Mortgage”
means the Mortgage, Assignment of Production, Security Agreement and Financing Statement, dated as of the date hereof, by Borrower
to Lender, with respect to the Properties.

 

“Obligations” means any
now existing or hereafter arising obligations of any Obligor to Lender, whether primary or secondary, direct or indirect, absolute
or contingent, joint or several, secured or unsecured, due or not, liquidated or unliquidated, arising by operation of law or otherwise
under any Credit Document whether for principal, interest, fees, expenses or otherwise, together with all costs of collection or
enforcement, including, without limitation, reasonable attorneys’ fees incurred in any collection efforts or in any action
or proceeding.

 

“Obligor” means Borrower
and Guarantors.

 

“ORRI”
means an overriding royalty interest, proportionately reduced to the interest of Borrower in the Properties, in and to all of all
of the oil, gas and other liquid hydrocarbons produced and saved from the Properties, free of any and all expenses of development,
production, transportation, marketing and any other related or similar expenses.

 

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“Override Assignment” means,
collectively, any and all the assignments, in form and substance satisfactory to Lender, necessary or desirable, in Lender’s
sole discretion, to convey from Borrower to Lender the ORRI set forth in Section 2.3(a), each with an effective date of February
1, 2012.

 

“Participation Agreement”
means that Participation Agreement entered into the 19th day of August 2011, between Entek GRB LLC (“Entek”),
a Delaware limited liability company and Emerald GRB.

 

“Permitted Lien” means
the Liens permitted in Section 5.7.

 

“Person” means any natural
person, corporation, limited liability company, limited partnership, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

 

“Properties” has the meaning
set forth in Section 2.1 of the Purchase Agreement.

 

“Purchase Agreement” means
that certain Purchase and Sale Agreement dated as of February 21, 2012 and effective as of February 1, 2012 by and between North
Plains Energy, LLC and Borrower.

 

“Security Agreements” mean
(a) the Pledge and Security Agreement dated as of the date hereof by Borrower in favor of Lender, (b) the Pledge and
Security Agreement dated as of the date hereof by Emerald GRB in favor of Lender, (c) the Pledge and Security Agreement dated
as of the date hereof by Emerald USA Holdings in favor of Lender, and (d) any pledge and security agreement entered into from
time to time by any Obligor in favor of Lender.

 

“Security Documents” means
the Security Agreements and the Mortgages.

 

“Transactions” means the
execution, delivery, and performance by the Obligors of the Credit Documents, the borrowing and repayment of the Loan, the pledge,
assignments or grant of the security interests in the Collateral pursuant to the Credit Documents, the payment of interest and
fees thereunder and the use of the proceeds of the Loan.

 

“Unlimited Guaranty” means
the Unlimited Guaranty dated as of the date hereof from Guarantor in favor of Lender.

 

“Wyoming Mortgage” means
the Mortgage, Assignment of Production, Security Agreement and Financing Statement, dated as of the date hereof, by Emerald
GRB to Lender, with respect to the GRB Assets.

 

Section 1.2. Terms Generally.
The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context
may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,”
“includes,” and “including” shall be deemed to be followed by the phrase “without limitation.”
The word “will” shall be construed to have the same meaning and effect as the word “shall.” Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall
be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise
modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein,”
“hereof,” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in
its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, and Schedules shall
be construed to refer to Articles and Sections of, and Schedules to, this Agreement and (e) the words “asset”
and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and general intangibles.

 

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Section 1.3. Specified Times and
Dates; Determinations. All times specified in this Agreement shall be determined, unless stated specifically herein to the
contrary, on the basis of the prevailing time in New York City. Unless stated specifically herein to the contrary, if any day or
date specified in this Agreement for any notice, action or event is not a Business Day, then the due date for such notice, action
or event shall be extended to the immediately succeeding Business Day; provided that interest shall accrue on any payments
due by Borrower which are extended by the operation of this Section 1.3. Any determination by Lender hereunder shall, in the absence
of manifest error, be conclusive and binding.

 

ARTICLE
II: THE LOAN

 

Section 2.1. Loan. Subject to
the terms and conditions and relying upon the representations and warranties herein set forth, Lender hereby agrees to make a loan
to Borrower on the Closing Date in a principal amount equal to the Commitment.

 

Section 2.2. Repayment of Loan.
Any principal of the Loan not previously paid shall be payable on the Final Maturity Date.

 

Section 2.3. Interest.

 

(a)          Interest
Rate. Except for Default Interest (as defined below) or as otherwise set forth in this Agreement, there will be no cash interest
on the Loan. In lieu of cash interest, Lender shall receive an ORRI equal to 2.15% of 8/8ths, which, in accordance with the last
sentence of this Section 2.3(a), shall be in no event less than 215 Net ORRI Acres, to be delivered in accordance with the Override
Assignments, which ORRI shall be reduced as follows: (a) if the Obligations are repaid in full on or before April 21,
2012, then on such date that the Obligations are repaid in full, Lender will assign back to Borrower an ORRI equal to 0.50% of
8/8ths (and Lender’s remaining ORRI shall be no less than 1.65% of 8/8ths and, in accordance with the last sentence of this
Section 2.3(a), shall be no less than 165 Net ORRI Acres) and Lender shall pay to Borrower (to the extent actually received by
Lender) any payments received by Lender on account of the ORRI assigned back, and (b) if the Obligations are repaid in full
after April 21, 2012, but on or before June 21, 2012, then on such date that the Obligations are repaid in full, Lender
will assign back to Borrower an ORRI equal to 0.25% of 8/8ths (and Lender’s remaining ORRI shall be no less than 1.90% of
8/8ths and, in accordance with the last sentence of this Section 2.3(a), shall be in no event less than 190 Net ORRI Acres) and
Lender shall pay to Borrower (to the extent actually received by Lender) any payments received by Lender on account of the ORRI
assigned back. In the event that after the Obligations are repaid in full, the Net ORRI Acres are less than as set forth in the
prior sentence, Borrower shall, at the request of the Lender, assign an additional percentage of ORRI such that the Lender shall
receive Net ORRI Acres of no less than as set forth in the prior sentence; the obligations of the Borrower hereunder will survive
repayment in full of the Obligations and the termination of this Agreement.

 

(b)          Default
Interest. After the occurrence and during the continuance of an Event of Default, to the extent permitted by applicable law,
Borrower shall pay on demand, on the principal amount of the outstanding Obligations, interest at a rate per annum equal to 12%
per annum plus the ORRI applicable to the Loan (“Default Interest”). Default Interest shall accrue from
the date on which such Event of Default occurred until the date on which the Loan and all outstanding Obligations have been paid
in full. Default Interest shall be in addition to any interest vested in Lender under Section 2.3(a).

 

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(c)          Maximum
Interest Rate. Notwithstanding anything in any Credit Document to the contrary, in no event shall the interest charged under
any Credit Document exceed the maximum rate of interest permitted under applicable law. Any payment made which if treated as interest
would cause the interest charged to exceed the maximum rate permitted shall instead be held by Lender to the extent of such excess
as additional Collateral hereunder and applied to future interest payments as and when such amount becomes due and payable hereunder.

 

(d)          Calculations.
Except as otherwise set forth herein, interest shall be calculated on the basis of a year of 360 days. In computing interest on
the Loan (or interest on such interest), the date of the making of the Loan shall be included and the date of payment of the Loan
shall be excluded.

 

(e)          Adjustments
under Purchase Agreement. Subject to Section 2.3(a), regarding the minimum number of Net ORRI Acres to be received by Lender,
in the event any Properties are reassigned to North Plains Energy LLC due to title defects or environmental defects resulting in
a reduction of the number of acres purchased by Borrower under the Purchase Agreement, Lender shall, at the request and expense
of Borrower, release the North Dakota Mortgage as to such reassigned Properties and assign back any ORRI on such reassigned Properties.

 

Section 2.4. Prepayment of Loan.

 

(a)          Optional
Prepayment. Borrower shall have the right to prepay the Loan at any time in whole or from time to time in part.

 

(b)          Notices.
Any prepayment or repayment of the Loan may only be made on at least two (2) Business Days’ (or such shorter period as may
be agreed to by Lender) irrevocable prior written notice to Lender.

 

Section 2.5. Noteless Agreement;
Evidence of Indebtedness. Lender may require that the Loans be evidenced by a note. In such event, Borrower shall promptly
prepare, execute and deliver to Lender one or more promissory notes payable to the order of Lender in form reasonably determined
by Lender.

 

Section 2.6. Payments. All payments
by any Obligor, to the extent applicable, shall be payable on the due date thereof, in immediately available funds in Dollars,
without any setoff, counterclaim, withholding or deduction of any kind. Each Obligor hereby authorizes Lender to charge any of
such Obligor’s accounts for payments of principal, interest and other amounts due hereunder. All payments shall be applied
by Lender as follows: first, to the payment of all accrued but unpaid fees, costs or expenses under the Credit Documents; second,
to the payment of all accrued but unpaid interest payable in cash under the Credit Documents; third, to the repayment of then outstanding
principal amount of the Loan; and fourth, the balance, if any, to Obligor or to whomsoever may be entitled to such amounts as determined
by Lender in its reasonable discretion.

 

Section 2.7. Guaranty and Collateral.
The Obligations of each Obligor under the Credit Documents shall be (a) guarantied, jointly and severally, by the Guarantors;
and (b) secured by the following collateral (“Collateral”), which is more specifically described in the
Security Documents: (i) all assets of Emerald GRB, (ii) all assets of the Borrower; (iii) all equity interests of
the Borrower and Emerald GRB owned by Emerald USA Holdings, (iv)  the Properties, and (v) such additional assets pledged
to Lender by any Obligor from time to time after the Closing Date.

 

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Section 2.8. Taxes. (a) Any
and all payments made by Borrower hereunder shall be made free and clear of and without deduction for any present or future taxes,
levies, imposts, deductions, charges, or withholdings, and all liabilities with respect thereto to the extent attributable to the
Loan or the Collateral, excluding (i) taxes imposed on net income and (ii) all income and franchise taxes of the United
States of America, any political subdivisions thereof, and any state of the United States of America, and any political subdivisions
thereof (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter referred
to as “Taxes”). (b) If Borrower shall be required by law to deduct any Taxes from or in respect of any
sum payable hereunder, (i) the sum payable shall be increased as may be necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section 2.8) Lender receives an amount equal to the sum
it would have received had no such deductions been made, (ii) Borrower shall make such deductions and (iii) Borrower
shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law. (c)
Borrower shall pay and hereby indemnifies Lender from any documentary stamp Taxes in connection with the execution or delivery
of any Credit Document. Within 30 days after the date of any payment of Taxes, Borrower will furnish Lender with evidence of payment
thereof. Borrower hereby indemnifies Lender for the full amount of Taxes (including, without limitation, any Taxes imposed by any
jurisdiction on amounts payable under this Section) paid by Lender and any liability (including penalties, interest and expenses)
arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally asserted. Payment pursuant to this
indemnification shall be made upon written demand thereof. The obligations of Borrower under this paragraph shall survive the termination
of this Agreement.

 

Section 2.9. Consolidation Option.
Any time after the Final Maturity Date but prior to the date that is 90 calendar days after the Final Maturity Date, Lender shall
have the right, but not the obligation, to consolidate its Net ORRI Acres into a subset of DSUs, as such term is defined in the
Purchase Agreement (the “Consolidation Option”), in Lender’s sole discretion; provided that after the
exercise of such Consolidation Option, (i) the Lender’s aggregate Net ORRI Acres resulting from such consolidation will
not exceed the aggregate Net ORRI Acres Lender is entitled to under Section 2.3(a), and (ii) such consolidation does not result
in Lender’s owning greater than a 3% of 8/8ths of ORRI included in any applicable DSUs in which the Properties, or any portion
thereof, are located, in each case proportionately reduced to the interest of Borrower in such DSU. If required as a condition
to Borrower obtaining any financing from any third party, Borrower may require Lender to determine whether or not to exercise its
Consolidation Option upon 15 Business Days’ prior written notice, and upon any such election to exercise the Consolidation
Option, Lender will have 15 Business Days thereafter to the complete any such consolidation. Prior to the exercise of the Consolidation
Option, the Obligors agree to provide Lender with prompt and complete access to all permit information and all production information
with respect to the Properties. The consolidation hereunder is effective as of the date that the Consolidation Option is consummated
pursuant to this Section 2.9. This Section 2.9 will survive repayment in full of the Obligations and termination of this Agreement.

 

ARTICLE
III: REPRESENTATIONS AND WARRANTIES

 

Each Obligor represents and warrants to Lender
on the date hereof and on the date of the making of each Loan that:

 

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Section 3.1. Organization; Powers;
Authorization; Enforceability, Etc. (a) Each Obligor is duly organized or formed, validly existing and in good standing
(if and to the extent applicable) under the laws of the jurisdiction of its organization or formation, has all requisite power
and authority to carry on its business as now conducted and, except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect, is qualified to do business in every jurisdiction where
such qualification is required, except that the Borower is not qualified to do business in North Dakota. (b) The Transactions
are within the powers of each Obligor and have been duly authorized by all necessary action for each Obligor. (c) Each Credit
Document has been duly executed and delivered by each Obligor party hereto and constitutes a legal, valid and binding obligation
of such Obligor enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law. (d) The Transactions (i) do not require any consent
or approval of, registration or filing with, or any other action by, any Governmental Authority other than filing of the Mortgages
and UCC-1 financing statements against the Obligors, (ii) will not violate any applicable law or regulation or the charter,
by-laws, trust agreement or other organizational documents of any Obligor or any order of any Governmental Authority binding on
any Obligor, (iii) will not violate or result in a default under any indenture, agreement or other instrument binding upon
any Obligor or its assets, or give rise to a right thereunder to require any payment to be made by such Obligor to the extent that
such violation, or such default or right to payment could be reasonably expected to result in a Material Adverse Effect, and (iv) will
not result in the creation or imposition of any Lien on any asset of any Obligor other than pursuant to the Credit Documents. (e) Except
as set forth in Schedule 3.1(e), there are no actions, suits or proceedings by or before any arbitrator or Governmental Authority
pending against or, to the knowledge of any Obligor, threatened against or affecting any Obligor (i) as to which there is
a reasonable possibility of an adverse determination or that, if adversely determined, could reasonably be expected, individually
or in the aggregate, to result in a Material Adverse Effect or (ii) that involve the Credit Documents, the Collateral or the
Transactions. (f) Each Obligor is in compliance with all laws, regulations and orders of any Governmental Authority applicable
to it or its property and all indentures, agreements and other instruments binding upon it or its property, to the extent that
any noncompliance therewith could be reasonably expected to result in a Material Adverse Effect. (g) No Default has occurred
and is continuing.

 

Section 3.2. Investment Company
Status. No Obligor or any of its subsidiaries is an “investment company” as defined in, or subject to regulation
under, the Investment Company Act of 1940.

 

Section 3.3. Security Interests;
Certain Information. To the extent a valid and perfected first priority Lien on all of the Collateral can be established by
filing a financing statement in the Offices of the Secretaries of State of Colorado and Delaware, upon filing and proper recording
of the UCC-1 financing statements against the Obligors in the offices of the Secretaries of State of Colorado and Delaware, Lender
will have a valid and perfected first priority Lien on the Collateral, subject to Permitted Liens, and following such filings,
all filings and other actions necessary for the perfection and first priority status of such Liens will have been made or taken
and will remain in full force and effect. The state of principal residence or organization and any names used within the past five
years of each Obligor is set forth on Schedule I.

 

Section 3.4. No Material Adverse
Change. Since the date hereof, there has been no change in the financial condition of such Obligor that could have a Material
Adverse Effect.

 

Section 3.5. Taxes. (a) Each
Obligor has timely filed or caused to be filed all tax returns and reports required to have been filed (giving effect to any extensions)
and has paid or caused to be paid all taxes required to have been paid by it, except taxes that are being contested in compliance
with Section 5.5. The Tax Returns delivered to Lender prior to the Closing Date are the true, correct and complete tax returns
of the Obligor identified therein as of the date thereof. (b) Obligors do not intend to and shall not treat the Loan and related
transactions as being a “reportable transaction” (within the meaning of Treasury Regulation Section 1.6011-4).
In the event Obligors determine to take any action inconsistent with such intention or treatment, (i) Obligors will promptly
notify Lender thereof and (ii) Obligors acknowledge that Lender may treat the Loan as part of a transaction that is subject
to Internal Revenue Code Section 6112 and the Treasury Regulations thereunder, and that Lender may file such IRS forms or maintain
such lists and other records to the extent required by such statute and regulations. No part of the proceeds of any Loan will be
used directly or indirectly in connection with any “listed transaction” (within the meaning of Treasury Regulation
Section 1.6011–4(b)(2)).

 

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Section 3.6. Disclosure. All
agreements, instruments and corporate or other restrictions, and all other matters known to any Obligor pertaining to such Obligor
(and not generally to general economic conditions), that, individually or in the aggregate, could reasonably be expected to result
in a Material Adverse Effect have been disclosed to Lender.  To the best knowledge of the Obligors, none of the written
reports, financial statements, certificates or other written information (other than financial projections and pro forma
information) furnished by or on behalf of any Obligor to Lender in connection with the negotiation of the Credit Documents or delivered
hereunder (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to
state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading.

 

ARTICLE
IV: CONDITIONS

 

Section 4.1. Closing Date. The
obligations of Lender to make the Loan to Borrower hereunder shall not become effective until each of the following conditions
is satisfied:

 

(a)          Lender
shall have received the following documents:

 

(i)          a
counterpart of this Agreement executed by each Obligor;

 

(ii)         the
Guaranty executed by each Guarantor;

 

(iii)        the
Security Agreement executed by Borrower;

 

(iv)        the
Security Agreement executed by Emerald GRB;

 

(v)         the
Security Agreement executed by Emerald USA Holdings, including Exhibits C-1 and C-2 thereto;

 

(vi)        one
or more Assignments in Lieu as required by Lender;

 

(vii)       the
Escrow Agreement executed by Emerald GRB and Escrow Agent;

 

(viii)      a
certificate of an officer of Borrower certifying as to its (a) Articles of Organization, (b) Limited Liability Company
Agreement, (c) resolutions authorizing the Transactions, and (d) incumbency of officers of Borrower signing the Credit
Documents;

 

(ix)         a
certificate of an officer of Emerald GRB certifying as to its (a) Articles of Organization, (b) Limited Liability Company
Agreement, (c) resolutions authorizing the Transactions, and (d) incumbency of officers of Emerald GRB signing the Credit
Documents;

 

(x)          a
certificate of an officer of Emerald USA Holdings certifying as to its (a) Certificate of Incorporation, (b) Bylaws,
(c) resolutions authorizing the Transactions, and (d) incumbency of officers signing the Credit Documents;

 

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(xi)         the
Colorado Mortgage to be filed in Routt County, Colorado;

 

(xii)        the
Colorado Mortgage to be filed in Moffat Country, Colorado;

 

(xiii)       the
Wyoming Mortgage;

 

(xiv)      the
North Dakota Mortgage;

 

(xv)       the
Override Assignment(s); and

 

(xvi)      evidence
that all expenses of Lender in connection with the transactions contemplated by this Agreement, including any third-party expenses
subject to an agreed upon cap, shall have been paid by Borrower, such payment by Borrower not to exceed $30,000 and which amount
may be deducted by Lender from the loan proceeds disbursed under Section 2.1.

 

(b)          Lender
shall have received such documents, certificates and legal opinions regarding each Obligor as to the organization or formation,
existence and good standing (if and to the extent applicable) of each Obligor, the authorization of the Transactions, the execution,
delivery and enforceability of the Credit Documents by each Obligor, as requested by Lender and all in form and substance satisfactory
to Lender and its counsel.

 

Section 4.2. Additional Conditions
to Loan. On the Closing Date: (a) the representations and warranties set forth in Article III hereof and in any documents
delivered herewith, shall be true and correct with the same effect as though made on and as of such date; (b) Lender shall
be satisfied that no event has occurred which could have a Material Adverse Effect; (c) each Obligor shall be in compliance
with all the terms and provisions contained herein and in the Credit Documents to be observed or performed, and (d) no Default
shall have occurred and be continuing.

 

ARTICLE
V: COVENANTS

 

Until the principal of and interest on the
Loan and all fees and other Obligations payable under the Credit Documents shall have been paid in full, each Obligor covenants
and agrees with Lender that:

 

Section 5.1. Reporting Requirements.
Each of the following shall be furnished to Lender:

 

(a)          promptly,
upon any change of any of the information set forth in Schedule I, written notice thereof;

 

(b)          promptly,
upon receipt of Obligor, any information or written materials with respect to the transactions contemplated by the Purchase Agreement
or with respect to the Properties, including, but not limited to, any geological surveys provided by third parties or internal
reports prepared by Obligor or any affiliate of Obligor with respect to the Properties; and

 

(c)          promptly,
and in any event not less than 15 days prior written notice of any impending default with respect to any financing agreement with
any third party with respect to the Properties.

 

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Section 5.2. North Dakota Qualification;
Additional opinions. Lender shall have received no later than February 27, 2012: (a) evidence that Borrower has qualified to
do business and is in good standing in the State of North Dakota and (b) an opinion of Counsel to the Obligors opining as to the
opinions set forth on Schedule 5.2(b), each in form and substance satisfactory to the Lender.

 

Section 5.3. Information and Notices.
The Obligors will furnish or will cause to be furnished to Lender promptly following any request therefor, such other information
regarding the operations, business affairs and financial condition of each Obligor, or compliance with the terms of the Credit
Documents, as Lender may reasonably request. Each Obligor hereby agrees to cooperate with Lender and provide true, accurate and
complete information in response to any reasonable request by Lender to enable Lender to comply with the requirements of the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 Title III of
Pub. L. 107-56 (signed into law October 26, 2001). Borrower will furnish to Lender prompt written notice of the following:  (a) the
occurrence of any Default; (b) the filing or commencement of any action, suit or proceeding by or before any arbitrator or
Governmental Authority against or affecting any Obligor that, if adversely determined, could reasonably be expected to result in
a Material Adverse Effect; and (c) any other development that results in, or could reasonably be expected to result in, a
Material Adverse Effect. Each notice delivered under this Section shall be accompanied by a statement of Borrower setting forth
the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

 

Section 5.4. Books and Records;
Inspection Rights; Access. Borrower will keep proper books of record and account in which full, true and correct entries are
made of all dealings and transactions in relation to its business and activities. Borrower will permit any representatives designated
by Lender, during normal business hours and upon reasonable advance notice, to visit and inspect its properties, to examine and
make extracts from its books and records, and to directly discuss its affairs, finances and condition with its partners or trustees
(or its designee), officers and independent accountants, as applicable.

 

Section 5.5. Existence; Payment
of Obligations; Compliance with Laws. Each Obligor will do or cause to be done all things necessary to preserve, renew and
keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the
conduct of its business. Each Obligor will pay its liabilities including tax liabilities that, if not paid, could reasonably be
expected to result in a Material Adverse Effect before the same shall become delinquent or in default, except where (a) the
validity or amount thereof is being contested in good faith by appropriate proceedings, (b) such Obligor has set aside on
its books adequate reserves with respect thereto and (c) the failure to make payment pending such contest could not reasonably
be expected to result in a Material Adverse Effect. Each Obligor will comply with all laws, rules, regulations and orders of any
Governmental Authority applicable to it, except where the failure to do so, individually or in the aggregate, could not reasonably
be expected to result in a Material Adverse Effect.

 

Section 5.6. Use of Proceeds.
The proceeds of the Loan shall be used by Borrower as follows (a) not less than $11,850,000 of the Loan proceeds shall be used
to purchase the Properties pursuant to the Purchase Agreement and (b) the balance shall be used solely for expenses directly related
to Mortgagors’ assets and expenses incurred under the Participation Agreement. No part of the proceeds of any Loan will be
used directly or indirectly for the purpose of purchasing or carrying margin stock within the meaning of Regulations T, U, or X
of the Federal Reserve Board.

 

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Section 5.7. Liens. The Obligors
shall not permit any Liens to exist on any Collateral except (a) Liens created pursuant to the Credit Documents, (b) Liens
imposed by law, such as materialmen’s, mechanics’, carriers’, landlords’, workmen’s and repairmen’s
Liens and other similar Liens arising in the ordinary course of business securing obligations (other than Indebtedness for borrowed
money) (i) that are not overdue for a period of more than 60 days or (ii) the amount, applicability or validity of which
are being contested in good faith and with respect to which the Borrower has established reserves in accordance with generally
accepted accounting principles, (c) pledges or deposits to secure obligations incurred in the ordinary course of business
under workers compensation laws, unemployment insurance or similar social security legislation (other than in respect of employee
benefit plans subject to ERISA) or to secure public or statutory obligations; (d) Liens, pledges and deposits securing the
performance of, or payment in respect of, bids, tenders, leases, contracts (other than for the repayment of borrowed money), surety
and appeal bonds, letters of credit, and other obligations of a similar nature incurred in the ordinary course of business, and
(e) Permitted Encumbrances permitted under the respective Mortgage.

 

Section 5.8. Fundamental Changes.
(a) No Obligor shall merge or consolidate with any other Person, or permit any other Person to merge or consolidate with it,
other than another Obligor. (b) No Obligor shall sell, transfer, lease or otherwise dispose of (in one transaction or in a
series of transactions) the properties subject to the Mortgages or the equity interests of the Mortgagors, except as permitted
under the terms of the Mortgages. (c) No Obligor shall distribute, sell, transfer, lease or otherwise dispose of (in one transaction
or in a series of transactions) any Collateral other than in the ordinary course of business. (d) No Obligor shall enter into
any agreement or undertaking restricting the right or ability of such Obligor or Lender to sell, assign or transfer any of the
Collateral or proceeds thereof. (e) No Obligor shall alter, amend, modify or change its certificate of incorporation, articles
of organization, bylaws, operating agreement, trust agreement or other organizational documents in any manner which could have
a Material Adverse Effect, except that Emerald USA Holdings may amend its certificate of incorporation in connection with the filing
of a registration statement with the U.S. Securities and Exchange Commission.

 

Section 5.9. Indebtedness. Mortgagors
shall not have any Indebtedness other than Indebtedness owing to Lender except (i) inter-company debt owing to Emerald Oil
and Gas NL; (ii) amounts owed under capital leases up to $100,000 in the aggregate and (iii) obligations under the Participation
Agreement and other joint operating agreements entered into in the ordinary course of business.

 

Section 5.10. No Other Business.
Mortgagors shall not engage in any business other than businesses of the type conducted by Mortgagors on the date hereof.

 

Section 5.11. Dividends and Distributions.
Mortgagors shall not declare or pay any dividends, redemptions or repurchases of stock or membership interests, distributions and
withdrawals (as applicable) to its owners or any affiliates in respect of equity.

 

Section 5.12. Asset Dispositions.
Mortgagors shall not distribute, sell, transfer, lease or otherwise dispose of (in one transaction or in a series of transactions)
any of its assets except in the ordinary course of business and for not less than fair market value.

 

Section 5.13. Investments. Mortgagors
shall not have any existing, or make any investments in any Person, acquire any equity interests in any Person or make any capital
contributions or other transfers of assets to any Person, except (a) investments in cash equivalents and (b) investments in Mortgagors’
existing line of business.

 

Section 5.14. Loans. Mortgagors
shall not make any loans, advances or other extensions of credit to any Person other than the other Mortgagor.

 

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Section 5.15. Insurance. If
Obligor is an operator of any well, it shall maintain insurance satisfactory to Lender as to amount, nature and carrier covering
property damage (including loss of use and occupancy) to any such operated Obligor’s properties, as is typical in the oil
and gas industry for the type and nature of such property and operations, public liability insurance including coverage for contractual
liability, product liability and workers’ compensation, and any other insurance which is usual for Obligor’s business.

 

Section 5.16. Further Assurances.
Each Obligor shall upon request by Lender (a) promptly correct any material defect or error that may be discovered in any
Credit Document or in the execution, acknowledgement or recordation thereof and (b) do, execute, acknowledge, deliver, record,
re-record, file, re-file, register and re-register any and all such further acts, deeds, conveyances, security agreements, pledge
agreements, mortgages, deeds of trust, trust deeds, assignments, estoppel certificates, financing statements and continuation thereof,
termination statements, notices of assignment, transfers, certificates, assurances and other instruments as Lender may require
from time to time in order to (i) carry out more effectively the purposes of this Agreement or any other Credit Documents,
(ii) subject to the Liens and security interests created by any of the Credit Documents any of the Obligors’ properties,
rights or interests covered or now or hereafter intended to be covered by any of the Credit Documents, (iii) perfect and maintain
the validity, effectiveness and priority of any of the Credit Documents and the Liens and security interests intended to be created
thereby and (iv) better assure, convey, grant, assign, transfer, preserve, protect and confirm unto Lender the rights granted
or now or hereafter intended to be granted to Lender under any Credit Document. Lender shall upon request by Borrower promptly
correct any material defect or error that may be discovered in any Credit Document or in the execution, acknowledgement or recordation
thereof.

 

ARTICLE
VI: EVENTS OF DEFAULT

 

Section 6.1. If any of the following
events (“Events of Default”) shall occur:

 

(a)          Borrower
shall fail to pay any principal of or interest on the Loan when and as the same shall become due and payable, whether at the due
date thereof or at a date fixed for prepayment thereof or otherwise;

 

(b)          Borrower
shall fail to pay any fee or any other amount (other than an amount referred to in clause (a) of this Section 6.1) payable under
any Credit Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period
of five days after the receipt of written notice of the date on which the same shall have become due and payable (it being understood
that invoices by Lender to Borrower shall constitute such written notice);

 

(c)          any
representation or warranty made or deemed made by or on behalf of any Obligor in or in connection with any Credit Document or any
amendment or modification thereof, or in any report, certificate, financial statement or other document furnished pursuant to or
in connection with any Credit Document or any amendment or modification hereof shall prove to have been incorrect in any material
respect when made or deemed made;

 

(d)          any
Obligor shall fail to observe or perform any covenant, condition or agreement contained in Sections 5.1 and 5.2 or 5.6 through
5.16;

 

(e)          any
Obligor shall fail to observe or perform any covenant, condition or agreement contained in any Credit Document (other than those
specified in clause (a), (b), (c) or (d) of this Section 6.1), and such failure shall continue unremedied for a period of 30 days
after notice thereof from Lender to any Obligor;

 

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(f)          any
Obligor shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness,
when and as the same shall become due and payable, after the expiration of any grace or cure periods;

 

(g)          any
event or condition occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables
or permits (with or without the giving of notice, the lapse of time or both) the holder or holders of any Material Indebtedness
or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment,
repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that this clause (g) shall not apply
to secured indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such
indebtedness;

 

(h)          an
involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization
or other relief in respect of any Obligor or their debts, or of a substantial part of their assets, under any federal, state or
foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for any Obligor or for a substantial part of their assets, and,
in any such case, such proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering
any of the foregoing shall be entered;

 

(i)          any
Obligor shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief
under any federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent
to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (h)
of this Section 6.1, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator
or similar official for any Obligor or for a substantial part of their assets, (iv) file an answer admitting the material
allegations of a petition filed against them in any such proceeding, (v) make a general assignment for the benefit of creditors
or (vi) take any action for the purpose of effecting any of the foregoing;

 

(j)          any
Obligor shall become unable, admit in writing or fail generally to pay their debts as they become due;

 

(k)          one
or more judgments for the payment of money in an aggregate amount in excess of $500,000 or the equivalent thereof shall be rendered
against any Obligor or any combination thereof and the same shall remain undischarged for a period of 30 consecutive days during
which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy
upon any assets of any Obligor to enforce any such judgment;

 

(l)          any
material provision of any Credit Document shall, for any reason, cease to be valid and binding on any Obligor, or any Obligor shall
so state in writing; or any Credit Document shall, for any reason, cease to create a valid Lien on any of the Collateral purported
to be covered thereby or any Lien granted to Lender shall cease to be a perfected first priority Lien, or any Obligor shall so
state in writing;

 

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then, and in every such event (other
than an event with respect to Borrower described in clause (h) or (i) of this Section 6.1), and at any time thereafter during the
continuance of such event, Lender may by notice to Borrower, take any or all of the following actions, at the same or different
times:  (i) terminate the Commitment, and thereupon the Commitment shall terminate immediately, and (ii) declare
the Loan then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and
payable may thereafter be declared to be due and payable), and thereupon the principal of the Loan so declared to be due and payable,
together with accrued interest thereon and all fees and other Obligations of Borrower accrued hereunder, shall become due and payable
immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by Borrower; and
in case of any event with respect to Borrower described in clause (h) or (i) of this Section 6.1, the Commitment shall automatically
terminate and the principal of the Loan then outstanding, together with accrued interest thereon and all fees and other Obligations
of Borrower accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice
of any kind, all of which are hereby waived by Borrower.

 

ARTICLE
VII: MISCELLANEOUS

 

Section 7.1. Notices. All notices
and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed
by U.S. mail or sent by telecopy (with confirmed receipt or followed by overnight delivery) to the addresses (or telecopy numbers)
set forth on the signature pages hereof. Any party hereto may change its address or telecopy number for notices and other communications
hereunder by notice to the other parties hereto. All notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date of receipt or, if mailed, the fifth Business Day
following the date so mailed, if earlier.

 

Section 7.2. Amendment and Waiver.
No alteration, modification, amendment or waiver of any terms and conditions of any of the Credit Documents shall be effective
or enforceable against Lender or Borrower unless set forth in a writing signed by Lender or Borrower. Without limiting the generality
of the foregoing, the making of each Loan shall not be construed as a waiver of any Default, regardless of whether Lender may have
had notice or knowledge of such Default at the time.

 

Section 7.3. Expenses; Indemnity;
Damage Waiver.

 

(a)          Borrower
shall pay all reasonable out-of-pocket expenses incurred by Lender, including but not limited to fees and disbursements of counsel
for Lender, in connection with the negotiation and preparation of any Credit Documents, any amendments, modifications or waivers
of the provisions thereto requested or agreed to by any Obligor (whether or not the transactions contemplated hereby or thereby
shall be consummated), the addition or release of any collateral or the enforcement or protection of Lender’s rights in connection
with any Credit Document, including its rights under this Section in connection with the Loan made hereunder or any workout, restructuring
or negotiations in respect thereof. Borrower hereby authorizes and directs Lender to pay any legal fees relating to this Agreement
from the proceeds of any borrowings hereunder and any accounts of Borrower maintained with Lender.

 

(b)          Each
Obligor shall indemnify, jointly and severally, Lender and each Affiliate, director, officer, employee, agent and advisor of Lender
(each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses, including the reasonable fees and disbursements of counsel for any Indemnitee
(the “Losses”), incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result
of, any actual or prospective claim, litigation, investigation or proceeding relating to (i) the execution or delivery of
any Credit Document, the performance by the parties hereto of their respective Obligations thereunder or the consummation of the
Transactions or (ii) the Loan or the use of the proceeds therefrom, in each case, whether based on contract, tort or any other
theory and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee,
be available to the extent that such Losses are determined by a final judgment of a court of competent jurisdiction to have been
incurred by reason of gross negligence, bad faith or willful misconduct of such Indemnitee.

 

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(c)          To
the extent permitted by applicable law, no Obligor shall assert, and hereby waives, any claim against any Indemnitee, on any theory
of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of,
in connection with, or as a result of, any Credit Document or any agreement or instrument contemplated thereby, the Transactions,
each Loan or the use of the proceeds thereof.

 

(d)          All
amounts due under this Section shall be payable promptly after written demand therefor. The Obligations of the Obligors under this
Section shall survive payment in full of the Loan.

 

Section 7.4. Successors and Assigns.
The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns, except that no Obligor may assign or otherwise transfer any of its rights or Obligations hereunder and any attempted
assignment or transfer by any Obligor shall be null and void.

 

Section 7.5. Survival. All covenants,
agreements, representations and warranties made by any Obligor in any Credit Document and in the certificates or other instruments
delivered in connection with or pursuant to any Credit Document shall be considered to have been relied upon by the other parties
hereto and shall survive the execution and delivery of each Credit Document and the making of the Loan, regardless of any investigation
made by any such other party or on its behalf and notwithstanding that Lender may have had notice or knowledge of any Default or
incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect
as long as the principal of or any accrued interest on the Loan or any fee or any other amount payable under any Credit Document
is outstanding and unpaid. The provisions of Sections 2.3(a), 2.9 and 7.3 shall survive and remain in full force and effect regardless
of the consummation of the transactions contemplated hereby, the repayment of the Loan or the termination of this Agreement or
any provision hereof.

 

Section 7.6. Right of Setoff.
If any amount payable hereunder or under any other Credit Document is not paid as and when due, each Obligor hereby authorizes
Lender and each affiliate of Lender to proceed, to the extent permitted by applicable law, without prior notice, by right of setoff,
bankers’ lien, counterclaim or otherwise, against any assets of such Obligor in any currency that may at any time be in the
possession of Lender or such affiliate, at any branch or office, to the full extent of all amounts payable to Lender hereunder
or thereunder. Lender shall give prompt notice to such Obligor after any exercise of Lender’s rights under the preceding
sentence, but the failure to give such notice shall not affect the validity of any of Lender’s actions.

 

Section 7.7. Severability. Any
provision of any Credit Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate
such provision in any other jurisdiction.

 

Section 7.8. Governing Law; Jurisdiction;
Consent to Service of Process.

 

(a)          This
Agreement shall be governed by and construed in accordance with the laws of the State of New York.

 

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(b)          EACH
OBLIGOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY FEDERAL OR STATE COURT IN THE STATE OF NEW YORK IN ANY ACTION, SUIT
OR PROCEEDING BROUGHT AGAINST IT AND RELATED TO OR IN CONNECTION WITH THIS CREDIT AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED
HEREBY AND CONSENTS TO THE PLACING OF VENUE IN NEW YORK COUNTY OR OTHER COUNTY PERMITTED BY LAW. TO THE EXTENT PERMITTED BY APPLICABLE
LAW, EACH OBLIGOR HEREBY WAIVES AND AGREES NOT TO ASSERT BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE, IN ANY SUCH SUIT, ACTION
OR PROCEEDING ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURTS, THAT THE SUIT, ACTION OR PROCEEDING
IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE SUIT, ACTION OR PROCEEDING IS IMPROPER, OR THAT ANY CREDIT DOCUMENT
OR INSTRUMENT REFERRED TO HEREIN MAY NOT BE LITIGATED IN OR BY SUCH COURTS. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OBLIGOR
AGREES NOT TO SEEK AND HEREBY WAIVES THE RIGHT TO ANY REVIEW OF THE JUDGMENT OF ANY SUCH COURT BY ANY COURT OF ANY OTHER NATION
OR JURISDICTION WHICH MAY BE CALLED UPON TO GRANT AN ENFORCEMENT OF SUCH JUDGMENT. EXCEPT AS PROHIBITED BY LAW, EACH OBLIGOR HEREBY
WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN
CONNECTION WITH ANY CREDIT DOCUMENT.

 

(c)          Each
party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 7.1. Nothing in
this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

 

Section 7.9. Headings. Article
and Section headings used herein are for convenience of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this Agreement.

 

Section 7.10. Counterparts.
This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart
of a signature page of this Agreement or of any other Credit Document by facsimile or electronic transmission shall be effective
as delivery of a manually executed counterpart of this Agreement or of such other Credit Document.

 

Section 7.11. Additional Terms of
the Guaranty. It is the intention of the parties hereto that in no event shall the obligations of the Guarantor under the Guaranty
constitute or result in a violation of any applicable fraudulent conveyance, fraudulent transfer or similar law of any relevant
jurisdiction. Therefore, in the event that the Guaranty would constitute or result in such violation, then the liability of the
Guarantor thereunder shall be reduced to the maximum amount permissible under the applicable fraudulent conveyance, fraudulent
transfer or similar laws.

 

Section 7.12. No Reliance. Each
Obligor acknowledges that it is making its own independent decision to enter into the transactions under the Credit Documents and
has determined that such transactions are appropriate and proper based upon its own judgment and upon advice from such advisers
as it has deemed necessary. Each Obligor acknowledges that it is not relying on any communication (written or oral) from any Indemnitee
(as defined in Section 7.3(b)) as investment or tax advice or as a recommendation to enter into such transactions and specifically
agrees and acknowledges that any information and explanation relating to the terms and conditions of such transactions shall not
be considered investment or tax advice or a recommendation from any Indemnitee to enter into such transactions. No communication
(written or oral) from any Indemnitee regarding such transactions shall be deemed to be an assurance or guarantee as to the expected
results, benefits, outcomes or characteristics (economic, tax or otherwise) of such transactions. Each Obligor acknowledges that
it is capable of assessing the merits of and understands (on its own behalf or through independent professional advice), and accepts,
the terms, conditions and risks of such transactions and that it is also capable of assuming and assumes the risks of such transactions.
Each Obligor acknowledges that no Indemnitee is acting as a fiduciary or an adviser to such Obligor in respect of such transactions.

 

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Section 7.13. Tax Disclosure.
Notwithstanding anything herein to the contrary, each party may disclose to the U.S. Internal Revenue Service without limitation
of any kind (a) any information with respect to the U.S. federal and state income tax treatment of the transactions contemplated
hereby and any facts that may be relevant to understanding such tax treatment, which facts shall not include for this purpose the
names of the parties or any other Person named herein, or information that would permit identification of the parties or such other
Persons, or any pricing terms or other nonpublic business or financial information that is unrelated to such tax treatment or facts
and (b) all materials of any kind (including opinions or other tax analyses) relating to such tax treatment or facts that
are provided to any of the Persons referred to above.

 

Section 7.14. Assignments in Lieu.

 

(a)          Each
Obligor and Lender agree that during the continuation of an Event of Default, Lender may deliver a notice thereof to the Escrow
Agent under the Escrow Agreement and request the release of the Assignments in Lieu whereupon the Escrow Agent shall deliver the
Assignments in Lieu to Lender without any requirement to investigate the claims made in the notice and without any Obligor’s
consent.  Lender agrees not to deliver such a notice except during the continuation of an Event of Default.  Lender shall,
concurrently with delivery of any such notice to Escrow Agent, deliver a copy of any such notice to Obligors, but failure
of any such delivery to Obligors shall not in any way prejudice Lender’s right to remove and receive the Assignments in Lieu
from the Escrow Agent.  Thereafter, Lender in its sole and absolute discretion may exercise any and all rights it may have
with respect to the GRB Assets conveyed by the Assignments in Lieu, including, without limitation, recording the Assignments in
Lieu, or selling, transferring or conveying the underlying GRB Assets, or any portion thereof, and Lender is hereby granted the
full power and authority to complete each Assignment in Lieu, including, without limitation, inserting any missing information
in such instruments to effect the purposes of this Section 7.14.  The transfer of the applicable GRB Assets to Lender, or
any successor-in-interest or assignee of Lender, under the Assignments in Lieu, shall be deemed satisfaction in full of Emerald
GRB’s obligations to Lender under the Credit Documents with the same force and effect as a deed in lieu of foreclosure or
a strict foreclosure and acceptance of collateral in full satisfaction of obligations under applicable law.  The Obligations
shall be reduced (to an amount not less than $0) by an amount equal to the actual value received by Lender with respect to the
GRB assets.  Except as expressly reduced pursuant to the preceding sentence, the satisfaction of the Obligations of Emerald
GRB shall not be deemed to satisfy or affect any Obligations of any other Obligors under the Credit Documents, all such Obligations
of Obligors other than Emerald GRB shall remain in full force and effect.  Emerald GRB hereby waives any rights or claims
it may have to assert the invalidity or unenforceability of the Assignments in Lieu upon proper release to Lender from Escrow Agent. 

 

(b)          Each
Obligor hereby authorizes and does hereby make, constitute and appoint Lender and legal counsel to Lender, each with a power to
act separately, as such Obligor’s true and lawful attorney-in-fact, to complete the Assignments in Lieu or insert any missing
information in accordance with Section 7.14(a) hereof. Each Obligor hereby approves and ratifies all acts of said attorney or designee,
and hereby agrees that such attorney or designee shall not be liable for any acts of commission or omission, nor for any error
or judgment or mistake of fact or law except for its own gross negligence or willful misconduct. This power of attorney shall be
irrevocable as long as any of the Obligations shall be outstanding. Lender may exercise this power of attorney at any time during
the continuation of an Event of Default.

 

    	18

    	 

    

 

Section 7.15. Judgment Currency.
If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum owing under any Credit Document in one
currency into another currency, each party hereto agrees, to the fullest extent that it may effectively do so, that the rate of
exchange used shall be that at which, in accordance with normal banking procedures in the relevant jurisdiction, the first currency
could be purchased with such other currency on the Business Day immediately preceding the day on which final judgment is given.
The obligations of any Obligor in respect of any sum due to Lender shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than the currency in which such sum is stated to be due under any Credit Document (the “Agreement
Currency”), be discharged only to the extent that, on the Business Day following receipt by Lender of any sum adjudged
to be so due in the Judgment Currency, Lender may in accordance with normal banking procedures in the relevant jurisdiction purchase
the Agreement Currency with the Judgment Currency; if the amount of the Agreement Currency so purchased is less than the sum originally
due to Lender in the Agreement Currency, each Obligor agrees, as a separate obligation and notwithstanding any such judgment, to
indemnify Lender against such deficiency. The obligations of any Obligor contained in this Section shall survive the termination
of this Agreement and the paying of all other amounts owing under any Credit Document.

 

Section 7.16. Specific Performance.
Any breach of this Agreement may result in irreparable damage to Lender for which Lender will not have an adequate remedy at law.
Accordingly, in addition to any other remedies and damages available, Obligor acknowledges and agrees that Lender may immediately
seek enforcement of this Agreement by means of specific performance or injunction, without any requirement to post a bond or other
security.

 

Section 7.17. Pledge of Equity Interests.
Each of Borrower and Emerald GRB (each an “Issuer”) consent and agree that Emerald USA Holdings has pledged
all of its rights as a member of the Issuer, including its capital account and voting rights, to Lender as part of the Collateral.
Each Issuer and Emerald USA Holdings agrees that upon the request of Lender during any Event of Default, such Issuer shall admit
Lender or it designee as a member of the Issuer and shall allow Lender or its designee to exercise all voting rights as a member
of such Issuer and Emerald USA Holdings shall thereupon withdraw as a member of the applicable Issuer. Each Issuer agrees that
it will not issue any certificates to evidence its membership interests or elect to have its membership interests treated as a
security.

 

Remainder of page intentionally left
blank. Signature pages follow.

 

    	19

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

	 	BORROWER:
	 	 
	 	EMERALD WB LLC, a Colorado limited liability company
	 	 	 
	 	By:	Emerald Oil and Gas USA Holdings Inc.,
	 	 	its sole member

 

	 	By	/s/ Michael Krzus
	 	 	Name: Michael Krzus
	 	 	Title:   Chief Executive Officer

 

	 	GUARANTORS:
	 	 
	 	EMERALD OIL AND GAS USA HOLDINGS INC.

 

	 	By	/s/ Michael Krzus 
	 	 	Name: Michael Krzus
	 	 	Title:   Chief Executive Officer

 

	 	EMERALD GRB LLC
	 	 	 
	 	By:	Emerald Oil and Gas USA Holdings Inc.,
	 	 	its sole member

 

	 	By	/s/ Michael Krzus 
	 	 	Name: Michael Krzus
	 	 	Title:   Chief Executive Officer

 

	 	Notice Addresses for Obligors:
	 	 
	 	See Schedule I
	 	 
	 	 
	[Signature
    Page To Emerald Credit Agreement]

 

    	 

    	 

    

 

	 	LENDER:
	 	 
	 	HARTZ ENERGY CAPITAL, LLC
	 	 
	 	By:  Hartz Capital, Inc., its manager

 

	 	By	/s/ Jonathan B. Schindel
	 	Name: Jonathan B. Schindel
	 	Title:   Secretary & General Counsel

 

 

 [Signature
Page To Emerald Credit Agreement]AMENDMENT NO. 1 AND
REAFFIRMATION

  

This Amendment No. 1 and Reaffirmation (this
“Amendment”) is made as of June 7, 2012 by and among EMERALD WB LLC, EMERALD GRB LLC, EMERALD OIL INC., and
HARTZ ENERGY CAPITAL, LLC. Reference is made to that certain Credit Agreement dated as of February 21, 2012 among the aforementioned
parties (as amended, modified, restated and/or supplemented from time to time, the “Credit Agreement”). Capitalized
terms not defined herein shall have the meanings set forth in the Credit Agreement. The parties hereto hereby agree as follows:

 

Section 1.          Amendments
to Credit Agreement

 

(a)          Defined
Terms. Section 1.1 of the Credit Agreement is hereby amended such that (i) the definitions set forth below which are also
set forth in the Credit Agreement are hereby amended and restated in their entirety as set forth below, and (ii) the definitions
set forth below which are not set forth in the Credit Agreement are hereby inserted in the Credit Agreement in proper alphabetical
order.

 

“Commitment”
means $20,000,000.

 

“Credit Documents”
means this Agreement, the Guaranty, the Security Agreements, the Mortgages, Override Assignments, the GRB Override Assignment,
the Well Option Agreement, the Share Issuance Agreement, the Assignments in Lieu, the Escrow Agreement and any other documents
hereafter delivered to Lender by any Obligor evidencing, guarantying or securing the Loan or the Collateral.

 

“Final Maturity Date”
means (a) November 21, 2012, or (b) such earlier date on which the Loan shall become due and payable in accordance with the terms
of this Agreement, whether by acceleration or otherwise.

 

“First Amendment Date”
means June 7, 2012.

 

“GRB Assets” means
all assets of Emerald GRB, including oil and gas interests owned, or hereafter acquired while any Obligations remain outstanding,
in the Green River Basin within the States of Colorado and Wyoming, including, without limitation, such oil and gas interests as
are more fully described in the Colorado Mortgage and the Wyoming Mortgage, in each case, as modified, amended or supplemented
from time to time.

 

“GRB Net ORRI Acres”
means the number of acres equal to the product of the ORRI assigned to Lender pursuant to Section 2.3(a)(ii) multiplied by the
Net Mineral Acres of the GRB Assets.

 

“GRB Override Assignment”
means, collectively, any and all the assignments, in form and substance satisfactory to Lender, necessary or desirable, in Lender’s
sole discretion, to convey from Emerald GRB to Lender the ORRI set forth in Section 2.3(a)(ii).

 

    	 

    	 

    

 

 

“Loan” means each
loan made to Borrower pursuant to Section 2.1.

 

“Net ORRI Acres”
means the number of acres equal to the product of the ORRI assigned to Lender pursuant to Section 2.3(a)(i) multiplied by the Net
Mineral Acres of the Properties; as such terms are defined in the Purchase Agreement.

 

“ORRI” means an overriding
royalty interest, proportionately reduced to the interest of Borrower in the Properties or Emerald GRB in the GRB Assets, as the
case may be, in and to all of all of the oil, gas and other liquid hydrocarbons produced and saved from the Properties or the GRB
Assets, as the case may be, free of any and all expenses of development, production, transportation, marketing and any other related
or similar expenses.

 

“Participation Agreement”
means that certain Participation Agreement dated August 19, 2011 between Entek GRB, LLC and Emerald GRB LLC.

 

“Share
Issuance Agreement” means the Share Issuance Agreement, dated the First Amendment Date, executed by Emerald Oil
and Gas NL and Lender and such other parties as may be necessary or desirable and otherwise in form and substance satisfactory
to Lender.

 

“Share Issuance Date”
means the date on which Emerald Oil and Gas NL issues the Target Amount of Shares (as defined in the Share Issuance Agreement)
to Hartz, pursuant to the Share Issuance Agreement.

 

“Well
Option Agreement” means a Well Proposal Option Agreement, dated the First Amendment Date, executed by Emerald
WB LLC and Lender, in form and substance satisfactory to Lender, with respect to certain assets covered by the North Dakota Mortgage.

 

(b)          Amendments
to Section 2.1. Section 2.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Section 2.1.          Loan.
Subject to the terms and conditions and relying upon the representations and warranties herein set forth, Lender hereby agrees
to make loans to Borrower (a) on the Closing Date in a principal amount equal to $15,000,000 and (b) on any Business Day on or
after the First Amendment Date in an aggregate amount up to $5,000,000; provided, that after the First Amendment Date and
prior to the Share Issuance Date, Lender shall not be obligated to make loans to Borrower in a principal amount in excess of $1,000,000.
On or after the First Amendment Date, Loans will be made on not less than three Business Days’ prior written notice from
Borrower and in amounts of not less than $250,000 and increments of $25,000 in excess thereof. Once repaid, no portion of the Loan
may be reborrowed.”

  

    	 

    	 

    

 

(c)          Amendments
to Section 2.3.

  

(i)          Section
2.3(a) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Section 2.3.          Interest.

 

			(a)          Interest Rate. Except for Default Interest (as defined
below) or as otherwise set forth in this Agreement, there will be no cash interest on the Loan. In lieu of cash interest, Lender
shall receive (i) an ORRI in the Properties equal to 2.15% of 8/8ths, which, in accordance with the last sentence of this Section
2.3(a), shall be in no event less than 215 Net ORRI Acres, to be delivered in accordance with the Override Assignments and (ii)
an ORRI on the GRB Assets equal to 0.90% of 8/8ths, which, in accordance with the last sentence of this Section 2.3(a), shall be
in no event less than 382.5 GRB Net ORRI Acres, to be delivered in accordance with the GRB Override Assignments. In the event that
after the Obligations are repaid in full, the Net ORRI Acres or GRB Net ORRI Acres are less than as set forth in the prior sentence,
Borrower or Emerald GRB shall, at the request of the Lender, assign an additional percentage of ORRI such that the Lender shall
receive Net ORRI Acres and GRB Net ORRI Acres of no less than as set forth in the prior sentence; the obligations of the Borrower
and Emerald GRB hereunder will survive repayment in full of the Obligations and the termination of this Agreement for a period
of five (5) years.

 

(ii)         Section
2.3(b) of the Credit Agreement is hereby amended by deleting “12%” in the third line thereof and inserting “15%”
in lieu thereof.

 

(d)          Amendments
to Section 2.9. Section 2.9 of the Credit Agreement is hereby amended by deleting “3%” in the seventh line thereof
and inserting “3.5%” in lieu thereof.

 

(e)          Amendments
to Section 4.2. Section 4.2 of the Credit Agreement is hereby amended by deleting “Closing Date” in the first line
thereof and inserting “date of each Loan”.

 

(f)          Additional
Section 4.3. A new Section 4.3 of the Credit Agreement is hereby added as follows:

 

“Section 4.3.          Additional
Conditions to Loans after First Amendment Date. On the date of each Loan made on or after the First Amendment Date, Borrower
shall provide Lender evidence satisfactory to the Lender in the form of authorizations for expenses or invoices from Entek that
the proceeds of such Loan shall be used for the purposes set forth in Section 5.6(c).”

 

(g)          Amendments
to Sections 5.1(b) and 5.1(c). Sections 5.1(b) and 5.1(c) of the Credit Agreement are hereby amended by: (a) inserting the
phrase “and the GRB Assets” after each occurrence of the word “Properties” therein and (b) deleting the
word “and” at the end of Section 5.1(b) and inserting the word “and” at the end of Section 5.1(c).

 

    	 

    	 

    

  

(h)          Additional
Section 5.1(d). A new Section 5.1(d) of the Credit Agreement is hereby added as follows:

 

“(d) a certificate
to be delivered no later than the fifth (5th) calendar day of each month, executed by an authorized representative of
Emerald GRB certifying that, as of such date, all Entek Project Requests (as defined in Section 5.6 hereof) for which Emerald GRB
has not exercised a non-consent right under the Participation Agreement have been timely paid or are not yet due and payable.”

 

(i)          Amendments
to Section 5.6. Section 5.6 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Section 5.6           Use
of Proceeds. The proceeds of the Loan shall be used by Borrower as follows (a) not less than $11,850,000 of the initial Loan
proceeds shall be used to purchase the Properties pursuant to the Purchase Agreement, (b) the balance shall be used solely for
expenses directly related to Mortgagors’ assets and expenses incurred under the Participation Agreement (which expenses,
for the avoidance of doubt, shall not include general administrative or overhead expenses), and (c) to pay authorizations for expenses
(“AFEs”) or invoices for acreage acquisition costs pursuant to the AMI (as defined in the Participation Agreement)
and development costs, including the monthly Entek invoices under the Participation Agreement for the development of the GRB Assets
(such AFEs and invoices are, collectively, the “Entek Project Requests”). Promptly after each Loan made on or
after the First Amendment Date, Borrower shall provide Lender evidence of payment to the Operator or Entek for AFEs or invoices
provided in accordance with Section 4.3. No part of the proceeds of any Loan will be used directly or indirectly for the purpose
of purchasing or carrying margin stock within the meaning of Regulations T, U, or X of the Federal Reserve Board.”

 

(j)          Amendments
to Section 5.8(a). Section 5.8(a) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Section 5.8           Fundamental
Changes. (a) No Obligor shall merge or consolidate with any other Person, or permit any other Person to merge or consolidate
with it, other than (i) another Obligor, or (ii) Voyager Oil & Gas, Inc. (“VOG”) or an affiliate of VOG, provided,
that, in the case of VOG or any affiliate of VOG, such merger or consolidation is publicly announced prior to July 16, 2012, as
such date may be extended under the Share Issuance Agreement.”

 

(k)          Additional
Section 5.17. A new Section 5.17 of the Credit Agreement is hereby added as follows:

 

    	 

    	 

    

 

“Section 5.17         Entek
Project Requests Covenant. Each of Borrower and the Obligors hereby agrees that it shall (A) consent to, or cause Emerald GRB
to consent to, any and all commercially reasonable Entek Project Requests that either are (i) included in the Activity Plan and
Budget for the applicable Operating Year (as such terms are defined in the Participation Agreement) or (ii) proposed by Entek as
a replacement for any project included in the Activity Plan and Budget for the applicable Operating Year, and (B) pay, or cause
Emerald GRB to pay, any and all obligations arising with respect to such Entek Project Requests on a timely basis. In the event
any Obligor considers an Entek Project Request to be not commercially reasonable or otherwise desires not to consent thereto, such
Obligor shall consult with Lender regarding such Entek Project Request, and Lender shall determine in good faith and taking into
account the Lender’s own interests, whether to waive the foregoing covenant.”

 

(l)          Additional
Section 5.18. A new Section 5.18 of the Credit Agreement is hereby added as follows:

 

“Section 5.18 Additional
Acquired Acreage. Upon the consummation of each new acquisition of GRB Assets by an Obligor, such Obligor shall promptly provide
amendments to each applicable Mortgage adding and pledging such newly acquired GRB Assets to and under the applicable Mortgage
as security for the benefit of Lender and, in each case, such amendments shall be in form and substance satisfactory to Lender.”

 

(m)          Amendment
to Section 6.1(d). Section 6.1(d) of the Credit Agreement is hereby amended by deleting the reference to “5.16”
contained therein and replacing it with “5.18”.

 

(n)          Additional
Section 6.1(m). A new Section 6.1(m) of the Credit Agreement is hereby added as follows:

 

“(n)          any
default or breach by Emerald Oil and Gas NL under the Share Issuance Agreement.”

 

(o)          Amendments
to Section 7.5.  The last sentence of Section 7.5 of the Credit Agreement is hereby amended and restated in its entirety
as follows:  

 

“The provisions of Sections
2.3(a), 2.9, 7.3 and 7.16 shall survive and remain in full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Obligations or the termination of this Agreement or any provision hereof.”

 

(p)          Amendment
to Schedule I.   Schedule
I to the Credit Agreement is hereby amended and restated in its entirety and replaced with Schedule I attached hereto.

 

Section 2.          Reaffirmation

 

(a)          General.
Each Obligor hereby ratifies, confirms and reaffirms in all respects all of its Obligations to the Lender as evidenced by the Credit
Documents and all of its Obligations to the Lender arising under any other instrument or agreement creating, evidencing, or securing
any of its obligations to the Lender.

 

    	 

    	 

    

 

 

(b)          Reaffirmation
of the Security Documents. Without limiting any obligations of any Obligor under the Security Agreements or any other Credit
Documents, Borrower hereby reaffirms its grant of a security interest in the Collateral under the Security Agreements to secure
all Obligations (as defined in the Security Agreements after giving effect to the amendments herein). Without limiting any obligations
of any Obligor under the Mortgages or any other Credit Documents, each Obligor hereby reaffirms its Obligations under the Mortgages
as amended modified.

 

(c)          Representations
and Warranties. Each Obligor hereby represents and warrants to the Lender that, after giving effect to this Amendment, (i) the
representations and warranties set forth in the Credit Documents are true and correct in all material respects on and as of the
date hereof, except to the extent such representations and warranties expressly relate to an earlier date, and (ii) no Default
or Event of Default has occurred and is continuing. Each Obligor hereby further represents and warrants to Lender that, as of the
First Amendment Date, the net mineral acres of the GRB Assets, including any and all new acquisitions that have been identified
in an Entek Project Request received by Obligors, equals at least 42,500 net mineral acres.

 

Section 3.          Conditions

 

This Amendment shall become effective
as of the First Amendment Date when and only when, each of the following conditions precedent shall have been satisfied or waived
by the Lender:

 

(a)          Certain
Documents.     The Lender shall have received the following documents, each
in form and substance satisfactory to the Lender, which satisfaction shall be evidenced by execution and delivery by the Lender
of this Amendment, and dated the First Amendment Date (when applicable):

 

(i)          a
counterpart of this Amendment executed by each Obligor; 

 

(ii)         a
First Amendment to each of the Mortgages executed by the respective Obligor;

 

(iii)        the
GRB Override Assignment executed by Emerald GRB;

 

(iv)        the
Well Option Agreement executed by Emerald WB LLC;

 

(v)         payment
of the fees and expenses referred to in Section 3(c); and

 

(vi)        the
Share Issuance Agreement executed by Emerald Oil and Gas NL.

 

(b)          Additional
Documents. The Lender shall have received such documents, certificates and legal opinions regarding each Obligor as to the
execution and delivery of the Credit Documents, as requested by the Lender and all in form and substance satisfactory to the Lender
and its counsel.

 

    	 

    	 

    

 

 

(c)          Fees
and Expenses Paid. The Borrower shall have paid all Obligations due, after giving effect to this Amendment, on or before the
later of the date hereof and the First Amendment Date including, without limitation, all costs and expenses of the Lender in connection
with the preparation, reproduction, execution and delivery of this Amendment and all other Credit Documents entered into in connection
herewith (including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Lender with respect
thereto and all other Credit Documents) and all other costs, expenses and fees due under any Credit Document; provided,
that in connection with the transactions on the First Amendment Date, the Borrower shall pay $40,000 towards such costs and expenses
(which the Lender may deduct from the proceeds of the Loans made on or after the First Amendment Date).

 

Section 4.          Miscellaneous

 

(a)          Incorporation
and Effect. The terms and provisions of this Amendment are incorporated in and made a part of the Credit Agreement in all respects.
In the event of any conflict between the terms of this Amendment and the terms of the Credit Agreement, the terms of this Amendment
shall control to the extent of such conflict.

 

(b)          No
Waiver. Except as otherwise provided herein, this Amendment shall not (a) constitute a modification, acceptance or waiver with
respect to any other term, provision or condition of the Credit Agreement or any other Credit Document or (b) prejudice any
right or remedy that the Lender may now have or may have in the future under or in connection with the Credit Agreement or any
other Credit Document. All other obligations of the Obligors and rights of the Lender under any Credit Document shall remain in
full force and effect.

 

(c)          Credit
Document. This Amendment is a Credit Document.

 

(d)          Successors
and Assigns. The provisions of this Amendment shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, except that no Obligor may assign or otherwise transfer any of its rights or Obligations hereunder
and any attempted assignment or transfer by any Obligor shall be null and void.

 

(e)          Governing
Law. This Amendment and any claim, controversy or dispute related to or in connection with this Amendment, any Credit Document
or any of the transactions contemplated hereby or thereby, the relationship of the parties hereto and the interpretation and enforcement
of the rights and duties of the parties hereto shall be governed by and construed in accordance with the laws of the State of New
York.

 

(f)          Counterparts.
This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart
of a signature page of this Amendment or of any other Credit Document by facsimile or electronic transmission shall be effective
as delivery of a manually executed counterpart of this Amendment or of such other Credit Document.

 

Remainder of page intentionally left
blank. 

Signature pages follow.

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be duly executed by their respective authorized officers as of the First Amendment Date.

 

		EMERALD WB LLC,
	 	  as Borrower
	 	 
	 	By: 	Emerald Oil Inc.,
	 	 	its sole member

 

	 	By:	/s/ McAndrew Rudisill 
	 	 	McAndrew Rudisill
	 	 	President

 

	 	HARTZ ENERGY CAPITAL, LLC,
	 	  as Lender
	 	 
	 	By:	Hartz Capital, Inc., its Manager

 

 

	 	By:	/s/ Jonathan B. Schindel
	 	 	Jonathan B. Schindel
	 	 	Secretary & General Counsel

 

[signature
page to amendment no.1 and reaffirmation]

 

    	 

    	 

    

 

Guarantors:

 

	 	EMERALD GRB LLC,
	 	   as Guarantor
	 	 	 
	 	By: 	Emerald Oil Inc.,
	 	 	its sole member

  

	 	By:	/s/ McAndrew Rudisill
	 	 	Name:  McAndrew Rudisill
	 	 	Title:  President

 

	 	EMERALD OIL INC.,
	 	   as Guarantor

 

	 	By:	/s/ McAndrew Rudisill 
	 	 	Name:  McAndrew Rudisill
	 	 	Title:  President

 

 

[signature
page to amendment no.1 and reaffirmation]

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