Document:

Exhibit
        4.1

      

      THIS
        WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
        NOT
        BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
        ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
        DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE
        STATE SECURITIES LAWS OR WITS BASIN PRECIOUS MINERALS INC. SHALL HAVE RECEIVED
        AN OPINION OF COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES
        ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
        REQUIRED.

      

      WARRANT
        TO PURCHASE

      

      SHARES
        OF
        COMMON STOCK

      

      OF

      

      WITS
        BASIN PRECIOUS MINERALS INC.

      

      Expires
        February 11, 2013

      

      
        	
                No.:
                  W-A -___

              	
                Number
                  of Shares: 2,500,000

              
	
                Date
                  of Issuance: February 11, 2008

              	 

      

       

      FOR
        VALUE
        RECEIVED, subject to the provisions hereinafter set forth, the undersigned,
        Wits
        Basin Precious Minerals Inc., a Minnesota corporation (together with its
        successors and assigns, the “Issuer”),
        hereby certifies that Platinum Long Term Growth V, LLC, a Delaware limited
        liability company, or its registered assigns is entitled to subscribe for
        and
        purchase, during the period specified in this Warrant, up to Two Million
        Five
        Hundred Thousand (2,500,000) shares (subject to adjustment as hereinafter
        provided) of the duly authorized, validly issued, fully paid and non-assessable
        Common Stock of the Issuer, at an exercise price per share equal to the Warrant
        Price then in effect, subject, however, to the provisions and upon the terms
        and
        conditions hereinafter set forth. Capitalized terms used in this Warrant
        and not
        otherwise defined herein shall have the respective meanings specified in
        Section
        9 hereof.

      

      1. Term.
        The
        right to subscribe for and purchase shares of Warrant Stock represented hereby
        shall commence on February 11, 2008 and shall expire at 5:00 p.m., eastern
        time,
        on February 11, 2013 (such period being the “Term”).

      

      2. Method
        of Exercise Payment; Issuance of New Warrant; Transfer and
        Exchange.

      

      (a) Time
        of Exercise.
        The
        purchase rights represented by this Warrant may be exercised in whole or
        in part
        at any time and from time to time during the Term commencing on February
        11,
        2008. 

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (b) Method
        of Exercise.
        The
        Holder hereof may exercise this Warrant, in whole or in part, by the surrender
        of this Warrant (with the exercise form attached hereto duly executed) at
        the
        principal office of the Issuer, and by the payment to the Issuer of an amount
        of
        consideration therefor equal to the Warrant Price in effect on the date of
        such
        exercise multiplied by the number of shares of Warrant Stock with respect
        to
        which this Warrant is then being exercised, payable at such Holder’s election
        (i) by certified or official bank check or by
        wire
        transfer to an account designated by the Issuer,
        (ii) by
“cashless exercise” in accordance with the provisions of subsection (c) of this
        Section 2, but only when a registration statement under the Securities Act
        providing for resale of all of the Warrant Stock is not then in effect, or
        (iii)
        by a combination of the foregoing methods of payment selected by the Holder
        of
        this Warrant.

      

      (c) Cashless
        Exercise.
        Notwithstanding any provisions herein to the contrary, at any time after
        August
        11, 2008, unless a registration statement under the Securities Act registering
        the resale of all of the shares of Warrant Stock underlying this Warrant
        is then
        effective, the Holder may exercise this Warrant by a cashless exercise and
        shall
        receive the number of shares of Common Stock equal to an amount (as determined
        below) by surrender of this Warrant at the principal office of the Issuer
        together with the properly endorsed Notice of Exercise in which event the
        Issuer
        shall issue to the Holder a number of shares of Common Stock computed using
        the
        following formula:

      

      
        	 	
                X
                  =

              	
                Y
                  -
                  (A)(Y)

              
	
                 

              	 	
                         
                  B

              
	 	 	 
	
                Where

              	
                X
                  =

              	
                the
                  number of shares of Common Stock to be issued to the
                  Holder.

              
	 	 	 
	 	
                Y
                  =

              	
                the
                  number of shares of Common Stock purchasable upon exercise of all
                  of the
                  Warrant or, if only a portion of the Warrant is being exercised,
                  the
                  portion of the Warrant being exercised.

              
	 	 	 
	 	
                A
                  =

              	
                the
                  Warrant Price.

              
	 	 	 
	 	
                B
                  =

              	
                the
                  Per Share Market Value of one share of Common
                  Stock.

              

      

      

      (d) Issuance
        of Stock Certificates.
        In the
        event of any exercise of the rights represented by this Warrant in accordance
        with and subject to the terms and conditions hereof, (i) certificates for
        the
        shares of Warrant Stock so purchased shall be dated the date of such exercise
        and delivered to the Holder hereof within a reasonable time, not exceeding
        three
        (3) Trading Days after such exercise (the “Delivery
        Date”)
        or, at
        the request of the Holder, issued and delivered to the Depository Trust Company
        (“DTC”)
        account on the Holder’s behalf via the Deposit Withdrawal Agent Commission
        System (“DWAC”)
        within
        a reasonable time, not exceeding three (3) Trading Days after such exercise,
        and
        the Holder hereof shall be deemed for all purposes to be the Holder of the
        shares of Warrant Stock so purchased as of the date of such exercise and
        (ii)
        unless this Warrant has expired, a new Warrant representing the number of
        shares
        of Warrant Stock, if any, with respect to which this Warrant shall not then
        have
        been exercised (less any amount thereof which shall have been canceled in
        payment or partial payment of the Warrant Price as hereinabove provided)
        shall
        also be issued to the Holder hereof at the Issuer’s expense within such
        time.

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      (e) Transferability
        of Warrant.
        Subject
        to Section 2(g), this Warrant may be transferred by a Holder without the
        consent
        of the Issuer. If transferred pursuant to this paragraph, this Warrant may
        be
        transferred on the books of the Issuer by the Holder hereof in person or
        by the
        Holder’s duly authorized attorney, upon surrender of this Warrant at the
        principal office of the Issuer, properly endorsed (by the Holder executing
        an
        assignment in the form attached hereto) and upon payment of any necessary
        transfer tax or other governmental charge imposed upon such transfer. This
        Warrant is exchangeable at the principal office of the Issuer for Warrants
        for
        the purchase of the same aggregate number of shares of Warrant Stock, each
        new
        Warrant to represent the right to purchase such number of shares of Warrant
        Stock as the Holder hereof shall designate at the time of such exchange.
        All
        Warrants issued on transfers or exchanges shall be dated the Original Issue
        Date
        and shall be identical with this Warrant except as to the number of shares
        of
        Warrant Stock issuable pursuant thereto.

      

      (f) Continuing
        Rights of Holder.
        The
        Issuer will, at the time of or at any time after each exercise of this Warrant,
        upon the request of the Holder hereof, acknowledge in writing the extent,
        if
        any, of its continuing obligation to afford to such Holder all rights to
        which
        such Holder shall continue to be entitled after such exercise in accordance
        with
        the terms of this Warrant, provided
        that if
        any such Holder shall fail to make any such request, the failure shall not
        affect the continuing obligation of the Issuer to afford such rights to such
        Holder.

      

      (g) Compliance
        with Securities Laws.

      

      (i) The
        Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant
        and
        the shares of Warrant Stock to be issued upon exercise hereof are being acquired
        solely for the Holder’s own account and not as a nominee for any other party,
        and for investment, and that the Holder will not offer, sell or otherwise
        dispose of this Warrant or any shares of Warrant Stock to be issued upon
        exercise hereof except pursuant to an effective registration statement, or
        an
        exemption from registration, under the Securities Act and any applicable
        state
        securities laws.

      

      (ii) Except
        as
        provided in paragraph (iii) below, this Warrant and all certificates
        representing shares of Warrant Stock issued upon exercise hereof shall be
        stamped or imprinted with a legend in substantially the following
        form:

      

      THIS
        WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE
        NOT
        BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
        ACT”) OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
        DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE
        STATE SECURITIES LAWS OR WITS BASIN PRECIOUS MINERALS INC. SHALL HAVE RECEIVED
        AN OPINION OF COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES
        ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
        REQUIRED.

      

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      (iii) The
        restrictions imposed by this subsection (g) upon the transfer of this Warrant
        or
        the shares of Warrant Stock to be purchased upon exercise hereof shall terminate
        (A) when such securities shall have been resold pursuant to an effective
        registration statement under the Securities Act, (B) upon the Issuer’s receipt
        of an opinion of counsel, in form and substance reasonably satisfactory to
        the
        Issuer, addressed to the Issuer to the effect that such restrictions are
        no
        longer required to ensure compliance with the Securities Act and state
        securities laws or (C) upon the Issuer’s receipt of other evidence reasonably
        satisfactory to the Issuer that such registration and qualification under
        the
        Securities Act and state securities laws are not required. Whenever such
        restrictions shall cease and terminate as to any such securities, the Holder
        thereof shall be entitled to receive from the Issuer (or its transfer agent
        and
        registrar), without expense (other than applicable transfer taxes, if any),
        new
        Warrants (or, in the case of shares of Warrant Stock, new stock certificates)
        of
        like tenor not bearing the applicable legend required by paragraph (ii) above
        relating to the Securities Act and state securities laws.

      

      (h) Buy
        In.

      

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

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      3. Stock
        Fully Paid; Reservation and Listing of Shares; Covenants.

      

      (a) Stock
        Fully Paid.
        The
        Issuer represents, warrants, covenants and agrees that all shares of Warrant
        Stock which may be issued upon the exercise of this Warrant or otherwise
        hereunder will, upon issuance, be duly authorized, validly issued, fully
        paid
        and non-assessable and free from all taxes, liens and charges created by
        or
        through Issuer. The Issuer further covenants and agrees that, the Issuer
        has
        authorized and reserved for the purposes of the issue upon exercise of this
        Warrant a number of shares of Common Stock equal to at least 120% of the
        aggregate number of shares of Common Stock exercisable hereunder to provide
        for
        the exercise of this Warrant (without regard to the limitations on
        exercisability set forth in Section 8), and that the Issuer will, within
        thirty
        (30) days of the Date of Issuance of this Warrant and for the remainder of
        the
        period within which this Warrant may be exercised, at all times have authorized
        and reserved for the purpose of the issue upon exercise of this Warrant a
        number
        of shares of Common Stock equal to at least 150% of the aggregate number
        of
        shares of Common Stock exercisable hereunder to provide for the exercise
        of this
        Warrant (without regard to limitations on exercisability set forth in Section
        8).

      

      (b) Reservation.
        If any
        shares of Common Stock required to be reserved for issuance upon exercise
        of
        this Warrant or as otherwise provided hereunder require registration or
        qualification with any governmental authority under any federal or state
        law
        before such shares may be so issued, the Issuer will in good faith use its
        best
        efforts as expeditiously as possible at its expense to cause such shares
        to be
        duly registered or qualified. If the Issuer shall list any shares of Common
        Stock on any securities exchange or market it will, at its expense, list
        thereon, maintain and increase when necessary such listing, of, all shares
        of
        Warrant Stock from time to time issued upon exercise of this Warrant or as
        otherwise provided hereunder, and, to the extent permissible under the
        applicable securities exchange’s rules, all unissued shares of Warrant Stock
        which are at any time issuable hereunder, so long as any shares of Common
        Stock
        shall be so listed. The Issuer will also so list on each securities exchange
        or
        market, and will maintain such listing of, any other securities which the
        Holder
        of this Warrant shall be entitled to receive upon the exercise of this Warrant
        if at the time any securities of the same class shall be listed on such
        securities exchange or market by the Issuer.

      

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

      

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      (d) Loss,
        Theft, Destruction of Warrants.
        Upon
        receipt of evidence satisfactory to the Issuer of the ownership of and the
        loss,
        theft, destruction or mutilation of any Warrant and, in the case of any such
        loss, theft or destruction, upon receipt of indemnity or security satisfactory
        to the Issuer or, in the case of any such mutilation, upon surrender and
        cancellation of such Warrant, the Issuer will make and deliver, in lieu of
        such
        lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor
        and
        representing the right to purchase the same number of shares of Common
        Stock.

      

      4. Adjustment
        of Warrant Price and Warrant Share Number.
        The
        number of shares of Common Stock for which this Warrant is exercisable, and
        the
        price at which such shares may be purchased upon exercise of this Warrant,
        shall
        be subject to adjustment from time to time as set forth in this Section 4.
        The
        Issuer shall give the Holder notice of any event described below which requires
        an adjustment pursuant to this Section 4 in accordance with Section 5.

      

      (a) Recapitalization,
        Reorganization, Reclassification, Consolidation, Merger or Sale.

      

      (i) In
        case
        the Issuer after the Original Issue Date shall do any of the following (each,
        a
“Triggering
        Event”):
        (a)
        consolidate with or merge into any other Person and the Issuer shall not
        be the
        continuing or surviving corporation of such consolidation or merger, or (b)
        permit any other Person to consolidate with or merge into the Issuer and
        the
        Issuer shall be the continuing or surviving Person but, in connection with
        such
        consolidation or merger, any Capital Stock of the Issuer shall be changed
        into
        or exchanged for Securities of any other Person or cash or any other property,
        or (c) transfer all or substantially all of its properties or assets to any
        other Person, or (d) effect a capital reorganization or reclassification
        of its
        Capital Stock, then, and in the case of each such Triggering Event, proper
        provision shall be made so that, upon the basis and the terms and in the
        manner
        provided in this Warrant, the Holder of this Warrant shall be entitled upon
        the
        exercise hereof at any time after the consummation of such Triggering Event,
        to
        the extent this Warrant is not exercised prior to such Triggering Event,
        to
        receive at the Warrant Price in effect at the time immediately prior to the
        consummation of such Triggering Event in lieu of the Common Stock issuable
        upon
        such exercise of this Warrant prior to such Triggering Event, the Securities,
        cash and property to which such Holder would have been entitled upon the
        consummation of such Triggering Event if such Holder had exercised the rights
        represented by this Warrant (without giving effect to the limitations on
        exercise set forth in Section 8 hereof) immediately prior thereto (including
        the
        right to elect the type of consideration, if applicable), subject to adjustments
        (subsequent to such corporate action) as nearly equivalent as possible to
        the
        adjustments provided for elsewhere in this Section 4. Unless the surviving
        entity in any such Triggering Event is a public company under the Securities
        Exchange Act of 1934, the common equity securities of which are traded or
        quoted
        on a national securities exchange or the OTC Bulletin Board (a “Qualifying
        Entity”),
        the
        Holder, at its option, shall be permitted to require that the Company pay
        to the
        Holder an amount equal to the Black-Scholes value of this Warrant.

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      (ii) Notwithstanding
        anything contained in this Warrant to the contrary and so long as the surviving
        entity is a Qualifying Entity, the Issuer will not be deemed to have effected
        any Triggering Event if, prior to the consummation thereof, each Person (other
        than the Issuer) which may be required to deliver any Securities, cash or
        property upon the exercise of this Warrant as provided herein shall assume,
        by
        written instrument delivered to the Holder of this Warrant and reasonably
        satisfactory to the Holder, (A) the obligations of the Issuer under this
        Warrant
        (and if the Issuer shall survive the consummation of such Triggering Event,
        such
        assumption shall be in addition to, and shall not release the Issuer from,
        any
        continuing obligations of the Issuer under this Warrant) and (B) the obligation
        to deliver to such Holder such shares of Securities, cash or property as,
        in
        accordance with the foregoing provisions of this subsection (a), such Holder
        shall be entitled to receive, and such Person shall have similarly delivered
        to
        such Holder, an opinion of counsel for such Person, which shall be reasonably
        satisfactory to the Holder, stating that this Warrant shall thereafter continue
        in full force and effect and the terms hereof (including, without limitation,
        all of the provisions of this subsection (a)) shall be applicable to the
        Securities, cash or property which such Person may be required to deliver
        upon
        any exercise of this Warrant or the exercise of any rights pursuant hereto.
        

      

      (b) Stock
        Dividends, Subdivisions and Combinations.
        If at
        any time the Issuer shall:

      

      (i) set
        a
        record date or take a record of the holders of its Common Stock for the purpose
        of entitling them to receive a dividend payable in, or other distribution
        of,
        shares of Common Stock, 

      

      (ii) subdivide
        its outstanding shares of Common Stock into a larger number of shares of
        Common
        Stock, or

      

      (iii) combine
        its outstanding shares of Common Stock into a smaller number of shares of
        Common
        Stock,

      

      then
        (1)
        the number of shares of Common Stock for which this Warrant is exercisable
        immediately after the occurrence of any such event shall be adjusted to equal
        the number of shares of Common Stock which a record holder of the same number
        of
        shares of Common Stock for which this Warrant is exercisable immediately
        prior
        to the occurrence of such event (without giving effect to the limitations
        on
        exercise set forth in Section 8 hereof) would own or be entitled to receive
        after the happening of such event, and (2) the Warrant Price then in effect
        shall be adjusted to equal (A) the Warrant Price then in effect multiplied
        by
        the number of shares of Common Stock for which this Warrant is exercisable
        immediately prior to the adjustment (without giving effect to the limitations
        on
        exercise set forth in Section 8 hereof) divided by (B) the number of shares
        of
        Common Stock for which this Warrant is exercisable immediately after such
        adjustment (without giving effect to the limitations on exercise set forth
        in
        Section 8 hereof). Notwithstanding the foregoing, a Subsidiary Dividend (as
        defined in the Purchase Agreement) shall not constitute a dividend or
        distribution under this Section 4(b) or Sections 4(c), 4(e) or 4(f)
        below.

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      (c) Certain
        Other Distributions.
        Subject
        to the last sentence of Section 4(b) above, if at any time the Issuer shall
        set
        a record date or take a record of the holders of its Common Stock for the
        purpose of entitling them to receive any divi-dend or other distribution
        of:

      

      (i) cash
        (other than a cash dividend payable out of earnings or earned surplus legally
        available for the payment of dividends under the laws of the jurisdiction
        of
        incorporation of the Issuer),

      

      (ii) any
        evidences of its indebtedness, any shares of stock of any class or any other
        securities or property of any nature whatsoever (other than cash, Common
        Stock
        Equivalents, Additional Shares of Common Stock or Permitted Issuances),
        or

      

      (iii) any
        warrants or other rights to subscribe for or purchase any evidences of its
        indebtedness, any shares of stock of any class or any other securities or
        property of any nature whatsoever (other than cash, Common Stock Equivalents,
        Additional Shares of Common Stock or Permitted Issuances),

      

      then
        (1)
        the number of shares of Common Stock for which this Warrant is exercisable
        shall
        be adjusted to equal the product of the number of shares of Common Stock
        for
        which this Warrant is exercisable immediately prior to such adjustment (without
        giving effect to the limitations on exercise set forth in Section 8 hereof)
        multiplied by a fraction (A) the numerator of which shall be the Per Share
        Market Value of Common Stock at the date of taking such record and (B) the
        denominator of which shall be such Per Share Market Value minus the amount
        allocable to one share of Common Stock of any such cash so distributable
        and of
        the fair value (as determined in good faith by the Board of Directors of
        the
        Issuer and supported by an opinion from an investment banking firm reasonably
        acceptable to the Holder) of any and all such evidences of indebtedness,
        shares
        of stock, other securities or property or warrants or other subscription
        or
        purchase rights so distributable, and (2) the Warrant Price then in effect
        shall
        be adjusted to equal (A) the Warrant Price then in effect multiplied by the
        number of shares of Common Stock for which this Warrant is exercisable
        immediately prior to the adjustment (without giving effect to the limitations
        on
        exercise set forth in Section 8 hereof) divided by (B) the number of shares
        of
        Common Stock for which this Warrant is exercisable immediately after such
        adjustment (without giving effect to the limitations on exercise set forth
        in
        Section 8 hereof). A reclassification of the Common Stock (other than a change
        in par value, or from par value to no par value or from no par value to par
        value) into shares of Common Stock and shares of any other class of stock
        shall
        be deemed a distribution by the Issuer to the holders of its Common Stock
        of
        such shares of such other class of stock within the meaning of this Section
        4(c)
        and, if the outstanding shares of Common Stock shall be changed into a larger
        or
        smaller number of shares of Common Stock as a part of such reclassification,
        such change shall be deemed a subdivision or combination, as the case may
        be, of
        the outstanding shares of Common Stock within the meaning of Section
        4(b).

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      (d) Issuance
        of Additional Shares of Common Stock.
        

      

      (i) In
        the
        event the Issuer shall at any time following the Original Issue Date issue
        any
        Additional Shares of Common Stock (otherwise than as provided in the foregoing
        subsections (a) through (c) of this Section 4), at a price per share less
        than
        the Warrant Price then in effect or without consideration, then the Warrant
        Price upon each such issuance shall be adjusted to the price (rounded to
        the
        nearest cent) determined by multiplying the Warrant Price by a
        fraction:

       

      (A) the
        numerator of which shall be equal to the sum of (x) the number of shares
        of
        Common Stock outstanding immediately prior to the issuance of such Additional
        Shares of Common Stock plus
        (y) the
        number of shares of Common Stock (rounded to the nearest whole share) which
        the
        aggregate consideration for the total number of such Additional Shares of
        Common
        Stock so issued would purchase at a price per share equal to the Warrant
        Price
        then in effect, and

       

      (B) the
        denominator of which shall be equal to the number of shares of Common Stock
        outstanding immediately after the issuance of such Additional Shares of Common
        Stock.

      

      (ii) No
        adjustment of the Warrant Price shall be made under paragraph (i) of
        Section 4(d) upon the issuance of any Additional Shares of Common Stock
        which are issued pursuant to the exercise or conversion of any Common Stock
        Equivalents if any such adjustment shall previously have been made upon the
        issuance of such Common Stock Equivalents, or upon the issuance of any warrant
        or other rights therefor pursuant to Sections 4(e) or 4(f), or in connection
        with any Permitted Issuances. 

      

      (e) Issuance
        of Warrants or Other Rights.
        Subject
        to the last sentence of Section 4(b) above, if at any time the Issuer shall
        take
        a record of the Holders of its Common Stock for the purpose of entitling
        them to
        receive a distribution of, or shall in any manner (whether directly or by
        assumption in a merger in which the Issuer is the surviving corporation)
        issue
        or sell any warrants
        or options,
        whether
        or not immediately exercisable, and the Warrant Consideration (hereafter
        defined) per share for which Common Stock is issuable upon the exercise of
        such
        warrant or option shall be less than the Warrant Price in effect immediately
        prior to the time of such issue or sale, then the Warrant Price then in effect
        immediately prior to the time of such issue or sale shall be adjusted to
        the
        price (rounded to the nearest cent) determined by multiplying the Warrant
        Price
        by a fraction: (1) the numerator of which shall be equal to the sum of (A)
        the
        number of shares of Common Stock outstanding immediately prior to the issuance
        or sale of such warrants or options plus
        (B) the
        number of shares of Common Stock (rounded to the nearest whole share) that
        the
        Warrant Consideration multiplied by the number of shares of Common Stock
        issuable upon the exercise or conversion of all such warrants or options,
        would
        purchase at a price per share equal to the Warrant Price then in effect,
        and (2)
        the denominator of which shall be equal to the number of shares of Common
        Stock
        that would be outstanding assuming the exercise or conversion of all such
        warrants and options. No adjustments of the Warrant Price then in effect
        shall
        be made upon the actual issue of such Common Stock or of such Common Stock
        Equivalents upon exercise of such warrants or other rights or upon the actual
        issue of such Common Stock upon such conversion or exchange of such Common
        Stock
        Equivalents if adjustment has been previously made pursuant to this section.
        No
        adjustments of the Warrant Price shall be made under this Section 4(e) in
        connection with any Permitted Issuances.

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      (f) Issuance
        of Common Stock Equivalents.
        Subject
        to the last sentence of Section 4(b) above, if at any time prior the Issuer
        shall take a record of the Holders of its Common Stock for the purpose of
        entitling them to receive a distribution of, or shall in any manner (whether
        directly or by assumption in a merger in which the Issuer is the surviving
        corporation) issue or sell, any Common Stock Equivalents, whether or not
        the
        rights to exchange or convert thereunder are immediately exercisable, and
        the
        Common Stock Equivalent Consideration (hereafter defined) per share for which
        Common Stock is issuable upon such conversion or exchange shall be less than
        the
        Warrant Price in effect immediately prior to the time of such issue or sale,
        or
        if, after any such issuance of Common Stock Equivalents, the price per share
        for
        which Additional Shares of Common Stock may be issuable thereafter is amended
        or
        adjusted, and such price as so amended shall be less than the applicable
        Conversion Price in effect at the time of such amendment or adjustment, then
        the
        Warrant Price then in effect immediately prior to the time of such issue
        or
        sale, shall upon each such issuance or sale be adjusted to that price (rounded
        to the nearest cent) determined by multiplying the Warrant Price by a fraction:
        (1) the numerator of which shall be equal to the sum of (A) the number of
        shares
        of Common Stock outstanding immediately prior to the issuance or sale of
        such
        Common Stock Equivalents plus
        (B) the
        number of shares of Common Stock (rounded to the nearest whole share) that
        the
        Common Stock Equivalent Consideration multiplied by the number of shares
        of
        Common Stock issuable upon the exercise or conversion of all such Common
        Stock
        Equivalents, would purchase at a price per share equal to the Warrant Price
        then
        in effect, and (2) the denominator of which shall be equal to the number
        of
        shares of Common Stock that would be outstanding assuming the exercise or
        conversion of all such Common Stock Equivalents. No further adjustment of
        the
        Warrant Price then in effect shall be made under this Section 4(f) upon the
        issuance of any Common Stock Equivalents which are issued pursuant to the
        exercise of any warrants or other subscription or purchase rights therefor,
        if
        any such adjustment shall previously have been made upon the issuance of
        such
        warrants or other rights pursuant to Section 4(e). No further adjustments
        of the
        Warrant Price then in effect shall be made upon the actual issue of such
        Common
        Stock upon conversion or exchange of such Common Stock Equivalents if adjustment
        shall have previously been made pursuant to this section. No adjustments
        of the
        Warrant Price shall be made under this Section 4(f) in connection with any
        Permitted Issuances.

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      (g) Superseding
        Adjustment.
        If, at
        any time after any adjustment of the Warrant Price then in effect shall have
        been made pursuant to Section 4(e) or Section 4(f) as the result of any issuance
        of warrants, other rights or Common Stock Equivalents, and (i) such warrants
        or
        other rights, or the right of conversion or exchange in such other Common
        Stock
        Equivalents, shall expire, and all or a portion of such warrants or other
        rights, or the right of conversion or exchange with respect to all or a portion
        of such other Common Stock Equivalents, as the case may be shall not have
        been
        exercised, or (ii) the consideration per share for which shares of Common
        Stock
        are issuable pursuant to such Common Stock Equivalents, shall be increased
        solely by virtue of provisions therein contained for an automatic increase
        in
        such consideration per share upon the occurrence of a specified date or event,
        then for each outstanding Warrant such previous adjustment shall be rescinded
        and annulled. Upon the occurrence of an event set forth in this
        Section 4(g) above, there shall be a recomputation made of the effect of
        such Common Stock Equivalents on the basis of: (i) treating the number of
        Additional Shares of Common Stock or other property, if any, theretofore
        actually issued or issuable pursuant to the previous exercise of any such
        warrants or other rights or any such right of conversion or exchange, as
        having
        been issued on the date or dates of any such exercise and for the consideration
        actually received and receivable therefor, and (ii) treating any such
        Common Stock Equivalents which then remain outstanding as having been granted
        or
        issued immediately after the time of such increase of the consideration per
        share for which shares of Common Stock or other property are issuable under
        such
        Common Stock Equivalents; whereupon a new adjustment of the Warrant Price
        then
        in effect shall be made, which new adjustment shall supersede the previous
        adjustment so rescinded and annulled.

       

      (h) Purchase
        of Common Stock by the Issuer.
        If the
        Issuer at any time while this Warrant is outstanding shall, directly or
        indirectly through a Subsidiary or otherwise, purchase, redeem or otherwise
        acquire any shares of Common Stock at a price per share greater than the
        Per
        Share Market Value, then the Warrant Price upon each such purchase, redemption
        or acquisition shall be adjusted to that price determined by multiplying
        such
        Warrant Price by a fraction (i) the numerator of which shall be the number
        of
        shares of Common Stock outstanding immediately prior to such purchase,
        redemption or acquisition minus the number of shares of Common Stock which
        the
        aggregate consideration for the total number of such shares of Common Stock
        so
        purchased, redeemed or acquired would purchase at the Per Share Market Value;
        and (ii) the denominator of which shall be the number of shares of Common
        Stock
        outstanding immediately after such purchase, redemption or acquisition. For
        the
        purposes of this subsection (h), the date as of which the Per Share Market
        Price
        shall be computed shall be the earlier of (x) the date on which the Issuer
        shall
        enter into a firm contract for the purchase, redemption or acquisition of
        such
        Common Stock, or (y) the date of actual purchase, redemption or acquisition
        of
        such Common Stock. For the purposes of this subsection (h), a purchase,
        redemption or acquisition of a Common Stock Equivalent shall be deemed to
        be a
        purchase of the underlying Common Stock, and the computation herein required
        shall be made on the basis of the full exercise, conversion or exchange of
        such
        Common Stock Equivalent on the date as of which such computation is required
        hereby to be made, whether or not such Common Stock Equivalent is actually
        exercisable, convertible or exchangeable on such date.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      (i) Other
        Provisions applicable to Adjustments under this Section.
        The
        following provisions shall be applicable to the making of adjustments of
        the
        number of shares of Common Stock for which this Warrant is exercisable and
        the
        Warrant Price then in effect provided for in this Section 4:

      

      (i) Computation
        of Consideration.
        To the
        extent that any Additional Shares of Common Stock or any Common Stock
        Equivalents (or any warrants or other rights therefor) shall be issued for
        cash
        consideration, the consideration received by the Issuer therefor shall be
        the
        amount of the cash received by the Issuer therefor, or, if such Additional
        Shares of Common Stock or Common Stock Equivalents are offered by the Issuer
        for
        subscription, the subscription price, or, if such Additional Shares of Common
        Stock or Common Stock Equivalents are sold to underwriters or dealers for
        public
        offering without a subscription offering, the initial public offering price
        (in
        any such case subtracting any amounts paid or receivable for accrued interest
        or
        accrued dividends and without taking into account any compensation, discounts
        or
        expenses paid or incurred by the Issuer for and in the underwriting of, or
        otherwise in connection with, the issuance thereof). To the extent that such
        issuance shall be for a consideration other than cash, then, except as herein
        otherwise expressly provided, the amount of such consideration shall be deemed
        to be the fair value of such consideration at the time of such issuance as
        de-termined in good faith by the Board of Directors of the Issuer and reasonably
        acceptable to the Holder. The consideration for any Additional Shares of
        Common
        Stock issuable pursuant to any warrants or other rights to subscribe for
        or
        purchase the same shall be the consideration received by the Issuer for issuing
        such warrants or other rights divided by the number of shares of Common Stock
        issuable upon the exercise of such warrant or right plus the additional
        con-sideration payable to the Issuer upon exercise of such warrant or other
        right for one share of Common Stock (together the “Warrant Consideration”). The
        consideration for any Additional Shares of Common Stock issuable pursuant
        to the
        terms of any Common Stock Equivalents shall be the consideration received
        by the
        Issuer for issuing such Common Stock Equivalent, divided by the number of
        shares
        of Common Stock issuable upon the conversion or other exercise of such Common
        Stock Equivalent, plus the additional consideration, if any, payable to the
        Issuer upon the exercise of the right of conversion or exchange in such Common
        Stock Equivalent for one share of Common Stock (together the “Common Stock
        Equivalent Consideration”). In case of the issuance at any time of any
        Additional Shares of Common Stock or Common Stock Equivalents in payment
        or
        satisfaction of any dividends upon any class of stock other than Common Stock,
        the Issuer shall be deemed to have received for such Additional Shares of
        Common
        Stock or Common Stock Equivalents a consideration equal to the amount of
        such
        dividend so paid or satisfied. 

      

      (ii) Adjustments
        of Number of Shares.
        In
        connection with an adjustment of the Warrant Price pursuant to
        Sections (d), (e), (f), (g) and (h) of this Section 4, the number of
        shares of Common Stock issuable hereunder shall be increased such that the
        aggregate Warrant Price payable hereunder, after taking into account the
        decrease in the Exercise Price, shall be equal to the aggregate Warrant Price
        prior to such adjustment.

      

      (iii) Fractional
        Interests.
        In
        computing adjustments under this Section 4, fractional interests in Common
        Stock shall be taken into account to the nearest one one-hundredth
        (1/100th)
        of a
        share.

      

      (iv) When
        Adjustment Not Required.
        If the
        Issuer shall take a record of the holders of its Common Stock for the purpose
        of
        entitling them to receive a dividend or distribution or subscription or purchase
        rights and shall, thereafter and before the distribution to stockholders
        thereof, legally abandon its plan to pay or deliver such dividend, distribution,
        subscription or purchase rights, then thereafter no adjustment shall be required
        by reason of the taking of such record and any such adjustment previously
        made
        in respect thereof shall be rescinded and annulled. 

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      (j) Form
        of Warrant after Adjustments.
        The
        form of this Warrant need not be changed because of any adjustments in the
        Warrant Price or the number and kind of securities purchasable upon exercise
        of
        this Warrant.

      

      (k) Escrow
        of Property.
        If
        after any property becomes distributable pursuant to this Section 4 by reason
        of
        the taking of any record of the holders of Common Stock, but prior to the
        occurrence of the event for which such record is taken, and the Holder exercises
        this Warrant, such property shall be held in escrow for the Holder by the
        Issuer
        to be distributed to the Holder upon and to the extent that the event actually
        takes place, upon payment of the then current Warrant Price. Notwithstanding
        any
        other provision to the contrary herein, if the event for which such record
        was
        taken fails to occur or is rescinded, then such escrowed property shall be
        returned to the Issuer.

      

      5. Notice
        of Adjustments.
        Whenever the Warrant Price or Warrant Share Number shall be adjusted pursuant
        to
        Section 4 hereof (for purposes of this Section 5, each an “adjustment”),
        the Issuer shall cause its Chief Financial Officer to prepare and execute
        a
        certificate setting forth, in reasonable detail, the event requiring the
        adjustment, the amount of the adjustment, the method by which such adjustment
        was calculated (including a description of the basis on which the Board made
        any
        determination hereunder), and the Warrant Price and Warrant Share Number
        after
        giving effect to such adjustment, and shall cause copies of such certificate
        to
        be delivered to the Holder of this Warrant promptly after each adjustment.
        Any
        dispute between the Issuer and the Holder of this Warrant with respect to
        the
        matters set forth in such certificate may at the option of the Holder of
        this
        Warrant be submitted to one of the national accounting firms currently known
        as
        the “big four” selected by the Holder, provided
        that the
        Issuer shall have ten (10) days after receipt of notice from such Holder
        of its
        selection of such firm to object thereto, in which case such Holder shall
        select
        another such firm and the Issuer shall have no such right of objection. The
        firm
        selected by the Holder of this Warrant as provided in the preceding sentence
        shall be instructed to deliver a written opinion as to such matters to the
        Issuer and such Holder within thirty (30) days after submission to it of
        such
        dispute. Such opinion shall be final and binding on the parties hereto.

      

      6. Fractional
        Shares.
        No
        fractional shares of Warrant Stock will be issued in connection with any
        exercise hereof, but in lieu of such fractional shares, the Issuer shall
        at its
        option either (a) make a cash payment therefor equal in amount to the product
        of
        the applicable fraction multiplied by the Per Share Market Value then in
        effect
        or (b) issue one whole share in lieu of such fractional share.

      

      7. [Intentionally
        Reserved].
        

      

      8. Certain
        Exercise Restrictions. 

       

      (a) Notwithstanding
        anything to the contrary set forth in this Warrant, at no time may a holder
        of
        this Warrant exercise this Warrant if the number of shares of Common Stock
        to be
        issued pursuant to such exercise would exceed, when aggregated with all other
        shares of Common Stock owned by such holder at such time, the number of shares
        of Common Stock which would result in such holder beneficially owning (as
        determined in accordance with Section 13(d) of the Securities Exchange Act
        of 1934, as amended, and the rules thereunder) in excess of 4.99% of all
        of the
        Common Stock outstanding at such time; provided,
        however,
        that
        upon a holder of this Warrant providing the Issuer with sixty-one (61) days
        notice (pursuant to Section 13 hereof) (the "Waiver Notice") that such holder
        would like to waive this Section 8(a) with regard to any or all shares of
        Common Stock issuable upon exercise of this Warrant, this Section 8(a) will
        be
        of no force or effect with regard to all or a portion of the Warrant referenced
        in the Waiver Notice; provided, further, that this Section 8(a) shall be
        of no
        further force or effect during the sixty-one (61) days immediately preceding
        the
        expiration of the term of this Warrant.

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      (b)
         Notwithstanding
        anything to the contrary set forth in this Warrant, at no time may a holder
        of
        this Warrant exercise this Warrant if the number of shares of Common Stock
        to be
        issued pursuant to such exercise would exceed, when aggregated with all other
        shares of Common Stock owned by such holder at such time, the number of shares
        of Common Stock which would result in such holder beneficially owning (as
        determined in accordance with Section 13(d) of the Securities Exchange Act
        of 1934, as amended, and the rules thereunder) in excess of 9.99% of all
        of the
        Common Stock outstanding at such time; provided, however, that upon a holder
        of
        this Warrant providing the Issuer with sixty-one (61) days notice (pursuant
        to
        Section 13 hereof) (the “Waiver Notice”) that such holder would like to
        waive this Section 8 with regard to any or all shares of Common Stock
        issuable upon exercise of this Warrant, this Section 8 will be of no force
        or effect with regard to all or a portion of the Warrant referenced in the
        Waiver Notice; provided, further, that this Section 8(b) shall be of no further
        force or effect during the sixty-one (61) days immediately preceding the
        expiration of the term of this Warrant.

      

      9. Definitions.
        For the
        purposes of this Warrant, the following terms have the following
        meanings:

      

      “Additional
        Shares of Common Stock”
means
        all shares of Common Stock issued by the Issuer after the Original Issue
        Date,
        and all shares of Other Common, if any, issued by the Issuer after the Original
        Issue Date, except for Permitted Issuances.

      

      “Board”
shall
        mean the Board of Directors of the Issuer.

      

      “Capital
        Stock”
means
        and includes (i) any and all shares, interests, participations or other
        equivalents of or interests in (however designated) corporate stock, including,
        without limitation, shares of preferred or preference stock, (ii) all
        partnership interests (whether general or limited) in any Person which is
        a
        partnership, (iii) all membership interests or limited liability company
        interests in any limited liability company, and (iv) all equity or ownership
        interests in any Person of any other type.

      

      “Certificate
        of Incorporation”
means
        the Articles of Incorporation of the Issuer as in effect on the Original
        Issue
        Date, and as hereafter from time to time amended, modified, supplemented
        or
        restated in accordance with the terms hereof and thereof and pursuant to
        applicable law.

      

      “Common
        Stock”
means
        the Common Stock, par value $.01 per share, of the Issuer and any other Capital
        Stock into which such stock may hereafter be changed.

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      “Common
        Stock Equivalent”
means
        any Convertible Security or warrant, option or other right to subscribe for
        or
        purchase any Additional Shares of Common Stock or any Convertible
        Security.

      

      “Common
        Stock Equivalent Consideration”
has
        the
        meaning specified in Section 4 (i) (i) hereof.

      

      “Convertible
        Securities”
means
        evidences of Indebtedness, shares of Capital Stock or other Securities which
        are
        or may be at any time convertible into or exchangeable for Additional Shares
        of
        Common Stock. The term “Convertible Security” means one of the Convertible
        Securities.

      

      “Governmental
        Authority”
means
        any governmental, regulatory or self-regulatory entity, department, body,
        official, authority, commission, board, agency or instrumentality, whether
        federal, state or local, and whether domestic or foreign.

      

      “Holders”
mean
        the Persons who shall from time to time own any Warrant. The term “Holder” means
        one of the Holders.

      

      “Independent
        Appraiser”
means
        a
        nationally recognized or major regional investment banking firm or firm of
        independent certified public accountants of recognized standing (which may
        be
        the firm that regularly examines the financial statements of the Issuer)
        that is
        regularly engaged in the business of appraising the Capital Stock or assets
        of
        corporations or other entities as going concerns, and which is not affiliated
        with either the Issuer or the Holder of any Warrant.

      

      “Issuer”
means
        Wits Basin Precious Minerals Inc., a Minnesota corporation, and its successors.
        

      

      “Majority
        Holders”
means
        at any time the Holders of Warrants, substantially in the form of this Warrant
        and issued on the Original Issue Date, exercisable for a majority of the
        shares
        of Warrant Stock issuable under the Warrants at the time
        outstanding.

      

      “Original
        Issue Date”
means
        February 11, 2008.

      

      “OTC
        Bulletin Board”
means
        the over-the-counter electronic bulletin board.

      

      “Other
        Common”
means
        any other Capital Stock of the Issuer of any class which shall be authorized
        at
        any time after the date of this Warrant (other than Common Stock) and which
        shall have the right to participate in the distribution of earnings and assets
        of the Issuer without limitation as to amount.

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

       

      “Permitted
        Issuances”
means
        (a) issuances of shares of Common Stock or options to employees, officers
        or
        directors of the Issuer pursuant to any stock or option plan existing on
        the
        date hereof if such grants were duly approved by a majority of the non-employee
        members of the Board of Directors of the Issuer or a majority of the members
        of
        a committee of non-employee directors established for such purpose; (b)
        issuances of securities upon the exercise or exchange of or conversion of
        any
        securities issued hereunder and/or securities exercisable or exchangeable
        for or
        convertible into shares of Common Stock issued and outstanding on the Issuance
        Date, provided that such securities have not been amended since the Issuance
        Date to increase the number of such securities or to decrease the exercise,
        exchange or conversion price of any such securities, (c) securities issued
        pursuant to acquisitions or strategic transactions, provided any such issuance
        shall only be to a person which is, itself or through its subsidiaries, an
        operating company in a business synergistic with the business of the Issuer
        as
        determined in good faith by the Board of Directors of the Issuer and in which
        the Issuer receives benefits in addition to the investment of funds, but
        shall
        not include a transaction in which the Issuer is issuing securities primarily
        for the purpose of raising capital or to an entity whose primary business
        is
        investing in securities, (d) shares of Common Stock (other than as set forth
        in
        (a) through (c) above and (e) below) in an aggregate amount not to exceed
        5% of
        the number of shares of Common Stock outstanding on the Original Issue Date
        and
        (e) the issuances set forth on Schedule 3.21 of the Purchase
        Agreement.

      

      “Person”
means
        an individual, corporation, limited liability company, partnership, joint
        stock
        company, trust, unincorporated organization, joint venture, Governmental
        Authority or other entity of whatever nature.

      

      “Per
        Share Market Value”
means
        on any particular date (a) the last trading price on any national securities
        exchange on which the Common Stock is listed, or, if there is no such price,
        the
        VWAP for such Trading Day for a share of Common Stock in the over-the-counter
        market, as reported by the OTC Bulletin Board or in the National Quotation
        Bureau Incorporated or similar organization or agency succeeding to its
        functions of reporting prices) at the close of business on such date, or
        (b) if
        the Common Stock is not then reported by the OTC Bulletin Board or the National
        Quotation Bureau Incorporated (or similar organization or agency succeeding
        to
        its functions of reporting prices), then the average of the “Pink Sheet” quotes
        for the Common Stock on such date, or (c) if the Common Stock is not then
        publicly traded the fair market value of a share of Common Stock on such
        date as
        determined by the Board in good faith; provided,
        however,
        that
        the Majority Holders, after receipt of the determination by the Board, shall
        have the right to select, jointly with the Issuer, an Independent Appraiser,
        in
        which case, the fair market value shall be the determination by such Independent
        Appraiser; and provided,
        further
        that all
        determinations of the Per Share Market Value shall be appropriately adjusted
        for
        any stock dividends, stock splits or other similar transactions during the
        period between the date as of which such market value was required to be
        determined and the date it is finally determined. The determination of fair
        market value shall be based upon the fair market value of the Issuer determined
        on a going concern basis as between a willing buyer and a willing seller
        and
        taking into account all relevant factors determinative of value, and shall
        be
        final and binding on all parties. In determining the fair market value of
        any
        shares of Common Stock, no consideration shall be given to any restrictions
        on
        transfer of the Common Stock imposed by agreement or by federal or state
        securities laws, or to the existence or absence of, or any limitations on,
        voting rights.

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

       

      “Purchase
        Agreement”
means
        the Note and Warrant Purchase Agreement dated as of February 11, 2008 among
        the
        Issuer and the investor party thereto.

      

      “Securities”
means
        any debt or equity securities of the Issuer, whether now or hereafter
        authorized, any instrument convertible into or exchangeable for Securities
        or a
        Security, and any option, warrant or other right to purchase or acquire any
        Security. “Security” means one of the Securities.

      

      “Securities
        Act”
means
        the Securities Act of 1933, as amended, or any similar federal statute then
        in
        effect.

      

      “Subsidiary”
means
        any corporation at least 50% of whose outstanding Voting Stock, and a limited
        liability company at least 50% of whose membership interests, shall at the
        time
        be owned directly or indirectly by the Issuer or by one or more of its
        Subsidiaries.

      

      “Term”
has
        the
        meaning specified in Section 1 hereof.

      

      “Trading
        Day”
means
        (a) a day on which the Common Stock is traded on the OTC Bulletin Board,
        or (b)
        if the Common Stock is not traded on the OTC Bulletin Board, a day on which
        the
        Common Stock is quoted in the over-the-counter market as reported by the
        National Quotation Bureau Incorporated (or any similar organization or agency
        succeeding its functions of reporting prices); provided,
        however,
        that in
        the event that the Common Stock is not listed or quoted as set forth in (a)
        or
        (b) hereof, then Trading Day shall mean any day except Saturday, Sunday and
        any
        day which shall be a legal holiday or a day on which banking institutions
        in the
        State of New York are authorized or required by law or other government action
        to close.

      

      “VWAP”
means,
        for any date, (i) the daily volume weighted average price of the Common Stock
        for such date on the OTC Bulletin Board or national securities exchange as
        reported by Bloomberg Financial L.P. (based on a Trading Day from 9:30 a.m.
        Eastern Time to 4:02 p.m. Eastern Time); (ii) if the Common Stock is not
        then
        listed or quoted on the OTC Bulletin Board or a national securities exchange
        and
        if prices for the Common Stock are then reported in the “Pink Sheets” published
        by the Pink Sheets, LLC (or a similar organization or agency succeeding to
        its
        functions of reporting prices), the most recent bid price per share of the
        Common Stock so reported; or (iii) in all other cases, the fair market value
        of
        a share of Common Stock as determined by an independent appraiser selected
        in
        good faith by the Holder and reasonably acceptable to the Maker.

      

      “Voting
        Stock”
means,
        as applied to the Capital Stock of any corporation, Capital Stock of any
        class
        or classes (however designated) having ordinary voting power for the election
        of
        a majority of the members of the Board of Directors (or other governing body)
        of
        such corporation, other than Capital Stock having such power only by reason
        of
        the happening of a contingency.

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

       

      “Warrants”
means
        the Warrants issued and sold pursuant to the Purchase Agreement, including,
        without limitation, this Warrant, and any other warrants of like tenor issued
        in
        substitution or exchange for any thereof pursuant to the provisions hereof
        or of
        any of such other Warrants. 

      

      “Warrant
        Consideration”
has
        the
        meaning specified in Section 4(i)(i) hereof.

      

      “Warrant
        Price”
        initially means U.S. $0.35, as such price may be adjusted from time to time
        as
        shall result from the adjustments specified in this Warrant, including Section
        4
        hereto.

      

      “Warrant
        Share Number”
means
        at any time the aggregate number of shares of Warrant Stock which may at
        such
        time be purchased upon exercise of this Warrant, after giving effect to all
        prior adjustments and increases to such number made or required to be made
        under
        the terms hereof.

      

      “Warrant
        Stock”
means
        Common Stock issuable upon exercise of any Warrant or Warrants or otherwise
        issuable pursuant to any Warrant or Warrants.

      

      10. Other
        Notices.
        In case
        at any time:

      

      
        	 	
                (A)

              	
                the
                  Issuer shall make any distributions to the holders of Common Stock;
                  or

              

      

      

      
        	 	
                (B)

              	
                the
                  Issuer shall authorize the granting to all holders of its Common
                  Stock of
                  rights to subscribe for or purchase any shares of Capital Stock
                  of any
                  class or of any Common Stock Equivalents or other rights;
                  or

              

      

      

      
        	 	
                (C)

              	
                there
                  shall be any reclassification of the Capital Stock of the Issuer;
                  or

              

      

      

      
        	 	
                (D)

              	
                there
                  shall be any capital reorganization by the Issuer;
                  or

              

      

      

      
        	 	
                (E)

              	
                there
                  shall be any (i) consolidation or merger involving the Issuer or
                  (ii)
                  sale, transfer or other disposition of all or substantially all
                  of the
                  Issuer’s property, assets or business (except a merger or other
                  reorganization in which the Issuer shall be the surviving corporation
                  and
                  its shares of Capital Stock shall continue to be outstanding and
                  unchanged
                  and except a consolidation, merger, sale, transfer or other disposition
                  involving a wholly-owned Subsidiary);
                  or

              

      

      

      
        	 	
                (F)

              	
                there
                  shall be a voluntary or involuntary dissolution, liquidation or
                  winding-up
                  of the Issuer or any partial liquidation of the Issuer or distribution
                  to
                  holders of Common Stock;

              

      

       

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

       

      then,
        in
        each of such cases, the Issuer shall give written notice to the Holder of
        the
        date on which (i) the books of the Issuer shall close or a record shall be
        taken
        for such dividend, distribution or subscription rights or (ii) such
        reorganization, reclassification, consolidation, merger, disposition,
        dissolution, liquidation or winding-up, as the case may be, shall take place.
        Such notice also shall specify the date as of which the holders of Common
        Stock
        of record shall participate in such dividend, distribution or subscription
        rights, or shall be entitled to exchange their certificates for Common Stock
        for
        securities or other property deliverable upon such reorganization,
        reclassification, consolidation, merger, disposition, dissolution, liquidation
        or winding-up, as the case may be. Such notice shall be given at least ten
        (10)
        days prior to the action in question and not less than ten (10) days prior
        to
        the record date or the date on which the Issuer’s transfer books are closed in
        respect thereto. 

      

      11. Amendment
        and Waiver.
        Any
        term, covenant, agreement or condition in this Warrant may be amended, or
        compliance therewith may be waived (either generally or in a particular instance
        and either retroactively or prospectively), by a written instrument or written
        instruments executed by the Issuer and the Majority Holders; provided,
        however,
        that no
        such amendment or waiver shall reduce the Warrant Share Number, increase
        the
        Warrant Price, shorten the period during which this Warrant may be exercised
        or
        modify any provision of this Section 11 without the consent of the Holder
        of
        this Warrant.

      

      12. Governing
        Law.
        THIS
        WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
        THE
        STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF
        LAW.

      

      13. Notices.
        Any and
        all notices or other communications or deliveries required or permitted to
        be
        provided hereunder shall be in writing and shall be deemed given and effective
        on the earlier of (i) the date of transmission, if such notice or communication
        is delivered via facsimile at the facsimile telephone number specified for
        notice prior to 5:00 p.m., eastern time, on a Trading Day, (ii) the Trading
        Day
        after the date of transmission, if such notice or communication is delivered
        via
        facsimile at the facsimile telephone number specified for notice later than
        5:00
        p.m., eastern time, on any date and earlier than 11:59 p.m., eastern time,
        on
        such date, (iii) the Trading Day following the date of mailing, if sent by
        nationally recognized overnight courier service or (iv) actual receipt by
        the
        party to whom such notice is required to be given. The addresses for such
        communications shall be with respect to the Holder of this Warrant or of
        Warrant
        Stock issued pursuant hereto, addressed to such Holder at its last known
        address
        or facsimile number appearing on the books of the Issuer maintained for such
        purposes, or with respect to the Issuer, addressed to:

      

      Wits
        Basin Precious Minerals Inc. 

      80
        South
        8th Street, Suite 900

      Minneapolis,
        Minnesota

      Fax:
        (612) 395-5276

      Attention:
        Mark D. Dacko

      

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

       

      with
        a
        copy to: 

      

      Maslon
        Edelman Borman & Brand, LLP

      3300
        Wells Fargo Center

      90
        South
        Seventh Street

      Minneapolis,
        MN 55402-4140

      Fax:
        (612) 642-8358

      Attention:
        Bill Mower 

       

      Copies
        of
        notices to the Holder shall be sent to Burak Anderson & Melloni, PLC, 30
        Main Street, Burlington, Vermont 05402, Attention: Shane W. McCormack, Tel
        No.:
        (802) 862-0500, Fax No.: (802) 862-8176. Any party hereto may from time to
        time
        change its address for notices by giving at least ten (10) days written notice
        of such changed address to the other party hereto.

      

      14. Warrant
        Agent.
        The
        Issuer may, by written notice to each Holder of this Warrant, appoint an
        agent
        having an office in New York, New York for the purpose of issuing shares
        of
        Warrant Stock on the exercise of this Warrant pursuant to subsection (b)
        of
        Section 2 hereof, exchanging this Warrant pursuant to subsection (d) of Section
        2 hereof or replacing this Warrant pursuant to subsection (d) of Section
        3
        hereof, or any of the foregoing, and thereafter any such issuance, exchange
        or
        replacement, as the case may be, shall be made at such office by such
        agent.

      

      15. Remedies.
        The
        Issuer stipulates that the remedies at law of the Holder of this Warrant
        in the
        event of any default or threatened default by the Issuer in the performance
        of
        or compliance with any of the terms of this Warrant are not and will not
        be
        adequate and that, to the fullest extent permitted by law, such terms may
        be
        specifically enforced by a decree for the specific performance of any agreement
        contained herein or by an injunction against a violation of any of the terms
        hereof or otherwise.

      

      16. Successors
        and Assigns.
        This
        Warrant and the rights evidenced hereby shall inure to the benefit of and
        be
        binding upon the successors and assigns of the Issuer, the Holder hereof
        and (to
        the extent provided herein) the Holders of Warrant Stock issued pursuant
        hereto,
        and shall be enforceable by any such Holder or Holder of Warrant
        Stock.

      

      17. Modification
        and Severability.
        If, in
        any action before any court or agency legally empowered to enforce any provision
        contained herein, any provision hereof is found to be unenforceable, then
        such
        provision shall be deemed modified to the extent necessary to make it
        enforceable by such court or agency. If any such provision is not enforceable
        as
        set forth in the preceding sentence, the unenforceability of such provision
        shall not affect the other provisions of this Warrant, but this Warrant shall
        be
        construed as if such unenforceable provision had never been contained
        herein.

      

      18. Headings.
        The
        headings of the Sections of this Warrant are for convenience of reference
        only
        and shall not, for any purpose, be deemed a part of this Warrant.

       

      19. Voting.
        This
        Warrant does not entitle the Holder to any voting rights or other rights
        as a
        shareholder of the Company prior to the exercise hereof as set forth in Section
        2.

       

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, the Issuer has executed this Warrant as of the day and year
        first above written.

      

      
        	
                WITS
                  BASIN PRECIOUS MINERALS INC.

              
	 	 
	
                By:

              	
                /s/
                  Mark D. Dacko

              
	 	
                Name:
                  Mark D. Dacko

              
	 	
                Title:
                  Chief Financial Officer

              

      

       

      Signature
        Page

      to Warrant
        to Purchase

      Shares
        of Common Stock

       

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

      WARRANT

      EXERCISE
        FORM

      

      WITS
        BASIN PRECIOUS MINERALS INC.

      

      The
        undersigned _______________, pursuant to the provisions of the within Warrant,
        hereby elects to purchase _____ shares of Common Stock of Wits Basin Precious
        Minerals Inc. covered by the within Warrant.

      

      
        	
                Dated:
                  _________________

              	 	
                Signature

              	
                ___________________________

              
	 	 	 	 
	 	 	
                Address

              	
                _____________________

              
	 	 	 	
                _____________________

              

      

      

      Number
        of
        shares of Common Stock beneficially owned or deemed beneficially owned by
        the
        Holder on the date of Exercise: _________________________

      

      The
        undersigned is an “accredited investor” as defined in Regulation D under the
        Securities Act of 1933, as amended.

       

      The
        undersigned intends that payment of the Warrant Price shall be made as (check
        one): 

       

      Cash
        Exercise_______ 

       

      Cashless
        Exercise_______

       

      If
        the
        Holder has elected a Cash Exercise, the Holder shall pay the sum of $________
        by
        certified or official bank check (or via wire transfer) to the Issuer in
        accordance with the terms of the Warrant. 

       

      If
        the
        Holder has elected a Cashless Exercise, a certificate shall be issued to
        the
        Holder for the number of shares equal to the whole number portion of the
        product
        of the calculation set forth below, which is ___________.

       

      X
        = Y -
(A)(Y)

      B

      

      Where: 

      

      The
        number of shares of Common Stock to be issued to the Holder
        __________________(“X”).

      

      The
        number of shares of Common Stock purchasable upon exercise of all of the
        Warrant
        or, if only a portion of the Warrant is being exercised, the portion of the
        Warrant being exercised ___________________________ (“Y”). 

      

      The
        Warrant Price ______________ (“A”). 

      

      The
        Per
        Share Market Value of one share of Common Stock _______________________
        (“B”).

      

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

       

      ASSIGNMENT

      

      FOR
        VALUE
        RECEIVED, _________________ hereby sells, assigns and transfers unto
        __________________ the within Warrant and all rights evidenced thereby and
        does
        irrevocably constitute and appoint _____________, attorney, to transfer the
        said
        Warrant on the books of the within named corporation.

      

      
        	
                Dated:
                  _________________

              	 	
                Signature

              	
                ___________________________

              
	 	 	 	 
	 	 	
                Address

              	
                _____________________

              
	 	 	 	
                _____________________

              

      

      

      PARTIAL
        ASSIGNMENT

      

      FOR
        VALUE
        RECEIVED, _________________ hereby sells, assigns and transfers unto
        __________________ the right to purchase _________ shares of Warrant Stock
        evidenced by the within Warrant together with all rights therein, and does
        irrevocably constitute and appoint ___________________, attorney, to transfer
        that part of the said Warrant on the books of the within named
        corporation.

      

      
        	
                Dated:
                  _________________

              	 	
                Signature

              	
                ___________________________

              
	 	 	 	 
	 	 	
                Address

              	
                _____________________

              
	 	 	 	
                _____________________

              

      

      

      FOR
        USE
        BY THE ISSUER ONLY:

      

      This
        Warrant No. W-___ canceled (or transferred or exchanged) this _____ day of
        ___________, _____, shares of Common Stock issued therefor in the name of
        _______________, Warrant No. W-_____ issued for ____ shares of Common Stock
        in
        the name of _______________.

      

      
        
           

        

        
          23Exhibit
      10.1

    

    NOTE
      AND WARRANT PURCHASE

    

    AGREEMENT

     

     

    Dated
      as of February 11, 2008

     

    

    by
      and between

     

    

    WITS
      BASIN PRECIOUS MINERALS INC.

    

    and

     

    PLATINUM
      LONG TERM GROWTH V, LLC

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    NOTE
      AND WARRANT PURCHASE AGREEMENT

    

    This
      NOTE
      AND WARRANT PURCHASE AGREEMENT dated as of February 11, 2008 (this “Agreement”)
      by and
      between Wits Basin Precious Minerals Inc., a Minnesota corporation (the
“Company”),
      and
      Platinum Long Term Growth V, LLC, a Delaware limited liability company (the
      “Purchaser”).
      

    

    The
      parties hereto agree as follows:

    

    ARTICLE
      I

    

    PURCHASE
      AND SALE OF NOTE AND WARRANT

    Section
      1.1 Purchase
      and Sale of Note and Warrant. 

     

    (a) Upon
      the
      following terms and conditions, the Company shall issue and sell to the
      Purchaser, and the Purchaser shall purchase from the Company, (i) a 10% senior
      secured convertible promissory note in the aggregate principal amount of
      $1,020,000, convertible into shares of the Company’s common stock, par value
      $0.01 per share (the “Common
      Stock”),
      in
      substantially the form attached hereto as Exhibit
      A
      (the
“Note”).
      The
      Company and the Purchaser are executing and delivering this Agreement in
      accordance with and in reliance upon the exemption from securities registration
      afforded by Section 4(2) of the U.S. Securities Act of 1933, as amended, and
      the
      rules and regulations promulgated thereunder (the “Securities
      Act”),
      including Regulation D (“Regulation
      D”),
      and/or upon such other exemption from the registration requirements of the
      Securities Act as may be available with respect to any or all of the investments
      to be made hereunder. 

     

    (b) Upon
      the
      following terms and conditions, the Purchaser shall be issued a Warrant, in
      substantially the form attached hereto as Exhibit
      B
      (the
“Warrant”),
      to
      purchase, subject to adjustment as set forth in the Warrant, 2,500,000 shares
      of
      Common Stock at an exercise price per share equal to the Warrant Price (as
      defined in the Warrant) for a term of five (5) years following the Closing
      Date.

     

    Section
      1.2 Purchase
      Price and Closing.
      Subject
      to the terms and conditions hereof, the Company agrees to issue and sell to
      the
      Purchaser and, in consideration of and in express reliance upon the
      representations, warranties, covenants, terms and conditions of this Agreement,
      the Purchaser agrees to purchase the Note and the Warrant for an aggregate
      purchase price of $1,020,000 (the “Purchase
      Price”).
      The
      closing under this Agreement (the “Closing”)
      shall
      take place on or before February 11, 2008 (the “Closing
      Date”).
      The
      closing of the purchase and sale of the Note and Warrant to be acquired by
      the
      Purchaser from the Company under this Agreement shall take place at the offices
      of the Purchaser, 152 West 57th
      Street,
      New York, NY 10019; provided,
      that
      all of the conditions set forth in Article IV hereof and applicable to the
      Closing shall have been fulfilled or waived in accordance herewith. Subject
      to
      the terms and conditions of this Agreement, at the Closing, the Company shall
      deliver or cause to be delivered to the Purchaser the Note and the Warrant.
      At
      the Closing, the Purchaser shall deliver the Purchase Price by wire transfer
      of
      immediately available funds to the
      Company. 

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Section
      1.3 Conversion
      Shares / Warrant Shares.
      The
      Company has authorized and has reserved and covenants to continue to reserve,
      free of preemptive rights and other similar contractual rights of stockholders
      a
      number of its authorized but unissued shares of Common Stock equal to one
      hundred twenty percent (120%) of the aggregate number of shares of Common Stock
      issuable upon the conversion of the Note and the exercise of the Warrant, and
      shall, within thirty (30) days of the date hereof, take all necessary action
      to
      increase such reserve to one hundred fifty percent (150%) of the aggregate
      number of shares of Common Stock issuable upon conversion of the Note and
      exercise of the Warrant. Any shares of Common Stock issuable upon conversion
      of
      the Note are herein referred to as the “Conversion
      Shares”.
      Any
      shares of Common Stock issuable upon exercise of the Warrant (and such shares
      when issued) are herein referred to as the “Warrant
      Shares”.
      The
      Note, the Warrant, the Conversion Shares and the Warrant Shares are sometimes
      collectively referred to herein as the “Securities”.

     

    ARTICLE
      II

    

    REPRESENTATIONS
      AND WARRANTIES

    Section
      2.1 Representations
      and Warranties of the Company.
      The
      Company hereby represents and warrants to the Purchaser, as of the date hereof
      and the Closing Date (except as set forth on the Schedule of Exceptions attached
      hereto with each numbered Schedule corresponding to the section number herein),
      as follows:

     

    (a) Organization,
      Good Standing and Power.
      The
      Company is a corporation duly incorporated, validly existing and in good
      standing under the laws of the State of Minnesota and has the requisite
      corporate power to own, lease and operate its properties and assets and to
      conduct its business as it is now being conducted. The Company does not have
      any
      direct or indirect Subsidiaries (as defined in Section 2.1(g)) or own securities
      of any kind in any other entity except as set forth on Schedule
      2.1(g)
      hereto.
      The Company and each Guarantor (as defined in Section 2.1(b)) is duly qualified
      as a foreign corporation to do business and is in good standing in every
      jurisdiction in which the nature of the business conducted or property owned
      by
      it makes such qualification necessary except for any jurisdiction(s) (alone
      or
      in the aggregate) in which the failure to be so qualified will not have a
      Material Adverse Effect. For the purposes of this Agreement, “Material
      Adverse Effect”
means
      any material adverse effect on the business, operations, prospects or financial
      condition of the Company and its Subsidiaries, taken as a whole, and/or any
      condition, circumstance, or situation that would prohibit or otherwise
      materially interfere with the ability of the Company or any Guarantor to perform
      any of its respective obligations under this Agreement or any of the Transaction
      Documents in any material respect.

     

    (b) Authorization;
      Enforcement.
      The
      Company, and each of the Guarantors, as applicable, has the requisite corporate
      power and authority to enter into and perform this Agreement, the Note, the
      Warrant, the Security Agreement by and among the Company and the Guarantors,
      on
      the one hand, and the Purchaser, on the other hand, dated as of the date hereof,
      substantially in the form of Exhibit
      C
      attached
      hereto (the “Security
      Agreement”),
      the
      Guaranty to be delivered by Gregory Gold Producers, Inc. (together with any
      additional guarantors of the Company’s obligations to the Purchaser, the
“Guarantors”),
      dated
      as of the date hereof, substantially
      in the form of Exhibit
      D
      attached
      hereto (the “Guaranty”),
      the
      Officer’s Certificate, dated as of the Closing Date, substantially in the form
      of Exhibit
      E
      attached
      hereto (the “Officer’s
      Certificate”)
      and
      the Irrevocable Transfer Agent Instructions (as defined in Section 3.16 hereof)
      (collectively, the “Transaction
      Documents”)
      and to
      issue and sell the Securities in accordance with the terms hereof. The
      execution, delivery and performance of the Transaction Documents by the Company
      and the Guarantors and the consummation by each of them of the transactions
      contemplated hereby and thereby have been duly and validly authorized by all
      necessary corporate action, and no further consent or authorization of the
      Company, the Guarantors, their Boards of Directors or stockholders is required.
      When executed and delivered by the Company and each of the Guarantors, as
      applicable, each of the Transaction Documents shall constitute a valid and
      binding obligation of the Company (or each such Guarantor, as applicable)
      enforceable against the Company (or each such Guarantor, as applicable) in
      accordance with its terms, except as such enforceability may be limited by
      applicable bankruptcy, reorganization, moratorium, liquidation, conservatorship,
      receivership or similar laws relating to, or affecting generally the enforcement
      of, creditor’s rights and remedies or by other equitable principles of general
      application.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (c) Capitalization.
      The
      authorized capital stock and the issued and outstanding shares of capital stock
      of the Company as of the Closing Date is set forth on Schedule
      2.1(c)
      hereto.
      All of the outstanding shares of the Common Stock and any other outstanding
      security of the Company have been duly and validly authorized. Except as set
      forth in this Agreement or as set forth on Schedule
      2.1(c)
      hereto,
      no shares of Common Stock or any other security of the Company are entitled
      to
      preemptive rights and there are no outstanding options, warrants, scrip, rights
      to subscribe to, call or commitments of any character whatsoever relating to,
      or
      securities or rights convertible into, any shares of capital stock of the
      Company. Furthermore, except as set forth in this Agreement and as set forth
      on
Schedule
      2.1(c)
      hereto,
      there are no contracts, commitments, understandings, or arrangements by which
      the Company is or may become bound to issue additional shares of the capital
      stock of the Company or options, securities or rights convertible into shares
      of
      capital stock of the Company. Except for customary transfer restrictions
      contained in agreements entered into by the Company in order to sell restricted
      securities or as provided on Schedule
      2.1(c)
      hereto,
      the Company is not a party to or bound by any agreement or understanding
      granting anti-dilution rights to any person with respect to any of its equity
      or
      debt securities. Except as set forth on Schedule
      2.1(c),
      the
      Company is not a party to, and it has no knowledge of, any agreement or
      understanding restricting the voting or transfer of any shares of the capital
      stock of the Company. 

     

    (d) Issuance
      of Securities.
      The
      Note and the Warrant to be issued at the Closing have been duly authorized
      by
      all necessary corporate action and, when paid for or issued in accordance with
      the terms hereof, the Note shall be validly issued and outstanding, free and
      clear of all liens, encumbrances and rights of refusal of any kind. When the
      Conversion Shares and Warrant Shares are issued and paid for in accordance
      with
      the terms of this Agreement and as set forth in the Note and Warrant, such
      shares will be duly authorized by all necessary corporate action and validly
      issued and outstanding, fully paid and nonassessable, free and clear of all
      liens, encumbrances and rights of refusal of any kind and the holders thereof
      shall be entitled to all rights accorded to a holder of Common Stock.

     

    (e) No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the Guarantors, the performance by the Company of its obligations under
      the
      Note and Warrant and the consummation by the Company of the transactions
      contemplated hereby and thereby, and the issuance of the Securities as
      contemplated hereby, do not and will not (i) violate or conflict with any
      provision of the Company’s Articles of Incorporation (the “Articles”)
      or
      Bylaws (the “Bylaws”),
      each
      as amended to date, or any Guarantor’s comparable charter documents, (ii)
      conflict with, or constitute a default (or an event which with notice or lapse
      of time or both would become a default) under, or give to others any rights
      of
      termination, amendment, acceleration or cancellation of, any agreement,
      mortgage, deed of trust, indenture, note, bond, license, lease agreement,
      instrument or obligation to which the Company or any Guarantor is a party or
      by
      which the Company or any of the Guarantors’ respective properties or assets are
      bound, (iii) result in a violation of any federal, state, local or foreign
      statute, rule, regulation, order, judgment or decree (including federal and
      state securities laws and regulations) applicable to the Company or any
      Guarantor or by which any property or asset of the Company or any Guarantor
      are
      bound or affected, or (iv) create or impose a lien, mortgage, security interest,
      charge or encumbrance of any nature on any property or asset of the Company
      or
      any Guarantor under any agreement or any commitment to which the Company or
      any
      Guarantor is a party or by which the Company or any Guarantor is bound or by
      which any of their respective properties or assets are bound, except, in all
      cases, for such conflicts, defaults, terminations, amendments, acceleration,
      cancellations and violations as would not, individually or in the aggregate,
      have a Material Adverse Effect (other than violations pursuant to clauses (i)
      or
      (iii) (with respect to federal and state securities laws)). Neither
      the Company nor any Guarantor is required under federal, state, foreign or
      local
      law, rule or regulation to obtain any consent, authorization or order of, or
      make any filing or registration with, any court or governmental agency in order
      for it to execute, deliver or perform any of its obligations under the
      Transaction Documents or issue and sell the Securities in accordance with the
      terms hereof. The business of the Company and the Guarantors is not being
      conducted in violation of any laws, ordinances or regulations of any
      governmental entity.

     

    
      
         

      

      
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    (f) Commission
      Documents, Financial Statements.
      The
Common
      Stock of the Company is registered pursuant to Section 12(b) or 12(g) of the
      Securities Exchange Act of 1934, as amended (the “Exchange
      Act”),
      and
      the Company
      has timely filed all reports, schedules, forms, statements and other documents
      required to be filed by it with the Commission pursuant to the reporting
      requirements of the Exchange Act (all of the foregoing including filings
      incorporated by reference therein being referred to herein as the “Commission
      Documents”).
      At
      the times of their respective filings, the Form 10-QSB for the fiscal quarters
      ended March 31, 2007, June 30, 2007 and September 30, 2007 (collectively, the
      “Form
      10-QSB”)
      and
      the Form 10-KSB for the fiscal year ended December 31, 2006 (the “Form
      10-KSB”)
      complied in all material respects with the requirements of the Exchange Act
      and
      the rules and regulations of the Commission promulgated thereunder and other
      federal, state and local laws, rules and regulations applicable to such
      documents, and the Form 10-QSB and Form 10-KSB did not contain any untrue
      statement of a material fact or omit to state a material fact required to be
      stated therein or necessary in order to make the statements therein, in light
      of
      the circumstances under which they were made, not misleading. As of their
      respective dates, the financial statements of the Company included in the
      Commission Documents complied as to form in all material respects with
      applicable accounting requirements and the published rules and regulations
      of
      the Commission or other applicable rules and regulations with respect thereto.
      Such financial statements have been prepared in accordance with
      generally accepted accounting principles (“GAAP”)
      applied on a consistent basis during the periods involved (except (i) as may
      be
      otherwise indicated in such financial statements or the notes thereto or (ii)
      in
      the case of unaudited interim statements, to the extent they may not include
      footnotes or may be condensed or summary statements), and fairly present in
      all
      material respects the financial position of the Company and its consolidated
      Subsidiaries as of the dates thereof and the results of operations and cash
      flows for the periods then ended (subject, in the case of unaudited statements,
      to normal year-end audit adjustments). 

     

    
      
         

      

      
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    (g) Subsidiaries.
      Schedule
      2.1(g)
      hereto
      sets forth each Subsidiary of the Company, showing the jurisdiction of its
      incorporation or organization and showing the percentage of each person’s
      ownership of the outstanding stock or other interests of such Subsidiary. For
      the purposes of this Agreement, “Subsidiary”
shall
      mean any corporation or other entity of which at least a majority of the
      securities or other ownership interest having ordinary voting power (absolutely
      or contingently) for the election of directors or other persons performing
      similar functions are at the time owned directly or indirectly by the Company
      and/or any of its other Subsidiaries. All of the outstanding shares of capital
      stock of each Guarantor have been duly authorized and validly issued, and are
      fully paid and nonassessable. Except as set forth on Schedule
      2.1(g)
      hereto,
      there are no outstanding preemptive, conversion or other rights, options,
      warrants or agreements granted or issued by or binding upon any Guarantor for
      the purchase or acquisition of any shares of capital stock of any Guarantor
      or
      any other securities convertible into, exchangeable for or evidencing the rights
      to subscribe for any shares of such capital stock. Neither the Company nor
      any
      Guarantor is subject to any obligation (contingent or otherwise) to repurchase
      or otherwise acquire or retire any shares of the capital stock of any Guarantor
      or any convertible securities, rights, warrants or options of the type described
      in the preceding sentence except as set forth in the Commission Documents or
      on
Schedule
      2.1(g)
      hereto.
      Neither the Company nor any Guarantor is party to, nor has any knowledge of,
      any
      agreement restricting the voting or transfer of any shares of the capital stock
      of any Guarantor. Other than with respect to the Guarantors and China Global
      Mining Resources Ltd., a British Virgin Islands corporation (“China Global -
      BVI”), no Subsidiary holds any material asset or has any material liabilities as
      of the date hereof.

     

    (h) No
      Material Adverse Change.
      Since
      December 31, 2006, the Company has not experienced or suffered any Material
      Adverse Effect, except as disclosed in the Commission Documents or on
Schedule
      2.1(h)
      hereto.

     

    (i) No
      Undisclosed Liabilities.
      Except
      as disclosed in the Commission Documents or on Schedule
      2.1(i)
      hereto,
      neither the Company nor any Guarantor has incurred any liabilities, obligations,
      claims or losses (whether liquidated or unliquidated, secured or unsecured,
      absolute, accrued, contingent or otherwise) other than those incurred in the
      ordinary course of the Company’s or the Guarantors’ respective businesses or
      which, individually or in the aggregate, are not reasonably likely to have
      a
      Material Adverse Effect.

     

    (j) [Reserved].
      

     

    (k) Indebtedness.
      Schedule
      2.1(k)
      hereto
      sets forth as of the date hereof all outstanding secured and unsecured
      Indebtedness of the Company and each Guarantor, or for which the Company or
      any
      Guarantor has commitments. For the purposes of this Agreement, “Indebtedness”
      shall mean (a) any liabilities for borrowed money or amounts owed in excess
      of
      $100,000 (other than trade accounts payable incurred in the ordinary course
      of
      business), (b) all guaranties, endorsements and other contingent obligations
      in
      respect of Indebtedness of others, whether or not the same are or should be
      reflected in the Company’s balance sheet (or the notes thereto), except
      guaranties by endorsement of negotiable instruments for deposit or collection
      or
      similar transactions in the ordinary course of business; and (c) the present
      value of any lease payments in excess of $100,000 due under leases required
      to
      be capitalized in accordance with GAAP. Neither the Company nor any Guarantor
      is
      in default with respect to any Indebtedness.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (l) Title
      to Assets.
      Each of
      the Company and the Guarantors has good and valid title to all of its real
      and
      personal property reflected in the Commission Documents, free and clear of
      any
      mortgages, pledges, charges, liens, security interests or other encumbrances,
      except for those indicated in the Commission Documents or on Schedule
      2.1(l)
      hereto
      or such that, individually or in the aggregate, do not cause a Material Adverse
      Effect. Any leases of the Company and each Guarantor are valid and subsisting
      and in full force and effect.

     

    (m) Actions
      Pending.
      There
      is no action, suit, claim, investigation, arbitration, alternate dispute
      resolution proceeding or other proceeding pending or, to the knowledge of the
      Company, threatened against the Company or any Guarantor which questions the
      validity of this Agreement or any of the other Transaction Documents or any
      of
      the transactions contemplated hereby or thereby or any action taken or to be
      taken pursuant hereto or thereto. Except as set forth in the Commission
      Documents or on Schedule
      2.1(m)
      hereto,
      there is no action, suit, claim, investigation, arbitration, alternate dispute
      resolution proceeding or other proceeding pending or, to the knowledge of the
      Company, threatened against or involving the Company, any Guarantor or any
      of
      their respective properties or assets, which individually or in the aggregate,
      would reasonably be expected, if adversely determined, to have a Material
      Adverse Effect. There are no outstanding orders, judgments, injunctions, awards
      or decrees of any court, arbitrator or governmental or regulatory body against
      the Company or any Guarantor or any officers or directors of the Company or
      any
      Guarantor in their capacities as such, which individually or in the aggregate,
      could reasonably be expected to have a Material Adverse Effect. 

     

    (n) Compliance
      with Law.
      The
      business of the Company has been and is presently being conducted in accordance
      with all applicable federal, state and local governmental laws, rules,
      regulations and ordinances, except such that, individually or in the aggregate,
      the noncompliance therewith could not reasonably be expected to have a Material
      Adverse Effect. The Company has all franchises, permits, licenses, consents
      and
      other governmental or regulatory authorizations and approvals necessary for
      the
      conduct of its business as now being conducted by it unless the failure to
      possess such franchises, permits, licenses, consents and other governmental
      or
      regulatory authorizations and approvals, individually or in the aggregate,
      could
      not reasonably be expected to have a Material Adverse Effect.

     

    (o) Taxes.
      The
      Company and each Guarantor has accurately prepared and filed all federal, state
      and other tax returns required by law to be filed by it, has paid or made
      provisions for the payment of all taxes shown to be due and all additional
      assessments, and adequate provisions have been and are reflected in the
      financial statements of the Company for all current taxes and other charges
      to
      which the Company is subject and which are not currently due and
      payable. Except as disclosed on Schedule
      2.1(o)
      hereto
      or in the Commission Documents, none of the federal income tax returns of the
      Company or any Guarantor have been audited by the Internal Revenue Service.
      The
      Company has no knowledge of any additional assessments, adjustments or
      contingent tax liability (whether federal or state) of any nature whatsoever,
      whether pending or threatened against the Company or any Guarantor for any
      period, nor of any basis for any such assessment, adjustment or
      contingency.

     

    
      
         

      

      
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    (p) Certain
      Fees.
      Except
      as set forth on Schedule
      2.1(p)
      hereto,
      the Company has not employed any broker or finder or incurred any liability
      for
      any brokerage or investment banking fees, commissions, finders’ structuring
      fees, financial advisory fees or other similar fees in connection with the
      Transaction Documents. 

     

    (q) Disclosure.
      To the
      best of the Company’s knowledge, neither this Agreement or the Schedules hereto
      nor any other documents, certificates or instruments furnished to the Purchaser
      by or on behalf of the Company or any Guarantor in connection with the
      transactions contemplated by this Agreement contain any untrue statement of
      a
      material fact or omit to state a material fact necessary in order to make the
      statements made herein or therein, in the light of the circumstances under
      which
      they were made herein or therein, not misleading.

     

    (r) Operation
      of Business.
      Except
      as set forth in the Commission Documents or on Schedule
      2.1(r)
      hereto,
      the Company and each of the Guarantors owns or possesses the rights to all
      patents, trademarks, domain names (whether or not registered) and any patentable
      improvements or copyrightable derivative works thereof, websites and
      intellectual property rights relating thereto, service marks, trade names,
      copyrights, licenses and authorizations which are necessary for the conduct
      of
      its business as now conducted, and to the Company’s knowledge, without any
      conflict with the rights of others.

     

    (s) [Reserved].
      

     

    (t) Books
      and Records; Internal Accounting Controls.
      The
      records and documents of the Company accurately reflect in all material respects
      the information relating to the business of the Company, the location and
      collection of its assets, and the nature of all transactions giving rise to
      the
      obligations or accounts receivable of the Company. The Company is in material
      compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are
      applicable to it as of the Closing Date. The Company maintains a system of
      internal accounting controls sufficient to provide reasonable assurance that
      (i)
      transactions are executed in accordance with management’s general or specific
      authorizations, (ii) transactions are recorded as necessary to permit
      preparation of financial statements in conformity with GAAP and to maintain
      asset accountability, (iii) access to assets is permitted only in accordance
      with management’s general or specific authorization, and (iv) the recorded
      accountability for assets is compared with the existing assets at reasonable
      intervals and appropriate action is taken with respect to any differences.
      The
      Company has established disclosure controls and procedures (as defined in
      Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such
      disclosure controls and procedures to ensure that information required to be
      disclosed by the Company in the reports it files or submits under the Exchange
      Act is recorded, processed, summarized and reported, within the time periods
      specified in the Commission’s rules and forms. The Company’s certifying officers
      have evaluated the effectiveness of the Company’s disclosure controls and
      procedures as of the end of the
      period covered by the Company’s most recently filed periodic report under the
      Exchange Act (such date, the “Evaluation
      Date”).
      The
      Company presented in its most recently filed periodic report under the Exchange
      Act the conclusions of the certifying officers about the effectiveness of the
      disclosure controls and procedures based on their evaluations as of the
      Evaluation Date. Since the Evaluation Date, there have been no changes in the
      Company’s internal control over financial reporting (as such term is defined in
      the Exchange Act) that has materially affected, or is reasonably likely to
      materially affect, the Company’s internal control over financial
      reporting.

     

    
      
         

      

      
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    (u) Material
      Agreements.
      Except
      as disclosed in the Commission Documents or as set forth on Schedule
      2.1(u)
      hereto,
      or as would not be reasonably likely to have a Material Adverse Effect, (i)
      the
      Company has performed all obligations required to be performed by it to date
      under any written or oral contract, instrument, agreement, commitment,
      obligation, plan or arrangement, filed or required to be filed with the
      Commission (the “Material
      Agreements”),
      (ii)
      neither the Company nor any Guarantor has received any notice of default under
      any Material Agreement and, (iii) to the best of the Company’s knowledge,
      neither the Company nor any Guarantor is in default under any Material Agreement
      now in effect. 

     

    (v) Transactions
      with Affiliates.
      Except
      as set forth on Schedule
      2.1(v)
      hereto
      or in the Commission Documents, there are no loans, leases, agreements,
      contracts, royalty agreements, management contracts or arrangements or other
      continuing transactions between (a) the Company, any Guarantor or any of their
      respective customers or suppliers on the one hand, and (b) on the other hand,
      any officer, employee, consultant or director of the Company, or any Guarantor,
      or any person owning at least 5% of the outstanding capital stock of the Company
      or any Guarantor or any member of the immediate family of such officer,
      employee, consultant, director or stockholder or any corporation or other entity
      controlled by such officer, employee, consultant, director or stockholder,
      or a
      member of the immediate family of such officer, employee, consultant, director
      or stockholder which, in each case, is required to be disclosed in the
      Commission Documents or in the Company’s most recently filed definitive proxy
      statement on Schedule 14A, that is not so disclosed in the Commission Documents
      or in such proxy statement.

     

    (w) Securities
      Act of 1933.
      The
      Company has complied and will comply with all applicable federal and state
      securities laws in connection with the offer, issuance and sale of the
      Securities hereunder. Neither the Company nor anyone acting on its behalf,
      directly or indirectly, has or will sell, offer to sell or solicit offers to
      buy
      any of the Securities or similar securities to, or solicit offers with respect
      thereto from, or enter into any negotiations relating thereto with, any person,
      or has taken or will take any action so as to bring the issuance and sale of
      any
      of the Securities under the registration provisions of the Securities Act and
      applicable state securities laws, and neither the Company nor any of its
      affiliates, nor any person acting on its or their behalf, has engaged in any
      form of general solicitation or general advertising (within the meaning of
      Regulation D under the Securities Act) in connection with the offer or sale
      of
      any of the Securities.

     

    (x) Employees.
      Neither
      the Company nor any Guarantor has any collective bargaining arrangements or
      agreements covering any of its employees, except as set forth on Schedule
      2.1(x)
      hereto.
      Except as set forth on Schedule
      2.1(x)
      hereto
      or in the Commission Documents,
      neither the Company nor any Guarantor has any employment contract, agreement
      regarding proprietary information, non-competition agreement, non-solicitation
      agreement, confidentiality agreement, or any other similar contract or
      restrictive covenant, relating to the right of any officer, employee or
      consultant to be employed or engaged by the Company or such Guarantor required
      to be disclosed in the Commission Documents that is not so disclosed. No
      officer, consultant or key employee of the Company or any Guarantor whose
      termination, either individually or in the aggregate, would be reasonably likely
      to have a Material Adverse Effect, has terminated or, to the knowledge of the
      Company, has any present intention of terminating his or her employment or
      engagement with the Company or any Guarantor.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (y) Absence
      of Certain Developments.
      Except
      as set forth in the Commission Documents or provided on Schedule
      2.1(y)
      hereto,
      since December 31, 2006, neither the Company nor any Guarantor has:

    

    (i) issued
      any stock, bonds or other corporate securities or any right, options or warrants
      with respect thereto;

     

    (ii) borrowed
      any amount in excess of $100,000 or incurred or become subject to any other
      liabilities in excess of $100,000 (absolute or contingent) except current
      liabilities incurred in the ordinary course of business which are comparable
      in
      nature and amount to the current liabilities incurred in the ordinary course
      of
      business during the comparable portion of its prior fiscal year, as adjusted
      to
      reflect the current nature and volume of the business of the Company and the
      Guarantors;

     

    (iii) discharged
      or satisfied any lien or encumbrance in excess of $100,000 or paid any
      obligation or liability (absolute or contingent) in excess of $100,000, other
      than current liabilities paid in the ordinary course of business;

     

    (iv) declared
      or made any payment or distribution of cash or other property to stockholders
      with respect to its stock, or purchased or redeemed, or made any agreements
      so
      to purchase or redeem, any shares of its capital stock, in each case in excess
      of $50,000 individually or $100,000 in the aggregate;

     

    (v) sold,
      assigned or transferred any other tangible assets, or canceled any debts or
      claims, in each case in excess of $100,000, except in the ordinary course of
      business;

     

    (vi) sold,
      assigned or transferred any patent rights, trademarks, trade names, copyrights,
      trade secrets or other intangible assets or intellectual property rights in
      excess of $100,000, or disclosed any proprietary confidential information to
      any
      person except to customers in the ordinary course of business or to the
      Purchaser or its representatives;

     

    (vii) suffered
      any material losses or waived any rights of material value, whether or not
      in
      the ordinary course of business, or suffered the loss of any material amount
      of
      prospective business;

     

    (viii) made
      any
      changes in employee compensation except in the ordinary course of business
      and
      consistent with past practices;

     

    (ix) made
      capital expenditures or commitments therefor that aggregate in excess of
      $100,000;

     

    (x) entered
      into any material transaction, whether or not in the ordinary course of
      business;

     

    (xi) made
      charitable contributions or pledges in excess of $10,000;

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (xii) suffered
      any material damage, destruction or casualty loss, whether or not covered by
      insurance;

     

    (xiii) experienced
      any material problems with labor or management in connection with the terms
      and
      conditions of their employment; or 

     

    (xiv) entered
      into an agreement, written or otherwise, to take any of the foregoing
      actions.

     

    (z) Investment
      Company Act Status.
      The
      Company is not, and as a result of and immediately upon the Closing will not
      be,
      an “investment company” or a company “controlled” by an “investment company,”
within the meaning of the Investment Company Act of 1940, as
      amended.

     

    (aa) ERISA.
      No
      liability to the Pension Benefit Guaranty Corporation has been incurred with
      respect to any Plan by the Company or any Guarantor which is or would be
      materially adverse to the Company and the Guarantors. The execution and delivery
      of this Agreement and the issuance and sale of the Securities will not involve
      any transaction which is subject to the prohibitions of Section 406 of the
      Employee Retirement Income Security Act of 1974, as amended (“ERISA”) or in
      connection with which a tax could be imposed pursuant to Section 4975 of the
      Internal Revenue Code of 1986, as amended, provided that, if the Purchaser,
      or
      any person or entity that owns a beneficial interest in the Purchaser, is an
      “employee pension benefit plan” (within the meaning of Section 3(2) of ERISA)
      with respect to which the Company is a “party in interest” (within the meaning
      of Section 3(14) of ERISA), the requirements of Sections 407(d)(5) and 408(e)
      of
      ERISA, if applicable, are met. As used in this Section 2.1(aa), the term “Plan”
shall mean an “employee pension benefit plan” (as defined in Section 3 of ERISA)
      which is or has been established or maintained, or to which contributions are
      or
      have been made, by the Company or any Guarantor or by any trade or business,
      whether or not incorporated, which, together with the Company or any Guarantor,
      is under common control, as described in Section 414(b) or (c) of the
      Code.

     

    (bb) [Reserved].

     

    (cc) No
      Integrated Offering.
      Neither
      the Company, nor any of its affiliates, nor any person acting on its or their
      behalf, has directly or indirectly made any offers or sales of any security
      or
      solicited any offers to buy any security under circumstances that would cause
      the offering of the Securities pursuant to this Agreement to be integrated
      with
      prior offerings by the Company for purposes of the Securities Act which would
      prevent the Company from selling the Securities pursuant to Regulation D and
      Rule 506 thereof under the Securities Act, or any applicable exchange-related
      stockholder approval provisions, nor will the Company or any of its affiliates
      or subsidiaries take any action or steps that would cause the offering of the
      Securities to be integrated with other offerings.
      Except
      as set forth on Schedule 2.1(cc) hereto, the Company does not have any
      registration statement pending before the Commission or currently under the
      Commission’s review and, since June 1, 2007, the Company has not offered or sold
      any of its equity securities or debt securities convertible into shares of
      Common Stock except pursuant to the grant or exercise of compensatory stock
      option plans.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (dd) Dilutive
      Effect.
      The
      Company understands and acknowledges that its obligation to issue Conversion
      Shares upon conversion of the Note in accordance with this Agreement and the
      Note and its obligations to issue the Warrant Shares upon the exercise of the
      Warrant in accordance with this Agreement and the Warrant, is, in each case,
      absolute and unconditional regardless of the dilutive effect that such issuance
      may have on the ownership interest of other stockholders of the
      Company.

     

    (ee) DTC
      Status.
      Except
      as set forth on Schedule
      2.1(ee)
      hereto,
      the Company’s transfer agent is a participant in and the Common Stock is
      eligible for transfer pursuant to the Depository Trust Company Automated
      Securities Transfer Program. The name, address, telephone number, fax number,
      contact person and email of the Company transfer agent is set forth on
Schedule
      2.1(ee)
      hereto.

     

    (ff) Consulting
      Warrants.
      The
      Company and MHG Consultants LLC executed the Consulting Agreement (the
“Consulting Agreement”), dated as of July 27, 2007, which became effective on
      November 1, 2007. The holding period, under Rule 144, of the Commencement
      Warrant (as defined in the Consulting Agreement) commenced on November 1, 2007.
      The holding period, under Rule 144, for (i) that portion of the Monthly Fee
      Warrant exercisable for 1,000,000 shares commenced on November 1, 2008 (on
      which
      date such shares vested and became exercisable), (ii) that portion of the
      Monthly Fee Warrant exercisable for an additional 250,000 shares commenced
      on
      November 30, 2007 (on which date such shares vested and became exercisable),
      (iii) that portion of the Monthly Fee Warrant exercisable for an additional
      250,000 shares commenced on December 31, 2007 (on which date such shares vested
      and became exercisable), (iv) that portion of the Monthly Fee Warrant
      exercisable for an additional 250,000 shares commenced on January 31, 2008
      (on
      which date such shares vested and became exercisable) and (v) that portion
      of
      the Monthly Fee Warrant exercisable for 1,250,000 shares of Common Stock will
      commence on the date hereof. Upon transfer of the Merit Warrants as contemplated
      herein, the Purchaser shall be permitted to “tack” such holding periods for
      purposes of Rule 144.

     

    (gg) Easyknit
      Merger.
      The
      Agreement and Plan of Merger and Reorganization, dated April 20, 2007, as
      amended (the “Easyknit
      Merger Agreement”),
      by
      and among Easyknit Enterprises
      Holdings Limited, Race Merger, Inc. and the Company has been terminated and
      is
      no longer of any further force and effect, and no consent of any party (or
      such
      party’s affiliates) to the Easyknit Merger Agreement (other than the Company)
      pursuant to the Easyknit Merger Agreement, the Settlement Agreement referenced
      below or any other document, agreement or understanding is required for the
      consummation of the transactions contemplated by the Transaction Documents.
      Each
      of the parties to the Easyknit Merger Agreement have released any and all claims
      against the Company relating in any way thereto, and have taken all necessary
      action to dismiss any suits filed in connection therewith. The parties to the
      Easyknit Merger Agreement have entered into a Settlement Agreement and General
      Release dated December 19, 2007, the provisions of which are in effect on the
      date hereof. 

     

    Section
      2.2 Representations
      and Warranties of the Purchaser.
      The
      Purchaser hereby represents and warrants to the Company as follows as of the
      date hereof and as of the Closing Date:

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (a) Organization
      and Standing of the Purchaser.
      The
      Purchaser is a corporation, limited liability company or partnership duly
      incorporated or organized, validly existing and in good standing under the
      laws
      of the jurisdiction of its incorporation or organization.

     

    (b) Authorization
      and Power.
      The
      Purchaser has the requisite power and authority to enter into and perform the
      Transaction Documents and to purchase the Securities being sold to it hereunder.
      The execution, delivery and performance of the Transaction Documents by the
      Purchaser and the consummation by it of the transactions contemplated hereby
      and
      thereby have been duly authorized by all necessary corporate or partnership
      action, and no further consent or authorization of the Purchaser or its Board
      of
      Directors, stockholders, or partners, as the case may be, is required. When
      executed and delivered by the Purchaser, the Transaction Documents shall
      constitute valid and binding obligations of the Purchaser enforceable against
      the Purchaser in accordance with their terms, except as such enforceability
      may
      be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
      liquidation, conservatorship, receivership or similar laws relating to, or
      affecting generally the enforcement of, creditor’s rights and remedies or by
      other equitable principles of general application.

     

    (c) Acquisition
      for Investment.
      The
      Purchaser is purchasing the Securities solely for its own account and not with
      a
      view to or for sale in connection with distribution. The Purchaser does not
      have
      a present intention to sell any of the Securities, nor a present arrangement
      (whether or not legally binding) or intention to effect any distribution of
      any
      of the Securities to or through any person or entity; provided,
      however,
      that by
      making the representations herein, the Purchaser does not agree to hold the
      Securities for any minimum or other specific term and reserves the right to
      dispose of the Securities at any time in accordance with Federal and state
      securities laws applicable to such disposition. The Purchaser acknowledges
      that
      it (i) has such knowledge and experience in financial and business matters
      such
      that Purchaser is capable of evaluating the merits and risks of Purchaser’s
      investment in the Company, (ii) is able to bear the financial risks associated
      with an investment in the Securities and (iii) has been given full access
to
      such
      records of the Company and the Guarantors and to the officers of the Company
      and
      the Guarantors as it has deemed necessary or appropriate to conduct its due
      diligence investigation.

     

    (d) Rule
      144.
      The
      Purchaser understands that the Securities must be held indefinitely unless
      such
      Securities are registered under the Securities Act or an exemption from
      registration is available. The Purchaser acknowledges that such person is
      familiar with Rule 144 of the rules and regulations of the Commission, as
      amended, promulgated pursuant to the Securities Act (“Rule
      144”),
      and
      that the Purchaser has been advised that Rule 144 permits resales only under
      certain circumstances. The Purchaser understands that to the extent that Rule
      144 is not available, the Purchaser will be unable to sell any Securities
      without either registration under the Securities Act or the existence of another
      exemption from such registration requirement.

     

    (e) General.
      The
      Purchaser understands that the Securities are being offered and sold in reliance
      on a transactional exemption from the registration requirements of federal
      and
      state securities laws and the Company is relying upon the truth and accuracy
      of
      the representations, warranties, agreements, acknowledgments and understandings
      of the Purchaser set forth herein in order to determine the applicability of
      such exemptions and the suitability of the Purchaser to acquire the Securities.
      The Purchaser understands that no United States federal or state agency or
      any
      government or governmental agency has passed upon or made any recommendation
      or
      endorsement of the Securities. 

     

    
      
         

      

      
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    (f) No
      General Solicitation.
      The
      Purchaser acknowledges that the Securities were not offered to the Purchaser
      by
      means of any form of general or public solicitation or general advertising,
      or
      publicly disseminated advertisements or sales literature, including (i) any
      advertisement, article, notice or other communication published in any
      newspaper, magazine, or similar media, or broadcast over television or radio,
      or
      (ii) any seminar or meeting to which the Purchaser was invited by any of the
      foregoing means of communications. The Purchaser, in making the decision to
      purchase the Securities, has relied upon independent investigation made by
      it
      and has not relied on any information or representations made by third
      parties.

     

    (g) Accredited
      Investor.
      The
      Purchaser is an “accredited investor” (as defined in Rule 501 of Regulation D),
      and the Purchaser has such experience in business and financial matters that
      it
      is capable of evaluating the merits and risks of an investment in the
      Securities. The Purchaser is not required to be registered as a broker-dealer
      under Section 15 of the Exchange Act and the Purchaser is not a broker-dealer.
      The Purchaser acknowledges that an investment in the Securities is speculative
      and involves a high degree of risk. 

     

    (h) Certain
      Fees.
      The
      Purchaser has not employed any broker or finder or incurred any liability for
      any brokerage or investment banking fees, commissions, finders’ structuring
      fees, financial advisory fees or other similar fees in connection with the
      Transaction Documents.

     

    (i) No
      Short Position.
      The
      Purchaser covenants and agrees that it will not effect any short sale with
      respect to the shares of Common Stock for so long as the Purchaser holds the
      Note, the Warrant or any of the Merit Warrants that may be transferred to it;
      provided, that, it is understood and agreed that nothing in this Section 2.2(i)
      shall be deemed to prohibit Purchaser
      from disposing of any shares of Common Stock held by it (whether received upon
      conversion of the Note, exercise of the Warrant or otherwise). 

    

    ARTICLE
      III

    

    COVENANTS

    Unless
      terminated earlier in accordance with the terms the provisions below, for so
      long as the Note or the Warrant is outstanding, the Company covenants with
      the
      Purchaser as follows, which covenants are for the benefit of the Purchaser
      and
      its permitted assignees.

     

    Section
      3.1 Securities
      Compliance.
      The
      Company shall notify the Commission in accordance with its rules and
      regulations, of the transactions contemplated by any of the Transaction
      Documents and shall take all other necessary action and proceedings as may
      be
      required and permitted by applicable law, rule and regulation, for the legal
      and
      valid issuance of the Securities to the Purchaser or its assigns.

     

    Section
      3.2 Registration
      and Listing.
      The
      Company shall cause its Common Stock to continue to be registered under Sections
      12(b) or 12(g) of the Exchange Act, to comply in all respects with its reporting
      and filing obligations under the Exchange Act, to comply with all requirements
      related to any registration statement filed pursuant to this Agreement, and
      to
      not take any action or file any document (whether or not permitted by the
      Securities Act or the rules promulgated thereunder) to terminate or suspend
      such
      registration or to terminate or suspend its reporting and filing obligations
      under the Exchange Act or Securities Act, except as permitted herein. The
      Company will take all action necessary to continue the listing or trading of
      its
      Common Stock on the OTC Bulletin Board or other exchange or market on which
      the
      Common Stock is trading. If required, the Company will promptly file the
“Listing Application” for, or in connection with, the issuance and delivery of
      the Shares and the Warrant Shares. Subject to the terms of the Transaction
      Documents, the Company further covenants that it will take such further action
      as the Purchaser may reasonably request, all to the extent required from time
      to
      time to enable the Purchaser to sell the Securities without registration under
      the Securities Act within the limitation of the exemptions provided by Rule
      144
      promulgated under the Securities Act. Upon the request of the Purchaser, the
      Company shall deliver to the Purchaser a written certification of a duly
      authorized officer as to whether it has complied with such
      requirements.

     

    
      
         

      

      
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    Section
      3.3 [Reserved].

     

    Section
      3.4 Compliance
      with Laws.
      The
      Company shall comply, and cause each Guarantor to comply, with all applicable
      laws, rules, regulations and orders, noncompliance with which would be
      reasonably likely to have a Material Adverse Effect.

     

    Section
      3.5 Keeping
      of Records and Books of Account.
      The
      Company shall keep adequate records and books of account, in which complete
      entries will be made in accordance with GAAP consistently applied, reflecting
      all financial transactions of the Company and the Guarantors, and in which,
      for
      each fiscal year, all proper reserves for depreciation, depletion,
      obsolescence, amortization, taxes, bad debts and other purposes in connection
      with its business shall be made.

     

    Section
      3.6 Reporting
      Requirements.
      If the
      Company ceases to file its periodic reports with the Commission, or if the
      Commission ceases making these periodic reports available via the Internet
      without charge, then, upon the request of the Purchaser, the Company shall
      furnish the following to the Purchaser so long as the Purchaser shall be
      obligated hereunder to purchase the Securities or shall beneficially own the
      Securities:

     

    (a) Quarterly
      Reports filed with the Commission on Form 10-QSB;

     

    (b) Annual
      Reports filed with the Commission on Form 10-KSB; and

     

    (c) Copies
      of
      all notices, information and proxy statements in connection with any meetings,
      that are, in each case, provided to holders of shares of Common
      Stock.

     

    Section
      3.7 Other
      Agreements.
      The
      Company shall not enter into any agreement in which the terms of such agreement
      would restrict or impair the right or ability to perform of the Company or
      any
      Guarantor under any Transaction Document.

     

    Section
      3.8 Use
      of
      Proceeds.
      The net
      proceeds from the sale of the Securities hereunder shall be used by the Company
      for working capital and general corporate purposes, including, but not limited
      to, growth and capital initiatives, investor and public relations and
      acquisitions, and not to redeem any Common Stock or securities convertible,
      exercisable or exchangeable into Common Stock or to settle any outstanding
      litigation.

     

    
      
         

      

      
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    Section
      3.9 Reporting
      Status. The
      Company shall timely file all reports required to be filed with the Commission
      pursuant to the Exchange Act, and the Company shall not terminate its status
      as
      an issuer required to file reports under the Exchange Act even if the Exchange
      Act or the rules and regulations thereunder would permit such
      termination. 

    

    Section
      3.10 Disclosure
      of Transaction.
      The
      Company shall issue a press release describing the material terms of the
      transactions contemplated hereby (the “Press
      Release”)
      by the
      second Trading Day following Closing. The Company shall also file with the
      Commission a Current Report on Form 8-K (the “Form
      8-K”)
      describing the material terms of the transactions contemplated hereby (and
      attaching as exhibits thereto this Agreement, the Note, the Security Agreement,
      the Warrant and the Press Release) as soon as practicable following the Closing
      Date but in no event more than four (4) Trading Days following the Closing
      Date,
      which Press Release and Form 8-K shall be subject to prior review and comment
      by
      the Purchaser. “Trading
      Day”
means
      any day during which the principal exchange on which the Common Stock is traded
      shall be open for trading. 

     

    Section
      3.11 Disclosure
      of Material Information.
      The
      Company covenants and agrees that neither it nor any other person acting on
      its
      behalf will provide the Purchaser or its agents or counsel with any information
      that the Company believes constitutes material non-public information, unless
      prior thereto the Purchaser shall have executed a written agreement regarding
      the confidentiality and use of such information.  The Company understands
      and confirms
      that the Purchaser shall be relying on the foregoing representations in
      effecting transactions in securities of the Company.  

     

    Section
      3.12 Pledge
      of Securities.
      The
      Company acknowledges that the Securities may be pledged by the Purchaser in
      connection with a bona fide
      margin
      agreement or other loan or financing arrangement that is secured by the
      Securities. The pledge of Securities shall not be deemed to be a transfer,
      sale
      or assignment of the Securities hereunder, and Purchaser effecting a pledge
      of
      the Securities shall not be required to provide the Company with any notice
      thereof or otherwise make any delivery to the Company pursuant to this Agreement
      or any other Transaction Document. The Company hereby agrees to execute and
      deliver such documentation as a pledgee of the Securities may reasonably request
      in connection with a pledge of the Securities to such pledgee by the
      Purchaser. 

     

    Section
      3.13 Amendments.
      The
      Company shall not amend or waive any provision of the Articles or Bylaws of
      the
      Company in any way that would adversely affect exercise rights, voting rights,
      conversion rights, prepayment rights or redemption rights of the holder of
      the
      Note or the Warrant.

     

    Section
      3.14 Distributions.
      Other
      than a distribution or dividend of the Company’s interests in materially the
      form described in Schedule 3.14 hereto (as described in Schedule 3.14, the
      “FSC
      Dividend”
and
      the
“Bates-Hunter
      Dividend,”
      respectively and collectively referred to herein as the “Subsidiary
      Dividends”,
      which
      shall be expressly permitted so long as the Company’s obligations under the Note
      have not matured and remain unpaid or so long as the Note has not been
      accelerated by the Purchaser) to the holders of its Common Stock, for so long
      as
      the Note is outstanding, the Company agrees that it shall not, and shall not
      permit any Guarantor to, (i) declare
      or pay any dividends or make any distributions to any equity holder (other
      than
      the Company in the case of the Guarantors) or (ii) purchase or otherwise acquire
      for value, directly or indirectly, any Common Stock or other equity security
      of
      the Company,
      or
      (iii) transfer, assign, pledge, issue or otherwise permit any equity or other
      ownership interests in the Guarantors to be beneficially owned or held by any
      person other than the Company. Notwithstanding
      the foregoing, in the event the distribution and/or dividend relating to a
      Subsidiary Dividend is not in all material respects in the nature and form
      described on Schedule 3.14 hereof, the Company shall be required to obtain
      the
      prior written consent of the Purchaser to consummate such dividend or
      distribution, which consent shall not be unreasonably withheld (so long as
      the
      Company’s obligations under the Note have not matured and remain unpaid or so
      long as the Note has not been accelerated by the Purchaser).

     

    
      
         

      

      
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    Section
      3.15 Reservation
      of Shares.
      The
      Company shall take all action necessary to at all times have authorized and
      reserved for the purpose of issuance, one hundred fifty percent (150%) of the
      aggregate number of shares of Common Stock needed to provide for the issuance
      of
      the Conversion Shares and the Warrant Shares.

     

    Section
      3.16 Transfer
      Agent Instructions.
      The
      Company shall issue irrevocable instructions to its transfer agent, and any
      subsequent transfer agent, to issue certificates, registered in the name of
      the
      Purchaser or its nominee(s), for the Conversion Shares and the Warrant Shares
      in
      such amounts as specified from time to time by the Purchaser to the Company
      upon
      conversion of the Note or exercise of the Warrant in the form of Exhibit
      F
      attached
      hereto (the
      “Irrevocable
      Transfer Agent Instructions”).
      The
      Company warrants that no instruction other than the Irrevocable Transfer Agent
      Instructions referred to in this Section 3.16 will be given by the Company
      to
      its transfer agent with respect to the terms of this Agreement and the
      Transaction Documents and that the Conversion Shares and Warrant Shares shall
      otherwise be freely transferable on the books and records of the Company as
      and
      to the extent provided in this Agreement and under law. Nothing in this Section
      3.16 shall affect in any way the Purchaser’s obligations and agreements set
      forth in Section 5.1 to comply with all applicable prospectus delivery
      requirements, if any, upon resale of the Conversion Shares and the Warrant
      Shares. If the Purchaser provides the Company with an opinion of counsel
      (whether pursuant to Section 3.17 hereof or otherwise), in a generally
      acceptable form, to the effect that a public sale, assignment or transfer of
      the
      Conversion Shares or Warrant Shares may be made without registration
      under the Securities Act or the Purchaser provides the Company with reasonable
      assurances that the Conversion Shares or Warrant Shares can be sold pursuant
      to
      Rule 144 without any restriction as to the number of securities acquired as
      of a
      particular date that can then be immediately sold, the Company shall permit
      the
      transfer, and, in the case of the Conversion Shares and the Warrant Shares,
      promptly instruct its transfer agent to issue one or more certificates in such
      name and in such denominations as specified by the Purchaser and without any
      restrictive legend. The Company acknowledges that a breach by it of its
      obligations under this Section 3.16 will cause irreparable harm to the Purchaser
      by vitiating the intent and purpose of the transaction contemplated hereby.
      Accordingly, the Company acknowledges that the remedy at law for a breach of
      its
      obligations under this Section 3.16 will be inadequate and agrees, in the
      event of a breach or threatened breach by the Company of the provisions of
      this
      Section 3.16, that the Purchaser shall be entitled, in addition to all other
      available remedies, to an order and/or injunction restraining any breach and
      requiring immediate issuance and transfer, without the necessity of showing
      economic loss and without any bond or other security being required. 

     

    
      
         

      

      
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    Section
      3.17 Opinions. The
      Company will provide, at the Company’s expense, such legal opinions in the
      future as are reasonably appropriate and necessary for the issuance and resale
      of the Common Stock issuable upon conversion of the Note and exercise of the
      Warrant and the Merit Warrants (as defined below) pursuant to an effective
      registration statement, Rule 144 under the 1933 Act or an exemption from
      registration. In the event that such Common Stock is sold in a manner that
      complies with an exemption from registration, the Company will promptly cause
      its counsel (at its expense) to issue to the transfer agent an opinion
      permitting removal of the legend (indefinitely, if pursuant to Rule 144(k)
      of
      the 1933 Act (or its successor provisions, including any provision that permits
      unlimited resales after the relevant holding periods set forth in Rule 144),
      or
      to permit sale of the shares if pursuant to the other provisions of Rule 144
      of
      the 1933 Act).

     

    Section
      3.18 Acquisition
      of Assets.
      For so
      long as the Note is outstanding, in the event the Company, any Guarantor or
      any
      other Subsidiary acquires any assets or other properties, such assets or
      properties shall constitute a part of the Collateral (as defined in the Security
      Agreement) and the Company or such Subsidiary shall take all action reasonably
      necessary to assist the Purchaser in perfecting Purchaser’s security interest in
      such assets or properties pursuant to the Security Agreement;
      provided
      that,
      for
      purposes of this Section 3.18, China Global - BVI, China Global Mining Resources
      Ltd., a Hong Kong corporation (“China Global - HK”), Wits-China Acquisition
      Corp., a Minnesota corporation (“Wits-China”), and wholly
      owned subsidiaries of such entities (such entities and wholly owned subsidiaries
      thereof shall be referred to herein as the “China Subsidiaries”), shall not
      constitute Subsidiaries to the extent all or substantially all of the assets
      of
      such China Subsidiaries are located in, relate to or are proceeds resulting
      from
      assets located in or relating to, China. If any Subsidiary that is not a
      Guarantor acquires any material assets, such Subsidiary shall promptly
      thereafter become a Guarantor hereunder and execute a joinder to the Security
      Agreement in the form attached thereto. Notwithstanding the foregoing, upon
      completion of any Subsidiary Dividend, (i) any pledge of the equity interests
      in
      any entity formed by the Company or its subsidiaries for purposes of effecting
      the Subsidiary Dividend, shall, with respect to that portion of the equity
      of
      such entity distributed pursuant to the Subsidiary Dividend, be released (it
      being understood that any equity interest in such entity held by the Company
      or
      any such Subsidiary after consummation of the Subsidiary Dividend shall remain
      as collateral under the Security Agreement) and (ii) any security interest
      in
      the assets of a Dividend Subsidiary shall be promptly released by the Purchaser.
      Further notwithstanding the foregoing, the terms of this Section 3.18 shall
      not
      apply to any assets, or the proceeds from any sale or transfer of such assets,
      transferred from a China Subsidiary to the Company, a Guarantor or Subsidiary
      to
      the extent the same is pledged to China Gold, LLC (“China
      Gold”)
      pursuant to the Security Agreement, dated as of June 19, 2007, between the
      Company and China Gold, the Amended and Restated Pledge Agreement dated as
      of
      February 7, 2008 by and between the Company and China Gold, or a Subsidiary
      Security Agreement by and between China Gold, on the one hand, and any China
      Subsidiary, on the other hand, to secure outstanding obligations to China Gold.
      

     

    Section
      3.19 [Reserved].

     

    
      
         

      

      
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    Section
      3.20 Registration
      Rights.
      If the
      Company shall determine to prepare and file with the Commission a registration
      statement (a “Registration
      Statement”)
      relating to an offering for its own account or the account of others under
      the
      Securities Act of any of its equity securities, other than on Form S-4 or Form
      S-8 (each as promulgated under the Securities Act), or their then equivalents,
      relating to equity securities to be issued solely in connection with any
      acquisition of any entity or business or equity securities issuable in
      connection with stock option or other employee benefit plans, then the Company
      shall send to the Purchaser a written notice of such determination and, if
      within ten days after the date of such notice, the Purchaser shall so request
      in
      writing, the Company shall include in such Registration Statement all or any
      part of the Conversion Shares or Warrant Shares as the Purchaser requests to
      be
      registered so long as such Conversion Shares or Warrant Shares are proposed
      to
      be disposed in the same manner as those set forth in the Registration Statement;
      provided, however, that if the number of Conversion Shares or Warrant Shares
      offered for participation in the proposed offering is greater than, in the
      reasonable opinion of the managing underwriter of the proposed offering, can
      be
      accommodated without adversely affecting the proposed offering, then the number
      of shares of Common Stock included in such registration shall be subject to
      reduction to a number deemed satisfactory by the managing underwriter, which
      reduction shall be allocated pro rata among all parties offering securities
      pursuant to such Registration Statement. The Company shall use its best efforts
      to cause any Registration Statement to be declared effective by the Commission
      as promptly as is possible following it being filed with the Commission and
      to
      remain effective until all Conversion Shares and Warrant Shares subject thereto
      have been sold or may be sold without limitations as to volume or the
      availability of current public information under Rule 144. All fees and expenses
      incident to the performance of or compliance with this Section 3.20 by the
      Company
      shall be borne by the Company whether or not any Conversion Shares or Warrant
      Shares are sold pursuant to the Registration Statement. The Company shall
      indemnify and hold harmless the Purchaser, the officers, directors, members,
      partners, agents, brokers, investment advisors and employees of each of them,
      each person who controls the Purchaser (within the meaning of Section 15 of
      the
      Securities Act or Section 20 of the Exchange Act), and the officers, directors,
      members, shareholders, partners, agents and employees of each such controlling
      person, to the fullest extent permitted by applicable law, from and against
      any
      and all losses, claims, damages, liabilities, costs (including, without
      limitation, reasonable attorneys’ fees) and expenses (collectively,
“Losses”),
      as
      incurred, arising out of or relating to (1) any untrue or alleged untrue
      statement of a material fact contained in the Registration Statement, any
      prospectus included therein or any form of prospectus or in any amendment or
      supplement thereto or in any preliminary prospectus, or arising out of or
      relating to any omission or alleged omission of a material fact required to
      be
      stated therein or necessary to make the statements therein (in the case of
      any
      prospectus or form of prospectus or supplement thereto, in light of the
      circumstances under which they were made) not misleading or (2) any violation
      or
      alleged violation by the Company of the Securities Act, the Exchange Act or
      any
      state securities law, or any rule or regulation thereunder, in connection with
      the performance of its obligations under this Section 3.20, except to the
      extent, but only to the extent, that such untrue statements or omissions
      referred to in (1) above are based solely upon information regarding the
      Purchaser furnished in writing to the Company by the Purchaser expressly for
      use
      therein.

     

    Section
      3.21 MFN.
      For so
      long as the Note is outstanding, if the Company enters into any subsequent
      equity or equity linked financing (a “Subsequent
      Financing”)
      on
      terms more favorable, as determined by the Purchaser in its discretion, than
      the
      terms governing the Note, then the Purchaser in its sole discretion may exchange
      its Note, valued at its stated value, together with accrued but unpaid interest
      (which interest payments shall be payable, at the sole option of the Purchaser,
      in cash or in the form of the new securities to be issued in the Subsequent
      Financing), for the securities issued or to be issued in the Subsequent
      Financing. The Company covenants and agrees to notify in writing the Purchasers
      of the terms and conditions of any such proposed Subsequent Financing as
      promptly as practicable, but in no event less than 10 days prior to such
      Subsequent Financing. Neither an exchange pursuant to this provision nor any
      repayment or conversion of the Note shall have any effect on the Purchaser’s
      Warrants. The Warrants constitute a separate, detachable security from the
      Note.
      Notwithstanding any such exchange, repayment or conversion, the Purchasers
      shall
      retain all of the outstanding Warrants which they received upon Closing, or
      otherwise, that have not been exercised by the Purchasers. Notwithstanding
      the
      above, (i) the transactions set forth on Schedule
      3.21
      hereof
      and (ii) issuances described in clauses (a) through (c) of Section 3.5(c) of
      the
      Note shall not be deemed to be Subsequent Financings and shall not be subject
      to
      the provisions of this Section 3.21. 

     

    
      
         

      

      
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    Section
      3.22 Transactions
      with Affiliates.
      Except
      as set forth in Schedule
      3.22
      hereto,
      for so long as the Note is outstanding, the Company shall not, and shall not
      permit any Guarantor to, engage in any transactions with any officer, director,
      employee or any Affiliate of the Company, including any contract, agreement
      or
      other arrangement providing for the furnishing of services to or by, providing
      for rental of real or personal property to or from, or otherwise requiring
      payments to or from any officer, director or such employee or, to the knowledge
      of the Company, any entity in which any officer, director, or any such employee
      has a
      substantial interest or is an officer, director, trustee or partner, in each
      case in excess of $100,000, other than (i) for payment of reasonable salary
      for
      services actually rendered, as approved by the Board of Directors of the Company
      as fair in all respects to the Company, and (ii) reimbursement for expenses
      incurred on behalf of the Company.

     

    Section
      3.23 Merger;
      Sale of Assets.
      Except
      for any transaction involving only the assets of China Gold - BV, China Gold
      -
      HK, Wits-China and/or any other China Subsidiary, such exclusion to apply only
      to the extent of such assets, for so long as the Note is outstanding the Company
      shall not, and shall not permit any Guarantor to, (i) merge or consolidate
      or
      sell or dispose of all its assets or any substantial portion thereof or (ii)
      in
      any way or manner alter its organizational structure or effect a change of
      entity. For so long as the Note is outstanding, the Company shall not, and
      shall
      not permit any Guarantor to, transfer any material assets to any Subsidiary
      that
      is not a guarantor of the Company’s obligations under the Note without the
      Purchaser’s prior written consent.

     

    Section
      3.24 Participation
      Rights.
      For so
      long as the Note remains outstanding, the Company covenants and agrees to
      promptly notify (in no event later than five (5) days after making or receiving
      an applicable offer) in writing (a “Rights
      Notice”)
      the
      Purchaser of the terms and conditions of any proposed offer or sale to, or
      exchange with (or other type of distribution to) any third party (a
“New
      Financing”),
      of
      Common Stock or any securities convertible, exercisable or exchangeable into
      Common Stock, including convertible debt securities (collectively, the
“Financing
      Securities”).
      The
      Rights Notice shall describe, in reasonable detail, the proposed New Financing,
      the names and investment amounts of all investors participating in the New
      Financing, the proposed closing date of the New Financing, which shall be within
      sixty (60) calendar days from the date of the Rights Notice, and all of the
      terms and conditions thereof and proposed definitive documentation to be entered
      into in connection therewith. The Rights Notice shall provide the Purchaser
      an
      option (the “Rights
      Option”)
      during
      the five (5) business days following delivery of the Rights Notice (the
“Option
      Period”)
      to
      inform the Company whether the Purchaser will purchase securities in such New
      Financing on the same, absolute terms and conditions as contemplated by such
      New
      Financing. Delivery of any Rights Notice constitutes a representation and
      warranty by the Company that there are no other material terms and conditions,
      arrangements, agreements or otherwise except for those disclosed in the Rights
      Notice, to provide additional compensation to any party participating in any
      proposed New Financing, including, but not limited to, additional compensation
      based on changes in the Purchase Price or any type of reset or adjustment of
      a
      purchase or conversion price or to issue additional securities at any time
      after
      the closing date of a New Financing. If the Company does not receive notice
      of
      exercise of the Rights Option from the Purchaser within the Option Period,
      the
      Company shall have the right to close the New Financing on the scheduled closing
      date with a third party; provided that all of the material terms and conditions
      of the closing are substantially the same as those provided to the Purchasers
      in
      the Rights Notice. If the closing of the proposed New Financing does not occur
      on that date, any closing of the contemplated New Financing or any other New
      Financing shall be subject to all of the provisions of this Section 3.24,
      including, without limitation, the delivery of a new Rights Notice. The
      provisions of this Section 3.24 shall not apply to issuances of securities
      in a
      Exempt Issuance (as defined in the Notes). The Company shall be deemed to have,
      on the date hereof, delivered to the Purchaser a Rights Notice with respect
      to
      the New Financings described on Schedule
      3.21
      hereto
      and the Purchaser has notified the Company that it has elected not to
      participate in such New Financings.

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    Section
      3.25 Corporate
      Existence.
      The
      Company shall, and shall cause each of the Guarantors to, maintain in full
      force
      and effect its corporate existence, rights and franchises and all licenses
      and
      other rights to use property owned or possessed by it and reasonably deemed
      to
      be necessary to the conduct of its business.

     

    Section
      3.26 Investment
      Company Act.
      The
      Company shall conduct its businesses in a manner so that it will not become
      subject to the Investment Company Act of 1940, as amended.

    

    ARTICLE
      IV

    

    CONDITIONS

    Section
      4.1 Conditions
      Precedent to the Obligation of the Company to Close and to Sell the
      Securities.
      The
      obligation hereunder of the Company to close and issue and sell the Securities
      to the Purchaser at the Closing is subject to the satisfaction or waiver, at
      or
      before the Closing of the conditions set forth below. These conditions are
      for
      the Company’s sole benefit and may be waived by the Company at any time in its
      sole discretion.

     

    (a) Accuracy
      of the Purchaser’s Representations and Warranties.
      The
      representations and warranties of the Purchaser shall be true and correct in
      all
      material respects as of the date when made and as of the Closing Date as though
      made at that time, except for representations and warranties that are expressly
      made as of a particular date, which shall be true and correct in all material
      respects as of such date.

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    (b) Performance
      by the Purchaser.
      The
      Purchaser shall have performed, satisfied and complied in all material respects
      with all covenants, agreements and conditions required by this Agreement to
      be
      performed, satisfied or complied with by the Purchaser at or prior to the
      Closing Date.

     

    (c) No
      Injunction.
      No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction which prohibits the consummation of any
      of
      the transactions contemplated by this Agreement.

     

    (d) Delivery
      of Purchase Price.
      The
      Purchase Price for the Note and Warrant shall have been delivered to the Company
      on the Closing Date.

     

    (e) Delivery
      of Transaction Documents.
      The
      Transaction Documents shall have been duly executed and delivered by the
      Purchaser to the Company.

     

    (f) Lock-Up
      Agreement.
      The
      Purchaser shall have executed and delivered the Lock-Up Agreement attached
      hereto as Exhibit G to the Company.

     

    Section
      4.2 Conditions
      Precedent to the Obligation of the Purchaser to Close and to Purchase the
      Securities.
      The
      obligation hereunder of the Purchaser to purchase the Securities and consummate
      the transactions contemplated by this Agreement is subject to the satisfaction
      or waiver, at or before the Closing, of each of the conditions set forth below.
      These conditions are for the Purchaser’s sole benefit and may be waived by the
      Purchaser at any time in its sole discretion.

     

    (a) Accuracy
      of the Company’s Representations and Warranties.
      Each of
      the representations and warranties of the Company in this Agreement and the
      other Transaction Documents shall be true and correct in all material respects
      as of the Closing Date, except for representations and warranties that speak
      as
      of a particular date, which shall be true and correct in all material respects
      as of such date.

     

    (b) Performance
      by the Company.
      The
      Company shall have performed, satisfied and complied in all material respects
      with all covenants, agreements and conditions required by this Agreement to
      be
      performed, satisfied or complied with by the Company at or prior to the Closing
      Date.

     

    (c) No
      Suspension, Etc.
      Trading
      in the Common Stock shall not have been suspended by the Commission or the
      OTC
      Bulletin Board, and, at any time prior to the Closing Date, trading in
      securities generally as reported by Bloomberg Financial Markets (“Bloomberg”)
      shall
      not have been suspended or limited, or minimum prices shall not have been
      established on securities whose trades are reported by Bloomberg, or on the
      New
      York Stock Exchange, nor shall a banking moratorium have been declared either
      by
      the United States or New York State authorities,
      nor
      shall there have occurred any material outbreak or escalation of hostilities
      or
      other national or international calamity or crisis of such magnitude in its
      effect on, or any material adverse change in any financial market which, in
      each
      case, in the judgment of the Purchaser, makes it impracticable or inadvisable
      to
      purchase the Securities.

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    (d) No
      Injunction.
      No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction which prohibits the consummation of any
      of
      the transactions contemplated by this Agreement.

     

    (e) No
      Proceedings or Litigation.
      No
      action, suit or proceeding before any arbitrator or any governmental authority
      shall have been commenced, and no investigation by any governmental authority
      shall have been threatened, against the Company or any Guarantor, or any of
      the
      officers, directors or affiliates of the Company or any Guarantor seeking to
      restrain, prevent or change the transactions contemplated by this Agreement,
      or
      seeking damages in connection with such transactions.

     

    (f) Opinions
      of Counsel.
      The
      Purchaser shall have received an opinion of counsel to the Company, dated the
      date of the Closing, substantially in the form of Exhibit
      H
      hereto,
      with such exceptions and limitations as shall be acceptable the Purchaser and
      counsel to the Purchaser. The Purchaser shall have received an opinion of
      counsel to the Company, dated the date of the Closing, addressing the
      availability of Rule 144 for the resale of Common Stock issuable upon conversion
      of the Merit Warrants, in form and substance satisfactory to the Purchaser
      and
      counsel to the Purchaser. 

     

    (g) Note
      and Warrant.
      At or
      prior to the Closing, the Company shall have delivered to the Purchaser the
      Note
      and the Warrant. 

     

    (h) Secretary’s
      Certificate.
      The
      Company shall have delivered to the Purchaser a secretary’s certificate, dated
      as of the Closing Date, as to (i) the resolutions adopted by the Board of
      Directors approving the transactions contemplated hereby, (ii) the Articles,
      (iii) the Bylaws, each as in effect at the Closing, and (iv) the authority
      and
      incumbency of the officers of the Company executing the Transaction Documents
      and any other documents required to be executed or delivered in connection
      therewith.

     

    (i) Officer’s
      Certificate.
      On the
      Closing Date, the Company shall have delivered to the Purchaser a certificate
      signed by an executive officer on behalf of the Company, dated as of the Closing
      Date, confirming the accuracy of the Company’s representations, warranties and
      covenants as of such Closing Date and confirming the compliance by the Company
      with the conditions precedent set forth in paragraphs (a)-(e) and (k) of this
      Section 4.2 as of the Closing Date (provided that, with respect to the matters
      in paragraphs (d) and (e) of this Section 4.2, such confirmation shall be based
      on the knowledge of the executive officer after due inquiry).

     

    (j) Guaranty.
      As of
      the Closing Date, the Guarantors shall have executed and delivered the Guaranty
      to the Purchaser.

     

    (k) Material
      Adverse Effect.
      No
      Material Adverse Effect shall have occurred.

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    (l) Transfer
      Agent Instructions.
      The
      Irrevocable Transfer Agent Instructions, in the form of Exhibit
      F
      attached
      hereto, shall have been delivered to and executed by the Company’s transfer
      agent. 

     

    (m) UCC
      Financing Statements; Consents.
      The
      Company and the Guarantors shall have executed and delivered the Security
      Agreement and authorized the filing of all UCC financing statements in form
      and
      substance satisfactory to the Purchaser at the appropriate offices to create
      a
      valid and perfected security interest in the Collateral (as defined in the
      Security Agreement), which filings are to be made promptly following Closing.
      The Company shall have provided evidence of the consent of China Gold to the
      transactions contemplated hereby and in the other Transaction Documents.

     

    (n) Merit
      Warrants.
      The
      Company shall have effected the transfer of the Common Stock Purchase Warrants,
      dated July 26, 2007, exercisable for an aggregate of 5,100,000 shares of Common
      Stock (the “Merit
      Warrants”)
      from
      MHG Consultants LLC to the Purchaser, and shall have amended the Monthly Fee
      Warrant to provide for immediate exercisability upon Closing hereunder. The
      Consulting Agreement between MHG Consultants LLC and the Company shall have
      been
      terminated. 

    

    ARTICLE
      V

    

    CERTIFICATE
      LEGEND 

    Section
      5.1 Legend.
      Each
      certificate representing the Securities shall be stamped or otherwise imprinted
      with a legend substantially in the following form (in addition to any legend
      required by applicable state securities or “blue sky” laws):

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)
      OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
      DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE
      STATE SECURITIES LAWS OR WITS BASIN PRECIOUS MINERALS INC. SHALL HAVE RECEIVED
      AN OPINION OF COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES
      ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
      REQUIRED.

     

    The
      Company agrees to issue or reissue certificates representing any of the
      Conversion Shares and the Warrant Shares, without the legend set forth above
      if
      at such time, prior to making any transfer of any such Conversion Shares or
      Warrant Shares, such holder thereof shall give written notice to the Company
      describing the manner and terms of such transfer and removal as the Company
      may
      reasonably request, and (x) such Conversion Shares and/or Warrant Shares have
      been registered for sale under the Securities Act and the holder is selling
      such
      shares and is complying with its prospectus delivery requirement under the
      Securities Act, (y) the holder is selling such Conversion Shares and/or Warrant
      Shares in compliance with the provisions of Rule 144 or (z) the provisions
      of
      paragraph (k) of Rule 144 (or its successor provisions, including any provision
      that permits unlimited resales after the relevant holding periods set forth
      in
      Rule 144) apply to such Shares. Whenever a certificate representing the
      Conversion Shares or Warrant Shares is required to be issued to the Purchaser
      without a legend, in lieu of delivering physical certificates representing
      the
      Conversion Shares or Warrant Shares, provided the Company's transfer agent
      is
      participating in the Depository Trust Company ("DTC") Fast Automated Securities
      Transfer program, the Company shall use its reasonable best efforts to cause
      its
      transfer agent to electronically transmit the Conversion Shares or Warrant
      Shares to the Purchaser by crediting the account of the Purchaser's Prime Broker
      with DTC through its Deposit Withdrawal Agent Commission (“DWAC”)
      system.

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    ARTICLE
      VI

     

    INDEMNIFICATION

     

    Section
      6.1 General
      Indemnity.
      The
      Company agrees to indemnify and hold harmless the Purchaser (and its directors,
      officers, affiliates, agents, successors and assigns) from and against any
      and
      all losses, liabilities, deficiencies, costs, damages and expenses (including,
      without limitation, reasonable attorneys’ fees, charges and disbursements)
      incurred by the Purchaser as a result of any inaccuracy in or breach of the
      representations, warranties or covenants made by the Company herein. 

     

    Section
      6.2 Indemnification
      Procedure.
      Any
      party entitled to indemnification under this Article VI (an “indemnified party”)
      will give written notice to the indemnifying party of any matter giving rise
      to
      a claim for indemnification; provided, that the failure of any party entitled
      to
      indemnification hereunder to give notice as provided herein shall not relieve
      the indemnifying party of its obligations under this Article VI except to the
      extent that the indemnifying party is actually prejudiced by such failure to
      give notice. In case any such action, proceeding or claim is brought against
      an
      indemnified party in respect of which indemnification is sought hereunder,
      the
      indemnifying party shall be entitled to participate in and, unless in the
      reasonable judgment of the indemnifying party a conflict of interest between
      it
      and the indemnified party exists with respect to such action, proceeding or
      claim (in which case the indemnifying party shall be responsible for the
      reasonable fees and expenses of one separate counsel for the indemnified
      parties), to assume the defense thereof with counsel reasonably satisfactory
      to
      the indemnified party. In the event that the indemnifying party advises an
      indemnified party that it will contest such a claim for indemnification
      hereunder, or fails, within thirty (30) days of receipt of any indemnification
      notice to notify, in writing, such person of its election to defend, settle
      or
      compromise, at its sole cost and expense, any action, proceeding or claim (or
      discontinues its defense at any time after it commences such defense), then
      the
      indemnified party may, at its option, defend, settle or otherwise compromise
      or
      pay such action or claim. In any event, unless and until the indemnifying party
      elects in writing to assume and does so assume the defense of any such claim,
      proceeding or action, the indemnified party’s costs and expenses arising out of
      the defense, settlement or compromise of any such action, claim or proceeding
      shall be losses subject to indemnification hereunder. The indemnified party
      shall cooperate fully with the indemnifying party in connection with any
      negotiation or defense of any such action or claim by the indemnifying party
      and
      shall furnish to the indemnifying party all information reasonably available
      to
      the indemnified party which relates to such action or claim. The indemnifying
      party shall keep the indemnified party fully apprised at all times as to the
      status of the defense or any settlement negotiations with respect thereto.
      If
      the indemnifying party elects to defend any such action or claim, then the
      indemnified party shall be entitled to participate in such defense with counsel
      of its choice at its sole cost and expense. The indemnifying party shall not
      be
      liable for any settlement of any action, claim or proceeding effected without
      its prior written consent. Notwithstanding anything in this Article VI to the
      contrary, the indemnifying party shall not, without the indemnified party’s
      prior written consent, settle or compromise any claim or consent to entry of
      any
      judgment in respect thereof which imposes any future obligation on the
      indemnified party or which does not include, as an unconditional term thereof,
      the giving by the claimant or the plaintiff to the indemnified party of a
      release from all liability in respect of such claim. The indemnification
      obligations to defend the indemnified party required by this Article VI shall
      be
      made by periodic payments of the amount thereof during the course of
      investigation or defense, as and when bills are received or expense, loss,
      damage or liability is incurred, so long as the indemnified party shall refund
      such moneys if it is ultimately determined by a court of competent jurisdiction
      that such party was not entitled to indemnification. The indemnity agreements
      contained herein shall be in addition to (a) any cause of action or similar
      rights of the indemnified party against the indemnifying party or others, and
      (b) any liabilities the indemnifying party may be subject to pursuant to the
      law. 

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    ARTICLE
      VII

    

    MISCELLANEOUS

    Section
      7.1 Fees
      and Expenses.
      Each
      party shall pay the fees and expenses of its advisors, counsel, accountants
      and
      other experts, if any, and all other expenses, incurred by such party incident
      to the negotiation, preparation, execution, delivery and performance of this
      Agreement; provided,
      however,
      that
      the Company shall pay all actual attorneys’ fees and expenses (including
      disbursements and out-of-pocket expenses) incurred by the Purchaser in
      connection with the preparation, negotiation, execution and delivery of the
      Transaction Documents and the transactions contemplated thereunder, which
      payment shall be made at Closing and shall not exceed $20,000 (which payment
      may
      be withheld from the amount delivered to the Company by the Purchaser on
      Closing). In addition, the Company shall pay all reasonable fees and expenses
      incurred by the Purchaser in connection with the enforcement of this Agreement
      or any of the other Transaction Documents, including, without limitation, all
      reasonable attorneys’ fees and expenses. 

     

    Section
      7.2 Specific
      Performance; Consent to Jurisdiction; Venue. 

     

    (a) The
      Company and the Purchaser acknowledge and agree that irreparable damage would
      occur in the event that any of the provisions of this Agreement or the other
      Transaction Documents were not performed in accordance with their specific
      terms
      or were otherwise breached. It is accordingly agreed that the parties shall
      be
      entitled to an injunction or injunctions to prevent or cure breaches of the
      provisions of this Agreement or the other Transaction Documents and to enforce
      specifically the terms and provisions hereof or thereof, this being in addition
      to any other remedy to which any of them may be entitled by law or
      equity.

     

    (b) The
      parties agree that venue for any dispute arising under this Agreement will
      lie
      exclusively in the state or federal courts located in New York County, New
      York,
      and the parties irrevocably waive any right to raise forum
      non conveniens
      or any
      other argument that New York is not the proper venue. The parties irrevocably
      consent to personal jurisdiction in the state and federal courts of the state
      of
      New York. The Company and the Purchaser consent to process being served in
      any
      such suit, action or proceeding by mailing a copy thereof to such party at
      the
      address in effect for notices to it under this Agreement and agrees that such
      service shall constitute good and sufficient service of process and notice
      thereof. Nothing in this Section 7.2 shall affect or limit any right to serve
      process in any other manner permitted by law. The Company and the Purchaser
      hereby agree that the prevailing party in any suit, action or proceeding arising
      out of or relating to the Securities, this Agreement or the other Transaction
      Documents, shall be entitled to reimbursement for reasonable legal fees from
      the
      non-prevailing party. The parties hereby waive all rights to a trial by jury.
      

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    Section
      7.3 Entire
      Agreement; Amendment.
      This
      Agreement and the Transaction Documents contain the entire understanding and
      agreement of the parties with respect to the matters covered hereby and, except
      as specifically set forth herein or in the other Transaction Documents, neither
      the Company nor the Purchaser make any representation, warranty, covenant or
      undertaking with respect to such matters, and they supersede all prior
      understandings and agreements with respect to said subject matter, all of which
      are merged herein. No provision of this Agreement may be waived or amended
      other
      than by a written instrument signed by the Company and the Purchaser. Any
      amendment or waiver effected in accordance with this Section 7.3 shall be
      binding upon the Purchaser (and its assigns) and the Company. 

     

    Section
      7.4 Notices.
      Any
      notice, demand, request, waiver or other communication required or permitted
      to
      be given hereunder shall be in writing and shall be effective (a) upon hand
      delivery by telecopy or facsimile at the address or number designated below
      (if
      delivered on a business day during normal business hours where such notice
      is to
      be received), or the first business day following such delivery (if delivered
      other than on a business day during normal business hours where such notice
      is
      to be received) or (b) on the second business day following the date of mailing
      by express courier service, fully prepaid, addressed to such address, or upon
      actual receipt of such mailing, whichever shall first occur. The addresses
      for
      such communications shall be:

     

    

      
        	
                If
                  to the Company:

              	
                Wits
                  Basin Precious Minerals Inc. 

              
	 	
                80
                  South 8th Street, Suite 900

              
	 	
                Minneapolis,
                  Minnesota

              
	 	
                Fax:
                  (612) 395-5276

              
	 	
                Attention:
                  Mark D. Dacko

              
	 	 
	
                with
                  copies (which copies 

              	 
	
                shall
                  not constitute notice 

              	 
	
                to
                  the Company) to:

              	
                Maslon
                  Edelman Borman & Brand, LLP

              
	 	
                3300
                  Wells Fargo Center

              
	 	
                90
                  South Seventh Street

              
	 	
                Minneapolis,
                  MN 55402-4140

              
	 	
                Fax:
                  (612) 642-8358

              
	 	
                Attention:
                  William M. Mower

              

      

       

      
        
           

        

        
          26

          
            

          

        

        
           

        

      

       

      
        	
                If
                  to the Purchaser:

              	
                Platinum
                  Long Term Growth V, LLC

              
	 	
                152
                  West 57th
                  Street, 54th
                  Floor

              
	 	
                New
                  York, NY 10019

              
	 	
                Fax:
                  ________________

              
	 	
                Attention:
                  Mark Mueller

              
	 	 
	
                with
                  copies (which copies 

              	 
	
                shall
                  not constitute notice 

              	 
	
                to
                  the Company) to:

              	
                Burak
                  Anderson & Melloni, PLC

              
	 	
                30
                  Main Street, PO Box 787

              
	 	
                Burlington,
                  VT 05402-0787

              
	 	
                Fax:
                  (802) 862-8176

              
	 	
                Attention:
                  Shane W. McCormack

              

      

    

    

    Any
      party
      hereto may from time to time change its address for notices by giving written
      notice of such changed address to the other party hereto.

     

    Section
      7.5 [Reserved]

     

    Section
      7.6 Headings.
      The
      article, section and subsection headings in this Agreement are for convenience
      only and shall not constitute a part of this Agreement for any other purpose
      and
      shall not be deemed to limit or affect any of the provisions
      hereof.

     

    Section
      7.7 Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and assigns. After the Closing, the assignment by a party
      to
      this Agreement of any rights hereunder shall not affect the obligations of
      such
      party under this Agreement. The Purchaser may assign the Securities and its
      rights under this Agreement and the other Transaction Documents and any other
      rights hereto and thereto, in whole or in part, without the consent of the
      Company.

     

    Section
      7.8 No
      Third Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      permitted successors and assigns and is not for the benefit of, nor may any
      provision hereof be enforced by, any other person.

     

    Section
      7.9 Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York, without giving effect to any of the conflicts
      of
      law principles which would result in the application of the substantive law
      of
      another jurisdiction. This Agreement shall not be interpreted or construed
      with
      any presumption against the party causing this Agreement to be
      drafted.

     

    Section
      7.10 Survival.
      The
      representations and warranties of the Company and the Purchaser shall survive
      the execution and delivery hereof and the Closing until the second anniversary
      of the Closing Date. The agreements and covenants set forth in Articles I,
      III,
      V, VI and VII of this Agreement shall survive the execution and delivery hereof
      and such Closing hereunder until terminated in accordance with the terms of
      such
      sections.

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

     

    Section
      7.11 Counterparts.
      This
      Agreement may be executed in any number of counterparts, all of which taken
      together shall constitute one and the same instrument and shall become effective
      when counterparts have been signed by each party and delivered to the other
      parties hereto, it being understood that all parties need not sign the same
      counterpart. 

     

    Section
      7.12 Publicity.
      The
      Company agrees that it will not disclose, and will not include in any public
      announcement, the name of the Purchaser without the consent of the Purchaser,
      which consent shall not be unreasonably withheld or delayed, or unless and
      until
      such disclosure is required by law, rule or applicable regulation, including
      without limitation any disclosure pursuant to the Registration Statement, and
      then only to the extent of such requirement. Notwithstanding the foregoing,
      the
      Purchaser consents to being identified in any filings the Company makes with
      the
      Commission to the extent required by law or the rules and regulations of the
      Commission. 

     

    Section
      7.13 Severability.
      The
      provisions of this Agreement are severable and, in the event that any court
      of
      competent jurisdiction shall determine that any one or more of the provisions
      or
      part of the provisions contained in this Agreement shall, for any reason, be
      held to be invalid, illegal or unenforceable in any respect, such invalidity,
      illegality or unenforceability shall not affect any other provision or part
      of a
      provision of this Agreement and this Agreement shall be reformed and construed
      as if such invalid or illegal or unenforceable provision, or part of such
      provision, had never been contained herein, so that such provisions would be
      valid, legal and enforceable to the maximum extent possible.

     

    Section
      7.14 Further
      Assurances.
      From
      and after the date of this Agreement, upon the request of the Purchaser or
      the
      Company, the Company and the Purchaser shall execute and deliver such
      instruments, documents and other writings as may be reasonably necessary or
      desirable to confirm and carry out and to effectuate fully the intent and
      purposes of this Agreement and the other Transaction Documents

     

    

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        28

        
          

        

      

      
         

      

    

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

     

     

    
      
        	
                WITS
                  BASIN PRECIOUS MINERALS INC.

              
	 
	 
	
                By: 

              	
                /s/
                  Mark D. Dacko

              
	 	
                Name:
                  Mark D. Dacko

              
	 	
                Title:
                  Chief Financial Officer

              
	
                 

              
	
                PLATINUM
                  LONG TERM GROWTH V, LLC

              
	 
	 
	
                By: 

              	
                /s/
                  Mark Nordlicht

              
	 	
                Name:
                  Mark Nordlicht

              
	 	
                Title:
                  General Manager

              

      

    

    

     

    Signature
      Page

    to
      Note and Warrant Purchase Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]