Document:

Exhibit 10.4

 

 

THE SECURITIES OFFERED HEREBY HAVE
NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY SECTION 3(b) OF THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES
AND REGULATIONS PROMULGATED THEREUNDER (THE "1933 ACT)

 

 

US $100,000.00

 

 

FOCUS GOLD CORPORATION

6% CONVERTIBLE REDEEMABLE SECURED NOTE

DUE OCTOBER 25, 2012

 

 

FOR VALUE RECEIVED the
Company promises to pay to the order of the GEL Properties, LLC and its authorized successors and permitted assigns ("Holder"),
the aggregate principal face amount of One Hundred Thousand dollarsexactly(U.S. $100,000.00) on October 25, 2012 ("Maturity
Date") and to pay interest on the principal amount outstanding hereunder at the rate of 6% per annum commencing on October
25, 2011. Of the $100,000, the Company acknowledges that it has received $100,000 from the Holder, of which $5,000 was credit to
legal expenses, leaving $95,000 to be paid to the Company. Interest will be paid to the Holder in whose name this Note is registered
on the records of the Company regarding registration and transfers of this Note. The principal of, and interest on, this Note are
payable at 16192 Coastal Highway, Lewes, DE, 19958,initially, and if changed, last appearing on the records of the Company as designated
in writing by the Holder hereof from time to time. The Company will pay each interest payment and the outstanding principal due
upon this Note before or on the Maturity Date, less any amounts required by law to be deducted or withheld, to the Holder of this
Note by check or wire transfer addressed to such Holder at the last address appearing on the records of the Company. The forwarding
of such check or wire transfer shall constitute a payment of outstanding principal hereunder and shall satisfy and discharge the
liability for principal on this Note to the extent of the sum represented by such check or wire transfer. Interest shall be payable
in Common Stock (as defined below) pursuant to paragraph 4(b) herein.

 

This Note is subject to
the following additional provisions:

 

1.This Note is exchangeable for an
equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same.
No service charge will be made for such registration or transfer or exchange, except that Holder shall pay any tax or other governmental
charges payable in connection therewith.

 

2.The Company shall be entitled to
withhold from all payments any amounts required to be withheld under applicable laws.

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3.This
Note may be transferred or exchanged only in compliance with the Securities Act of 1933, as amended ("Act") and
applicable state securities laws. Any attempted transfer to a non-qualifying party shall be treated by the Company as void. Prior
to due presentment for transfer of this Note, the Company and any agent of the Company may treat the person in whose name this
Note is duly registered on the Company's records as the owner hereof for all other purposes, whether or not this Note be overdue,
and neither the Company nor any such agent shall be affected or bound by notice to the contrary. Any Holder of this Note electing
to exercise the right of conversion set forth in Section 4(a) hereof, in addition to the requirements set forth in Section 4(a),
and any prospective transferee of this Note, also is required to give the Company written confirmation that this Note is being
converted ("Notice of Conversion") in the form annexed hereto as Exhibit A. The date of receipt (including
receipt by telecopy) of such Notice of Conversion shall be the Conversion Date. 

 

4.(a)The Holder of this Note is
entitled, at its option, at any time after April 25, 2012,to convert all or any amount of the principal face amount of this Note
then outstanding into shares of the Company's common stock (the "Common Stock") at a conversion price ("Conversion
Price") for each share of Common Stock equal to 70% of the lowest closing bid price of the Common Stock as reported on
the National Quotations Bureau Pink Sheets on which the Company’s shares are traded or any exchange upon which the Common
Stock may be traded in the future ("Exchange") with a floor of $0.0001 per share, for any of the five trading
days including the day upon which a Notice of Conversion is received by the Company, provided such Notice of Conversion is delivered
by fax or other electronic method of communication to the Company between the hours of 4 P.M. Eastern Standard or Daylight Savings
Time and 8 P.M. Eastern Standard or Daylight Savings Time, or the trading day on which a Notice of Conversion is received by the
Company provided such Notice of Conversion is delivered by fax or other electronic communication to the Company between the hours
of 4 P.M. Eastern Standard or Daylight Savings Time and 8 P.M. Eastern Standard or Daylight Savings Time The Conversion Price may
be adjusted downward if, within 3 business days of the transmittal of the Notice of Conversion to the Company, the Common Stock
has a closing bid which is 5% or lower than that set forth in the Notice of Conversion. Such conversion shall be effectuated by
the Company delivering the shares of Common Stock to the Holder within 3 business days of receipt by the Company of the Notice
of Conversion. Once the Holder has received such shares of Common Stock, the Holder shall surrender this Note to the Company, executed
by the Holder evidencing such Holder's intention to convert this Note or a specified portion hereof, and accompanied by proper
assignment hereof in blank. Accrued but unpaid interest shall be subject to conversion. No fractional shares or scrip representing
fractions of shares will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share.

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(i)Holder’s Restriction
on Conversion. The Company shall not effect any conversion of this Note, and a Holder shall not have the right to convert any
portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable Notice of Conversion,
the Holder (together with the Holder’s Affiliates, and any other person or entity acting as a group together with the Holder
or any of the Holder’s Affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).
For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates
shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination
is being made, but shall exclude the number of shares of Common Stock which are issuable upon (A) conversion of the remaining,
unconverted principal amount of this Note beneficially owned by the Holder or any of its Affiliates and (B) exercise or conversion
of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise
analogous to the limitation contained herein (including, without limitation, any other Notes or the Warrants) beneficially owned
by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 4(c), beneficial
ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
To the extent that the limitation contained in this Section 4(c) applies, the determination of whether this Note is convertible
(in relation to other securities owned by the Holder together with any Affiliates) and of which principal amount of this Note is
convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to be the
Holder’s determination of whether this Note may be converted (in relation to other securities owned by the Holder together
with any Affiliates) and which principal amount of this Note is convertible, in each case subject to the Beneficial Ownership Limitation.
To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers a Notice
of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company shall
have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status
as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder.For purposes of this Section 4(c), in determining the number of outstanding shares of Common Stock, the Holder may rely
on the number of outstanding shares of Common Stock as stated in the most recent of the following: (A) the Company’s most
recent periodic or annual report, as the case may be; (B) a more recent public announcement by the Company; or (C) a more recent
notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding. Upon
the written or oral request of a Holder, the Company shall within one Trading Day confirm orally orin writing to the Holder the
number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined
after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder or its Affiliates
since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation”
shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares
of Common Stock issuable upon conversion of this Note held by the Holder. The Holder, upon not less than 61 days’ prior notice
to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 4(c), provided that the
Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after
giving effect to the issuance of shares of Common Stock upon conversion of this Note held by the Holder and the Beneficial Ownership
Limitation provisions of this Section 4(c) shall continue to apply. Any such increase or decrease will not be effective until the
61st day after such notice is delivered to the Company. The Beneficial Ownership Limitation provisions of this paragraph
shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4(c) to correct
this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation
contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations
contained in this paragraph shall apply to a successor holder of this Note.

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(b)Interest on any unpaid principal
balance of this Note shall be paid at the rate of 6% per annum. Interest may be paid by the Company in Common Stock ("Interest
Shares"). The Holder may, at any time, send in a Notice of Conversion to the Company for Interest Shares based on the formula
provided in Section 4(a) above. The dollar amount converted into Interest Shares shall be all or a portion of the accrued interest
calculated on the unpaid principal balance of this Note to the date of such notice.

 

(c)At any time, the Company shall have
the option to redeem this Note and pay to the Holder 150% of the unpaid principal amount of this Note, in full. The Company shall
give the Holder 5 day’s written notice and the Holder during such 5 days, provided the fifth day is after April 25, 2012,
shall have the option to convert this Note or any part thereof into shares of Common Stock at the Conversion Price set forth in
paragraph 4(a) of this Note.

 

(d) Upon (i) a transfer of all or substantially
all of the assets of the Company to any person in a single transaction or series of related transactions, (ii) a reclassification,
capital reorganization or other change or exchange of outstanding shares of the Common Stock, or (iii) any consolidation or merger
of the Company with or into another person or entity in which the Company is not the surviving entity (other than a merger which
is effected solely to change the jurisdiction of incorporation of the Company and results in a reclassification, conversion or
exchange of outstanding shares of Common Stock solely into shares of Common Stock) (each of items (i), (ii) and (iii) being referred
to as a "Sale Event"), then, in each case, the Company shall, upon request of the Holder, redeem this Note in cash for
150% of the principal amount, plus accrued but unpaid interest through the date of redemption, or at the election of the Holder,
such Holder may convert the unpaid principal amount of this Note (together with the amount of accrued but unpaid interest) into
shares of Common Stock immediately prior to such Sale Event at the Conversion Price. Provided that a sale or transfer of the Company’s
wholly-owned subsidiaries to a Company quoted on the Toronto Stock Exchange shall not trigger Holder’s right to redemption
set forth in this paragraph, provided that the Company owns in excess of 50% of such Toronto Stock Exchange based company at the
time of such sale or transfer.

 

(e) In case of any Sale Event in connection
with which this Note is not redeemed or converted, the Company shall cause effective provision to be made so that the Holder of
this Note shall have the right thereafter, by converting this Note, to purchase or convert this Note into the kind and number of
shares of stock or other securities or property (including cash) receivable upon such reclassification, capital reorganization
or other change, consolidation or merger by a holder of the number of shares of Common Stock that could have been purchased upon
exercise of the Note and at the same Conversion Price, as defined in this Note, immediately prior to such Sale Event. The foregoing
provisions shall similarly apply to successive Sale Events. If the consideration received by the holders of Common Stock is other
than cash, the value shall be as determined by the Board of Directors of the Company or successor person or entity acting in good
faith.

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5.No provision of this Note shall alter
or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, and interest on, this Note
at the time, place, and rate, and in the form, herein prescribed.

 

6.The Company hereby expressly waives
demand and presentment for payment, notice of non-payment, protest, notice of protest, notice of dishonor, notice of acceleration
or intent to accelerate, and diligence in taking any action to collect amounts called for hereunder and shall be directly and primarily
liable for the payment of all sums owing and to be owing hereto.

 

7.The Company agrees to pay all costs
and expenses, including reasonable attorneys' fees and expenses, which may be incurred by the Holder in collecting any amount due
under this Note.

 

8.If one or more of the following described
"Events of Default" shall occur:

 

(a)The Company shall default in the
payment of principal or interest on this Note or any other note issued to the Holder by the Company; or

 

(b)Any of the representations or warranties
made by the Company herein or in any certificate or financial or other written statements heretofore or hereafter furnished by
or on behalf of the Company in connection with the execution and delivery of this Note shall be false or misleading in any respect;
or

 

(c)The Company shall fail to perform
or observe, in any respect, any covenant, term, provision, condition, agreement or obligation of the Company under this Note; or

 

(d)The Company shall (1) become insolvent;
(2) admit in writing its inability to pay its debts generally as they mature; (3) make an assignment for the benefit of creditors
or commence proceedings for its dissolution; (4) apply for or consent to the appointment of a trustee, liquidator or receiver for
its or for a substantial part of its property or business; (5) file a petition for bankruptcy relief, consent to the filing of
such petition or have filed against it an involuntary petition for bankruptcy relief, all under federal or state laws as applicable;
or

 

(e)A trustee, liquidator or receiver
shall be appointed for the Company or for a substantial part of its property or business without its consent and shall not be discharged
within thirty (30) days after such appointment; or

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(f)Any governmental agency or any court
of competent jurisdiction at the instance of any governmental agency shall assume custody or control of the whole or any substantial
portion of the properties or assets of the Company; or

 

(g)One or more money judgments, writs
or warrants of attachment, or similar process, in excess of ten thousand dollars ($10,000) in the aggregate, shall be entered or
filed against the Company or any of its properties or other assets and shall remain unpaid, unvacated, unbonded or unstayed for
a period of fifteen (15) days or in any event later than five (5) days prior to the date of any proposed sale thereunder; or

 

(h)Bankruptcy, reorganization, insolvency
or liquidation proceedings, or other proceedings for relief under any bankruptcy law or any law for the relief of debtors shall
be instituted voluntarily by or involuntarily against the Company; or

 

(i)The Company shall have its Common
Stock delisted from an exchange (including the OTCBB exchange) or, if the Common Stock trades on an exchange, then trading in the
Common Stock shall be suspended for more than 10 consecutive days;

 

(j)If a majority of the members of
the Board of Directors of the Company on the date hereof are no longer serving as members of the Board; or

 

(j)The Company shall not deliver to
the Holder the Common Stock pursuant to paragraph 4 herein without restrictive legend within 5 business days of its receipt of
a Notice of Conversion.

 

Then, or at any time thereafter, unless cured,
and in each and every such case, unless such Event of Default shall have been waived in writing by the Holder (which waiver shall
not be deemed to be a waiver of any subsequent default) at the option of the Holder and in the Holder's sole discretion, the Holder
may consider this Note immediately due and payable, without presentment, demand, protest or (further) notice of any kind (other
than notice of acceleration), all of which are hereby expressly waived, anything herein or in any note or other instruments contained
to the contrary notwithstanding, and the Holder may immediately, and without expiration of any period of grace, enforce any and
all of the Holder's rights and remedies provided herein or any other rights or remedies afforded by law. Upon an Event of Default,
interest shall be accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted by current law,
then at the highest rate of interest permitted by law.

 

If the Holder shall commence an action or proceeding
to enforce any provisions of this Note, including without limitation engaging an attorney, then the Holder shall be reimbursed
by the Company for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation and prosecution
of such action or proceeding.

 

9.In case any provision of this Note
is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall
be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability
of the remaining provisions of this Note will not in any way be affected or impaired thereby.

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10.Neither this Note nor any term hereof
may be amended, waived, discharged or terminated other than by a written instrument signed by the Company and the Holder.

 

11.The Company represents that it is
not a “shell” issuer. The Company left shell status on October 27, 2011The Company will instruct its counsel to either
(i) write a 144- 3(a)(9) opinion to allow for salability of the conversion shares or (ii) accept such opinion from Holder’s
counsel.

 

12.The Company will provide New Venture
Attorneys, P.C., counsel for the Holder six (6) signed and undated resolutions for the issuance of 400,000 shares each and three
(3) signed and undated resolutions of 200,000 shares each for a total of 3,000,000 shares of the Common Stock of Company. New Venture
Attorneys shall hold these resolutions and will not submit a resolution until (i) such issuance, along with the number of shares
currently held by the Holder would not exceed 4.99% of the outstanding shares and (ii) the Holder notifies the Company that it
desires to have the Company issue the shares to use as a collateral reserve. The Holder will send the Company a notice of conversion
upon every conversion from this collateral reserve conversion showing the amount of principal and interest paid down and the number
of shares converted as a result. Any shares remaining after the amounts due under this Note has been fully converted will be returned
to the Company. The Holder may also use these resolutions to convert any other convertible debt instruments that are outstanding
with the Company. The Holder may need to send the Company transfer agent and its broker an initial conversion notice for the total
amount of the shares being escrowed so they may be deposited this initial conversion notice shall have no effect upon the actual
shares being converted.

 

13.This Note shall be governed by and
construed in accordance with the laws of New York applicable to contracts made and wholly to be performed within the State of New
York and shall be binding upon the successors and assigns of each party hereto. The Holder and the Company hereby mutually waive
trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York. This Agreement may be executed
in counterparts, and the facsimile transmission of an executed counterpart to this Agreement shall be effective as an original.

 

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

 

 

Dated:      Oct 21, 2011          

 

	 	FOCUS GOLD CORPORATION
	 	 
	 	By: /s/Grant R. White _________________
	 	 
	 	Title: President & CEO _________________

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EXHIBIT A

 

 

NOTICE OF CONVERSION

 

(To be Executed by the Registered
Holder in order to Convert the Note)

 

The undersigned hereby
irrevocably elects to convert $___________ of the above Note into _________ Shares of Common Stock of Focus Gold Corporation(“Shares”)
according to the conditions set forth in such Note, as of the date written below.

 

If Shares are to be issued
in the name of a person other than the undersigned, the undersigned will pay all transfer and other taxes and charges payable with
respect thereto.

 

Date of Conversion:___________________________________________

Applicable Conversion Price: ___________________________________

Signature: ___________________________________________________

[Print
Name of Holder and Title of Signer]

Address: ____________________________________________________

____________________________________

 

SSN or EIN: _________________________

Shares are to be registered in the following name: ____________________

 

Name: ________________________________________

Address: ______________________________________

Tel: __________________________________________

Fax: ________________________

SSN or EIN: ______________________

 

Shares are to be sent or delivered to the following account:

 

Account Name: _____________________________

Address: ____________________________Exhibit 10.5

 

 

 

 

 

Warrant No.

Initially Issued October 25, 2011

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES.
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED
UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE
THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE
SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER
OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

 

STOCK PURCHASE WARRANT

To Purchase Common Stock of

FOCUS GOLD CORPORATION

 

 

For value received, Focus Gold Corporation,
a Nevada corporation (the "Company") hereby grants to GEL Properties, LLC(the "Investor"), and his assigns,
the right to purchase from the Company a 666,666shares of Common Stock (the "Shares"). The exercise price per Share shall
be $0.15 per Share (the “Purchase Price”).

The amount and kind of
securities purchasable under this Warrant, and the Purchase Price, are subject to adjustment as provided below.

 

1.Title of Warrant.
Prior to the expiration hereof and subject to compliance with applicable laws, this Warrant and all rights hereunder are transferable,
in whole or in part, at the office or agency of the Company referred to in Section 2(a) below, by the registered holder hereof
(the "Holder") in person or by duly authorized attorney, upon surrender of this Warrant and the Assignment Form attached
hereto properly endorsed.

 

2.Exercise of Warrant.

 

(a)The purchase
rights represented by this Warrant are exercisable by the Holder, in whole or in part, at any time before the close of
business on October 5, 2014 by the surrender of this Warrant and the Notice of Exercise attached hereto duly executed at the
office of the Company (or such other office or agency of the Company as it may designate in writing to the Holder at the
address of the Holder appearing on the books of the Company), and upon payment of the Purchase Price of the shares thereby
purchased (by cash, check, or cancellation of indebtedness of the Company to the Holder, if any, at the time of exercise in
an amount equal to the purchase price of the shares thereby purchased); whereupon the Holder shall be entitled to receive a
certificate for the number of shares of Common Stock so purchased. The Company agrees that upon due exercise of this Warrant
by the Holder, the shares so purchased shall be and be deemed to be issued to the Holder as the record owner of such shares
as of the close of business on the date on which this Warrant is exercised.

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(b)In lieu of the cash
payment set forth in Section 2(a) above, the Holder shall have the right ("Conversion Right") to convert this Warrant
in whole or in part (without payment of any kind) into that number of Shares of Common Stock equal to the quotient obtained by
dividing the Net Value (as defined below) of the Shares by the Fair Market Value (as defined below) of one share of Common Stock.
As used herein, (A) the Net Value of the Shares means the aggregate Fair Market Value of the Common Stock subject to this Warrant
that is being exercised minus the aggregate purchase price of the shares being exercised; and (B) the Fair Market Value of one
share of Common means the closing price of the Company’s Common Stock on the day immediately preceding the conversion. By
way of example, if the Holder wished to exercise 100,000 shares and the aggregate exercise price of the 100,000 shares was $15,000;
and if the Fair Market Value of one shares of Common was $0.35 then the holder would be entitled to receive [$35,000-$15,000]/$0.35
=57,142 shares.

 

(c)Certificates for shares
purchased hereunder shall be delivered to the Holder within three business days after the date on which this Warrant is exercised.

 

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

 

3.No Fractional
Shares or Scrip. No fractional shares or scrip representing fractional share shall be issued upon the exercise of this Warrant.
With respect to any fraction of a share called for upon the exercise of this Warrant, an amount equal to such fraction multiplied
by the current Purchase Price at which each share may be purchased hereunder shall be paid in cash to the Holder.

 

4.Charges, Taxes
and Expenses. Issuance of certificates for shares of Common Stock upon the exercise of this Warrant shall be made without charge
to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of
which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such
name or names as may be directed by the Holder; provided however that in the event certificates for shares of Common Stock are
to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the
Assignment Form attached hereto duly executed by the Holder; and provided further that upon any transfer involved in the issuance
or delivery of any certificates for shares of Common Stock, the Company may require reimbursement for any transfer tax.

 

5.No Rights as Shareholder.
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.

 

6.Exchange and Registry
of Warrant. This Warrant is exchangeable, upon the surrender hereof by the Holder at the above-mentioned office or agency of
the Company, for a new Warrant of like tenor and dated as of such exchange. The Company shall maintain at such office or agency
a registry showing the name and address of the Holder. This Warrant may be surrendered for exchange, transfer or exercise, in accordance
with its terms, at such office or agency of the Company, and the Company shall be entitled to rely in all respects, prior to written
notice to the contrary, upon such registry.

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7.Loss, Theft, Destruction
or Mutilation of Warrant. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction
or mutilation of this Warrant, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it,
and upon reimbursement to the Company of all reasonable expenses incidental thereto, and upon surrender and cancellation of such
Warrant, if mutilated, the Company will make and deliver a new Warrant of like tenor and dated as of such cancellation, in lieu
of this Warrant.

 

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

 

9.Adjustment and
Termination.

 

(a)Early Termination
on Merger, etc. If at any time the Company proposes to (i) merge with or into any other corporation, effect a reorganization,
or sell or convey all or substantially all of its assets to any other entity in a transaction in which the shareholders of the
Company immediately before the transaction own immediately after the transaction less than a majority of the outstanding voting
securities of the surviving entity (or its parent) (a "Merger Transaction"), or (ii) effect a registered public
offering of its shares, then the Company shall give the holder of this Warrant ten (10) days notice of the proposed effective date
of the transaction and, if the Warrant has not been exercised by the effective date of the transaction, it shall terminate.

 

(b)Reclassification,
etc. If the Company at any time shall, by subdivision, combination or reclassification of securities or otherwise, change any
of the securities to which purchase rights under this Warrant exist into the same or a different number of securities of any class
or classes, the Shares of Common Stock for which this Warrant is exercisable shall thereafter be convertible into the kind and
number of Common Stock or other securities or property of the Company or otherwise to which the Holder would have been entitled
if immediately prior to such change the Holder had acquired the Common Stock for which this Warrant is exercisable. If shares of
the Company's Common Stock or other securities purchasable hereunder are subdivided or combined into a greater or smaller number
of securities, the Purchase Price under this Warrant shall be proportionately reduced in case of subdivision of shares of Common
Stock or proportionately increased in the case of combination of shares of Common Stock. No adjustment on account of cash dividends
or interest on the Shares of Common Stock interests or other securities purchasable hereunder will be made to the Purchase Price
under this Warrant.

 

(c)Notice of Adjustment.
Upon any adjustment of the securities issuable upon exercise of this Warrant, Purchase Price for the shares, and/or any increase
or decrease in the number of shares purchasable upon the exercise of this Warrant, the Company shall give written notice thereof,
by first class mail, postage prepaid, addressed to the Holder at the address of the Holder as shown on the books of the Company.

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(d)Authorized Shares.
The Company covenants that during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common
Stock or other securities purchasable hereunder a sufficient number of shares to provide for the issuance of Shares of Common Stock
or other securities upon the exercise of any purchase rights under this Warrant.

 

10.Miscellaneous.

 

(a)Issue Date.
The provisions of this Warrant shall be construed and shall be given effect in all respect as if it had been issued and delivered
by the Company on the date hereof. This Warrant shall be binding upon any successors or assigns of the Company. This Warrant shall
constitute a contract under the laws of the State of Nevada and for all purposes shall be construed in accordance with and governed
by the laws of said state.

 

(b)Restrictions.
The Holder of this Warrant, by acceptance hereof, makes the representations of an Investor under Section 3 of the Purchase
Agreement and shall confirm such representations upon any exercise of this Warrant. The Holder acknowledges that the securities
acquired upon the exercise of this Warrant may have restrictions upon its resale imposed by state and federal securities laws.

 

(c)Modification and
Waiver. This Warrant and any provisions hereof may be changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of the same is sought.

 

(d)Notices. All
notices, reports and other communications required or permitted hereunder shall be in writing and may be delivered in person, by
telecopy with written confirmation, overnight delivery service or U.S. mail, in which event it may be mailed by first-class, certified
or registered, postage prepaid, addressed to the Holder at its address as shown on the books of the Company or to the Company at
its address of record.

 

Each such notice, report
or other communication shall for all purposes under this Warrant be treated as effective or having been given when delivered if
delivered personally or, if sent by mail, at the earlier of its receipt or 72 hours after the same has been deposited in a regularly
maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid, or, if sent by telecopier with
written confirmation, at the earlier of (i) 24 hours after confirmation of transmission by the sending telecopier machine
or (ii) delivery of written confirmation.

    	4

    	 

    

 

	Dated:  October 25, 2011	 
		 FOCUS GOLD CORPORATION
	 	 
	 	By:     /s/Grant R. White
	 	 
	 	Title:     CEO

 

 

 

 

 

 

 

    	5

    	 

    
 

 

 

ASSIGNMENT FORM

 

(To assign the foregoing Warrant, execute

this form and supply the required information.

Do not use this form to purchase shares.)

 

 

FOR VALUE RECEIVED, the
undersigned hereby, sells, assigns and transfers unto:

 

_____________________________________

 

whose address is ___________________________________

(Please Print)

 

and whose Social Security or other Taxpayer
Identification Number is: _______________

 

the foregoing Warrant and all rights thereunder,
hereby constituting and appointing ______________________________________ to transfer said Warrant on the books of the Company,
will full power of substitution in the premises.

 

Dated: ______________, 20__.

 

	 	Holder's Signature:__________________________
	 	 
	 	Holder's Name:___________________________
	 	(Please Print)
	 	 
	 	Holder's Address:__________________________
	 	(Please Print)
	 	_________________________

 

 

Signature Guaranteed: ____________________________________________

 

 

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

    	6

    	 

    

NOTICE OF EXERCISE

 

TO:FOCUS GOLD CORPORATION

 

(1) The undersigned
hereby elects to purchase _____________ shares of Common Stock of the Company pursuant to the terms of the attached Warrant, and
tenders here with payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

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

 

[ ] in lawful money of the United
States; or

[ ] the cancellation of such
portion of the warrant as is necessary, in accordance with the formula set forth in subsection 2(b), to exercise this Warrant
with respect to the maximum number of shares of Common Stock purchasable pursuant to the cashless exercise procedure set
forth in subsection 2(b).

 

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

 

_______________________________________________________

 

The Warrant Units shall be delivered
to the following DWAC Account Number (if permitted and if the Company is a participant in such system) or by physical delivery
of a certificate to:

 

____________________________________________

DWAC Acct.#:______________________________

____________________________________________

____________________________________________

 

(4)The
undersigned agrees and acknowledges that the undersigned is an “accredited investor” as defined in Regulation D promulgated
under the Securities Act of 1933, as amended.

 

[SIGNATURE OF HOLDER]

 

	 	NAME OF HOLDER
	 	_________________________________________
	 	 
	 	_________________________________________
	 	Signature
	 	 
	 	_________________________________________
	Dated: _____________ ___, ______	Print Name and Title (if applicable)

 

 

    	7

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