Document:

Bridgeport Ventures Inc.: Exhibit 4.23 -  Filed by newsfilecorp.com

Exhibit 4.23

EXECUTION COPY

AGENCY AGREEMENT

December 13, 2010 
Bridgeport Ventures Inc. 
36 Toronto
Street 
Suite 1000 
Toronto, Ontario M5C 2C5

	Attention: 	Shastri Ramnath 
	  	President & CEO 

Dear Madam:

RBC Dominion Securities Inc. (the “Lead Agent”) and MGI
Securities Inc. (together with the Lead Agent, the “Agents”) understand
that Bridgeport Ventures Inc. (the “Corporation”) proposes to issue and
sell up to 15,000,000 units (the “Initial Units”) at a price of $1.00 per
Initial Unit (the “Issue Price”) for gross proceeds of up to $15,000,000.
Each Initial Unit shall consist of one common share in the capital of the
Corporation (a “Unit Share”) and one-half of one common share purchase
warrant (each whole common share purchase warrant a “Warrant”).

Each Warrant shall entitle the holder thereof to purchase one
common share in the capital of the Corporation (a “Warrant Share”) at a
price of $1.40 at any time prior to 5:00 p.m. (Toronto time) on the date that is
two years following the Closing Date (as defined below). The Warrants shall be
created and issued pursuant to a warrant indenture (the “Warrant
Indenture”) to be dated as of the Closing Date (as defined below) between
the Corporation and the Transfer Agent (as defined below). 

The Agents also understand that the Corporation proposes to
grant to the Agents an option (the “Over-Allotment Option”), exercisable
in whole or in part, at any time until the date which is 30 days following the
Closing Date (as defined herein), to arrange for the issuance and sale of up to
an additional 2,250,000 units of the Corporation, representing 15% of the number
of Initial Units issued pursuant to the Offering (the “Additional
Units”), at a price per Additional Unit equal to the Issue Price, for the
purposes of covering over-allotments, if any, and for market stabilization
purposes in connection with the Offering (as more particularly described in
section 15 hereof). The Over-Allotment Option may be exercisable by the Agents
in respect of: (i) Additional Units at the Offering Price; or (ii) additional
Units Shares (the “Additional Unit Shares”) at a price of $0.94 per
Additional Unit Share; or (iii) additional Warrants (the “Additional
Warrants”) at a price of $0.12 per Additional Warrant; or (iv) any
combination of Additional Units and/or Additional Unit Shares and/or Additional
Warrants, so long as the aggregate number of Additional Unit Shares and
Additional Warrants which may be issued under the Over-Allotment Option does not
exceed 2,250,000 Additional Unit Shares and 1,125,000 Additional Warrants. In
the event that the Over-Allotment Option is exercised, any Additional Units
and/or Additional Unit Shares and/or Additional Warrants issued thereunder shall
be deemed to form part of the Offering for the purposes hereof and all of the
terms and conditions relating to the Closing shall apply to the Over-Allotment
Closing (as defined herein).

2

Unless the context otherwise requires, references herein to the
“Offered Units”, “Unit Shares”, “Warrants” and
“Warrant Shares” shall assume the exercise of the Over-Allotment Option
and include the Additional Units, Additional Unit Shares, Additional Warrants
and Additional Warrant Shares issuable upon exercise of the Additional Warrants,
respectively. The offering of the Offered Units by the Corporation is referred
to as the “Offering”. 

The Agents further understand that the Corporation has prepared
and filed a preliminary short form prospectus with respect to the qualification
for distribution to the public of the Offered Units in each of the Qualifying
Provinces (as hereinafter defined) and will prepare and file a (final) short
form prospectus and all other necessary documents in order to qualify the
Offered Units for distribution to the public in each of the Qualifying
Provinces. 

Subject to the terms and conditions contained in this
Agreement, the Corporation hereby appoints the Agents to act as the sole and
exclusive agents to the Corporation, and the Agents hereby agree to act as the
agents of the Corporation, to effect the sale of the Offered Units on behalf of
the Corporation on a “best efforts” basis to Purchasers (as hereinafter defined)
resident in the Qualifying Provinces and in those jurisdictions outside of
Canada (including the United States (as hereinafter defined)) as may be agreed
to by the Corporation and the Agents, acting reasonably, through private
placements or other offerings on an exempt basis and provided that the
Corporation shall not become obligated to file a registration statement or
prospectus outside of Canada. In addition, the Corporation hereby agrees to
issue and sell the Additional Units to the extent that Over-Allotment Option
granted to the Agents pursuant to this Agreement is exercised by the Agents. It
is understood and agreed that the Agents are under no obligation to purchase any
of the Offered Units, although the Agents may subscribe for Offered Units if
they so desire. 

In consideration of the services to be rendered by the Agents
in connection with the sale of the Offered Units hereunder, the Corporation
agrees to pay to the Agents a commission (the “Commission”) equal to 6%
of the gross proceeds of the Offering, including proceeds realized from the
exercise by the Agents of the Over-Allotment Option, if any. The Commission
shall be due and payable at the applicable Closing Time (as hereinafter
defined). As additional compensation for the services to be rendered by the
Agents in connection with the sale of the Offered Units, the Corporation shall
grant to the Agents compensation options (the “Compensation Options”)
entitling the Agents to subscribe for and purchase up to such number of units
(the “Compensation Units”) as is equal to 6% of the aggregate number of
Offered Units sold pursuant to the Offering, including Offered Units sold
pursuant to the exercise by the Agents of the Over-Allotment Option, if any.
Each Compensation Unit will be comprised of one Unit Share and one-half of one
Warrant. The Compensation Options may be exercised, in whole or in part, at an
exercise price per Compensation Unit equal to $1.00, at any time during the
period commencing on the Closing Date and ending on the date that is 24 months
following the Closing Date. The Corporation shall execute and deliver to the
Agents at the applicable Closing Time certificates evidencing the Compensation
Options (the “Compensation Option Certificates”) to which the Agents are
entitled, in a form to be agreed upon by the Agents and the Corporation, acting
reasonably. The Agents acknowledge and agree that the Compensation Options shall
not be exercisable by or on behalf of a person in the United States or a U.S.
Person (as hereinafter defined) and that the Compensation Options and the
securities underlying such Compensation Options will not be registered under the
U.S. Securities Act (as hereinafter defined) or under applicable state
securities laws in the United States. Further, each Agent represents and
warrants, severally but not jointly, that (i) the Compensation Options were not
offered to the Agent in the United States, (ii) the Agent is not U.S. Person,
(iii) the Agent is not acting for the account or benefit of a person in the United States or a U.S.
Person and (iv) the Agent did not execute or deliver this Agreement in the
United States. 

3

Terms and Conditions

The following are additional terms and conditions of this
Agreement between the Corporation and the Agents: 

	1. 	
      Interpretation

	 	(a) 	
      Definitions. Where used in this Agreement or in
      any amendment hereto, the following terms shall have the following
      meanings, respectively:

	 	 	 
	 		
      “Agreement” means the agreement resulting from the
      acceptance by the Corporation of the offer made by the Agents herein,
      including the schedules attached hereto, as amended or supplemented from
      time to time;

	 	 	 
	 		
      “Business Day” means a day which is not a
      Saturday, Sunday or a statutory or civic holiday in the City of Toronto,
      Province of Ontario;

	 	 	 
	 		
      “Canadian Securities Regulators” means the
      Securities Regulators in the Qualifying Provinces;

	 	 	 
	 		
      “Closing” means the completion of the purchase and
      sale of the Offered Units by the Purchasers pursuant to the Offering in
      accordance with the provisions of this Agreement;

	 	 	 
	 		
      “Closing Date” means December 20, 2010 or such
      other date as the Corporation and the Lead Agent may mutually agree upon
      in writing;

	 	 	 
	 		
      “Closing Time” means 8:30 a.m. (Toronto time) on
      the Closing Date or such other time on the Closing Date as the Corporation
      and the Lead Agent may mutually agree upon in writing;

	 	 	 
	 		
      “Common Shares” means the common shares in the
      capital of the Corporation as constituted on the date hereof;

	 	 	 
	 		
      “Corporation’s Auditors” means McGovern Hurley
      Cunningham LLP, the auditors of the Corporation;

	 	 	 
	 		
      “Documents Incorporated by Reference” means all
      notices, financial statements, management information circulars, annual
      information forms, material change reports, business acquisition reports
      or other documents issued by the Corporation, whether before or after the
      date of this Agreement, that are required by applicable Securities Laws to
      be incorporated by reference into the Prospectus;

	 	 	 
	 		
      “Encumbrances” includes any mortgage, pledge,
      assignment, charge, lien, claim, security interest, adverse interest,
      other third person interest or encumbrance of any kind, whether contingent
      or absolute, and any agreement, option, right or privilege (whether by
      law, contract or otherwise) capable of becoming any of the
    foregoing;

4

“Final Prospectus” means the
(final) short form prospectus, including all of the Documents Incorporated by
Reference, prepared by the Corporation and relating to the distribution of the
Offered Units and for which a Passport Decision Document has been issued by the
Ontario Securities Commission on its own behalf and on behalf of each of the
other Canadian Securities Regulators; 

“Financial Statements” means (i)
the audited comparative consolidated financial statements of the Corporation as
at, and for the financial years ended, April 30, 2010 and 2009, together with
the auditor’s report and notes thereto; and (ii) the unaudited consolidated
financial statements of the Corporation as at July 31, 2010 and for the three
month periods ended July 31, 2010 and 2009, together with the notes thereto;

“Governmental Authority” means,
without limitation, any national, federal government, province, state,
municipality or other political subdivision of any of the foregoing, any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government and any corporation or other entity
owned or controlled (through stock or capital ownership or otherwise) by any of
the foregoing; 

“Material Adverse Effect” when
used in connection with an entity means any change (including a decision to
implement such a change made by the board of directors or by senior management
who believe that confirmation of the decision by the board of directors is
probable), event, violation, inaccuracy, circumstance or effect that is
materially adverse to the business, assets (including intangible assets),
capitalization, financial condition or results of operations of the Corporation
or a Subsidiary, as the case may be; 

“Material Properties” means the
Priority Nevada Properties and the Rio Condor Properties; 

“misrepresentation”,
“material fact”, “material change”, “affiliate”,
“associate” and “distribution” shall have the respective meanings
ascribed thereto in the Securities Act; 

“Offering” means the issuance
and sale of the Offered Units pursuant to this Agreement (including, if
applicable, any Additional Units issued pursuant to the exercise of the
Over-Allotment Option); 

“Offering Documents” has the
meaning ascribed thereto in subsection 6(a)(ii) hereof; 

“Over-Allotment Notice” has the
meaning ascribed thereto in subsection 15(b) hereof; 

“Passport Decision Document”
means a decision document issued by the Principal Regulator pursuant to the
Passport System and that evidences receipt by the Principal Regulator and deemed
receipt by the other Canadian Securities Regulators for the Preliminary
Prospectus or the Final Prospectus, as the case may be; 

5

“Passport System” means the
system for review of prospectus filings set out in Multilateral Instrument 11-
102 Passport System and National Policy 11-202 Process for Prospectus
Reviews in Multiple Jurisdictions adopted by certain Canadian securities
regulatory authorities; 

“person” shall be broadly
interpreted and shall include any individual, firm, corporation, syndicate,
partnership, joint venture, association, trust, unincorporated organization,
investment club, a government or an agency or political subdivision thereof and
every other form of legal or business entity of any nature or kind whatsoever;

“Preliminary Prospectus” means
the preliminary short form prospectus of the Corporation dated November 29,
2010, including all of the Documents Incorporated by Reference, prepared by the
Corporation and relating to the distribution of the Offered Units and for which
a Passport Decision Document has been issued by the Principal Regulator on its
own behalf and on behalf of each of the other Canadian Securities Regulators;

“Principal Regulator” means the
Ontario Securities Commission; 

“Priority Nevada Properties”
means the Blackrock, Argentite, Belleview and Horsethief properties in Nevada,
as more particularly described in the Prospectus; 

“Prospectus” means,
collectively, the Preliminary Prospectus and the Final Prospectus; 

“Purchasers” means,
collectively, each of the purchasers of the Offered Units pursuant to the
Offering including, if applicable, the Agents; 

“Qualifying Provinces” means,
collectively, each of the Provinces of Canada, other than Québec; 

“Rio Condor Properties” means
the Rosario, Tamara, Trillador, Simonetta properties and certain other
properties located in Chile, as more particularly described in the Prospectus;

“Securities Act” means the
Securities Act (Ontario) and the regulations thereunder, together with all
applicable published policy statements, instruments, rules, orders, and notices
of the Ontario Securities Commission, as amended, supplemented or replaced from
time to time; 

“Securities Laws” means, unless
the context otherwise requires, all applicable securities laws in each of the
Qualifying Provinces and the applicable securities laws of all other
jurisdictions other than the Qualifying Provinces in which the Offered Units are
offered, as applicable, and the respective regulations made thereunder, together
with applicable published fee schedules, prescribed forms, policy statements,
national or multilateral instruments, orders, blanket rulings and other
regulatory instruments of the securities regulatory authorities in such
jurisdictions; 

6 

“Securities Regulators” means,
collectively, the securities regulators or other securities regulatory
authorities in the Qualifying Provinces and any other jurisdictions in which the
Offered Units are offered, as the case may be; 

“Selling Firm” has the meaning
ascribed thereto in subsection 3(b) hereof; 

“Standard Listing Conditions”
has the meaning ascribed thereto in subsection 5(a)(iii) hereof; 

“Subsequent Disclosure
Documents” means any financial statements, management information circulars,
annual information forms, material change reports, business acquisition reports
or other documents issued by the Corporation after the date of this Agreement
that are required to be incorporated by reference in the Prospectus; 

“Subsidiaries” has the meaning
ascribed thereto in subsection 8(b) hereof; 

“Supplementary Material” means,
collectively, any amendment to the Final Prospectus, any amendment or
supplemental prospectus or ancillary materials that may be filed by or on behalf
of the Corporation under the Securities Laws in each of the Qualifying Provinces
relating to the distribution of the Offered Units thereunder; 

“Transfer Agent” means Valiant
Trust Company; 

“TSX” means the Toronto Stock
Exchange; 

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

“U.S. Affiliate” has the meaning
ascribed thereto in subsection 4(e) hereof; 

“U.S. Person” means a “U.S.
person” as that term is defined in Regulation S under the U.S. Securities Act.
Without limiting the foregoing, but for greater clarity, a U.S. Person includes,
subject to the exclusions set forth in Regulation S, (i) any natural person
resident in the United States, (ii) any partnership or corporation organized or
incorporated under the laws of the United States, (iii) any estate or trust of
which any executor, administrator or trustee is a U.S. Person, (iv) any
discretionary account or similar account (other than an estate or trust) held by
a dealer or other fiduciary organized, incorporated, or (if an individual)
resident in the United States, and (v) any partnership or corporation organized
or incorporated under the laws of any non-U.S. jurisdiction which is formed by a
U.S. Person principally for the purpose of investing in securities not
registered under the U.S. Securities Act, unless it is organized or
incorporated, and owned, by “accredited investors” (as that term is defined in
Rule 501(a) of Regulation D under the U.S. Securities Act) who are not natural
persons, estates or trusts; 

“U.S. Private Placement
Memorandum” has the meaning ascribed thereto in subsection 5(a)(i) hereof;

“U.S. Securities Act” means the
United States Securities Act of 1933, as amended; and 

7

“Warrant Certificates” means the
certificates evidencing the Warrants substantially in the form set forth in the
Warrant Indenture. 

	 	(b) 	
      Prospectus Defined Terms. Capitalized terms used
      but not defined herein have the meanings ascribed to them in the
      Prospectus.

	 	 	 
	 	(c) 	
      Number and Gender. All words and personal pronouns
      relating thereto shall be read and construed as the number and gender of
      the party or parties referred to in each case required and the verb shall
      be construed as agreeing with the required word and/or pronoun.

	 	 	 
	 	(d) 	
      Divisions and Headings. The division of this
      Agreement into sections, subsections, paragraphs and other subdivisions
      and the insertion of headings are for convenience of reference only and
      shall not affect the construction or interpretation of this Agreement.
      Unless something in the subject matter or context is inconsistent
      therewith, references herein to sections, subsections, paragraphs and
      other subdivisions are to sections, subsections, paragraphs and other
      subdivisions of this Agreement.

	 	 	 
	 	(e) 	
      Currency. Any reference in this Agreement to $ or
      to dollars shall refer to the lawful currency of Canada, unless otherwise
      specified.

	 	 	 
	 	(f) 	
      Schedules. Schedule “A” entitled “Compliance with
      United States Securities Laws” is attached to this Agreement and is deemed
      to be incorporated in and to form part of this
Agreement.

	2. 	
      The Offered Units

The Unit Shares and Warrants comprising
the Offered Units and the Compensation Units to be issued and sold by the
Corporation hereunder shall be duly and validly created and issued by the
Corporation and, when issued and sold by the Corporation provided that the
Corporation shall have received due payment therefor, such Unit Shares shall be
issued as fully paid and non-assessable Common Shares and such Unit Shares and
Warrants shall have the rights, privileges, restrictions and conditions that
conform in all material respects to the rights, privileges, restrictions and
conditions set forth in the Prospectus, subject to such modifications or changes
(if any) prior to the Closing Date as may be agreed to in writing by the
Corporation and the Agents. 

	3. 	
      The Offering

	 	(a) 	
      The sale of the Offered Units to the Purchasers shall be
      effected upon the terms set out in the Prospectus and in this Agreement
      and in a manner that is in compliance with applicable Securities Laws. The
      Agents will use commercially reasonable efforts to arrange for Purchasers
      for the Offered Units in the Qualifying Provinces and in those
      jurisdictions outside of Canada as may be agreed upon by the Corporation
      and the Agents, acting reasonably, in connection with the Offering;
      however, it is understood and agreed that the Agents shall have no
      obligation to purchase the Offered Units.

8

	 	(b) 	
      The Corporation agrees that the Agents shall have the
      right to invite one or more investment dealers (each, a “Selling
      Firm”) to form a selling group to participate in the soliciting of
      offers to purchase the Offered Units. The Agents have the exclusive right
      to control all compensation arrangements between the members of the
      selling group (comprised of such Selling Firms) and the Agents, provided
      that no additional amount shall be payable by the Corporation in respect
      thereof. The Corporation grants all of the rights and benefits of this
      Agreement to any Selling Firm so appointed by the Agents and appoints the
      Agents as trustees of such rights and benefits for such Selling Firms, and
      the Agents hereby accept such trust and agree to hold such rights and
      benefits for and on behalf of such Selling Firms. The Agents shall ensure
      that any Selling Firm appointed pursuant to the provisions of this
      subsection 3(b) or with whom the Agents have a contractual relationship
      with respect to the Offering, if any, agrees with the Agents to comply
      with the covenants and obligations given by the Agents herein, including
      Schedule “A” hereto.

	 	 	 
	 	(c) 	
      The Corporation represents and warrants to, and covenants
      and agrees with, the Agents that the Corporation has prepared and filed
      the Preliminary Prospectus and has obtained pursuant to the Passport
      System a Passport Decision Document in respect of the proposed
      distribution of the Offered Units. The Corporation has prepared and will
      promptly, after the execution and delivery of this Agreement, file the
      Final Prospectus in each of the Qualifying Provinces with the Canadian
      Securities Regulators under applicable Securities Laws, and will use its
      best efforts to obtain a Passport Decision Document for the Final
      Prospectus in order to qualify the Offered Units for distribution in each
      of the Qualifying Provinces, as soon as possible, and in any event not
      later than 4:00 pm (Toronto time) on December 13, 2010 (or such other time
      and/or later date as the Corporation and the Lead Agent may agree) and
      until the day on which the distribution of the Offered Units is completed,
      the Corporation will promptly take, or cause to be taken, all additional
      steps and proceedings that may from time to time be required under
      applicable Securities Laws to qualify the distribution of the Offered
      Units in the Qualifying Provinces.

	 	 	 
	 	(d) 	
      The Agents shall, upon the Corporation obtaining a
      Passport Decision Document for the Final Prospectus from the Principal
      Regulator, deliver one copy of the Final Prospectus (together with any
      amendments thereto) to all persons resident in the Qualifying Provinces
      who are to acquire the Offered Units.

	 	 	 
	 	(e) 	
      Prior to the filing of the Preliminary Prospectus, the
      Final Prospectus and the Closing, the Corporation shall have permitted the
      Agents to review each of the Preliminary Prospectus and the Final
      Prospectus and shall allow the Agents to conduct any due diligence
      investigations which they reasonably require in order to fulfill their
      obligations as agents under applicable Securities Laws and in order to
      enable the Agents to responsibly execute the certificate in the
      Preliminary Prospectus and the Final Prospectus required to be executed by
      them.

	4. 	
      Certain Obligations of the
Agents

	 	(a) 	
      The Agents shall, and shall require any Selling Firm to
      agree to, comply with the Securities Laws in connection with the
      distribution of the Offered Units and shall offer the Offered Units for
      sale to the public directly and through Selling Firms
  upon the terms and conditions set out in the
Prospectus and this Agreement. The Agents shall, and shall require any Selling
Firm to, offer for sale to the public and sell the Offered Units only in those
jurisdictions where they may be lawfully offered for sale or sold.

9

	 	(b) 	
      The Agents shall: (i) use all commercially reasonable
      efforts to complete and cause each Selling Firm to complete the
      distribution of the Offered Units as soon as reasonably practicable; and
      (ii) promptly notify the Corporation when, in their opinion, the Agents
      and the Selling Firms have ceased distribution of the Offered Units and
      provide a written breakdown of the number of Offered Units distributed in
      each of the Qualifying Provinces where such breakdown is required for the
      purpose of calculating fees payable to the Canadian Securities
      Regulators.

	 	 	 
	 	(c) 	
      The Agents shall, and shall require any Selling Firm to
      agree to, distribute the Offered Units in a manner which complies with and
      observes all applicable laws and regulations, including, for greater
      certainty, all Securities Laws, in each jurisdiction into and from which
      they may offer to sell the Offered Units or distribute the Prospectus, any
      Supplementary Material or the U.S. Private Placement Memorandum in
      connection with the distribution of the Offered Units and will not,
      directly or indirectly, offer, sell or deliver any Offered Units or
      deliver the Prospectus, any Supplementary Material or the U.S. Private
      Placement Memorandum to any person in any jurisdiction other than in the
      Qualifying Provinces except in a manner which will not require the
      Corporation to comply with the registration, prospectus, filing,
      continuous disclosure or other similar requirements under the applicable
      Securities Laws of such other jurisdictions. Subject to the foregoing, the
      Agents and any Selling Firms shall be entitled to offer and sell the
      Offered Units in other international jurisdictions in accordance with any
      applicable securities and other laws in the jurisdictions in which the
      Agents and/or Selling Firms offer the Offered Units.

	 	 	 
	 	(d) 	
      For the purposes of this section 4, the Agents shall be
      entitled to assume that the Offered Units are qualified for distribution
      in any Qualifying Province where a receipt or similar document for the
      Final Prospectus shall have been obtained from the applicable Canadian
      Securities Regulators (including a Passport Decision Document from the
      Principal Regulator issued under the Passport System evidencing that a
      receipt has been issued for the Final Prospectus by each of the Canadian
      Securities Regulators) following the filing of the Final Prospectus unless
      otherwise notified in writing.

	 	 	 
	 	(e) 	
      Any offer or sale of the Offered Units will be made in
      accordance with Schedule “A” to this Agreement, which Schedule is
      incorporated by reference in and shall form part of this Agreement.
      Notwithstanding the foregoing provisions of this section 4, an Agent will
      not be liable to the Corporation under this section 4 with respect to a
      default under this section 4 by another Agent or such other Agent’s duly
      registered broker-dealer affiliate in the United States (a “U.S.
      Affiliate”).

10

	5. 	
      Deliveries on Filing and Related
  Matters

	 	(a) 	
      The Corporation shall deliver to the Agents:

	 	 	 	 
	 		(i) 	
      as soon as practicable after the Preliminary Prospectus,
      the Final Prospectus and any Supplementary Material are prepared, the
      private placement memorandum incorporating the Preliminary Prospectus, the
      Final Prospectus or any Supplementary Material, as the case may be,
      prepared for use in connection with the offering for sale of the Offered
      Units, to, or for the account or benefit of, persons in the United States
      or U.S. Persons (the “U.S. Private Placement Memorandum”) and,
      forthwith after preparation, any amendment or supplement to the U.S.
      Private Placement Memorandum;

	 	 	 	 
	 		(ii) 	
      prior to the filing of the Final Prospectus with the
      Canadian Securities Regulators, a copy of the Final Prospectus signed and
      certified by the Corporation as required by applicable Securities
    Laws;

	 	 	 	 
	 		(iii) 	
      prior to the filing of the Final Prospectus with the
      Canadian Securities Regulators, copies of correspondence indicating that
      the application for the listing and posting for trading on the TSX of the
      Unit Shares and the Warrant Shares (including, for greater certainty, any
      Unit Shares or Warrant Shares issuable upon exercise of the Compensation
      Units) has been approved, subject only to satisfaction by the Corporation
      of customary post-closing conditions imposed by the TSX (the “Standard
      Listing Conditions”);

	 	 	 	 
	 		(iv) 	
      concurrently with the filing of the Final Prospectus with
      the Canadian Securities Regulators, a “long-form” comfort letter dated the
      date of the Final Prospectus, in form and substance satisfactory to the
      Agents, acting reasonably, addressed to the Agents and the directors of
      the Corporation from the Corporation’s Auditors with respect to financial
      and accounting information contained in the Final Prospectus, which letter
      shall be based on a review by the Corporation’s Auditors within a cut-off
      date of not more than two Business Days prior to the date of the letter
      and which letter shall be in addition to the auditors’ consent letter and
      comfort letter (if any) addressed to the Canadian Securities Regulators;
      and

	 	 	 	 
	 		(v) 	
      a copy of any Supplementary Material required to be filed
      by the Corporation in compliance with applicable Securities Laws, prior to
      the filing thereof with Canadian Securities Regulators.

	 	 	 	 
	 	(b) 	
      The Corporation shall also prepare and deliver promptly
      to the Agents signed copies of all Supplementary Material. Concurrently
      with the delivery of any Supplementary Material or the incorporation by
      reference in the Final Prospectus of any Subsequent Disclosure Document,
      the Corporation shall deliver to the Agents, with respect to such
      Supplementary Material or Subsequent Disclosure Document, to the extent
      that such Supplementary Material contains any financial and accounting
      information, a comfort letter substantially similar to that referred to in
      subsection 5(a)(iv).

11

	 	(c) 	
      Delivery of the Preliminary Prospectus, the Final
      Prospectus and any Supplementary Material by the Corporation shall
      constitute the representation and warranty of the Corporation to the
      Agents that, as at their respective dates of filing:

	 	 	 	 
	 		(i) 	
      all information and statements (except information and
      statements relating solely to the Agents and provided in writing by the
      Agents) contained and incorporated by reference in the Preliminary
      Prospectus, the Final Prospectus or any Supplementary Material, as the
      case may be, are true and correct, in all material respects, and contain
      no misrepresentation and constitute full, true and plain disclosure of all
      material facts relating to the Corporation and the Offered Units as
      required by applicable Securities Laws in the Qualifying
  Provinces;

	 	 	 	 
	 		(ii) 	
      no material fact or information has been omitted
      therefrom (except facts or information relating solely to the Agents and
      provided in writing by the Agents) which is required to be stated in such
      disclosure or is necessary to make the statements or information contained
      in such disclosure not misleading in light of the circumstances under
      which they were made;

	 	 	 	 
	 		(iii) 	
      except with respect to any information relating solely to
      the Agents and provided by the Agents in writing, such documents comply
      fully with the requirements of applicable Securities Laws; and

	 	 	 	 
	 		(iv) 	
      except as set forth or contemplated in the Prospectus or
      any Supplementary Material or as has otherwise been publicly disclosed,
      there has been no adverse material change (actual, anticipated,
      contemplated, proposed or threatened) in the business, affairs,
      operations, assets, liabilities (contingent or otherwise), prospects,
      capital or ownership of the Corporation on a consolidated basis since the
      end of the period covered by the Financial Statements.

	 	 	 	 
	 		
      Such deliveries shall also constitute the Corporation’s
      consent to the Agents’ use of the Preliminary Prospectus, the Final
      Prospectus and any Supplementary Material in connection with the
      distribution of the Offered Units in the Qualifying Provinces in
      compliance with this Agreement unless otherwise advised in
  writing.

	 	 	 	 
	 	(d) 	
      The Corporation confirms that it has previously delivered
      to the Agents copies of the Preliminary Prospectus signed as required by
      Securities Laws in the Qualifying Provinces and such number of commercial
      copies of the Preliminary Prospectus as the Agents requested. The
      Corporation shall:

	 	 	 	 
	 		(i) 	
      cause commercial copies of the Final Prospectus and any
      Supplementary Material to be delivered to the Agents without charge, in
      such numbers and at such locations in the Qualifying Provinces as the
      Agents may reasonably request, forthwith after the Agents have been
      advised that the Corporation has complied with the Securities Laws in the
      Qualifying Provinces with respect to the filing of the Final Prospectus
      and a Passport Decision Document has been issued pursuant to the Passport
      System. Such delivery shall be effected as soon as possible and, in any
      event, on or before a date which is one
Business Day after compliance with applicable Securities Laws in the
Qualifying Provinces with respect to the filing of the Final Prospectus, and on
or before a date which is one Business Day after the Canadian Securities
Regulators issue decision documents for, or accept for filing, as the case may
be, any Supplementary Material; 

12

	 	(ii) 	
      cause to be delivered to the Agents, as soon as
      practicable after preparation thereof, without charge, in such numbers and
      at such locations as the Lead Agent may reasonably request, commercial
      copies of the U.S. Private Placement Memorandum and any amendments or
      supplements thereto; and

	 	 	 
	 	(iii) 	
      cause to be provided to the Agents, without charge, such
      number of copies of any Documents Incorporated by Reference in the
      Preliminary Prospectus, the Final Prospectus or any Supplementary Material
      as the Agents may reasonably request for use in connection with the
      distribution of the Offered Units.

	 	(e) 	
      During the period commencing on the date hereof and until
      completion of the distribution of the Offered Units, the Corporation will
      promptly provide to the Agents drafts of any press releases of the
      Corporation for review by the Agents and the Agents’ counsel prior to
      issuance.

	 	 	 
	 	(f) 	
      Prior to the Closing Time, the Corporation shall file or
      cause to be filed with the TSX all necessary documents and shall take or
      cause to be taken all necessary steps to ensure that the Corporation has
      obtained all necessary approvals for the Warrants (including, for greater
      certainty, any Warrants issuable upon exercise of the Compensation Units)
      to be conditionally listed on the TSX, subject only to the Standard
      Listing Conditions.

	6. 	
      Material Changes

	 	 	 	 
		(a) 	
      During the period commencing on the date hereof up until
      such time as the Agents notify the Corporation of the completion of the
      distribution of the Offered Units under the Final Prospectus, the
      Corporation shall promptly inform the Agents (and if requested by the
      Agents, confirm such notification in writing) of the full particulars
      of:

	 	 	 	 
			(i) 	
      any material change (actual, anticipated, contemplated,
      threatened, financial or otherwise) in the assets, liabilities (contingent
      or otherwise), business, affairs, operations, prospects, capital or
      control of the Corporation and its Subsidiaries;

	 	 	 	 
			(ii) 	
      any material fact which has arisen or has been discovered
      and would have been required to have been stated in the Preliminary
      Prospectus, the Final Prospectus or any Supplementary Material
      (collectively, the “Offering Documents”) had the fact arisen or
      been discovered on, or prior to, the date of such documents;
  and

13

	 	(iii) 	
      any change in any material fact contained in the Offering
      Documents or whether any event or state of facts has occurred after the
      date hereof, which, in any case, is, or may be, of such a nature as to
      render any of the Offering Documents untrue or misleading in any material
      respect or to result in any misrepresentation in any of the Offering
      Documents, or which would result in the Final Prospectus or any
      Supplementary Material not complying (to the extent that such compliance
      is required) with the Securities Laws of any Qualifying
  Province.

	 	(b) 	
      The Corporation represents that it filed the Preliminary
      Prospectus and related documents with the Canadian Securities Regulators
      in the Qualifying Provinces on November 29, 2010 and obtained a Passport
      Decision Document therefore on such date. The Corporation will comply with
      Section 57 of the Securities Act and with the comparable provisions of the
      Securities Laws in the other Qualifying Provinces, and the Corporation
      will prepare and file promptly any Supplementary Material which may be
      necessary and will otherwise comply with all legal requirements necessary
      to continue to qualify the Offered Units for distribution in each of the
      Qualifying Provinces.

	 	 	 
	 	(c) 	
      In addition to the provisions of subsections 6(a) and
      6(b) hereof, the Corporation shall in good faith discuss with the Agents
      any change, event or fact contemplated in subsections 6(a) and 6(b) which
      is of such a nature that there is or could be reasonable doubt as to
      whether notice should be given to the Agents under subsection 6(a) hereof
      and shall consult with the Agents with respect to the form and content of
      any amendment or other Supplementary Material proposed to be filed by the
      Corporation, it being understood and agreed that no such amendment or
      other Supplementary Material shall be filed with any Securities Regulator
      prior to the review thereof by the Agents and their counsel, acting
      reasonably.

	 	 	 
	 	(d) 	
      If during the period of distribution of the Offered Units
      there shall be any change in applicable Securities Laws in the Qualifying
      Provinces which, in the opinion of the Agents, acting reasonably, requires
      the filing of any Supplementary Material, upon written notice from the
      Agents, the Corporation shall, to the satisfaction of the Agents, acting
      reasonably, promptly prepare and file any such Supplementary Material with
      the appropriate Canadian Securities Regulators where such filing is
      required.

	7. 	
      Covenants of the Corporation

	 	 	 
		
      The Corporation hereby covenants to the Agents that the
      Corporation:

	 	 	 
		(a) 	
      will advise the Agents, promptly after receiving notice
      thereof, of the time when the Final Prospectus and any Supplementary
      Material has been filed and a Passport Decision Document therefor has been
      obtained and will provide evidence reasonably satisfactory to the Agents
      of each such filing and copies of such decision documents;

	 	 	 
		(b) 	
      will advise the Agents, promptly after receiving notice
      or obtaining knowledge thereof, of:

14

	 	(i) 	
      the issuance by any Canadian Securities Regulators of any
      order suspending or preventing the use of the Preliminary Prospectus, the
      Final Prospectus or any Supplementary Material;

	 	 	 
	 	(ii) 	
      the suspension of the qualification of the Offered Units
      in any of the Qualifying Provinces or the institution, threatening or
      contemplation of any proceeding for such purpose; or

	 	 	 
	 	(iii) 	
      any requests made by any Canadian Securities Regulator
      for amending or supplementing the Preliminary Prospectus or the Final
      Prospectus or for additional information, and will use its commercially
      reasonable efforts to prevent the issuance of any order referred to in (i)
      above and, if any such order is issued, to obtain the withdrawal thereof
      as quickly as possible;

	 	(c) 	
      will use its commercially reasonable best efforts to
      maintain its status as a “reporting issuer” (or the equivalent thereof)
      not in default of the requirements of the Securities Laws of at least one
      of the Qualifying Provinces which have such a concept to the date that is
      at least 24 months following the Closing Date;

	 	 	 
	 	(d) 	
      will use its commercially reasonable best efforts to
      maintain the listing of the Common Shares and Warrants on the TSX or such
      other recognized stock exchange or quotation system as the Agents may
      approve, acting reasonably, for a period of at least 24 months following
      the Closing Date;

	 	 	 
	 	(e) 	
      provided that it receives payment therefor, will ensure
      that the Unit Shares underlying the Offered Units issuable on Closing
      shall be duly issued as fully paid and non- assessable Common
    Shares;

	 	 	 
	 	(f) 	
      will duly execute and deliver the Warrant Indenture and
      the Warrant Certificates at the Closing Time and comply with and satisfy
      all terms, conditions and covenants therein contained to be complied with
      or satisfied by the Corporation;

	 	 	 
	 	(g) 	
      will ensure that the Warrants (including, for greater
      certainty, any Warrants issuable upon exercise of the Compensation Units)
      are duly and validly created, authorized and issued and has the attributes
      corresponding in all material respects to the description set forth in
      this Agreement, the Prospectus and the Warrant Indenture and will ensure
      that the Warrant Shares issuable upon the exercise of the Warrants shall,
      upon issue in accordance with the terms thereof, be duly issued as fully
      paid and non- assessable Common Shares;

	 	 	 
	 	(h) 	
      will duly execute and deliver the Compensation Option
      Certificates at the Closing Time and comply with and satisfy all terms,
      conditions and covenants therein contained to be complied with or
      satisfied by the Corporation;

	 	 	 
	 	(i) 	
      will ensure that the Compensation Options are duly and
      validly created, authorized and issued and have attributes corresponding
      in all material respects to the description set forth in this Agreement,
      the Prospectus and the Compensation Option
Certificates;

15

	 	(j) 	
      will ensure that the Unit Shares issuable upon the
      exercise of the Compensation Options shall, upon issue in accordance with
      the terms thereof, be duly issued as fully paid and non-assessable Common
      Shares;

	 	 	 
	 	(k) 	
      will use the proceeds of the Offering in the manner
      specified in the Final Prospectus; and

	 	 	 
	 	(l) 	
      to the extent that any Offered Units are sold to, or for
      the account or benefit of, persons in the United States or U.S. Persons
      pursuant to Rule 506 of Regulation D under the U.S. Securities Act, file a
      notice with the United States Securities and Exchange Commission on Form D
      in accordance with Rule 503 of Regulation D under the U.S. Securities Act
      forthwith upon being notified by the Agents that such has occurred in
      accordance with prescribed time periods for such
filing.

	8. 	
      Representations and Warranties of the
      Corporation.

	 	 	 
		
      The Corporation represents and warrants to the Agents as
      of the date hereof, and acknowledges that the Agents are relying upon each
      of such representations and warranties in completing the Closing,
    that:

	 	 	 
		(a) 	
      the Corporation and each of the Subsidiaries was
      incorporated, organized, continued or amalgamated and is validly existing
      under the laws of the jurisdiction in which it was incorporated,
      organized, continued or amalgamated, as the case may be, has all requisite
      corporate power and authority to carry on its business as now conducted or
      proposed to be conducted and is duly qualified to own, lease or operate
      its properties and assets and no steps or proceedings have been taken by
      any person, voluntary or otherwise, requiring or authorizing its
      dissolution or winding up, and the Corporation has all requisite power and
      authority to enter into each of this Agreement, the Warrant Indenture and
      the Compensation Option Certificates and to carry out its obligations
      hereunder and thereunder;

	 	 	 
		(b) 	
      the Corporation has no direct or indirect subsidiaries
      other than the following (collectively, the “Subsidiaries” and
      each, a “Subsidiary”) nor any investment or proposed investment in
      any person which, for the financial year ended April 30, 2010 accounted
      for more than five percent of the consolidated assets or consolidated
      revenues of the Corporation or would otherwise be material to the business
      and affairs of the Corporation on a consolidated
basis:

	 	  	 	Corporate 	 	 	Approximate 	 
	 	Subsidiary 	 	Jurisdiction 	 	 	Percentage
      Ownership 	 
	 	Rio Condor Resources S.A. 	 	Chile 	 	 	99% 	 
	 	Bridgeport Gold Inc. 	 	Nevada, USA 	 	 	100% 	 

	 	(c) 	
      the Corporation owns, directly or indirectly, the
      approximate percentage of the issued and outstanding shares of the
      Subsidiaries set forth in 8(b) above, all of which shares are issued as
      fully paid and non-assessable shares, free and clear of all mortgages,
      liens, charges, pledges, security interests, Encumbrances, claims or
      demands whatsoever and, other than as disclosed in the Prospectus, no
      person, firm or corporation has any agreement, option, right or privilege
(whether pre-emptive or contractual) capable of becoming an agreement, for the
purchase from the Corporation or any Subsidiary of any interest in any of the
shares in the capital of any of the Subsidiaries; 

16

	 	(d) 	
      the Corporation and each of the Subsidiaries have each
      been conducting its business in compliance in all material respects with
      all applicable laws and regulations of each jurisdiction in which it
      carries on business or in which its services are provided and has not
      received a notice of non-compliance, nor knows of, nor has reasonable
      grounds to know of, any facts that could give rise to a notice of
      non-compliance with any such laws, regulations and permits;

	 	 	 
	 	(e) 	
      the Corporation and each of the Subsidiaries holds all
      licences, registrations, qualifications, permits and consents necessary or
      appropriate for carrying on their respective business as currently carried
      on and all such licences, registrations, qualifications, permits and
      consents are valid and subsisting and in good standing in all material
      respects;

	 	 	 
	 	(f) 	
      (A) the Corporation and each of the Subsidiaries are the
      absolute legal and beneficial owners of, and have good and valid title to,
      all of the material property or assets thereof or the rights to acquire
      such interest, as the case may be, all as described in the Prospectus
      subject only to the Encumbrances described in the Prospectus, and no other
      property or assets are necessary for the conduct of the business of the
      Corporation as currently conducted, (B) neither the Corporation nor the
      Subsidiaries know of any claim or the basis for any claim that might or
      could materially and adversely affect the right thereof to use, transfer
      or otherwise exploit such property or assets, other than has been
      described to the Agents and (C) neither the Corporation nor the
      Subsidiaries have any responsibility or obligation to pay any material
      commission, royalty, licence fee or similar payment to any person with
      respect to the property and assets owned by the Corporation or any of the
      Subsidiaries, other than in the normal course of business or as described
      in the Prospectus;

	 	 	 
	 	(g) 	
      each of the execution and delivery of this Agreement, the
      Warrant Indenture and the Compensation Option Certificates, the
      performance by the Corporation of its obligations hereunder and
      thereunder, the issue and sale of the Offered Units and the consummation
      of the transactions contemplated in this Agreement, including the issuance
      and delivery of the Offered Units, the issuance and delivery of the
      Compensation Options and the issuance and delivery of the Compensation
      Units upon the exercise of the Compensation Options, and in the Warrant
      Indenture, including the issuance and delivery of the Warrants and the
      issuance and delivery of the Warrant Shares upon exercise of the Warrants
      respectively, do not and will not conflict with or result in a breach or
      violation of any of the terms or provisions of, or constitute a default
      under (whether after notice or lapse of time or both), (A) any statute,
      rule, policy or regulation applicable to the Corporation including,
      without limitation, applicable Securities Laws and the rules and
      regulations of the TSX; (B) the constating documents or resolutions of the
      directors or shareholders of the Corporation which are in effect at the
      date hereof; (C) any mortgage, note, indenture, contract, agreement, joint
      venture, partnership, instrument, lease or other document to which the
      Corporation or any of the Subsidiaries is a party or by which it is bound;
      or (D) any judgment, decree or order binding the Corporation or
any of the Subsidiaries or the property or assets thereof; 

17

	 	(h) 	
      the Corporation is a reporting issuer under the
      Securities Laws of British Columbia, Alberta and Ontario, is not in
      default of any requirement of such Securities Laws, is not included on a
      list of defaulting reporting issuers maintained by the Securities
      Regulators and will be, at the time of Closing, a reporting issuer under
      the Securities Laws of the Qualifying Provinces;

	 	 	 	 
	 	(i) 	
      the Corporation is in compliance in all material respects
      with its timely and continuous disclosure obligations under the Securities
      Laws of the Qualifying Provinces and the policies, rules and regulations
      of the TSX and, without limiting the generality of the foregoing, there
      has not occurred any material change, financial or otherwise, in the
      assets, liabilities (contingent or otherwise), business, financial
      condition, prospects or capital of the Corporation on a consolidated basis
      since April 30, 2010 which has not been publicly disclosed on a
      non-confidential basis; all statements set forth in all documents publicly
      filed by or on behalf of the Corporation pursuant to applicable Securities
      Laws, including the Documents Incorporated by Reference were true,
      correct, and complete in all material respects and did not contain any
      misrepresentation as of the date of such statements; and the Corporation
      has not filed any confidential material change reports since the date of
      such statements which remain confidential as at the date hereof;

	 	 	 	 
	 	(j) 	
      except as disclosed in the Prospectus or as contemplated
      herein, none of the Corporation or any of the Subsidiaries has approved,
      has entered into any agreement in respect of, or has any knowledge
    of:

	 	 	 	 
	 		A. 	
      the purchase of any material property or assets or any
      interest therein or the sale, transfer or other disposition of any
      material property or assets or any interest therein currently owned,
      directly or indirectly, by the Corporation or any of the Subsidiaries
      whether by asset sale, transfer of shares or otherwise;

	 	 	 	 
	 		B. 	
      any change of control (by sale or transfer of shares or
      sale of all or substantially all of the property and assets of the
      Corporation or any of the Subsidiaries or otherwise) of the Corporation or
      any of the Subsidiaries; or

	 	 	 	 
	 		C. 	
      a proposed or planned disposition of shares by any
      shareholder who owns, directly or indirectly, 10% or more of the
      outstanding shares of the Corporation or any of the
Subsidiaries;

	 	 	 	 
	 	(k) 	
      the Financial Statements, including the notes and the
      related auditors’ reports thereto, as applicable, in each case as
      incorporated by reference in the Prospectus, have been prepared in
      accordance with Canadian generally accepted accounting principles
      (“Canadian GAAP”), applied on a basis consistent with prior periods
      (except as disclosed in such consolidated financial statements) and
      present fairly and correctly the consolidated financial position of the
      Corporation as at the dates thereof and the consolidated results of the
      operations and cash flows of the Corporation for
the periods then ended and contain and reflect adequate provisions
or allowance for all reasonably anticipated liabilities, expenses and losses of
the Corporation and there has been no change in accounting policies or practices
of the Corporation, since April 30, 2010, except as has been publicly disclosed
in the Documents Incorporated by Reference; 

18

	 	(l) 	
      there are no material liabilities of the Corporation
      whether direct, indirect, absolute, contingent or otherwise which are not
      disclosed or reflected in the Financial Statements;

	 	 	 
	 	(m) 	
      all taxes (including income tax, capital tax, payroll
      taxes, employer health tax, workers’ compensation payments, property
      taxes, custom and land transfer taxes), duties, royalties, levies,
      imposts, assessments, deductions, charges or withholdings and all
      liabilities with respect thereto including any penalty and interest
      payable with respect thereto (collectively, “Taxes”) due and
      payable by the Corporation and the Subsidiaries have been paid, except
      where the failure to pay Taxes would not constitute an adverse material
      fact in respect of the Corporation or have a Material Adverse Effect on
      the Corporation or any of the Subsidiaries. All tax returns, declarations,
      remittances and filings required to be filed by the Corporation and the
      Subsidiaries have been filed with all appropriate Governmental Authorities
      and all such returns, declarations, remittances and filings are complete
      and accurate and no material fact or facts have been omitted therefrom
      which would make any of them misleading, except where the failure to file
      such documents would not constitute an adverse material fact in respect of
      the Corporation or have a Material Adverse Effect on the Corporation or
      any of the Subsidiaries. No examination of any tax return of the
      Corporation or any of the Subsidiaries is currently in progress and there
      are no issues or disputes outstanding with any Governmental Authority
      respecting any Taxes that have been paid, or may be payable, by the
      Corporation or any of the Subsidiaries, in any case, except where such
      examinations, issues or disputes would not constitute an adverse material
      fact in respect of the Corporation or have a Material Adverse Effect on
      the Corporation or any of the Subsidiaries;

	 	 	 
	 	(n) 	
      the Corporation and, as applicable, the Subsidiaries have
      established on their books and records reserves that are adequate for the
      payment of all Taxes not yet due and payable and there are no liens for
      Taxes on the assets of the Corporation or the Subsidiaries, and, to the
      knowledge of the Corporation, there are no audits pending of the tax
      returns of the Corporation or the Subsidiaries (whether federal, state,
      provincial, local or foreign) and there are no claims which have been or
      may be asserted relating to any such tax returns, which audits and claims,
      if determined adversely, would result in the assertion by any governmental
      agency of any deficiency that would result in a Material Adverse
      Effect;

	 	 	 
	 	(o) 	
      the Corporation’s Auditors, who audited the Financial
      Statements of the Corporation for the financial year ended April 30, 2010
      and who provided their audit report thereon are independent in accordance
      with the auditors’ rules of professional conduct, are, to the
      Corporation’s knowledge, independent public accountants as required under
      applicable Securities Laws and there has never been a reportable event
      (within the meaning of National Instrument 51-102 – Continuous
      Disclosure Obligations) between the Corporation and the Corporation’s
      Auditors or, to the knowledge of the Corporation, any former auditors of
      the Corporation; 

19 

	 	(p) 	
      as at the Closing Date, except as disclosed in the
      Prospectus, neither the Corporation nor the Subsidiaries have any
      outstanding convertible securities and, except as disclosed in the
      Prospectus or pursuant to the Corporation’s share compensation plans, no
      person has any agreement or option or right or privilege capable of
      becoming an agreement for the purchase, subscription or issuance of any
      unissued shares, securities or warrants of the Corporation or any of the
      Subsidiaries;

	 	 	 
	 	(q) 	
      there is not, in the articles or by-laws of the
      Corporation or of any of the Subsidiaries, or in any agreement, mortgage,
      note, debenture, indenture or other instrument or document to which the
      Corporation or any of the Subsidiaries is party, any restriction upon or
      impediment to the declaration or payment of dividends by the directors of
      the Corporation or the payment of dividends by the Corporation to its
      securityholders;

	 	 	 
	 	(r) 	
      neither the Corporation nor any of the Subsidiaries is
      aware of any licensing or legislation, regulation, by-law or other lawful
      requirement of any governmental body having lawful jurisdiction over the
      Corporation or any of the Subsidiaries presently in force or to their
      collective knowledge, proposed to be brought into force that the
      Corporation anticipates it or any of the Subsidiaries will be unable to
      comply with, to the extent that compliance is necessary, which would
      reasonably be likely to result in a Material Adverse Effect on the
      Corporation or any of the Subsidiaries;

	 	 	 
	 	(s) 	
      there is no agreement in force or effect which in any
      manner affects or will affect the voting or control of any of the
      securities of the Corporation or of any of the Subsidiaries;

	 	 	 
	 	(t) 	
      none of the officers or employees of the Corporation or
      of any of the Subsidiaries, any person who owns, directly or indirectly,
      more than 10% of any class of securities of the Corporation or securities
      of any person exchangeable for more than 10% of any class of securities of
      the Corporation, or any associate or affiliate of any of the foregoing,
      had or has any material interest, direct or indirect, in any transaction
      or any proposed transaction (including, without limitation, any loan made
      to or by any such person) with the Corporation or any of the Subsidiaries
      which, as the case may be, materially affects, is material to or will
      materially affect the Corporation on a consolidated basis;

	 	 	 
	 	(u) 	
      there are no actions, suits, judgments, investigations,
      inquiries or proceedings of any kind whatsoever outstanding, pending or,
      to the knowledge of the Corporation after due enquiry, threatened against
      or affecting the Corporation, any of the Subsidiaries or their respective
      directors or officers, at law or in equity or before or by any commission,
      board, bureau or agency of any kind whatsoever and, to the knowledge of
      the Corporation, there is no basis therefor and neither the Corporation
      nor any of the Subsidiaries is subject to any judgment, order, writ,
      injunction, decree, award, rule, policy or regulation of any Governmental
      Authority which, either separately or in the aggregate, may have a
      Material Adverse Effect on the Corporation or any of the Subsidiaries or
      would adversely affect the ability of the Corporation to perform its
      obligations under this Agreement;

20

	 	(v) 	
      no legal or governmental proceedings or inquiries are
      pending to which the Corporation or any of the Subsidiaries is a party or
      to which its property is subject that would result in the revocation or
      modification of any material certificate, authority, permit or licence
      necessary to conduct the business now owned or operated by the Corporation
      and the Subsidiaries which, if the subject of an unfavourable decision,
      ruling or finding would have a Material Adverse Effect on the Corporation
      or any of the Subsidiaries and, to the best of the Corporation’s
      knowledge, no such legal or governmental proceedings or inquiries have
      been threatened against or are contemplated with respect to the
      Corporation or any of the Subsidiaries;

	 	 	 
	 	(w) 	
      no approval, authorization, consent or other order of,
      and no filing, registration or recording with, any Governmental Authority
      or other person is required of the Corporation in connection with the
      execution and delivery of or with the performance by the Corporation of
      this Agreement except: (i) those which have been obtained or those which
      may be required and shall be obtained prior to the Closing Time under
      applicable Securities Laws or the rules of the TSX, including in
      compliance with applicable Securities Laws with regard to the distribution
      of the Offered Units in the Qualifying Provinces, and (ii) such
      post-Closing notice filings with Securities Regulators and the TSX as may
      be required in connection with the Offering;

	 	 	 
	 	(x) 	
      other than as disclosed to the Agents, none of the
      Corporation nor any of the Subsidiaries is in violation of its constating
      documents or in default of the performance or observance of any material
      obligation, agreement, covenant or condition contained in any material
      contract, indenture, trust deed, mortgage, loan agreement, note, lease or
      other agreement or instrument to which it is a party or by which it or its
      property may be bound;

	 	 	 
	 	(y) 	
      other than as disclosed to the Agents, none of the
      Corporation or any Subsidiary knows of any claim or the basis for any
      claim that might or could materially adversely affect the right of the
      Corporation or any Subsidiary to use or otherwise exploit any of the
      property or assets thereof and, except as disclosed in the Prospectus,
      none of the Corporation or any Subsidiary has any responsibility or
      obligation to pay any commission, royalty, licence fee or similar payment
      to any Person with respect to the property rights thereof;

	 	 	 
	 	(z) 	
      the Corporation or a Subsidiary holds either freehold
      title, mining leases, mining claims or participating interests or other
      conventional property, proprietary or contractual interests or rights,
      recognized in the jurisdiction in which the Material Properties are
      located and in respect of the ore bodies and minerals located in
      properties in which the Corporation or a Subsidiary has an interest as
      described in the Prospectus under valid, subsisting and enforceable title
      documents or other recognized and enforceable agreements or instruments,
      sufficient to permit the Corporation or a Subsidiary to explore for the
      minerals relating thereto, other than as disclosed to the
Agents;

	 	 	 
	 	(aa) 	
      all such property, leases or claims that comprise the
      Material Properties and all property, leases or claims in which the
      Corporation or a Subsidiary has an interest or right have been validly
      located and recorded in accordance with all applicable laws and are valid
      and subsisting and, other than as disclosed to the Agents,
  the Corporation or a Subsidiary has all necessary surface rights,
access rights and other necessary rights and interests relating to the
properties in which the Corporation or a Subsidiary has an interest as described
in the Prospectus granting the Corporation or a Subsidiary the right and ability
to explore for minerals, ore and metals for development purposes as are
appropriate in view of the rights and interest therein of the Corporation or a
Subsidiary, with only such exceptions as do not materially interfere with the
use made by the Corporation or a Subsidiary of the rights or interests so held
and each of the proprietary interests or rights and each of the documents,
agreements and instruments and obligations relating thereto referred to above is
currently in good standing in all material respects in the name of the
Corporation or a Subsidiary, other than as disclosed to the Agents; 

21

	 	(bb) 	
      any and all of the material agreements and other
      documents and instruments pursuant to which the Corporation or any
      Subsidiary holds the property and assets thereof are valid and subsisting
      agreements, documents or instruments in full force and effect, enforceable
      in accordance with terms thereof, none of the Corporation or any
      Subsidiary is in default of any of the material provisions of any such
      agreements, documents or instruments nor has any such default been
      alleged, other than as disclosed to the Agents, and such properties and
      assets are in good standing under the applicable statutes and regulations
      of the jurisdictions in which they are situated, all leases, licences and
      claims pursuant to which the Corporation or any Subsidiary derive the
      interests thereof in such property and assets are in good standing and
      there has been no material default under any such lease, licence or claim
      and all taxes required to be paid with respect to such properties and
      assets to the date hereof have been paid. None of the properties or assets
      of the Corporation or any Subsidiary is subject to any right of first
      refusal, first offer, back-in, bump-up, purchase, acquisition or other
      similar right which is not disclosed in the Prospectus;

	 	 	 	 
	 	(cc) 	
      the Corporation and the Subsidiaries are in material
      compliance with all applicable federal, provincial, state, municipal and
      local laws, statutes, ordinances, by-laws and regulations and orders,
      directives and decisions rendered by any ministry, department or
      administrative or regulatory agency, domestic or foreign (the
      “Environmental Laws”) relating to the protection of the
      environment, occupational health and safety or the processing, use,
      treatment, storage, disposal, discharge, transport or handling of any
      pollutants, contaminants, chemicals or industrial, toxic or hazardous
      wastes or substance (“Hazardous Substances”) except where such
      non-compliance would not have a Material Adverse Effect on the
      Corporation;

	 	 	 	 
	 		(i) 	
      the Corporation and the Subsidiaries have, collectively,
      obtained all material licences, permits, approvals, consents,
      certificates, registrations and other authorizations under all applicable
      Environmental Laws (the “Environmental Permits”) necessary as at
      the date hereof for the operation of the businesses carried on as set
      forth in the Prospectus by the Corporation and the Subsidiaries and, to
      the best of the knowledge of the Corporation, no proceeding is pending or
      threatened to revoke or limit any Environmental Permit;

	 	 	 
	 	(ii) 	
      neither the Corporation nor any of the Subsidiaries has
      used, except in material compliance with all Environmental Laws and
      Environmental Permits, any property or facility which it owns or leases or
previously owned or leased, to generate, manufacture, process, distribute, use,
treat, store, dispose of, transport or handle any Hazardous Substance; 

22

	 	(iii) 	
      neither the Corporation nor any of the Subsidiaries have
      received any notice of, or been prosecuted for an offence alleging,
      non-compliance with any Environmental Law nor is the Corporation aware of
      any such notice which has been given to a prior occupant of the Material
      Properties which remains applicable to the Corporation, and neither the
      Corporation nor any of the Subsidiaries have settled any allegation of
      non-compliance short of prosecution, in respect of the Material
      Properties. There are no orders or directions relating to environmental
      matters requiring any material work, repairs, construction or capital
      expenditures to be made with respect to any of the assets of the
      Corporation or any of its Subsidiaries which are material to the
      Corporation, nor has the Corporation or any of its Subsidiaries received
      notice of any of the same; neither the Corporation nor any of the
      Subsidiaries has received any notice wherein it is alleged or stated that
      it is potentially responsible for a federal, provincial, state, municipal
      or local clean-up site or corrective action under any Environmental Laws
      and neither the Corporation nor any of the Subsidiaries has received any
      request for information in connection with any federal, state, municipal
      or local inquiries as to disposal sites;

	 	 	 	 
	 	(iv) 	
      the Corporation and the Subsidiaries, taken as a whole,
      own, control or have legal rights, as described in the Prospectus to,
      through mining tenements of various types and descriptions, such rights,
      titles and interests as are materially necessary or appropriate to
      authorize and enable it to carry on the material mineral exploration
      and/or mining activities as currently being undertaken or contemplated and
      has obtained or, upon performance of all conditions precedent expect to be
      able to obtain, such rights, titles and interests as may be required to
      implement their plans on the Material Properties and are not in default of
      such rights, titles and interests, other than as disclosed to the
      Agents;

	 	 	 	 
	 	(v) 	
      In relation to the Material Properties:

	 	 	 	 
	 		A. 	
      The Corporation and its Subsidiaries know of no claim or
      basis for any claim, including a claim with respect to native rights, that
      might or could adversely affect the right thereof to use, transfer or
      otherwise exploit such property rights on its Material Properties and the
      Corporation and its Subsidiaries have no responsibility or obligation to
      pay any commission, royalty, licence fee or similar payment to any person
      with respect to the property rights thereof other than as described in the
      Prospectus;

	 	 	 	 
	 		B. 	
      All assessments or other work required to be performed in
      relation to the material mining claims and/or concessions and the mining
      rights of the Corporation in order to maintain the Corporation’s interest
      therein, if any, have been performed to date and the Corporation
  and the Subsidiaries have complied in all material respects with
all applicable governmental laws, regulations and policies in this connection as
well as with regard to legal, contractual obligations to third parties in this
connection except for any non-compliance which would not either individually or
in the aggregate have a material adverse effect on the Corporation or the
Subsidiaries. All such mining claims and mining rights in respect of the
Material Properties are in good standing in all material respects as of the date
of this Agreement; 

23

	 	C. 	
      Any and all of the agreements and other documents and
      instruments pursuant to which the Corporation and the Subsidiaries hold
      the Material Properties and assets (including any interest in, or right to
      earn an interest in, the Material Properties), are valid and subsisting
      agreements, documents or instruments in full force and effect, enforceable
      in accordance with the terms thereof, the Corporation and its Subsidiaries
      are not in default of any of the material provisions of any such
      agreements, documents or instruments nor has any such default been
      alleged, other than as disclosed to the Agents and such Material
      Properties and assets are in good standing under the applicable statutes
      and regulations of the jurisdictions in which they are situated, and there
      has been no material default under any lease, licence or claim pursuant to
      which the Corporation or its Subsidiaries derives an interest in such
      Material Properties or assets and all taxes required to be paid with
      respect to such Material Properties and assets to the date hereof have
      been paid. The interests of the Corporation or its Subsidiaries in, or
      rights of the Corporation or its Subsidiaries to earn an interest in, the
      Material Properties are not subject to any right of first refusal or
      purchase or acquisition rights;

	 	 	 
	 	D. 	
      All operations on the Material Properties of the
      Corporation and the Subsidiaries since acquisition of such Material
      Properties by the Subsidiaries have been conducted in all material
      respects in accordance with good mining and engineering practices and all
      applicable material workers’ compensation and health and safety and
      workplace laws, regulations and policies have been complied with in all
      material respects;

	 	 	 
	 	E. 	
      In respect of the Material Properties, there are no
      environmental audits, evaluations, assessments, studies or tests relating
      to the Corporation or any of the Subsidiaries except for ongoing
      assessments conducted by or on behalf of the Corporation in the ordinary
      course; and

	 	 	 
	 	F. 	
      The Corporation is in compliance in all material respects
      with the provisions of National Instrument 43-101 – Standards of
      Disclosure for Mineral Projects, and has filed all technical reports
      required thereby.

24

	 	(dd) 	
      any and all of the material agreements and other
      documents and instruments pursuant to which the Corporation and the
      Subsidiaries hold the property and assets thereof are valid and subsisting
      agreements, documents or instruments in full force and effect, enforceable
      in accordance with the terms thereof, neither the Corporation nor any of
      the Subsidiaries is in default of any of the material provisions of any
      such agreements, documents or instruments nor has any such default been
      alleged other than as disclosed to the Agents and such properties and
      assets are in good standing under the applicable statutes and regulations
      of the jurisdictions in which they are situated; and all material leases,
      licences and claims pursuant to which the Corporation or any of the
      Subsidiaries derives the interests thereof in such property and assets are
      in good standing and there has been no material default under any such
      lease, licence or claim. None of the properties (or any interest in, or
      right to earn an interest in, any property) of the Corporation or any of
      the Subsidiaries is subject to any right of first refusal or purchase or
      acquisition right;

	 	 	 
	 	(ee) 	
      at the Closing Time, each of this Agreement, the Warrant
      Indenture, the Warrant Certificates and the Compensation Option
      Certificates shall have been duly authorized and executed and delivered by
      the Corporation and upon such execution and delivery each shall constitute
      a valid and legally binding obligation of the Corporation and each shall
      be enforceable against the Corporation in accordance with its terms,
      except as enforcement thereof may be limited by bankruptcy, insolvency,
      reorganization, moratorium and other laws relating to or affecting the
      rights of creditors generally and except as limited by the application of
      equitable principles when equitable remedies are sought, and by the fact
      that rights to indemnity, contribution and waiver, and the ability to
      sever unenforceable terms, may be limited by applicable law;

	 	 	 
	 	(ff) 	
      the Corporation has full corporate power and authority to
      enter into this Agreement, the Warrant Indenture, the Warrant Certificates
      and the Compensation Option Certificates, to do all acts and things and
      execute and deliver all documents as are required hereunder and thereunder
      to be done, observed, performed or executed and delivered by it in
      accordance with the terms hereof and thereof; all necessary corporate
      action has been taken by the Corporation to carry out its obligations
      hereunder and to validly create, allot and authorize the issuance and sale
      of the Unit Shares, the Warrants and the Compensation Options, and upon
      the due exercise of the Warrants in accordance with the provisions
      thereof, the Warrant Shares will be validly issued as fully paid and
      non-assessable Common Shares and, upon the due exercise of the
      Compensation Options in accordance with the provisions thereof, the Unit
      Shares issuable in connection therewith will be validly issued as fully
      paid and non-assessable Common Shares;

	 	 	 
	 	(gg) 	
      the Common Shares are listed and posted for trading on
      the TSX and all necessary notices and filings have been made with and all
      necessary consents, approvals and authorizations have been obtained by the
      Corporation from the TSX to ensure that, subject to fulfilling the
      Standard Listing Conditions, the Unit Shares, the Warrant Shares issuable
      upon exercise of the Warrants (including for greater certainty, any
      Warrant Shares issuable upon exercise of the Warrants issuable upon
      exercise of the Compensation Options) and the Unit Shares issuable upon
      exercise of the Compensation Options will be listed and posted for trading
      on the TSX upon their issuance and no order, ruling or determination having the
effect of suspending the sale or ceasing the trading in any securities of the
Corporation has been issued by any regulatory authority and is continuing in
effect and no proceedings for that purpose have been instituted or, to the
knowledge of the Corporation, are pending, contemplated or threatened by any
regulatory authority; 

25

	 	(hh) 	
      the Corporation has made application to list the Warrants
      on the TSX and, as at the Closing Time, the Warrants will be listed and
      posted for trading on the TSX. subject to fulfilling the Standard Listing
      Conditions.

	 	 	 
	 	(ii) 	
      the authorized capital of the Corporation consists of an
      unlimited number of Common Shares, of which, as at the close of business
      on December 12, 2010, 32,904,600 Common Shares were issued and outstanding
      as fully paid and non-assessable shares in the capital of the
      Corporation;

	 	 	 
	 	(jj) 	
      neither the Corporation nor any of the Subsidiaries has
      made any loans to or guaranteed the obligations of any person other than
      inter-corporate loans;

	 	 	 
	 	(kk) 	
      the assets of the Corporation and the Subsidiaries and
      their business and operations are insured against loss or damage with
      responsible insurers on a basis consistent with insurance obtained by
      reasonably prudent participants in comparable businesses in comparable
      circumstances, and such coverage is in full force and effect, and the
      Corporation has not failed to promptly give any notice of any material
      claim thereunder;

	 	 	 
	 	(ll) 	
      Valiant Trust Company, at its principal offices in the
      City of Toronto, has been duly appointed as registrar and transfer agent
      for the Common Shares;

	 	 	 
	 	(mm) 	
      the minute books and records of the Corporation and the
      Subsidiaries made available to counsel for the Agents in connection with
      its due diligence investigation of the Corporation are all of the minute
      books and records of the Corporation and the Subsidiaries, respectively,
      and contain copies of all material proceedings (or certified copies
      thereof or drafts thereof pending approval) of the shareholders, the
      directors and all committees of directors of the Corporation and the
      Subsidiaries to the date of review of such corporate records and minute
      books and there have been no other meetings, resolutions or proceedings of
      the shareholders, directors or any committees of the directors of the
      Corporation or any Subsidiary to the date hereof not reflected in such
      minute books and other records, other than those which are not material to
      the Corporation or the Subsidiaries, as the case may be;

	 	 	 
	 	(nn) 	
      there has not been and there is not currently any labour
      disruption, grievance, arbitration proceeding or other conflict between
      the Corporation (or any predecessor to the Corporation) and the employees
      of the Corporation which could reasonably be expected to have a Material
      Adverse Effect on the Corporation or any of the Subsidiaries;

	 	 	 
	 	(oo) 	
      the Corporation and the Subsidiaries are in compliance in
      all material respects with all laws respecting employment and employment
      practices, terms and conditions of employment, pay equity and wages, and
      there are no outstanding, threatened or to the knowledge of the
      Corporation, pending proceedings, actions, complaints or orders,
      respecting employment and employment practices, terms and conditions of
      employment, pay equity, labour relations, workers compensation, workplace
      safety, human rights and wages, there is no labour strike, dispute,
      slowdown, stoppage, complaint or grievance pending or, to the best of the
      knowledge of the Corporation, threatened against the Corporation or any
      Subsidiary and no employee has any agreement as to the length of notice
      required to terminate this or her employment with the Corporation or any
      Subsidiary in excess of twelve months or equivalent compensation; 

26

	 	(pp) 	
      no union has been accredited or otherwise designated to
      represent any employees of the Corporation or any of the Subsidiaries and,
      to the knowledge of the Corporation, no accreditation request or other
      representation question is pending with respect to the employees of the
      Corporation or any of the Subsidiaries and no collective agreement or
      collective bargaining agreement or modification thereof has expired or is
      in effect in any of the Corporation’s facilities and none is currently
      being negotiated by the Corporation or any of the Subsidiaries;

	 	 	 
	 	(qq) 	
      the Prospectus discloses, to the extent required by
      applicable Securities Laws, each material plan for retirement, bonus,
      stock purchase, profit sharing, stock option, deferred compensation,
      severance or termination pay, insurance, medical, hospital, dental, vision
      care, drug, sick leave, disability, salary continuation, legal benefits,
      unemployment benefits, vacation, incentive or otherwise contributed to, or
      required to be contributed to, by the Corporation for the benefit of any
      current or former director, officer, employee or consultant of the
      Corporation (the “Employee Plans”), each of which has been
      maintained in all material respects with its terms and with the
      requirements prescribed by any and all statutes, orders, rules and
      regulations that are applicable to such Employee Plans;

	 	 	 
	 	(rr) 	
      the Corporation maintains a system of internal accounting
      controls sufficient to provide reasonable assurances that (A) transactions
      are executed in accordance with management’s general or specific
      authorization; (B) transactions are recorded as necessary to permit
      preparation of financial statements in conformity with Canadian GAAP and
      to maintain accountability for assets; and (C) the recorded accountability
      for assets of the Corporation and the Subsidiaries is compared with the
      existing assets of the Corporation and the Subsidiaries at reasonable
      intervals and appropriate action is taken with respect to any differences
      therein;

	 	 	 
	 	(ss) 	
      upon satisfaction of the Standard Listing Conditions on
      the Closing Date, the Offered Units will be qualified investments under
      the Income Tax Act (Canada) and the regulations thereunder for
      trusts governed by registered retirement savings plans, registered
      retirement income funds, deferred profit sharing plans, registered
      education savings plans, registered disability savings plans and tax-free
      savings accounts;

	 	 	 
	 	(tt) 	
      all information which has been prepared by the
      Corporation relating to the Corporation, the Subsidiaries and the
      business, property and liabilities thereof and either publicly disclosed,
      provided or made available to the Agents, including the Prospectus and all
      financial, marketing, sales and operational information provided to the
      Agents is, as of the date of such information, true and correct in all
      material respects, taken as whole, and no fact or facts have been omitted
      therefrom which would make such information materially misleading and the
      Corporation has not withheld and will not withhold from the Agents prior
      to the Closing Time, any material facts relating to the Corporation, the
      Subsidiaries or the Offering; 

27

	 	(uu) 	
      the Corporation has not completed any “significant
      acquisition” nor is it proposing any “probable acquisitions” (as such
      terms are used in National Instrument 44-101 – Short Form Prospectus
      Offerings of the Canadian Securities Administrators) that would
      require the inclusion of any additional financial statements or pro forma
      financial statements in the Prospectus pursuant to applicable Securities
      Laws;

	 	 	 
	 	(vv) 	
      the Corporation is eligible to file a short form
      prospectus in each of the Qualifying Provinces pursuant to applicable
      Securities Laws and on the date of and upon filing of the Final Prospectus
      there will be no documents required to be filed under applicable
      Securities Laws in connection with the Offering that will not have been
      filed as required;

	 	 	 
	 	(ww) 	
      to the knowledge of the Corporation, none of the
      Corporation, its officers or directors is aware of any circumstances
      presently existing under which liability is or could reasonably be
      expected to be incurred under Part XXIII – Civil Liability for Secondary
      Market Disclosure of the Securities Act; and

	 	 	 
	 	(xx) 	
      other than the Agents, there is no person acting or
      purporting to act at the request or on behalf of the Corporation that is
      entitled to any brokerage or finder’s fee in connection with the
      transactions contemplated by this Agreement.

	9. 	
      Closing Deliveries

	 	 
		
      The purchase and sale of the Offered Units shall be
      completed at the Closing Time at the offices of Cassels Brock &
      Blackwell LLP in Toronto, Ontario, or at such other place as the Lead
      Agent and the Corporation may agree. At or prior to the Closing Time, the
      Corporation shall duly and validly cause the Unit Shares and Warrants
      comprising the Offered Units to be issued as directed by the Agents and
      registered in such name or names as the Agents may notify the Corporation
      in writing not less than 48 hours prior to the Closing Time (provided that
      any Unit Shares and Warrants sold to, or for the account or benefit of,
      persons in the United States or U.S. Persons pursuant to Schedule “A”
      shall be individually certificated), against payment by the Agents to the
      Corporation, at the direction of the Corporation, in lawful money of
      Canada by wire transfer or, if permitted by applicable law, by certified
      cheque or bank draft, payable at par in the City of Toronto, Ontario, of
      an amount equal to the aggregate purchase price for the Offered Units
      being issued and sold hereunder less the applicable Commission and all of
      the estimated expenses of the Agents payable by the Corporation to the
      Agents in accordance with section 18 hereof.

	 	 
	10. 	
      Conditions of Closing

	 	 
		
      The following are conditions precedent to the obligations
      of the Agents to complete the Closing and of the Purchasers to purchase
      the Offered Units at the Closing Time, which conditions the Corporation
      covenants and agrees to use its commercially reasonable
  best efforts to fulfil within the time set out herein therefor, and
which conditions may be waived in writing in whole or in part by the Agents: 

28

	 	(a) 	
      the Corporation shall have delivered or caused to be
      delivered favourable legal opinions addressed to the Agents and their
      legal counsel dated the Closing Date from Cassels Brock & Blackwell
      LLP, counsel for the Corporation, as to such matters as the Agents may
      reasonably request, acceptable to the Agents, subject to usual or
      customary assumptions, limitations and qualifications and to include the
      following matters:

	 	 	 	 	 
	 		(i) 	
      the Corporation is a “reporting issuer”, or its
      equivalent, in each of the Qualifying Provinces where Purchasers are
      resident and it is not on the list of defaulting reporting issuers
      maintained by the Canadian Securities Regulators;

	 	 	 	 	 
	 		(ii) 	
      the Corporation is a corporation existing under the laws
      of its jurisdiction of incorporation and has all requisite corporate power
      to carry on its business as now conducted and to own, lease and operate
      its property and assets;

	 	 	 	 	 
	 		(iii) 	
      the authorized and issued and outstanding share capital
      of the Corporation;

	 	 	 	 	 
	 		(iv) 	
      the Corporation has all necessary corporate capacity,
      power and authority: (A) to execute and deliver this Agreement, the Warrant
      Indenture, the Warrant Certificates and the Compensation Option
      Certificates and to perform its obligations hereunder and thereunder; (B)
      to create, issue and sell the Unit Shares and the Warrants (including, for
      greater certainty, any Unit Shares or Warrants issuable upon exercise of
      the Compensation Options); and (C) to issue the Warrant Shares issuable upon exercise of the
      Warrants in accordance with their terms;

	 	 	 	 	 
	 		(v) 	
      all necessary corporate action has been taken by the
      Corporation to authorize the execution and delivery of each of the
      Preliminary Prospectus, the Final Prospectus and any Supplementary
      Material and the filing thereof with the Canadian Securities
      Regulators;

	 	 	 	 	 
	 		(vi) 	
      upon the payment therefor, the Unit Shares forming part
      of the Offered Units will have been validly issued as fully paid and
      non-assessable Common Shares;

	 	 	 	 	 
	 		(vii) 	
      the Warrants (including, for greater certainty, any
      Warrants issuable upon exercise of the Compensation Options) have been
      validly created;

	 	 	 	 	 
	 		(viii) 	
      the Warrant Shares issuable upon the exercise of the
      Warrants (including, for greater certainty, any Warrants issuable upon
      exercise of the Compensation Options) have been authorized and allotted
      for issuance and, upon the exercise of the Warrants in accordance with the
      provisions thereof, such Warrant Shares will be validly issued as fully
      paid and non-assessable Common Shares;

29

	 	(ix) 	
      the Compensation Options have been validly
  created;

	 	 	 
	 	(x) 	
      the Unit Shares issuable upon the exercise of the
      Compensation Options have been authorized and allotted for issuance and,
      upon the exercise of the Compensation Options in accordance with the
      provisions thereof, such Unit Shares will be validly issued as fully paid
      and non-assessable Common Shares;

	 	 	 
	 	(xi) 	
      all necessary corporate action has been taken by the
      Corporation to authorize the execution and delivery of this Agreement, the
      Warrant Indenture, the Warrant Certificates and the Compensation Option
      Certificates and the performance of its obligations hereunder and
      thereunder and this Agreement, the Warrant Indenture, the Warrant
      Certificates and the Compensation Option Certificates have been executed
      and delivered by the Corporation and constitute legal, valid and binding
      obligations of the Corporation enforceable against it in accordance with
      their terms, subject to bankruptcy, insolvency and other laws affecting
      the rights of creditors generally and subject to such other standard
      assumptions and qualifications including the qualifications that equitable
      remedies may be granted in the discretion of a court of competent
      jurisdiction and that enforcement of rights to indemnity, contribution and
      waiver of contribution may be limited by applicable law;

	 	 	 
	 	(xii) 	
      the rights, privileges, restrictions and conditions
      attaching to the Unit Shares and the Warrants (including, for greater
      certainty, any Unit Shares or Warrants issuable pursuant to the
      Compensation Options) are accurately summarized in all material respects
      in the Final Prospectus;

	 	 	 
	 	(xiii) 	
      all necessary documents have been filed, all requisite
      proceedings have been taken and all approvals, permits and consents of the
      appropriate regulatory authority in each of the Qualifying Provinces have
      been obtained by the Corporation to qualify the distribution to the public
      of the Offered Units and the grant, issuance and delivery of the
      Compensation Options to the Agent in each of the Qualifying Provinces
      through persons who are registered under applicable Securities Laws and
      who have complied with the relevant provisions of applicable Securities
      Laws;

	 	 	 
	 	(xiv) 	
      the issue by the Corporation of the Warrant Shares to be
      issued upon exercise of the Warrants and the Unit Shares and Warrants
      comprising Compensation Units to be issued upon exercise of the
      Compensation Options are exempt from, or are not subject to, the
      prospectus and registration requirements of the Securities Laws of the
      Qualifying Provinces and no prospectus or other documents are required to
      be filed, proceedings taken, or approvals, permits, consents or
      authorizations obtained by the Corporation under the Securities Laws of
      the Qualifying Provinces in respect of such distribution;

	 	 	 
	 	(xv) 	
      the first trade in, or resale of, the Warrant Shares to
      be issued upon exercise of the Warrants (including, for greater certainty,
      any Warrants issued upon the exercise of the Compensation Units) and the
      Unit Shares issuable upon exercise of the Compensation Options is exempt
      from, or is not subject to, the prospectus requirements of the Securities Laws of the
Qualifying Provinces and no prospectus or other documents are required to be
filed, proceedings taken, or approvals, permits, consents or authorizations
obtained under such Securities Laws in respect of such trade; 

30

	 	(xvi) 	
      subject only to the Standard Listing Conditions, the Unit
      Shares and the Warrant Shares (including, for greater certainty, any Unit
      Shares or Warrant Shares issuable upon exercise of the Compensation Units)
      have been conditionally approved for listing on the TSX;

	 	 	 
	 	(xvii) 	
      the execution and delivery of this Agreement, the Warrant
      Indenture, the Warrant Certificates and the Compensation Option
      Certificates, the fulfilment of the terms hereof and thereof by the
      Corporation and the issuance, sale and delivery of the Offered Units to be
      issued and sold by the Corporation at the Closing Time and the issuance of
      the Compensation Options, the Compensation Units and the Warrant Shares,
      do not and will not create a state of facts which, after notice or lapse
      of time or both, will result in a breach of, and do not and will not
      conflict with: (A) the provisions of any law, statute, rule or regulation
      to which the Corporation is subject; or (B) the constating documents of
      the Corporation;

	 	 	 
	 	(xviii) 	
      the Transfer Agent has been duly appointed as the
      transfer agent and registrar for the Common Shares; and

	 	 	 
	 	(xix) 	
      subject to the assumptions, qualifications, limitations
      and restrictions set out therein, the statements under the heading in the
      Prospectus “Eligibility for Investment” are accurate in all material
      respects.

In connection with such opinions,
counsel to the Corporation may rely on the opinions of local counsel in the
Qualifying Provinces acceptable to counsel to the Agents, acting reasonably, as
to certain corporate and securities matters relating to the Corporation and as
to the qualification for distribution of the Offered Units and the Compensation
Options or opinions may be given directly by local counsel of the Corporation
with respect to those items and as to other matters governed by the laws of
jurisdictions other than the province in which they are qualified to practise
and may rely, to the extent appropriate in the circumstances, as to matters of
fact on certificates of officers of the Corporation and others; 

	 	(b) 	
      if any Offered Units are sold by the Agents, a Selling
      Firm or any affiliate of the Agents or a Selling Firm to, or for the
      account or benefit of, persons in the United States or U.S. Persons, the
      Corporation shall cause a favourable legal opinion to be delivered by its
      United States counsel, Troutman Sanders LLP, to the Agents, such opinion
      to be subject to such qualifications and assumptions as the Agents may
      agree, acting reasonably, to the effect that no registration of the
      Offered Units will be required under the U.S. Securities Act in connection
      with the offering of the Offered Units for sale to, or for the account or
      benefit of, persons in the United States or U.S.
Persons;

31

	 	(c) 	
      the Agents shall have received a favourable legal opinion
      addressed to the Agents and the Agents’ counsel as to the title to the
      Priority Nevada Properties, dated as of the Closing Date, in form and
      substance satisfactory to the Agent and their counsel, acting
      reasonably;

	 	 	 	 
	 	(d) 	
      the Corporation will have caused a favourable legal
      opinion to be delivered by local counsel in the jurisdiction of
      incorporation of each Subsidiary addressed to the Agents, in form and
      substance satisfactory to the Agents, acting reasonably, and with respect
      to the following matters:

	 	 	 	 
	 		(i) 	
      the incorporation and existence of the Subsidiary under
      the laws of its jurisdiction of incorporation;

	 	 	 	 
	 		(ii) 	
      as to the authorized share capital of the Subsidiary, as
      to the issued and outstanding share capital of the Subsidiary and all of
      the issued and outstanding shares of the Subsidiary are registered,
      directly or indirectly, in the name of the Corporation; and

	 	 	 	 
	 		(iii) 	
      that the Subsidiary has all requisite corporate capacity
      power and authority under the laws of its jurisdiction of incorporation to
      carry on its business as presently carried on and to own lease and operate
      its properties and assets;

	 	 	 	 
	 	(e) 	
      the Corporation shall cause the Corporation’s Auditors to
      deliver to the Agents a comfort letter, dated as of the Closing Date, in
      form and substance satisfactory to the Agents, acting reasonably, bringing
      forward to a date not more than two Business Days prior to the Closing
      Date the information contained in the comfort letter referred to in
      subsection 5(a)(iv) hereof;

	 	 	 	 
	 	(f) 	
      the Agents shall have received a certificate, dated as of
      the Closing Date, signed by the Chief Executive Officer and Chief
      Financial Officer of the Corporation, or such other officer(s) of the
      Corporation as the Agents may agree, certifying for and on behalf of the
      Corporation and without personal liability, to the best of the knowledge,
      information and belief of the persons so signing, with respect to: (i) the
      articles and by-laws of the Corporation; (ii) the resolutions of the
      Corporation’s board of directors relevant to the issue and sale of the
      Offered Units to be issued and sold by the Corporation and the
      authorization of the other agreements and transactions contemplated
      herein; and (iii) the incumbency and signatures of signing officers of the
      Corporation;

	 	 	 	 
	 	(g) 	
      the Agents shall have received a certificate, dated as of
      the Closing Date, signed by the Chief Executive Officer and Chief
      Financial Officer of the Corporation, or such other officers of the
      Corporation as the Agents may agree, certifying for and on behalf of the
      Corporation and without personal liability, to the best of the knowledge,
      information and belief of the persons so signing, after having made due
      enquiry and after having carefully examined the Final Prospectus and any
      Supplementary Material, that:

	 	 	 	 
	 		(i) 	
      since the respective dates as of which information is
      given in the Final Prospectus (A) there has been no material change
      (actual, anticipated, contemplated or threatened, whether financial or otherwise) in
the business, affairs, operations, assets, liabilities (contingent or
otherwise), prospects or capital of the Corporation on a consolidated basis, and
(B) no transaction has been entered into by either the Corporation or any of the
Subsidiaries which is material to the Corporation on a consolidated basis, other
than as disclosed in the Final Prospectus or the Supplementary Material, as the
case may be; 

32

	 	(ii) 	
      there has been no change in any material fact (which
      includes the disclosure of any previously undisclosed material fact)
      contained in the Final Prospectus which fact or change is, or may be, of
      such a nature as to render any statement in the Final Prospectus
      misleading or untrue in any material respect or which would result in a
      misrepresentation in the Final Prospectus or which would result in the
      Final Prospectus not complying with applicable Canadian Securities
      Laws;

	 	 	 
	 	(iii) 	
      the Corporation has complied with all the covenants and
      satisfied all the terms and conditions of this Agreement on its part to be
      complied with and satisfied at or prior to the Closing Time;

	 	 	 
	 	(iv) 	
      the representations and warranties of the Corporation
      contained herein are true and correct as at the Closing Time, with the
      same force and effect as if made on and as at the Closing Time after
      giving effect to the transactions contemplated hereby; and

	 	 	 
	 	(v) 	
      receipts or decision documents have been issued by the
      Canadian Securities Regulators for the Final Prospectus and no order,
      ruling or determination having the effect of ceasing the trading or
      suspending the sale of the Common Shares or any other securities of the
      Corporation has been issued by any regulatory authority and is continuing
      in effect and no proceedings for such purpose have been instituted or are
      pending or, to the knowledge of such officers, contemplated or threatened
      under any Securities Laws or by any regulatory
authority;

	 	(h) 	
      the Agents shall have received copies of correspondence
      indicating that the Corporation has obtained all necessary approvals for
      the Unit Shares, the Warrants and the Warrant Shares (including, for
      greater certainty, any Unit Shares or Warrant Shares issuable upon
      exercise of the Compensation Units) to be conditionally listed on the TSX,
      subject only to the Standard Listing Conditions;

	 	 	 
	 	(i) 	
      the Agents shall have received a certificate from the
      Transfer Agent as to the number of Common Shares issued and outstanding as
      at the date immediately prior to the Closing Date;

	 	 	 
	 	(j) 	
      the Agents shall have received a certificate of status or
      the equivalent in respect of the Corporation and each Subsidiary issued by
      the appropriate regulatory authority in each jurisdiction in which the
      Corporation and such Subsidiary are incorporated;

	 	 	 
	 	(k) 	
      the Agents shall have received a copy of the Reporting
      Issuer List or the Defaulting Issuer List, as the case may be, for each of
      the Qualifying Provinces which such lists are available confirming that the Corporation is a reporting
issuer not in default of applicable Securities Laws; and 

33

	 	(l) 	
      the Agents shall have completed and be satisfied, in
      their sole discretion, with the results of their due diligence
      investigations regarding the Corporation, its business, operations and
      financial condition and market conditions at the Closing
  Time.

	11. 	
      Restrictions on Further Issues or Sales

	 	 	 
		
      The Corporation shall not issue any further securities,
      or agree to do so, at any time for a period of 90 days following the
      Closing Date without the prior consent of the Agents, save and except (i)
      as contemplated by this Agreement, (ii) pursuant to the grant or exercise
      of stock options and other similar issuances pursuant to the existing
      share incentive plan of the Corporation and other existing share
      compensation arrangements, or (iii) upon the exercise of the currently
      outstanding convertible securities.

	 	 	 
	12. 	
      All Terms to be Conditions

	 	 	 
		
      The Corporation agrees that the conditions contained in
      section 10 will be complied with insofar as the same relate to acts to be
      performed or caused to be performed by the Corporation and that it will
      use its commercially reasonable best efforts to cause all such conditions
      to be complied with. Any breach or failure to comply with any of the
      conditions set out in section 10 shall entitle the Agents (or any of them)
      to terminate their obligation to arrange for the sale of the Offered
      Units, by written notice to that effect given to the Corporation at or
      prior to the Closing Time. It is understood that the Agents may waive, in
      whole or in part, or extend the time for compliance with, any of such
      terms and conditions without prejudice to the rights of the Agents in
      respect of any such terms and conditions or any other or subsequent breach
      or non-compliance, provided that to be binding on the Agents any such
      waiver or extension must be in writing.

	 	 	 
	13. 	
      Termination Events

	 	 	 
		
      Each of the Agents shall be entitled, at its sole option,
      to terminate and cancel, without any liability on the part of such Agent,
      all of its obligation under this Agreement and the obligations of any
      Purchaser in relation to the Offering, by written notice to that effect
      given to the Corporation at or prior to the Closing Time, if:

	 	 	 
		(a) 	
      there is, in the sole opinion of such Agent, acting
      reasonably, a material change or change in a material fact or new material
      fact or an undisclosed material fact or material change which might be
      expected to have an adverse effect on the condition (financial or
      otherwise), property, assets, operations, business, affairs or
      profitability of the Corporation or on the market price or value of the
      Common Shares or any other securities of the Corporation;

	 	 	 
		(b) 	
      any inquiry, action, suit, proceeding or investigation
      (whether formal or informal) in relation to the Corporation or any of the
      directors, officers or principal shareholders of the Corporation
      (including matters of regulatory transgression or unlawful conduct), is
      commenced, announced or threatened or any order made by any federal,
      provincial, state, municipal or other governmental department, commission,
      board, bureau, agency or instrumentality including, without
limitation, the TSX or any securities regulatory authority, or any law or
regulation is enacted or changed which in the opinion of such Agent, acting
reasonably, operates to prevent or restrict the trading of the Offered Units or
any other securities of the Corporation or materially and adversely affects or
will materially and adversely affect the market price or value of the Common
Shares or any other securities of the Corporation; 

34

	 	(c) 	
      there should develop, occur or come into effect or
      existence any event, action, state, condition or major financial
      occurrence of national or international consequence (including acts of
      terrorism) or any new law or regulation or a change thereof which in the
      reasonable opinion of such Agent seriously adversely affects, or involves,
      or will, or could reasonably be expected to, seriously adversely affect,
      or involve, the financial markets or the business, operations or affairs
      of the Corporation and its Subsidiaries taken as a whole;

	 	 	 
	 	(d) 	
      the state of the national or international financial
      markets is such that, in the sole opinion of such Agent, acting
      reasonably, it would be unprofitable to offer or continue to offer for
      sale the Offered Units;

	 	 	 
	 	(e) 	
      the Agents are not satisfied, in their sole discretion,
      with the results of their due diligence investigation of the
      Corporation;

	 	 	 
	 	(f) 	
      any order to cease or suspend trading in any securities
      of the Corporation is made, threatened or announced by any securities
      regulatory authority; or

	 	 	 
	 	(g) 	
      the Corporation is in material breach of any term,
      condition, covenant or agreement contained in this Agreement or any
      representation or warranty given by the Corporation in this Agreement is
      or becomes untrue, false or misleading.

	14. 	
      Exercise of Termination Right

	 	 
		
      If this Agreement is terminated by any of the Agents
      pursuant to section 13, there shall be no further liability on the part of
      such Agent or of the Corporation to such Agent, except in respect of any
      liability which may have arisen or may thereafter arise under sections 17
      and 18. The right of the Agents (or any of them) to terminate their
      obligations under this Agreement is in addition to such other remedies as
      they may have in respect of any default, act or failure to act of the
      Corporation in respect of any of the matters contemplated by this
      Agreement.

	 	 
	15. 	
      Over-Allotment Option

	 	(a) 	
      The Corporation hereby grants to the Agents the
      Over-Allotment Option to purchase the Additional Units, for the purpose of
      covering over-allotments, if any, or for market stabilization purposes.
      The Over-Allotment Option is exercisable, in whole or in part, at any time
      or times on or before 5:00 p.m. (Toronto time) on the date which is 30
      days following the Closing Date at a price per Additional Unit equal to
      the Issue Price. For greater certainty, the Agents shall be paid the
      Commission and shall be issued Compensation Options in respect of the
      issue and sale of any Additional Units purchased pursuant to the exercise
      of the Over-Allotment Option.

35

	 	(b) 	
      The Lead Agent, on its own behalf and on behalf of the
      Agents, may exercise the Over-Allotment Option in whole or in part during
      the currency thereof by delivering written notice to the Corporation (the
      “Over-Allotment Notice”) specifying the number of Additional Units
      and/or Additional Unit Shares and/or Additional Warrants to be issued and
      sold. If the Agents exercise the Over-Allotment Option, the Agents shall
      on the Closing Date for the Over-Allotment Option (the “Over- Allotment
      Closing Date”), which shall be a date that is not less than two
      Business Days and not more than five Business Days after the date of the
      Over-Allotment Notice (such day to be specified by the Agents in their
      sole discretion), pay to the Corporation the aggregate purchase price for
      the Additional Units and/or Additional Unit Shares and/or Additional
      Warrants by wire transfer, certified cheque or bank draft in Canadian
      currency payable at par in Toronto, Ontario against delivery of one or
      more certificates in definitive form representing the Additional Units,
      registered as the Agents direct. Such Over-Allotment Closing Date may be
      the same as the Closing Date, but not later than 30 days following the
      Closing Date. The applicable terms, conditions and provisions of this
      Agreement (including, without limitation, the provisions of section 10
      relating to closing deliveries) shall apply mutatis mutandis to the
      Closing of the issuance of any Additional Units and/or Additional Unit
      Shares and/or Additional Warrants pursuant to any exercise of the
      Over-Allotment Option.

	 	 	 
	 	(c) 	
      In the event the Corporation shall subdivide,
      consolidate, reclassify or otherwise exchange its Common Shares during the
      period in which the Over-Allotment Option is exercisable, appropriate
      adjustments will be made to the exercise price of the Over- Allotment
      Option and to the number of Additional Units and/or Additional Unit Shares
      and/or Additional Warrants issuable on exercise thereof such that the
      Agents are entitled to offer for sale the same number and type of
      securities that the Agents would otherwise have been entitled to offer for
      sale had they exercised such Over- Allotment Option immediately prior to
      such subdivision, consolidation, reclassification or
  change.

	16. 	
      Survival of Representations and
  Warranties

	 	 	 
		
      All terms, warranties, representations, covenants and
      agreements herein contained or contained in any documents delivered
      pursuant to this Agreement and in connection with the transactions herein
      contemplated shall survive the purchase and sale of the Offered Units and
      will continue in full force and effect for the benefit of the Agents, the
      Purchasers and/or the Corporation, as the case may be, in accordance with
      applicable law, regardless of any subsequent disposition of the Offered
      Units or any investigation by or on behalf of the Agents with respect
      thereto for a period of 2 years from the Closing Date. The Agents will be
      entitled to rely on the representations and warranties of the Corporation
      contained in this Agreement or delivered pursuant to this Agreement
      notwithstanding any investigation which the Agents may undertake or which
      may be undertaken on the Agents’ behalf.

	 	 	 
	17. 	
      Indemnity and Contribution

	 	 	 
		(a) 	
      The Corporation (the “Indemnitor”) hereby agrees
      to indemnify and save harmless each of the Agents and their respective
      affiliates, shareholders, directors, officers, employees and agents
      (collectively the “Indemnified Parties”) from and against all
      actual or threatened claims, actions, suits, investigations and
      proceedings (collectively “Proceedings”) and all losses (other than loss of
profits), expenses, fees, damages, obligations, payment and liabilities
(collectively “Liabilities”), including without limitation all statutory
duties and obligations, all amounts paid to settle any action or to satisfy any
judgment or award and all legal fees and disbursements actually incurred, which
now or any time hereafter exist by reason of any event, act or omission in any
way connected, directly or indirectly, with: 

36

	 	(i) 	
      any misrepresentation or untrue statement or alleged
      misrepresentation or alleged untrue statement, except a misrepresentation
      or untrue statement relating solely to the Agents, contained in any
      information, data, opinion, advice, representation or statement provided
      or made to the Agents by or on behalf of the Indemnitor or any public
      document filed with any regulatory authority (including, without
      limitation, in a prospectus filed in connection with the Offering
      contemplated hereby) or otherwise disseminated by or on behalf of the
      Indemnitor, or in any amendment or supplement thereto;

	 	 	 
	 	(ii) 	
      any breach by the Indemnitor of any term of or any
      representation or warranty in this Agreement or of any agreement or
      instrument relating to the transactions contemplated by this
    Agreement;

	 	 	 
	 	(iii) 	
      any breach or violation or any alleged breach or
      violation of any applicable law or statue or any rule, regulation, policy,
      order or ruling made thereunder, whether in force in Canada or elsewhere,
      resulting from any action taken or omitted to be taken by the Indemnitor
      or any of its directors, officers, agents or employees, as the case may
      be;

	 	 	 
	 	(iv) 	
      any order made or any inquiry, investigation or other
      proceeding announced, instituted or threatened by any securities or other
      regulatory authority or stock exchange, preventing, prohibiting,
      restricting or making impractical the completion of the transactions
      contemplated by this Agreement including, without limitation, the trading
      in any of the Qualifying Provinces in, or distribution to the public in
      any of the Qualifying Provinces of, any of the securities of the
      Indemnitor being offered under this Agreement; or

	 	 	 
	 	(v) 	
      otherwise in connection with the Agents’ participation in
      and acting as Agents in respect of the Offering,

provided that, in the event and to the
extent that a court of competent jurisdiction in a final judgment from which no
appeal can be made or a regulatory authority in a final ruling from which no
appeal can be made shall determine that such Proceedings or Liabilities resulted
from the gross negligence, fraud or wilful misconduct of the Indemnified Party
claiming indemnity, or any of the Agents or their respective employees,
directors, officers, or representatives, or from a breach by such an Indemnified
Party, or any of the Agents or their respective employees, directors, officers,
or representatives, of this Agreement, this indemnity shall not apply.

	 	(b) 	
      The Indemnitor waives any right it may have of first
      requiring an Indemnified Party to proceed against or enforce any other
      right, power, remedy or security or to claim payment from any other person
      before claiming under this indemnity. It is not
necessary for an Indemnified Party to incur expense or make payment
before enforcing such indemnity. 

37

	 	(c) 	
      If any Proceeding is brought, instituted or threatened in
      respect of any Indemnified Party which may result in a claim for
      indemnification under this Agreement, such Indemnified Party shall
      promptly after receiving notice thereof notify the Indemnitor, in writing,
      and the Indemnitor shall be entitled (but not required) to assume conduct
      of the defence thereof and retain counsel on behalf of the Indemnified
      Party who is reasonably satisfactory to the Indemnified Party, to
      represent the Indemnified Party in such Proceeding and the Indemnitor
      shall pay the fees and disbursements of such counsel and all other expense
      of the Indemnified Party relating to such Proceeding as incurred. Failure
      to so notify the Indemnitor shall not relieve the Indemnitor from
      liability except and only to the extent that the failure materially
      prejudices the Indemnitor. If the Indemnitor assumes conduct of the
      defence for an Indemnified Party, the Indemnified Party shall fully
      cooperate in the defence including without limitation the provision of
      documents, appropriate officers and employees to give witness statements,
      attend examinations for discovery, make affidavits, meet with counsel,
      testify and divulge all information reasonably required to defend or
      prosecute the Proceedings.

	 	 	 	 
	 	(d) 	
      In any such Proceeding the Indemnified Party shall have
      the right to employ separate counsel and to participate in the defence
      thereof but the fees and disbursements of such counsel shall be at its
      expense unless:

	 	 	 	 
	 		(i) 	
      the Indemnified Party reasonably determines that there
      are legal defences available to the Indemnified Party that are different
      from or in addition to those available to the Indemnitor or that a
      conflict of interest exists which makes representation by counsel chosen
      by the Indemnitor not advisable;

	 	 	 	 
	 		(ii) 	
      the Indemnitor has not assumed the defence of the
      Proceeding and employed counsel therefor reasonably satisfactory to the
      Indemnified Party within a reasonable period of time after receiving
      notice thereof; or

	 	 	 	 
	 		(iii) 	
      employment of such other counsel has been authorized by
      the Indemnitor;

	 	 	 	 
	 			
      in which event the fees and disbursements of such counsel
      shall be paid by the Indemnitor, provided that the Indemnitor shall only
      be responsible for the fees of a single counsel for all Indemnified
      Parties in such circumstance.

	 	 	 	 
	 	(e) 	
      No admission of liability and no settlement of any
      Proceeding shall be made without the consent of the Indemnified Parties
      affected, such consent not to be unreasonably withheld. No admission of
      liability shall be made by an Indemnified Party without the consent of the
      Indemnitor and the Indemnitor shall not be liable for any settlement of
      any Proceeding made without its consent.

	 	 	 	 
	 	(f) 	
      In order to provide for just and equitable contribution
      in circumstances in which this indemnity would otherwise be available in
      accordance with its terms but is, for any reason not solely attributable
      to any one or more of the Indemnified Parties, held to be unavailable to
      or unenforceable by the Indemnified Parties or enforceable otherwise than
      in accordance with its terms, the Indemnified Parties affected and the
      Indemnitor shall contribute to the aggregate of the Liabilities incurred by all
of such Indemnified Parties in proportions such that such Indemnified Parties
shall be collectively responsible for the portion represented by the percentage
that the total fee actually received by the Agents under this Agreement bears to
the total net proceeds to the Indemnitor of the securities offered under this
Agreement and the Indemnitor shall be responsible for the balance, whether or
not any Proceedings have been instituted against it, provided that the
Indemnified Parties shall not in any event be liable to contribute, in the
aggregate, any amount in excess of the amount of such fee actually received by
the Agents. 

38

	 	(g) 	
      The rights to contribution provided in paragraph (f)
      above shall be in addition to and not in derogation of any other right to
      contribution which the Indemnified Parties may have by statute or
      otherwise at law or in equity. The Indemnitor waives all rights of
      contribution that it may have against any Indemnified Party relating to
      any Liability in respect of which the Indemnitor has agreed to indemnify
      the Indemnified Parties hereunder.

	 	 	 
	 	(h) 	
      Each of the Agents shall act as trustee for its
      affiliates, shareholders, directors, officers, employees and agents of the
      covenants of the Indemnitor described herein with respect to such persons
      and accepts the trust and shall hold and enforce the covenants on behalf
      of such persons.

	 	 	 
	 	(i) 	
      If any Proceeding is brought in connection with the
      transactions contemplated by this Agreement and any of the Agents is
      required to testify in connection therewith or is required to respond to
      procedures designed to discover information relating thereto, it will have
      the right to employ its own counsel in connection therewith, and the fees
      and disbursements of such counsel in connection therewith as well as its
      reasonable fees at the normal per diem rate for its directors, officers,
      employees and agents involved in preparation for and attendance at such
      proceedings or in so responding and any other reasonable costs and
      out-of-pocket expenses incurred by it in connection therewith will be paid
      by the Indemnitor as they are incurred.

	 	 	 
	 	(j) 	
      The obligations under this indemnity shall apply whether
      or not the transactions contemplated by this Agreement are completed and
      shall survive the completion of the transactions contemplated under this
      Agreement and the termination of this
Agreement.

	18. 	
      Expenses

The Corporation shall pay all expenses
and fees in connection with the Offering contemplated by this Agreement,
including, without limitation, all expenses of or incidental to the creation,
issue, sale or distribution of the Offered Units and all expenses of or
incidental to all other matters in connection with the transaction set out in
this Agreement, including, without limitation, the fees and expenses payable in
connection with the qualification of the Offered Units for distribution, the
fees and expenses of the Corporation’s counsel and of local counsel to the
Corporation and/or the Subsidiaries, the reasonable fees and expenses of the
Corporation’s Auditors and the transfer agent for the Common Shares, all costs
incurred in connection with the preparation and printing of the Offering
Documents and certificates representing the Unit Shares, Warrants and
Compensation Options, all reasonable expenses and fees and applicable taxes
thereon incurred by the Agents and their counsel (such fees of counsel not to exceed $100,000 before
taxes and disbursements), whether or not the Offering is completed. 

39 

	19. 	
      Agency Percentages and Agents’ Authority

	 	 
	19.1 	
      The Corporation shall be entitled to and shall act on any
      notice, request, direction, consent, waiver, extension and other
      communication given or agreement entered into by or on behalf of the
      Agents by the Lead Agent and the Lead Agent shall represent the Agents and
      have authority to bind the Agents hereunder. In all cases, the Lead Agent
      shall use its best efforts to consult with the other Agents prior to
      taking any action contemplated herein.

	 	 
	19.2 	
      The sale of the Offered Units in connection with the
      Offering shall be allocated as to the following
  percentages:

	 	RBC Dominion Securities Inc. 	 	75% 	 
	 	MGI Securities Inc. 	 	25% 	 

	20. 	
      Notices

	 	 
		
      Unless otherwise expressly provided in this Agreement,
      any notice or other communication to be given under this Agreement (a
      “notice”) shall be in writing addressed as
  follows:

	 	(a) 	
      If to the Corporation, to:

	 	 	
       

	 	Bridgeport Ventures Inc. 
	 	36
Toronto Street 
	 	Suite 1000 
	 	Toronto, Ontario M5C 2C5 
	 	Fax: 	(416) 350-3510 
	 	Attention:	Shastri
Ramnath, President & CEO 
	 	 	 
	 	with a copy (but not as notice) to: 
	 	 	 
	 	Cassels Brock & Blackwell LLP 
	 	2100 Scotia Plaza 
	 	40 King Street West 
	 	Toronto, Ontario 
	 	M5H 3C2 
	 	Fax:  	(416) 644-9337 
	 	Attention:	Jay Goldman 
	 	 	 

	 	(b) 	
      If to the Agents, to:

	 	 	
       
	 	 	
      RBC Dominion Securities Inc. 
	 	 	
      200
Bay Street 
	 	 	
      Royal Bank Plaza 
	 	 	
      4th Floor, South Tower
	 	 	
      Toronto, Ontario M5J 2W7 
	 	 	
       

40

	 	Fax: 	(416) 842-7527 
	 	Attention: 	Lance Rishor 
	 	 
	 	- and - 
	 	 
	 	MGI Securities Inc. 
	 	26 Wellington Street East, Suite 900 
	 	Toronto, Ontario 
	 	M5E 1S2 
	 	Fax: 	(416) 864-7405 
	 	Attention: 	Daniel C. Hardie 
	 	 
	 	with a copy (but not as notice) to: 
	 	 
	 	Blake, Cassels & Graydon LLP 
	 	595 Burrard Street, PO Box 49314 
	 	Suite 2600, Three Bentall Centre 
	 	Vancouver, British Columbia 
	 	V7X 1L3 
	 	Fax: 	(604) 631-3309 
	 	Attention: 	Bob Wooder 

		
      or to such other address as any of the parties may
      designate by notice given to the others.

	 	 
		
      Each notice shall be personally delivered to the
      addressee or sent by facsimile transmission to the addressee and: (i) a
      notice which is personally delivered shall, if delivered on a Business
      Day, be deemed to be given and received on that day and, in any other
      case, be deemed to be given and received on the first Business Day
      following the day on which it is delivered; and (ii) a notice which is
      sent by facsimile transmission shall be deemed to be given and received on
      the first Business Day following the day on which it is sent.

	 	 
	21. 	
      Time of the Essence

	 	 
		
      Time shall, in all respects, be of the essence
    hereof.

	 	 
	22. 	
      Headings

	 	 
		
      The headings contained herein are for convenience only
      and shall not affect the meaning or interpretation hereof.

	 	 
	23. 	
      Singular and Plural, etc.

	 	 
		
      Where the context so requires, words importing the
      singular number include the plural and vice versa, and words importing
      gender shall include the masculine, feminine and neuter
  genders.

41

	24. 	
      Entire Agreement

	 	 
		
      This Agreement constitutes the only agreement between the
      parties with respect to the subject matter hereof and shall supersede any
      and all prior negotiations and understandings. This Agreement may be
      amended or modified in any respect by written instrument only.

	 	 
	25. 	
      Severability

	 	 
		
      The invalidity or unenforceability of any particular
      provision of this Agreement shall not affect or limit the validity or
      enforceability of the remaining provisions of this Agreement.

	 	 
	26. 	
      Governing Law

	 	 
		
      This Agreement shall be governed by and construed in
      accordance with the laws of the Province of Ontario and the laws of Canada
      applicable therein.

	 	 
	27. 	
      Successors and Assigns

	 	 
		
      The terms and provisions of this Agreement shall be
      binding upon and enure to the benefit of the Corporation and the Agents
      and their respective successors and permitted assigns.

	 	 
	28. 	
      Further Assurances

	 	 
		
      Each of the parties hereto shall do or cause to be done
      all such acts and things and shall execute or cause to be executed all
      such documents, agreements and other instruments as may reasonably be
      necessary or desirable for the purpose of carrying out the provisions and
      intent of this Agreement.

	 	 
	29. 	
      Obligations of the Agents

	 	 
		
      In performing their respective obligations under this
      Agreement, the Agents shall be acting severally and not jointly and
      severally. Nothing in this Agreement is intended to create any
      relationship in the nature of a partnership, or joint venture between the
      Agents.

	 	 
	30. 	
      Effective Date

	 	 
		
      This Agreement is intended to and shall take effect as of
      the date first set forth above, notwithstanding its actual date of
      execution or delivery.

	 	 
	31. 	
      Counterparts and Facsimile Copies

	 	 
		
      This Agreement may be executed in any number of
      counterparts and by facsimile, which taken together shall form one and the
      same agreement.

[The remainder of this page is intentionally left blank]

42 

If the Corporation is in agreement with the foregoing terms and
conditions, please so indicate by executing a copy of this Agreement where
indicated below and delivering the same to the Agents. 

	Yours very truly, 	
	RBC DOMINION SECURITIES INC. 	
	  	  	
	Per: 	“Lance Rishor” 	
		 Authorized Signing
      Officer  	
	MGI SECURITIES INC. 	
	  	  	
	Per: 	“Mark Arthur” 	
		 Authorized Signing
      Officer  	

The foregoing is hereby accepted and agreed to by the
undersigned as of the date first written above.

	BRIDGEPORT VENTURES INC. 	 
	  	  	 
	  	  	 
	  	
       

       
	 
	  	  	 
	Per: 	“Shastri Ramnath” 	 
	  	Authorized Signing Officer 	 

SCHEDULE “A”

COMPLIANCE WITH UNITED STATES SECURITIES LAWS

As used in this Schedule “A”, capitalized terms used herein and
not defined herein shall have the meaning ascribed thereto in the agency
agreement between Bridgeport Ventures Inc. and the Agents named therein, dated
December •, 2010, to which this schedule is annexed and the following terms
shall have the meanings indicated: 

	 	(a) 	
      “Directed Selling Efforts” means “directed selling
      efforts” as that term is defined in Regulation S. Without limiting the
      foregoing, but for greater clarity in this schedule, it means, subject to
      the exclusions from the definition of directed selling efforts contained
      in Regulation S, any activity undertaken for the purpose of, or that could
      reasonably be expected to have the effect of, conditioning the market in
      the United States for any of the Offered Units, the Unit Shares, the
      Warrants or the Warrant Shares and includes the placement of any
      advertisement in a publication with a general circulation in the United
      States that refers to the offering of the Offered Units, the Unit Shares,
      the Warrants or the Warrant Shares;

	 	 	 
	 	(b) 	
      “General Solicitation” and “General
      Advertising” means “general solicitation” and “general
      advertising” as used in Rule 502(c) under the U.S. Securities Act,
      including, but not limited to, advertisements, articles, notices or other
      communications published in any newspaper, magazine or similar media or on
      the internet or broadcast over radio, television or the internet, or any
      seminar or meeting whose attendees had been invited by general
      solicitation or general advertising;

	 	 	 
	 	(c) 	
      “Institutional Accredited Investor” means an
      “institutional accredited investor” that satisfies one or more of the
      criteria of Rule 501(a)(1), (2), (3) or (7) of Regulation D;

	 	 	 
	 	(d) 	
      “Regulation D” means Regulation D adopted by the
      SEC under the U.S. Securities Act;

	 	 	 
	 	(e) 	
      “Regulation S” means Regulation S adopted by the
      SEC under the U.S. Securities Act;

	 	 	 
	 	(f) 	
      “SEC” means the United States Securities and
      Exchange Commission; and

	 	 	 
	 	(g) 	
      “Substantial U.S. Market Interest” means
      “substantial U.S. market interest” as that term is defined in Regulation
      S.

Representations, Warranties and Covenants of the
Agents 

Each of the Agents, severally but not jointly, acknowledges
that the Offered Units, the Unit Shares, the Warrants and the Warrant Shares
have not been and will not be registered under the U.S. Securities Act and
applicable state securities laws, and the Offered Units may only be offered or
sold to, for the account or benefit of, any persons in the United States or U.S.
Persons, pursuant to an exemption from the registration requirements of the U.S.
Securities Act and applicable state securities laws. Accordingly, each of the
Agents, severally but not jointly, represents, warrants and covenants to the
Corporation that: 

A-2

	1. 	
      It has not offered, and will not offer, any Offered
      Units, Unit Shares or Warrants except (a) in an “offshore transaction”, as
      such term is defined in Regulation S, in accordance with Rule 903 of
      Regulation S or (b) to, or for the account or benefit of, persons in the
      United States or U.S. Persons as provided in sections 2 through 11 below.
      Accordingly, none of the Agent, its U.S. Affiliate or any persons acting
      on its or their behalf, has made or will make (except as permitted in
      sections 2 through 11 below) (i) any offer to sell, or any solicitation of
      an offer to buy, any Offered Units to, or for the account or benefit of,
      any person in the United States or a U.S. Person, (ii) any sale of Offered
      Units to any purchaser unless, at the time the buy order was or will have
      been originated, the purchaser was outside the United States, not a U.S.
      Person and not acting for the account or benefit of a person in the United
      States or a U.S. Person, or the Agent reasonably believed that such
      purchaser was outside the United States, not a U.S. Person and not acting
      for the account or benefit of a person in the United States or a U.S.
      Person, or (iii) any Directed Selling Efforts.

	 	 
	2. 	
      It has not entered and will not enter into any
      contractual arrangement with respect to the distribution of the Offered
      Units, except with its U.S. Affiliate, any selling group members or with
      the prior written consent of the Corporation. It shall require each
      selling group member to agree, for the benefit of the Corporation, to
      comply with, and shall use its best efforts to ensure that each selling
      group member complies with, the same provisions of this Schedule “A” as
      apply to the Agent as if such provisions applied to such selling group
      member.

	 	 
	3. 	
      All offers and sales of Offered Units in the United
      States or to U.S. Persons shall be made through its U.S. Affiliate, which
      is and will be as of the date of each offer and sale a duly registered
      broker-dealer with the SEC and in each applicable state where an offer or
      sale is made (unless exempted from such state’s broker-dealer registration
      requirements) and is and will be as of the date of each offer and sale a
      member of, and in good standing with, the Financial Industry Regulatory
      Authority, Inc., in compliance with all applicable United States federal
      and state broker-dealer requirements.

	 	 
	4. 	
      Offers of Offered Units, Unit Shares and Warrants to, or
      for the account or benefit of, persons in the United States or U.S.
      Persons shall not be made (i) by any form of General Solicitation or
      General Advertising, or (ii) in any manner involving a public offering
      within the meaning of Section 4(2) of the U.S. Securities Act.

	 	 
	5. 	
      Any offer or solicitation of an offer to buy Offered
      Units that has been made or will be made to, or for the account or benefit
      of, any person in the United States or a U.S. Person was or will be made
      only to Institutional Accredited Investors in transactions that are exempt
      from registration under the U.S. Securities Act pursuant to Rule 506 of
      Regulation D and applicable state securities laws.

	 	 
	6. 	
      The Agent acting through its U.S. Affiliate may offer the
      Offered Units only to, or for the account or benefit of, persons in the
      United States or U.S. Persons with respect to which the Agent has a
      pre-existing relationship and has reasonable grounds to believe, and did
      believe, are Institutional Accredited Investors.

	 	 
	7. 	
      It will deliver, through its U.S. Affiliate, a copy of
      the U.S. Private Placement Memorandum, including the Preliminary
      Prospectus and/or Final Prospectus, to each person in the United States,
      U.S. Persons or persons acting for the account or benefit of persons in
      the United States or U.S. Persons purchasing Offered Units. Prior to the
      completion of any sale of Offered Units to, or for the account or
benefit of, U.S. Persons or persons in the United States, each such purchaser
will be informed that the Offered Units have not been and will not be registered
under the U.S. Securities Act or applicable state securities laws and are being
offered to such purchaser in reliance on exemptions from the registration
requirements of the U.S. Securities Act provided by Rule 506 of Regulation D and
applicable state securities registration requirements. Prior to completion of
any sale of Offered Units to, or for the account or benefit of, persons in the
United States or a U.S. Person, each U.S. purchaser thereof will be required to
execute a subscription agreement, in the form attached to the final U.S. Private
Placement Memorandum. 

A-3

	8. 	
      At least one Business Day prior to the Closing Time, it
      will provide the Corporation with a list of all purchasers of the Offered
      Units that (i) are in the United States, (ii) are U.S. Persons, (iii) were
      offered Offered Units, Unit Shares or Warrant Shares in the United States,
      and (iv) are purchasing for account or benefit of a person in the United
      States or a U.S. Person.

	 	 
	9. 	
      Each purchaser of Offered Units in the United States ,
      that is a U.S. Person or is purchasing for the account or benefit of a
      person in the United States or a U.S. Person shall be provided with a U.S.
      Private Placement Memorandum including the Preliminary Prospectus and the
      Final Prospectus.

	 	 
	10. 	
      The Agent agrees that at the Closing Time, it, together
      with its U.S. Affiliate will provide a certificate, substantially in the
      form of Annex I to this Schedule “A” relating to the manner of the offer
      and sale of the Offered Units to persons in the United States or U.S.
      Persons or such persons will be deemed to represent and warrant to the
      Corporation that no offers or sales were made to, or for the account or
      benefit of, persons in the United States or U.S. Persons.

	 	 
	11. 	
      During the period in which the Offered Units, the Unit
      Shares or the Warrants are offered for sale, none of the Agent, its
      affiliates, or any person acting on its or their behalf has taken or will
      take any action in violation of Regulation M under the United States
      Securities Exchange Act of 1934, as amended, in connection with the offer
      and sale of the Offered Units, the Unit Shares or the
  Warrants.

Representations, Warranties and Covenants of the
Corporation

The Corporation represents, warrants, covenants and agrees
that: 

	1. 	
      The Corporation is a “foreign issuer” (as such term is
      defined in Regulation S) and reasonably believes that there is no
      Substantial U.S. Market Interest in the Offered Units, the Unit Shares or
      the Warrants or in any class of equity securities of the
    Corporation.

	 	 
	2. 	
      The Corporation is not, and as a result of the sales of
      the Offered Units contemplated hereby will not be, an “investment company”
      as such term is defined in the United States Investment Company Act of
      1940, as amended, registered or required to be registered under such
      Act.

	 	 
	3. 	
      Except with respect to offers and sales to Institutional
      Accredited Investors in reliance upon an exemption from registration
      available under Rule 506 of the U.S. Securities Act, none of the
      Corporation, its affiliates, or any person acting on its or their behalf
      (other than the Agents, the U.S. Affiliates, their respective affiliates
      or any person acting on its or their behalf, in respect of which no
representation is made), has made or will make: (A) any offer to sell, or any
solicitation of an offer to buy, any Offered Units to, or for the account or
benefit of, a person in the United States or a U.S. Person; or (B) any sale of
Offered Units unless, at the time the buy order was or will have been
originated, (i) the purchaser is outside the United States, not a U.S. Person
and not purchasing for the account or benefit of a person in the United States
or a U.S. Person or (ii) the Corporation, its affiliates, and any person acting
on their behalf reasonably believe that the purchaser is outside the United
States, not a U. S. Person and not acting for the account or benefit of a person
in the United States or a U. S. Person.

A-4

	4. 	
      During the period in which Offered Units are offered for
      sale, none of it, its affiliates, or any person acting on its or their
      behalf (other than the Agents, the U.S. Affiliates, their respective
      affiliates or any person acting on their behalf, in respect of which no
      representation is made) has engaged in or will engage in any Directed
      Selling Efforts or has taken or will take any action that would cause the
      exemption afforded by Rule 506 of the U.S. Securities Act to be
      unavailable for offers and sales of Offered Units to, or for the account
      or benefit of, persons in the United States or U.S. Persons in accordance
      with this Schedule “A”, or the exclusion from registration afforded by
      Rule 903 of Regulation S to be unavailable for offers and sale of Offered
      Units outside the United States to non-U.S. Persons in accordance with
      this Agency Agreement.

	 	 
	5. 	
      None of the Corporation, any of its affiliates or any
      person acting on its or their behalf (other than the Agents, the U.S.
      Affiliates, their respective affiliates or any person acting on its or
      their behalf, in respect of which no representation is made) has offered
      or will offer to sell, or has solicited or will solicit offers to buy,
      Offered Units, Unit Shares or Warrants to, or for the account or benefit
      of, persons in the United States or U.S. Persons by means of any form of
      General Solicitation or General Advertising or in any manner involving a
      public offering within the meaning of Section 4(2) of the U.S. Securities
      Act.

	 	 
	6. 	
      Except with respect to the offer and sale of the Offered
      Units offered hereby, the Corporation has not, for a period of six months
      prior to the date hereof sold, offered for sale or solicited any offer to
      buy any of its securities in the United States or to any U.S. Person in a
      manner that would be integrated with the offer and sale of the Offered
      Units and would cause the exemption from registration set forth in Rule
      506 of Regulation D to become unavailable with respect to the offer and
      sale of the Offered Units, the Unit Shares or the Warrants.

	 	 
	7. 	
      During the period in which the Offered Units, the Unit
      Shares or the Warrants are offered for sale, none of it, its affiliates,
      or any person acting on its or their behalf (other than the Agents, their
      respective affiliates and any person acting on their behalf, in respect of
      which no representation, warranty, covenant or agreement is made) has
      taken or will take any action in violation of Regulation M under the
      United States Securities Exchange Act of 1934, as amended, in connection
      with the offer and sale of the Offered Units, the Unit Shares or the
      Warrants.

	 	 
	8. 	
      None of the Corporation or any of its predecessors or
      affiliates has been subject to any order, judgment or decree of any court
      of competent jurisdiction temporarily, preliminary or permanently
      enjoining such person for failure to comply with Rule 503 of Regulation
      D.

ANNEX I TO SCHEDULE “A”

AGENT’S CERTIFICATE 

In connection with the private placement in the United States
of units (the “Offered Units”) of Bridgeport Ventures Inc. (the
“Corporation”) pursuant to the agency agreement dated as of December •,
2010 between the Corporation and the Agents named therein (the “Agency
Agreement”), each of the undersigned does hereby certify as follows: 

	 	(i) 	
      The U.S. Affiliate is a duly registered broker or dealer
      with the United States Securities and Exchange Commission and pursuant to
      Section 15(b) of the United States Securities Exchange Act of 1934, as
      amended, and under the securities laws of each state in which such offers
      and sales were made (unless exempted from the respective state’s
      broker-dealer registration requirements) and is a member in good standing
      with the Financial Industry Regulatory Authority, Inc.;

	 	 	 
	 	(ii) 	
      all offers and sales of Offered Units to, or for the
      account or benefit of, persons in the United States or U.S. Persons were
      made through the U.S. Affiliate in accordance with all applicable United
      States federal and state securities laws and regulations governing the
      registration and conduct of securities brokers and dealers;

	 	 	 
	 	(iii) 	
      immediately prior to offering Offered Units to, or for
      the account or benefit of, persons in the United States or U.S. Persons
      (each such person, an “Offeree”) we had reasonable grounds to
      believe and did believe that each such Offeree was an Institutional
      Accredited Investor and, on the date hereof, we continue to believe that
      each Offeree purchasing Offered Units through us is an Institutional
      Accredited Investor;

	 	 	 
	 	(iv) 	
      no form of General Solicitation or General Advertising
      was used by us in connection with the offer of the Offered Units, Unit
      Shares or Warrants to Offerees;

	 	 	 
	 	(v) 	
      the offering of the Offered Units, the Unit Shares and
      the Warrants to Offerees has been conducted by us through the U.S.
      Affiliate in accordance with the Agency Agreement, including Schedule “A”
      hereto;

	 	 	 
	 	(vi) 	
      each Offeree was provided with a copy of the U.S. private
      placement memorandum, including the Final Prospectus (as such term is
      defined in the Agency Agreement) relating to the offering of the Offered
      Units, the Unit Shares and the Warrants (the “U.S. Private Placement
      Memorandum”); and

	 	 	 
	 	(vii) 	
      prior to the sale of Offered Units to Offerees, we caused
      each such Offeree to execute a subscription agreement in the form included
      as Exhibit A in the final U.S. Private Placement
  Memorandum.

A-2

Capitalized terms not defined herein shall have the meanings
prescribed to them in the Agency Agreement, including Schedule “A” thereto, to
which this Agent’s Certificate is attached. 

	DATED as of this ___ day of < >, 2010.
    	  	 	 
	 	 	 	 
	[NAME OF AGENT] 	 	[NAME OF U.S. AFFILIATE]

	 	 	 
	By: 	 
    	 	By: 	 	 
	 	Authorized Signing
    Officer  	 	 	Authorized Signing OfficerBridgeport Ventures Inc.: Exhibit 4.24 -  Filed by newsfilecorp.com

Exhibit 4.24

BRIDGEPORT VENTURES INC. 

and 

VALIANT TRUST COMPANY

_______________________________________________________________________________

AMENDED AND RESTATED 

WARRANT INDENTURE 

_______________________________________________________________________________

Providing for the Issue of up to 9,142,500 Warrants 

Dated as of December 20, 2010

TABLE OF CONTENTS 

	  	  	Page 
	  	  	  
	ARTICLE 1 INTERPRETATION 	2 
	     1.1 	DEFINITIONS 	2 
	     1.2 	MEANING OF “OUTSTANDING” FOR CERTAIN PURPOSES
    	5 
	     1.3 	CERTAIN RULES OF INTERPRETATION
    	6 
	     1.4 	INTERPRETATION NOT AFFECTED BY HEADINGS, ETC
	6 
	     1.5 	APPLICABLE LAW 	6 
	     1.6 	LANGUAGE CLAUSE 	7 
	     1.7 	DAY NOT A BUSINESS DAY 	7 
	     1.8 	CONFLICT 	7 
	     1.9 	TIME OF THE ESSENCE 	7 
	     1.10 	CURRENCY 	7 
	     1.11 	SCHEDULES 	   
             7 
	ARTICLE 2 ISSUE OF WARRANTS 	       
         7 
	     2.1 	CREATION AND ISSUE OF WARRANTS
    	   
             7 
	     2.2 	TERMS OF WARRANTS 	       
         7 
	     2.3 	WARRANT CERTIFICATES 	   
             8 
	     2.4 	SIGNING OF WARRANT CERTIFICATES 	       
         8 
	     2.5 	COUNTERSIGNATURE BY THE WARRANT
      AGENT 	   
             8 
	     2.6 	HOLDER NOT A SHAREHOLDER 	       
         9 
	     2.7 	ISSUE IN SUBSTITUTION FOR LOST
      WARRANT CERTIFICATE 	   
             9 
	     2.8 	REGISTER FOR WARRANTS 	       
         9 
	     2.9 	TRANSFER OF WARRANTS 	   
             9 
	     2.10 	TRANSFEREE ENTITLED TO REGISTRATION 	       
         10 
	     2.11 	REGISTERS OPEN FOR INSPECTION
    	   
             10 
	     2.12 	OWNERSHIP OF WARRANTS 	       
         10 
	     2.13 	EXCHANGE OF WARRANT
      CERTIFICATES 	   
             11 
	     2.14 	ISSUE OF GLOBAL CERTIFICATES 	       
         10 
	     2.15 	TRANSFER OF WARRANTS 	   
             11 
	ARTICLE 3 EXERCISE OF WARRANTS 	       
         15 
	     3.1 	RIGHTS OF EXERCISE OF WARRANTS
    	   
             15 
	     3.2 	METHOD OF EXERCISE OF WARRANTS 	       
         15 
	     3.3 	EFFECT OF EXERCISE OF WARRANTS
    	   
             16 
	     3.4 	PARTIAL EXERCISE OF WARRANTS 	       
         16 
	     3.5 	CANCELLATION OF WARRANTS 	   
             16 
	     3.6 	WARRANTS VOID AFTER THE EXPIRY TIME 	       
         17 
	     3.7 	ACCOUNTING AND RECORDING 	   
             17 
	     3.8 	SECURITIES RESTRICTIONS 	       
         17 
	ARTICLE 4 ADJUSTMENT OF NUMBER
      OF COMMON SHARES 	   
             17 
	     4.1 	ADJUSTMENT UPON COMMON SHARE REORGANIZATION OR
      CAPITAL REORGANIZATION 	       
         17 
	     4.2 	ADJUSTMENT UPON RIGHTS OFFERING
    	   
             19 
	     4.3 	ENTITLEMENT TO SHARES AND OTHER SECURITIES ON
      EXERCISE OF WARRANTS 	       
         21 
	     4.4 	NO ADJUSTMENT FOR STOCK
      OPTIONS, ETC. 	   
             21 
	     4.5 	DETERMINATION BY CORPORATION’S AUDITORS 	       
         22 
	     4.6 	PROCEEDINGS PRIOR TO ANY ACTION
      REQUIRING ADJUSTMENT 	   
             22 
	     4.7 	ACTION REQUIRING ADJUSTMENT 	       
         22 
	     4.8 	CERTIFICATE OF ADJUSTMENT 	   
             22 
	     4.9 	NOTICE OF SPECIAL MATTERS 	       
         22 

ii 

	     4.10 	NO ACTION AFTER NOTICE 	22 
	     4.11 	PROTECTION OF WARRANT AGENT 	23 
	     4.12 	ADJUSTMENTS CUMULATIVE 	23 
	ARTICLE 5 PURCHASES BY THE CORPORATION 	23 
	     5.1 	OPTIONAL PURCHASE BY THE
      CORPORATION 	23 
	ARTICLE 6 COVENANTS OF THE CORPORATION 	24 
	     6.1 	ISSUANCE OF COMMON SHARES 	24 
	     6.2 	NO AMENDMENT TO COMMON SHARES 	24 
	     6.3 	TO PAY WARRANT AGENT
      REMUNERATION AND EXPENSES 	24 
	     6.4 	TO PERFORM COVENANTS 	25 
	     6.5 	WARRANT AGENT MAY PERFORM
      COVENANTS 	25 
	     6.6 	CERTIFICATES OF NO DEFAULT 	25 
	     6.7 	SOLICITATION OF WARRANT
      EXERCISE 	25 
	     6.8 	SECURITIES QUALIFICATION REQUIREMENTS 	25 
	ARTICLE 7 ENFORCEMENT 	26 
	     7.1 	SUITS BY HOLDERS OF WARRANTS 	26 
	     7.2 	WAIVER OF DEFAULT 	26 
	ARTICLE 8 SUCCESSOR CORPORATIONS 	26 
	     8.1 	CERTAIN REQUIREMENTS 	26 
	     8.2 	VESTING OF POWERS IN SUCCESSOR 	27 
	ARTICLE 9 MEETINGS OF HOLDERS
      OF WARRANTS 	27 
	     9.1 	RIGHT TO CONVENE MEETING 	27 
	     9.2 	NOTICE OF MEETINGS 	27 
	     9.3 	CHAIRMAN 	27 
	     9.4 	QUORUM 	27 
	     9.5 	POWER TO ADJOURN 	28 
	     9.6 	SHOW OF HANDS 	28 
	     9.7 	POLL 	28 
	     9.8 	VOTING 	28 
	     9.9 	REGULATIONS 	28 
	     9.10 	CORPORATION AND WARRANT AGENT
      MAY BE REPRESENTED 	29 
	     9.11 	POWERS EXERCISABLE BY EXTRAORDINARY RESOLUTION
    	29 
	     9.12 	MEANING OF “EXTRAORDINARY
      RESOLUTION” 	30 
	     9.13 	POWERS CUMULATIVE 	30 
	     9.14 	MINUTES 	30 
	     9.15 	INSTRUMENTS IN WRITING 	31 
	     9.16 	BINDING EFFECT OF RESOLUTIONS
    	31 
	ARTICLE 10 NOTICES 	31 
	     10.1 	NOTICE TO THE CORPORATION AND
      THE WARRANT AGENT 	31 
	     10.2 	NOTICE TO HOLDERS OF WARRANTS 	32 
	     10.3 	MAIL SERVICE INFORMATION 	32 
	ARTICLE 11 CONCERNING THE WARRANT AGENT
	33 
	     11.1 	WARRANT INDENTURE LEGISLATION
    	33 
	     11.2 	NO CONFLICT OF INTEREST 	33 
	     11.3 	REPLACEMENT OF WARRANT AGENT
	33 
	     11.4 	EVIDENCE, EXPERTS AND ADVISERS 	34 
	     11.5 	WARRANT AGENT MAY DEAL IN
      SECURITIES 	34 
	     11.6 	WARRANT AGENT NOT ORDINARILY BOUND 	34 
	     11.7 	WARRANT AGENT NOT REQUIRED TO
      GIVE SECURITY 	35

iii 

	     11.8 	WARRANT AGENT NOT REQUIRED TO
      GIVE NOTICE OF DEFAULT 	35 
	     11.9 	ACCEPTANCE OF APPOINTMENT 	35 
	     11.10 	DUTIES OF WARRANT AGENT 	35 
	     11.11 	ACTIONS BY WARRANT AGENT 	35 
	     11.12 	PROTECTION OF WARRANT AGENT 	36 
	     11.13 	INDEMNIFICATION OF THE WARRANT AGENT 	36 
	     11.14 	THIRD PARTY INTERESTS 	36 
	     11.15 	NOT BOUND TO ACT 	36 
	     11.16 	PRIVACY LAWS 	37 
	ARTICLE 12 SUPPLEMENTAL INDENTURES 	37 
	     12.1 	SUPPLEMENTAL INDENTURES 	37 
	ARTICLE 13 GENERAL PROVISIONS 	38 
	     13.1 	EXECUTION 	38 
	     13.2 	FORMAL DATE 	38 
	     13.3 	SATISFACTION AND DISCHARGE OF
      INDENTURE 	38 
	     13.4 	PROVISIONS OF INDENTURE AND WARRANTS FOR THE
      SOLE BENEFIT OF PARTIES AND HOLDERS 	39 

	SCHEDULES 	  	  
	Schedule “A” 	- 	Form of Warrant Certificate
  

WARRANT INDENTURE 

THIS INDENTURE made as of December 20, 2010, 

BETWEEN: 

BRIDGEPORT VENTURES INC., 
a
company incorporated under the laws of Ontario (the “Corporation”) 

AND 

VALIANT TRUST COMPANY 
a
company continued under the federal laws of Canada (the “Warrant Agent”)

WHEREAS: 

	A. 	
      All capitalized terms used in these recitals have the
      meanings ascribed to them in section 1.1 below;

	 	 
	B. 	
      The Corporation proposes to complete a secondary offering
      pursuant to which it will issue up to 18,285,000 Units (inclusive of
      1,035,000 Units to be issued upon exercise of certain broker warrants to
      be issued pursuant to such offering), each Unit consisting of one Common
      Share and one-half of one Warrant, all as further set forth in the Agency
      Agreement;

	 	 
	C. 	
      Each Warrant shall entitle the Holder thereof to receive,
      upon payment of the Exercise Price, and subject to adjustment and
      penalties in certain circumstances, one Common Share at any time prior to
      the Expiry Time upon the terms and conditions herein set forth;

	 	 
	D. 	
      The Corporation is duly authorized to create and issue
      the Warrants to be issued as herein provided;

	 	 
	E. 	
      All things necessary have been done and performed to make
      the Warrants, when issued as provided in this Indenture, legal, valid and
      binding upon the Corporation with the benefits of and subject to the terms
      of this Indenture;

	 	 
	F. 	
      The foregoing recitals are made as representations and
      statements of fact by the Corporation and not by the Warrant Agent;
    and

	 	 
	G. 	
      the Warrant Agent has agreed to act as the Warrant Agent
      in respect of the Warrants on behalf of the Holders on the terms and
      conditions herein set forth;

NOW THEREFORE THIS INDENTURE WITNESSES that for good and
valuable consideration mutually given and received, the receipt and sufficiency
of which are hereby acknowledged, it is hereby agreed and declared as follows:

2 

ARTICLE 1 
INTERPRETATION 

	1.1 	
      DEFINITIONS

In this Indenture, including the recitals and schedules hereto,
the following words and phrases shall have the following meanings: 

	 	(a) 	
      “Acquiring person” shall have the meaning ascribed
      thereto in subsection 4.1(c)(i);

	 	 	 
	 	(b) 	
      “Agency Agreement” means the agency agreement
      between the Agents and the Corporation dated as of December 13, 2010 in
      respect of the sale of the Units;

	 	 	 
	 	(c) 	
      “Agents” means RBC Dominion Securities Inc. and
      MGI Securities Inc.;

	 	 	 
	 	(d) 	
      “Beneficial Owners” means a person that has a
      beneficial interest in a Warrant that is represented by a Global
      Certificate;

	 	 	 
	 	(e) 	
      “Business Day” means any day (other than a
      Saturday, Sunday or statutory holiday) on which the principal transfer
      office of the Warrant Agent in Toronto, Ontario is open for
    business;

	 	 	 
	 	(f) 	
      “Capital Reorganization” shall have the meaning
      ascribed thereto in subsection 4.1(3(a);

	 	 	 
	 	(g) 	
      “Common Share Reorganization” shall have the
      meaning ascribed thereto in subsection 4.1(1);

	 	 	 
	 	(h) 	
      “Common Shares” means the fully paid and
      non-assessable common shares in the capital of the Corporation as such
      common shares are presently constituted, and “Common Share” means
      any one of them;

	 	 	 
	 	(i) 	
      “Convertible Security” means a security of the
      Corporation (other than the Warrants) or of any other issuer convertible
      into or exchangeable for or otherwise carrying the right to acquire Common
      Shares;

	 	 	 
	 	(j) 	
      “Corporation” means Bridgeport Ventures Inc. and
      includes any Successor Corporation to or of Bridgeport Ventures Inc. which
      has complied with the provisions of Article 8;

	 	 	 
	 	(k) 	
      “Corporation's Auditors” means an independent firm
      of chartered accountants duly appointed as auditors of the
    Corporation;

	 	 	 
	 	(l) 	
      “Current Market Price” at any date, means the
      volume weighted average price per Common Share at which the Common Shares
      have traded:

	 	(i) 	
      on the TSXV (including the NEX board of the
  TSXV);

	 	 	 
	 	(ii) 	
      on the TSX;

	 	 	 
	 	(iii) 	
      if the Common Shares are not listed on the TSX or TSXV
      (or the NEX board of the TSXV), on any stock exchange upon which the
      Common Shares are listed as may be selected for this purpose by the
      Directors and approved by the Warrant Agent;
or

3 

	 	(iv) 	
      if the Common Shares are not listed on any stock
      exchange, on any over-the- counter market as may be selected for this
      purpose by the Directors and approved by the Warrant
  Agent;

during the last twenty trading days (on
which at least 500 Common Shares are traded in board lots) ending the fifth
trading day before such date, and the volume weighted average price shall be
determined by dividing the aggregate sale price of all Common Shares traded on
the exchange or market, as the case may be, during such twenty consecutive
trading days by the aggregate number of Common Shares sold; 

	 	(m) 	
      “Default Notice” shall have the meaning ascribed
      thereto in Section 6.3;

	 	 	 
	 	(n) 	
      “Depository” means CDS Clearing and Depository
      Services Inc. (“CDS”), or its successor, or any other depository
      offering a book based securities registration and transfer system similar
      to that administered by CDS which the Company, with the consent of the
      Warrant Agent, acting reasonably, may designate;

	 	 	 
	 	(o) 	
      “Designated Provinces” means each of the provinces
      of Canada other than Québec being the jurisdictions agreed to between the
      Corporation and the Agents where Units are to be sold;

	 	 	 
	 	(p) 	
      “Director” means a director of the Corporation and
      “Directors” or “Board of Directors” means the board of
      directors of the Corporation or, whenever duly empowered, a committee of
      the board of directors of the Corporation, and reference to “action by
      the directors” means action by the directors of the Corporation as a
      board or action by a committee as a committee;

	 	 	 
	 	(q) 	
      “dividends” means dividends or distributions
      (payable in cash or in securities, property or assets of equivalent value)
      declared payable on the Common Shares;

	 	 	 
	 	(r) 	
      “Equity Shares” means the Common Shares and any
      shares of any other class or series of the Corporation which may from time
      to time be authorized for issue if by their terms such shares confer on
      the holders thereof the right to participate in the distribution of assets
      upon the voluntary or involuntary liquidation, dissolution or winding up
      of the Corporation beyond a fixed sum or a fixed sum plus accrued
      dividends;

	 	 	 
	 	(s) 	
      “Exercise Date” means, with respect to any
      Warrant, the date on which the Warrant Certificate representing such
      Warrant is surrendered by a Holder for exercise in accordance with the
      provisions of Article 3;

	 	 	 
	 	(t) 	
      “Exercise Form” has the meaning ascribed thereto
      in subsection 3.2(1);

	 	 	 
	 	(u) 	
      “Exercise Price” shall have the meaning ascribed
      thereto in subsection 3.2(1);

	 	 	 
	 	(v) 	
      “Expiry Date” means, with respect to any Warrant,
      December 20, 2012;

	 	 	 
	 	(w) 	
      “Expiry Time” means 5:00 p.m. (Toronto time) on
      the Expiry Date;

	 	 	 
	 	(x) 	
      “Extraordinary Resolution” has the meaning
      ascribed thereto in sections 9.12 and 9.15;

	 	 	 
	 	(y) 	
      “Global Certificate” means a Warrant Certificate
      that is registered in the name of the Depository or its nominee pursuant
      to Section 2.14 for the purpose of being held by or on behalf of the
      Depository as custodian for Participants and Beneficial
  Owners;

4 

	 	(z) 	
      “Holder” means a person for the time being who is
      the registered holder of a Warrant;

	 	 	 
	 	(aa) 	
      “Holders' Request” means an instrument signed in
      one or more counterparts by Holders entitled to acquire in the aggregate
      not less than 20% of the aggregate number of Common Shares which could be
      acquired pursuant to the exercise of all Warrants then unexercised and
      outstanding, requesting the Warrant Agent to take some action or
      proceeding specified therein;

	 	 	 
	 	(bb) 	
      “Indenture” or “this Indenture” and
      “hereto”, “herein”, “hereby”, “hereunder”,
      “hereof” and similar expressions refer to this instrument and not
      to any particular Article, section, clause, subdivision or other portion
      hereof, and include each instrument supplemental or ancillary hereto or
      required to implement this instrument;

	 	 	 
	 	(cc) 	
      “Indenture Legislation” has the meaning ascribed
      thereto in subsection 11.1(1);

	 	 	 
	 	(dd) 	
      “Offered Shares” shall have the meaning ascribed
      thereto in subsection 4.2(1)(a);

	 	 	 
	 	(ee) 	
      “Officers' Certificate” means a certificate signed
      by any one or more of the officers or Directors of the
  Corporation;

	 	 	 
	 	(ff) 	
      “Participant” means a person recognized by the
      Depository as a participant in the book entry only securities registration
      and transfer system administered by the Depository;

	 	 	 
	 	(gg) 	
      “Person” includes any individual, corporation,
      company, partnership, association, joint venture, trust, unincorporated
      association, government or governmental authority;

	 	 	 
	 	(hh) 	
      “Privacy Laws” has the meaning ascribed thereto in
      Section 11.16;

	 	 	 
	 	(ii) 	
      “Securities Commissions” means the securities
      regulatory authority in each of the Designated Provinces;

	 	 	 
	 	(jj) 	
      “Regulation S” means Regulation S promulgated
      under the U.S. Securities Act;

	 	 	 
	 	(kk) 	
      “Rights Offering” shall have the meaning ascribed
      thereto in subsection 4.2(1)(a);

	 	 	 
	 	(ll) 	
      “Securities Laws” means, as applicable, the
      securities laws, regulations, rules, rulings and orders in each of the
      Provinces of Canada in which Subscribers reside, the applicable policy
      statements issued by the securities regulators in each of the Provinces of
      Canada in which Subscribers reside, and the rules of the TSXV;

	 	 	 
	 	(mm) 	
      “Special Distribution” shall have the meaning
      ascribed thereto in subsection 4.2(2)(a);

	 	 	 
	 	(nn) 	
      “Subscribers” means, collectively, all of the
      Persons who have subscribed for Units and “Subscriber” means any
      one of them;

	 	 	 
	 	(oo) 	
      “Subsidiary” means any corporation of which more
      than 50% of the votes attached to the outstanding voting shares are owned
      by or for the Corporation or by or for any corporation in like relation to
      the Corporation and includes any corporation in like relation to a
      Subsidiary;

	 	 	 
	 	(pp) 	
      “Successor Corporation” has the meaning ascribed
      thereto in section 8.1;

	 	 	 
	 	(qq) 	
      “TSX” means the Toronto Stock
  Exchange;

5 

	 	(rr) 	
      “TSXV” means the TSX Venture Exchange;

	 	 	 
	 	(ss) 	
      “Underlying Securities” means the Common Shares
      underlying the Warrants;

	 	 	 
	 	(tt) 	
      “Unit” means a unit of the Corporation issued in
      accordance with the terms of the Agency Agreement, each such Unit
      consisting of one Common Share and one-half of one Warrant;

	 	 	 
	 	(uu) 	
      “United States” means the United States of
      America, its territories and possessions, any state of the United States
      and the District of Colombia;

	 	 	 
	 	(vv) 	
      “U.S. Institutional Accredited Investor” means an
      institutional accredited investor that satisfies one or more of the
      criteria set forth in Rule 501(a)(1), (2), (3) or (7) of Regulation D
      under the U.S. Securities Act;

	 	 	 
	 	(ww) 	
      “U.S. Person” means a “U.S. person” as such term
      is defined in Regulation S under the U.S. Securities Act;

	 	 	 
	 	(xx) 	
      “U.S. Securities Act” means the United States
      Securities Act of 1933, as amended;

	 	 	 
	 	(yy) 	
      “Warrant Agent” means Valiant Trust Company or its
      successor or successors for the time being as Warrant Agent hereunder, at
      its principal office in the City of Toronto, Ontario;

	 	 	 
	 	(zz) 	
      “Warrant Certificate” means a certificate in
      substantially the form set out in Schedule “A” hereto, issued hereunder to
      evidence one or more Warrants;

	 	 	 
	 	(aaa) 	
      “Warrants” means the fully-paid warrants of the
      Corporation issued hereunder and for the time being outstanding entitling
      registered holders thereof to acquire, upon the valid exercise thereof and
      subject to adjustment in certain circumstances, one Common Share in
      accordance with the terms hereof, and “Warrant” means any one of
      them;

	 	 	 
	 	(bbb) 	
      “Warrant Agency” means the principal transfer
      office of the Warrant Agent in the City of Toronto, Ontario and such other
      locations as the Corporation may designate with the approval of the
      Warrant Agent;

	 	 	 
	 	(ccc) 	
      “written order of the Corporation”, “written
      request of the Corporation”, “written consent of the
      Corporation” and “certificate of the Corporation” mean
      respectively a written order, request, consent and certificate signed in
      the name of the Corporation by any one or more of the officers or
      Directors of the Corporation and may consist of one or more instruments so
      executed and any other documents referred to herein which is required or
      contemplated to be provided or given by the
Corporation;

and a derivative of any defined word or phrase has the meaning
appropriate to the derivation of the word or phrase. 

	1.2 	
      MEANING OF “OUTSTANDING” FOR CERTAIN
    PURPOSES

Except as provided in section 3.6, every Warrant Certificate
countersigned and delivered by the Warrant Agent under this Indenture shall be
deemed to be outstanding until it has been surrendered to the Warrant Agent
pursuant to this Indenture, provided however that: 

6 

	 	(a) 	
      a Warrant Certificate that has been partially exercised
      or exchanged shall be deemed to be outstanding only to the extent of the
      unexercised or unexchanged, as the case may be, part of the Warrants
      evidenced thereby;

	 	 	 	 
	 	(b) 	
      where a Warrant Certificate has been issued in
      substitution for a Warrant Certificate that has been lost, stolen or
      destroyed, only one of them shall be counted for the purpose of
      determining the Warrants outstanding; and

	 	 	 	 
	 	(c) 	
      for the purpose of any provision of this Indenture
      entitling holders of outstanding Warrants to vote, sign consents, requests
      or other instruments or take any other action under this Indenture,
      Warrants owned legally or beneficially by the Corporation or any
      Subsidiary shall be disregarded, except that:

	 	 	 	 
	 		(i) 	
      for the purpose of determining whether the Warrant Agent
      will be protected in relying on any vote, consent, request or other
      instrument or other action, only the Warrants of which the Warrant Agent
      has notice that they are so owned shall be so disregarded; and

	 	 	 	 
	 		(ii) 	
      Warrants so owned that have been pledged in good faith
      other than to the Corporation or any Subsidiary shall not be so
      disregarded if the pledgee establishes to the satisfaction of the Warrant
      Agent the pledgee's right to vote the Warrants in the pledgee's discretion
      free from the control of the Corporation or any Subsidiary pursuant to the
      terms of the pledge.

	1.3 	
      CERTAIN RULES OF
INTERPRETATION

Unless otherwise specified in this Indenture: 

	(a) 	
      words importing the singular number include the plural
      and vice versa;

	 	 
	(b) 	
      words importing gender include both genders and vice
      versa and words importing individuals include firms and corporations
      and vice versa;

	 	 
	(c) 	
      “in writing” or “written” includes
      printing, typewriting or any electronic means of communication capable of
      being visibly reproduced at the point of reception, including
    telecopy;

	 	 
	(d) 	
      “including” is used for illustration only and not
      to limit the generality of any preceding words, whether or not
      non-limiting language (such as, “without limitation”, “but not limited to”
      and similar expressions) is used with reference thereto; and

	 	 
	(e) 	
      reference to any statute, regulation or by-law includes
      amendments, consolidations, re- enactments and replacements thereof and
      instruments and legislation thereunder.

	1.4 	
      INTERPRETATION NOT AFFECTED BY HEADINGS,
    ETC.

The division of this Indenture into Articles, sections and
other subdivisions, the inclusion of a table of contents and the insertion of
headings are for convenience of reference only and do not affect the
construction or interpretation of this Indenture. 

	1.5 	
      APPLICABLE LAW

This Indenture, the Warrants and the Warrant Certificates shall
be governed by and construed in accordance with the laws of the Province of
Ontario and the federal laws of Canada applicable therein.

7 

Any and all disputes arising under this Indenture, the Warrants
and the Warrant Certificates, whether as to interpretation, performance or
otherwise, shall be subject to the non-exclusive jurisdiction of the courts of
the Province of Ontario and each of the parties hereto irrevocably attorns to
the jurisdiction of the courts of such Province. 

	1.6 	
      LANGUAGE CLAUSE

The parties hereto have required that this Indenture and all
documents and notices related thereto or resulting therefrom be drawn up in the
English language. 

	1.7 	
      DAY NOT A BUSINESS DAY

Whenever any payment is due or required to be made or any other
action is required to be taken under this Indenture or the Warrant Certificates
on or as of a day that is not a Business Day, that payment must be made and the
other action must be taken on or as of the next day that is a Business Day.
However notwithstanding the foregoing, this provision shall not under any
circumstances be construed so as to extend the Expiry Date. 

	1.8 	
      CONFLICT

In the event of a conflict or inconsistency between a provision
of this Indenture and in the Warrant Certificates issued hereunder, the relevant
provision in this Indenture shall prevail to the extent of the inconsistency.

	1.9 	
      TIME OF THE ESSENCE

Time shall be of the essence of this Indenture, the Warrants
and the Warrant Certificates. 

	1.10 	
      CURRENCY

Except as otherwise stated, all dollar amounts herein are
expressed in Canadian dollars. 

	1.11 	
      SCHEDULES

Schedule “A” to this Indenture is incorporated into this
Indenture by reference. 

ARTICLE 2 
ISSUE OF WARRANTS 

	2.1 	
      CREATION AND ISSUE OF
WARRANTS

	(1) 	The Corporation hereby creates and authorizes
      the reservation for issue and, as applicable, the issuance of the Warrants
      as of the date hereof and at any additional closings, with the aggregate
      number of Warrants to be issued not to exceed 9,277,500 Warrants. 
	  	  
	(2) 	The Warrant Agent is hereby appointed Warrant
      Agent in respect of the Warrants. 
	  	  
	2.2 	TERMS OF WARRANTS 
	  	  
	(1) 	The Warrants shall be issued hereunder in
      accordance with the direction provided to the Warrant Agent pursuant to
      subsections 2.2, 2.4 and 2.5 hereof. 

8 

	(2) 	
      Upon the valid exercise of the Warrants prior to the
      Expiry Time in accordance with section 3.2 hereof, including payment of
      the Exercise Price in connection therewith, each Warrant shall entitle the
      Holder to acquire, subject to adjustment in accordance with Article 4
      hereof, one Common Share.

	 	 
	(3) 	
      No certificate evidencing fractional Warrants shall be
      issued or otherwise provided for and a Subscriber or a Holder shall not be
      entitled to any cash or other consideration in lieu of any fractional
      interest in a Warrant or claim thereto.

	 	 
	(4) 	
      The number of Common Shares which may be acquired
      pursuant to the exercise of the Warrants shall be adjusted in the events
      and in the manner specified in Article 4.

	 	 
	(5) 	
      All Warrants shall rank pari passu, whatever may
      be the actual date of issue thereof.

	 	 
	(6) 	
      The Warrants and any rights thereunder shall expire in
      accordance with the provisions of section 3.6.

	2.3 	
      WARRANT CERTIFICATES

The Warrant Certificates to be issued to evidence the Warrants
authorized for issuance pursuant to section 2.1 shall be issuable in registered
form only, shall be in the English language and shall be substantially in the
form set out in Schedule “A”. All Warrant Certificates shall be dated as of the
date of their issuance, and shall bear such distinguishing letters and numbers
as the Corporation may, with the approval of the Warrant Agent, prescribe, and
shall be issuable in any denomination excluding fractions. Irrespective of any
adjustments pursuant to Article 4, the Warrant Certificates shall continue to be
in the form set out in Schedule “A” and shall continue to express the number of
Common Shares that may be acquired upon the exercise of the Warrants evidenced
thereby prior to any such adjustment. 

	2.4 	
      SIGNING OF WARRANT
CERTIFICATES

The Warrant Certificates shall be signed by any director or
officer of the Corporation. The signature of such signing officer may be
mechanically reproduced in facsimile and Warrant Certificates bearing such
facsimile signature shall be binding upon the Corporation as if they had been
manually signed by such signing officer. Notwithstanding that any individual
whose manual or facsimile signature appears on any Warrant Certificate as a
signing officer may no longer hold office or a directorship, as applicable, at
the date of issue of such Warrant Certificate or at the date of certification or
delivery thereof, any Warrant Certificate signed as aforesaid shall, subject to
section 2.5, be valid and binding upon the Corporation and the Holder thereof
shall be entitled to the benefits of this Indenture. 

	2.5 	
      COUNTERSIGNATURE BY THE WARRANT
  AGENT

	(1) 	
      Warrant Certificates evidencing the Warrants shall be
      countersigned by or on behalf of the Warrant Agent on written direction of
      the Corporation.

	 	 
	(2) 	
      No Warrant Certificate shall be issued or, if issued,
      shall be valid for any purpose or entitle the Holder to the benefit hereof
      until it has been countersigned by manual signature by or on behalf of the
      Warrant Agent, and such countersignature by the Warrant Agent upon any
      Warrant Certificate shall be conclusive evidence as against the
      Corporation that the Warrant Certificate so countersigned has been duly
      issued hereunder and that the Holder is entitled to the benefits
      hereof.

	 	 
	(3) 	
      The countersignature of the Warrant Agent on Warrant
      Certificates issued hereunder shall not be construed as a representation
      or warranty by the Warrant Agent as to the validity of this
    Indenture or the Warrant Certificates (except the due countersignature
thereof) and the Warrant Agent shall in no respect be liable or answerable for
the use made of the Warrant Certificates or any of them or of the consideration
therefor. 

9 

	2.6 	
      HOLDER NOT A SHAREHOLDER

Nothing in this Indenture or in the holding of a Warrant itself
evidenced by a Warrant Certificate, or otherwise, shall be construed as
conferring upon a Holder any right or interest whatsoever as a shareholder of
the Corporation, including, but not limited to, the right to vote at, to receive
notice of, or to attend, meetings of shareholders or any other proceedings of
the Corporation, or the right to receive dividends and other distributions,
except as may be provided herein or in the Warrant Certificates. 

	2.7 	
      ISSUE IN SUBSTITUTION FOR LOST WARRANT
      CERTIFICATE

	(1) 	
      If any of the Warrant Certificates shall become mutilated
      or lost, destroyed or stolen, the Corporation, subject to applicable law
      and to subsection 2.7(2), shall issue and thereupon, at the written
      direction of the Corporation, the Warrant Agent shall countersign and
      deliver a new Warrant Certificate of like date and tenor as the one
      mutilated, lost, destroyed or stolen upon surrender and in place of and
      upon cancellation of such mutilated Warrant Certificate, or in lieu of and
      in substitution for such lost, destroyed or stolen Warrant Certificate,
      and the substituted Warrant Certificate shall be in a form approved by the
      Warrant Agent and shall be entitled to the benefits hereof and shall rank
      equally in accordance with its terms with all other Warrant Certificates
      issued or to be issued hereunder.

	 	 
	(2) 	
      The applicant for the issue of a new Warrant Certificate
      pursuant to this section 2.7 shall bear the reasonable cost of the issue
      thereof and in case of loss, destruction or theft shall, as a condition
      precedent to the issue thereof, furnish to the Corporation and to the
      Warrant Agent evidence of ownership and of the loss, destruction or theft
      of the Warrant Certificate so lost, destroyed or stolen satisfactory to
      the Corporation and to the Warrant Agent in their sole discretion, in each
      case acting reasonably, and such applicant may also be required to furnish
      an indemnity or surety bond in amount and form satisfactory to the
      Corporation and the Warrant Agent in their sole discretion, in each case
      acting reasonably, and shall pay the reasonable charges of the Corporation
      and the Warrant Agent in connection therewith.

	2.8 	
      REGISTER FOR WARRANTS

The Corporation shall cause to be kept by and at the Warrant
Agency and in such other place or places as the Corporation with the approval of
the Warrant Agent may designate, a securities register in which shall be entered
the names and addresses of the Holders and the other particulars, prescribed by
law, of the Warrants held by them. The Corporation shall also cause to be kept
by and at such office the register of transfers, and may also cause to be kept
by the Warrant Agent or such other register or registers and at such other place
or places as the Corporation may designate with the approval of the Warrant
Agent, branch registers of transfers (including, without limitation, branch
registers of transfers at each of the other Warrant Agencies) in which shall be
recorded the particulars of the transfers of Warrants registered in that branch
register of transfers. 

	2.9 	
      TRANSFER OF WARRANTS

	(1) 	
      Subject to subsection 2.9(3) and 3.2(3) below and such
      reasonable requirements as the Warrant Agent may prescribe and all
      applicable securities legislation and requirements of regulatory
      authorities, the Warrants may be transferred on the register kept at the
      Warrant Agency by the Holder or its legal representatives or its attorney
      duly appointed by an instrument in writing in form and manner of execution
      satisfactory to the Warrant Agent only upon the surrendering
  of the relevant Warrant Certificate with the transfer form
      forming part thereof duly completed and signed. After receiving the
      surrendered Warrant Certificate(s) and upon the person surrendering the
      same meeting the requirements set forth above and upon the required
      signature and countersignature in accordance with sections 2.4 and 2.5,
      the Warrant Agent shall issue to the transferee a Warrant Certificate
      representing the Warrants transferred.

10 

	(2) 	
      The Warrants have not been and will not be registered
      under the U.S. Securities Act or under applicable state securities
      laws.

	 	 
	(3) 	
      No transfer of a Warrant shall be valid (i) unless made
      in accordance with the provisions hereof, (ii) until, upon compliance with
      such reasonable requirements as the Warrant Agent may prescribe, such
      transfer is recorded on the register maintained by the Warrant Agent
      pursuant to subsection (1) of this section 2.9, and (iii) until all
      governmental or other charges arising by reason of such transfer have been
      paid.

	2.10 	
      TRANSFEREE ENTITLED TO
  REGISTRATION

The transferee of a Warrant shall, after the transfer form
attached to the Warrant Certificate is duly completed and the Warrant
Certificate and transfer form are lodged with the Warrant Agent, and upon
compliance with all other conditions in that regard required by this Indenture
and by all applicable securities legislation and requirements of regulatory
authorities, be entitled to have his name entered on the register as the owner
of such Warrant free from all equities or rights of set-off or counterclaim
between the Corporation and his transferor or any previous Holder of such
Warrant, save in respect of equities of which the Corporation or the transferee
is required to take notice by statute or by order of a court of competent
jurisdiction. 

	2.11 	
      REGISTERS OPEN FOR
INSPECTION

The registers hereinbefore referred to shall be open at all
reasonable times and upon reasonable notice for inspection by the Corporation,
the Warrant Agent or any Holder. The Warrant Agent shall, from time to time when
requested to do so by the Corporation, furnish the Corporation with a list of
the names and addresses of Holders of Warrants entered in the register kept by
the Warrant Agent and showing the number of Common Shares which may then be
acquired upon the exercise of the Warrants held by each such Holder. 

	2.12 	
      OWNERSHIP OF WARRANTS

	(1) 	
      The Corporation and the Warrant Agent may deem and treat
      the registered Holder of any Warrant Certificate as the absolute owner of
      the Warrants represented thereby for all purposes and the Corporation and
      the Warrant Agent shall not be affected by any notice or knowledge to the
      contrary, except where the Corporation or the Warrant Agent is required to
      take notice by statute or by order of a court of competent jurisdiction.
      For greater certainty, subject to applicable law, neither the Corporation
      nor the Warrant Agent shall be bound to take notice of or see to the
      execution of any trust, whether express, implied or constructive, in
      respect of any Warrant, and may transfer any Warrant on the direction of
      the person registered as Holder thereof, whether named as trustee or
      otherwise, as though that person were the beneficial owner
  thereof.

	 	 
	(2) 	
      Subject to the provisions of this Indenture and
      applicable law, each Holder shall be entitled to the rights and privileges
      attaching to the Warrants held thereby. The exercise of the Warrants in
      accordance with the terms hereof and the receipt by any such Holder of
      Common Shares pursuant thereto shall be a good discharge to the
      Corporation and the Warrant Agent with respect to such Warrants and
      neither the Corporation nor the Warrant Agent shall be bound to inquire
      into the title of any such Holder except where the Corporation or the
Warrant Agent is required to take notice by statute or by order of a court of
competent jurisdiction. 

11 

	2.13 	EXCHANGE OF WARRANT CERTIFICATES 
	  	  
	(1) 	Warrant Certificates, representing Warrants
      entitling the Holders to receive any specified number of Common Shares,
      may, prior to the Expiry Time and upon compliance with the reasonable
      requirements of the Warrant Agent, be exchanged for another Warrant
      Certificate or Warrant Certificates entitling the Holder thereof to
      receive in the aggregate the same number of Common Shares as are issuable
      under the Warrant Certificate or Warrant Certificates so exchanged. 
	  	  
	(2) 	Warrant Certificates may be exchanged only at
      the Warrant Agency or at any other place that is designated by the
      Corporation with the approval of the Warrant Agent. Any Warrant
      Certificates tendered for exchange shall be surrendered to the Warrant
      Agent and shall, upon the valid completion of the exchange in accordance
      with the terms of this Indenture, be cancelled. 
	  	  
	(3) 	Except as otherwise herein provided, the
      Warrant Agent shall charge to the Holder requesting an exchange a
      reasonable sum for each new Warrant Certificate issued in exchange for
      Warrant Certificate(s); and payment of such charges and reimbursement to
      the Warrant Agent or the Corporation for any and all taxes or governmental
      or other charges required to be paid shall be made by such Holder as a
      condition precedent to such exchange. 

	2.14 	ISSUE OF GLOBAL CERTIFICATES 
	  	  
	(1) 	Except for any Warrant Certificates issued to,
      or for the account or benefit of, persons in the United States or U.S.
      Persons, which shall be issued in individually certificated form, the
      Corporation may, at its sole option, specify, in a written order of the
      Corporation delivered to the Warrant Agent, that some or all of the
      Warrants are to be represented by one or more Global Certificates
      registered in the name of the Depository or its nominee, and in such event
      the Corporation shall execute and the Warrant Agent shall certify and
      deliver one or more Global Certificates that shall:

	 	(a) 	
      represent the aggregate number of outstanding Warrants to
      be represented by such Global Certificate(s);

	 	 	 
	 	(b) 	
      be delivered by the Warrant Agent to the Depository or
      pursuant to the Depository’s instructions; and

	 	 	 
	 	(c) 	
      bear a legend substantially to the following
    effect:

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY SERVICES INC. (“CDS”) TO
BRIDGEPORT VENTURES INC. (THE “ISSUER”) OR THE WARRANT AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF IS
REGISTERED IN THE NAME OF CDS & CO., OR IN SUCH OTHER NAME AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF CDS (AND ANY PAYMENT IS MADE TO CDS & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE
REGISTERED HOLDER HEREOF, CDS & CO., HAS A PROPERTY INTEREST IN THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HEREIN AND IT IS A VIOLATION OF ITS
RIGHTS FOR ANOTHER PERSON TO HOLD, TRANSFER OR DEAL WITH THIS CERTIFICATE” 

12 

	(2) 	
      Transfers of beneficial ownership in any Warrant
      represented by a Global Certificate will be effected only:

	 	 	 
		(a) 	
      with respect to the interest of a Participant, through
      records maintained by the Depository or its nominee for such Global
      Certificate, and

	 	 	 
		(b) 	
      with respect to the interest of any person other than a
      Participant, through records maintained by Participants. Beneficial Owners
      who are not Participants but who desire to sell or otherwise transfer
      ownership of or any other interest in Warrants represented by such Global
      Certificate may do so only through a Participant.

	 	 	 
	(3) 	
      The rights of Beneficial Owners shall be limited to those
      established by applicable law and agreements between the Depository and
      the Participants and between such Participants and Beneficial Owners and
      must be exercised through a Participant in accordance with the rules and
      procedures of the Depository.

	 	 	 
	(4) 	
      Each of the parties hereto acknowledges and agrees that
      such Holders through their respective Participants are collectively
      entitled, under the terms hereof, to all of the rights accorded to
      registered holders of Warrants and are bound by all of the obligations of
      such Holder.

	 	 	 
	(5) 	
      Subject to subsections 2.14(6) and (7) and 3.2(6) neither
      the Corporation nor the Warrant Agent shall be under any obligation to
      deliver to any Participant or Beneficial Owner, nor shall any Participant
      or Beneficial Owner have any right to require the delivery of, a
      certificate or other instrument evidencing any interest in Warrants
      represented by a Global Certificate. Beneficial Owners who are not
      Participants but who desire to exercise Warrants represented by a Global
      Certificate may do so only through a Participant in accordance with
      subsection 3.2(6).

	 	 	 
	(6) 	
      If any Warrant is represented by a Global Certificate and
      any of the following events occurs:

	 	 	 
		(a) 	
      the Depository or the Company has notified the Warrant
      Agent that (1) the Depository is unwilling or unable to continue as
      Depository or (2) the Depository ceases to be a clearing agency in good
      standing under applicable laws and, in either case, the Company is unable
      to locate a qualified successor Depository within 90 days of delivery of
      such notice;

	 	 	 
		(b) 	
      the Corporation has determined, in its sole discretion,
      with the consent of the Warrant Agent, to terminate the book entry only
      system in respect of such Global Certificate and has communicated such
      determination to the Warrant Agent in writing;

	 	 	 
		(c) 	
      the Corporation or the Depository is required by
      applicable law to take the action contemplated in this Section 2.14(6);
      or

	 	 	 
		(d) 	
      the book entry only system administrated by the
      Depository ceases to exist, then one or more definitive fully registered Warrant
Certificates shall be executed by the Corporation and certified and delivered by
the Warrant Agent to the Depository in exchange for the Global Certificate(s)
held by the Depository. 

13 

	(7) 	
      Fully registered Warrant Certificates issued and
      exchanged pursuant to Section 2.14(6) shall be registered in such names
      and in such denominations as the Depository shall instruct the Warrant
      Agent, provided that the aggregate number of Warrants represented by such
      Warrant Certificates shall be equal to the aggregate number of Warrants
      represented by the Global Certificate(s) so exchanged. Upon exchange of a
      Global Certificate for one or more Warrant Certificates in definitive
      form, such Global Certificate shall be cancelled by the Warrant
    Agent.

	 	 	 
	(8) 	
      Notwithstanding anything herein or in the terms of the
      Warrant Certificates to the contrary, neither the Corporation nor the
      Warrant Agent nor any agent thereof shall have any responsibility or
      liability for:

	 	 	 
		(a) 	
      the records maintained by the Depository relating to any
      ownership interests or any other interests in the Warrants or the
      depository system maintained by the Depository, or payments made on
      account of any ownership interest or any other interest of any person in
      any Warrant represented by any Global Certificate (other than the
      applicable Depository or its nominee);

	 	 	 
		(b) 	
      maintaining, supervising or reviewing any records of the
      Depository or any Participant relating to any such interest; or

	 	 	 
		(c) 	
      advice or representations made or given by the Depository
      or those contained herein that relate to the rules and regulations of the
      Depository or any action to be taken by the Depository on its own
      direction or at the direction of any
Participant.

	2.15 	
      TRANSFER OF WARRANTS REPRESENTED BY GLOBAL
      CERTIFICATES

The provisions of Section 2.9 with respect to the transfer of
Warrants are subject to the provisions of Section 2.14. 

	2.16 	
      RESTRICTIONS AND TRANSFERS UNDER UNITED STATES
      SECURITIES LAWS

	(1) 	
      The Warrants and the Underlying Securities have not been
      and will not be registered under the U.S. Securities Act and applicable
      state securities laws and the Corporation has no current intention to
      effect such registration. Each Warrant Certificate, and each certificate
      representing the Underlying Securities, originally issued to, or for the
      account or benefit of, a U.S. Person or a person in the United States, and
      each Warrant Certificate and each certificate representing Underlying
      Securities issued in exchange therefor in substitution thereof shall bear
      the following additional legend until such time as the legend is no longer
      required under applicable requirements of the U.S. Securities Act or
      applicable state securities laws:

“THE SECURITIES REPRESENTED HEREBY [AND THE SECURITIES
ISSUABLE UPON EXERCISE HEREOF] HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES
ACT”), OR APPLICABLE STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING
SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES
MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE
UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S.
SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL SECURITIES LAWS OR (C) IN
COMPLIANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT
PROVIDED BY (1) RULE 144 THEREUNDER, IF AVAILABLE, OR (2) RULE 144A THEREUNDER,
IF AVAILABLE, AND, IN BOTH CASES, IN COMPLIANCE WITH ANY APPLICABLE STATE
SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE
REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES
LAWS, AND IN THE CASE OF (C)(1) AND (D) ABOVE, AFTER THE SELLER HAS FURNISHED TO
THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND
SUBSTANCE REASONABLY SATISFACTORY TO THE CORPORATION TO SUCH EFFECT. DELIVERY OF
THIS CERTIFICATE MAY NOT CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS
ON STOCK EXCHANGES IN CANADA.”; 

14 

provided, that if at the time the
Corporation is a “foreign issuer” as defined in Regulation S, Warrants or
Underlying Securities bearing such legend are being sold outside the United
States in accordance with Rule 904 of Regulation S and in compliance with
Canadian laws and regulations, the legend may be removed by providing a
declaration to the registrar and transfer agent in the form as the Corporation
may prescribe from time to time; notwithstanding the foregoing, the
Corporation’s transfer agent may impose additional requirements for the removal
of legends from securities sold in accordance with Rule 904 of Regulation S in
the future; provided further, that if any such Warrants or such Underlying
Securities are being sold pursuant to Rule 144 under the U.S. Securities Act,
the legend may be removed by delivery to the registrar and transfer agent of an
opinion of counsel in form and substance reasonably satisfactory to the
Corporation, to the effect that the legend is no longer required under
applicable requirements of the U.S. Securities Act or state securities laws.

	 	(b) 	
      If a certificate representing the Warrants or the
      Underlying Securities is tendered for transfer and bears the legend set
      forth in this subsection and the holder thereof has not obtained the prior
      written consent of the Corporation, the Warrant Agent shall not register
      such transfer unless the transferor has provided the Warrant Agent with
      the certificate representing such securities and the transfer is being
      made (i) to the Corporation, (ii) outside the United States in accordance
      with Rule 904 of Regulation S under the U.S. Securities Act, and in
      compliance with any applicable local securities laws, (iii) in compliance
      with the exemption from registration under the U.S. Securities Act
      provided by (A) Rule 144 thereunder, if available, or (B) Rule 144A
      thereunder, if available, and in both cases, in compliance with any
      applicable state securities laws, or (iv) in another transaction that does
      not require registration under the U.S. Securities
Act or any applicable state securities laws, and in the case of
(iii)(B) and (iv) above, after the seller has furnished to the Corporation to
such effect. 

15 

ARTICLE 3 
EXERCISE OF WARRANTS 

	3.1 	
      RIGHTS OF EXERCISE OF
WARRANTS

Subject to the further provisions hereof, the Warrants may be
exercised at any time up to the Expiry Time. 

	3.2 	METHOD OF EXERCISE OF WARRANTS 
	  	  
	(1) 	Subject always to the provisions of this
      Article 3 and compliance by both the Corporation and the Holder with
      applicable law, the Holder of any Warrant may exercise the right thereby
      conferred on him to acquire one Common Share (subject to adjustment
      pursuant to Article 4) in respect of each Warrant held by surrendering to
      the Warrant Agent at the Warrant Agency the Warrant Certificate(s) held by
      him, together with (i) the exercise form forming part of the Warrant
      Certificate (the “Exercise Form”) duly completed and executed by
      the Holder or his executors, administrators or other legal representatives
      or his or their attorney duly appointed by an instrument in writing in
      form and manner satisfactory to the Warrant Agent, acting reasonably; and
      (ii) a certified cheque, bank draft or money order in lawful money of
      Canada, payable to or to the order of the Corporation in an amount equal
      to $1.40 per Common Share (the “Exercise Price”) multiplied
      by the number of Common Shares subscribed for pursuant to such Exercise
      Form. A Warrant Certificate with the duly completed and executed Exercise
      Form and payment of the applicable Exercise Price shall be deemed to be
      surrendered only upon personal delivery thereof to or, if sent by mail or
      other means of transmission, upon actual receipt thereof by, the Warrant
      Agent at the Warrant Agency. 
	  	  
	(2) 	The Exercise Form shall be executed as set out
      in subsection 3.2(1) and shall specify the number of Common Shares which
      the Holder wishes to acquire (being not more than that number which he is
      entitled to acquire pursuant to the Warrant Certificate(s) so
      surrendered). Such Common Shares shall be issued in the name of the
      Holder. 
	  	  
	(3) 	In the event that a Holder has not exercised
      his Warrants in accordance with the provisions hereof prior to the Expiry
      Time, all Warrants then held by such Holder shall expire and be of no
      further force and effect as at the Expiry Time. 
	  	  
	(4) 	If the principal transfer office of the Warrant
      Agent in the city where the Warrant Agency is situate is for any reason
      not available to act in connection with the exchange of Warrant
      Certificates or exercise of Warrants as contemplated by this Indenture,
      the Corporation and the Warrant Agent shall arrange for another office in
      such city to act in connection with the exchange of Warrant Certificates
      and exercise of Warrants and shall give notice of the change of such
      office to the Holders. 
	  	  
	(5) 	A Beneficial Owner who desires to exercise his
      or her non-certificated Warrants evidenced by a security entitlement in
      respect of Warrants in a book-based securities registration system must do
      so by arranging through a Participant for the issuance of a physical
      Warrant Certificate and/or Exercise Form to be completed and delivered to
      the Warrant Agent together with such other documentation as the Company or
      the Warrant Agent may reasonably require, specifying the number of Common
      Shares subscribed for together with a certified cheque, bank draft or
      money
order in lawful money of Canada payable to or to the order of the Company at par in Toronto, Ontario in an amount equal to the Exercise Price multiplied by the number of Common Shares being purchased. 

16 

	
3.3
		
EFFECT OF EXERCISE OF WARRANTS
	
	
 
		
 
	
	
(1)
		
If the Warrants are duly exercised in accordance with sections 3.1 and 3.2, the Underlying
Securities subscribed for shall be deemed to have been issued and the person or persons to whom
such Underlying Securities are to be issued shall be deemed to have become the holder or holders
of record of such Underlying Securities on the Exercise Date unless the transfer registers for the
Common Shares shall be closed on such date, in which case the Underlying Securities subscribed
for shall be deemed to have been issued and such person or persons shall be deemed to have
become the holder or holders of record of the same on the date on which such transfer registers
are re-opened.
	
	
 
		
 
	
	
(2)	
In the case of Warrants which are exercised in accordance with the provisions of sections 3.1 and
3.2, within three Business Days after the Exercise Date of such Warrants, the Corporation shall
cause to be mailed to the person in whose name the Underlying Securities so subscribed for are to
be delivered, as specified in the Exercise Form, at the address specified in such Exercise Form,
or, if so specified in such Exercise Form, cause to be held for such person for pick-up at the
Warrant Agency, certificates representing the Underlying Securities to be issued pursuant to such
Exercise Form, registered in such name.
	
	
 
		
 
	
	
3.4
		
PARTIAL EXERCISE OF WARRANTS
	
	
 
		
 
	
	
(1)
		
The Holder of any Warrants may exercise his right to acquire Common Shares in part and may
thereby acquire a number of Common Shares less than the aggregate number which he is entitled
to acquire pursuant to the Warrant Certificate(s) surrendered in connection therewith. In the
event of any acquisition of a number of Common Shares less than the number which the Holder
is entitled to acquire, he shall, upon exercise thereof, be entitled to receive, without charge
therefor, a new Warrant Certificate(s) representing the balance of the Common Shares which he
was entitled to acquire pursuant to the surrendered Warrant Certificate(s) and which were not
then acquired.
	
	
 
		
 
	
	
(2)
		
Notwithstanding anything herein contained including any adjustment provided for in Article 4,
the Corporation shall not be required, upon the exercise of any Warrants, to issue fractions of
Common Shares or to distribute certificates which evidence the same. Any fractional Common
Shares to which a Holder is entitled shall be aggregated to form whole Common Shares with any
remaining fractional Common Shares rounded down to a whole Common Share.
	
 
		
 
	
	
3.5
		
CANCELLATION OF WARRANTS
	

All Warrant Certificates surrendered to the Warrant Agent pursuant hereto (including those exercised and surrendered under subsection 3.2 shall be cancelled and, after the expiry of any period of retention prescribed by law, destroyed by the Warrant
Agent, and the Warrant Agent shall furnish the Corporation on request with a destruction certificate identifying the Warrant Certificates so destroyed, the number of Warrants evidenced thereby and the number of Common Shares which could have been or
were acquired pursuant to each destroyed Warrant Certificate. 

17 

	3.6 	
      WARRANTS VOID AFTER THE EXPIRY
  TIME

No Holder shall have any further rights under this Indenture or
the Warrant Certificates (other than the right to receive Common Shares in
respect of Warrants duly exercised prior to or at the Expiry Time, as the case
may be), after the Expiry Time and the Warrants shall be null and void and of no
effect. 

	3.7 	
      ACCOUNTING AND
RECORDING

	(1) 	
      The Warrant Agent shall promptly notify the Corporation
      with respect to Warrants exercised and forward to the Corporation (or into
      an account or accounts of the Corporation as designated by the
      Corporation) all monies received for the purchase of Underlying
      Securities. All such monies, and any securities or other instruments, from
      time to time received by the Warrant Agent, shall be received on behalf of
      the Corporation.

	 	 
	(2) 	
      The Warrant Agent shall record the particulars of
      Warrants exercised which shall include the names and addresses of the
      Persons who become holders of Common Shares on exercise and the Exercise
      Date. Within three Business Days of each Exercise Date, the Warrant Agent
      shall provide such particulars in writing to the
  Corporation.

	3.8 	
      SECURITIES RESTRICTIONS

	 	
       
	(a)	
Notwithstanding anything herein contained, Underlying
Securities shall only be issued by the Corporation (upon exercise of the
Warrants) in compliance with the securities laws of any applicable jurisdiction.

    
	 	
       

	3.9 	
      RESTRICTIONS ON EXERCISE UNDER UNITED STATES
      SECURITIES LAWS

	(1) 	
      The Warrants may not be exercised by or on behalf of a
      person in the United States or a U.S. Person unless registered under the
      U.S. Securities Act or unless an exemption is available from the
      registration requirements of the U.S. Securities Act and applicable state
      securities laws and the holder of the Warrants has furnished an opinion of
      counsel of recognized standing in form and substance reasonably
      satisfactory to the Corporation to such effect; provided that a U.S.
      Institutional Accredited Investor that purchased Units in the
      Corporation's private placement of Units to, or for the account or benefit
      of, persons in the United States or U.S. Persons will not be required to
      deliver an opinion of counsel in connection with the exercise of Warrants
      that are a part of those Units.

	 	 
	(2) 	
      Any Underlying Securities issued to, or for the account
      or benefit of, a person who cannot make the representations set forth in
      Box A on the Exercise Form of the Warrant Certificate shall bear the
      legend set forth in subsection 2.14 above.

ARTICLE 4 
ADJUSTMENT OF NUMBER OF COMMON SHARES

	4.1 	
      ADJUSTMENT UPON COMMON SHARE REORGANIZATION OR CAPITAL
      REORGANIZATION

The acquisition rights in effect at any date attaching to the
Warrants shall be subject to adjustment from time to time as follows: 

	(1) 	
      If, at any time prior to the Expiry Time, the Corporation
      shall:

18 

	 	(a) 	
      subdivide, redivide or change its then outstanding Common
      Shares into a greater number of shares; or

	 	 	 
	 	(b) 	
      consolidate, reduce or combine its then outstanding
      Common Shares into a lesser number of shares; or

	 	 	 
	 	(c) 	
      issue Common Shares or Convertible Securities to all or
      substantially all of the holders of the Common Shares as a stock dividend
      or other distribution (other than a dividend paid in the ordinary
      course);

(any such event being herein called a
“Common Share Reorganization”), then the number of Common Shares that a
Holder is entitled to upon exercise shall be adjusted, effective immediately
after the effective date or record date at which holders of Common Shares are
determined for the purposes of the Common Share Reorganization, by multiplying
the number of Common Shares that a Holder was entitled to upon exercise of
Warrants immediately prior to such effective date or record date by a fraction
of which: 

	 	(a) 	
      the numerator shall be the number of Common Shares
      outstanding immediately after giving effect to such Common Share
      Reorganization, including, without limitation, in the case of a
      distribution of securities exchangeable for or convertible into Common
      Shares, the number of Common Shares that would have been outstanding if
      such securities had been exchanged for or converted into Common Shares on
      such date; and

	 	 	 
	 	(b) 	
      the denominator shall be the number of Common Shares
      outstanding on such effective date or record date before giving effect to
      such Common Share Reorganization.

	(2) 	
      To the extent that any adjustment in the number of Common
      Shares issuable upon exercise of the Warrants occurs pursuant to
      subsection 4.1(1) as a result of the fixing by the Corporation of a record
      date for the distribution of securities exchangeable for or convertible
      into Common Shares, the number of Common Shares to which a Holder is
      entitled on the exercise of his Warrants shall be readjusted immediately
      after the expiration of any relevant exchange or conversion right to the
      number of Common Shares to which such Holder is entitled on the exercise
      of his Warrants which would then be in effect based upon the number of
      Common Shares actually issued and remaining issuable after such
      expiration.

		
       

	
      (3) 
	
      (a)
	
      If, at any time prior to the Expiry Time, there
      occurs:

	
       
	
       
	
       
	
       

		
       
	
      (i)
	
      a reclassification or redesignation of the Common Shares
      or any other capital reorganization; or

	
       
	
       
	
       
	
       

			
      (ii) 
	
      a consolidation, merger or amalgamation of the
      Corporation with or into any other corporation which results in the
      cancellation, reclassification or redesignation of the Common Shares or a
      change or conversion of the Common Shares into other shares or securities
      or the transfer of all or substantially all of the assets of the
      Corporation to another corporation or entity or the Corporation being
      controlled (within the meaning of the Income Tax Act (Canada)) by
      another corporation or entity;

(any such event being herein called a
“Capital Reorganization”), then, immediately upon the effective time of
such Capital Reorganization and at all times thereafter, a Holder who exercises
his right to acquire Common Shares shall be entitled to be issued and receive
and shall accept for the same aggregate consideration, upon such exercise, in
lieu of the number of Common Shares to which he was theretofore entitled upon
exercise of his Warrants the kind and aggregate number of shares or
other securities or property of the Corporation or of the Corporation or other
entity resulting from such Capital Reorganization or any other corporation that
a Holder would have been entitled to be issued and receive upon such Capital
Reorganization if, immediately prior to the effective time thereof, such Holder
had been the registered holder of the number of Common Shares to which he was
theretofore entitled upon exercise of his Warrants. 

19 

	 	(b) 	
      If necessary as a result of any Capital Reorganization,
      appropriate adjustments shall be made in the application of the provisions
      of this section with respect to the rights and interest thereafter of the
      Holders to the end that the provisions set forth in this section shall
      thereafter correspondingly be made applicable as nearly as may reasonably
      be practicable in relation to any shares or other securities or property
      thereafter issuable and deliverable upon the exercise of the Warrants. Any
      such adjustment shall be made by and set forth in an agreement
      supplemental hereto approved by the Board of Directors and by the
      Holders.

	 	 	 	 
	 	(c) 	
      The Corporation shall not complete or facilitate a
      Capital Reorganization if the effect of such transaction is
that:

	 	 	 	 
	 		(i) 	
      all or substantially all of the assets of the Corporation
      become the property of, or are under the control of, or the Corporation is
      controlled (within the meaning of the Income Tax Act (Canada)) by
      another person (an “Acquiring Person”); and

	 	 	 	 
	 		(ii) 	
      holders of Common Shares receive any other security in
      replacement of, or in addition to, or in consideration for their Common
      Shares;

unless, at or prior to the effective
time of such Capital Reorganization, the Acquiring Person agrees to be bound by
the terms of this Indenture by executing and delivering such supplemental
indenture, warrant or other document as may be satisfactory to the Corporation,
acting reasonably. 

	4.2 	ADJUSTMENT UPON RIGHTS
      OFFERING 
	  	  	  	  
	(1) 	(a) 	If and whenever at any time from the
      date hereof and prior to the Expiry Time, the Corporation fixes a record
      date for the issuance of rights, options or warrants to all or
      substantially all the holders of Common Shares pursuant to which those
      holders are entitled to subscribe for, purchase or otherwise acquire
      Common Shares or Convertible Securities within a period of not more than
      45 days from such record date at a price per share, or at a conversion
      price per share, of less than 95% of the Current Market Price on such
      record date (any such issuance being herein called a “Rights
      Offering” and the Common Shares that may be acquired in exercise of
      the Rights Offering, or upon conversion of the Convertible Securities
      offered by the Rights Offering, being herein called the “Offered
      Shares”), the number of Common Shares issuable upon exercise of a
      Warrant shall be adjusted effective immediately after the applicable
      record date to a number that is the product of (1) the number of Common
      Shares issuable upon the exercise of a Warrant in effect on the record
      date and (2) a fraction: 
	  	  	  	  
			(i) 	the numerator of which shall be the sum of (a)
      the number of Common Shares outstanding on the record date plus (b) the
      number of Offered Shares offered pursuant to the Rights Offering or the
      maximum number of Offered Shares into which the Convertible Securities so
      offered pursuant to the Rights Offering may be converted, as the case may
      be; and 

20 

	 	 	(ii) 	
      the denominator of which shall be the sum of:

	 	 	 	 	 
	 	 		(A) 	
      the number of Common Shares outstanding on the record
      date; and

	 	 	 	 	 
	 	 		(B) 	
      the number arrived at when (I) either the product of (a)
      the number of Offered Shares so offered and (b) the price at which those
      shares are offered, or the product of (c) the conversion price thereof and
      (d) the maximum number of Offered Shares for or into which the Convertible
      Securities so offered pursuant to the Rights Offering may be converted, as
      the case may be, is divided by (II) the Current Market Price of the Common
      Shares on the record date.

	 	(b) 	
      Any Offered Shares owned by or held for the account of
      the Corporation or a Subsidiary shall be deemed not to be outstanding for
      the purpose of any such computation; if all the rights, options or
      warrants are not so issued or if all rights, options or warrants are not
      exercised prior to the expiration thereof, the number of Common Shares
      issuable upon exercise of a Warrant shall be readjusted to that number in
      effect immediately prior to the record date, and such number shall be
      further adjusted based upon the number of Offered Shares (or Convertible
      Securities that are convertible into Offered Shares) actually delivered
      upon the exercise of the rights, options or warrants, as the case may be,
      but subject to any other adjustment required hereunder by reason of any
      event arising after that record date.

	
      (2) 
	
      (a) 
	
      If and whenever at any time from the date hereof and
      prior to the Expiry Time, the Corporation issues or distributes to all or
      substantially all the holders of Common Shares, (i) shares of any class
      other than Common Shares, or (ii) rights, options or warrants other than
      rights, options or warrants exercisable within 45 days from the date of
      issue thereof at a price, or at a conversion price, of at least 95% of the
      Current Market Price at the record date for such distribution, or (iii)
      evidences of indebtedness, or (iv) any other cash, securities or other
      property or assets and that issuance or distribution does not constitute a
      dividend paid in the ordinary course or is not adjusted pursuant to
      subsection 4.1(2) or a Rights Offering (any of those non-excluded events
      being herein called a “Special Distribution”), the number of
      Common Shares issuable upon exercise of a Warrant shall be adjusted
      effective immediately after the record date at which the Holders of Common
      Shares are determined for purposes of the Special Distribution to a number
      that is the product of (1) the number of Common Shares issuable upon
      exercise of a Warrant in effect on the record date and (2) a fraction:
      

	
      
	
      
	
      
	
      
	
      

	 	 	 	 
			
      (i) 
	
      the numerator of which shall be the product of (I) the
      sum of the number of Common Shares outstanding on the record date plus the
      number of Common Shares which the Holders would be entitled to receive
      upon exercise of all their outstanding Warrants if they were exercised on
      the record date and (II) the Current Market Price thereof on that date;
      and 

	
      
	
      
	
      
	
      
	
      

	 	 	 	 
	
      
	
      
	
      (ii) 
	
      the denominator of which shall be: 

	
      
	
      
	
      
	
      
	
      

	 	 	 	 	 
				
      (A) 
	
      the product of (I) the sum of the number of Common Shares
      outstanding on the record date plus the number of Shares which the Holders
      would be entitled to receive upon exercise of all their outstanding
      Warrants if they were exercised on the record date and (II) the Current
      Market Price thereof on the earlier of such record date and the date on
      which the Corporation announces its intention to make such Special
      Distribution; 

21 

less 

	 	(B) 	
      the aggregate fair market value, as determined by the
      board, whose determination shall be conclusive, absent manifest error, of
      the shares, rights, options, warrants, evidences of indebtedness or other
      assets issued or distributed in the Special
Distribution.

	 	(b) 	
      Any Common Shares owned by or held for the account of the
      Corporation shall be deemed not to be outstanding for the purpose of any
      such computation; to the extent that the distribution of shares, rights,
      options, warrants, evidences of indebtedness or assets is not so made or
      to the extent that any rights, options or warrants so distributed are not
      exercised, the number of Common Shares issuable upon exercise of a Warrant
      shall be readjusted to the number that would then be in effect based upon
      shares, rights, options, warrants, evidences of indebtedness or assets
      actually distributed or based upon the number of Common Shares or
      Convertible Securities actually delivered upon the exercise of the rights,
      options or warrants, as the case may be, but subject to any other
      adjustment required hereunder by reason of any event arising after the
      record date.

	4.3 	
      ADJUSTMENT TO EXERCISE
PRICE

If at any time after the date hereof and prior to the Expiry
Time any adjustment in the number of Common Shares purchasable upon the exercise
of any Warrant shall occur as a result of the operation of: 

	 	(i) 	
      subsection 4.1(1);

	 	 	 
	 	(ii) 	
      subsection 4.2(1)(a); or

	 	 	 
	 	(iii) 	
      subsection 4.2(2)(a) if the event referred to therein
      constitutes the issue or distribution to all or substantially all the
      holders of Common Shares of (A) Equity Shares, or (B) rights, options or
      warrants exchangeable for or convertible into Equity Shares at an exchange
      or conversion price per Equity Share less than the Current Market Price on
      the record date for such Special Distribution,

then the Exercise Price payable upon the subsequent exercise of
any Warrants shall be simultaneously adjusted by multiplying the Exercise Price
in effect immediately prior to such adjustment by a fraction which shall be the
reciprocal of the fraction employed in the adjustment of the number of Common
Shares issuable upon exercise of the Warrant, in each case subject to
readjustment upon the operation of, and in accordance with, the provisions of
subsections 4.1(2), 4.2(1)(b) and/or 4.2(2)(b), as applicable. 

	4.4 	
      ENTITLEMENT TO SHARES AND OTHER SECURITIES ON EXERCISE
      OF WARRANTS

All shares of any class or other securities which a Holder is
at the time in question entitled to receive on the exercise of his Warrants,
whether or not as a result of adjustments made pursuant to this Article 4,
shall, for the purposes of the interpretation of this Indenture, be deemed to be
shares or other securities which such Holder is entitled to acquire pursuant to
such Warrants. 

	4.5 	
      NO ADJUSTMENT FOR STOCK OPTIONS,
  ETC.

Notwithstanding anything in this Article 4, no adjustment shall
be made in the acquisition rights attached to the Warrants if the issue of
Common Shares, rights, options, warrants or securities exchangeable or
convertible into Common Shares, is being made pursuant to this Indenture or
pursuant to any stock option or stock purchase plan in force from time to time
for directors, officers or employees of the Corporation, or being made to
satisfy existing instruments issued and outstanding as of the date of this
Indenture. 

22 

	4.6 	
      DETERMINATION BY CORPORATION’S
  AUDITORS

In the event of any question arising with respect to the
adjustments provided for in this Article 4, including the failure to adjust,
such question shall be conclusively determined by the Corporation's Auditors or
if they are unwilling or unable to act, by such other firm of independent
accountants accredited by the Canadian Public Accountability Board as may be
selected by the Directors, and they shall have access to all necessary records
of the Corporation, and such determination shall be binding upon the
Corporation, the Warrant Agent, all Holders and all other persons interested
therein. 

	4.7 	
      PROCEEDINGS PRIOR TO ANY ACTION REQUIRING
      ADJUSTMENT

As a condition precedent to the taking of any action which
would require an adjustment in any of the acquisition rights pursuant to any of
the Warrants, including the number of Common Shares which are to be received
upon the exercise thereof, the Corporation shall take any corporate action which
may, in the opinion of its counsel, be necessary in order that the Corporation
has sufficient authorized capital and that the Corporation may validly and
legally issue as fully-paid and non-assessable all the shares, warrants and
other securities which the holders of such Warrants are entitled to receive on
the full exercise thereof in accordance with the provisions hereof. 

	4.8 	
      ACTION REQUIRING
ADJUSTMENT

In case the Corporation, after the date hereof, shall take any
action affecting the Common Shares, other than the actions described in this
Article 4 which, in the opinion of the Directors or the Warrant Agent would
materially affect the rights of the Holders and/or the acquisition rights of the
Holders, then that number of Common Shares which are to be received upon the
exercise of the Warrants shall be adjusted in such manner, if any, and at such
time, by action of the Directors, in their discretion as they may reasonably
determine to be equitable to the Holders in such circumstances, subject to the
prior consent of the TSX or any other exchange on which the Corporation’s
securities are then listed. 

	4.9 	
      CERTIFICATE OF ADJUSTMENT

The Corporation shall from time to time immediately after the
occurrence of any event which requires an adjustment or readjustment as provided
in Article 4, deliver a certificate of the Corporation to the Warrant Agent
specifying the nature of the event requiring the same and the amount of the
adjustment necessitated thereby and setting forth in reasonable detail the
method of calculation and the facts upon which such calculation is based. 

	4.10 	
      NOTICE OF SPECIAL MATTERS

The Corporation covenants with the Warrant Agent that, so long
as any Warrant remains outstanding, it shall send notice to the Warrant Agent
and to the Holders in accordance with Article 10 of any intention to fix a
record date that is prior to the Expiry Time for the issuance of rights, options
or warrants (other than the Warrants) to all or substantially all the holders of
its outstanding Common Shares. Such notice shall specify the particulars of such
event and the record date for such event, provided that the Corporation shall
only be required to specify in the notice such particulars of the event as shall
have been fixed and determined on the date on which the notice is given. The
notice shall be sent in each case not less than 14 days prior to such applicable
record date. 

	4.11 	
      NO ACTION AFTER NOTICE

The Corporation covenants with the Warrant Agent that it will
not close its transfer books or take any other corporate action which might
deprive the Holder of a Warrant of the opportunity to exercise its right of acquisition pursuant thereto during the period of 14 days
after the giving of the notices set forth in section 4.10. 

23 

	4.12 	
      PROTECTION OF WARRANT
AGENT

The Warrant Agent: 

	(1) 	
      shall not at any time be under any duty or responsibility
      to any Holder to determine whether any facts exist which may require any
      adjustment contemplated by Article 4, or with respect to the nature or
      extent of any such adjustment when made, or with respect to the method
      employed in making the same;

	 	 
	(2) 	
      shall not be accountable with respect to the validity or
      value (or the kind or amount) of any Common Shares or any shares or other
      securities or property which may at any time be issued or delivered upon
      the exercise of the rights attaching to any Warrant;

	 	 
	(3) 	
      shall not be responsible for any failure of the
      Corporation to issue, transfer or deliver Common Shares or certificates
      for the same upon the surrender of any Warrants for the purpose of the
      exercise of such rights or to comply with any of the covenants contained
      in this Article 4;

	 	 
	(4) 	
      shall not incur any liability or responsibility
      whatsoever or be in any way responsible for the consequences of any breach
      on the part of the Corporation of any of the representations, warranties
      or covenants herein contained or of any acts of the directors, officers,
      employees, agents or servants of the Corporation; and

	 	 
	(5) 	
      shall be entitled to act and rely upon the certificates
      or adjustment calculations of the Corporation and the auditor of the
      Corporation and any other documents filed by the Corporation pursuant to
      Section 4.8, without verification or
liability.

	4.13 	
      ADJUSTMENTS CUMULATIVE

The adjustments provided in this Article 4 shall be cumulative
and such adjustments shall be made successively whenever an event referred to
herein shall occur. 

ARTICLE 5 
PURCHASES BY THE CORPORATION

	5.1 	
      OPTIONAL PURCHASE BY THE
  CORPORATION

Subject to compliance with securities legislation and approval
of applicable regulatory authorities, the Corporation may from time to time
purchase on any stock exchange, in the open market, by private contract or
otherwise any of the Warrants. Any such purchase shall be made at the lowest
price or prices at which such Warrants are then obtainable (and agreed to by the
sellers of such Warrants), plus reasonable costs of purchase, and may be made in
such manner, from such Persons, and on such other terms as the Corporation and
the sellers of such Warrants may agree. The Warrant Certificates representing
Warrants purchased pursuant to this section 5.1 shall forthwith be delivered to
and cancelled by the Warrant Agent upon the written direction of the
Corporation. No Warrants shall be issued in replacement thereof. 

24 

ARTICLE 6 
COVENANTS OF THE CORPORATION

	6.1 	
      ISSUANCE OF COMMON SHARES

The Warrants, when issued and countersigned as herein provided,
shall be valid and enforceable against the Corporation and, subject to the
provisions of this Indenture, the Corporation shall cause the Common Shares to
be acquired pursuant to the valid exercise of Warrants under this Indenture and
the certificates representing such Common Shares to be duly issued and delivered
in accordance with the Warrant Certificates and the terms hereof. At all times
prior to the Expiry Date, while any of the Warrants are outstanding, the
Corporation shall reserve and there shall be conditionally allotted but unissued
out of its authorized capital that number of Common Shares sufficient to enable
the Corporation to meet its obligations hereunder. All Common Shares issued
pursuant to the exercise of the Warrants shall be issued as fully paid and
non-assessable. The Corporation shall make all requisite filings, and pay all
applicable fees, under applicable Securities Laws to report the exercise of the
Warrants. 

As long as any Warrants remain outstanding the Corporation
covenants to the Warrant Agent for the benefit of the Holders as follows: 

	 	(a) 	
      it will maintain its corporate existence and carry on and
      conduct its business in a prudent manner in accordance with industry
      standards and good business practice;

	 	 	 
	 	(b) 	
      it will use commercially reasonable efforts to maintain
      its status as a reporting issuer (or analogous entity) not in default of
      the requirements of the securities laws of the Designated Provinces for a
      period of not less than 24 months from the date hereof as and it will make
      all requisite filings under the Securities Laws to report the exercise of
      the right to acquire Common Shares pursuant to the Warrants;

	 	 	 
	 	(c) 	
      it will use commercially reasonable efforts to maintain
      the listing of the Common Shares on the TSX for a period of not less than
      24 months from the date hereof; and

	 	 	 
	 	(d) 	
      it will promptly advise the Warrant Agent in writing of
      any default under the terms of this Agreement.

	6.2 	
      NO AMENDMENT TO COMMON
SHARES

So long as any Warrants are outstanding, the Corporation shall
not amend the attributes of the Common Shares unless consented to by the Holders
by Extraordinary Resolution. 

	6.3 	
      TO PAY WARRANT AGENT REMUNERATION AND
    EXPENSES

The Corporation covenants that it shall pay to the Warrant
Agent from time to time reasonable remuneration for its services hereunder and
shall pay or reimburse the Warrant Agent upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Warrant Agent in
the administration or execution of its duties hereunder (including the
reasonable compensation and the disbursements of its counsel and all other
advisers and assistants not regularly in its employ) both before any default
hereunder and thereafter until all duties of the Warrant Agent hereunder shall
be finally and fully performed, except any such expenses, disbursement or
advance as may arise out of or result from the Warrant Agent’s gross negligence,
wilful misconduct or bad faith. The Warrant Agent shall not have any recourse
against the securities or any other property held by it pursuant to this
Indenture for payment of its fees.

25 

	6.4 	
      TO PERFORM COVENANTS

The Corporation shall duly and punctually perform and carry out
all of the acts or things to be done by it as provided in this Indenture and
that it shall do, execute, acknowledge and deliver or cause to be done,
executed, acknowledged and delivered, all other acts, deeds and assurances in
law as the Warrant Agent may reasonably require for the better accomplishing and
effecting the intentions and provisions of this Indenture. 

	6.5 	
      WARRANT AGENT MAY PERFORM
  COVENANTS

If the Corporation shall fail to perform any of its covenants
contained in this Indenture, the Warrant Agent may notify the Holders of such
failure on the part of the Corporation or may itself perform any of the
covenants capable of being performed by it but shall be under no obligation to
perform said covenants or to notify the Holders of such performance by it. All
sums expended or advanced by the Warrant Agent in so doing shall be repayable as
provided in Section 6.3. No such performance, expenditure or advance by the
Warrant Agent shall relieve the Corporation of any default hereunder or of its
continuing obligations under the covenants herein contained. 

	6.6 	
      CERTIFICATES OF NO DEFAULT

At any time if requested by the Warrant Agent, the Corporation
shall deliver to the Warrant Agent an Officers' Certificate stating that the
Corporation has complied with all covenants, conditions or other requirements
contained in this Indenture. In the event that the Corporation has not complied
with all the covenants and conditions contained herein, it will advise the
Warrant Agent and the Holders of such default as soon as reasonably practicable,
specifying the covenant, condition or other requirement which has not been
complied with and giving particulars of such non-compliance. 

	6.7 	
      SOLICITATION OF WARRANT
EXERCISE

The Corporation agrees not to pay any commission or other
remuneration directly or indirectly for soliciting the exercise of Warrants.

	6.8 	
      SECURITIES QUALIFICATION
  REQUIREMENTS

(a)                  If,
in the opinion of counsel to the Warrant Agent, any instrument (not including a
prospectus) is required to be filed with, or any permission is required to be
obtained from the Securities Commissions or the TSX (or any other stock exchange
upon which the Common Shares are listed) or any other step is required under
Securities Laws before any Common Shares which a Holder is entitled to acquire
pursuant to the exercise or deemed exercise of any Warrant may properly and
legally be issued upon due exercise or deemed exercise thereof and thereafter
traded, without further formality or restriction, the Corporation covenants that
it will take such required action. 

(b)                  The
Corporation or, if required by the Corporation, the Warrant Agent will give
notice of the issue of Common Shares pursuant to the exercise or deemed exercise
of Warrants, in such detail as may be required, to the Securities Commissions
and the TSX or any other stock exchange upon which the Common Shares are listed.

26

	ARTICLE 7 
	ENFORCEMENT 

	7.1 	
      SUITS BY HOLDERS OF
WARRANTS

Subject to section 9.11, all or any of the rights conferred
upon any Holder by any of the terms of the Warrant Certificates or this
Indenture may be enforced by the Holder by appropriate legal proceedings but
without prejudice to the right which is hereby conferred upon the Warrant Agent
to proceed in its own name to enforce each and all of the provisions herein
contained for the benefit of the Holders.

	7.2 	
      WAIVER OF DEFAULT

Upon the happening of any default hereunder: 

	(1) 	
      the Holders of not less than 662/3% of the
      Warrants then outstanding shall have the power (in addition to the powers
      exercisable by Extraordinary Resolution) by requisition in writing to
      instruct the Warrant Agent to waive any default hereunder and the Warrant
      Agent shall thereupon waive the default upon such terms and conditions as
      shall be prescribed in such requisition; or

	 	 
	(2) 	
      the Warrant Agent shall have the power to waive any
      default hereunder upon such terms and conditions as the Warrant Agent may
      deem advisable, if, in the Warrant Agent's opinion, the same shall have
      been cured or adequate provision made therefor;

provided that no delay or omission of the Warrant Agent or of
the Holders, as applicable, to exercise any right or power accruing upon any
default shall impair any such right or power or shall be construed to be a
waiver of any such default or acquiescence therein and provided further that no
act or omission either of the Warrant Agent or the Holders in the premises shall
extend to or be taken in any manner whatsoever to affect any subsequent default
hereunder or the rights resulting therefrom. 

ARTICLE 8 
SUCCESSOR CORPORATIONS 

	8.1 	
      CERTAIN REQUIREMENTS

Prior to the exercise of the Warrants, the Corporation shall
not, directly or indirectly, sell, transfer or otherwise dispose of all or
substantially all of its property and assets as an entirety to any other
corporation and shall not amalgamate (except with a wholly-owned Subsidiary) or
merge with or into any other corporation (any such other corporation being
herein referred to as a “Successor Corporation”) unless: 

	(1) 	
      the Successor Corporation executes, before or
      contemporaneously with the consummation of any such transaction, an
      indenture supplemental hereto together with such other instruments as are
      satisfactory to the Warrant Agent and in the opinion of its counsel are
      necessary or advisable to evidence the assumption by the Successor
      Corporation of the due and punctual observance and performance of all the
      covenants and obligations of the Corporation under this Indenture;
    and

	 	 
	(2) 	
      such transaction shall be to the satisfaction of the
      Warrant Agent, acting reasonably, and in the opinion of its counsel, be
      upon such terms so as to substantially preserve and not impair in any
      material respect the rights and powers of the Warrant Agent or of the
      Holders hereunder.

27 

	8.2 	
      VESTING OF POWERS IN
SUCCESSOR

Whenever the conditions of section 8.1 have been duly observed
and performed, the Successor Corporation shall possess and from time to time may
exercise each and every right and power of the Corporation under this Indenture
in the name of the Corporation or otherwise and any act or proceeding by any
provision of this Indenture required to be done or performed by any Directors or
officers of the Corporation may be done and performed with like force and effect
by the Directors or officers of such Successor Corporation. 

ARTICLE 9 
MEETINGS OF HOLDERS OF WARRANTS

	9.1 	
      RIGHT TO CONVENE MEETING

The Warrant Agent may at any time and from time to time and
shall on receipt of a written request of the Corporation or a Holders' Request
and upon being indemnified and funded to its reasonable satisfaction by the
Corporation or by the Holders signing such request against the costs which may
be incurred in connection with the calling and holding of such meeting, convene
a meeting of the Holders. In the event of the Warrant Agent failing, within
seven days after receipt of any such request and such indemnity and funding, to
give notice convening a meeting, the Corporation or such Holders, as the case
may be, may convene such meeting. Every such meeting shall be held in the City
of Toronto, Ontario, or at such other place as may be approved or determined by
the Warrant Agent. 

	9.2 	
      NOTICE OF MEETINGS

At least 21 days' notice of any meeting of the Holders shall be
given to the Holders in the manner provided in Article 10 and a copy thereof
must be sent to the Warrant Agent unless the meeting has been called by it and
to the Corporation unless the meeting has been called by it. Such notice must
state the time when and the place where the meeting is to be held and state
briefly the general nature of the business to be transacted thereat and it shall
not be necessary for any such notice to set out the terms of any resolution to
be proposed or any of the provisions of this Article. 

	9.3 	
      CHAIRMAN

An individual (who need not be a Holder) designated in writing
by the Warrant Agent, shall be the chairman of the meeting and if no individual
is so designated, or if the individual so designated is not present within 15
minutes from the time fixed for the holding of the meeting, the Holders present
in person or by proxy shall choose an individual present to be chairman. 

	9.4 	
      QUORUM

Subject to section 9.12, at any meeting of the Holders a quorum
shall consist of Holders present in person or by proxy and entitled to acquire
at least 20% of the aggregate number of Common Shares which could be acquired
pursuant to the exercise of all of the then outstanding Warrants, provided that
at least two Persons entitled to vote thereat are personally present or
represented by proxy. If a quorum is not present within 30 minutes from the time
fixed for holding any meeting, the meeting, if summoned by the Holders or
pursuant to a Holders' Request, shall be dissolved; but in any other case the
meeting shall be adjourned to the same day in the next week (unless such day is
not a Business Day in which case it shall be adjourned to the next following
Business Day) at the same time and place and no notice shall be required to be
given in respect of such adjourned meeting. At the adjourned meeting the Holders
present in person or by proxy shall form a quorum and may transact the business
for which the meeting was originally convened notwithstanding that they may not be entitled to
acquire at least 20% of the Common Shares which may be acquired pursuant to the
exercise of all of the then outstanding Warrants. 

28 

	9.5 	
      POWER TO ADJOURN

The chairman of any meeting at which a quorum is present may
with the consent of the meeting adjourn any such meeting and no notice of such
adjournment need be given except such notice, if any, as the meeting may
prescribe. 

	9.6 	
      SHOW OF HANDS

Every question submitted to a meeting shall be decided in the
first place by a majority of the votes given on a show of hands except that
votes on Extraordinary Resolutions shall be given in the manner hereinafter
provided. At any such meeting, unless a poll is duly demanded as herein
provided, a declaration by the chairman that a resolution has been carried or
carried unanimously or by a particular majority or lost or not carried by a
particular majority shall be conclusive evidence of the fact. 

	9.7 	
      POLL

On every Extraordinary Resolution, and on any other question
submitted to a meeting when demanded by the chairman or by one or more Holders
and/or proxies for Holders, a poll must be taken in such manner and either at
once or after an adjournment, as the chairman directs. Questions other than
Extraordinary Resolutions shall, if a poll is taken, be decided by a majority of
the votes cast on the poll. 

On a show of hands, every Person who is present and entitled to
vote, whether as a Holder or as proxy for one or more Holders or both, shall
have one vote. On a poll, each Holder present in person or represented by a
proxy duly appointed by an instrument in writing shall be entitled to one vote
in respect of each Common Share to which that Person is entitled to acquire
pursuant to the Warrant or Warrants held or represented by that Person. A proxy
need not be a Holder. In the case of joint Holders of a Warrant, any one of them
present in person or by proxy at the meeting may vote in the absence of the
other or others; but in case more than one of them is present in person or by
proxy, they must vote together in respect of the Warrants of which they are
joint Holders. The chairman of any meeting shall be entitled, both on a show of
hands and on a poll, to vote in respect of any Warrants held or represented by
him, but shall not have a second or deciding vote. 

	9.8 	
      VOTING

	9.9 	
      REGULATIONS

	(1) 	
      The Warrant Agent or the Corporation with the approval of
      the Warrant Agent, may from time to time make or vary or restate such
      regulations as it shall from time to time think fit regarding the
      following:

	 	 	 
		(a) 	
      providing for and governing the voting by proxy by
      Holders and the form of instrument appointing proxies and the manner in
      which the same shall be executed, and for the production of the authority
      of any Person signing on behalf of the giver of such proxy;

	 	 	 
		(b) 	
      for the deposit of instruments appointing proxies at such
      place as the Warrant Agent, the Corporation or the Holders convening the
      meeting, as the case may be, may, in the notice convening the meeting,
      direct and the time, if any, before the holding of the meeting or any
      adjournment thereof by which the same must be
deposited;

29 

	 	(c) 	
      for the deposit of instruments appointing proxies at some
      approved place or places other than the place at which the meeting is to
      be held and enabling particulars of such instruments appointing proxies to
      be mailed, telecopied or sent by facsimile before the meeting to the
      Corporation or to the Warrant Agent at the place where the same is to be
      held and for the voting of proxies so deposited as though the instruments
      themselves were produced at the meeting; and

	 	 	 
	 	(d) 	
      generally, the calling of meetings of Holders and the
      conduct of business thereat.

	(2) 	
      Any regulations so made shall be binding and effective
      and the votes given in accordance therewith shall be valid and shall be
      counted. Except as such regulations may provide, the only Persons who
      shall be recognized at any meeting as Holders, or as entitled to vote or
      be present at the meeting in respect thereof (subject to section 9.10),
      shall be the Holders and Persons whom the Holders have by instrument in
      writing duly appointed as their proxies.

	9.10 	
      CORPORATION AND WARRANT AGENT MAY BE
      REPRESENTED

The Corporation and the Warrant Agent, by their respective
officers or directors, and the legal advisers of the Corporation and the Warrant
Agent, may attend any meeting of the Holders, and shall be recognized and given
reasonable opportunity to speak to any resolutions proposed for consideration by
the meeting, but shall not be entitled to vote thereat, whether in respect of
any Warrants held by them or otherwise. 

	9.11 	
      POWERS EXERCISABLE BY EXTRAORDINARY
    RESOLUTION

Subject to applicable law and the rules and regulations of any
stock exchange having jurisdiction, in addition to the powers conferred upon
them by any other provisions of this Indenture or by law, the Holders at a
meeting shall have the power, exercisable from time to time by Extraordinary
Resolution: 

	(1) 	
      to sanction any modification, abrogation, alteration,
      compromise or arrangement of the rights of the Holders and/or the Warrant
      Agent against the Corporation, or against its property, whether such
      rights arise under this Indenture or the Warrant Certificates or
      otherwise;

	 	 
	(2) 	
      to assent to any modification of or change in or addition
      to or omission from the provisions contained in this Indenture or in the
      Warrant Certificates which must be agreed to by the Corporation and to
      authorize the Warrant Agent to concur in and execute any indenture
      supplemental hereto embodying any such modification, change, addition or
      omission;

	 	 
	(3) 	
      to sanction any scheme for the reconstruction or
      reorganization of the Corporation or for the consolidation, amalgamation
      or merger of the Corporation with any other corporation or for the sale,
      leasing, transfer or other disposition of the undertaking, property and
      assets of the Corporation or any part thereof, provided that no such
      sanction shall be necessary in respect of any such transaction if section
      8.1 has been complied with;

	 	 
	(4) 	
      to direct or authorize the Warrant Agent to exercise any
      power, right, remedy or authority given to it by this Indenture in any
      manner specified in any such Extraordinary Resolution or to refrain from
      exercising any such power, right, remedy or authority;

	 	 
	(5) 	
      to waive and direct the Warrant Agent to waive any
      default of the Corporation hereunder either unconditionally or upon any
      condition specified in such Extraordinary Resolution;

	 	 
	(6) 	
      to restrain any Holder from taking or instituting any
      suit, action or proceeding for the purpose of enforcing any of the
      covenants of the Corporation contained in this Indenture or the Warrant
      Certificates, or for the execution of any power
  hereunder;

30 

	(7) 	
      to direct any Holder who, as such, has brought any
      action, suit or proceeding to stay or discontinue or otherwise deal with
      the same upon payment of the costs, charges and expenses reasonably and
      properly incurred by such Holder in connection therewith; and

	 	 
	(8) 	
      to amend, alter or repeal any Extraordinary Resolution
      previously passed or sanctioned by the Holders.

	 	 
	9.12	
      MEANING OF “EXTRAORDINARY RESOLUTION”

	 	 
	(1) 	
      The expression “Extraordinary Resolution” when
      used in this Indenture means, subject as provided in this Article, a
      resolution proposed to be passed at a meeting of Holders duly convened and
      held in accordance with the provisions of this Article 9 at which there
      are Holders present in person or by proxy who are entitled to acquire at
      least 20% of the aggregate number of Common Shares which may be acquired
      pursuant to the exercise of all of the then outstanding Warrants and
      passed by the affirmative votes of the Holders entitled to acquire at
      least 66 2/3% of the aggregate number of Common Shares which may be
      acquired pursuant to the exercise of all of the then outstanding Warrants
      represented at the meeting and voted on a poll upon such
  resolution.

	 	 
	(2) 	
      If, at any such meeting, the Holders entitled to acquire
      at least 20% of the Common Shares which may be acquired pursuant to the
      exercise of all of the then outstanding Warrants are not present in person
      or by proxy within 30 minutes after the time appointed for the meeting,
      then the meeting, if convened by or on the requisition of the Holders,
      shall be dissolved; but in any other case it shall stand adjourned to such
      date, being not less than 14 nor more than 60 days later, and to such
      place and time as may be appointed by the chairman. Not less than seven
      days' prior notice shall be given of the time and place of such adjourned
      meeting in the manner provided in Article 10. Such notice must state that
      at the adjourned meeting the Holders present in person or by proxy shall
      form a quorum but it shall not be necessary to set forth the purposes for
      which the meeting was originally called or any other particulars. At the
      adjourned meeting, the Holders present in person or by proxy shall form a
      quorum and may transact the business for which the meeting was originally
      convened and a resolution proposed at such adjourned meeting and passed by
      the requisite vote as provided in subsection 9.12(1) shall be an
      Extraordinary Resolution within the meaning of this Indenture,
      notwithstanding that Holders entitled to acquire at least 20% of the
      Common Shares which may be acquired pursuant to the exercise of all of the
      then outstanding Warrants are not present in person or by proxy at such
      adjourned meeting.

	 	 
	(3) 	
      Votes on an Extraordinary Resolution shall always be
      given on a poll and no demand for a poll on an Extraordinary Resolution
      shall be necessary.

	9.13 	
      POWERS CUMULATIVE

It is hereby declared and agreed that any one or more of the
powers and/or any combination of the powers in this Indenture stated to be
exercisable by the Holders by Extraordinary Resolution or otherwise may be
exercised from time to time and the exercise of any one or more of such powers
or any combination of powers from time to time shall not be deemed to exhaust
the rights of the Holders to exercise the same or any other such power or
combination of powers thereafter from time to time. 

	9.14 	
      MINUTES

Minutes of all resolutions and proceedings at every meeting of
Holders shall be made and duly entered in books to be from time to time provided
for that purpose by the Warrant Agent at the expense of the Corporation, and any
such minutes as aforesaid, if signed by the chairman or secretary of the meeting
at which such resolutions were passed or proceedings had, or by the chairman or
secretary of the next succeeding meeting (if any) of the Holders, shall be prima
facie evidence of the matters therein stated and, until the contrary is
proved, every such meeting in respect of the proceedings of which minutes shall
have been made shall be deemed to have been duly held and convened, and all
resolutions passed thereat or proceedings taken thereat, to have been duly
passed and taken. 

31 

	9.15 	
      INSTRUMENTS IN WRITING

All actions which may be taken and all powers which may be
exercised by the Holders at a meeting held as hereinbefore provided in this
Article provided may also be taken and exercised by Holders entitled to acquire
at least 66 2/3% of the Common Shares which may be acquired pursuant to the
exercise of all of the then outstanding Warrants by an instrument in writing
signed in one or more counterparts and the expression “Extraordinary
Resolution” when used in this Indenture shall include an instrument so
signed. 

	9.16 	
      BINDING EFFECT OF
RESOLUTIONS

Every resolution and every Extraordinary Resolution passed in
accordance with the provisions of this Article 9 at a meeting of Holders shall
be binding upon all Holders, whether present at or absent from such meeting, and
every instrument in writing signed by the Holders in accordance with section
9.15 shall be binding upon all the Holders of Warrants, whether signatories
thereto or not, and each and every Holder shall be bound to give effect
accordingly to every such resolution, Extraordinary Resolution and instrument in
writing. 

ARTICLE 10
NOTICES 

	10.1 	
      NOTICE TO THE CORPORATION AND THE WARRANT
    AGENT

	(1) 	
      Unless herein otherwise expressly provided, any notice to
      be given hereunder to the Corporation or the Warrant Agent shall be deemed
      to be validly given if delivered or if sent by registered letter, postage
      prepaid, or by facsimile transmission:

	 	 	if to the Corporation: 
	 	 	 	  	  
	 	 	 	Bridgeport Ventures Inc. 
	 	 	 	357 Bay Street, Suite 900 
	 	 	 	Toronto, Ontario 
	 	 	 	Canada M5T 2T7 
	 	 	 	  	  
	 	 	 	Attention: 	President 
	 	 	 	Fax: 	(416) 350-2356 
	 	 	 	  	  
	 	 	with a copy to: 
	 	 	 	  	  
	 	 	 	Cassels Brock & Blackwell LLP
  
	 	 	 	2100 Scotia Plaza 
	 	 	 	40 King Street West 
	 	 	 	Toronto, Ontario M5H 3C2 
	 	 	 	  	  
	 	 	 	Attention: 	Jay Goldman 
	 	 	 	Fax: 	(416) 644-9337 

32 

	 	 	if to the Warrant Agent: 
	 	 	 	  	  
	 	 	 	Valiant Trust Company 
	 	 	 	Suite 1800, 130 King Street West
  
	 	 	 	Toronto, Ontario M5X 1A9 
	 	 	 	  	  
	 	 	 	Attention: 	Manager, Client Services 
	 	 	 	Fax: 	(416) 360-1646 

and any such notice delivered in
accordance with the foregoing shall be deemed to have been received on the date
of delivery or if sent by facsimile transmission, on the first Business Day
following such transmission or, if mailed, on the fifth Business Day following
the date of the postmark on such notice. 

	(2) 	The Corporation or the Warrant Agent, as the
      case may be, may from time to time notify the others in the manner
      provided in subsection 10.1(1) of a change of address which, from the
      effective date of such notice and until changed by like notice, shall be
      the address of the Corporation or the Warrant Agent, as the case may be,
      for all purposes of this Indenture. 
	  	  
	10.2 	NOTICE TO HOLDERS OF WARRANTS
  

Except as herein otherwise expressly provided and subject to
section 10.3, any notice required or permitted to be given to Holders under the
provisions of this Indenture shall be deemed to be validly given if personally
delivered or if sent by ordinary post to the Holders at their addresses
appearing in one of the registers hereinbefore mentioned. Any notice so sent
shall be deemed to have been received on the next Business Day after the date of
delivery to such address or, if mailed, on the fifth Business Day following the
date on which it was mailed. Accidental error or omission in giving notice or
accidental failure to give notice to Holders shall not invalidate any action or
proceeding founded thereon. In determining under any provision hereof the date
when notice of any meeting or other event must be given, the date of giving
notice shall be included and the date of the meeting or other event shall be
excluded. 

	10.3 	
      MAIL SERVICE
INFORMATION

	(1) 	
      If by reason of any interruption of mail service, actual
      or threatened, any notice to be given to the Holders, the Warrant Agent or
      the Corporation would be unlikely to reach its destination in the ordinary
      course of mail, such notice shall be valid and effective only if the
      notice is:

	 	 	 
		(a) 	
      in the case of the Warrant Agent or the Corporation,
      delivered to an officer of the party to which it is addressed or if sent
      to such party, at the appropriate address in accordance with section 10.1
      by facsimile or other means of prepaid transmitted or recorded
      communication; and

	 	 	 
		(b) 	
      in the case of Holders, published once (i) in the
      national edition of The Globe & Mail; and (ii) in such other place or
      places and manner, if any, as the Warrant Agent may require.

	 	 	 
	(2) 	
      Any notice given to the Holders by publication shall be
      deemed to have been given on the last day on which publication shall have
      been effected as required pursuant to subsection
10.3(1).

33 

ARTICLE 11 
CONCERNING THE WARRANT AGENT

	11.1 	WARRANT INDENTURE LEGISLATION 
	  	  
	
      (1) 
	
      The expression “Indenture Legislation” means the
      provisions, if any, of any statute of Canada or any province thereof, and
      of any regulations under any such statute, relating to warrant indentures
      and to the rights, duties and obligations of warrant agents under warrant
      indentures and of corporations issuing their securities under warrant
      indentures, to the extent that such provisions may at the time be in force
      and applicable to this Indenture or the Corporation. 

	
       
	
       

	
      (2) 
	
      The Corporation and the Warrant Agent agree that each
      shall at all times in relation to this Indenture and in relation to any
      action to be taken hereunder observe and comply with and be entitled to
      the benefits of Indenture Legislation. 

	
       
	
       

	
      (3) 
	
      If and to the extent that any provision of this Indenture
      limits, qualifies or conflicts with any mandatory requirement of Indenture
      Legislation, such mandatory requirement shall prevail. 

	  	  
	11.2 	NO CONFLICT OF INTEREST

The Warrant Agent represents to the Corporation that at the
date of the execution and delivery of this Indenture there exists no material
conflict of interest in its duties and obligations as a warrant agent hereunder.
In the event of a material conflict of interest arising in the Warrant Agent’s
role as warrant agent hereunder the Warrant Agent shall, as soon as practicable
but in any case within 20 days after ascertaining that it has such material
conflict of interest, either eliminate the same or assign its duties and
obligations hereunder to a successor Warrant Agent approved by the Corporation.
Notwithstanding the foregoing provisions of this section, if any such material
conflict of interest exists or hereafter shall exist, the validity and
enforceability of this Indenture and the Warrant Certificate(s) shall not be
affected in any manner whatsoever by reason hereof.

	11.3 	REPLACEMENT OF WARRANT AGENT 
	  	  
	
      (1) 
	
      The Warrant Agent may resign and be discharged from all
      duties and liabilities hereunder by giving to the Corporation at least 45
      days' notice in writing or such shorter notice as the Corporation may
      accept as sufficient. The Holders by Extraordinary Resolution shall have
      the power at any time to remove the existing Warrant Agent and to appoint
      a new Warrant Agent. If the Warrant Agent resigns or is removed by
      Extraordinary Resolution or is dissolved, becomes bankrupt, goes into
      liquidation or otherwise becomes incapable of acting hereunder, the
      Corporation shall forthwith appoint a new Warrant Agent unless a new
      Warrant Agent has already been appointed by the Holders; failing such
      appointment by the Corporation, the retiring Warrant Agent or any Holder
      may apply to a judge of a court having jurisdiction, on such notice as
      such judge may direct, for the appointment of a new Warrant Agent; but any
      new Warrant Agent so appointed by the Corporation or by the Court shall be
      subject to removal as aforesaid by the Holders. Any new Warrant Agent
      appointed under any provision of this section must be a corporation
      authorized to carry on the business of a transfer agent in the Province of
      Ontario and, if required by the applicable warrant indenture legislation
      of any other province, in that other province, and must be a corporation
      which is independent of the Corporation and has no material conflict of
      interest. On any new appointment the new Warrant Agent shall be vested
      with the same powers, rights, duties and responsibilities as if it had
      been originally named herein as Warrant Agent without any further
      assurances conveyance, act or deed. If, for any reason, it becomes
      necessary or expedient to execute any further deed or assurance, the
      former Warrant Agent shall, at the expense of the Corporation, execute the
same in favour of the new warrant agent. 

34 

	(2) 	
      Any corporation into which the Warrant Agent may be
      merged or with which it may be consolidated or amalgamated or any
      corporation resulting from any merger, consolidation or amalgamation to
      which the Warrant Agent shall be a party or any corporation succeeding to
      the transfer agency business of the Warrant Agent, shall be the successor
      Warrant Agent under this Indenture without the execution of any instrument
      or any further act.

	 	 
	(3) 	
      Upon the appointment of a new Warrant Agent, the
      Corporation shall promptly notify the Holders thereof in the manner
      prescribed by section 10.2 hereof.

	 	 
	11.4	
      EVIDENCE, EXPERTS AND ADVISERS

	 	 
	(1)	
       In addition to the reports, certificates, opinions
      and other evidence required by this Indenture, the Corporation shall
      furnish to the Warrant Agent such additional evidence of compliance with
      any provision hereof, and in such form, as may be prescribed by Indenture
      Legislation or as the Warrant Agent may reasonably require by written
      notice to the Corporation.

	 	 
	(2)	
      In the exercise of its rights and duties hereunder, the
      Warrant Agent may, if it is acting in good faith, rely as to the truth of
      the statements and the accuracy of the opinions expressed in statutory
      declarations, opinions, reports, written requests, consents, or orders of
      the Corporation, certificates of the Corporation or other evidence
      furnished to the Warrant Agent pursuant to any provision hereof or any
      Indenture Legislation or pursuant to a request of the Warrant Agent, not
      only as to its due execution and the validity and effectiveness of its
      provisions, but also to the truth and acceptability of any information
      therein contained which the Warrant Agent in good faith believes to be
      genuine.

	 	 
	(3)	
      Proof of the execution of an instrument in writing,
      including a Holders' Request, by any Holder may be made by the certificate
      of a notary public, or other officer with similar powers, that the person
      signing such instrument acknowledged to it the execution thereof, or by an
      affidavit of a witness to such execution or in any other manner which the
      Warrant Agent may consider adequate.

	 	 
	(4)	
      The Warrant Agent may, at the expense of the Corporation,
      employ or retain such counsel, accountants, appraisers or other experts or
      advisers as it may reasonably require for the purpose of discharging its
      duties hereunder and may pay reasonable remuneration for all services so
      performed by any of them, without taxation of costs of any counsel, and
      shall not be responsible for any misconduct or negligence on the part of
      any such experts or advisers who have been appointed with reasonable care
      by the Warrant Agent.

	 	 
	11.5	
      WARRANT AGENT MAY DEAL IN
  SECURITIES

Subject to section 11.2, the Warrant Agent may buy, sell, lend
upon and deal in securities of the Corporation and generally contract and enter
into financial transactions with the Corporation or otherwise, without being
liable to account for any profits made thereby. 

	11.6 	
      WARRANT AGENT NOT ORDINARILY
  BOUND

Except as otherwise specifically provided herein, the Warrant
Agent shall not, subject to the provisions of Indenture Legislation, be bound to
give notice to any Person of the execution hereof, nor to do, observe or perform
or see to the observance or performance by the Corporation of any of the
obligations herein imposed upon the Corporation or of the covenants on the part
of the Corporation herein contained. 

35 

	11.7 	
      WARRANT AGENT NOT REQUIRED TO GIVE
  SECURITY

The Warrant Agent shall not be required to give any bond or
security in respect of the execution or administration of its duties under this
Indenture or otherwise in respect of the premises. 

	11.8 	
      WARRANT AGENT NOT REQUIRED TO GIVE NOTICE OF
      DEFAULT

The Warrant Agent shall not be bound to give any notice or do
or take any act, action or proceeding by virtue of the powers conferred on it
hereby unless and until it shall have been required to do so under the terms
hereof; nor shall the Warrant Agent be required to take notice of any default
hereunder, unless and until notified in writing of such default, which notice
shall distinctly specify the default desired to be brought to the attention of
the Warrant Agent and in the absence of any such notice the Warrant Agent may
for all purposes of this Indenture conclusively assume that no default has been
made in the observance or performance of any of the representations, warranties,
covenants, agreements or conditions contained herein. Any such notice shall in
no way limit any discretion herein given to the Warrant Agent to determine
whether or not the Warrant Agent shall take action with respect to any default.

	11.9 	
      ACCEPTANCE OF APPOINTMENT

The Warrant Agent hereby accepts its appointment as warrant
agent under this Indenture and agrees to perform its duties hereunder upon the
terms and conditions herein set forth or referred to unless and until discharged
therefrom by resignation or in some other lawful way.

	11.10 	
      DUTIES OF WARRANT AGENT

The Warrant Agent, in exercising its powers and discharging its
duties hereunder, shall: 

	(1) 	
      act honestly and in good faith; and

	 	 	 
	(2) 	
      exercise the care, diligence and skill that a reasonably
      prudent warrant agent would exercise in comparable
circumstances.

	 	 	 
	11.11	
      ACTIONS BY WARRANT AGENT

	 	 	 
	(1) 	
      The Warrant Agent shall have the power to institute and
      to maintain such actions and proceedings as it may consider necessary or
      expedient to preserve, protect or enforce its interests and the interests
      of the Holders.

	 	 	 
	(2) 	
      Subject only to section 11.9, the obligation of the
      Warrant Agent to commence or continue any act, action or proceeding for
      the purpose of enforcing any rights of the Warrant Agent or the Holders
      hereunder shall be conditional upon the Holders delivering to the Warrant
      Agent:

	 	 	 
	 	(a) 	a Holder's Request or Extraordinary Resolution directing
      the Warrant Agent to take such act, action, or proceeding;
	 	 	 
		(b) 	
      sufficient funds to commence or continue such act, action
      or proceeding; and

	 	 	 
		(c)	
       an indemnity reasonably satisfactory to the Warrant
      Agent to protect and hold harmless the Warrant Agent against the costs,
      charges and expenses and liabilities to be incurred thereby and any loss
      and damages it may suffer by reason thereof.

36 

	(3) 	
      None of the provisions contained in this Indenture shall
      require the Warrant Agent to expend or risk its own funds or otherwise
      incur financial liability in the performance of any of its duties or in
      the exercise of any of its rights or powers unless indemnified and funded
      as aforesaid.

	 	 
	(4) 	
      The Warrant Agent may, before commencing or at any time
      during the continuance of any such act, action or proceeding, require the
      Holders, at whose instance it is acting, to deposit with the Warrant Agent
      the Warrants held by them, for which Warrants the Warrant Agent shall
      issue receipts.

	 	 
	11.12	
      PROTECTION OF WARRANT
AGENT

By way of supplement to the provisions of any law for the time
being relating to Warrant Agents it is expressly declared and agreed as follows:

	(1) 	
      the Warrant Agent shall not be liable for or by reason of
      any statements of fact or recitals in this Indenture or in the Warrant
      Certificates (except the representation contained in section 11.2) or be
      required to verify the same, but all such statements or recitals are and
      shall be deemed to be made by the Corporation;

	 	 
	(2) 	
      nothing herein contained shall impose any obligation on
      the Warrant Agent to see to or to require evidence of the registration or
      filing (or renewal thereof) of this Indenture or any instrument ancillary
      or supplemental hereto; and

	 	 
	(3) 	
      the Warrant Agent shall not be bound to give notice to
      any person or persons of the execution hereof.

	11.13 	
      INDEMNIFICATION OF THE WARRANT
  AGENT

The Warrant Agent shall at all times be indemnified and saved
harmless by the Corporation from and against all claims, demands, losses,
actions, causes of action, costs, charges, expenses, damages and liabilities
whatsoever arising in connection with this Indenture, including, without
limitation, those arising out of or related to actions taken or omitted to be
taken by the Warrant Agent contemplated hereby, legal fees and disbursements on
a solicitor and client basis and costs and expenses incurred in connection with
the enforcement of this indemnity, which the Warrant Agent may suffer or incur,
whether at law or in equity, in any way caused by or arising, directly or
indirectly, in respect of any act, deed, matter or thing whatsoever made, done,
acquiesced in or omitted in or about or in relation to the execution of its
duties as Warrant Agent. The foregoing provisions of this section do not apply
to the extent that in any circumstances there has been acts of gross negligence
or wilful misconduct by the Warrant Agent. This indemnity shall survive the
termination or discharge of this Indenture and the resignation or removal of the
Warrant Agent. 

	11.14 	
      THIRD PARTY INTERESTS

Each party to this Indenture hereby represents to the Warrant
Agent that any account to be opened by, or interest to held by the Warrant Agent
in connection with this Indenture, for or to the credit of such party, either
(i) is not intended to be used by or on behalf of any third party; or (ii) is
intended to be used by or on behalf of a third party, in which case such party
hereto agrees to complete and execute forthwith a declaration in the Warrant
Agent's prescribed form as to the particulars of such third party.

	11.15 	
      NOT BOUND TO ACT

The Warrant Agent shall retain the right not to act and shall
not be liable for refusing to act if, due to a lack of information or for any
other reason whatsoever, the Warrant Agent, in its sole judgment, determines that such act might cause it to be in non-compliance
with any applicable anti-money laundering or anti-terrorist legislation,
regulation or guideline. Further, should the Warrant Agent, in its sole
judgment, determine at any time that its acting under this Indenture has
resulted in its being in non-compliance with any applicable anti-money
laundering or anti-terrorist legislation, regulation or guideline, then it shall
have the right to resign on 10 days written notice to the Corporation, provided
(i) that the Warrant Agent's written notice shall describe the circumstances of
such non-compliance; and (ii) that if such circumstances are rectified to the
Warrant Agent's satisfaction within such ten day period, then such resignation
shall not be effective. 

37 

	11.16 	
      PRIVACY LAWS

The parties acknowledge that federal and/or provincial
legislation that addresses the protection of individuals’ personal information
(collectively, “Privacy Laws”) applies to obligations and activities
under this Indenture. Despite any other provision of this Indenture, neither
party shall take or direct any action that would contravene, or cause the other
to contravene, applicable Privacy Laws. The Corporation shall, prior to
transferring or causing to be transferred personal information to the Warrant
Agent, obtain and retain required consents of the relevant individuals to the
collection, use and disclosure of their personal information, or shall have
determined that such consents either have previously been given upon which the
parties can rely or are not required under the Privacy Laws. The Warrant Agent
shall use commercially reasonable efforts to ensure that its services hereunder
comply with Privacy Laws.

ARTICLE 12 
SUPPLEMENTAL INDENTURES 

	
      12.1 
	
      SUPPLEMENTAL INDENTURES 

	
      
	
      
	
      

	
       	
       
	
      (1) 
	
      From time to time the Warrant Agent and, when authorized
      by a resolution of its Directors, the Corporation may, subject to the
      provisions hereof, and they shall, when required by this Indenture,
      execute, acknowledge and deliver, by their proper officers, deeds or
      indentures supplemental hereto, which thereafter shall form part hereof,
      for any one or more of the following purposes: 

	
      
	
      
	
      

	
       	
       	
       
	
      

      
	
      (a) 
	
      adding to the covenants of the Corporation herein
      contained for the protection of the Holders in addition to those herein
      specified; 

	
      
	
      
	
      

	
       	
       	
       
	
      

      

      

      
	
      (b) 
	
      making such provision not inconsistent with this
      Indenture as may be necessary or desirable with respect to matters or
      questions arising hereunder provided that the Warrant Agent shall be of
      the opinion, relying on the advice of its counsel, that such provisions
      shall not be prejudicial to the interests of the Holders; 

	
       	
       	
       
	
      
	
      
	
      

	
      

      
	
      (c) 
	
      adding to or altering the provisions hereof in respect of
      the transfer of Warrants, making provision for the exchange of Warrant
      Certificates and making any modification in the   form of
      the Warrant Certificate which does not affect the substance thereof;
    

	
       	
       	
       
	
      
	
      
	
      

	
      

      

      
	
      (d) 
	
      evidencing the succession, or successive successions, of
      other corporations to the Corporation and the covenants of and obligations
      assumed by any such successor in accordance with the provisions of this
      Indenture; 

	
       	
       	
       
	
      
	
      
	
      

	
      
	
      (e) 
	
      giving effect to any Extraordinary Resolution passed as
      provided in Article 9; 

	
       	
       	
       
	
      
	
      
	
      

	
      
	
      (f) 
	
      setting forth adjustments in the application of the
      provisions of Article 4; and 

38 

	 	(g) 	
      for any other purpose not inconsistent with the terms of
      this Indenture.

	(2) 	
      The Warrant Agent may also, without the consent or
      concurrence of the Holders, by supplemental Indenture or otherwise, concur
      with the Corporation in making any changes or corrections in this
      Indenture which it has been advised by its counsel are required for the
      purpose of curing or correcting any ambiguity or defective or inconsistent
      provision or clerical omission or mistake or manifest error contained
      herein or in any deed or indenture supplemental or ancillary hereto,
      provided that in the opinion of the Warrant Agent the rights of the
      Warrant Agent and of the Holders are in no way prejudiced
  thereby.

ARTICLE 13 
GENERAL PROVISIONS 

	13.1 	
      EXECUTION

This Indenture may be simultaneously executed in several
counterparts, and may be executed by facsimile or other means of electronic
communication producing a printed copy, each of which when so executed shall be
deemed to be an original and such counterparts together shall constitute one and
the same instrument and notwithstanding their date of execution they shall be
deemed to be dated as of the date hereof.

	13.2 	
      FORMAL DATE

This Indenture may be referred to as bearing the formal date of
December 20, 2010 irrespective of the actual date of execution hereof. 

	13.3 	
      SATISFACTION AND DISCHARGE OF
  INDENTURE

Upon the earlier of: 

	(1) 	
      the delivery to the Warrant Agent of the Default Notice
      in accordance with Section 6.3 hereof;

	 	 
	(2) 	
      the date by which there shall have been delivered to the
      Warrant Agent for exercise or destruction all Warrant Certificates
      theretofore issued hereunder; and

	 	 
	(3) 	
      the Expiry Time;

and if all certificates representing Common Shares, if any,
required to be issued in compliance with the provisions hereof have been issued
and delivered hereunder or to the Warrant Agent in accordance with such
provisions, this Indenture shall cease to be of any force and effect and the
Warrant Agent, on demand of and at the cost and expense of the Corporation and
upon delivery to the Warrant Agent of a certificate of the Corporation stating
that all conditions precedent to the satisfaction and discharge of this
Indenture have been complied with, shall execute proper instruments
acknowledging satisfaction of and discharging this Indenture. Notwithstanding
the foregoing, the indemnities provided to the Warrant Agent by the Corporation
hereunder shall remain in full force and effect and survive the termination of
this Indenture. 

39 

	13.4 	
      PROVISIONS OF INDENTURE AND WARRANTS FOR THE SOLE
      BENEFIT OF PARTIES AND HOLDERS

Nothing in this Indenture or in the Warrant Certificates,
expressed or implied, shall give or be construed to give to any person other
than the parties thereto and the Holders, as the case may be, any legal or
equitable right, remedy or claim under this Indenture, or under any covenant or
provision herein or therein contained, all such covenants and provisions being
for the sole benefit of the parties hereto and the Holders. 

IN WITNESS WHEREOF the parties hereto have executed
these presents under their respective corporate seals and the hands of their
proper officers in that behalf. 

	 	BRIDGEPORT VENTURES INC.

	 	 	 	 
	 	Per: 	 	 
	 	 	 Authorized Signing Officer
    	 
	 	
	 	 	 	 
	 	VALIANT TRUST COMPANY 
	 	 	 	 
	 	Per: 	 	 
	 	 	 Authorized Signing Officer
    	 
	 	
	 	 	 	 
	 	Per: 	 	 
	 	 	 Authorized Signing Officer
    	 
	 	

SCHEDULE “A” 
to the Warrant Indenture between
Bridgeport Ventures Inc. and Valiant Trust Company dated as of December 20,
2010 

FORM OF WARRANT CERTIFICATE 

[For Warrants offered or sold to, or for the account or
benefit of, persons in the United States or “U.S. persons,” as such term is
defined in Regulation S under the United States Securities Act of 1933, as
amended, please include the following legend: 

“THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES
ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”), OR
UNDER THE LAWS OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY
PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION, THAT SUCH
SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO
THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF
REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE
LOCAL LAWS AND REGULATIONS, (C) IN COMPLIANCE WITH THE EXEMPTION FROM
REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY (1) RULE 144 THEREUNDER,
IF AVAILABLE, OR (2) RULE 144A THEREUNDER, IF AVAILABLE, AND, IN BOTH CASES, IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION
THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY
APPLICABLE STATE SECURITIES LAWS, AND, IN THE CASE OF (C)(1) OR (D) ABOVE, AFTER
THE SELLER FURNISHES TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED
STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE CORPORATION TO SUCH EFFECT.
DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF
TRANSACTIONS ON STOCK EXCHANGES IN CANADA.”] 

A-2 

WARRANT CERTIFICATE 
BRIDGEPORT VENTURES INC.

(Incorporated under the laws of Ontario) 

	
      No. • 
	
      • 

		
      WARRANTS entitling the Holder to acquire, subject to
      adjustment, one Common Share of Bridgeport Ventures Inc for each Warrant
      represented hereby. 

THIS CERTIFICATE IS TO CERTIFY that for value received •
(herein referred to as the “Holder”) is the registered holder of the
number of Warrants of Bridgeport Ventures Inc. (the “Corporation”) stated above,
and subject to adjustment and penalty provisions as set forth in the Warrant
Indenture, is entitled to acquire, at any time after the date hereof and up
until 5:00 p.m. (Toronto time) on •, 2012 (the “Expiry Date”), upon payment of
the Exercise Price, for each Warrant represented hereby, one common share of the
Corporation (a “Common Share”), all in the manner and subject to the
restrictions and adjustments set forth in the Warrant Indenture (as hereinafter
defined).

Any capitalized term in this Certificate that is not otherwise
defined herein, shall have the meaning ascribed thereto in the Warrant
Indenture. 

The Warrants represented by this Certificate are issued or
issuable in fully registrable form only under the provisions of an indenture
(which indenture together with all other instruments ancillary thereto is
referred to herein as the “Warrant Indenture”) dated as of December •, 2010
among the Corporation and Valiant Trust Company (the “Warrant Agent”). Reference
is hereby made to the Warrant Indenture for a full description of the rights of
the holders of the Warrants, the Corporation and the Warrant Agent in respect
thereof, and the terms and conditions upon which the Warrants evidenced hereby
are issued and held, all to the same effect as if the provisions of the Warrant
Indenture were herein set forth. By acceptance of this Certificate, the Holder
assents to all provisions of the Warrant Indenture. To the extent that the terms
and conditions set forth in this Certificate conflict with the terms and
conditions of the Warrant Indenture, the Warrant Indenture shall prevail. The
Corporation will furnish to the holder of this Certificate, upon request and
without charge, a copy of the Warrant Indenture. 

In the event that prior to the Expiry Date, the Holder has
not exercised the Warrants represented hereby in accordance with the terms of
the Warrant Indenture, then any Warrants represented by this Certificate which
have not been so exercised shall be deemed to have expired and shall be of no
further force and effect as of 5:00 p.m. (Toronto time) on the Expiry
Date.

Upon exercise, the Warrants so exercised shall be void and of
no value or effect. 

Certificates representing the Common Shares issued upon
exercise of the Warrants (reflecting any adjustments as provided herein and in
the Warrant Indenture) shall, within three Business Days after the Exercise
Date, be mailed by the Corporation to the address of the Holder thereof last
appearing on the register of Holders maintained by the Warrant Agent.

The right to acquire Common Shares may only be exercised by the
Holder within the time set forth above by: 

	(a) 	
      duly completing and executing the Exercise Form attached
      hereto;

A-3 

	(b) 	
      by providing a certified cheque, bank draft or money
      order in lawful money of Canada payable to the order of the Corporation
      for the aggregate purchase price of the Common Shares so subscribed;
      and

	 	 
	(c) 	
      surrendering this Warrant Certificate to the Warrant
      Agent at the Warrant Agency,

all in accordance with Section 3.2 of the Warrant
Indenture.

The Warrants represented by this Certificate shall be deemed to
be surrendered only upon personal delivery hereof or, if sent by mail or other
means of transmission, upon actual receipt thereof by the Warrant Agent at the
offices referred to above. 

Upon surrender of these Warrants, the person or persons in
whose name or names the Common Shares issuable upon exercise of the Warrants are
to be issued shall be deemed for all purposes (except as provided in the Warrant
Indenture) to be the holder or holders of record of such Common Shares and the
Corporation has covenanted that it will (subject to the provisions of the
Warrant Indenture) cause a certificate or certificates representing the Common
Shares to be delivered or mailed to the person or persons at the address or
addresses specified in the Exercise Form within five Business Days. 

The Warrant Indenture provides for adjustments to certain
rights of holders including the number of common shares issuable upon exercise
of the Warrants upon subdivision, consolidation or reclassification of the
Common Shares or any reclassification, capital reorganization, amalgamation or
merger of the Corporation and certain distributions of securities, including
rights, options or warrants to purchase Common Shares or securities convertible
or exchangeable into Common Shares or assets of the Corporation. The Holder
should refer to the Warrant Indenture which provides for adjustments in certain
other events. 

The terms and conditions relating to the Warrants and this
Certificate may be modified, changed or added to in accordance with the
provisions of the Warrant Indenture. The Warrant Indenture contains provisions
making binding upon all Holders of Warrants outstanding thereunder resolutions
passed at meetings of such Holders held in accordance with such provisions and
instruments in writing signed by the Holders entitled to acquire a specified
percentage of the Common Shares which may be acquired pursuant to the exercise
of all of the then outstanding Warrants. 

The holding of the Warrants as evidenced by this Certificate
shall not constitute, or be construed as conferring upon, a Holder any right or
interest whatsoever as a shareholder of the Corporation except such rights as
may be provided in the Warrant Indenture or in this Certificate. 

The Holder of this Certificate may, upon compliance with the
reasonable requirements of the Warrant Agent and upon surrender of this
Certificate, exchange this Certificate for another Certificate or Certificates
entitling the Holder thereof to receive, in the aggregate, the same number of
Common Shares as are issuable under this Certificate. 

The Warrants evidenced by this Certificate may only be
transferred in accordance with applicable securities laws and upon due execution
and delivery to the Warrant Agent of a Transfer Form in the form attached hereto
and in compliance with all the conditions prescribed in the Warrant Indenture
and compliance with such other reasonable requirements as the Warrant Agent may
prescribe. 

The Warrants represented hereby have not been registered under
the U.S. Securities Act or any applicable state securities laws. Accordingly,
Warrants may not be distributed in the United States or to, or for the benefit
of, a “U.S. person” (as defined in Regulation S under the U.S. Securities Act)
unless the distribution or transfer is being made in a transaction that does not
require registration under the U.S. Securities Act or any applicable state
securities laws, and it has furnished to the Corporation an opinion of counsel in form and substance satisfactory to the Corporation
to such effect. Compliance with the securities laws of any jurisdiction is the
responsibility of the holder of Warrants or its transferee. 

A-4 

This Warrant Certificate shall not be valid for any purpose
until it has been countersigned by or on behalf of the Warrant Agent under the
Warrant Indenture. 

The registered holder of this Warrant Certificate expressly
acknowledges having requested, and consents to, the drawing in the English
language only of this Warrant Certificate evidencing the Warrants registered in
his name and all documents relating to such Warrants. Le détenteur inscrit du
présent certificat de bons de souscription reconnaît expressément avoir demandé
et consenti que le présent certificat attestant qu'il est le détenteur inscrit
de bons de souscription, ainsi que tous les documents s'y rapportant, soient
rédigés en anglais seulement. 

Time shall be of the essence hereof. 

IN WITNESS WHEREOF the Corporation has caused this Warrant
Certificate to be signed as of the _____day of ___________________, 2010. 

	 	BRIDGEPORT VENTURES INC 
	 	 
	 	By: 	 	 
	 	 	Authorized Signing Officer	 

This Warrant Certificate is one of the Warrant Certificates
referred to in the Warrant Indenture. 

	 	VALIANT TRUST COMPANY 
	 	Warrant Agent, Toronto, Ontario

	 	 
	 	By: 	 	 
	 		Authorized Signing Officer 	 

EXERCISE FORM 

	To: 	BRIDGEPORT VENTURES INC. 
	And To: 	VALIANT TRUST COMPANY

	(1) 		The undersigned hereby irrevocably
      subscribes for, and exercises his right to be issued, the number of Common
      Shares set forth below, such Common Shares being issuable upon exercise of
      such Warrants pursuant to the terms specified in the said Warrants and the
      Warrant Indenture. 
	  	 	  
	(2) 		The undersigned represents, warrants
      and certifies as follows (one (only) of the following must be checked):
  
	  	 	  
	A. 	[   ] 	The undersigned holder (i) at the
      time of exercise of the Warrants is not in the United States and is not
      exercising the Warrants on behalf of a person in the United States; (ii)
      is not a “U.S. person” (a “U.S. Person”), as defined in Regulation S under
      the United States Securities Act of 1933, as amended (the “U.S. Securities
      Act”), and is not exercising the Warrants on behalf of a “U.S. Person”;
      and (iii) did not execute or deliver this exercise form in the United
      States. 
	  	 	  
	B. 	[   ] 	The undersigned holder has delivered
      to Valiant Trust Company an opinion of counsel of recognized standing in
      form and substance satisfactory to the Corporation to the effect that an
      exemption from the registration requirements of the U.S. Securities Act
      and applicable state securities laws is available. 

Note: The undersigned holder understands that unless Box
A above is checked, the certificate representing the Common Shares will bear a
legend restricting transfer without registration under the U.S. Securities Act
and applicable state securities laws unless an exemption from registration is
available. Certificates representing Common Shares will not be registered or
delivered to an address in the United States unless Box B above is checked. 

The undersigned hereby irrevocably directs that the Common
Shares be issued and delivered as follows: 

	  	  	Number of 
	Name in full 	Address (include Postal Code) 	Common Shares 
	 	 	 
	 	 	 
	 	 	 

(Please print full name in which certificate(s) are to be
issued.) 

Dated this _______day of ________________________,
____________. 

	 	 	 	 
	Signature Guaranteed 	 	Signature of Registered Holder
	 
	 	 	 	 
	 	 	 	 
	  	 	Name of Registered Holder 	 

	[   ] 	
      Please check box if certificates representing these
      Common Shares are to be delivered at the office of the Warrant Agent where
      this Warrant Certificate is surrendered, failing which the certificates
      shall be mailed to the address set forth
above.

Instructions: 

The registered holder may exercise his right to receive Common Shares by completing this form and surrendering this form and the Warrant Certificate representing the Warrants being exercised, together with the applicable payment therefor, to Valiant
Trust Company, Suite 1800, 130 King Street West, Toronto, Ontario M5X 1A9. Certificates for Common Shares shall be delivered or mailed within three Business Days after the exercise of the Warrants. 

If the Exercise Form indicates that Common Shares are to be issued to a person or persons other than the registered holder of the Certificate, the signature on this Exercise Form must be guaranteed by a Canadian chartered bank or eligible guarantor
institution with membership in an approved signature guarantee medallion program.

If the Exercise Form is signed by a trustee, executor, administrator, curator, guardian, attorney, officer of a corporation or any person acting in a fiduciary or representative capacity, the certificate must be accompanied by evidence of authority
to sign satisfactory to the Warrant Agent and the Corporation. 

If Box B is checked, any opinion tendered must be in form and substance satisfactory to the Corporation. Holders planning to deliver an opinion of counsel in connection with the exercise of Warrants should contact the Corporation in advance to
determine whether any opinions to be tendered will be acceptable to the Corporation. 

TRANSFER FORM 

ANY TRANSFER OF WARRANTS WILL REQUIRE COMPLIANCE WITH
APPLICABLE 
SECURITIES LEGISLATION. TRANSFERORS AND TRANSFEREES ARE
URGED TO 
CONTACT LEGAL COUNSEL BEFORE EFFECTING ANY SUCH TRANSFER.

	To: 	BRIDGEPORT VENTURES INC. 
	And To: 	VALIANT TRUST COMPANY

FOR VALUE RECEIVED, the undersigned hereby sells, transfers and
assigns to ______________________, ________ Warrants represented by this Warrant
Certificate and does hereby irrevocably appoint ____________________ as its
attorney with full power of substitution to transfer the said Warrants on the
appropriate register of the Warrant Agent. 

DATED this  ______ day of  __________________________
,  ____________. 

	 	 	 	 
	Signature Guaranteed 	 	Signature of Registered Holder
	 
	 	 	 	 
	 	 	 	 
	  	 	Name of Registered Holder 	 

(The following to be completed by the transferee) 

The undersigned acknowledges that it shall notify the
Corporation prior to any exercise or deemed exercise of the Warrants if the
representations, warranties and certifications contained in this Transfer Form
are no longer true and correct. 

	 	 	 	 
	Signature Guaranteed 	 	Signature of Transferee 	 
	 	 	 	 
	 	 	 	 
	Date 	 	Name of Transferee (Please Print) 	 

Instructions: 

Signature of the Holder must be the signature of the registered
holder appearing on the face of this Warrant Certificate. 

If this Transfer Form is signed by a trustee, executor,
administrator, curator, guardian, attorney, officer of a corporation or any
person acting in a fiduciary or representative capacity, the certificate must be
accompanied by evidence of authority to sign satisfactory to the Warrant Agent
and the Corporation, acting reasonably. 

The signature on this Transfer Form must be guaranteed by a
Canadian chartered bank or eligible guarantor institution with membership in an
approved signature guarantee medallion program.` 

Warrants shall only be transferable in accordance with
applicable laws and the applicable provisions of the Warrant Indenture. The
transfer of Warrants may result in the Common Shares received upon the exercise
of the Warrants not being freely tradable in the jurisdiction of the purchaser.

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