Document:

Unassociated Document

     

    EXHIBIT 4.3

    

    APOLLO GOLD
CORPORATION

    SUBSCRIPTION AGREEMENT FOR COMMON
SHARES

     

    
      
        	
                TO:

              	
                APOLLO GOLD
      CORPORATION

              

      

      
        	
                AND TO:

              	
                HAYWOOD SECURITIES INC. (THE
      "UNDERWRITER")

              

      

    

     

    The undersigned (the "Subscriber") hereby irrevocably subscribes for and
offers to purchase from Apollo Gold Corporation (the "Corporation") that number of Common Shares (as
hereinafter defined) specified below at a price of Cdn$0.45 per Common
Share.  The Subscriber agrees to be bound by the terms and conditions
set forth in the attached "Terms and Conditions of Subscription for Common
Shares" and acknowledges that the Corporation and the Underwriter, and their
respective counsel, are relying upon the representations, warranties and
covenants of the Subscriber set forth therein and in the schedules thereto. The
purchase and sale of the Common Shares hereunder is being made concurrently with
offerings (collectively with the sales hereunder, "Offering") of Common Shares and Flow-Through
Shares (as hereinafter defined) (collectively, the "Offered
Securities") that the
Underwriter has agreed to purchase or to arrange for substitute purchasers
consisting of: (i) 5,555,556 Common Shares; and (ii) 13,888,889 Flow-Through
Shares at a price of Cdn$0.54 per Flow-Through Share.  The Offering
may be amended by written mutual consent of the Corporation and the Underwriter
such that the aggregate gross proceeds from the sale of the Common Shares and
Flow-Through Shares, on the same terms and conditions as the Offering (including
the sale price thereof), are increased to up to
Cdn$13,000,000.

     

    SUBSCRIPTION AND SUBSCRIBER
INFORMATION

     

    Please print ALL information (other than signatures), as
applicable, in the space provided below

    
      
        	          
      	
                 (Name of
      Subscriber):

              	 	
                 Number of Common
      Shares:

              	 	
                 x Cdn
      $0.45

              

      

      
        	 	 	 	 
	 	 	 	 
	 	 	 	 

      

      
        	 	
                 Account Reference (if
      applicable):

              	 	 	
                =

              
	          
      	 	 Aggregate
      Subscription Price:  	 

      

      
        	          
      	 By:	 	 	
                (the "Subscription
      Price")

              	 
	 	 	Authorized
      Signature	 

      

      
        	 	 (Official
      Capacity or Title – if the Subscriber is not an
      individual)	 If the Subscriber is signing
      as agent for a principal (beneficial purchaser) and is not purchasing as
      trustee or agent for accounts fully managed by it, complete the
      following:
	 	 (Name of individual whose
      signature appears above if different than the name of the subscriber
      printed above.)	 (Name of
      Principal)	 
	 	 	 	 
	 	 (Subscriber's Address,
      including City and State)	 (Principal's
      Address)	 
	 	 	 	 
	 	 	 	 
	 	 Social Security Number or Tax I.D.
      Number of Subscriber	 	 
	 	 	 	 
	 	 (Telephone
      Number)                                             	(Email
      Address)	 	 
	 	 Account Registration
      Information:	 	 Delivery Instructions as set
      forth below:	 
	 	 	 	 
	 	 (Name)	 (Name)	 
	 	 	 	 
	 	 	 (Account Reference, if
      applicable)	 
	 	 (Address, including Zip
      Code)	 (Address, including Zip
      Code)
	 	 	 
	 	 (Account Reference, if
      applicable)	 (Contact
      Name)                                                  	(Telephone
  Number)
	 	 Number and kind of securities of
      the Corporation held, directly or indirectly, if
    any:	 1.  State whether
      Subscriber is an Insider (as such term is hereinafter defined) of the
      Corporation:
	 	 	 Yes                       ̈                     No                       ̈

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
      

    

     

    
      	
               

              INSTRUCTIONS
      FOR SUBSCRIBERS

               

              The Subscriber
      must:

               

              (1)           Read this Subscription
      Agreement;

               

              (2)           Complete and execute the face page
      of this Subscription Agreement;

               

              (3)           Read and complete the Certificate
      set out in Schedule "A";

               

              (4)           Read and complete the Registration
      Rights Agreement set out in Schedule "C";

               

              (5)           Make payment for the Subscribed
      Shares as required by the Terms and Conditions; and

               

              (6)           Deliver the signed documents as
      required by the Terms and Conditions.

               

            

    

     

    

     

     

    * * * * *

     

     

    ACCEPTANCE:  The Corporation hereby (i)
accepts the above subscription subject to the terms and conditions contained in
this Subscription Agreement; (ii) represents and warrants to the Subscriber that
the representations and warranties made by the Corporation to the Underwriter in
the Underwriting Agreement (as defined herein), which are incorporated by
reference in this Subscription Agreement, are true and correct as of the date of
the Underwriting Agreement (except as waived by the Underwriter); and (iii)
agrees that the Subscriber is entitled to rely, subject to the limitations and
other terms of the Underwriting Agreement, on the representations and warranties
made by the Corporation to the Underwriter (except as waived by the Underwriter)
and on the covenants made by the Corporation (except as waived or modified by
the Underwriter) in the Underwriting Agreement, each of which are incorporated
by reference in this Subscription Agreement.

     

    
      	
              APOLLO GOLD CORPORATION

            	 
      	 
	 	 	 
	Per:	 	
              Date:

            	 
      

    

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    TERMS AND CONDITIONS OF SUBSCRIPTION
FOR

    COMMON SHARES

     

    ARTICLE
1                                INTERPRETATION

     

    
      	
              1.1

            	
              Definitions

            

    

     

    Whenever used in this Subscription
Agreement, unless there is something in the subject matter or context
inconsistent therewith, the following words and phrases shall have the
respective meanings ascribed to them as follows:

     

    "Accredited
Investor" means an
"accredited investor" as defined in Rule 501(a) under the U.S. Securities
Act.

     

    "affiliate" shall have the meaning ascribed to
such term in the Securities
Act
(Ontario).

     

    "Business
Day" means a day other than
a Saturday, Sunday or any other day on which the principal chartered banks
located in Toronto are not open for business.

     

    "Closing" shall have the meaning ascribed to
such term in Section 4.1.

     

    "Closing
Date" shall have the
meaning ascribed to such term in Section 4.1.

     

    "Closing
Time" shall have the
meaning ascribed to such term in Section 4.1.

     

    "Common
Shares" means common shares
in the capital of the Corporation.

     

    "Compensation
Options" has the meaning
ascribed in Section 8.1.

     

    "Control
Person" means a person,
company or combination of persons or companies described in clause (c) of the
definition of "distribution" in subsection 1(1) of the Securities
Act
(Ontario).

     

    "Corporation" means Apollo Gold Corporation and
includes any successor corporation to or of the Corporation.

     

    "distribution" shall have the meaning ascribed to
such term in the Securities
Act
(Ontario).

     

    "Edgar" means the SEC's Electronic Data,
Gathering, Analysis and Retrieval System, or any successor system
thereto.

     

    "Flow-Through
Shares" means Common Shares
in the capital of the Corporation being issued which qualify as "flow-through
shares" as defined in subsection 66(15) of the Tax Act.

     

    "Insider" shall have the meaning ascribed to
such term in the Securities
Act
(Ontario).

     

    "NYSE AMEX" means NYSE Amex
LLC.

     

    "NYSE AMEX
Approval" means the
approval of the listing by the NYSE AMEX of the Flow-Through Shares and Common
Shares to be sold in the Offering and issuable upon exercise of the Compensation
Options.

     

    "Offered
Securities" shall have the
meaning ascribed to such term on the face page of this Subscription
Agreement.

     

    "Offering" shall have the meaning ascribed to
such term on the face page of this Subscription Agreement.

     

    "Person" means any individual (whether acting
as an executor, trustee, administrator, legal representative or otherwise),
corporation, firm, partnership, sole proprietorship, syndicate, joint venture,
trustee, trust, unincorporated organization or association, and pronouns have a
similar extended meaning.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    "Public
Record" means, without
limitation, the prospectuses, annual information forms, annual and quarterly
reports, offering memoranda, material change reports, press releases and any
other documents or reports filed by the Corporation with Securities Regulators
during the 24 months preceding the date hereof and which are available on SEDAR
or Edgar.

     

    "Registration Rights
Agreement" means the Registration Rights Agreement
attached hereto as Schedule "C".

     

    "Registration
Statement" means the registration statement that
the Corporation agrees to file with the SEC pursuant to the Registration Rights
Agreement to register the Common Shares sold in the Offering for resale pursuant
to the terms of the Registration Rights Agreement.

     

    "Regulation
D" means Regulation D under
the U.S. Securities Act.

     

    "Regulation
S" means Regulation S under
the U.S. Securities Act.

     

    "Rights
Agreement" means the
shareholders rights plan agreement dated as of the 17th day of January, 2007  between
the Corporation and CIBC Mellon Trust Company, as rights
agent.

     

    "Rule 144A" means Rule 144A under the U.S.
Securities Act.

     

    "SEC" means the United States Securities and
Exchange Commission.

     

    "Securities
Laws" means, in respect of
the Offering, the securities laws, regulations and exchange rules having
application thereto and the rules, policies, notices and orders issued by the
Securities Regulators having application thereto, the securities laws of the
United States and the states thereof, and the respective regulations and rules
made and forms prescribed thereunder together with all applicable published
policy statements and blanket orders and rulings of the applicable securities
commissions in Canada, the SEC and all other applicable Securities Regulators
including the rules of the TSX and AMEX.

     

    "Securities
Regulators" means the securities commissions or
other securities regulatory authorities of all the Selling Jurisdictions or the
relevant Selling Jurisdiction as the context requires, including the AMEX, TSX
and SEC.

     

    "SEDAR" means the computer system for the
transmission, receipt, acceptance, review and dissemination of documents filed
in electronic format known as the System for Electronic Document Analysis and
Retrieval, which is available online at www.sedar.com

     

    "Selling
Jurisdictions" means the
provinces of Canada in which the Subscribers are resident, the United States,
and other jurisdictions agreed to by the Corporation and the Underwriter in
which the Subscribers are resident.

     

    "Subscriber" means the subscriber for Common Shares
as set out on the face page of this Subscription Agreement or, in the case of a
subscription for a beneficial owner, the beneficial owner.

     

    "Subscribed
Shares" means the number of
Common Shares set out on the face page of this Subscription
Agreement.

     

    "Subscription
Agreement" means this
subscription agreement (including any schedules hereto) and any instrument
amending this Subscription Agreement; "hereof", "hereto", "hereunder", "herein" and similar expressions mean and refer
to this Subscription Agreement and not to a particular Article or Section; and
the expression "Article" or "Section" followed by a number means and refers
to the specified Article or Section of this Subscription
Agreement.

     

    "Subscription
Price" shall have the
meaning ascribed to such term on the face page of this Subscription
Agreement.

     

    "Tax Act" means the Income Tax
Act (Canada), as amended,
re-enacted or replaced from time to time.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    "Term
Sheet" means the term sheet
delivered to potential purchasers of Common Shares, a copy of which is attached
hereto as Schedule "B".

     

    "TSX" means the Toronto Stock
Exchange.

     

    "TSX
Approval" means the
conditional approval of the Offering by the TSX.

     

    "Underwriter" means Haywood Securities
Inc.

     

    "Underwriting
Agreement" means the
underwriting agreement to be entered into between the Underwriter and the
Corporation in respect of the Offering.

     

    "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.
Person" shall have the
meaning ascribed to such term in Rule 902(k) of Regulation S under the
U.S.
Securities Act.

     

    "U.S. Securities
Act" means the United States
Securities Act of 1933, as
amended.

     

    
      	
              1.2

            	
              Gender and
      Number

            

    

     

    Words importing the singular number only
shall include the plural and vice versa, words importing the masculine gender
shall include the feminine gender and words importing persons shall include
firms and corporations and vice versa.

     

    
      	
              1.3

            	
              Currency

            

    

     

    Unless otherwise specified, all dollar
amounts in this Subscription Agreement, including the symbol "$", are expressed
in Canadian dollars.

     

    
      	
              1.4

            	
              Subdivisions, Headings and Table
      of Contents

            

    

     

    The division of this Subscription
Agreement into Articles, Sections, Schedules and other subdivisions, the
inclusion of headings and the provision of a table of contents are for
convenience of reference only and shall not affect the construction or
interpretation of this Subscription Agreement.  The headings in this
Subscription Agreement are not intended to be full or precise descriptions of
the text to which they refer.  Unless something in the subject matter
or context is inconsistent therewith, references herein to an Article, Section,
Subsection, paragraph, clause or Schedule are to the applicable article,
section, subsection, paragraph, clause or schedule of this Subscription
Agreement.

     

    ARTICLE
2                                SCHEDULES

     

    
      	
              2.1

            	
              Description of
      Schedules

            

    

     

    The following are the Schedules attached
to and incorporated in this Subscription Agreement by reference and deemed to be
a part hereof:

     

    
      	
              Schedule
"A"

            	
              -

            	
              Certificate of Accredited
      Investor

            
	 	 	 
	
              Schedule
"B"

            	
              -

            	
              Term
  Sheet

            
	 	 	 
	
              Schedule
"C"

            	
              -

            	
              Registration Rights
      Agreement

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    ARTICLE
3                                SUBSCRIPTION AND DESCRIPTION OF COMMON
SHARES

     

    
      	
              3.1

            	
              Subscription for Common
      Shares

            

    

     

    The Subscriber hereby confirms its
irrevocable subscription for and offer to purchase the Subscribed Shares from
the Corporation, and hereby tenders the Subscription Price, which, upon
acceptance by the Corporation, will constitute a binding agreement of the
Subscriber with the Corporation to purchase from the Corporation, and, on the
part of the Corporation, to sell to the Subscriber, the Subscribed Shares, on
and subject to the terms and conditions set out in this Subscription Agreement,
for the Subscription Price which is payable as described in Article 4
hereto.

     

    In accordance with the Underwriting
Agreement, and subject to the terms and conditions contained in this
Subscription Agreement, upon acceptance by the Corporation of this subscription
(in whole or in part) the Subscriber will be obliged to purchase from the
Corporation the number of Subscribed Shares in respect of which this
subscription has been accepted, which will be in substitution of the
Underwriter's obligation to purchase such Subscribed Shares.  The
Subscriber acknowledges and agrees that no consideration is being paid hereunder
in respect of any rights issuable under the Rights Plan.

     

    
      	
              3.2

            	
              Acceptance and Rejection of
      Subscription by the
Corporation

            

    

     

    The Corporation shall forward to the
Subscriber confirmation of acceptance or rejection (in whole or in part) of this
Subscription Agreement promptly after the acceptance or rejection of this
Subscription Agreement by the Corporation.  The Subscriber
acknowledges and agrees that, notwithstanding Section 3.1 above, the Corporation
reserves the right, in its absolute discretion, to reject this subscription for
Common Shares, in whole or in part, at any time prior to the Closing Time. If
this subscription is rejected in whole, any cheques or other forms of payment
delivered to the Underwriter on account of the Subscription Price will be
promptly returned (without interest) to the Subscriber without interest or
deduction. If this subscription is accepted only in part, a cheque representing
any refund (without interest) of the Subscription Price for that portion of the
subscription for Common Shares which is not accepted will be promptly delivered
to the Subscriber without interest or deduction.

     

    
      	
              3.3

            	
              Payment

            

    

     

    The Subscriber shall deliver the
aggregate amount payable in respect of the Subscribed Shares to the Underwriter
at or before the Closing Time on the Closing Date by certified cheque or bank
draft drawn on a Canadian chartered bank or trust company in immediately
available and freely transferable Canadian funds and payable to "Haywood
Securities Inc." or by wire transfer or other arrangements acceptable to the
Underwriter.  Such funds shall be held in escrow (without interest) by
the Underwriter pending the Closing.

     

    
      	
              3.4

            	
              U.S. Securities
      Matters

            

    

     

    The Common Shares are being offered and
sold in reliance on the exemption from registration contained in Regulation D of
the U.S. Securities Act.  Following the Closing, the Corporation has
agreed to register the resale of the Common Shares under the U.S. Securities Act
pursuant to the Registration Rights Agreement.

     

    ARTICLE
4                                CLOSING

     

    
      	
              4.1

            	
              Closing

            

    

     

    Delivery and sale of the Subscribed
Shares and payment of the Subscription Price will be completed (the
"Closing") at the offices of the Corporation's
Canadian counsel, at 1:00 p.m. (Toronto time) (the "Closing
Time") on July 15, 2009 or
such other place or date or time as the Corporation and the Underwriter may
mutually agree (the "Closing
Date").  Subject
to Section 3.3, if, prior to the Closing Time, the terms and conditions
contained in this Subscription Agreement and the Underwriting Agreement have
been complied with to the satisfaction of the Underwriter, or waived by the
Underwriter, the Underwriter shall deliver to the Corporation completed
Subscription Agreements from the Subscribers (or, if the Underwriter does not
have substituted purchasers for any portion of the Offering, from the
Underwriter) and payment of the Subscription Price against delivery by the
Corporation of certificates representing the Subscribed Shares and such other
documentation as may be required pursuant to the Subscription Agreement and the
Underwriting  Agreement.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    If, prior to the Closing Time, the terms
and conditions contained in this Subscription Agreement and the Underwriting
Agreement have not been complied with to the satisfaction of the Underwriter, or
waived by it (other than delivery by the Corporation to the Subscriber of a
certificate representing the Subscribed Shares), the Underwriter, the
Corporation and the Subscriber will have no further obligations under this
Subscription Agreement.

     

    
      	
              4.2

            	
              Conditions of
      Closing

            

    

     

    The completion of the Offering is
conditional upon, among other things, the Corporation obtaining TSX Approval and
AMEX Approval prior to the Closing Date and satisfactory due diligence by the
Underwriter in respect of the business and affairs of the
Corporation.

     

    The Subscriber acknowledges and agrees
that as the sale of the Common Shares will not be qualified by a prospectus in
Canada or registered in the United States, such sale and issuance is subject to
the condition that the Subscriber return to the Corporation and/or the
Underwriter all documentation required by the Securities Laws.  The
Subscriber acknowledges and agrees that the Underwriter and/or the Corporation
may provide the Securities Regulators and tax authorities with a list setting
forth the identities of the beneficial purchasers of the Common
Shares.

     

    The Subscriber acknowledges and agrees
that the obligations of the Corporation hereunder are conditional on the
accuracy of the representations and warranties of the Subscriber contained in
this Subscription Agreement as of the date of this Subscription Agreement, and
as of the Closing Time as if made at and as of the Closing Time, and the
fulfilment of the following additional conditions as soon as possible and in any
event not later than the Closing Time:

     

    (a)           unless other arrangements acceptable to
the Underwriter have been made, payment by the Subscriber of the Subscription
Price as set out in Section 3.3;

     

    (b)           the Subscriber having properly
completed, signed and delivered this Subscription Agreement and Schedule "A"
hereto to:

     

    
      	
              Haywood Securities
      Inc.

              Suite 2000 - 400 Burrard
      Street

              Vancouver, B.C.
      V6C 3A6

              Attention: Michelle
      Jankovich

              Facsimile:
      604-697-7498

            

    

     

    
      	
              4.3

            	
              Authorization of the
      Underwriter

            

    

     

    The Subscriber irrevocably authorizes
the Underwriter, in its discretion, to act as the Subscriber's representative at
the Closing, and hereby appoints the Underwriter, with full power of
substitution, as its true and lawful attorney with full power and authority in
the Subscriber's place and stead:

     

    (a)           to receive one or more certificates
representing the Subscribed Shares, to execute in the Subscriber's name and on
its behalf all closing receipts and required documents, to complete and correct
any errors or omissions in any form or document provided by the Subscriber in
connection with the subscription for the Subscribed Shares and to exercise any
rights of termination contained in the Underwriting
Agreement;

     

    (b)           to extend such time periods and to
waive, in whole or in part, any representations, warranties, covenants or
conditions for the Subscriber's benefit contained in this Subscription Agreement
and the Underwriting Agreement or any ancillary or related document;
and

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (c)           to terminate this Subscription Agreement
if any condition precedent is not satisfied, in such manner and on such terms
and conditions as the Underwriter in its sole discretion may
determine.

     

    The Subscriber acknowledges and agrees
that the Underwriter and the Corporation may vary, amend, alter or waive, in
whole or in part, one or more of the terms to be set forth in the Underwriting
Agreement in such manner and on such terms and conditions as they may determine,
and that any such variation, amendment, alteration or waiver shall not affect in
any way the obligations of the Subscriber or such others for whom the Subscriber
is contracting hereunder.

     

    ARTICLE
5                                REPRESENTATIONS AND WARRANTIES OF THE
CORPORATION

     

    
      	
              5.1

            	
              Representations, Warranties and
      Covenants of the Corporation

            

    

     

    By execution of this Subscription
Agreement, the Corporation hereby agrees with the Subscriber that the Subscriber
shall have the benefit of the representations and warranties made by the
Corporation to the Underwriter as set forth in the Underwriting Agreement, and
acknowledges that the Subscriber is relying on such representations and
warranties in connection with the transactions contemplated
herein.  Such representations and warranties shall continue in full
force and effect for the benefit of the Subscriber in accordance with the
Underwriting Agreement.

     

    ARTICLE
6                                ACKNOWLEDGEMENTS, COVENANTS,
REPRESENTATIONS AND WARRANTIES OF THE SUBSCRIBER

     

    
      	
              6.1

            	
              Representations, Warranties and
      Covenants of the Subscriber

            

    

     

    The Subscriber, on its own behalf and,
if applicable, on behalf of each beneficial purchaser for whom it is acting,
hereby represents and warrants to, and covenants with, the Corporation and the
Underwriter as follows as at the date hereof and as at the Closing Time and
acknowledges that the Corporation and the Underwriter, and their respective
counsel, are relying on such representations and warranties in connection with
the transactions contemplated herein:

     

    (a)           The Subscriber and (if applicable) each
beneficial purchaser for whom it is acting is resident or, if not an individual,
has its head office, in the jurisdiction set out on the face page of this
Subscription Agreement.  The address set forth on the face page of
this Subscription Agreement is the residence or place of business of the
Subscriber, or the residence or place of business of any beneficial purchaser
for whom the Subscriber is acting, and such address was not obtained or used
solely for the purpose of acquiring Common Shares and the Subscriber and any
beneficial purchaser was solicited to purchase Common Shares solely in such
jurisdiction.

     

    (b)           The Subscriber undertakes and agrees
that it will not offer or sell the Common Shares in the United States unless
such shares are registered under the U.S. Securities Act and the securities laws
of all applicable states of the United States or an exemption from such
registration requirements is available, and further that it will not resell the
Common Shares except in accordance with the provisions of applicable securities
legislation, regulations, rules, policies and orders and stock exchange
rules.

     

    (c)           The Subscriber will not engage in
hedging transactions with regard to the Common Shares unless conducted in
compliance with the U.S. Securities Act.

     

    (d)           The Subscriber acknowledges that the
Corporation and its transfer agent will refuse to register any transfer of any
of the Common Shares not made in accordance with the provisions of Regulation S
of the U.S. Securities Act, pursuant to another available exemption from
registration under the U.S. Securities Act or under an effective registration
statement under the U.S. Securities Act.

     

    (e)           The Subscriber, on its own behalf and
(if applicable) on behalf of each beneficial purchaser for whom it is acting,
represents, warrants and certifies as set out in Schedule "A" hereto and further
certifies that the Subscriber and (if applicable) each such beneficial
purchaser, as the case may be, falls into one or more of the categories of
"accredited investors" listed in Schedule "A" hereto (as specified by the
Subscriber in such Schedule).

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (f)           The Subscriber has duly and properly
completed, executed and delivered to the Corporation within applicable time
periods, the certificate and form set forth in Schedule "A" hereto, and the
representations, warranties and certifications contained therein are true and
correct as at the date hereof and will be true and correct at the Closing
Time.

     

    (g)           The execution and delivery of this
Subscription Agreement, the performance and compliance with the terms hereof,
the subscription for and purchase of the Subscribed Shares and the completion of
the transactions described herein by the Subscriber will not result in any
material breach of, or be in conflict with or constitute a material default
under, or create a state of facts which, after notice or lapse of time, or both,
would constitute a material default under any term or provision of the
constating documents, by-laws or resolutions of the Subscriber or any beneficial
purchaser for whom the Subscriber is acting, the Securities Laws or any other
laws applicable to the Subscriber or any beneficial purchaser for whom the
Subscriber is acting, any agreement to which the Subscriber or any beneficial
purchaser for whom the Subscriber is acting is a party, or any judgment, decree,
order, statute, rule or regulation applicable to the Subscriber or any
beneficial purchaser for whom the Subscriber is acting.

     

    (h)           The Subscriber is subscribing for the
Subscribed Shares as principal for its own account and not for the benefit of
any other Person (within the meaning of applicable Securities Laws) and not with
a view to the resale or distribution of all or any of the Subscribed
Shares.

     

    (i)           In the case of a subscription for the
Subscribed Shares by the Subscriber acting as trustee or agent (including, for
greater certainty, a portfolio manager or comparable adviser) for a principal,
the Subscriber is duly and properly authorized to execute and deliver this
Subscription Agreement and all other necessary documentation in connection with
such subscription on behalf of such beneficial purchaser, who is subscribing as
principal for its own account, not for the benefit of any other Person and not
with a view to the resale or distribution of the Subscribed Shares, and this
Subscription Agreement has been duly authorized, executed and delivered by or on
behalf of and constitutes a legal, valid and binding agreement of such
principal, enforceable in accordance with its terms against such principal, and
the Subscriber acknowledges that the Corporation and/or the Underwriter may be
required by law to disclose the identity of such beneficial purchaser for whom
the Subscriber is acting and agrees to provide information as the Corporation
and/or the Underwriter may be required to disclose.

     

    (j)           In the case of a subscription for the
Subscribed Shares by the Subscriber acting as principal, this Subscription
Agreement has been duly and properly authorized, executed and delivered by, and
constitutes a legal, valid and binding agreement of, the
Subscriber.  This Subscription Agreement is enforceable in accordance
with its terms against the Subscriber and (if applicable) any beneficial
purchaser on whose behalf the Subscriber is acting.

     

    (k)           If the Subscriber
is:

     

    (i)           a corporation, the Subscriber is duly
incorporated and is validly subsisting under the laws of its jurisdiction of
incorporation and has all requisite legal and corporate power and authority to
execute and deliver this Subscription Agreement, to subscribe for the Subscribed
Shares as contemplated herein and to observe and perform its obligations under
the terms of this Subscription Agreement;

     

    (ii)           a partnership, syndicate or other form
of unincorporated organization, the Subscriber has the necessary legal capacity
and authority to execute and deliver this Subscription Agreement on behalf of
such organization and to observe and perform its covenants and obligations
hereunder and has obtained all necessary approvals in respect thereof;
or

     

    (iii)           an individual, the Subscriber is of the
full age of majority and is legally competent to execute this Subscription
Agreement and to observe and perform his or her covenants and obligations
hereunder.

     

    (l)           Other than the Underwriter (and any
group of investment dealers managed by the Underwriter for the purposes of
offering the Common Shares for sale), there is no person acting or purporting to
act in connection with the transactions contemplated herein who is entitled to
any brokerage or finder's fee.  If any person claims that any fee or
other compensation is payable by the Corporation or the Underwriter in
connection with this subscription for the Subscribed Shares, the Subscriber
covenants to indemnify and hold harmless the Corporation and the Underwriter
with respect thereto and with respect to all costs reasonably incurred in the
defence thereof.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (m)           The Subscriber is not, with respect to
the Corporation or any of its affiliates, a Control Person and will not become a
Control Person by virtue of the purchase of the Subscribed Shares, and does not
intend to act in concert with any other person to form a Control Person of the
Corporation.

     

    (n)           The Subscriber is not purchasing Common
Shares with knowledge of any material fact or information concerning the
Corporation which has not been generally disclosed to the
public.

     

    (o)           No person has made to the Subscriber any
written or oral representations:

     

    
      	
               
      

            	
              (i)

            	
              that any person will resell or
      repurchase any of the Common
Shares;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              that any person will refund the
      Subscription Price; or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              as to the future price or value of
      the Common Shares.

            

    

     

    (p)           This subscription for Common Shares has
not been made through or as a result of, and the distribution of Common Shares
is not being accompanied by, any form of advertisement, including, without
limitation, in printed public media, radio, television, internet or
telecommunications, including electronic display, or as part of a general
solicitation.

     

    (q)           None of the funds the Subscriber is
using to purchase the Subscribed Shares is, to the knowledge of the Subscriber,
proceeds obtained or derived, directly or directly, as a result of illegal
activities.

     

    (r)           The delivery of this subscription, the
acceptance hereof by the Corporation and the issuance of Subscribed Shares to
the Subscriber complies with all applicable laws of the Subscriber's
jurisdiction of residence and domicile and will not cause the Corporation or any
of its officers or directors to become subject to or require any disclosure,
prospectus or other reporting requirement to which the Corporation is not
currently subject and which is not otherwise contemplated in this Subscription
Agreement.

     

    The Subscriber, or each beneficial
purchaser as to which the Subscriber exercises sole investment discretion for
whom it is purchasing (if any), is acquiring the Common Shares to be held for
investment only and not with a view to resale, distribution or other disposition
of the Common Shares or any portion thereof and without any present intention of
selling, offering to sell or otherwise disposing of or distributing the Common
Shares or any portion thereof in any transaction other than a transaction
complying with the registration requirements of the U.S. Securities Act and
applicable state securities or "Blue Sky" laws, or pursuant to an exemption
therefrom.

     

    The Subscriber is aware that the Common
Shares have not been and will not be registered under the U.S. Securities Act or
any state securities laws, and the sale contemplated hereby is being made in
reliance on a private placement exemption to Accredited
Investors.

     

    (s)           The Subscriber represents, warrants and
covenants to the Corporation that the Subscriber (or if the Subscriber is acting
on behalf of a principal, then for the principal for whom the Subscriber is
acting) satisfies one or more of the categories of Accredited Investor and has
completed the Certificate of Accredited Investor attached hereto as Schedule
"A".

     

    
      	
              6.2

            	
              Acknowledgments and Agreements of
      the Subscriber

            

    

     

    The Subscriber, on its own behalf and,
if applicable, on behalf of each beneficial purchaser for whom it is acting,
acknowledges and agrees as follows:

     

    (a)           The Subscriber has received a copy of
the Term Sheet setting out the principal terms of the
Offering.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (b)           The Subscriber acknowledges that the
Corporation contemplates completing the Offering and that the aggregate gross
proceeds of the Offering will be Cdn$10,000,000, and may be increased to
Cdn$13,000,000 upon written mutual consent of the Corporation and the
Underwriter.

     

    (c)           No securities commission, agency,
governmental authority, regulatory body, stock exchange or other regulatory body
has reviewed or passed on the merits of the Subscribed
Shares.

     

    (d)           The Subscribed Shares shall be subject
to statutory resale restrictions under the United States and the Securities Laws
of the province or territory in which the Subscriber resides and under other
applicable securities laws, and the Subscriber covenants that it will not resell
the Subscribed Shares except in compliance with such laws, and the Subscriber
acknowledges that it is solely responsible (and neither the Corporation nor the
Underwriter is in any way responsible) for such compliance.

     

    (e)           The Subscriber's ability to transfer the
Subscribed Shares is limited by, among other things, applicable Securities
Laws.

     

    (f)           In addition, the Subscriber acknowledges
that, while the Corporation has agreed to file the Registration Statement and
use its commercially reasonable efforts to cause it to be declared effective by
the SEC, there is no assurance that the Corporation will be able to cause the
Registration Statement to be declared effective by the SEC, and if the
Registration Statement is not declared effective by the SEC, the Common Shares
may not be resold by the Subscriber, except pursuant to an exemption contained
under the applicable securities laws, which may not be available, and if the
Registration Statement is not declared effective, the Common Shares remain
"restricted" securities under the U.S. Securities Act and may only be sold
pursuant to an effective registration statement with respect to such securities,
pursuant to Regulation S or another exemption from the registration requirements
of the U.S. Securities Act.

     

    (g)           The Subscriber understands that if it
decides to offer, sell, pledge or otherwise transfer the Subscribed Shares, 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 and in compliance with applicable local laws and regulations; (C)
in accordance with an exemption from registration under the U.S. Securities Act
provided by Rule 144, if available, and in compliance with applicable local laws
and regulations if an opinion of counsel, of recognized standing reasonably
satisfactory to the Corporation, has been provided to the Corporation to that
effect; or (D) in a transaction that does not otherwise require registration
under the U.S. Securities Act or any applicable state securities laws if an
opinion of counsel, of recognized standing reasonably satisfactory to the
Corporation, has been provided to the Corporation to that
effect.

     

    (h)           The certificates representing the
Subscribed Shares will bear, as of the Closing Date, the following legends as
required by National Instrument 45-102 – Resale of
Securities and with the
necessary information inserted and the Subscriber agrees to comply with the
terms of such legends:

     

    "UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE
<INSERT DATE THAT IS FOUR (4) MONTHS AND ONE (1) DAY AFTER CLOSING
DATE>"

     

    In addition, the certificates
representing the Subscribed Shares will also bear a legend substantially in the
following form as required by the TSX, and the Subscriber agrees to comply with
the terms of such legend:

     

    "THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE LISTED ON THE TORONTO STOCK EXCHANGE ("TSX"); HOWEVER, THE SAID
SECURITIES CANNOT BE TRADED THROUGH THE FACILITIES OF THE TSX SINCE THEY ARE NOT
FREELY TRANSFERABLE, AND CONSEQUENTLY ANY CERTIFICATE REPRESENTING SUCH
SECURITIES IS NOT 'GOOD DELIVERY' IN SETTLEMENT OF TRANSACTIONS ON THE
TSX."

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    In addition, the certificates
representing the Subscribed Shares will also bear a legend substantially in the
following form as required by the Rights Plan:

     

    "UNTIL THE SEPARATION TIME (AS DEFINED
IN THE RIGHTS AGREEMENT REFERRED TO BELOW), THIS CERTIFICATE ALSO EVIDENCES AND
ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS AS SET FORTH IN A SHAREHOLDER
RIGHTS PLAN AGREEMENT, DATED AS OF THE 17TH DAY OF JANUARY, 2007 (THE "RIGHTS AGREEMENT"), BETWEEN THE CORPORATION AND CIBC
MELLON TRUST COMPANY, AS RIGHTS AGENT, THE TERMS OF WHICH ARE HEREBY
INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH MAY BE INSPECTED DURING
NORMAL BUSINESS HOURS AT THE PRINCIPAL EXECUTIVE OFFICES OF THE
CORPORATION.  UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS
AGREEMENT, SUCH RIGHTS MAY BE TERMINATED, MAY EXPIRE, MAY BECOME VOID (IF, IN
CERTAIN CASES, THEY ARE "BENEFICIALLY OWNED" BY AN "ACQUIRING PERSON", AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT, WHETHER CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR ANY
SUBSEQUENT HOLDER) OR MAY BE EVIDENCED BY SEPARATE CERTIFICATES AND MAY NO
LONGER BE EVIDENCED BY THIS CERTIFICATE.  THE CORPORATION WILL MAIL OR
ARRANGE FOR THE MAILING OF A COPY OF THE RIGHTS AGREEMENT TO THE HOLDER OF THIS
CERTIFICATE WITHOUT CHARGE AS SOON AS IS PRACTICABLE AFTER THE RECEIPT OF A
WRITTEN REQUEST THEREFORE".

     

    (i)           The Subscriber understands that all
certificates representing the Subscribed Shares issued as part of the Offering,
as well as all certificates issued in exchange for or in substitution of the
foregoing securities, until such time as is no longer required under applicable
requirements of the U.S. Securities Act or applicable state securities laws will
bear a legend to the following effect:

     

    THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR APPLICABLE STATE SECURITIES
LAWS.  THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN
COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN
COMPLIANCE WITH APPLICABLE CANADIAN LAWS AND REGULATIONS, (C) (1) IN COMPLIANCE
WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES
ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS, OR (2) IN ANOTHER TRANSACTION THAT DOES NOT
REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE LAWS,
AND, IN THE CASE OF C(1) OR C(2) ABOVE, THE HOLDER HAS FURNISHED TO THE COMPANY
AN OPINION TO SUCH EFFECT FROM LEGAL COUNSEL OF RECOGNIZED STANDING IN FORM AND
SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY PRIOR TO SUCH
TRANSFER.

     

    DELIVERY OF THIS CERTIFICATE MAY NOT
CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN
CANADA."

     

    provided, that, if any of the Subscribed
Shares are being sold by the Subscriber pursuant to Rule 144 of the U.S.
Securities Act, the legend may be removed by delivery of an opinion of counsel
of recognized standing in form and substance reasonably satisfactory to the
Corporation and the transfer agent of 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. The Subscriber understands and
acknowledges that the Corporation may instruct the registrar and transfer agent
of the Corporation not to record a transfer without first being notified by the
Corporation that it is satisfied that such transfer is exempt from or not
subject to registration under the U.S. Securities Act.

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (j)           The Subscriber consents to the
Corporation making a notation on its records or giving instructions to the
transfer agent of the Corporation in order to implement the restrictions on
transfers set forth and described herein. The Subscriber understands and
acknowledges that the Corporation may instruct the registrar and transfer agent
of the Corporation not to record a transfer without first being notified by the
Corporation that it is satisfied that such transfer is exempt from or not
subject to registration under the U.S. Securities Act.

     

    (k)           The Underwriter and/or its counsel,
directors, officers, employees, agents and representatives assume no
responsibility or liability of any nature whatsoever for the accuracy or
adequacy of the Public Record or any publicly available information concerning
the Corporation or as to whether all information concerning the Corporation that
is required to be disclosed or filed by the Corporation under the Securities
Laws has been so disclosed or filed.

     

    (l)           The Subscriber and each beneficial
purchaser for whom it is acting shall execute and file, together with the
prescribed fees, all documentation required by the applicable Securities Laws or
by any legislation or order in force in its jurisdiction of residence or to
which it may be subject, within the time limits prescribed to permit the
subscription for, and issuance of, the Subscribed Shares and thereafter for any
subsequent disposition thereof and agrees that it will furnish to the
Corporation such certificates, legal opinions and other documentation as may be
required by the Corporation.

     

    (m)           If required by applicable Securities
Laws or by the Corporation, the Subscriber and each beneficial purchaser for
whom it is acting will execute, deliver and file or assist the Corporation in
filing such reports, undertakings and other documents with respect to the issue
of the Subscribed Shares as may be required by any securities commission, stock
exchange or other regulatory authority.

     

    (n)           The Subscriber, and each beneficial
purchaser for whom it is acting, have been advised to consult their own legal
advisors with respect to trading in the Subscribed Shares and with respect to
the resale restrictions imposed by the Securities Laws of the United States or
any state in which the Subscriber resides and other applicable securities laws,
and acknowledges that no representation has been made respecting the applicable
hold periods imposed by the Securities Laws or other resale restrictions
applicable to such securities which restrict the ability of the Subscriber (or
others for whom it is acting) to resell such securities that the Subscriber (or
others for whom it is acting) is solely responsible to find out what these
restrictions are and the Subscriber is solely responsible (and neither the
Corporation nor the Underwriter is in any way responsible) for compliance with
applicable resale restrictions and the Subscriber is aware that it (or the
beneficial purchaser for whom it is acting) may not be able to resell such
securities except in accordance with limited exemptions under the Securities
Laws and other applicable securities laws.

     

    (o)           The Subscriber has not received or been
provided with a prospectus, offering memorandum (within the meaning of the
Securities Laws) or any sales or advertising literature in connection with the
Offering and the Subscriber's decision to subscribe for Common Shares was not
based upon, and the Subscriber has not relied upon, any verbal or written
representations as to facts made by or on behalf of the Corporation or the
Underwriter. The Subscriber's decision to subscribe for Common Shares was based
solely upon the Term Sheet attached hereto as Schedule "B" and information about
the Corporation which is publicly available (any such information having been
obtained by the Subscriber without independent investigation or verification by
the Underwriter).

     

    (p)           The Corporation and the Underwriter, and
their respective counsel, are relying on the representations, warranties and
covenants contained herein and in the applicable Schedules attached hereto to
determine the Subscriber's eligibility to subscribe for Common Shares under
applicable Securities Laws and the Subscriber agrees to indemnify the
Corporation, the Underwriter and each of their respective directors and officers
against all losses (other than loss of profits), claims, costs, expenses,
damages or liabilities which any of them may suffer or incur as a result of or
arising from reliance thereon.  The Subscriber undertakes to
immediately notify the Underwriter of any change in any statement or other
information relating to the Subscriber set forth in such applicable Schedules
that takes place prior to the Closing Time.

     

    (q)           The Corporation and the Underwriter are
relying on an exemption from the requirement to provide the Subscriber with a
prospectus under the Securities Laws and, as a consequence of acquiring Common
Shares pursuant to such exemption, certain protections, rights and remedies
provided by the Securities Laws, including statutory rights of rescission and/or
damages, will not be available to the Subscriber.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    (r)           The Common Shares are being offered and
sold in reliance on the exemption from registration contained in Regulation D of
the U.S. Securities Act.  Following the Closing, the Corporation has
agreed to register the resale of the Common Shares under the U.S. Securities Act
pursuant to the Registration Rights Agreement.

     

    (s)           The Subscriber, and each beneficial
purchaser for whom it is acting, is responsible for obtaining such independent
legal and tax advice as it considers appropriate in connection with the
execution, delivery and performance of this Subscription Agreement and the
transactions contemplated under this Subscription Agreement, including without
limitation for the proposes of giving representations, warranties and covenants
under this Subscription Agreement.

     

    (t)           There is no government or other
insurance covering the Common Shares.

     

    (u)           The Subscriber acknowledges that the
Underwriter's counsel and the Corporation's counsel are acting as counsel to the
Underwriter and the Corporation, respectively, and not as counsel to the
Subscriber.

     

    (v)           The Subscriber acknowledges that all
costs and expenses incurred by the Subscriber (including any fees and
disbursements of any special counsel or other advisors retained by the
Subscriber) relating to the purchase of the Subscribed Shares shall be borne by
the Subscriber.

     

    (w)           The Subscriber and each beneficial
purchaser for whom it is acting acknowledge that the Common Shares are
speculative in nature and that there are risks associated with the purchase of
Common Shares and the Subscriber and each beneficial purchaser for whom it is
acting has such knowledge, sophistication and experience in business and
financial matters as to be capable of evaluating the merits and risks of its
investment in the Subscribed Shares, fully understands the speculative nature of
the Subscribed Shares and is able to bear the economic risk of loss of its
entire investment.

     

    (x)           The Subscriber has evaluated the risks
involved in investing in the Common Shares and has determined that the Common
Shares are a suitable investment for the Subscriber.  Specifically,
the aggregate amount of the investments the Subscriber has in, and the
Subscriber's commitments to, all similar investments that are illiquid is
reasonable in relation to the Subscriber's net worth, both before and after the
subscription for and purchase of the Common Shares pursuant to this
Agreement.

     

    (y)           The Subscriber represents and warrants
further that the Subscriber has no contract, understanding, agreement or
arrangement with any Person to sell or transfer or pledge to such Person or
anyone else any of the Common Shares for which the Subscriber hereby subscribes
(in whole or in part); and the Subscriber represents and warrants that the
Subscriber has no plans to enter into any such contract, undertaking, agreement
or arrangement.

     

    (z)           The Subscriber acknowledges that it has
been furnished with such documents, materials and information as the Subscriber
deems necessary or appropriate for evaluating an investment in the
Company.  The Subscriber further acknowledges that it has had the
opportunity to ask questions of, and receive answers from, the directors and
officers of the Company and the Underwriter, concerning the terms and conditions
of the Common Shares and the Offering.

     

    
      	
              6.3

            	
              Reliance on Representations,
      Warranties, Covenants and
  Acknowledgements

            

    

     

    The Subscriber acknowledges and agrees
that the representations, warranties, covenants and acknowledgements made by the
Subscriber in this Subscription Agreement are made with the intention that they
may be relied upon by the Corporation and the Underwriter in determining the
Subscriber's eligibility (and, if applicable, the eligibility of others for whom
the Subscriber is acting) to purchase Common Shares under the Securities
Laws.  The Subscriber further agrees that by accepting Common Shares,
the Subscriber shall be representing and warranting that such representations,
warranties, acknowledgements and covenants are true as at the Closing Time with
the same force and effect as if they had been made by the Subscriber at the
Closing Time and that they shall survive the purchase by the Subscriber of
Common Shares and shall continue in full force and effect notwithstanding any
subsequent disposition by the Subscriber of any of such Common
Shares.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    ARTICLE
7                                SURVIVAL OF REPRESENTATIONS, WARRANTIES
AND COVENANTS

     

    
      	
              7.1

            	
              Survival of Representations,
      Warranties and Covenants of the
  Corporation

            

    

     

    The representations, warranties and
covenants of the Corporation contained in this Subscription Agreement shall
survive the Closing and, notwithstanding such Closing or any investigation made
by or on behalf of the Subscriber with respect thereto, shall continue in full
force and effect for the benefit of the Subscriber and the
Underwriter.

     

    
      	
              7.2

            	
              Survival of Representations,
      Warranties and Covenants of the
  Subscriber

            

    

     

    The representations, warranties and
covenants of the Subscriber contained in this Subscription Agreement shall
survive the Closing and, notwithstanding such Closing or any investigation made
by or on behalf of the Corporation or the Underwriter with respect thereto,
shall continue in full force and effect for the benefit of the Corporation and
the Underwriter.

     

    ARTICLE
8                                COMMISSION

     

    
      	
              8.1

            	
              Commission to Underwriter

            

    

     

    The Subscriber understands that in
connection with the Offering the Underwriter will receive from the Corporation,
on Closing, a cash commission equal to 6.5% of the gross proceeds from the
Offering.  In addition, the Underwriter will receive a number of
compensation options ("Compensation
Options") that is equal to
6% of the number of Offered Securities sold pursuant to the Offering, each
Compensation Option being exercisable at a price of Cdn$0.45 for a period of 24
months from the Closing Date to acquire one Common Share.  No other
fee or commission is payable by the Corporation in connection with the
completion of the Offering; however, the Corporation will pay certain fees and
expenses of the Underwriter in connection with the Offering, as set out in the
Underwriting Agreement.

     

    ARTICLE
9                                COLLECTION OF PERSONAL
INFORMATION

     

    
      	
              9.1

            	
              Collection of Personal
      Information

            

    

     

    By executing this Subscription
Agreement, the Subscriber hereby consents to the collection, use and disclosure
of the personal information provided herein and other personal information
provided by the Subscriber or collected by the Corporation or its agents as
reasonably necessary in connection with the Subscriber's subscription for the
Subscribed Shares (collectively, "personal
information") as follows:
(a) the Corporation may use personal information and disclose personal
information to intermediaries such as the Corporation's legal counsel and
withholding and/or transfer agents for the purposes of determining the
Subscriber's eligibility to invest in the Subscribed Shares and for managing and
administering the Subscriber's investment in the Subscribed Shares; (b) if the
Subscriber purchased securities through a registered dealer, the Corporation may
disclose and collect such personal information relating to the Subscriber's
holding of the Subscribed Shares to and from the dealer; (c) the Corporation and
its agents may use the Subscriber's social security number for income reporting
purposes in accordance with applicable law; (d) the Corporation, its agents and
advisors, may each collect, use and disclose personal information for the
purposes of meeting legal, regulatory, self-regulatory, security and audit
requirements (including any applicable tax, securities, money laundering or
anti-terrorism legislation, rules or regulations) and as otherwise permitted or
required by law, which disclosures may include disclosures to tax, securities or
other regulatory or self-regulatory authorities in Canada, the United States
and/or in foreign jurisdictions, if applicable, in connection with the
regulatory oversight mandate of such authorities; (e) the Corporation and its
agents and advisors may use personal information and disclose personal
information to parties connected with the proposed or actual transfer, sale,
assignment, merger or amalgamation of the Corporation or its business or assets
or similar transactions, for the purpose of permitting such parties to evaluate
and/or proceed with and complete such transaction.  Purchasers,
assignees and successors of the Corporation or its business or assets may
collect, use and disclose personal information as described in this Subscription
Agreement.  The Subscriber acknowledges that the Corporation's agents
or intermediaries may be located outside of United States, and personal
information may be transferred and/or processed outside of the United States for
the purposes described above, and that measures the Corporation may use to
protect personal information while handled by agents, intermediaries or other
third parties on its behalf, and personal information otherwise disclosed or
transferred outside of the United States for the purposes described above, are
subject to legal requirements in foreign countries applicable to Corporation or
such third parties; for example lawful requirements to disclose personal
information to government authorities in those countries.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    ARTICLE
10                                MISCELLANEOUS

     

    
      	
              10.1

            	
              Further
      Assurances

            

    

     

    Each of the parties hereto upon the
request of each of the other parties hereto, whether before or after the Closing
Time, shall do, execute, acknowledge and deliver or cause to be done, executed,
acknowledged and delivered all such further acts, deeds, documents, assignments,
transfers, conveyances, powers of attorney and assurances as may reasonably be
necessary or desirable to complete the transactions contemplated
herein.

     

    
      	
              10.2

            	
              Notices

            

    

     

    (a)           Any notice, direction or other
instrument required or permitted to be given to any party hereto shall be in
writing and shall be sufficiently given if delivered personally, or transmitted
by facsimile tested prior to transmission to such party, as
follows:

     

    (i)           in the case of the Corporation,
to:

     

    
      
        
          
            	
                     
      

                  	
                          
                      Apollo Gold
      Corporation

                    

                  

          

          
            	
                     
      

                  	
                          
                      5655 S. Yosemite
      Street,

                    

                  

          

          
            	
                     
      

                  	
                          
                      Suite
      200

                    

                  

          

          
            	
                     
      

                  	
                          
                      Greenwood Village, CO,
      USA

                    

                  

          

          
            	
                     
      

                  	
                          
                      80111

                    

                  
	 	 

          

          
            	
                     
      

                  	
                    Attention:

                  	
                    R. David
      Russell

                  

          

          
            	
                     
      

                  	
                    Fax:

                  	
                    720-482-0957

                  

          

          
             

            with a copy to:

            
               

              
                
                  
                    
                      	
                               
      

                            	
                                    
                                      
                                  Fogler, Rubinoff
      LLP

                                

                              

                            

                    

                    
                      	
                               
      

                            	
                                    
                                      
                                  95 Wellington Street
      West

                                

                              

                            

                    

                    
                      	
                               
      

                            	
                                    
                                      
                                  Suite
      1200

                                

                              

                            

                    

                    
                      	
                               
      

                            	
                                    
                                      
                                  Toronto-Dominion
      Centre

                                

                              

                            

                    

                    
                      	
                               
      

                            	
                                    
                                      
                                  Toronto,
      Ontario

                                

                              

                            
	 	      
                              M5J
    2Z9

                            

                    

                    
                      	
                               
      

                            	
                              Attention:

                            	
                              G. Michael
      Hobart

                            

                    

                    
                      	
                               
      

                            	
                              Fax:

                            	
                              416-941-8852

                            

                    

                    
                       

                      
                        
                           

                        

                        
                          16

                          
                            

                          

                        

                        
                           

                        

                      

                       

                    

                  

                

              

            

          

        

      

    

    (ii)           in the case of the Subscriber, at the
address specified on the face page hereof, with a copy to the Underwriter
at:

     

    
      
        	
                 
      

              	
                Haywood Securities
      Inc

              

      

      
        	
                 
      

              	
                Brookfield Place, 181 Bay
      Street

              

      

      
        	
                 
      

              	
                Suite 2910, Box
      808

              

      

      
        	
                 
      

              	
                Toronto,
      Ontario

              

      

      
        	
                 
      

              	
                M5J
  2T3

              

      

      
        	
                 
      

              	
                Attention:

              	
                Greg
    McKenzie

              

      

      
        	
                 
      

              	
                Fax:

              	
                (416)
    507-2350

              

      

       

    

    (b)           Any such notice, direction or other
instrument, if delivered personally, shall be deemed to have been given and
received on the day on which it was delivered, provided that if such day is not
a Business Day then the notice, direction or other instrument shall be deemed to
have been given and received on the first Business Day next following such day
and if transmitted by fax, shall be deemed to have been given and received on
the day of its transmission, provided that if such day is not a Business Day or
if it is transmitted or received after the end of normal business hours then the
notice, direction or other instrument shall be deemed to have been given and
received on the first Business Day next following the day of such
transmission.

     

    (c)           Any party hereto may change its address
for service from time to time by notice given to each of the other parties
hereto in accordance with the foregoing provisions.

     

    
      	
              10.3

            	
              Time of the
      Essence

            

    

     

    Time shall be of the essence of this
Subscription Agreement and every part hereof.

     

    
      	
              10.4

            	
              Costs and
      Expenses

            

    

     

    All costs and expenses (including,
without limitation, the fees and disbursements of legal counsel) incurred in
connection with this Subscription Agreement and the transactions herein
contemplated shall be paid and borne by the party incurring such costs and
expenses.

     

    
      	
              10.5

            	
              Applicable
    Law

            

    

     

    This Subscription Agreement shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the internal laws of the Province of Ontario and the laws of
Canada applicable therein, without reference to any conflicts of law rules that
would impose a law of another jurisdiction. Any and all disputes arising under
this Subscription Agreement, 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 hereby irrevocably
attorns to the jurisdiction of the courts of such province.

     

    
      	
              10.6

            	
              Entire
      Agreement

            

    

     

    This Subscription Agreement, including
the Schedules hereto, constitutes the entire agreement between the parties with
respect to the transactions contemplated herein and cancels and supersedes any
prior understandings, agreements, negotiations and discussions between the
parties.  There are no representations, warranties, terms, conditions,
undertakings or collateral agreements or understandings, express or implied,
between the parties hereto other than those expressly set forth in this
Subscription Agreement or in any such agreement, certificate, affidavit,
statutory declaration or other document as aforesaid. This Subscription
Agreement may not be amended or modified in any respect except by written
instrument executed by each of the parties hereto.

     

    
      	
              10.7

            	
              Counterparts

            

    

     

    This Subscription Agreement may be
executed in two or more counterparts, each of which shall be deemed to be an
original and all of which together shall constitute one and the same
Subscription Agreement. Counterparts may be delivered either in original or
faxed form and the parties adopt any signature received by a receiving fax
machine as original signatures of the parties.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    
      	
              10.8

            	
              Assignment

            

    

     

    This Subscription Agreement may not be
assigned by either party except with the prior written consent of the other
parties hereto.

     

    
      	
              10.9

            	
              Enurement

            

    

     

    This Subscription Agreement shall enure
to the benefit of and be binding upon the parties hereto and their respective
heirs, executors, successors (including any successor by reason of the
amalgamation or merger of any party), administrators and permitted
assigns.

     

    
      
         

      

      
        18Unassociated Document

     

    EXHIBIT 4.4

     

    

    APOLLO GOLD
CORPORATION

    SUBSCRIPTION AGREEMENT FOR COMMON
SHARES

    
       

      
        
          	
                  TO:

                	
                  APOLLO GOLD
      CORPORATION

                

        

        
          	
                  AND TO:

                	
                  HAYWOOD SECURITIES INC. (THE
      "UNDERWRITER")

                

        

      

    

     

    The undersigned (the "Subscriber") hereby irrevocably subscribes for and
offers to purchase from Apollo Gold Corporation (the "Corporation") that number of Common Shares (as
hereinafter defined) specified below at a price of $0.45 per Common
Share.  The Subscriber agrees to be bound by the terms and conditions
set forth in the attached "Terms and Conditions of Subscription for Common
Shares" and acknowledges that the Corporation and the Underwriter, and their
respective counsel, are relying upon the representations, warranties and
covenants of the Subscriber set forth therein and in the schedules thereto. The
purchase and sale of the Common Shares hereunder is being made concurrently with
offerings (collectively with the sales hereunder, "Offering") of Common Shares and Flow-Through
Shares (as hereinafter defined) (collectively, the "Offered
Securities") that the
Underwriter has agreed to purchase or to arrange for substitute purchasers
consisting of: (i) 5,555,556 Common Shares; and (ii) 13,888,889 Flow-Through
Shares at a price of $0.54 per Flow-Through Share.  The Offering may
be amended by written mutual consent of the Corporation and the Underwriter such
that the aggregate gross proceeds from the sale of the Common Shares and
Flow-Through Shares, on the same terms and conditions as the Offering (including
the sale price thereof), are increased to up to $13,000,000.

     

    SUBSCRIPTION AND SUBSCRIBER
INFORMATION

     

    Please print ALL information (other than signatures), as
applicable, in the space provided below

      
        	          
      	
                 (Name of
      Subscriber):

              	 	
                 Number of Common
      Shares:

              	 	
                 x
    $0.45

              

      

      
        	 	 	 	 
	 	 	 	 
	 	 	 	 

      

      
        	 	
                 Account Reference (if
      applicable):

              	 	 	
                =

              	 
	          
      	 	 	 Aggregate
      Subscription Price:  	 	 

      

      
        	          
      	 By:	 	 	
                (the "Subscription
      Price")

              	 
	 	 	Authorized
      Signature	 

      

      
        	 	 (Official
      Capacity or Title – if the Subscriber is not an
      individual)	      
                If the Subscriber is signing as
      agent for a principal (beneficial purchaser) and is not purchasing as
      trustee or agent for accounts fully managed by it, complete the
      following:

              
	 	 (Name of individual whose
      signature appears above if different than the name of the subscriber
      printed above.)	 (Name of
      Principal)	 
	 	 	 	 
	 	      
                 (Subscriber's Address,
      including Municipality and
      Province)

              	 (Principal's
      Address)	 
	 	 	 	 
	 	 	 	 
	 	      
                 S.I.N. or Taxation Account
      of Subscriber

              	 	 
	 	 	 	 
	 	 (Telephone
      Number)                                             	(Email
      Address)	 	 
	 	 Account Registration
      Information:	 	 Delivery Instructions as set
      forth below:	 
	 	 	 	 
	 	 (Name)	 	 (Name)	 
	 	 	 	 	 
	 	 	 (Account Reference, if
      applicable)	 
	 	 (Address, including Zip
      Code)	 	      
                 (Address, including Postal
      Code)

              	 
	 	 	 	 
	 	 (Account Reference, if
      applicable)	 (Contact
      Name)                                                  	(Telephone
  Number)
	 	 Number and kind of securities of
      the Corporation held, directly or indirectly, if
    any:	 	 1.  State whether
      Subscriber is an Insider (as such term is hereinafter defined) of the
      Corporation:
	 	 	 	 Yes                       ̈                     No                       ̈

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               

              INSTRUCTIONS
      FOR SUBSCRIBERS

               

              The Subscriber
      must:

               

              (1)           Read this Subscription
      Agreement;

               

              (2)           Complete and execute the face page
      of this Subscription Agreement;

               

              (3)           Read and complete the Certificate
      set out in Schedule "A", Schedule "B" or Schedule "C", as
      applicable;

               

              (4)           Read and complete the Registration
      Rights Agreement set out in Schedule "E";

               

              (5)           Make payment for the Subscribed
      Shares as required by the Terms and Conditions; and

               

              (5)           Deliver the signed documents as
      required by the Terms and Conditions.

               

            

    

     

    

     

     

    * * * * *

     

     

    ACCEPTANCE:  The Corporation hereby (i)
accepts the above subscription subject to the terms and conditions contained in
this Subscription Agreement; (ii) represents and warrants to the Subscriber that
the representations and warranties made by the Corporation to the Underwriter in
the Underwriting Agreement (as defined herein), which are incorporated by
reference in this Subscription Agreement, are true and correct as of the date of
the Underwriting Agreement (except as waived by the Underwriter); and (iii)
agrees that the Subscriber is entitled to rely, subject to the limitations and
other terms of the Underwriting Agreement, on the representations and warranties
made by the Corporation to the Underwriter (except as waived by the Underwriter)
and on the covenants made by the Corporation (except as waived or modified by
the Underwriter) in the Underwriting Agreement, each of which are incorporated
by reference in this Subscription Agreement.

     

    
      
        	
                APOLLO GOLD CORPORATION

              	 
      	 
	 	 	 
	Per:	 
    	
                Date:

              	  
      

      

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

     

    TERMS AND CONDITIONS OF SUBSCRIPTION
FOR

    COMMON SHARES

     

    ARTICLE
1                                INTERPRETATION

     

    
      	
              1.1

            	
              Definitions

            

    

     

    Whenever used in this Subscription
Agreement, unless there is something in the subject matter or context
inconsistent therewith, the following words and phrases shall have the
respective meanings ascribed to them as follows:

     

    "affiliate" shall have the meaning ascribed to
such term in the Securities
Act
(Ontario).

     

    "Business
Day" means a day other than
a Saturday, Sunday or any other day on which the principal chartered banks
located in Toronto are not open for business.

     

    "Closing" shall have the meaning ascribed to
such term in Section 4.1.

     

    "Closing
Date" shall have the
meaning ascribed to such term in Section 4.1.

     

    "Closing
Time" shall have the
meaning ascribed to such term in Section 4.1.

     

    "Common
Shares" means common shares
in the capital of the Corporation.

     

    "Compensation
Options" has the meaning
ascribed in Section 8.1.

     

    "Control
Person" means a person,
company or combination of persons or companies described in clause (c) of the
definition of "distribution" in subsection 1(1) of the Securities
Act
(Ontario).

     

    "Corporation" means Apollo Gold Corporation and
includes any successor corporation to or of the Corporation.

     

    "distribution" shall have the meaning ascribed to
such term in the Securities
Act
(Ontario).

     

    "Edgar" means the SEC's Electronic Data,
Gathering, Analysis and Retrieval System, or any successor system
thereto.

     

    "Flow-Through
Shares" means Common Shares
in the capital of the Corporation being issued which qualify as "flow-through
shares" as defined in subsection 66(15) of the Tax Act.

     

    "Insider" shall have the meaning ascribed to
such term in the Securities
Act
(Ontario).

     

    "NYSE AMEX" means NYSE Amex
LLC.

     

    "NYSE AMEX
Approval" means the
approval of the listing by the NYSE AMEX of the Flow-Through Shares and Common
Shares sold in the Offering and issuable upon exercise of the Compensation
Options.

     

    "Offered
Securities" shall have the
meaning ascribed to such term on the face page of this Subscription
Agreement.

     

    "Offering" shall have the meaning ascribed to
such term on the face page of this Subscription Agreement.

     

    "Person" means any individual (whether acting
as an executor, trustee, administrator, legal representative or otherwise),
corporation, firm, partnership, sole proprietorship, syndicate, joint venture,
trustee, trust, unincorporated organization or association, and pronouns have a
similar extended meaning.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    "Public
Record" means, without
limitation, the prospectuses, annual information forms, annual and quarterly
reports, offering memoranda, material change reports, press releases and any
other documents or reports filed by the Corporation with Securities Regulators
during the 24 months preceding the date hereof and which are available on SEDAR
or Edgar.

     

    "Registration Rights
Agreement" means the Registration Rights Agreement
attached hereto as Schedule "E".

     

    "Registration
Statement" means the registration statement that
the Corporation agrees to file with the SEC pursuant to the Registration Rights
Agreement to register the Common Shares sold in the Offering for resale pursuant
to the terms of the Registration Rights Agreement.

     

    "Rights
Agreement" means the
shareholders rights plan agreement dated as of the 17th day of January, 2007  between
the Corporation and CIBC Mellon Trust Company, as rights
agent.

     

    "SEC" means the United States Securities and
Exchange Commission.

     

    "Securities
Laws" means, in respect of
the Offering, the securities laws, regulations and exchange rules having
application thereto and the rules, policies, notices and orders issued by the
Securities Regulators having application thereto, the securities laws of the
United States and the states thereof, and the respective regulations and rules
made and forms prescribed thereunder together with all applicable published
policy statements and blanket orders and rulings of the applicable securities
commissions in Canada, the SEC and all other applicable Securities Regulators
including the rules of the TSX and AMEX.

     

    "Securities
Regulators" means the securities commissions or
other securities regulatory authorities of the United States and all the Selling
Jurisdictions or the relevant Selling Jurisdiction as the context
requires.

     

    "SEDAR" means the computer system for the
transmission, receipt, acceptance, review and dissemination of documents filed
in electronic format known as the System for Electronic Document Analysis and
Retrieval, which is available online at www.sedar.com

     

    "Selling
Jurisdictions" means each
of the provinces of Canada and/or in other jurisdictions agreed to by the
Corporation and the Underwriter in which the Subscribers are
resident.

     

    "Subscriber" means the subscriber for Common Shares
as set out on the face page of this Subscription Agreement or, in the case of a
subscription for a beneficial owner, the beneficial owner.

     

    "Subscribed
Shares" means the number of
Common Shares set out on the face page of this Subscription
Agreement.

     

    "Subscription
Agreement" means this
subscription agreement (including any schedules hereto) and any instrument
amending this Subscription Agreement; "hereof", "hereto", "hereunder", "herein" and similar expressions mean and refer
to this Subscription Agreement and not to a particular Article or Section; and
the expression "Article" or "Section" followed by a number means and refers
to the specified Article or Section of this Subscription
Agreement.

     

    "Subscription
Price" shall have the
meaning ascribed to such term on the face page of this Subscription
Agreement.

     

    "Tax Act" means the Income Tax
Act (Canada), as amended,
re-enacted or replaced from time to time.

     

    "Term
Sheet" means the term sheet
delivered to potential purchasers of Common Shares, a copy of which is attached
hereto as Schedule "D".

     

    "TSX" means the Toronto Stock
Exchange.

     

    "TSX
Approval" means the
conditional approval of the Offering by the TSX.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    "Underwriter" means Haywood Securities
Inc.

     

    "Underwriting
Agreement" means the
underwriting agreement to be entered into between the Underwriter and the
Corporation in respect of the Offering.

     

    "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.
Person" shall have the
meaning ascribed to such term in Rule 902(k) of Regulation S under the
U.S.
Securities Act.

     

    "U.S. Securities
Act" means the United States
Securities Act of 1933, as
amended.

     

    
      	
              1.2

            	
              Gender and
      Number

            

    

     

    Words importing the singular number only
shall include the plural and vice versa, words importing the masculine gender
shall include the feminine gender and words importing persons shall include
firms and corporations and vice versa.

     

    
      	
              1.3

            	
              Currency

            

    

     

    Unless otherwise specified, all dollar
amounts in this Subscription Agreement, including the symbol "$", are expressed
in Canadian dollars.

     

    
      	
              1.4

            	
              Subdivisions, Headings and Table
      of Contents

            

    

     

    The division of this Subscription
Agreement into Articles, Sections, Schedules and other subdivisions, the
inclusion of headings and the provision of a table of contents are for
convenience of reference only and shall not affect the construction or
interpretation of this Subscription Agreement.  The headings in this
Subscription Agreement are not intended to be full or precise descriptions of
the text to which they refer.  Unless something in the subject matter
or context is inconsistent therewith, references herein to an Article, Section,
Subsection, paragraph, clause or Schedule are to the applicable article,
section, subsection, paragraph, clause or schedule of this Subscription
Agreement.

     

    ARTICLE
2                                SCHEDULES

     

    
      	
              2.1

            	
              Description of
      Schedules

            

    

     

    The following are the Schedules attached
to and incorporated in this Subscription Agreement by reference and deemed to be
a part hereof:

     

    
      	
              Schedule
"A"

            	
              -

            	
              Certificate of Accredited
      Investor

            
	 	 	 
	
              Schedule
"B"

            	
              -

            	
              Certificate of UK
      Investors

            
	 	 	 
	
              Schedule
"C"

            	
              -

            	
              Certificate of Non-Canadian
      Subscribers

            
	 	 	 
	
              Schedule
"D"

            	
              -

            	
              Term
  Sheet

            
	 	 	 
	
              Schedule
"E"

            	
              -

            	
              Registration Rights
      Agreement

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    ARTICLE
3                                SUBSCRIPTION AND DESCRIPTION OF COMMON
SHARES

     

    
      	
              3.1

            	
              Subscription for Common
      Shares

            

    

     

    The Subscriber hereby confirms its
irrevocable subscription for and offer to purchase the Subscribed Shares from
the Corporation, and hereby tenders the Subscription Price, which, upon
acceptance by the Corporation, will constitute a binding agreement of the
Subscriber with the Corporation to purchase from the Corporation, and, on the
part of the Corporation, to sell to the Subscriber, the Subscribed Shares, on
and subject to the terms and conditions set out in this Subscription Agreement,
for the Subscription Price which is payable as described in Article 4
hereto.

     

    In accordance with the Underwriting
Agreement, and subject to the terms and conditions contained in this
Subscription Agreement, upon acceptance by the Corporation of this subscription
(in whole or in part) the Subscriber will be obliged to purchase from the
Corporation the number of Subscribed Shares in respect of which this
subscription has been accepted, which will be in substitution of the
Underwriter's obligation to purchase such Subscribed Shares.  The
Subscriber acknowledges and agrees that no consideration is being paid hereunder
in respect of any rights issuable under the Rights Plan.

     

    
      	
              3.2

            	
              Acceptance and Rejection of
      Subscription by the
Corporation

            

    

     

    The Corporation shall forward to the
Subscriber confirmation of acceptance or rejection (in whole or in part) of this
Subscription Agreement promptly after the acceptance or rejection of this
Subscription Agreement by the Corporation.  The Subscriber
acknowledges and agrees that, notwithstanding Section 3.1 above, the Corporation
reserves the right, in its absolute discretion, to reject this subscription for
Common Shares, in whole or in part, at any time prior to the Closing Time. If
this subscription is rejected in whole, any cheques or other forms of payment
delivered to the Underwriter on account of the Subscription Price will be
promptly returned (without interest) to the Subscriber without interest or
deduction. If this subscription is accepted only in part, a cheque representing
any refund (without interest) of the Subscription Price for that portion of the
subscription for Common Shares which is not accepted will be promptly delivered
to the Subscriber without interest or deduction.

     

    
      	
              3.3

            	
              Payment

            

    

     

    The Subscriber shall deliver the
aggregate amount payable in respect of the Subscribed Shares to the Underwriter
at or before the Closing Time on the Closing Date by certified cheque or bank
draft drawn on a Canadian chartered bank or trust company in immediately
available and freely transferable Canadian funds and payable to "Haywood
Securities Inc." or by wire transfer or other arrangements acceptable to the
Underwriter.  Such funds shall be held in escrow (without interest) by
the Underwriter pending the Closing.

     

    
      	
              3.4

            	
              U.S. Securities
      Matters

            

    

     

    The Common Shares are being offered and
sold in reliance on the exemption from registration contained in Regulation S of
the U.S. Securities Act.  Following the Closing, the Corporation has
agreed to register the resale of the Common Shares under the U.S. Securities Act
pursuant to the Registration Rights Agreement.

     

    ARTICLE
4                                CLOSING

     

    
      	
              4.1

            	
              Closing

            

    

     

    Delivery and sale of the Subscribed
Shares and payment of the Subscription Price will be completed (the
"Closing") at the offices of the Corporation's
Canadian counsel, at 1:00 p.m. (Toronto time) (the "Closing
Time") on July 15, 2009 or
such other place or date or time as the Corporation and the Underwriter may
mutually agree (the "Closing
Date").  Subject
to Section 3.3, if, prior to the Closing Time, the terms and conditions
contained in this Subscription Agreement and the Underwriting Agreement have
been complied with to the satisfaction of the Underwriter, or waived by the
Underwriter, the Underwriter shall deliver to the Corporation completed
Subscription Agreements from the Subscribers (or, if the Underwriter does not
have substituted purchasers for any portion of the Offering, from the
Underwriter) and payment of the Subscription Price against delivery by the
Corporation of certificates representing the Subscribed Shares and such other
documentation as may be required pursuant to the Subscription Agreement and the
Underwriting  Agreement.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    If, prior to the Closing Time, the terms
and conditions contained in this Subscription Agreement and the Underwriting
Agreement have not been complied with to the satisfaction of the Underwriter, or
waived by it (other than delivery by the Corporation to the Subscriber of a
certificate representing the Subscribed Shares), the Underwriter, the
Corporation and the Subscriber will have no further obligations under this
Subscription Agreement.

     

    
      	
              4.2

            	
              Conditions of
      Closing

            

    

     

    The completion of the Offering is
conditional upon, among other things, the Corporation obtaining TSX Approval and
NYSE AMEX Approval prior to the Closing Date and satisfactory due diligence by
the Underwriter in respect of the business and affairs of the
Corporation.

     

    The Subscriber acknowledges and agrees
that as the sale of the Common Shares will not be qualified by a prospectus in
Canada or registered in the United States, such sale and issuance is subject to
the condition that the Subscriber return to the Corporation and/or the
Underwriter all documentation required by the Securities Laws.  The
Subscriber acknowledges and agrees that the Underwriter and/or the Corporation
may provide the Securities Regulators and tax authorities with a list setting
forth the identities of the beneficial purchasers of the Common
Shares.  Notwithstanding that the Subscriber may be purchasing Common
Shares as agent on behalf of an undisclosed principal, the Subscriber agrees to
provide, on request, particulars as to the identity of such undisclosed
principal as may be required by the Corporation in order to comply with the
foregoing.

     

    The Subscriber acknowledges and agrees
that the obligations of the Corporation hereunder are conditional on the
accuracy of the representations and warranties of the Subscriber contained in
this Subscription Agreement as of the date of this Subscription Agreement, and
as of the Closing Time as if made at and as of the Closing Time, and the
fulfilment of the following additional conditions as soon as possible and in any
event not later than the Closing Time:

     

    (a)           unless other arrangements acceptable to
the Underwriter have been made, payment by the Subscriber of the Subscription
Price as set out in Section 3.3;

     

    (b)           the Subscriber having properly
completed, signed and delivered this Subscription Agreement
to:

     

    
      	
              Haywood Securities
      Inc.

              Suite 2000 - 400 Burrard
      Street

              Vancouver, B.C.
      V6C 3A6

              Attention: Michelle
      Jankovich

              Facsimile:
      604-697-7498

            

    

     

    (c)           the Subscriber having properly
completed, signed and delivered Schedule "A", Schedule "B" or Schedule "C"
hereto, as applicable.

     

    
      	
              4.3

            	
              Authorization of the
      Underwriter

            

    

     

    The Subscriber irrevocably authorizes
the Underwriter, in its discretion, to act as the Subscriber's representative at
the Closing, and hereby appoints the Underwriter, with full power of
substitution, as its true and lawful attorney with full power and authority in
the Subscriber's place and stead:

     

    (a)           to receive one or more certificates
representing the Subscribed Shares, to execute in the Subscriber's name and on
its behalf all closing receipts and required documents, to complete and correct
any errors or omissions in any form or document provided by the Subscriber in
connection with the subscription for the Subscribed Shares and to exercise any
rights of termination contained in the Underwriting
Agreement;

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    (b)           to extend such time periods and to
waive, in whole or in part, any representations, warranties, covenants or
conditions for the Subscriber's benefit contained in this Subscription Agreement
and the Underwriting Agreement or any ancillary or related document;
and

     

    (c)           to terminate this Subscription Agreement
if any condition precedent is not satisfied, in such manner and on such terms
and conditions as the Underwriter in its sole discretion may
determine.

     

    The Subscriber acknowledges and agrees
that the Underwriter and the Corporation may vary, amend, alter or waive, in
whole or in part, one or more of the terms to be set forth in the Underwriting
Agreement in such manner and on such terms and conditions as they may determine,
and that any such variation, amendment, alteration or waiver shall not affect in
any way the obligations of the Subscriber or such others for whom the Subscriber
is contracting hereunder.

     

    ARTICLE
5                                REPRESENTATIONS AND WARRANTIES OF THE
CORPORATION

     

    
      	
              5.1

            	
              Representations, Warranties and
      Covenants of the Corporation

            

    

     

    By execution of this Subscription
Agreement, the Corporation hereby agrees with the Subscriber that the Subscriber
shall have the benefit of the representations and warranties made by the
Corporation to the Underwriter as set forth in the Underwriting Agreement, and
acknowledges that the Subscriber is relying on such representations and
warranties in connection with the transactions contemplated
herein.  Such representations and warranties shall continue in full
force and effect for the benefit of the Subscriber in accordance with the
Underwriting Agreement.

     

    ARTICLE
6                                ACKNOWLEDGEMENTS, COVENANTS,
REPRESENTATIONS AND WARRANTIES OF THE SUBSCRIBER

     

    
      	
              6.1

            	
              Representations, Warranties and
      Covenants of the Subscriber

            

    

     

    The Subscriber, on its own behalf and,
if applicable, on behalf of each beneficial purchaser for whom it is acting,
hereby represents and warrants to, and covenants with, the Corporation and the
Underwriter as follows as at the date hereof and as at the Closing Time and
acknowledges that the Corporation and the Underwriter, and their respective
counsel, are relying on such representations and warranties in connection with
the transactions contemplated herein:

     

    (a)           The Subscriber and (if applicable) each
beneficial purchaser for whom it is acting is resident or, if not an individual,
has its head office, in the jurisdiction set out on the face page of this
Subscription Agreement.  The address set forth on the face page of
this Subscription Agreement is the residence or place of business of the
Subscriber, or the residence or place of business of any beneficial purchaser
for whom the Subscriber is acting, and such address was not obtained or used
solely for the purpose of acquiring Common Shares and the Subscriber and any
beneficial purchaser was solicited to purchase Common Shares solely in such
jurisdiction.

     

    (b)           The Subscriber is not a "U.S. Person"
(as that term is defined by Regulation S under the U.S. Securities Act, which
definition includes, but is not limited to, an individual resident in the United
States, an estate or trust of which any executor or administrator or trustee,
respectively, is a U.S. Person and any partnership or company organized or
incorporated under the laws of the United States (or any State thereof)) and is
not acquiring the Common Shares for the account or benefit of a U.S. Person or a
person in the United States.

     

    (c)           The Common Shares have not been offered
to the Subscriber in the United States, and the individuals making the order to
purchase the Common Shares and executing and delivering this Agreement on behalf
of the Subscriber were not in the United States when the order was placed and
this Subscription Agreement was executed and delivered.

     

    (d)           The Subscriber undertakes and agrees
that it will not offer or sell the Common Shares in the United States unless
such shares are registered under the U.S. Securities Act and the securities laws
of all applicable states of the United States or another exemption from such
registration requirements is available, and further that it will not resell the
Common Shares except in accordance with the provisions of applicable securities
legislation, regulations, rules, policies and orders and stock exchange
rules.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (e)           The Subscriber will not engage in
hedging transactions with regard to the Common Shares unless conducted in
compliance with the U.S. Securities Act.

     

    (f)           The Subscriber acknowledges that the
Corporation and its transfer agent will refuse to register any transfer of any
of the Common Shares not made in accordance with the provisions of Regulation S
of the U.S. Securities Act, pursuant to an available exemption from registration
under the U.S. Securities Act or under an effective registration statement under
the U.S. Securities Act.

     

    (g)           If the

     Subscriber is resident in Canada,
the Subscriber, on its own behalf and (if applicable) on behalf of each
beneficial purchaser for whom it is acting, represents, warrants and certifies
as set out in Schedule "A" hereto and further certifies that the Subscriber and
(if applicable) each such beneficial purchaser, as the case may be, falls into
one or more of the categories of prospectus exempt purchasers listed in Schedule
"A" hereto (as specified by the Subscriber in such
Schedule).

     

    (h)           If the Subscriber is resident in the
United Kingdom, the Subscriber, on its own behalf and (if applicable) on behalf
of each beneficial purchaser for whom it is acting, represents, warrants and
certifies as set out in Schedule "B" hereto.

     

    (i)           If the Subscriber is resident outside of
Canada, the United States and the United Kingdom, the Subscriber, on its own
behalf and (if applicable) on behalf of each beneficial purchaser for whom it is
acting, represents, warrants and certifies as set out in Schedule "C"
hereto.

     

    (j)           The Subscriber has duly and properly
completed, executed and delivered to the Corporation within applicable time
periods, the certificate and form set forth in Schedule "A", Schedule "B" or
Schedule "C" hereto, as applicable, and the representations, warranties and
certifications contained therein are true and correct as at the date hereof and
will be true and correct at the Closing Time.

     

    (k)           The execution and delivery of this
Subscription Agreement, the performance and compliance with the terms hereof,
the subscription for and purchase of the Subscribed Shares and the completion of
the transactions described herein by the Subscriber will not result in any
material breach of, or be in conflict with or constitute a material default
under, or create a state of facts which, after notice or lapse of time, or both,
would constitute a material default under any term or provision of the
constating documents, by-laws or resolutions of the Subscriber or any beneficial
purchaser for whom the Subscriber is acting, the Securities Laws or any other
laws applicable to the Subscriber or any beneficial purchaser for whom the
Subscriber is acting, any agreement to which the Subscriber or any beneficial
purchaser for whom the Subscriber is acting is a party, or any judgment, decree,
order, statute, rule or regulation applicable to the Subscriber or any
beneficial purchaser for whom the Subscriber is acting.

     

    (l)           The Subscriber is subscribing for the
Subscribed Shares as principal for its own account and not for the benefit of
any other Person (within the meaning of applicable Securities Laws) and not with
a view to the resale or distribution of all or any of the Subscribed Shares, or
if it is not subscribing as principal, it acknowledges that the Corporation may
be required by law to disclose to certain regulatory authorities the identity of
each beneficial purchaser of the Subscribed Shares for whom it is acting and
agrees to provide such information.

     

    (m)           In the case of a subscription for the
Subscribed Shares by the Subscriber acting as trustee or agent (including, for
greater certainty, a portfolio manager or comparable adviser) for a principal,
the Subscriber is duly and properly authorized to execute and deliver this
Subscription Agreement and all other necessary documentation in connection with
such subscription on behalf of such beneficial purchaser, who is subscribing as
principal for its own account, not for the benefit of any other Person and not
with a view to the resale or distribution of the Subscribed Shares, and this
Subscription Agreement has been duly authorized, executed and delivered by or on
behalf of and constitutes a legal, valid and binding agreement of such
principal, enforceable in accordance with its terms against such principal, and
the Subscriber acknowledges that the Corporation and/or the Underwriter may be
required by law to disclose the identity of such beneficial purchaser for whom
the Subscriber is acting and agrees to provide information as the Corporation
and/or the Underwriter may be required to disclose.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (n)           In the case of a subscription for the
Subscribed Shares by the Subscriber acting as principal, this Subscription
Agreement has been duly and properly authorized, executed and delivered by, and
constitutes a legal, valid and binding agreement of, the
Subscriber.  This Subscription Agreement is enforceable in accordance
with its terms against the Subscriber and (if applicable) any beneficial
purchaser on whose behalf the Subscriber is acting.

     

    (o)           If the Subscriber
is:

     

    (i)           a corporation, the Subscriber is duly
incorporated and is validly subsisting under the laws of its jurisdiction of
incorporation and has all requisite legal and corporate power and authority to
execute and deliver this Subscription Agreement, to subscribe for the Subscribed
Shares as contemplated herein and to observe and perform its obligations under
the terms of this Subscription Agreement;

     

    (ii)           a partnership, syndicate or other form
of unincorporated organization, the Subscriber has the necessary legal capacity
and authority to execute and deliver this Subscription Agreement on behalf of
such organization and to observe and perform its covenants and obligations
hereunder and has obtained all necessary approvals in respect thereof;
or

     

    (iii)           an individual, the Subscriber is of the
full age of majority and is legally competent to execute this Subscription
Agreement and to observe and perform his or her covenants and obligations
hereunder.

     

    (p)           Other than the Underwriter (and any
group of investment dealers managed by the Underwriter for the purposes of
offering the Common Shares for sale), there is no person acting or purporting to
act in connection with the transactions contemplated herein who is entitled to
any brokerage or finder's fee.  If any person claims that any fee or
other compensation is payable by the Corporation or the Underwriter in
connection with this subscription for the Subscribed Shares, the Subscriber
covenants to indemnify and hold harmless the Corporation and the Underwriter
with respect thereto and with respect to all costs reasonably incurred in the
defence thereof.

     

    (q)           The Subscriber is not, with respect to
the Corporation or any of its affiliates, a Control Person and will not become a
Control Person by virtue of the purchase of the Subscribed Shares, and does not
intend to act in concert with any other person to form a Control Person of the
Corporation.

     

    (r)           The Subscriber is not purchasing Common
Shares with knowledge of any material fact or information concerning the
Corporation which has not been generally disclosed to the
public.

     

    (s)           No person has made to the Subscriber any
written or oral representations:

     

    
      	
               
      

            	
              (i)

            	
              that any person will resell or
      repurchase any of the Common
Shares;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              that any person will refund the
      Subscription Price; or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              as to the future price or value of
      the Common Shares.

            

    

     

    (t)           This subscription for Common Shares has
not been made through or as a result of, and the distribution of Common Shares
is not being accompanied by, any form of advertisement, including, without
limitation, in printed public media, radio, television, internet or
telecommunications, including electronic display, or as part of a general
solicitation.

     

    (u)           None of the funds the Subscriber is
using to purchase the Subscribed Shares is, to the knowledge of the Subscriber,
proceeds obtained or derived, directly or directly, as a result of illegal
activities.

     

    (v)           The delivery of this subscription, the
acceptance hereof by the Corporation and the issuance of Subscribed Shares to
the Subscriber complies with all applicable laws of the Subscriber's
jurisdiction of residence and domicile and will not cause the Corporation or any
of its officers or directors to become subject to or require any disclosure,
prospectus or other reporting requirement to which the Corporation is not
currently subject and which is not otherwise contemplated in this Subscription
Agreement.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (w)           If the Subscriber is a corporation,
syndicate, partnership or other form of entity (other than an investment fund,
as defined in National Instrument 45-106), the Subscriber was not created or is
not being used solely to purchase or hold the Subscribed Shares and has a bona
fide purpose other than investing in the Subscribed Shares.

     

    
      	
              6.2

            	
              Acknowledgments and Agreements of
      the Subscriber

            

    

     

    The Subscriber, on its own behalf and,
if applicable, on behalf of each beneficial purchaser for whom it is acting,
acknowledges and agrees as follows:

     

    (a)           The Subscriber has received a copy of
the Term Sheet setting out the principal terms of the
Offering.

     

    (b)           The Subscriber acknowledges that the
Corporation contemplates completing the Offering and that the aggregate gross
proceeds of the Offering will be $10,000,000, and may be increased to
$13,000,000 upon written mutual consent of the Corporation and the
Underwriter.

     

    (c)           No securities commission, agency,
governmental authority, regulatory body, stock exchange or other regulatory body
has reviewed or passed on the merits of the Subscribed
Shares.

     

    (d)           The Subscribed Shares shall be subject
to statutory resale restrictions under the United States and the Securities Laws
of the province or territory in which the Subscriber resides and under other
applicable securities laws, and the Subscriber covenants that it will not resell
the Subscribed Shares except in compliance with such laws, and the Subscriber
acknowledges that it is solely responsible (and neither the Corporation nor the
Underwriter is in any way responsible) for such compliance.

     

    (e)           The Subscriber's ability to transfer the
Subscribed Shares is limited by, among other things, applicable Securities
Laws.

     

    (f)           In addition, the Subscriber acknowledges
that, while the Corporation has agreed to file the Registration Statement and
use its commercially reasonable efforts to cause it to be declared effective by
the SEC, there is no assurance that the Corporation will be able to cause the
Registration Statement to be declared effective by the SEC, and if the
Registration Statement is not declared effective by the SEC, the Common Shares
may not be resold by the Subscriber, except pursuant to an exemption contained
under the applicable securities laws, which may not be available, and if the
Registration Statement is not declared effective, the Common Shares remain
"restricted" securities under the U.S. Securities Act and may only be sold
pursuant to an effective registration statement with respect to such securities,
pursuant to Regulation S or another exemption from the registration requirements
of the U.S. Securities Act.

     

    (g)           The certificates representing the
Subscribed Shares will bear, as of the Closing Date, the following legends as
required by National Instrument 45-102 – Resale of
Securities and with the
necessary information inserted and the Subscriber agrees to comply with the
terms of such legends:

     

    "UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE
<INSERT DATE THAT IS FOUR (4) MONTHS AND ONE (1) DAY AFTER CLOSING
DATE>"

     

    In addition, the certificates
representing the Subscribed Shares will also bear a legend substantially in the
following form as required by the TSX, and the Subscriber agrees to comply with
the terms of such legend:

     

    "THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE LISTED ON THE TORONTO STOCK EXCHANGE ("TSX"); HOWEVER, THE SAID
SECURITIES CANNOT BE TRADED THROUGH THE FACILITIES OF THE TSX SINCE THEY ARE NOT
FREELY TRANSFERABLE, AND CONSEQUENTLY ANY CERTIFICATE REPRESENTING SUCH
SECURITIES IS NOT 'GOOD DELIVERY' IN SETTLEMENT OF TRANSACTIONS ON THE
TSX."

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    In addition, the certificates
representing the Subscribed Shares will also bear a legend substantially in the
following form as required by the Rights Plan:

     

    "UNTIL THE SEPARATION TIME (AS DEFINED
IN THE RIGHTS AGREEMENT REFERRED TO BELOW), THIS CERTIFICATE ALSO EVIDENCES AND
ENTITLES THE HOLDER HEREOF TO CERTAIN RIGHTS AS SET FORTH IN A SHAREHOLDER
RIGHTS PLAN AGREEMENT, DATED AS OF THE 17TH DAY OF JANUARY, 2007 (THE "RIGHTS AGREEMENT"), BETWEEN THE CORPORATION AND CIBC
MELLON TRUST COMPANY, AS RIGHTS AGENT, THE TERMS OF WHICH ARE HEREBY
INCORPORATED HEREIN BY REFERENCE AND A COPY OF WHICH MAY BE INSPECTED DURING
NORMAL BUSINESS HOURS AT THE PRINCIPAL EXECUTIVE OFFICES OF THE
CORPORATION.  UNDER CERTAIN CIRCUMSTANCES, AS SET FORTH IN THE RIGHTS
AGREEMENT, SUCH RIGHTS MAY BE TERMINATED, MAY EXPIRE, MAY BECOME VOID (IF, IN
CERTAIN CASES, THEY ARE "BENEFICIALLY OWNED" BY AN "ACQUIRING PERSON", AS SUCH TERMS ARE DEFINED IN THE
RIGHTS AGREEMENT, WHETHER CURRENTLY HELD BY OR ON BEHALF OF SUCH PERSON OR ANY
SUBSEQUENT HOLDER) OR MAY BE EVIDENCED BY SEPARATE CERTIFICATES AND MAY NO
LONGER BE EVIDENCED BY THIS CERTIFICATE.  THE CORPORATION WILL MAIL OR
ARRANGE FOR THE MAILING OF A COPY OF THE RIGHTS AGREEMENT TO THE HOLDER OF THIS
CERTIFICATE WITHOUT CHARGE AS SOON AS IS PRACTICABLE AFTER THE RECEIPT OF A
WRITTEN REQUEST THEREFORE".

     

    In addition, the certificates
representing the Subscribed Shares will also bear a legend substantially in the
following form as required by the U.S. Securities Act:

     

    "THIS SECURITY HAS NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT AS SET FORTH IN THE
FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT IT
IS NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION
IN COMPLIANCE WITH REGULATION S ADOPTED UNDER THE SECURITIES ACT; (2) AGREES
THAT IT WILL NOT RESELL OR OTHERWISE TRANSFER THE SECURITY EVIDENCED HEREBY,
EXCEPT (A) TO THE ISSUER OR A SUBSIDIARY THEREOF; (B) TO PERSONS OTHER THAN U.S.
PERSONS OUTSIDE THE UNITED STATES IN COMPLIANCE WITH REGULATION S UNDER THE
SECURITIES ACT; (C) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE
144 ADOPTED UNDER THE SECURITIES ACT OR ANOTHER AVAILABLE EXEMPTION UNDER THE
SECURITIES ACT (IF AVAILABLE); OR (D) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, AND (3) AGREES THAT IT WILL, PRIOR TO ANY
TRANSFER OF THIS SECURITY, FURNISH TO THE ISSUER OR ISSUER'S COUNSEL SUCH
CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED BY THE
ISSUER TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT. AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION," "UNITED SATES"
AND "U.S. PERSON" HAVE THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE
SECURITIES ACT. IN ANY CASE, THE HOLDER HEREOF WILL NOT, DIRECTLY OR INDIRECTLY,
ENGAGE IN ANY HEDGING TRANSACTION WITH REGARD TO THIS SECURITY, EXCEPT AS
PERMITTED BY THE SECURITIES ACT. "

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (h)           The Underwriter and/or its counsel,
directors, officers, employees, agents and representatives assume no
responsibility or liability of any nature whatsoever for the accuracy or
adequacy of the Public Record or any publicly available information concerning
the Corporation or as to whether all information concerning the Corporation that
is required to be disclosed or filed by the Corporation under the Securities
Laws has been so disclosed or filed.

     

    (i)           The Subscriber and each beneficial
purchaser for whom it is acting shall execute and file, together with the
prescribed fees, all documentation required by the applicable Securities Laws or
by any legislation or order in force in its jurisdiction of residence or to
which it may be subject, within the time limits prescribed to permit the
subscription for, and issuance of, the Subscribed Shares and thereafter for any
subsequent disposition thereof and agrees that it will furnish to the
Corporation such certificates, legal opinions and other documentation as may be
required by the Corporation.

     

    (j)           If required by applicable Securities
Laws or by the Corporation, the Subscriber and each beneficial purchaser for
whom it is acting will execute, deliver and file or assist the Corporation in
filing such reports, undertakings and other documents with respect to the issue
of the Subscribed Shares as may be required by any securities commission, stock
exchange or other regulatory authority.

     

    (k)           The Subscriber, and each beneficial
purchaser for whom it is acting, have been advised to consult their own legal
advisors with respect to trading in the Subscribed Shares and with respect to
the resale restrictions imposed by the Securities Laws of the United States or
any province or territory in which the Subscriber resides and other applicable
securities laws, and acknowledges that no representation has been made
respecting the applicable hold periods imposed by the Securities Laws or other
resale restrictions applicable to such securities which restrict the ability of
the Subscriber (or others for whom it is acting) to resell such securities that
the Subscriber (or others for whom it is acting) is solely responsible to find
out what these restrictions are and the Subscriber is solely responsible (and
neither the Corporation nor the Underwriter is in any way responsible) for
compliance with applicable resale restrictions and the Subscriber is aware that
it (or the beneficial purchaser for whom it is acting) may not be able to resell
such securities except in accordance with limited exemptions under the
Securities Laws and other applicable securities laws.

     

    (l)           The Subscriber has not received or been
provided with a prospectus, offering memorandum (within the meaning of the
Securities Laws) or any sales or advertising literature in connection with the
Offering and the Subscriber's decision to subscribe for Common Shares was not
based upon, and the Subscriber has not relied upon, any verbal or written
representations as to facts made by or on behalf of the Corporation or the
Underwriter. The Subscriber's decision to subscribe for Common Shares was based
solely upon the Term Sheet attached hereto as Schedule "D" and information about
the Corporation which is publicly available (any such information having been
obtained by the Subscriber without independent investigation or verification by
the Underwriter).

     

    (m)           The Corporation and the Underwriter, and
their respective counsel, are relying on the representations, warranties and
covenants contained herein and in the applicable Schedules attached hereto to
determine the Subscriber's eligibility to subscribe for Common Shares under
applicable Securities Laws and the Subscriber agrees to indemnify the
Corporation, the Underwriter and each of their respective directors and officers
against all losses (other than loss of profits), claims, costs, expenses,
damages or liabilities which any of them may suffer or incur as a result of or
arising from reliance thereon.  The Subscriber undertakes to
immediately notify the Underwriter of any change in any statement or other
information relating to the Subscriber set forth in such applicable Schedules
that takes place prior to the Closing Time.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    (n)           The Corporation and the Underwriter are
relying on an exemption from the requirement to provide the Subscriber with a
prospectus under the Securities Laws and, as a consequence of acquiring Common
Shares pursuant to such exemption, certain protections, rights and remedies
provided by the Securities Laws, including statutory rights of rescission and/or
damages, will not be available to the Subscriber.

     

    (o)           The Common Shares are being offered and
sold in reliance on the exemption from registration contained in Regulation S of
the U.S. Securities Act.  Following the Closing, the Corporation has
agreed to register the resale of the Common Shares under the U.S. Securities Act
pursuant to the Registration Rights Agreement.

     

    (p)           The Subscriber, and each beneficial
purchaser for whom it is acting, is responsible for obtaining such independent
legal and tax advice as it considers appropriate in connection with the
execution, delivery and performance of this Subscription Agreement and the
transactions contemplated under this Subscription Agreement, including without
limitation for the proposes of giving representations, warranties and covenants
under this Subscription Agreement.

     

    (q)           There is no government or other
insurance covering the Common Shares.

     

    (r)           The Subscriber acknowledges that the
Underwriter's counsel and the Corporation's counsel are acting as counsel to the
Underwriter and the Corporation, respectively, and not as counsel to the
Subscriber.

     

    (s)           The Subscriber acknowledges that all
costs and expenses incurred by the Subscriber (including any fees and
disbursements of any special counsel or other advisors retained by the
Subscriber) relating to the purchase of the Subscribed Shares shall be borne by
the Subscriber.

     

    (t)           The Subscriber and each beneficial
purchaser for whom it is acting acknowledge that the Common Shares are
speculative in nature and that there are risks associated with the purchase of
Common Shares and the Subscriber and each beneficial purchaser for whom it is
acting has such knowledge, sophistication and experience in business and
financial matters as to be capable of evaluating the merits and risks of its
investment in the Subscribed Shares, fully understands the speculative nature of
the Subscribed Shares and is able to bear the economic risk of loss of its
entire investment.

     

    (u)           The Subscriber has evaluated the risks
involved in investing in the Common Shares and has determined that the Common
Shares are a suitable investment for the Subscriber.  Specifically,
the aggregate amount of the investments the Subscriber has in, and the
Subscriber's commitments to, all similar investments that are illiquid is
reasonable in relation to the Subscriber's net worth, both before and after the
subscription for and purchase of the Common Shares pursuant to this
Agreement.

     

    (v)           The Subscriber represents and warrants
further that the Subscriber has no contract, understanding, agreement or
arrangement with any Person to sell or transfer or pledge to such Person or
anyone else any of the Common Shares for which the Subscriber hereby subscribes
(in whole or in part); and the Subscriber represents and warrants that the
Subscriber has no plans to enter into any such contract, undertaking, agreement
or arrangement.

     

    (w)           The Subscriber acknowledges that it has
been furnished with such documents, materials and information as the Subscriber
deems necessary or appropriate for evaluating an investment in the
Company.  The Subscriber further acknowledges that it has had the
opportunity to ask questions of, and receive answers from, the directors and
officers of the Company and the Underwriter, concerning the terms and conditions
of the Common Shares and the Offering.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    
      	
              6.3

            	
              Reliance on Representations,
      Warranties, Covenants and
  Acknowledgements

            

    

     

    The Subscriber acknowledges and agrees
that the representations, warranties, covenants and acknowledgements made by the
Subscriber in this Subscription Agreement are made with the intention that they
may be relied upon by the Corporation and the Underwriter in determining the
Subscriber's eligibility (and, if applicable, the eligibility of others for whom
the Subscriber is acting) to purchase Common Shares under the Securities
Laws.  The Subscriber further agrees that by accepting Common Shares,
the Subscriber shall be representing and warranting that such representations,
warranties, acknowledgements and covenants are true as at the Closing Time with
the same force and effect as if they had been made by the Subscriber at the
Closing Time and that they shall survive the purchase by the Subscriber of
Common Shares and shall continue in full force and effect notwithstanding any
subsequent disposition by the Subscriber of any of such Common
Shares.

     

    ARTICLE
7                                SURVIVAL OF REPRESENTATIONS, WARRANTIES
AND COVENANTS

     

    
      	
              7.1

            	
              Survival of Representations,
      Warranties and Covenants of the
  Corporation

            

    

     

    The representations, warranties and
covenants of the Corporation contained in this Subscription Agreement shall
survive the Closing and, notwithstanding such Closing or any investigation made
by or on behalf of the Subscriber with respect thereto, shall continue in full
force and effect for the benefit of the Subscriber and the
Underwriter.

     

    
      	
              7.2

            	
              Survival of Representations,
      Warranties and Covenants of the
  Subscriber

            

    

     

    The representations, warranties and
covenants of the Subscriber contained in this Subscription Agreement shall
survive the Closing and, notwithstanding such Closing or any investigation made
by or on behalf of the Corporation or the Underwriter with respect thereto,
shall continue in full force and effect for the benefit of the Corporation and
the Underwriter.

     

    ARTICLE
8                                COMMISSION

     

    
      	
              8.1

            	
              Commission to
      Underwriter

            

    

     

    The Subscriber understands that in
connection with the Offering the Underwriter will receive from the Corporation,
on Closing, a cash commission equal to 6.5% of the gross proceeds from the
Offering.  In addition, the Underwriter will receive a number of
compensation options ("Compensation
Options") that is equal to
6% of the number of Offered Securities sold pursuant to the Offering, each
Compensation Option being exercisable at a price of $0.45 for a period of 24
months from the Closing Date to acquire one Common Share.  No other
fee or commission is payable by the Corporation in connection with the
completion of the Offering; however, the Corporation will pay certain fees and
expenses of the Underwriter in connection with the Offering, as set out in the
Underwriting  Agreement.

     

    ARTICLE
9                                COLLECTION OF PERSONAL
INFORMATION

     

    
      	
              9.1

            	
              Collection of Personal
      Information

            

    

     

    By executing this Subscription
Agreement, the Subscriber hereby consents to the collection, use and disclosure
of the personal information provided herein and other personal information
provided by the Subscriber or collected by the Corporation or its agents as
reasonably necessary in connection with the Subscriber's subscription for the
Subscribed Shares (collectively, "personal
information") as follows:
(a) the Corporation may use personal information and disclose personal
information to intermediaries such as the Corporation's legal counsel and
withholding and/or transfer agents for the purposes of determining the
Subscriber's eligibility to invest in the Subscribed Shares and for managing and
administering the Subscriber's investment in the Subscribed Shares; (b) if the
Subscriber purchased securities through a registered dealer, the Corporation may
disclose and collect such personal information relating to the Subscriber's
holding of the Subscribed Shares to and from the dealer; (c) the Corporation and
its agents may use the Subscriber's social insurance number for income reporting
purposes in accordance with applicable law; (d) the Corporation, its agents and
advisors, may each collect, use and disclose personal information for the
purposes of meeting legal, regulatory, self-regulatory, security and audit
requirements (including any applicable tax, securities, money laundering or
anti-terrorism legislation, rules or regulations) and as otherwise permitted or
required by law, which disclosures may include disclosures to tax, securities or
other regulatory or self-regulatory authorities in Canada and/or in foreign
jurisdictions, if applicable, in connection with the regulatory oversight
mandate of such authorities; (e) the Corporation and its agents and advisors may
use personal information and disclose personal information to parties connected
with the proposed or actual transfer, sale, assignment, merger or amalgamation
of the Corporation or its business or assets or similar transactions, for the
purpose of permitting such parties to evaluate and/or proceed with and complete
such transaction.  Purchasers, assignees and successors of the
Corporation or its business or assets may collect, use and disclose personal
information as described in this Subscription Agreement.  The
Subscriber acknowledges that the Corporation's agents or intermediaries may be
located outside of Canada, and personal information may be transferred and/or
processed outside of Canada for the purposes described above, and that measures
the Issuer may use to protect personal information while handled by agents,
intermediaries or other third parties on its behalf, and personal information
otherwise disclosed or transferred outside of Canada for the purposes described
above, are subject to legal requirements in foreign countries applicable to
Issuer or such third parties, for example lawful requirements to disclose
personal information to government authorities in those
countries.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    If the Subscriber is resident in, or
otherwise subject to the applicable securities legislation of Ontario, the
Subscriber acknowledges (i) the delivery to the Ontario Securities Commission of
the Subscriber's full name, residential address and telephone number, the number
and type of securities purchased by the Subscriber, the total purchase price,
the exemption relied on, and the date of distribution, (ii) that such
information is being collected indirectly by the Ontario Securities Commission
under the authority granted to it in securities legislation, (iii) that such
information is being collected for the purposes of the administration and
enforcement of the securities legislation of Ontario, and (iv) that the
Administrative Assistant to the Director of Corporate Finance at the Ontario
Securities Commission, Suite 1903, Box 55, 20 Queen Street West, Toronto,
Ontario M5H 3S8, telephone (416) 593-8086, can be contacted to answer questions
about the Ontario Securities Commission's indirect collection of such
information. The Subscriber hereby authorizes the indirect collection of such
information by the Ontario Securities Commission.

     

    ARTICLE
10                                MISCELLANEOUS

     

    
      	
              10.1

            	
              Further
      Assurances

            

    

     

    Each of the parties hereto upon the
request of each of the other parties hereto, whether before or after the Closing
Time, shall do, execute, acknowledge and deliver or cause to be done, executed,
acknowledged and delivered all such further acts, deeds, documents, assignments,
transfers, conveyances, powers of attorney and assurances as may reasonably be
necessary or desirable to complete the transactions contemplated
herein.

     

    
      	
              10.2

            	
              Notices

            

    

     

    (a)           Any notice, direction or other
instrument required or permitted to be given to any party hereto shall be in
writing and shall be sufficiently given if delivered personally, or transmitted
by facsimile tested prior to transmission to such party, as
follows:

     

    (i)           in the case of the Corporation,
to:

    
       

      
        
          
            
              	
                       
      

                    	
                            
                        Apollo Gold
      Corporation

                      

                    

            

            
              	
                       
      

                    	
                            
                        5655 S. Yosemite
      Street,

                      

                    

            

            
              	
                       
      

                    	
                            
                        Suite
      200

                      

                    

            

            
              	
                       
      

                    	
                            
                        Greenwood Village, CO,
      USA

                      

                    

            

            
              	
                       
      

                    	
                            
                        80111

                      

                    
	 	 

            

            
              	
                       
      

                    	
                      Attention:

                    	
                      R. David
      Russell

                    

            

            
              	
                       
      

                    	
                      Fax:

                    	
                      720-482-0957

                    

            

            
               

            

          

        

      

    

    
      
        
           

        

        
          16

          
            

          

        

        
           

        

      

       

      
        with a copy to:

        
           

          
            
              
                
                  	
                           
      

                        	
                                
                                  
                              Fogler, Rubinoff
      LLP

                            

                          

                        

                

                
                  	
                           
      

                        	
                                
                                  
                              95 Wellington Street
      West

                            

                          

                        

                

                
                  	
                           
      

                        	
                                
                                  
                              Suite
      1200

                            

                          

                        

                

                
                  	
                           
      

                        	
                                
                                  
                              Toronto-Dominion
      Centre

                            

                          

                        

                

                
                  	
                           
      

                        	
                                
                                  
                              Toronto, Ontario M5J
      2Z9

                            

                          

                        

                

                
                  	
                           
      

                        	
                          Attention:

                        	
                          G. Michael
      Hobart

                        

                

                
                  	
                           
      

                        	
                          Fax:

                        	
                          416-941-8852

                        

                

                
                   

                

              

            

          

        

      

    

    (ii)           in the case of the Subscriber, at the
address specified on the face page hereof, with a copy to the Underwriter
at:

    
       

      
        
          	
                   
      

                	
                  Haywood Securities
      Inc

                

        

        
          	
                   
      

                	
                  Brookfield Place, 181 Bay
      Street

                

        

        
          	
                   
      

                	
                  Suite 2910, Box
      808

                

        

        
          	
                   
      

                	
                  Toronto, Ontario M5J
      2T3

                

        

        
        

        
          	
                   
      

                	
                  Attention:

                	
                  Greg
    McKenzie

                

        

        
          	
                   
      

                	
                  Fax:

                	
                  (416)
    507-2350

                

        

         

      

    

    (b)           Any such notice, direction or other
instrument, if delivered personally, shall be deemed to have been given and
received on the day on which it was delivered, provided that if such day is not
a Business Day then the notice, direction or other instrument shall be deemed to
have been given and received on the first Business Day next following such day
and if transmitted by fax, shall be deemed to have been given and received on
the day of its transmission, provided that if such day is not a Business Day or
if it is transmitted or received after the end of normal business hours then the
notice, direction or other instrument shall be deemed to have been given and
received on the first Business Day next following the day of such
transmission.

     

    (c)           Any party hereto may change its address
for service from time to time by notice given to each of the other parties
hereto in accordance with the foregoing provisions.

     

    
      	
              10.3

            	
              Time of the
      Essence

            

    

     

    Time shall be of the essence of this
Subscription Agreement and every part hereof.

     

    
      	
              10.4

            	
              Costs and
      Expenses

            

    

     

    All costs and expenses (including,
without limitation, the fees and disbursements of legal counsel) incurred in
connection with this Subscription Agreement and the transactions herein
contemplated shall be paid and borne by the party incurring such costs and
expenses.

     

    
      	
              10.5

            	
              Applicable
    Law

            

    

     

    This Subscription Agreement shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the internal laws of the Province of Ontario and the laws of
Canada applicable therein, without reference to any conflicts of law rules that
would impose a law of another jurisdiction. Any and all disputes arising under
this Subscription Agreement, 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 hereby irrevocably
attorns to the jurisdiction of the courts of such province.

     

    
      	
              10.6

            	
              Entire
      Agreement

            

    

     

    This Subscription Agreement, including
the Schedules hereto, constitutes the entire agreement between the parties with
respect to the transactions contemplated herein and cancels and supersedes any
prior understandings, agreements, negotiations and discussions between the
parties.  There are no representations, warranties, terms, conditions,
undertakings or collateral agreements or understandings, express or implied,
between the parties hereto other than those expressly set forth in this
Subscription Agreement or in any such agreement, certificate, affidavit,
statutory declaration or other document as aforesaid. This Subscription
Agreement may not be amended or modified in any respect except by written
instrument executed by each of the parties hereto.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    
      	
              10.7

            	
              Counterparts

            

    

     

    This Subscription Agreement may be
executed in two or more counterparts, each of which shall be deemed to be an
original and all of which together shall constitute one and the same
Subscription Agreement. Counterparts may be delivered either in original or
faxed form and the parties adopt any signature received by a receiving fax
machine as original signatures of the parties.

     

    
      	
              10.8

            	
              Assignment

            

    

     

    This Subscription Agreement may not be
assigned by either party except with the prior written consent of the other
parties hereto.

     

    
      	
              10.9

            	
              Enurement

            

    

     

    This Subscription Agreement shall enure
to the benefit of and be binding upon the parties hereto and their respective
heirs, executors, successors (including any successor by reason of the
amalgamation or merger of any party), administrators and permitted
assigns.

     

    
      	
              10.10

            	
              Language

            

    

     

    The parties hereto acknowledge and
confirm that they have requested that this Subscription Agreement as well as all
notices and other documents contemplated hereby be drawn up on the English
language. Les parties aux
présentes reconnaissent et conferment qu'elles ont convenu que la présente
convention ainsi que tous les avis et documents qui s'y rattachent soient
rédigés dans la langue anglaise.

     

    
      
         

      

      
        18

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