Document:

EXHIBIT 10.1

 

FIRST AMENDMENT TO SETTLEMENT AGREEMENT

 

This First Amendment to Settlement Agreement (this “Amendment”) is dated as of January 28, 2015, by and among Daniel R. Lee, Bradley M. Tirpak and Craig W. Thomas (the foregoing individuals being collectively referred to as the “Concerned Shareholders”) and Full House Resorts, Inc., a Delaware corporation (the “Company”).

 

WHEREAS, on November 28, 2014, the Concerned Shareholders and the Company entered into that certain Settlement Agreement;

 

WHEREAS, on November 28, 2014, the Concerned Shareholders’ Nominees (as defined below) were appointed to the Company’s Board of Directors (the “Board”);

 

WHEREAS, on January 27, 2015, in the interests of reducing the size of the Company’s Board and thereby reducing corporate compliance and regulatory costs, Director Raymond Hemmig resigned from the Board;

 

WHEREAS, in light of the foregoing, the Concerned Shareholders and the Company believe it to be in the best interest of the Company to amend only those portions of the Settlement Agreement necessary to reflect the reduction in Board size from nine to eight members;

 

NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.             Unless otherwise provided herein, terms defined in the Settlement Agreement shall have the same meaning in this Amendment.

 

2.             (a) Section 1(c) of the Settlement Agreement shall be amended in its entirety as follows:

 

(c)           Effective as of the date of the Settlement Agreement, the Board has (i) increased the size of the Board to nine (9) directors and (ii) appointed W.H. Baird Garret, Raymond Hemmig, Ellis Landau, Daniel R. Lee, Bradley M. Tirpak and Craig W. Thomas (the “Concerned Shareholders’ Nominees”) to the Board.  Following the January 27, 2015 resignation from the Board of Raymond Hemmig (the “Hemmig Resignation”) and the reduction of the Board size from nine to eight members, the Company agrees to nominate each of Kenneth R. Adams, Carl G. Braunlich, Kathleen Marshall and each of the six Concerned Shareholders’ Nominees, as amended to reflect the Hemmig Resignation  (collectively, the “2015 Nominees”) for election at the Company’s 2015 annual meeting of stockholders (the “2015 Annual Meeting”) and recommend that the stockholders of the Company vote to elect the 2015 Nominees as directors at the 2015 Annual Meeting. The Company and each of the Concerned Shareholders’ Nominees shall make all necessary filings required in connection with the election of the Concerned Shareholders’ Nominees, as amended for the Hemmig Resignation, with any governmental or regulatory authority that has, or may have, jurisdiction over the Company.

 

    	  

    	 

    
 

 

(b)          Except as expressly provided and to the limited extent set forth in this Amendment, the Settlement Agreement shall remain in full force and effect.

 

3.             Representations, Warranties and Covenants.

 

(a)          The members of the Concerned Shareholders represent, warrant and covenant, each as to himself, as follows:

 

(i)           Each member of the Concerned Shareholders has the power and authority to execute, deliver and carry out the terms and provisions of this Amendment.

 

(ii)          This Amendment has been duly and validly authorized, executed and delivered by each member of the Concerned Shareholders, constitutes a valid and binding obligation and agreement of each such member and is enforceable against each such member in accordance with its terms.

 

(iii)         The execution by each member of the Concerned Shareholders of this Amendment and the performance by each member of the Concerned Shareholders’ obligations hereunder does not and will not violate any law, any order of any court or other agency of government.

 

(b)          The Company hereby represents, warrants and covenants as follows:

 

(i)           The Company has the power and authority to execute, deliver and carry out the terms and provisions of this Amendment and to consummate the transactions contemplated hereby.

 

(ii)          This Amendment has been duly and validly authorized, executed and delivered by the Company, does not require the approval of the stockholders of the Company, constitutes a valid and binding obligation and agreement of the Company and is enforceable against the Company in accordance with its terms

 

(iii)         The Company’s execution of this Amendment and the performance by the Company of its obligations hereunder does not and will not violate any law, any order of any court or other agency of government, the Charter or the Bylaws.

 

    	  

    	 

    
 

 

[Signature Page to Settlement Agreement]

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above.

	 	 
	 	
FULL HOUSE RESORTS, INC.

	 	 	 
	 	 
By: 

	 
	 	 	 
	 	/s/ Carl Braunlich 
	 	Name: Carl Braunlich
	 	Title: Director

	 	 	 
	 	By:	 
 /s/ Daniel R. Lee 

	 	Name: Daniel R. Lee
	 	 	 
	 	By: 	 
 /s/ Bradley M. Tirpak

	 	 
Name: Bradley M. Tirpak

	 	 	 
	 	By: 	 
 /s/ Craig W. Thomas 

	 	 
Name: Craig W. ThomasFiled by Avantafile.com - Homeland Resources Ltd. - Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

This Securities
Purchase Agreement (this “Agreement”), dated as
of January 22, 2015, is entered into by and between Homeland Resources Ltd., a Nevada corporation (“Company”),
and Typenex Co-Investment, LLC, a
Utah limited liability company, its successors and/or assigns (“Investor”).

A.        Company and Investor are executing
and delivering this Agreement in reliance upon the exemption from securities
registration afforded by the rules and regulations promulgated by the United
States Securities and Exchange Commission (the “SEC”) under the
Securities Act of 1933, as amended (the “1933 Act”).

B.         Investor desires to purchase and
Company desires to issue and sell, upon the terms and conditions set forth in
this Agreement (i) a Convertible Promissory Note, in the form attached hereto
as Exhibit A, in the original principal amount of $70,000.00 (the “Note”),
convertible into shares of common stock, $0.0001 par value per share, of
Company (the “Common Stock”), upon the terms and subject to the
limitations and conditions set forth in such Note, and (ii) a Warrant to
Purchase Shares of Common Stock, in the form attached hereto as Exhibit B
(the “Warrant”). 

C.         This Agreement, the Note, the
Warrant, and all other certificates, documents, agreements, resolutions and
instruments delivered to any party under or in connection with this Agreement,
as the same may be amended from time to time, are collectively referred to
herein as the “Transaction Documents”.

D.        For purposes of this Agreement: “Conversion
Shares” means all shares of Common Stock issuable upon conversion of all or
any portion of the Note; “Warrant Shares” means all shares of Common
Stock issuable upon the exercise of or pursuant to the Warrant; and “Securities”
means the Note, the Conversion Shares, the Warrant and the Warrant Shares.

NOW, THEREFORE,
Company and Investor hereby agree as follows:

1.                 
Purchase and Sale of Securities.

1.1.           
Purchase of Securities. Company shall issue and sell to Investor and Investor agrees to
purchase from Company the Note and the Warrant. In consideration thereof,
Investor shall pay the Purchase Price to Company. For the avoidance of doubt,
the Purchase Price constitutes payment in full for Warrant.

1.2.           
Form of Payment. On the Closing Date, Investor shall pay the Purchase Price to
Company against delivery of the Note and the Warrant.

1.3.           
Closing Date.
Subject to the satisfaction (or written waiver) of the conditions set forth in
Section 5 and Section 6 below, the date and time of the issuance
and sale of the Securities pursuant to this Agreement (the “Closing Date”)
shall be 5:00 p.m., Eastern Time on or about January 22, 2015, or such other
mutually agreed upon time. The closing of the transactions contemplated by this
Agreement (the “Closing”) shall occur on the Closing Date at the offices
of Investor unless otherwise agreed upon by the parties.

1.4.           
Collateral for the Note. The Note shall not be secured.

1.5.           
Original Issue Discount; Transaction Expenses. The Note carries an original issue discount of $6,000.00 (the “OID”). In addition, Company agrees to pay $4,000.00 to
Investor to cover Investor’s legal fees, accounting costs, due diligence,
monitoring and other transaction costs incurred

1

 
 in connection with the purchase
and sale of the Securities (the “Transaction Expense Amount”), all of
which amount is included in the initial principal balance of the Note. The “Purchase Price”, therefore, shall be $60,000.00,
computed as follows: $70,000.00 original principal balance, less the OID, less
the Transaction Expense Amount.

2.                 
Investor’s Representations and Warranties. Investor represents and warrants to Company that: (i) this
Agreement has been duly and validly authorized; (ii) this Agreement constitutes
a valid and binding agreement of Investor enforceable in accordance with its
terms; and (iii) Investor is an “accredited investor” as that term is defined
in Rule 501(a) of Regulation D of the 1933 Act.

3.                 
Representations and Warranties of Company. Company represents and warrants to Investor that: (i) Company is a
corporation duly organized, validly existing and in good standing under the
laws of its state of incorporation and has the requisite corporate power to own
its properties and to carry on its business as now being conducted; (ii) Company is duly qualified as a foreign
corporation to do business and is in good standing in each jurisdiction where
the nature of the business conducted or property owned by it makes such
qualification necessary; (iii)
Company has registered its Common Stock under Section 12(g) of the
Securities Exchange Act of 1934, as amended (the “1934 Act”), and is
obligated to file reports pursuant to Section 13 or Section 15(d) of
the 1934 Act; (iv) each of the
Transaction Documents and the transactions contemplated hereby and thereby,
have been duly and validly authorized by Company; (v) this Agreement, the Note, the Warrant,
and the other Transaction Documents have been duly executed and delivered by
Company and constitute the valid and binding obligations of Company enforceable
in accordance with their terms, subject as to enforceability only to general
principles of equity and to bankruptcy, insolvency, moratorium, and other
similar laws affecting the enforcement of creditors’ rights generally; (vi) the execution and delivery of the
Transaction Documents by Company, the issuance of Securities in accordance with
the terms hereof, and the consummation by Company of the other transactions
contemplated by the Transaction Documents do not and will not conflict with or
result in a breach by Company of any of the terms or provisions of, or
constitute a default under (a) Company’s formation documents or bylaws, each as
currently in effect, (b) any indenture, mortgage, deed of trust, or other
material agreement or instrument to which Company is a party or by which it or
any of its properties or assets are bound, including any listing agreement for
the Common Stock, or (c) to Company’s knowledge, any existing applicable law,
rule, or regulation or any applicable decree, judgment, or order of any court,
United States federal or state regulatory body, administrative agency, or other
governmental body having jurisdiction over Company or any of Company’s
properties or assets; (vii) no
further authorization, approval or consent of any court, governmental body,
regulatory agency, self-regulatory organization, or stock exchange or market or
the stockholders or any lender of Company is required to be obtained by Company
for the issuance of the Securities to Investor; (viii) except as set forth in the Company’s
Form 8-K filed November 20, 2014, none of Company’s filings with the SEC
contained, at the time they were filed, any untrue statement of a material fact
or omitted to state any material fact required to be stated therein or
necessary to make the statements made therein, in light of the circumstances
under which they were made, not misleading; (ix) Company has filed all reports,
schedules, forms, statements and other documents required to be filed by
Company with the SEC under the 1934 Act on a timely basis or has received a
valid extension of such time of filing and has filed any such report, schedule,
form, statement or other document prior to the expiration of any such
extension; (x) Company is not,
nor has it been at any time in the previous twelve (12) months, a “Shell
Company,” as such type of “issuer” is described in Rule 144(i)(1) under the
1933 Act; (xi) Company has
taken no action which would give rise to any claim by any person or entity for
a brokerage commission, placement agent or finder’s fees or similar payments by
Investor relating to the Note or the transactions contemplated hereby; (xii) except for such fees arising as a
result of any agreement or arrangement entered into by Investor without the
knowledge of Company (an “Investor’s Fee”), Investor shall have no
obligation with respect to such fees or with respect to any claims made by or
on behalf of other persons for fees of a type contemplated in this subsection
that may be due in connection with the transactions contemplated hereby and
Company shall indemnify and hold harmless each of Investor, Investor’s
employees, officers, directors, stockholders, managers, agents, and partners,
and their respective affiliates, from and against all 

2

 
claims, losses, damages,
costs (including the costs of preparation and attorneys’ fees) and expenses
suffered in respect of any such claimed or existing fees (other than an
Investor’s Fee, if any); (xiii)
when issued, the Conversion Shares and the Warrant Shares will be validly
issued, fully paid for and non-assessable, free and clear of all liens, claims,
charges and encumbrances; and (xiv) Company has performed
due diligence and background research on Investor and its affiliates including,
without limitation, John M. Fife, and, to its satisfaction, has made inquiries
with respect to all matters Company may consider relevant to the undertakings and relationships contemplated by the
Transaction Documents including, among other things, the following: http://investing.businessweek.com/research/stocks/people/person.asp?personId=7505107&ticker=UAHC; SEC Civil Case
No. 07-C-0347 (N.D. Ill.); SEC Civil Action No. 07-CV-347 (N.D. Ill.); and FINRA Case #2011029203701. Company, being aware of the foregoing matters, acknowledges
and agrees that such matters, or any similar matters, have no bearing on the
transactions contemplated by the Transaction Documents and covenants and agrees
it will not use any such information as a defense to performance of its
obligations under the Transaction Documents or in any attempt to avoid, modify
or reduce such obligations.

4.                 
Company Covenants.
Until all of Company’s obligations hereunder are paid and performed in full, or
within the timeframes otherwise specifically set forth below, Company shall
comply with the following covenants: (i) from the date hereof until the date
that is six (6) months after all the Conversion Shares and the Warrant Shares
either have been sold by Investor, or may permanently be sold by Investor
without any restrictions pursuant to Rule 144, Company shall timely make all
filings required to be made by it under the 1933 Act, the 1934 Act, Rule 144 or
any United States securities laws and regulations thereof applicable to Company
or by the rules and regulations of its principal trading market, and such
filings shall conform to the requirements of applicable laws, regulations and
government agencies, and, unless such filings are publicly available on the
SEC’s EDGAR system (via the SEC’s web site at no additional charge), Company
shall provide a copy thereof to Investor promptly after such filings; (ii) so
long as Investor beneficially owns any of the Securities and for at least
twenty (20) Trading Days (as defined in the Note) thereafter, Company shall
file all reports required to be filed with the SEC pursuant to Sections 13
or 15(d) of the 1934 Act, and shall take all reasonable action under its
control to ensure that adequate current public information with respect to
Company, as required in accordance with Rule 144, is publicly available, and
shall not terminate its status as an issuer required to file reports under the
1934 Act even if the 1934 Act or the rules and regulations thereunder would
permit such termination; (iii) the Common Stock shall be listed or quoted for
trading on any of (a) the NYSE MKT, (b) the New York Stock Exchange, (c) the
Nasdaq Global Market, (d) the Nasdaq Capital Market, (e) the OTC Bulletin
Board, (f) the OTCQX, (g) the OTCQB, or (h) the OTC Pink Current; (iv) when
issued, each of the Securities (including, without limitation, the Conversion
Shares and the Warrant Shares), will be validly issued, fully paid for and
non-assessable, free and clear of all liens, claims, charges and encumbrances;
and (v) Company shall use the net proceeds received hereunder for working
capital and general corporate purposes only; provided, however, Company
will not use such proceeds to pay fees payable (A) to any broker or finder
relating to the offer and sale of the Securities unless such broker, finder, or
other party is a registered investment adviser or registered broker-dealer and
such fees are paid in full compliance with all applicable laws and regulations,
or (B) to any other party relating to any financing transaction effected prior
to the date hereof. 

5.                 
Conditions to Company’s Obligation to Sell. The obligation of Company hereunder to issue and sell the
Securities to Investor at the Closing is subject to the satisfaction, at or
before the Closing Date, of each of the following conditions:

5.1.           
Investor shall have executed this Agreement and
delivered the same to Company.

5.2.           
Investor shall have delivered the Purchase Price
to Company in accordance with Section 1.2 above.

3

 
6.                 
Conditions to Investor’s Obligation to
Purchase. The obligation of Investor hereunder to
purchase the Securities at the Closing is subject to the satisfaction, at or
before the Closing Date, of each of the following conditions, provided that
these conditions are for Investor’s sole benefit and may be waived by Investor
at any time in its sole discretion:

6.1.           
Company shall have executed this Agreement and
delivered the same to Investor.

6.2.           
Company shall have delivered to Investor the
duly executed Note and Warrant in accordance with Section 1.2 above.

6.3.           
Company shall have delivered to Investor a fully
executed Irrevocable Letter of Instructions to Transfer Agent substantially in
the form attached hereto as Exhibit C acknowledged in writing by
Company’s transfer agent (the “Transfer Agent”).

6.4.           
Company shall have delivered to Investor a fully
executed Secretary’s Certificate substantially in the form attached hereto as Exhibit
D evidencing Company’s approval of the Transaction Documents.

6.5.           
Company shall have delivered to Investor a fully
executed Share Issuance Resolution substantially in the form attached hereto as
Exhibit E to be delivered to the Transfer Agent.

6.6.           
Company shall have delivered to Investor fully
executed copies of all other Transaction Documents required to be executed by
Company herein or therein.

7.                 
Reservation of Shares. At all times during which the Note is convertible or the Warrant
is exercisable, Company will reserve from its authorized and unissued Common
Stock to provide for the issuance of Common Stock upon the full conversion of
the Note and full exercise of the Warrant. Company will at all times reserve at
least (i) three (3) times the higher of (1) the Outstanding Balance (as defined
in and determined pursuant to the Note) divided by the Lender Conversion Price
(as defined in and determined pursuant to the Note), and (2) the Outstanding
Balance divided by the Market Price (as defined in and determined pursuant to
the Note), plus (ii) the number of Warrant Shares (as determined
pursuant to the Warrant) deliverable upon full exercise of the Warrant (the “Share
Reserve”), but in any event not less than 2,000,000 shares of Common Stock
shall be reserved at all times for such purpose (the “Transfer Agent Reserve”).
Company further agrees that it will cause the Transfer Agent to immediately add
shares of Common Stock to the Transfer Agent Reserve in increments of 500,000
shares as and when requested by Investor in writing from time to time, provided
that such incremental increases do not cause the Transfer Agent Reserve to
exceed the Share Reserve. In furtherance thereof, from and after the date
hereof and until such time that the Note has been paid in full and the Warrant
exercised in full, Company shall require the Transfer Agent to reserve for the
purpose of issuance of Conversion Shares under the Note and Warrant Shares
under the Warrant, a number of shares of Common Stock equal to the Transfer
Agent Reserve. Company shall further require the Transfer Agent to hold such
shares of Common Stock exclusively for the benefit of Investor and to issue
such shares to Investor promptly upon Investor’s delivery of a conversion
notice under the Note or a Notice of Exercise under the Warrant. Finally,
Company shall require the Transfer Agent to issue shares of Common Stock
pursuant to the Note and the Warrant to Investor out of its authorized and
unissued shares, and not the Transfer Agent Reserve, to the extent shares of
Common Stock have been authorized, but not issued, and are not included in the
Transfer Agent Reserve. The Transfer Agent shall only issue shares out of the
Transfer Agent Reserve to the extent there are no other authorized shares
available for issuance and then only with Investor’s written consent.

8.                 
Miscellaneous.
The provisions set forth in this Section 8 shall apply to this Agreement, as well as
all other Transaction Documents as if these terms were fully set forth therein.

4

 
8.1.           
Original Signature Pages. Each party agrees to deliver its original signature pages to the
Transaction Documents to the other party within five (5) Trading Days of the
date hereof. Notwithstanding the foregoing, the Transaction Documents shall be
fully effective upon exchange of electronic signature pages by the parties and
payment of the Purchase Price by Investor. For the avoidance of doubt, the
failure by either party to deliver its original signature pages to the other
party shall not affect in any way the validity or effectiveness of any of the
Transaction Documents, provided that such failure to deliver original
signatures shall be a breach of the party’s obligations hereunder.

8.2.           
Cross Default.
Any Event of Default (as defined in the Note) by Company under the Note shall
be deemed a default under this Agreement, and any default by Company under this
Agreement will be deemed an Event of Default under the Note.

8.3.           
Governing Law; Venue. This Agreement shall be governed by and interpreted in accordance
with the laws of the State of Utah for contracts to be wholly performed in such
state and without giving effect to the principles thereof regarding the
conflict of laws. Each party consents to and expressly agrees that exclusive
venue for Arbitration (as defined in Exhibit F) of any dispute arising
out of or relating to any Transaction Document or the relationship of the
parties or their affiliates shall be in Salt Lake County or Utah County, Utah).
Without modifying the parties obligations to resolve disputes hereunder
pursuant to the Arbitration Provisions (as defined below), for any litigation
arising in connection with any of the Transaction Documents, each party hereto
hereby (a) consents to and expressly submits to the exclusive personal
jurisdiction of any state or federal court sitting in Salt Lake County, Utah,
(b) expressly submits to the exclusive venue of any such court for the purposes
hereof, and (c) waives any claim of improper venue and any claim or objection
that such courts are an inconvenient forum or any other claim or objection to
the bringing of any such proceeding in such jurisdictions or to any claim that
such venue of the suit, action or proceeding is improper.

8.4.           
Arbitration of Claims. The parties shall submit all Claims (as defined in Exhibit F)
arising under this Agreement or any other Transaction Document or other
agreements between the parties and their affiliates to binding arbitration
pursuant to the arbitration provisions set forth in Exhibit F attached
hereto (the “Arbitration Provisions”). The parties hereby acknowledge
and agree that the Arbitration Provisions are unconditionally binding on the
parties hereto and are severable from all other provisions of this Agreement.
Any capitalized term not defined in the Arbitration Provisions shall have the
meaning set forth in this Agreement. By executing this Agreement, Company
represents, warrants and covenants that Company has reviewed the Arbitration
Provisions carefully, consulted with legal counsel about such provisions (or
waived its right to do so), understands that the Arbitration Provisions are
intended to allow for the expeditious and efficient resolution of any dispute
hereunder, agrees to the terms and limitations set forth in the Arbitration
Provisions, and that Company will not take a position contrary to the foregoing
representations. Company acknowledges and agrees that Investor may rely upon
the foregoing representations and covenants of Company regarding the
Arbitration Provisions.

8.5.           
Calculation Disputes. Notwithstanding the Arbitration Provisions, in the case of a
dispute as to any arithmetic calculation under the Transaction Documents,
including without limitation, calculating the Outstanding Balance, Warrant
Shares, Exercise Shares (as defined in the Warrant), Delivery Shares (as
defined in the Warrant), Lender Conversion Price, Lender Conversion Shares (as
defined in the Note), Installment Conversion Price (as defined in the Note),
Installment Conversion Shares (as defined in the Note), Market Price,
Conversion Shares, or the VWAP (as defined in the Note) (collectively, “Calculations”),
Company or Investor (as the case may be) shall submit the disputed
determinations or arithmetic calculations (as the case may be) via email or
facsimile with confirmation of receipt (a) within two (2) Trading Days after
receipt of the applicable notice giving rise to such dispute to Company or
Investor (as the case may be) or (b) if no notice gave rise to such dispute, at
any time after Investor learned of the circumstances giving rise to such
dispute. If Investor and Company are unable to agree upon such determination or
calculation within two (2) Trading Days of such disputed determination or
arithmetic calculation (as the case may be) being submitted to Company or
Investor (as the case may 

5

 
be), then Investor shall, within two (2) Trading
Days, submit via email or facsimile the disputed Calculation to Unkar Systems
Inc. (“Unkar Systems”). Company shall cause Unkar Systems to perform the
determinations or calculations (as the case may be) and notify Company and
Investor of the results no later than ten (10) Trading Days from the time it
receives such disputed determinations or calculations (as the case may be).
Unkar Systems’ determination of the disputed Calculation shall be binding upon
all parties absent demonstrable error. Unkar Systems’ fee for performing such
Calculation shall be paid by the incorrect party, or if both parties are
incorrect, by the party whose Calculation is furthest from the correct
Calculation as determined by Unkar Systems. In the event Company is the losing
party, no extension of the Delivery Date shall be granted and Company shall
incur all effects for failing to deliver the applicable shares in a timely
manner as set forth in the Transaction Documents. Notwithstanding the
foregoing, Investor may, in its sole discretion, designate an independent,
reputable investment bank or accounting firm other than Unkar Systems to
resolve any such dispute and in such event, all references to “Unkar Systems”
herein will be replaced with references to such independent, reputable
investment bank or accounting firm so designated by Investor.

8.6.           
Counterparts.
Each Transaction Document may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which together shall
constitute one instrument. The parties hereto confirm that any electronic copy
of another party’s executed counterpart of a Transaction Document (or such
party’s signature page thereof) will be deemed to be an executed original
thereof.

8.7.           
Headings. The
headings of this Agreement are for convenience of reference only and shall not
form part of, or affect the interpretation of, this Agreement.

8.8.           
Severability. In
the event that any provision of this Agreement is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be
deemed inoperative to the extent that it may conflict therewith and shall be
deemed modified to conform to such statute or rule of law. Any provision hereof
which may prove invalid or unenforceable under any law shall not affect the
validity or enforceability of any other provision hereof.

8.9.           
Entire Agreement; Amendments. This Agreement and the instruments and exhibits referenced herein
contain the entire understanding of the parties with respect to the matters
covered herein and therein and, except as specifically set forth herein or
therein, neither Company nor Investor makes any representation, warranty,
covenant or undertaking with respect to such matters. No provision of this
Agreement may be waived or amended other than by an instrument in writing
signed by the parties hereto.

8.10.       
Notices. Any
notice required or permitted hereunder shall be given in writing (unless
otherwise specified herein) and shall be deemed effectively given on the
earliest of: (a) the date delivered, if delivered by personal delivery as
against written receipt therefor or by email to an executive officer, or by
facsimile (with successful transmission confirmation), (b) the earlier of the
date delivered or the third Trading Day after deposit, postage prepaid, in the
United States Postal Service by certified mail, or (c) the earlier of the date
delivered or the third Trading Day after mailing by express courier, with
delivery costs and fees prepaid, in each case,
addressed to each of the other parties thereunto entitled at the following
addresses (or at such other addresses as such party may designate by five (5)
calendar days’ advance written notice similarly given to each of the other
parties hereto):

	 	If to Company:

	 	                        Homeland Resources Ltd.
                        Attn: President
                        3395 S. Jones Blvd. #169
                        Las Vegas, Nevada 89146

6

 

	
	Tel:  (702) 994-7056
                        Fax:  (702) 221-9341
                        Email: info@homelandresources.com

	 	                    With a copy to (which copy shall not constitute notice):

	 	                        O’Neill Law Corporation
                        Attn: Stephen F.X. O’Neill
                        Suite 704, 595 Howe Street
                        Vancouver, BC, Canada V6C2T5
                        Tel:  (604) 687-5792
                        Fax:  (604) 687-6650
                        Email: son@stockslaw.com

	 	If to Investor:

	 	Typenex Co-Investment, LLC
Attn: John Fife
303 East Wacker Drive, Suite 1040
Chicago, Illinois 60601

	 	With a copy to (which copy shall not constitute notice):

	 	Hansen Black Anderson Ashcraft PLLC
Attn: Jonathan K. Hansen|
3051 West Maple Loop, Suite 325
Lehi, Utah 84043

8.11.       
Successors and Assigns. This Agreement or any of the severable rights and obligations
inuring to the benefit of or to be performed by Investor hereunder may be
assigned by Investor to a third party, including its financing sources, in
whole or in part, without the need to obtain Company’s consent thereto. Company
may not assign its rights or obligations under this Agreement or delegate its
duties hereunder without the prior written consent of Investor.

8.12.       
Survival. The
representations and warranties of Company and the agreements and covenants set
forth in this Agreement shall survive the Closing hereunder notwithstanding any
due diligence investigation conducted by or on behalf of Investor. Company
agrees to indemnify and hold harmless Investor and all its officers, directors,
employees, attorneys, and agents for loss or damage arising as a result of or
related to any breach or alleged breach by Company of any of its
representations, warranties and covenants set forth in this Agreement or any of
its covenants and obligations under this Agreement, including advancement of
expenses as they are incurred.

8.13.       
Publicity.
Company and Investor shall have the right to review a reasonable period of time
before issuance of any press releases by the other party with respect to the
transactions contemplated hereby.

8.14.       
Further Assurances. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish
the purposes of this Agreement and the consummation of the transactions
contemplated hereby.

7

 
8.15.       
Investor’s Rights and Remedies Cumulative;
Liquidated Damages. All rights, remedies, and
powers conferred in this Agreement and the Transaction Documents are cumulative
and not exclusive of any other rights or remedies, and shall be in addition to
every other right, power, and remedy that Investor may have, whether
specifically granted in this Agreement or any other Transaction Document, or
existing at law, in equity, or by statute, and any and all such rights and
remedies may be exercised from time to time and as often and in such order as
Investor may deem expedient. The parties acknowledge and agree that upon
Company’s failure to comply with the provisions of the Transaction Documents,
Investor’s damages would be uncertain and difficult (if not impossible) to
accurately estimate because of the parties’ inability to predict future
interest rates and future share prices, Investor’s increased risk, and the
uncertainty of the availability of a suitable substitute investment opportunity
for Investor, among other reasons. Accordingly, any fees, charges, and default
interest due under the Note, the Warrant, and the other Transaction Documents
are intended by the parties to be, and shall be deemed, liquidated damages
(under Company’s and Investor’s expectations that any such liquidated damages
will tack back to the Closing Date for purposes of determining the holding
period under Rule 144). The parties agree that such liquidated damages are a
reasonable estimate of Investor’s actual damages and not a penalty, and shall
not be deemed in any way to limit any other right or remedy Investor may have
hereunder, at law or in equity. The parties acknowledge and agree that under
the circumstances existing at the time this Agreement is entered into, such
liquidated damages are fair and reasonable and are not penalties. All fees,
charges, and default interest provided for in the Transaction Documents are
agreed to by the parties to be based upon the obligations and the risks assumed
by the parties as of the Closing Date and are consistent with investments of
this type. The liquidated damages provisions of the Transaction Documents shall
not limit or preclude a party from pursuing any other remedy available at law
or in equity; provided, however, that the liquidated damages provided
for in the Transaction Documents are intended to be in lieu of actual damages.

8.16.       
Ownership Limitation. Notwithstanding anything to the contrary contained in this
Agreement or the other Transaction Documents, if at any time Investor shall or
would be issued shares of Common Stock under any of the Transaction Documents,
but such issuance would cause Investor (together with its affiliates) to
beneficially own a number of shares exceeding the Maximum Percentage (as
defined in the Note), then Company must not issue to Investor the shares that
would cause Investor to exceed the Maximum Percentage. The shares of Common
Stock issuable to Investor that would cause the Maximum Percentage to be
exceeded are referred to herein as the “Ownership Limitation Shares”.
Company will reserve the Ownership Limitation Shares for the exclusive benefit
of Investor. From time to time, Investor may notify Company in writing of the
number of the Ownership Limitation Shares that may be issued to Investor
without causing Investor to exceed the Maximum Percentage. Upon receipt of such
notice, Company shall be unconditionally obligated to immediately issue such
designated shares to Investor, with a corresponding reduction in the number of
the Ownership Limitation Shares. For purposes of this Section, beneficial
ownership of Common Stock will be determined under Section 13(d) of the 1934
Act.

8.17.       
Attorneys’ Fees and Cost of Collection. In the event of any arbitration or action at law or in equity to
enforce or interpret the terms of this Agreement or any of the other
Transaction Documents, the parties agree that the party who is awarded the most
money shall be deemed the prevailing party for all purposes and shall therefore
be entitled to an additional award of the full amount of the attorneys’ fees,
deposition costs, and expenses paid by such prevailing party in connection with
arbitration or litigation without reduction or apportionment based upon the
individual claims or defenses giving rise to the fees and expenses. Nothing
herein shall restrict or impair an arbitrator’s or a court’s power to award
fees and expenses for frivolous or bad faith pleading. If (a) the Note or
Warrant is placed in the hands of an attorney for collection or enforcement prior to commencing arbitration or legal proceedings,
or is collected or enforced through any arbitration or legal proceeding, or
Investor otherwise takes action to collect amounts due under the Note or to
enforce the provisions of the Note or the Warrant; or (b) there occurs any
bankruptcy, reorganization, receivership of Company or other proceedings
affecting Company’s creditors’ rights and involving a claim under the Note or
the Warrant; 

8

 
then Company shall pay the costs incurred by Investor for such
collection, enforcement or action or in connection with such bankruptcy,
reorganization, receivership or other proceeding, including, without
limitation, attorneys’ fees, expenses, deposition costs, and disbursements.

8.18.       
Waiver. No waiver
of any provision of this Agreement shall be effective unless it is in the form
of a writing signed by the party granting the waiver. No waiver of any
provision or consent to any prohibited action shall constitute a waiver of any
other provision or consent to any other prohibited action, whether or not
similar. No waiver or consent shall constitute a continuing waiver or consent
or commit a party to provide a waiver or consent in the future except to the
extent specifically set forth in writing.

8.19.       
Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT IRREVOCABLY
WAIVES ANY AND ALL RIGHTS SUCH PARTY MAY HAVE TO DEMAND THAT ANY ACTION,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY RELATED TO THIS
AGREEMENT OR THE RELATIONSHIPS OF THE PARTIES HERETO BE TRIED BY JURY. THIS
WAIVER EXTENDS TO ANY AND ALL RIGHTS TO DEMAND A TRIAL BY JURY ARISING UNDER
COMMON LAW OR ANY APPLICABLE STATUTE, LAW, RULE OR REGULATION. FURTHER, EACH
PARTY HERETO ACKNOWLEDGES THAT SUCH PARTY IS KNOWINGLY AND VOLUNTARILY WAIVING
SUCH PARTY’S RIGHT TO DEMAND TRIAL BY JURY.

8.20.       
Time of the Essence. Time is expressly made of the essence with respect to each and every
provision of this Agreement and the other Transaction Documents.

[Remainder of page intentionally left
blank; signature page follows]

9

 
IN WITNESS WHEREOF, the undersigned Investor
and Company have caused this Agreement to be duly executed as of the date first
above written.

SUBSCRIPTION
AMOUNT:

	Principal
Amount of Note:	$70,000.00
	 	 
	Purchase Price:  	 $60,000.00

	 	
INVESTOR:

      TYPENEX CO-INVESTMENT,
      LLC

      By: Red Cliffs Investments, Inc., its Manager

                    /s/ John M. Fife

              By:                                                                         

                  John M. Fife, President

      COMPANY:

      HOMELAND RESOURCES LTD.

              /s/ David St. James

        By:                                                                               

        Printed Name: David
      St. James                                    

      Title:    Treasurer & Secretary                                      

    

ATTACHED
EXHIBITS:

	Exhibit A

	Note

	Exhibit B

	Warrant

	Exhibit C

	Irrevocable Transfer Agent Instructions

	Exhibit D

	Secretary’s Certificate

	Exhibit E

	Share Issuance Resolution

	Exhibit F

	Arbitration Provisions

[Signature Page to Securities Purchase Agreement]

 
Exhibit A

Note

CONVERTIBLE PROMISSORY NOTE 

	Effective Date: January 22, 2015	U.S.
      $70,000.00

FOR VALUE RECEIVED, Homeland Resources Ltd., a Nevada corporation (“Borrower”),
  promises to pay to Typenex Co-Investment,
  LLC, a Utah limited liability company, or its successors or assigns (“Lender”),
  $70,000.00 and any interest, fees, charges, and late fees on the date that is ten (10) months after the Purchase Price Date (as defined below) (the “Maturity
    Date”) in accordance with the terms set forth
  herein and to pay interest on the Outstanding Balance
  (as defined below) at the rate of ten percent (10%) per annum from the Purchase Price Date until the same is paid in
  full. This Convertible Promissory Note (this “Note”)
  is issued and made effective as of January 22, 2015 (the “Effective Date”).
  For purposes hereof, the “Outstanding Balance” of this Note means, as of
  any date of determination, the Purchase Price (as defined below), as reduced or
  increased, as the case may be, pursuant to the terms hereof for redemption,
  conversion, offset, or otherwise, plus any original issue discount (“OID”),
  the Transaction Expense Amount (as defined below), accrued but unpaid interest,
  collection and enforcements costs (including attorneys’ fees) incurred by
  Lender, transfer, stamp, issuance and similar taxes and fees related to
  Conversions (as defined below), and any other fees or charges (including
  without limitation late charges) incurred under this Note. This Note is issued
  pursuant to that certain Securities Purchase Agreement dated January 22, 2015,
  as the same may be amended from time to time (the “Purchase Agreement”),
  by and between Borrower and Lender. All interest calculations hereunder shall
  be computed on the basis of a 360-day year comprised of twelve (12) thirty
  (30) day months, shall compound daily and shall be payable in accordance
  with the terms of this Note. Certain capitalized terms used herein but not
  otherwise defined shall have the meaning ascribed thereto in the Purchase
  Agreement. Certain other capitalized terms used herein are defined in Attachment
    1 attached hereto and incorporated herein by this reference.

This Note carries an OID of $6,000.00. In addition, Borrower agrees to pay $4,000.00 to
  Lender to cover Lender’s legal fees, accounting costs, due diligence,
  monitoring and other transaction costs incurred in connection with the purchase
  and sale of this Note (the “Transaction Expense Amount”), all of which
  amount is included in the initial principal balance of this Note. The purchase
  price for this Note and the Warrant (as defined in the Purchase Agreement)
  shall be $60,000.00 (the “Purchase Price”), computed as follows:
  $70,000.00 original principal balance, less the OID, less the Transaction
  Expense Amount. The Purchase Price shall be payable by Lender by wire transfer
  of immediately available funds. For purposes hereof, the term “Purchase
    Price Date” means the date the Purchase Price is delivered by Lender to
  Borrower 

1.                  Payment; Prepayment. Provided there is an Outstanding Balance, on each Installment Date
  (as defined below), Borrower shall pay to Lender an amount equal to the
  Installment Amount (as defined below) due on such Installment Date in
  accordance with Section 8. All payments
  owing hereunder shall be in lawful money of the United States of America or
  Conversion Shares (as defined below), as provided for herein, and delivered to
  Lender at the address furnished to Borrower for that purpose. All payments
  shall be applied first to (a) costs of collection, if any, then to (b) fees and
  charges, if any, then to (c) accrued and unpaid interest, and thereafter, to
  (d) principal. Notwithstanding the foregoing, so long as Borrower has not
  received a Lender Conversion Notice (as defined below) or an Installment Notice
  (as defined below) from Lender where the applicable Conversion Shares have not
  yet been delivered and so long as no Event of Default has occurred since the
  Effective Date (whether declared by Lender or undeclared), then Borrower shall
  have the right, exercisable on not less than five (5) Trading Days prior
  written notice to Lender to prepay the Outstanding Balance of this Note, in
  full, in accordance with this Section 1. Any notice of prepayment hereunder (an “Optional
    Prepayment Notice”) shall be delivered to Lender at its registered address
  and shall state: (y) that Borrower is exercising its right to prepay this Note,
  and (z) the date of prepayment, which shall be not less than five (5) Trading
  Days from the date of the Optional Prepayment Notice. On the date fixed for
  prepayment (the “Optional Prepayment Date”), Borrower shall make payment
  of the Optional Prepayment Amount (as 

defined below) to or upon the order of
  Lender as may be specified by Lender in writing to Borrower. If Borrower
  exercises its right to prepay this Note, Borrower shall make payment to Lender
  of an amount in cash (the “Optional Prepayment Amount”) equal to 125%
  multiplied by the then Outstanding Balance of this Note. In the event Borrower
  delivers the Optional Prepayment Amount to Lender prior to the Optional
  Prepayment Date or without delivering an Optional Prepayment Notice to Lender
  as set forth herein without Lender’s prior written consent, the Optional
  Prepayment Amount shall not be deemed to have been paid to Lender until the
  Optional Prepayment Date. Moreover, in such event the Optional Prepayment
  Liquidated Damages Amount will automatically be added to the Outstanding
  Balance of this Note on the day Borrower delivers the Optional Prepayment
  Amount to Lender. In the event Borrower delivers the Optional Prepayment Amount
  without an Optional Prepayment Notice, then the Optional Prepayment Date will
  be deemed to be the date that is five (5) Trading Days from the date that the
  Optional Prepayment Amount was delivered to Lender. In addition, if Borrower
  delivers an Optional Prepayment Notice and fails to pay the Optional Prepayment
  Amount due to Lender within two (2) Trading Days following the Optional
  Prepayment Date, Borrower shall forever forfeit its right to prepay this Note. 

2.                  Security. This Note is unsecured.

3.                  Lender Optional Conversion.

3.1.            Lender Conversion Price. Subject to adjustment as set forth in this Note, the conversion
  price for each Lender Conversion (as defined below) shall be $0.30 (the “Lender
    Conversion Price”). However, in the event the Market Capitalization of the
  Common Stock falls below $1,600,000.00 at any time, then in such event (i) the
  Lender Conversion Price for all Lender Conversions occurring after the date of
  such occurrence shall equal the lower of the Lender Conversion Price applicable
  to any Lender Conversion and the Market Price as of any applicable date of
  Conversion, and (ii) the true-up provisions of Section 11 below shall apply to all Lender
  Conversions that occur after the first date the Market Capitalization of the
  Common Stock falls below $1,600,000.00, provided that all references to the
  “Installment Notice” in Section 11 shall be replaced with references to a
  “Lender Conversion Notice” for purposes of this Section 3.1, all references to “Installment
  Conversion Shares” in Section 11 shall be replaced with references to “Lender Conversion Shares” for
  purposes of this Section 3.1,
  and all references to the “Installment Conversion Price” in Section 11 shall be replaced with references to the
  “Lender Conversion Price” for purposes of this Section 3.1.

3.2.            Lender Conversions. Lender has the right at any time after the Purchase Price Date
  until the Outstanding Balance has been paid in full, including without
  limitation (i) until any Optional Prepayment Date (even if Lender has received
  an Optional Prepayment Notice) or at any time thereafter with respect to any
  amount that is not prepaid, and (ii) during or after any Fundamental Default
  Measuring Period, at its election, to convert (each instance of conversion is
  referred to herein as a “Lender Conversion”) all or any part of the
  Outstanding Balance into shares (“Lender Conversion Shares”) of fully
  paid and non-assessable common stock, $0.0001 par value per share (“Common
    Stock”), of Borrower as per the following conversion formula: the number of
  Lender Conversion Shares equals the amount being converted (the “Conversion
    Amount”) divided by the Lender Conversion Price. Conversion notices in the
  form attached hereto as Exhibit A (each, a “Lender Conversion Notice”)
  may be effectively delivered to Borrower by any method of Lender’s choice
  (including but not limited to facsimile, email, mail, overnight courier, or
  personal delivery), and all Lender Conversions shall be cashless and not
  require further payment from Lender. Borrower shall deliver the Lender
  Conversion Shares from any Lender Conversion to Lender in accordance with
  Section 9 below within
  three (3) Trading Days of Lender’s delivery of the Lender Conversion Notice to
  Borrower. 

3.3.            Application to Installments. Notwithstanding anything to the contrary herein, including without
  limitation Section 8
  hereof, Lender may, in its sole discretion, apply all or any portion of any
  Lender Conversion toward any Installment Conversion (as defined below), even if
  such 

2

Installment Conversion is pending, as determined in Lender’s sole
  discretion, by delivering written notice of such election (which notice may be
  included as part of the applicable Lender Conversion Notice) to Borrower at any
  date on or prior to the applicable Installment Date. In such event, Borrower
  may not elect to allocate such portion of the Installment Amount being paid
  pursuant to this Section 3.3 in
  the manner prescribed in Section 8.3; rather, Borrower must reduce the
  applicable Installment Amount by the Conversion Amount described in this
  Section 3.3. 

4.                  Defaults and Remedies.

4.1.            Defaults. The
  following are events of default under this Note (each, an “Event of Default”):
  (i) Borrower shall fail to pay any principal, interest, fees, charges, or any
  other amount when due and payable hereunder; or (ii) Borrower shall fail to
  deliver any Lender Conversion Shares in accordance with the terms hereof; or
  (iii) Borrower shall fail to deliver any Installment Conversion Shares (as
  defined below) or True-Up Shares (as defined below) in accordance with the
  terms hereof; or (iv) a receiver, trustee or other similar official shall be
  appointed over Borrower or a material part of its assets and such appointment
  shall remain uncontested for twenty (20) days or shall not be dismissed or
  discharged within sixty (60) days; or (v) Borrower shall become insolvent or
  generally fails to pay, or admits in writing its inability to pay, its debts as
  they become due, subject to applicable grace periods, if any; or (vi) Borrower
  shall make a general assignment for the benefit of creditors; or (vii) Borrower
  shall file a petition for relief under any bankruptcy, insolvency or similar
  law (domestic or foreign); or (viii) an involuntary proceeding shall be
  commenced or filed against Borrower; or (ix) Borrower shall default or
  otherwise fail to observe or perform any covenant, obligation, condition or
  agreement of Borrower contained herein or in any other Transaction Document,
  other than those specifically set forth in this Section 4.1; or (x) Borrower shall become delinquent
  in its filing requirements as a fully-reporting issuer registered with the SEC
  or shall fail to timely file all required quarterly and annual reports and any
  other filings that are necessary to enable Lender to sell Conversion Shares or
  True-Up Shares pursuant to Rule 144; or (xi) any representation, warranty or
  other statement made or furnished by or on behalf of Borrower to Lender herein,
  in any Transaction Document, or otherwise in connection with the issuance of
  this Note shall be false, incorrect, incomplete or misleading in any material
  respect when made or furnished; or (xii) the occurrence of a Fundamental
  Transaction without Lender’s prior written consent; or (xiii) Borrower shall
  fail to maintain the Share Reserve as required under the Purchase Agreement; or
  (xiv) Borrower effectuates a reverse split of its Common Stock without twenty (20)
  Trading Days prior written notice to Lender; or (xv) any money judgment, writ
  or similar process shall be entered or filed against Borrower or any subsidiary
  of Borrower or any of its property or other assets for more than $100,000, and
  shall remain unvacated, unbonded or unstayed for a period of twenty (20)
  calendar days unless otherwise consented to by Lender; or (xvi) Borrower shall
  fail to deliver to Lender original signature pages to all Transaction Documents
  within five (5) Trading Days of the Purchase Price Date; or (xvii) Borrower
  shall fail to be DWAC Eligible.

4.2.            Remedies. Upon
  the occurrence of any Event of Default, Borrower shall within one (1) Trading
  Day deliver written notice thereof via facsimile, email or reputable overnight
  courier (with next day delivery specified) (an “Event of Default Notice”)
  to Lender. At any time and from time to time after the earlier of Lender’s
  receipt of an Event of Default Notice and Lender becoming aware of the
  occurrence of any Event of Default, Lender may accelerate this Note by written
  notice to Borrower, with the Outstanding Balance becoming immediately due and
  payable in cash at the Mandatory Default Amount (as defined hereafter).
  Notwithstanding the foregoing, at any time following the occurrence of any Event
  of Default, Lender may, at its option, elect to increase the Outstanding
  Balance by applying the Default Effect (as defined below) (subject to the
  limitation set forth below) via written notice to Borrower without accelerating
  the Outstanding Balance, in which event the Outstanding Balance shall be
  increased as of the date of the occurrence of the applicable Event of Default
  pursuant to the Default Effect, but the Outstanding Balance shall not be
  immediately due and payable unless so declared by Lender (for the avoidance of
  doubt, if Lender elects to apply the Default Effect pursuant to this sentence,
  it shall reserve the right to declare the Outstanding Balance immediately due
  and payable at any time and no such 

3

election by Lender shall be deemed to be a
  waiver of its right to declare the Outstanding Balance immediately due and
  payable as set forth herein unless otherwise agreed to by Lender in writing).
  For purposes hereof, the “Default Effect” is calculated by multiplying
  the Outstanding Balance as of the date the applicable Event of Default occurred
  by (i) 15% for each occurrence of any Major Default, or (ii) 5% for each
  occurrence of any Minor Default, and then adding the resulting product to the
  Outstanding Balance as of the date the applicable Event of Default occurred,
  with the sum of the foregoing then becoming the Outstanding Balance under this
  Note as of the date the applicable Event of Default occurred; provided that the
  Default Effect may only be applied three (3) times hereunder with respect to Major
  Defaults and three (3) times hereunder with respect to Minor Defaults; and
  provided further that the Default Effect shall not apply to any Event of
  Default pursuant to Section 4.1(ii) hereof. Notwithstanding the
  foregoing, upon the occurrence of any Event of Default described in clauses
  (iv), (v), (vi), (vii) or (viii) of Section 4.1, the Outstanding Balance as of the date
  of acceleration shall become immediately and automatically due and payable in
  cash at the Mandatory Default Amount, without any written notice required by
  Lender. The “Mandatory Default Amount” means the greater of (i) the
  Outstanding Balance divided by the Installment Conversion Price (as defined
  below) on the date the Mandatory Default Amount is demanded, multiplied by the
  volume weighted average price (the “VWAP”) on the date the Mandatory
  Default Amount is demanded, or (ii) the Outstanding Balance following the
  application of the Default Effect. At any time following the occurrence of any
  Event of Default, upon written notice given by Lender to Borrower, interest
  shall accrue on the Outstanding Balance beginning on the date the applicable
  Event of Default occurred at an interest rate equal to the lesser of 22% per
  annum or the maximum rate permitted under applicable law (“Default Interest”); provided, however, that no Default Interest shall accrue during the
  Fundamental Default Measuring Period (as defined below). Additionally,
  following the occurrence of any Event of Default, Borrower may, at its option,
  pay any Lender Conversion in cash instead of Lender Conversion Shares by paying
  to Lender on or before the applicable Delivery Date (as defined below) a cash
  amount equal to the number of Lender Conversion Shares set forth in the
  applicable Lender Conversion Notice multiplied by the highest intra-day trading
  price of the Common Stock that occurs during the period beginning on the date
  the applicable Event of Default occurred and ending on the date of the
  applicable Lender Conversion Notice. In connection with acceleration described
  herein, Lender need not provide, and Borrower hereby waives, any presentment,
  demand, protest or other notice of any kind, and Lender may immediately and
  without expiration of any grace period enforce any and all of its rights and
  remedies hereunder and all other remedies available to it under applicable law.
  Such acceleration may be rescinded and annulled by Lender at any time prior to
  payment hereunder and Lender shall have all rights as a holder of the Note
  until such time, if any, as Lender receives full payment pursuant to this
  Section 4.2. No such rescission
  or annulment shall affect any subsequent Event of Default or impair any right
  consequent thereon. Nothing herein shall limit Lender’s right to pursue any
  other remedies available to it at law or in equity including, without
  limitation, a decree of specific performance and/or injunctive relief with
  respect to Borrower’s failure to timely deliver Conversion Shares upon
  Conversion of the Notes as required pursuant to the terms hereof.

4.3.            Fundamental Default Remedies. Notwithstanding anything to the contrary herein, in addition to
  all other remedies set forth herein, the Fundamental Liquidated Damages Amount
  shall be added to the Outstanding Balance upon Lender’s delivery to Borrower of
  a notice (which notice Lender may deliver to Borrower at any time following the
  occurrence of a Fundamental Default) setting forth its election to declare a
  Fundamental Default and the Fundamental Liquidated Damages Amount that will be
  added to the Outstanding Balance.

4.4.            Certain Additional Rights. Notwithstanding anything to the contrary herein, in the event
  Borrower fails to make any payment or otherwise to deliver any Conversion
  Shares as and when required under this Note, then (i) the Lender Conversion
  Price for all Lender Conversions occurring after the date of such failure to
  pay shall equal the lower of the Lender Conversion Price applicable to any
  Lender Conversion and the Market Price as of any applicable date of Conversion,
  and (ii) the true-up provisions of Section 11 below shall apply to all Lender
  Conversions that occur after the date of such

4

failure to pay, provided that all
  references to the “Installment Notice” in Section 11 shall be replaced with references to a
  “Lender Conversion Notice” for purposes of this Section 4.4, all references to “Installment
  Conversion Shares” in Section 11 shall be replaced with references to “Lender Conversion Shares” for
  purposes of this Section 4.4,
  and all references to the “Installment Conversion Price” in Section 11 shall be replaced with references to the
  “Lender Conversion Price” for purposes of this Section 4.4.

4.5.            Cross Default. A
  breach or default by Borrower of any covenant or other term or condition
  contained in any Other Agreements (as defined below) shall, at the option of
  Lender, be considered an Event of Default under this Note, in which event
  Lender shall be entitled (but in no event required) to apply all rights and
  remedies of Lender under the terms of this Note. “Other Agreements”
  means, collectively, (a) all existing and future agreements and instruments
  between, among or by Borrower (or an affiliate), on the one hand, and Lender
  (or an affiliate), on the other hand, and (b) any financing agreement or a
  material agreement that affects Borrower’s ongoing business operations. For the
  avoidance of doubt, all existing and future loan transactions between Borrower
  and Lender and their respective affiliates will be cross-defaulted with each
  other loan transaction and with all other existing and future debt of Borrower
  to Lender.

5.                  Unconditional Obligation; No Offset. Borrower acknowledges that this Note is an unconditional, valid,
  binding and enforceable obligation of Borrower not subject to offset, deduction
  or counterclaim of any kind. Borrower hereby waives any rights of offset it now
  has or may have hereafter against Lender, its successors and assigns, and
  agrees to make the payments or Conversions called for herein in accordance with
  the terms of this Note.

6.                  Waiver. No waiver
  of any provision of this Note shall be effective unless it is in the form of a
  writing signed by the party granting the waiver. No waiver of any provision or
  consent to any prohibited action shall constitute a waiver of any other
  provision or consent to any other prohibited action, whether or not similar. No
  waiver or consent shall constitute a continuing waiver or consent or commit a
  party to provide a waiver or consent in the future except to the extent
  specifically set forth in writing. 

7.                  Rights Upon Issuance of Securities. 

7.1.            Subsequent Equity Sales. Except with respect to Excluded
  Securities, if Borrower or any subsidiary thereof, as applicable, at any time
  this Note is outstanding, shall sell or issue any Common Stock to Lender or any
  third party for a price that is less than the then effective Lender Conversion
  Price, then such Lender Conversion Price shall be automatically reduced and
  only reduced to equal such lower issuance price. Except with respect to
  Excluded Securities, if Borrower or any subsidiary thereof, as applicable, at
  any time this Note is outstanding, shall sell or grant any option to any party
  to purchase, or sell or grant any right to reprice, or issue any Common Stock,
  preferred shares convertible into Common Stock, or debt, warrants, options or
  other instruments or securities to Lender or any third party which are
  convertible into or exercisable for shares of Common Stock (together herein
  referred to as “Equity Securities”), including without limitation any
  Deemed Issuance (as defined herein), at an effective price per share less than
  the then effective Lender Conversion Price (such issuance, together with any
  sale of Common Stock, is referred to herein as a “Dilutive Issuance”),
  then, the Lender Conversion Price shall be automatically reduced and only
  reduced to equal such lower effective price per share. If the holder of any
  Equity Securities so issued shall at any time, whether by operation of purchase
  price adjustments, reset provisions, floating conversion, exercise or exchange
  prices or otherwise, or due to warrants, options, or rights per share which are
  issued in connection with such Dilutive Issuance, be entitled to receive shares
  of Common Stock at an effective price per share that is less than the Lender
  Conversion Price, such issuance shall be deemed to have occurred for less than
  the Lender Conversion Price on the date of such Dilutive Issuance, and the then
  effective Lender Conversion Price shall be reduced and only reduced to equal
  such lower effective price per share. Such adjustments described above to the
  Lender Conversion Price shall be permanent (subject to additional adjustments

5

under this section), and shall be made whenever such Common Stock or Equity
  Securities are issued. Borrower shall notify Lender, in writing, no later than
  the Trading Day following the issuance of any Common Stock or Equity Securities
  subject to this Section 7.1,
  indicating therein the applicable issuance price, or applicable reset price,
  exchange price, conversion price, or other pricing terms (such notice, the “Dilutive Issuance Notice”). For purposes of clarification, whether or not
  Borrower provides a Dilutive Issuance Notice pursuant to this Section 7.1, upon the occurrence of any Dilutive
  Issuance, on the date of such Dilutive Issuance the Lender Conversion Price
  shall be lowered to equal the applicable effective price per share regardless
  of whether Borrower or Lender accurately refers to such lower effective price
  per share in any Installment Notice or Lender Conversion Notice.

7.2.            Adjustment of Lender Conversion Price upon
  Subdivision or Combination of Common Stock. Without
  limiting any provision hereof, if Borrower at any time on or after the
  Effective Date subdivides (by any stock split, stock dividend, recapitalization
  or otherwise) one or more classes of its outstanding shares of Common Stock
  into a greater number of shares, the Lender Conversion Price in effect
  immediately prior to such subdivision will be proportionately reduced. Without
  limiting any provision hereof, if Borrower at any time on or after the
  Effective Date combines (by combination, reverse stock split or otherwise) one
  or more classes of its outstanding shares of Common Stock into a smaller number
  of shares, the Lender Conversion Price in effect immediately prior to such
  combination will be proportionately increased. Any adjustment pursuant to this
  Section 7.2 shall become
  effective immediately after the effective date of such subdivision or
  combination. If any event requiring an adjustment under this Section 7.2 occurs during the period that a Lender
  Conversion Price is calculated hereunder, then the calculation of such Lender
  Conversion Price shall be adjusted appropriately to reflect such event.

7.3.            Other Events. In the event that Borrower (or any subsidiary)
  shall take any action to which the provisions hereof are not strictly
  applicable, or, if applicable, would not operate to protect Lender from dilution or if any event occurs of the
  type contemplated by the provisions of this Section 7 but
  not expressly provided for by such provisions (including, without limitation,
  the granting of stock appreciation rights, phantom stock rights or other rights
  with equity features), then Borrower’s board of directors shall in good faith
  determine and implement an appropriate adjustment in the Lender Conversion
  Price so as to protect the rights of Lender, provided that no such adjustment
  pursuant to this Section 7.3
  will increase the Lender Conversion Price as otherwise determined pursuant to
  this Section 7,
  provided further that if Lender does not accept such adjustments as
  appropriately protecting its interests hereunder against such dilution, then
  Borrower’s board of directors and Lender shall agree, in good faith, upon an
  independent investment bank of nationally recognized standing to make such
  appropriate adjustments, whose determination shall be final and binding and
  whose fees and expenses shall be borne by Borrower.

8.                  Borrower Installments.

8.1.            Installment Conversion Price. Subject to the adjustments set forth herein, the conversion price
  for each Installment Conversion (the “Installment Conversion Price”)
  shall be the lesser of (i) the Lender Conversion Price, and (ii) the Market
  Price.   

8.2.            Installment Conversions. Beginning on the date that is six (6) months after the Purchase
  Price Date and on the same day of each month thereafter until the Maturity Date
  (each, an “Installment Date”), Borrower shall pay to Lender the
  applicable Installment Amount due on such date, subject to the provisions of
  this Section 8. Payments of
  each Installment Amount may be made (a) in cash, or (b) by converting such
  Installment Amount into shares of Common Stock (“Installment Conversion
    Shares”, and together with the Lender Conversion Shares, the “Conversion
      Shares”) in accordance with this Section 8 (each an “Installment Conversion”,
  and together with Lender Conversions, a “Conversion”) per the following
  formula: the number of Installment Conversion Shares equals the portion of the
  applicable Installment Amount being converted divided by the Installment
  Conversion Price, or (c) by any combination of the foregoing, so long as the
  cash is delivered to Lender 

6

on the applicable Installment Date and the
  Installment Conversion Shares are delivered to Lender on or before the
  applicable Delivery Date. Notwithstanding the foregoing, Borrower will not be
  entitled to elect an Installment Conversion with respect to any portion of any
  applicable Installment Amount and shall be required to pay the entire amount of
  such Installment Amount in cash if on the applicable Installment Notice Due
  Date (defined below) there is an Equity Conditions Failure, and such failure is
  not waived in writing by Lender. Moreover, in the event Borrower desires to pay
  all or any portion of any Installment Amount in cash, it must notify Lender in
  writing of such election and the portion of the applicable Installment Amount
  it elects to pay in cash not more than twenty-five (25) or less than fifteen
  (15) Trading Days prior to the applicable Installment Date. If Borrower fails
  to so notify Lender, it shall not be permitted to elect to pay any portion of
  such Installment Amount in cash unless otherwise agreed to by Lender in writing
  or proposed by Lender in an Installment Notice delivered by Lender to Borrower. Notwithstanding that failure to repay this Note in full by the
  Maturity Date is an Event of Default, the Installment Dates shall continue
  after the Maturity Date pursuant to this Section 8 until the Outstanding Balance is repaid in
  full, provided that Lender shall, in Lender’s sole discretion, determine the
  Installment Amount for each Installment Date after the Maturity Date.

8.3.            Allocation of Installment Amounts. Subject to Section 8.2 regarding an Equity Conditions Failure,
  for each Installment Date (each, an “Installment Notice Due Date”),
  Borrower may elect to allocate the amount of the applicable Installment Amount
  between cash and via an Installment Conversion, by email or fax delivery of a
  notice to Lender substantially in the form attached hereto as Exhibit B (each, an “Installment Notice”), provided, that to be effective, each
  applicable Installment Notice must be received by Lender not more than
  twenty-five (25) or less than fifteen (15) Trading Days prior to the applicable
  Installment Notice Due Date. If Lender has not received an Installment Notice
  within such time period, then Lender may prepare the Installment Notice and
  deliver the same to Borrower by fax or email. Following its receipt of such
  Installment Notice, Borrower may either ratify Lender’s proposed allocation in
  the applicable Installment Notice or elect to change the allocation by written
  notice to Lender by email or fax on or before 12:00 p.m. New York time on the
  applicable Installment Date, so long as the sum of the cash payments and the
  amount of Installment Conversions equal the applicable Installment Amount,
  provided that Lender must approve any increase to the portion of the
  Installment Amount payable in cash. If Borrower fails to notify Lender of its
  election to change the allocation prior to the deadline set forth in the
  previous sentence (and seek approval to increase the amount payable in cash),
  it shall be deemed to have ratified and accepted the allocation set forth in the
  applicable Installment Notice prepared by Lender. If neither Borrower nor
  Lender prepare and deliver to the other party an Installment Notice as outlined
  above, then Borrower shall be deemed to have elected that the entire
  Installment Amount be converted via an Installment Conversion. Borrower acknowledges and agrees that regardless of which party
  prepares the applicable Installment Notice, the amounts and calculations set
  forth thereon are subject to correction or adjustment because of error,
  mistake, or any adjustment resulting from an Event of Default or other
  adjustment permitted under the Transaction Documents (an “Adjustment”).
  Furthermore, no error or mistake in the preparation of
  such notices, or failure to apply any Adjustment that could have been applied
  prior to the preparation of an Installment Notice may be deemed a waiver of
  Lender’s right to enforce the terms of any Note, even if such error, mistake,
  or failure to include an Adjustment arises from Lender’s own calculation.
  Borrower shall deliver the Installment Conversion Shares from any Installment
  Conversion to Lender in accordance with Section 9 below on or before each applicable Delivery Date.

9.                  Method of Conversion Share Delivery. On or before the close of business on the third (3rd)
  Trading Day following the Installment Date or the third (3rd)
  Trading Day following the date of delivery of a Lender Conversion Notice, as
  applicable (the “Delivery Date”), Borrower shall, provided it is DWAC
  Eligible at such time, deliver or cause its transfer agent to deliver the
  applicable Conversion Shares electronically via DWAC to the account designated
  by Lender in the applicable Lender Conversion Notice or Installment Notice. If
  Borrower is not DWAC Eligible, it shall deliver to Lender or its broker (as
  designated in the Lender Conversion Notice or Installment Notice, as
  applicable), via reputable overnight courier, a certificate representing the
  number of shares of Common Stock equal to the 

7

number of Conversion Shares to
  which Lender shall be entitled, registered in the name of Lender or its
  designee. For the avoidance of doubt, Borrower has not met its obligation to
  deliver Conversion Shares by the Delivery Date unless Lender or its broker, as
  applicable, has actually received the certificate representing the applicable
  Conversion Shares no later than the close of business on the relevant Delivery
  Date pursuant to the terms set forth above.

10.              Conversion Delays.
  If Borrower fails to deliver Conversion Shares or True-Up Shares in accordance
  with the timeframes stated in Sections 3, 8, 9, or 11, as applicable, Lender, at any time prior
  to selling all of those Conversion Shares or True-Up Shares, as applicable, may
  rescind in whole or in part that particular Conversion attributable to the
  unsold Conversion Shares or True-Up Shares, with a corresponding increase to
  the Outstanding Balance (any returned Conversion Amount will tack back to the
  Purchase Price Date for purposes of determining the holding period under Rule
  144). In addition, for each Lender Conversion, in the event that Lender
  Conversion Shares are not delivered by the fourth Trading Day (inclusive of the
  day of the Lender Conversion), a late fee equal to the greater of (a) $500.00
  per day and (b) 2% of the applicable Lender Conversion Share Value rounded to
  the nearest multiple of $100.00 (but in any event the cumulative amount of such
  late fees for each Lender Conversion shall not exceed 200% of the applicable
  Lender Conversion Share Value) will be assessed for each day after the third
  Trading Day (inclusive of the day of the Lender Conversion) until Lender
  Conversion Share delivery is made; and such late fee will be added to the
  Outstanding Balance (such fees, the “Conversion Delay Late Fees”). For
  illustration purposes only, if Lender delivers a Lender Conversion Notice to
  Borrower pursuant to which Borrower is required to deliver 100,000 Lender
  Conversion Shares to Lender and on the Delivery Date such Lender Conversion
  Shares have a Lender Conversion Share Value of $20,000.00 (assuming a Closing
  Trade Price on the Delivery Date of $0.20 per share of Common Stock), then in
  such event a Conversion Delay Late Fee in the amount of $500.00 per day (the
  greater of $500.00 per day and $20,000.00 multiplied by 2%, which is $400.00)
  would be added to the Outstanding Balance of the Note until such Lender
  Conversion Shares are delivered to Lender. For purposes of this example, if the
  Lender Conversion Shares are delivered to Lender twenty (20) days after the
  applicable Delivery Date, the total Conversion Delay Late Fees that would be
  added to the Outstanding Balance would be $10,000.00 (20 days multiplied by
  $500.00 per day). If the Lender Conversion Shares are delivered to Lender one
  hundred (100) days after the applicable Delivery Date, the total Conversion
  Delay Late Fees that would be added to the Outstanding Balance would be
  $40,000.00 (100 days multiplied by $500.00 per day, but capped at 200% of the
  Lender Conversion Share Value).

11.              True-Up. On the date
  that is twenty (20) Trading Days (a “True-Up Date”) from each date
  Borrower delivers Free Trading (as defined below) Installment Conversion Shares
  to Lender, there shall be a true-up where Borrower shall deliver to Lender
  additional Installment Conversion Shares (“True-Up Shares”) if the
  Installment Conversion Price as of the True-Up Date is less than the
  Installment Conversion Price used in the applicable Installment Notice. In such
  event, Borrower shall deliver to Lender within three (3) Trading Days of the
  True-Up Date (the “True-Up Share Delivery Date”) a number of True-Up
  Shares equal to the difference between the number of Installment Conversion
  Shares that would have been delivered to Lender on the True-Up Date based on
  the Installment Conversion Price as of the True-Up Date and the number of
  Installment Conversion Shares originally delivered to Lender pursuant to the
  applicable Installment Notice. For the avoidance of doubt, if the Installment
  Conversion Price as of the True-Up Date is higher than the Installment
  Conversion Price set forth in the applicable Installment Notice, then Borrower
  shall have no obligation to deliver True-Up Shares to Lender, nor shall Lender
  have any obligation to return any excess Installment Conversion Shares to Borrower
  under any circumstance. For the convenience of
  Borrower only, Lender may, in its sole discretion, deliver to Borrower a notice
  (pursuant to a form of notice substantially in the form attached hereto as Exhibit
    C) informing Borrower of the number of True-Up Shares it is obligated to
  deliver to Lender as of any given True-Up Date, provided that if Lender does
  not deliver any such notice, Borrower shall not be relieved of its obligation
  to deliver True-Up Shares pursuant to this Section 11. Notwithstanding the foregoing, if
  Borrower fails to deliver any required True-Up Shares on or before any
  applicable True-Up Share Delivery Date, then in such event the Outstanding Balance
  of this Note will 

8

automatically increase (under Lender’s and Borrower’s
  expectations that any such increase will tack back to the Purchase Price Date
  for purposes of determining the holding period under Rule 144) by a sum equal
  to the number of True-Up Shares deliverable as of the applicable True-Up Date
  multiplied by the Market Price for the Common Stock as of the applicable
  True-Up Date.

12.              Ownership Limitation. Notwithstanding anything to the contrary contained in this Note or
  the other Transaction Documents, if at any time Lender shall or would be issued
  shares of Common Stock under any of the Transaction Documents, but such
  issuance would cause Lender (together with its affiliates) to beneficially own
  a number of shares exceeding 4.99% of the number of shares of Common Stock
  outstanding on such date (including for such purpose the shares of Common Stock
  issuable upon such issuance) (the “Maximum Percentage”), then Borrower
  must not issue to Lender shares of the Common Stock which would exceed the Maximum
  Percentage. For purposes of this section, beneficial ownership of Common Stock
  will be determined pursuant to Section 13(d) of the 1934 Act. The shares of
  Common Stock issuable to Lender that would cause the Maximum Percentage to be
  exceeded are referred to herein as the “Ownership Limitation Shares”.
  Borrower will reserve the Ownership Limitation Shares for the exclusive benefit
  of Lender. From time to time, Lender may notify Borrower in writing of the
  number of the Ownership Limitation Shares that may be issued to Lender without
  causing Lender to exceed the Maximum Percentage. Upon receipt of such notice,
  Borrower shall be unconditionally obligated to immediately issue such
  designated shares to Lender, with a corresponding reduction in the number of the
  Ownership Limitation Shares. Notwithstanding the forgoing, the term “4.99%”
  above shall be replaced with “9.99%” at such time as the Market Capitalization
  of the Common Stock is less than $10,000,000.00. Notwithstanding any other
  provision contained herein, if the term “4.99%” is replaced with “9.99%”
  pursuant to the preceding sentence, such increase to “9.99%” shall remain at
  9.99% until increased, decreased or waived by Lender as set forth below. By written notice to Borrower, Lender may increase, decrease or
  waive the Maximum Percentage as to itself but any such waiver will not be
  effective until the 61st day after delivery thereof. The foregoing 61-day
  notice requirement is enforceable, unconditional and non-waivable and shall
  apply to all affiliates and assigns of Lender.

13.              Payment of Collection Costs. If this Note is placed in the hands of an attorney for collection
  or enforcement prior to commencing arbitration or
  legal proceedings, or is collected or enforced through any arbitration
  or legal proceeding, or Lender otherwise takes action to collect amounts due
  under this Note or to enforce the provisions of this Note, then Borrower shall
  pay the costs incurred by Lender for such collection, enforcement or action
  including, without limitation, attorneys’ fees and disbursements. Borrower also
  agrees to pay for any costs, fees or charges of its transfer agent that are
  charged to Lender pursuant to any Conversion or issuance of shares pursuant to
  this Note.

14.              Opinion of Counsel. In the event that an opinion of counsel is needed for any matter
  related to this Note, Lender has the right to have any such opinion provided by
  its counsel. Lender also has the right to have any such opinion provided by
  Borrower’s counsel.

15.              Governing Law. This Note shall be construed and enforced in accordance
  with, and all questions concerning the construction, validity, interpretation
  and performance of this Note shall be governed by, the internal laws of the
  State of Utah, without giving effect to any choice of law or conflict of law
  provision or rule (whether of the State of Utah or any other jurisdictions)
  that would cause the application of the laws of any jurisdictions other than
  the State of Utah. The provisions set forth in the Purchase Agreement to determine the proper venue for any disputes are
  incorporated herein by this reference.

16.              Resolution of Disputes. 

16.1.        Arbitration of Disputes. By its acceptance of this Note, each
  party agrees to be bound by the Arbitration Provisions set forth as an exhibit
  to the Purchase Agreement.

9

16.2.        Calculation Disputes. Notwithstanding the Arbitration Provisions, in the case of a dispute as to any Calculations (as defined
  in the Purchase Agreement), such dispute will be resolved in the manner
  set forth in the Purchase Agreement.

17.              Cancellation. After repayment or conversion of the entire
  Outstanding Balance (including
  without limitation delivery of True-Up Shares pursuant to the payment of the
  final Installment Amount, if applicable), this Note shall be deemed paid in
  full, shall automatically be deemed canceled, and shall not be reissued.

18.              Amendments. The prior written consent of both parties hereto shall be
  required for any change or amendment to this Note.

19.              Assignments.
  Borrower may not assign this Note without the prior written consent of Lender.
  This Note and any shares of Common Stock issued upon conversion of this Note
  may be offered, sold, assigned or transferred by Lender without the consent of
  Borrower.

20.              Time of the Essence. Time is expressly made of the essence with respect to each and
  every provision of this Note and the documents and instruments entered into in
  connection herewith.

21.              Notices. Whenever
  notice is required to be given under this Note, unless otherwise provided
  herein, such notice shall be given in accordance with the subsection of the
  Purchase Agreement titled “Notices.”

22.              Liquidated Damages. Lender and Borrower agree that in the event Borrower fails to
  comply with any of the terms or provisions of this Note, Lender’s damages would
  be uncertain and difficult (if not impossible) to accurately estimate because
  of the parties’ inability to predict future interest rates, future share
  prices, future trading volumes and other relevant factors. Accordingly, Lender
  and Borrower agree that any fees, balance adjustments, Default Interest or
  other charges assessed under this Note are not penalties but instead are
  intended by the parties to be, and shall be deemed, liquidated damages (under
  Lender’s and Borrower’s expectations that any such liquidated damages will tack
  back to the Closing Date for purposes of determining the holding period under
  Rule 144).

[Remainder of page intentionally left
  blank; signature page follows]

10

IN WITNESS WHEREOF, Borrower has caused this
  Note to be duly executed as of the Effective Date. 

	 	
BORROWER: 

        HOMELAND RESOURCES LTD. 

                       /s/ David St. James

        By: _______________________ 

        Name: David St. James                       

        Title: Treasurer & Secretary             

ACKNOWLEDGED,
  ACCEPTED AND AGREED:

LENDER:

TYPENEX CO-INVESTMENT, LLC

By: Red Cliffs
  Investments, Inc., its Manager

            /s/ John M. Fife

        By:                                                             

              John M. Fife, President

[Signature Page to Convertible Promissory Note]

ATTACHMENT 1
DEFINITIONS

For purposes of this Note, the
  following terms shall have the following meanings: 

A1.              
  “Adjusted Outstanding Balance” means the Outstanding
  Balance of this Note as of the date the applicable Fundamental Default occurred
  less any Conversion Delay Late Fees included in such Outstanding Balance.

A2.              
  “Approved Stock Plan” means any stock
  option plan which has been approved by the board of directors of Borrower,
  pursuant to which Borrower’s securities may be issued to any employee, officer
  or director for services provided to Borrower.

A3.              
  “Closing Bid Price” and “Closing Trade
    Price” means the last closing bid price and last closing trade price,
  respectively, for the Common Stock on its principal market, as reported by
  Bloomberg, or, if its principal market begins to operate on an extended hours
  basis and does not designate the closing bid price or the closing trade price
  (as the case may be) then the last bid price or last trade price, respectively,
  of the Common Stock prior to 4:00:00 p.m., New York time, as reported by
  Bloomberg, or, if its principal market is not the principal securities exchange
  or trading market for the Common Stock, the last closing bid price or last
  trade price, respectively, of the Common Stock on the principal securities
  exchange or trading market where the Common Stock is listed or traded as
  reported by Bloomberg, or if the foregoing do not apply, the last closing bid price
  or last trade price, respectively, of the Common Stock in the over-the-counter
  market on the electronic bulletin board for the Common Stock as reported by
  Bloomberg, or, if no closing bid price or last trade price, respectively, is
  reported for the Common Stock by Bloomberg, the average of the bid prices, or
  the ask prices, respectively, of any market makers for the Common Stock as
  reported by OTC Markets Group, Inc., and any successor thereto. If the Closing
  Bid Price or the Closing Trade Price cannot be calculated for the Common Stock
  on a particular date on any of the foregoing bases, the Closing Bid Price or
  the Closing Trade Price (as the case may be) of the Common Stock on such date
  shall be the fair market value as mutually determined by Lender and Borrower.
  If Lender and Borrower are unable to agree upon the fair market value of the
  Common Stock, then such dispute shall be resolved in accordance with the
  procedures in Section 16.2.
  All such determinations shall be appropriately adjusted for any stock dividend,
  stock split, stock combination or other similar transaction during such period.

A4.              
  “Conversion Factor” means 61%, subject to
  the following adjustments. If at any time the average of the three (3) lowest
  Closing Bid Prices in the twenty (20) Trading Days immediately preceding any
  date of measurement is below $0.05, then in such event the then-current
  Conversion Factor shall be reduced by 5% for all future Conversions (subject to
  other reductions set forth in this section). Additionally, if at any time after
  the Effective Date, Borrower is not DWAC Eligible, then the then-current
  Conversion Factor will automatically be reduced by 5% for all future Conversions.
  If at any time after the Effective Date, the Conversion Shares are not DTC
  Eligible, then the then-current Conversion Factor will automatically be reduced
  by an additional 5% for all future Conversions. Finally, in addition to the
  Default Effect, if any Major Default occurs after the Effective Date, the
  Conversion Factor shall automatically be reduced for all future Conversions by
  an additional 5% for each of the first three (3) Major Defaults that occur
  after the Effective Date (for the avoidance of doubt, each occurrence of any
  Major Default shall be deemed to be a separate occurrence for purposes of the
  foregoing reductions in Conversion Factor, even if the same Major Default
  occurs three (3) separate times). For example, the first time Borrower is not
  DWAC Eligible, the Conversion Factor for future Conversions thereafter will be
  reduced from 61% to 56% for purposes of this example. Following such event, the
  first time the Conversion Shares are no longer DTC Eligible, the Conversion
  Factor for future Conversions thereafter will be reduced from 56% to 51% for
  purposes of this example. If, thereafter, there are three (3) separate
  occurrences of a Major Default pursuant to Section 4.1(iii), then for purposes of this example
  the Conversion Factor would be reduced by 5% for the first such occurrence, and
  so on for each of the second and third occurrences of such Major Default. 

A5.              
  “Deemed Issuance” means an issuance of Common
  Stock that shall be deemed to have occurred on the latest possible permitted
  date pursuant to the terms hereof or any applicable Warrant in the event
  Borrower fails to deliver Conversion Shares as and when required pursuant to
  Sections 3 or 8 of the Note or Warrant Shares (as defined
  in the Purchase Agreement) as and when required pursuant to the Warrant. For
  the avoidance of doubt, if Borrower has elected or is deemed under Section 8.3 to have elected to pay an Installment
  Amount in Installment Conversion Shares and fails to deliver such Installment
  Conversion Shares, such failure shall be considered a Deemed Issuance hereunder
  even if an Equity Conditions Failure exists at that time or other relevant date
  of determination.

Attachment 1 to Convertible Promissory Note, Page 1

A6.              
  “DTC” means the Depository Trust Company.

A7.              
  “DTC Eligible” means, with respect to the
  Common Stock, that such Common Stock is eligible to be deposited in certificate
  form at the DTC, cleared and converted into electronic shares by the DTC and
  held in the name of the clearing firm servicing Lender’s brokerage firm for the
  benefit of Lender.

A8.              
  “DTC/FAST Program” means the DTC’s Fast
  Automated Securities Transfer service.

A9.              
  “DWAC” means the DTC’s Deposit and Withdrawal
  at Custodian service.

A10.          
  “DWAC Eligible” means that (i) Borrower’s
  Common Stock is eligible at DTC for full services pursuant to DTC’s operational
  arrangements, including without limitation transfer through DTC’s DWAC system,
  (ii) Borrower has been approved (without revocation) by the DTC’s underwriting
  department, (iii) Borrower’s transfer agent is approved as an agent in the
  DTC/FAST Program, (iv) the Conversion Shares are otherwise eligible for
  delivery via DWAC; (v) Borrower has previously delivered all Conversion Shares
  to Lender via DWAC; and (vi) Borrower’s transfer agent does not have a policy
  prohibiting or limiting delivery of the Conversion Shares via DWAC.

A11.          
  “Equity Conditions Failure” means that
  any of the following conditions has not been satisfied during any applicable
  Equity Conditions Measuring Period (as defined below): (i) with respect to
  the applicable date of determination all of the Conversion Shares are freely
  tradable under Rule 144 or without the need for registration under any
  applicable federal or state securities laws (in each case, disregarding any
  limitation on conversion of this Note); (ii) on each day during the period
  beginning one month prior to the applicable date of determination and ending on
  and including the applicable date of determination (the “Equity Conditions
    Measuring Period”), the Common Stock is listed or designated for quotation
  (as applicable) on any of The New York Stock Exchange, NYSE MKT, the Nasdaq
  Global Select Market, the Nasdaq Global Market, the Nasdaq Capital Market, the OTC
  Bulletin Board, the OTCQX, the OTCQB or the OTC Pink Current (each, an “Eligible
    Market”) and shall not have been suspended from trading on any such
  Eligible Market (other than suspensions of not more than two (2) Trading
  Days and occurring prior to the applicable date of determination due to
  business announcements by Borrower); (iii) on each day during the Equity
  Conditions Measuring Period, Borrower shall have delivered all shares of Common
  Stock issuable upon conversion of this Note on a timely basis as set forth in
  Section 9 hereof and all
  other shares of capital stock required to be delivered by Borrower on a timely
  basis as set forth in the other Transaction Documents; (iv) any shares of
  Common Stock to be issued in connection with the event requiring determination
  may be issued in full without violating Section 12 hereof (Lender acknowledges that Borrower
  shall be entitled to assume that this condition has been met for all purposes
  hereunder absent written notice from Lender); (v) any shares of Common
  Stock to be issued in connection with the event requiring determination may be
  issued in full without violating the rules or regulations of the Eligible
  Market on which the Common Stock is then listed or designated for quotation (as
  applicable); (vi) on each day during the Equity Conditions Measuring
  Period, no public announcement of a pending, proposed or intended Fundamental
  Transaction shall have occurred which has not been abandoned, terminated or
  consummated; (vii) Borrower shall have no knowledge of any fact that would
  reasonably be expected to cause any of the Conversion Shares to not be freely
  tradable without the need for registration under any applicable state
  securities laws (in each case, disregarding any limitation on conversion of
  this Note); (viii) on each day during the Equity Conditions Measuring
  Period, Borrower otherwise shall have been in material compliance with each,
  and shall not have breached any, term, provision, covenant, representation or
  warranty of any Transaction Document; (ix) without limiting clause (viii)
  above, on each day during the Equity Conditions Measuring Period, there shall
  not have occurred an Event of Default or an event that with the passage of time
  or giving of notice would constitute an Event of Default; (x) on each
  Installment Notice Due Date and each Installment Date, the average and median
  daily dollar volume of the Common Stock on its principal market for the
  previous twenty (20) Trading Days shall be greater than $5,000.00; (xi) the ten
  (10) day average VWAP of the Common Stock is greater than $0.05, and (xii) the
  Common Stock shall be DWAC Eligible as of each applicable Installment Notice
  Due Date, Installment Date or other date of determination.

A12.          
  “Excluded Securities” means any shares of
  Common Stock, options, or convertible securities issued or issuable in
  connection with any Approved Stock Plan; provided that the option term,
  exercise price or similar provisions of any issuances pursuant to such Approved
  Stock Plan are not amended, modified or changed on or after the Purchase Price
  Date.

A13.          
  “Free Trading” means that (a) the shares
  or certificate(s) representing the applicable shares of Common Stock have been
  cleared and approved for public resale by the compliance departments of
  Lender’s brokerage firm and the clearing firm servicing such brokerage, and (b)
  such shares are held in the name of the 

Attachment 1 to Convertible Promissory Note, Page 2

clearing firm servicing Lender’s
  brokerage firm and have been deposited into such clearing firm’s account for
  the benefit of Lender.

A14.          
  “Fundamental Default” means that Borrower
  either fails to pay the entire Outstanding Balance to Lender on or before the
  Maturity Date or fails to pay the Mandatory Default Amount within three (3)
  Trading Days of the date Lender delivers any notice of acceleration to Borrower
  pursuant to Section 4.2 of this Note.

A15.          
  “Fundamental Default Conversion Value”
  means the Adjusted Outstanding Balance multiplied by the highest Fundamental
  Default Ratio that occurs during the Fundamental Default Measuring Period.

A16.          
  “Fundamental Default Measuring Period”
  means a number of months equal to the Outstanding Balance as of the date the
  Fundamental Default occurred divided by the Installment Amount, with such
  number being rounded up to the next whole month; provided, however, that
  if Borrower repays the entire Outstanding Balance prior to the conclusion of
  the Fundamental Default Measuring Period, the Fundamental Default Measuring
  Period shall end on the date of repayment. For illustration purposes only, if
  the Outstanding Balance were equal to $125,000 as of the date a Fundamental
  Default occurred and if the Installment Amount were $28,500, then the
  Fundamental Default Measuring Period would equal five (5) months calculated as
  follows: $125,000/$28,500 equals 4.386, rounded up to five (5).

A17.          
  “Fundamental Default Ratio” means a ratio
  that will be calculated on each Trading Day during the Fundamental Default
  Measuring Period by dividing the Closing Trade Price for the Common Stock on a
  given Trading Day by the Lender Conversion Price (as adjusted pursuant to the
  terms hereof) in effect for such Trading Day.

A18.          
  “Fundamental Liquidated Damages Amount”
  means the greater of (i) (a) the quotient of the Outstanding Balance on the
  date the Fundamental Default occurred divided by the then-current Conversion
  Factor, minus (b) the Outstanding Balance on the date the Fundamental Default
  occurred, or (ii) the Fundamental Default Conversion Value.

A19.          
  “Fundamental Transaction” means that (i)
  (a) Borrower or any of its subsidiaries shall, directly or indirectly, in
  one or more related transactions, consolidate or merge with or into (whether or
  not Borrower or any of its subsidiaries is the surviving corporation) any other
  person or entity, or (b) Borrower or any of its subsidiaries shall,
  directly or indirectly, in one or more related transactions, sell, lease,
  license, assign, transfer, convey or otherwise dispose of all or substantially
  all of its respective properties or assets to any other person or entity, or (c) Borrower
  or any of its subsidiaries shall, directly or indirectly, in one or more
  related transactions, allow any other person or entity to make a purchase,
  tender or exchange offer that is accepted by the holders of more than 50% of
  the outstanding shares of voting stock of Borrower (not including any shares of
  voting stock of Borrower held by the person or persons making or party to, or
  associated or affiliated with the persons or entities making or party to, such
  purchase, tender or exchange offer), or (d) Borrower or any of its
  subsidiaries shall, directly or indirectly, in one or more related
  transactions, consummate a stock or share purchase agreement or other business
  combination (including, without limitation, a reorganization, recapitalization,
  spin-off or scheme of arrangement) with any other person or entity whereby such
  other person or entity acquires more than 50% of the outstanding shares of
  voting stock of Borrower (not including any shares of voting stock of Borrower
  held by the other persons or entities making or party to, or associated or
  affiliated with the other persons or entities making or party to, such stock or
  share purchase agreement or other business combination), or (e) Borrower
  or any of its subsidiaries shall, directly or indirectly, in one or more
  related transactions, reorganize, recapitalize or reclassify the Common Stock,
  other than an increase in the number of authorized shares of Borrower’s Common
  Stock, or (ii) any “person” or “group” (as these terms are used for
  purposes of Sections 13(d) and 14(d) of the 1934 Act and the rules and
  regulations promulgated thereunder) is or shall become the “beneficial owner”
  (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of
  50% of the aggregate ordinary voting power represented by issued and
  outstanding voting stock of Borrower.

A20.          
  “Installment Amount” means the greater of
  (i) $14,000.00 ($70,000.00 ÷ 5), plus the sum of any accrued and unpaid
  interest as of the applicable Installment Date and accrued, and unpaid late
  charges, if any, under this Note as of the applicable Installment Date, and any
  other amounts accruing or owing to Lender under this Note as of such
  Installment Date, and (ii) the then Outstanding Balance divided by the number
  of Installment Dates remaining prior to the Maturity Date.

A21.          
  “Lender Conversion Share Value” means the
  product of the number of Lender Conversion Shares deliverable pursuant to any
  Lender Conversion multiplied by the Closing Trade Price of the Common Stock on
  the Delivery Date for such Lender Conversion.

Attachment 1 to Convertible Promissory Note, Page 3

A22.          
  “Major Default” means any Event of
  Default occurring under Sections 4.1(i), (iii), (x), or (xiii) of this Note.

A23.          
  “Market Capitalization of the Common Stock”
  shall mean the product equal to (a) the average VWAP of the Common Stock for
  the immediately preceding fifteen (15) Trading Days, multiplied by (b) the
  aggregate number of outstanding shares of Common Stock as reported on
  Borrower’s most recently filed Form 10-Q or Form 10-K.

A24.          
  “Market Price” means the Conversion
  Factor multiplied by the average of the three (3) lowest Closing Bid Prices in
  the twenty (20) Trading Days immediately preceding the applicable date of
  measurement.

A25.          
  “Minor Default” means any Event of
  Default that is not a Major Default or a Fundamental Default.

A26.          
  “Optional Prepayment Liquidated Damages
    Amount” means an amount equal to the difference between (a) the product of
  (i) the number of shares of Common Stock obtained by dividing (1) the
  applicable Optional Prepayment Amount by (2) the Lender Conversion Price as of
  the date Borrower delivered the applicable Optional Prepayment Amount to
  Lender, multiplied by (ii) the Closing Trade Price of the Common Stock on the
  date Borrower delivered the applicable Optional Prepayment Amount to Lender,
  and (b) the applicable Optional Prepayment Amount paid by Borrower to Lender.
  For illustration purposes only, if the applicable Optional Prepayment Amount
  were $50,000.00, the Lender Conversion Price as of the date the Optional
  Prepayment Amount was paid to Lender was equal to $0.75 per share of Common
  Stock, and the Closing Trade Price of a share of Common Stock as of such date
  was equal to $1.00, then the Optional Prepayment Liquidated Damages Amount
  would equal $16,666.67 computed as follows: (a) $66,666.67 (calculated as (i) (1)
  $50,000.00 divided by (2) $0.75 multiplied by (ii) $1.00) minus (b) $50,000.00.

A27.          
  “Trading Day” shall mean any day on which
  the Common Stock is traded or tradable for any period on the Common Stock’s
  principal market, or on the principal securities exchange or other securities
  market on which the Common Stock is then being traded.

Attachment 1 to Convertible Promissory Note, Page 4

EXHIBIT A

TYPENEX CO-INVESTMENT, LLC

  303 East Wacker Drive, Suite 1040

  Chicago, Illinois 60601

	Homeland Resources Ltd.

      Attn: Thomas Campbell, CEO 

      9120 Double Diamond Parkway, H#269 

      Reno, Nevada 89521	 Date:
      __________________ 

LENDER
  CONVERSION NOTICE

The
  above-captioned Lender hereby gives notice to Homeland
  Resources Ltd., a Nevada corporation (the “Borrower”),
  pursuant to that certain Convertible Promissory Note made by Borrower in favor
  of Lender on January 22, 2015 (the “Note”), that Lender elects to
  convert the portion of the Note balance set forth below into fully paid and
  non-assessable shares of Common Stock of Borrower as of the date of conversion
  specified below. Said conversion shall be based on the Lender Conversion Price
  set forth below. In the event of a conflict between this Lender Conversion
  Notice and the Note, the Note shall govern, or, in the alternative, at the
  election of Lender in its sole discretion, Lender may provide a new form of
  Lender Conversion Notice to conform to the Note. Capitalized terms used in this
  notice without definition shall have the meanings given to them in the Note.

	 	A. 	Date of Conversion:    ____________ 

	 	B. 	Lender Conversion #:   ____________ 

	 	C. 	Conversion Amount:    ____________ 

	 	D. 	Lender Conversion Price:  _______________ 

	 	E. 	Lender Conversion Shares:  _______________ (C divided by D) 

	 	F. 	Remaining Outstanding Balance of Note:  ____________* 

* Subject to adjustments for corrections, defaults, interest and other
  adjustments permitted by the Transaction Documents (as defined in the Purchase
  Agreement), the terms of which shall control in the event of any dispute
  between the terms of this Lender Conversion Notice and such Transaction
  Documents.

$_________________
  of the Conversion Amount converted hereunder shall be deducted from the
  Installment Amount(s) relating to the following Installment Date(s):
  __________________________________________.

	
Please transfer the Lender Conversion
      Shares electronically (via DWAC) to the following account:
	Broker:                                                

      DTC#:                                                  

        Account #:                                            

        Account Name:                                    
	 Address:                                                         

                                                                                 

                                                                                 

To the extent
  the Lender Conversion Shares are not able to be delivered to Lender
  electronically via the DWAC system, deliver all such
  certificated shares to Lender via reputable overnight
  courier after receipt of this Lender Conversion Notice (by facsimile
  transmission or otherwise) to:

                        _____________________________________

                          _____________________________________

                          _____________________________________

Exhibit A to Convertible Promissory Note, Page 1

Sincerely,

Lender:            

TYPENEX CO-INVESTMENT, LLC

By: Red Cliffs
  Investments, Inc., its Manager

      By:                                                            
            John M. Fife, President

Exhibit A to Convertible Promissory Note, Page 2

EXHIBIT B

Homeland
  Resources Ltd.

  9120 Double Diamond Parkway, H#269

  Reno, Nevada 89521

	Typenex Co-Investment, LLC  

      Attn: John Fife 

      303 East Wacker Dr., Suite 1040 

      Chicago, Illinois 60601	Date:
      _____________

INSTALLMENT NOTICE

The
  above-captioned Borrower hereby gives notice to Typenex Co-Investment, LLC, a Utah limited liability company (the “Lender”),
  pursuant to that certain Convertible Promissory Note made by Borrower in favor
  of Lender on January 22, 2015 (the
  “Note”), of certain Borrower elections and certifications related to
  payment of the Installment Amount of $_________________ due on ___________,
  201_ (the “Installment Date”). In the event of a conflict between this
  Installment Notice and the Note, the Note shall govern, or, in the alternative,
  at the election of Lender in its sole discretion, Lender may provide a new form
  of Installment Notice to conform to the Note. Capitalized terms used in this
  notice without definition shall have the meanings given to them in the Note.

INSTALLMENT CONVERSION AND CERTIFICATIONS
AS OF THE INSTALLMENT DATE

	
A.  	
INSTALLMENT CONVERSION 

	 	A. 	Installment Date: ____________, 201_ 

	 	B. 	Installment Amount:     ____________ 

	 	C. 	Portion of Installment Amount Borrower elected to pay in cash: ____________ 

	 	D. 	Portion of Installment Amount to be converted into Common Stock: ____________ (B minus C) 

	 	E. 	Installment Conversion Price:  _______________ (lower of (i) Lender Conversion Price in effect and (ii) Market Price as of Installment Date) 

	 	F. 	Installment Conversion Shares:  _______________ (D divided by E) 

	 	G. 	Remaining Outstanding Balance of Note:  ____________ * 

* Subject to adjustments for corrections, defaults, interest and other
  adjustments permitted by the Transaction Documents (as defined in the Purchase
  Agreement), the terms of which shall control in the event of any dispute
  between the terms of this Installment Notice and such Transaction Documents.

	
B.  	
EQUITY CONDITIONS CERTIFICATION 

	1. 	Market Capitalization of the Common Stock:________________ 

(Check One)

	2. 	_________ Borrower herby certifies that no Equity Conditions Failure exists as of the Installment Date. 

	3. 	_________ Borrower hereby gives notice that an Equity Conditions Failure has occurred and requests a waiver from Lender with respect thereto. The Equity Conditions Failure is as follows: 

Exhibit B to Convertible Promissory Note, Page 1 

	 
	 
	 
	 

Sincerely,

Borrower:

HOMELAND RESOURCES LTD.

By:                                                       

  Name:                                                  

  Title:                                                    

Exhibit B to Convertible Promissory Note, Page 2 

EXHIBIT C

Typenex
  Co-Investment, LLC

  303 East Wacker Drive, Suite 1040

  Chicago, Illinois 60601

	Homeland Resources Ltd.  

      Attn: Thomas Campbell, CEO 

      9120 Double Diamond Parkway, H#269 

      Reno, Nevada 89521	Date:
      __________________

TRUE-UP NOTICE

The
  above-captioned Lender hereby gives notice to Homeland
  Resources Ltd., a Nevada corporation (the “Borrower”), pursuant to that certain Convertible Promissory Note made by
  Borrower in favor of Lender on January 22, 2015 (the “Note”), of True-Up Conversion Shares related to _____________, 201_ (the “Installment
    Date”). In the event of a conflict between this True-Up Notice and the
  Note, the Note shall govern, or, in the alternative, at the election of Lender
  in its sole discretion, Lender may provide a new form of True-Up Notice to
  conform to the Note. Capitalized terms used in this notice without definition
  shall have the meanings given to them in the Note.

TRUE-UP CONVERSION SHARES AND CERTIFICATIONS
AS OF THE TRUE-UP DATE

	
1.  	
TRUE-UP CONVERSION SHARES 

	 	A. 	Installment Date: ____________, 201_ 

	 	B. 	True-Up Date: ____________, 201_ 

	 	C. 	Portion of Installment Amount Converted into Common Stock:            _____________ 

	 	D. 	True-Up Conversion Price:  _______________ (lower of (i) Lender Conversion Price in effect and (ii) Market Price as of True-Up Date) 

	 	E. 	True-Up Conversion Shares:  _______________ (C divided by D) 

	 	F. 	Installment Conversion Shares Delivered: ________________ 

	 	G. 	True-Up Conversion Shares to be Delivered: ________________ (only applicable if E minus F is greater than zero) 

	
2.  	
EQUITY CONDITIONS CERTIFICATION (Section to be completed by Borrower) 

	 	A. 	Market Capitalization of the Common Stock:________________ 

	 	(Check One)

	 	B. 	_________ Borrower herby certifies that no Equity Conditions Failure exists as of the applicable True-Up Date. 

	 	C. 	_________ Borrower hereby gives notice that an Equity Conditions Failure has occurred and requests a waiver from Lender with respect thereto. The Equity Conditions Failure is as follows: 

Exhibit C to Convertible Promissory Note, Page 1

	 
	 
	 
	 

Sincerely,

Lender:            

TYPENEX CO-INVESTMENT, LLC

By: Red Cliffs Investments,
  Inc., its Manager

	 	 By:                                                       

	 	 John M. Fife, President

ACKNOWLEDGED
  AND CERTIFIED BY:

Borrower:

HOMELAND RESOURCES LTD.

By:                                                       

  Name:                                                  

  Title:                                                    

Exhibit C to Convertible Promissory Note, Page 2

 
Exhibit B

Warrant

THIS WARRANT AND THE COMMON STOCK ISSUABLE
  UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
  OF 1933, AS AMENDED. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE
  OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
  THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER
  SUCH ACT AND ANY APPLICABLE STATE SECURITIES LAW OR AN OPINION OF COUNSEL
  REASONABLY SATISFACTORY TO HOMELAND RESOURCES LTD. THAT SUCH REGISTRATION IS NOT
  REQUIRED.

HOMELAND RESOURCES LTD.

WARRANT TO PURCHASE SHARES OF COMMON STOCK 

1.                  Issuance. In
  consideration of good and valuable consideration as set forth in the Purchase
  Agreement (defined below), including without limitation the Purchase Price (as
  defined in the Purchase Agreement), the receipt and sufficiency of which are
  hereby acknowledged by HOMELAND
  RESOURCES LTD., A NEVADA CORPORATION (“Company”); TYPENEX CO-INVESTMENT, LLC, A UTAH
  LIMITED LIABILITY COMPANY, ITS SUCCESSORS AND/OR REGISTERED ASSIGNS (“Investor”),
  is hereby granted the right to purchase at any time on or after the Issue Date
  (as defined below) until the date which is the last calendar day of the month
  in which the fifth anniversary of the Issue Date occurs (the “Expiration
    Date”), 175,000 shares of fully paid and non-assessable shares (the “Warrant
      Shares”) of Company’s common stock, par value $0.0001 per share (the “Common
        Stock”), as such number may be adjusted from time to time pursuant to the
  terms and conditions of this Warrant to Purchase Shares of Common Stock (this “Warrant”). 
  This Warrant is being issued pursuant to the terms of that certain Securities
  Purchase Agreement dated January 22, 2015, to which Company and Investor are
  parties (as the same may be amended from time to time, the “Purchase
    Agreement”).

Unless otherwise indicated herein, capitalized
  terms not otherwise defined herein shall have the meanings ascribed to them in
  the Purchase Agreement.

This Warrant was issued to Investor on January
  22, 2015 (the “Issue Date”). For the avoidance of doubt, the Purchase Price constitutes payment
  in full for this Warrant.

2.                  Exercise of Warrant.

2.1.            General.

(a)               
  This Warrant is exercisable in whole or in part
  at any time and from time to time commencing on the Issue Date and ending on
  the Expiration Date. Such exercise shall be effectuated by submitting to
  Company (either by delivery to Company or by email or facsimile transmission) a
  completed and duly executed Notice of Exercise substantially in the form
  attached to this Warrant as Exhibit A (the “Notice of Exercise”).
  The date such Notice of Exercise is either faxed, emailed or delivered to
  Company shall be the “Exercise Date,” provided that, if such exercise
  represents the full exercise of the outstanding balance of the Warrant, Investor
  shall tender this Warrant to Company within five (5) Trading Days thereafter,
  but only if the Warrant Shares to be delivered pursuant to the Notice of
  Exercise have been delivered to Investor as of such date.  The Notice of
  Exercise shall be executed by Investor and shall indicate (i) the number of Warrant
  Shares to be issued pursuant to such exercise, and (ii) if applicable (as
  provided below), whether the exercise is a cashless exercise.

1

For purposes of this Warrant, the term “Trading
  Day” means any day during which the principal market on which the Common
  Stock is traded (the “Principal Market”) shall be open for business.

(b)              
  Notwithstanding any other provision contained
  herein or in any other Transaction Document  to the contrary, at any time prior
  to the Expiration Date, Investor may elect a “cashless” exercise of this
  Warrant for any Warrant Shares, in which event the Company shall issue to
  Investor a number of Shares computed using the following formula:

X = Y (A‐B)

        A

	 	Where	X =	the number of Warrant Shares to be issued to Investor.
	 	 	 	 
	 	 	Y =	the number of Warrant Shares that the Investor elects to purchase under this Warrant (at the date of such calculation). 
	 	 	 	 
	 	 	A = 	the Closing Price (on the date two Trading Days prior to the Exercise Date).
	 	 	 	 
	 	 	B =	Exercise Price (as adjusted to the date of such calculation).

For the purposes of this Warrant, the
  following terms shall have the following meanings:

 “Closing Price” shall mean the 4:00
  P.M. last sale price of the Common Stock on the Principal Market on the relevant Trading Day(s), as
  reported by Bloomberg LP (or if that service is not then reporting the relevant
  information regarding the Common Stock, a comparable reporting service of
  national reputation selected by Investor and reasonably acceptable to Company)
  for the relevant date.  

 “Exercise Price” shall mean $0.20 per share of Common Stock,
  as the same may be adjusted from time to time pursuant to the terms and
  conditions of this Warrant. 

 “Note” shall mean that certain Convertible Promissory Note issued by Company to Investor pursuant
  to the Purchase Agreement, as the same may be amended from time to time, and including any promissory note(s) that replace or are exchanged
  for such referenced promissory note.

 “Transaction Documents” or “Transaction
  Document” shall have the meaning set forth in the Purchase Agreement.

“VWAP” shall mean the volume-weighted average price of the Common Stock on the
  Principal Market for a particular Trading Day or set of Trading Days, as the
  case may be, as reported by Bloomberg LP.

(c)               
  If the Notice of Exercise form elects a “cash”
  exercise (or if the cashless exercise referred to in the immediately preceding
  subsection (b) is not available in accordance with the terms hereof), the
  Exercise Price per share of Common Stock for the Warrant Shares shall be
  payable, at the election of Investor, in cash or by certified or official bank
  check or by wire transfer in accordance with instructions provided by Company
  at the request of Investor.

(d)              
  Upon the appropriate payment to Company, if any,
  of the Exercise Price for the Warrant Shares, Company shall promptly, but in no
  case later than the date that is three (3) Trading Days following the date the
  Exercise Price is paid to Company (or with respect to a cashless exercise, the
  date that is three 

2

(3) Trading Days following the Exercise Date) (the “Delivery
  Date”), deliver or cause Company’s Transfer Agent to deliver the applicable
  Warrant Shares electronically via the Deposit/Withdrawal at Custodian (“DWAC”)
  system to the account designated by Investor on the Notice of Exercise.  If for
  any reason Company is not able to so deliver the Warrant Shares via the DWAC
  system, notwithstanding its best efforts to do so, such shall constitute a
  breach of this Warrant (and thus an Event of Default under the Note), and
  Company shall instead, on or before the applicable date set forth above in this
  subsection, issue and deliver to Investor or its broker (as designated in the
  Notice of Exercise), via reputable overnight courier, a certificate, registered
  in the name of Investor or its designee, representing the applicable number of Warrant
  Shares. For the avoidance of doubt, Company has not met its obligation to
  deliver Warrant Shares within the required timeframe set forth above unless
  Investor or its broker, as applicable, has actually received the Warrant Shares
  (whether electronically or in certificated form) no later than the close of
  business on the latest possible delivery date pursuant to the terms set forth
  above.

(e)               
  If Warrant Shares are delivered later than as
  required under subsection (d) immediately above, Company agrees to pay, in
  addition to all other remedies available to Investor in the Transaction
  Documents, a late charge equal to the greater of (i) $500.00 and (ii) 2% of the
  product of (1) the sum of the number of shares of Common Stock not issued
  to Investor on a timely basis and to which Investor is entitled multiplied by
  (2) the closing bid price of the Common Stock on the Trading Day immediately
  preceding the last possible date which Company could have issued such shares of
  Common Stock to Investor without violating this Warrant, per Trading Day until
  such Warrant Shares are delivered (the “Late Fees”). Company shall pay
  any Late Fees incurred under this subsection in immediately available funds
  upon demand; provided, however, that, at the option of Investor (without
  notice to Company), such amount owed may be added to the principal amount of
  the Note.  Furthermore, in addition to any other remedies which may be
  available to Investor, in the event that Company fails for any reason to effect
  delivery of the Warrant Shares as required under subsection (d) immediately
  above, Investor may revoke all or part of the relevant Warrant exercise by
  delivery of a notice to such effect to Company, whereupon Company and Investor
  shall each be restored to their respective positions immediately prior to the
  exercise of the relevant portion of this Warrant, except that the Late Fees
  described above shall be payable through the date notice of revocation or
  rescission is given to Company. Finally, as liquidated damages in the event
  Company fails to deliver any Warrant Shares to Investor for a period of ninety
  (90) days from the Delivery Date, Investor may elect, in its sole discretion,
  to stop the accumulation of the Late Fees as of such date and require Company
  to pay to Investor a cash amount equal to (i) the total amount of all Late Fees
  that have accumulated prior to the date of Investor’s election, plus (ii) the
  product of the number of Warrant Shares deliverable to Investor on such date if
  it were to exercise this Warrant with respect to the remaining number of Warrant
  Shares as of such date multiplied by the Closing Price of the Common Stock on
  the Delivery Date (the “Cash Settlement Amount”). At such time that
  Investor makes an election to require Company to pay to it the Cash Settlement
  Amount, such obligation of Company shall be a valid and binding obligation of
  Company and shall for all purposes be deemed to be a debt obligation of Company
  owed to Investor as of the date it makes such election. Upon Company’s payment
  of the Cash Settlement Amount to Investor, the Warrant shall be deemed to have
  been satisfied and Investor shall return the original Warrant to Company for cancellation.
  In addition, and for the avoidance of doubt, even if Company could not deliver
  the number of Warrant Shares deliverable to Investor if it were to exercise
  this Warrant with respect to the remaining number of Warrant Shares on the date
  of repayment due to the provisions of Section 2.2, the provisions of Section 2.2 will not apply with respect to Company’s
  payment of the Cash Settlement Amount.

(f)               
  Investor shall be deemed to be the holder of the
  Warrant Shares issuable to it in accordance with the provisions of this Section
  2.1 on the Exercise Date.

3

2.2.            Ownership Limitation. Notwithstanding anything to the contrary contained in this Warrant
  or the other Transaction Documents, if at any time Investor shall or would be
  issued shares of Common Stock under any of the Transaction Documents, but such
  issuance would cause Investor (together with its affiliates) to own a number of
  shares exceeding 4.99% of the number of shares of Common Stock outstanding on
  such date (the “Maximum Percentage”), Company must not issue to Investor
  shares of the Common Stock which would exceed the Maximum Percentage. The
  shares of Common Stock issuable to Investor that would cause the Maximum
  Percentage to be exceeded are referred to herein as the “Ownership Limitation Shares”. Company will reserve the Ownership Limitation Shares for the
  exclusive benefit of Investor. From time to time, Investor may notify Company
  in writing of the number of the Ownership Limitation Shares that may be issued
  to Investor without causing Investor to exceed the Maximum Percentage. Upon
  receipt of such notice, Company shall be unconditionally obligated to
  immediately issue such designated shares to Investor, with a corresponding
  reduction in the number of the Ownership Limitation Shares. Notwithstanding the
  forgoing, the term “4.99%” above shall be replaced with “9.99%” at such time as
  the Market Capitalization of the Common Stock is less than $10,000,000.00.
  Notwithstanding any other provision contained herein, if the term “4.99%” is
  replaced with “9.99%” pursuant to the preceding sentence, such change to
  “9.99%” shall be permanent. For purposes of this Warrant, the term “Market
    Capitalization of the Common Stock” shall mean the product equal to (A) the
  average VWAP of the Common Stock for the immediately preceding fifteen (15)
  Trading Days, multiplied by (B) the aggregate number of outstanding shares of
  Common Stock as reported on Company’s most recently filed Form 10-Q or Form
  10-K.  By written notice to Company, Investor may increase, decrease or waive
  the Maximum Percentage as to itself but any such waiver will not be effective
  until the 61st day after delivery thereof. The foregoing 61-day notice
  requirement is enforceable, unconditional and non-waivable and shall apply to
  all affiliates and assigns of Investor. 

3.                  Mutilation or Loss of Warrant. Upon receipt by Company of evidence satisfactory to it of the
  loss, theft, destruction or mutilation of this Warrant, and (in the case of
  loss, theft or destruction) receipt of reasonably satisfactory indemnification,
  and (in the case of mutilation) upon surrender and cancellation of this
  Warrant, Company will execute and deliver to Investor a new Warrant of like
  tenor and date and any such lost, stolen, destroyed or mutilated Warrant shall
  thereupon become void.

4.                  Rights of Investor. Investor shall not, by virtue of this Warrant alone, be entitled
  to any rights of a stockholder in Company, either at law or in equity, and the
  rights of Investor with respect to or arising under this Warrant are limited to
  those expressed in this Warrant and are not enforceable against Company except
  to the extent set forth herein.

5.                  Certain Adjustments.

5.1.            Capital Adjustments.  If Company shall at any time prior to the expiration of this
  Warrant subdivide the Common Stock, by split-up or stock split, or
  otherwise, or combine its Common Stock, or issue additional shares of its
  Common Stock as a dividend, the number of Warrant Shares issuable upon the
  exercise of this Warrant shall forthwith be automatically increased
  proportionately in the case of a subdivision, split or stock dividend, or
  proportionately decreased in the case of a combination.  Appropriate
  adjustments shall also be made to the Exercise Price and other applicable
  amounts, but the aggregate purchase price payable for the total number of
  Warrant Shares purchasable under this Warrant (as adjusted) shall remain the
  same. Any adjustment under this Section 5.1 shall become effective
  automatically at the close of business on the date the subdivision or
  combination becomes effective, or as of the record date of such dividend, or in
  the event that no record date is fixed, upon the making of such dividend.

4

5.2.            Reclassification, Reorganization and
  Consolidation. In case of any reclassification,
  capital reorganization, or change in the capital stock of Company (other than
  as a result of a subdivision, combination, or stock dividend provided for in
  Section 5.1 above), then Company shall make appropriate provision so that
  Investor shall have the right at any time prior to the expiration of this
  Warrant to purchase, at a total price equal to that payable upon the exercise
  of this Warrant, the kind and amount of shares of stock and other securities
  and property receivable in connection with such reclassification,
  reorganization, or change by a holder of the same number of shares of Common
  Stock as were purchasable by Investor immediately prior to such
  reclassification, reorganization, or change.  In any such case appropriate
  provisions shall be made with respect to the rights and interest of Investor so
  that the provisions hereof shall thereafter be applicable with respect to any
  shares of stock or other securities and property deliverable upon exercise
  hereof, and appropriate adjustments shall be made to the purchase price per
  Warrant Share payable hereunder, provided the aggregate purchase price shall
  remain the same.

5.3.            Notice of Adjustment. Without limiting any other provision contained herein, when any
  adjustment is required to be made in the number or kind of shares purchasable
  upon exercise of this Warrant, or in the Exercise Price, pursuant to the terms
  hereof, Company shall promptly notify Investor of such event and of the number
  of Warrant Shares or other securities or property thereafter purchasable upon
  exercise of this Warrant.

6.                  Certificate as to Adjustments. In each case of any adjustment or readjustment in the shares of
  Common Stock issuable on the exercise of this Warrant, Company at its expense
  will promptly cause its Chief Financial Officer or other appropriate designee
  to compute such adjustment or readjustment in accordance with the terms of this
  Warrant and prepare a certificate setting forth such adjustment or readjustment
  and showing in detail the facts upon which such adjustment or readjustment is
  based, including a statement of the Exercise Price and the number of shares of
  Common Stock to be received upon exercise of this Warrant, in effect
  immediately prior to such adjustment or readjustment and as adjusted or
  readjusted as provided in this Warrant. Company will forthwith mail a copy of
  each such certificate to Investor and any Warrant Agent (as defined below)
  appointed pursuant to Section 8 hereof.  Nothing in this Section 6 shall be
  deemed to limit any other provision contained herein.

7.                  Transfer to Comply with the Securities Act. This Warrant, and the Warrant Shares, have not been registered
  under the 1933 Act. None of the Warrant Shares may be sold, transferred,
  pledged or hypothecated without (a) an effective registration statement under
  the 1933 Act relating to such security or (b) an opinion of counsel reasonably
  satisfactory to Company that registration is not required under the 1933 Act; provided,
    however, that the foregoing restrictions on transfer shall not apply to the
  transfer of any security to an affiliate of Investor. Until such time as
  registration has occurred under the 1933 Act, each certificate for this Warrant
  and any Warrant Shares shall contain a legend, in form and substance
  satisfactory to counsel for Company, setting forth the restrictions on transfer
  contained in this Section 7. Any such transfer shall be accompanied by a
  transferor assignment substantially in the form attached to this Warrant as Exhibit
    B (the “Transferor Assignment”), executed by the transferor and the
  transferee and submitted to Company. Upon receipt of the duly executed
  Transferor Assignment, Company shall register the transferee thereon as the new
  holder on the books and records of Company and such transferee shall be deemed
  a “registered holder” or “registered assign” for all purposes hereunder, and
  shall have all the rights of Investor.

8.                  Warrant Agent.
  Company may, by written notice to Investor, appoint an agent (a “Warrant
    Agent”) for the purpose of issuing shares of Common Stock on the exercise
  of this Warrant pursuant hereto, exchanging this Warrant 

5

pursuant hereto, and
  replacing this Warrant pursuant hereto, or any of the foregoing, and thereafter
  any such issuance, exchange or replacement, as the case may be, shall be made
  at such office by such Warrant Agent.

9.                  Transfer on Company’s Books. Until this Warrant is transferred on the books of Company, Company
  may treat Investor as the absolute owner hereof for all purposes,
  notwithstanding any notice to the contrary.

10.              Notices.  Any
  notice required or permitted hereunder shall be given in the manner provided in
  the subsection titled “Notices” in the Purchase Agreement, the terms of which
  are incorporated herein by reference.

11.              Supplements and Amendments; Whole Agreement. This Warrant may be amended or supplemented only by an instrument
  in writing signed by the parties hereto. This Warrant, together with the
  Purchase Agreement and all the other Transaction Documents, taken together,
  contain the full understanding of the parties hereto with respect to the
  subject matter hereof and thereof and there are no representations, warranties,
  agreements or understandings with respect to the subject matter hereof and
  thereof other than as expressly contained herein and therein.

12.              Governing Law. 
  This Warrant shall be governed by and interpreted in accordance with the laws
  of the State of Utah, without giving effect to the principles thereof regarding
  the conflict of laws. 

13.              Waiver of Jury Trial. COMPANY IRREVOCABLY WAIVES ANY AND ALL
  RIGHTS IT MAY HAVE TO DEMAND THAT ANY ACTION, PROCEEDING OR COUNTERCLAIM
  ARISING OUT OF OR IN ANY WAY RELATED TO THIS WARRANT OR THE RELATIONSHIPS OF
  THE PARTIES HERETO BE TRIED BY JURY.  THIS WAIVER EXTENDS TO ANY AND ALL RIGHTS
  TO DEMAND A TRIAL BY JURY ARISING UNDER COMMON LAW OR ANY APPLICABLE STATUTE,
  LAW, RULE OR REGULATION. FURTHER, COMPANY ACKNOWLEDGES THAT IT IS KNOWINGLY AND
  VOLUNTARILY WAIVING ITS RIGHT TO DEMAND TRIAL BY JURY.

14.              Purchase Agreement; Arbitration of Disputes;
  Calculation Disputes. This Warrant is subject to
  the terms, conditions and general provisions of the Purchase Agreement and the
  other Transaction Documents, including without limitation the Arbitration
  Provisions set forth as an Exhibit to the Purchase Agreement. In addition, notwithstanding the Arbitration Provisions, in the case of a dispute as to any Calculations, such
  dispute will be resolved in the manner set forth in the Purchase Agreement.

15.              Remedies.  The
  remedies at law of Investor under this Warrant in the event of any default or
  threatened default by Company in the performance of or compliance with any of
  the terms of this Warrant are not and will not be adequate and, without limiting
  any other remedies available to Investor in the Transaction Documents, at law
  or equity, to the fullest extent permitted by law, such terms may be
  specifically enforced by a decree for the specific performance of any agreement
  contained herein or by an injunction against a violation of any of the terms
  hereof or otherwise.

16.              Counterparts.
  This Warrant may be executed in any number of counterparts and each of such
  counterparts shall for all purposes be deemed to be an original, and all such
  counterparts shall together constitute but one and the same instrument.
  Signatures delivered via facsimile or email shall be considered original
  signatures for all purposes hereof.

6

17.              Attorneys’ Fees. 
  In the event of any arbitration, litigation or dispute arising from this
  Warrant, the parties agree that the party who is awarded the most money shall
  be deemed the prevailing party for all purposes and shall therefore be entitled
  to an additional award of the full amount of the attorneys’ fees and
  expenses paid by said prevailing party in connection with arbitration or
  litigation without reduction or apportionment based upon the individual claims
  or defenses giving rise to the fees and expenses. Nothing herein
  shall restrict or impair an arbitrator’s or a court’s power to award fees and
  expenses for frivolous or bad faith pleading.

18.              Severability.
  Whenever possible, each provision of this Warrant shall be interpreted in such
  a manner as to be effective and valid under applicable law, but if any
  provision of this Warrant shall be invalid or unenforceable in any
  jurisdiction, such provision shall be modified to achieve the objective of the
  parties to the fullest extent permitted and such invalidity or unenforceability
  shall not affect the validity or enforceability of the remainder of this
  Warrant or the validity or enforceability of this Warrant in any other
  jurisdiction. 

19.              Time of the Essence. Time is expressly made of the essence with respect to each and
  every provision of this Warrant.

20.              Descriptive Headings.  Descriptive headings of the sections of this Warrant are inserted
  for convenience only and shall not control or affect the meaning or
  construction of any of the provisions hereof.

[Remainder of page intentionally left
  blank; signature page follows]

7

IN WITNESS WHEREOF, Company has caused this Warrant to be duly
  executed by an officer thereunto duly authorized as of the Issue Date.

	 	
COMPANY:

        HOMELAND RESOURCES LTD.

            /s/
        David St. James

        By:                                                                               

        Printed Name: David St. James

        Title:    Treasurer
          & Secretary

[Signature Page to Warrant]

EXHIBIT A

NOTICE OF EXERCISE OF WARRANT

	TO:	HOMELAND RESOURCES LTD.

      ATTN: _______________

      VIA FAX TO: (    )______________ EMAIL: ______________ 

The
  undersigned hereby irrevocably elects to exercise the right, represented by the
  Warrant to Purchase Shares of Common Stock dated as of January 22, 2015 (the “Warrant”),
  to purchase                   shares of the common stock, $0.0001 par
  value (“Common Stock”), of HOMELAND RESOURCES LTD., and tenders herewith
  payment in accordance with Section 2 of the Warrant, as follows:

	_______ 	CASH: $__________________________ = (Exercise Price x Warrant Shares) 

	_______	Payment is being made by:

      _____              enclosed check

      _____              wire transfer

      _____              other 

	_______ 	CASHLESS EXERCISE: 

	 	 Net number of Warrant Shares to be issued to Investor: ______*

* X = Y
  (A‐B)

        A

	 	Where	X =	 the number of Warrant Shares to be
      issued to Investor.
	 	 	 	 
	 	 	Y =	the number of Warrant Shares
      that the Investor elects to purchase under this Warrant (at the date of such
      calculation).
	 	 	 	 
	 	 	A =	 the
      Closing Price (on the date two Trading Days prior to the Exercise Date).
	 	 	 	 
	 	 	B =	 Exercise Price (as adjusted to
      the date of such calculation).

Capitalized terms used but not otherwise defined herein shall have
  the meanings ascribed to them in the Warrant.

It is the intention of Investor to comply with the provisions of
  Section 2.2 of the Warrant regarding certain limits on Investor’s right to
  receive shares thereunder. Investor believes this exercise complies with the
  provisions of such Section 2.2. Nonetheless, to the extent that, pursuant to
  the exercise effected hereby, Investor would receive more shares of Common
  Stock than permitted under Section 2.2, Company shall not be obligated and
  shall not issue to Investor such excess shares until such time, if ever, that
  Investor could receive such excess shares without violating, and in full compliance
  with, Section 2.2 of the Warrant.

As contemplated by the Warrant, this Notice of Exercise is being
  sent by email or by facsimile to the fax number and officer indicated above.

  Exhibit A to Warrant, Page 1

If this Notice of Exercise represents the full exercise of the
  outstanding balance of the Warrant, Investor will surrender (or cause to be
  surrendered) the Warrant to Company at the address indicated above by express
  courier within five (5) Trading Days after the Warrant Shares to be delivered
  pursuant to this Notice of Exercise have been delivered to Investor.

To the extent the Warrant Shares are not able to be delivered to
  Investor via the DWAC system, please deliver certificates representing the Warrant
  Shares to Investor via reputable overnight courier after receipt of this Notice
  of Exercise (by facsimile transmission or otherwise) to:

	 	 _____________________________________

	 	 _____________________________________

	 	 _____________________________________

Dated:  _____________________

___________________________

  [Name of
  Investor]

By:________________________

  Exhibit A to Warrant, Page 2

EXHIBIT B

FORM OF TRANSFEROR ENDORSEMENT

  (To be signed only on transfer of the Warrant)

For value received, the undersigned hereby sells, assigns, and
  transfers unto the person(s) named below under the heading “Transferees” the
  right represented by the Warrant to Purchase Shares of Common Stock dated as of
  January 22, 2015 (the “Warrant”) to purchase the percentage and number
  of shares of common stock, $0.0001 par value (“Common Stock”), of
  HOMELAND RESOURCES LTD. specified under the headings “Percentage Transferred”
  and “Number Transferred,” respectively, opposite the name(s) of such person(s),
  and appoints each such person attorney-in-fact to transfer the undersigned’s
  respective right on the books of HOMELAND RESOURCES LTD. with full power of
  substitution.

	Transferees	Percentage Transferred	Number Transferred

Dated:___________,
  ______

	 	 ______________________________

	 	[Transferor Name must conform to the name of Investor as specified on the face of the Warrant] 

	 	 By: ___________________________

	 	 Name: _________________________

Signed in the
  presence of:

_________________________

  (Name)

ACCEPTED AND
  AGREED:

_________________________

  [TRANSFEREE]

By:
  _______________________

  Name:
  _____________________

Exhibit B to Warrant, Page 1

 
Exhibit C

Irrevocable Transfer Agent Instructions

HOMELAND RESOURCES LTD.

  3395 S. Jones Boulevard #169

Las Vegas, Nevada 89146

IRREVOCABLE LETTER OF INSTRUCTIONS TO
  TRANSFER AGENT

Date:  January 22, 2015

First American Stock Transfer, Inc.

  4747 North 7Th Street, Suite 170

  Phoenix, Arizona 85014

Re:       Instructions
  to Reserve and Transfer Shares

Ladies and Gentlemen:

Reference is made to that certain Convertible
  Promissory Note dated as of January 22, 2015 (as the same may be amended or
  exchanged from time to time, the “Note”), made by Homeland Resources
  Ltd., a Nevada corporation (“Company”), pursuant to which Company agreed
  to pay to Typenex Co-Investment, LLC, a Utah limited liability company, its
  successors and/or assigns (“Investor”), the aggregate sum of $70,000.00,
  plus interest, fees, and collection costs. The Note was issued pursuant to that
  certain Securities Purchase Agreement dated January 22, 2015, by and between
  Company and Investor (the “Purchase Agreement”, and together with the
  Note, the Warrant (as defined below), and all other documents entered into in
  conjunction therewith, including any amendments thereto, the “Transaction
    Documents”). Pursuant to the terms of the Note, the Note may be converted
  into shares of the common stock, par value $0.0001 per share, of Company (the “Common
    Stock”) (the shares of Common Stock issuable upon any conversion or
  otherwise under the Note, the “Conversion Shares”).

Reference is also made to that certain Warrant
  to Purchase Shares of Common Stock dated January 22, 2015 (as the same may be
  amended or exchanged from time to time, the “Warrant”), issued by
  Company in connection with the Purchase Agreement, pursuant to which Investor
  may purchase shares of Common Stock. All shares of Common Stock that may be
  purchased under the Warrant or that Company is otherwise required to issue to
  Investor or its broker upon any exercise of the Warrant are hereinafter
  referred to as the “Warrant Shares”. The Conversion Shares, together
  with the Warrant Shares, are hereinafter referred to as the “Shares”.

Pursuant to the terms of the Purchase
  Agreement, until all of Company’s obligations under the Purchase Agreement and
  the Note are paid and performed in full and the Warrant is exercised in full
  (or otherwise expired), Company has agreed to at all times establish and maintain
  a reserve of shares of authorized but unissued Common Stock equal to the amount
  calculated as follows (such calculated amount is referred to herein as the “Share
    Reserve”): (i) three (3) times the higher of (1) the Outstanding Balance
  (as defined in and determined pursuant to the Note) divided by the Lender
  Conversion Price (as defined in and determined pursuant to the Note), and (2)
  the Outstanding Balance divided by the Market Price (as defined in and
  determined pursuant to the Note), plus (ii) the number of shares that
  may be issued under the Warrant that would be required to be delivered to
  Investor in order to effect a complete exercise of the Warrant pursuant to the
  terms thereof.

This irrevocable letter of instructions (this
  “Letter”) shall serve as the authorization and direction of Company to
  First American Stock Transfer, Inc., or its successors, as Company’s transfer
  agent (hereinafter, “you” or “your”), to reserve shares of Common
  Stock and to issue (or where relevant, to 

1

 
reissue in the name of Investor)
  shares of Common Stock to Investor or its broker, upon conversion of the Note
  or exercise of the Warrant, as follows: 

1.                 
  From and after the date hereof and until all of
  Company’s obligations under the Purchase Agreement and the Note are paid and performed
  in full and the Warrant is exercised in full (or otherwise expired), (a) you
  shall establish a reserve of shares of authorized but unissued Common Stock in
  an amount not less than 2,000,000 shares (the “Transfer Agent Reserve”),
  (b) you shall maintain and hold the Transfer Agent Reserve for the exclusive
  benefit of Investor, (c) you shall issue the shares of Common Stock held in the
  Transfer Agent Reserve to Investor or its broker only (subject to the
  immediately following clause (d)), (d) when you issue shares of Common Stock to
  Investor or its broker under the Note or Warrant pursuant to the other
  instructions in this Letter, you shall issue such shares from Company’s
  authorized and unissued shares of Common Stock to the extent the same are available
  and not from the Transfer Agent Reserve unless and until there are no
  authorized shares of Common Stock available for issuance other than those held
  in the Transfer Agent Reserve, at which point, and upon your receipt of written
  authorization from Investor, you shall then issue any shares of Common Stock
  deliverable to Investor under the Note or the Warrant from the Transfer Agent
  Reserve, (e) you shall not otherwise reduce the Transfer Agent Reserve under
  any circumstances, unless Investor delivers to you written pre-approval of such
  reduction, and (f) you shall immediately add shares of Common Stock to the
  Transfer Agent Reserve in increments of 500,000 shares as and when requested by
  Company or Investor in writing from time to time, provided that such incremental
  increases do not cause the Transfer Agent Reserve to exceed the Share Reserve.

2.                 
  You shall issue the Conversion Shares to
  Investor or its broker in accordance with Paragraph 4 upon a conversion of all or any portion of
  the Note, upon delivery to you of (a) a duly executed Lender Conversion Notice
  substantially in the form attached hereto as Exhibit A (a “Lender Conversion Notice”), a duly executed Installment Notice substantially in
  the form attached hereto as Exhibit B (an “Installment Notice”),
  and/or a True-Up Notice substantially in the form attached hereto as Exhibit
    C (a “True-Up Notice”, and together with a Lender Conversion Notice
  and an Installment Notice, a “Conversion Notice”), and (b) either (i)
  written confirmation from Investor that the Conversion Shares are registered
  pursuant to an effective registration statement under the Securities Act of
  1933, as amended (the “1933 Act”), or (ii) a legal opinion from either
  Investor’s or Company’s counsel that the issuance of the Conversion Shares to
  Investor is exempt from registration under the 1933 Act or otherwise as to the
  free transferability of the Conversion Shares, dated within ninety (90) days
  from the date of conversion; provided, however, that (assuming the
  Conversion Shares are not registered for resale under the 1933 Act) unless such
  opinion of counsel indicates that, pursuant to Rule 144 promulgated under the
  1933 Act (“Rule 144”) or any other available exemption under the 1933
  Act, certificates may be issued or delivered without restrictive legend in
  accordance with the applicable securities laws of the United States, then any
  certificates for such Conversion Shares shall bear the following restrictive
  legend:

  THESE SECURITIES HAVE NOT
    BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
    LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF AN
    EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL IN
    FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE
    TRANSACTIONS OR OTHER EVIDENCE ACCEPTABLE TO COMPANY THAT SUCH REGISTRATION IS
    NOT REQUIRED, OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

This Letter and the
  Transaction Documents have been approved by resolution of Company’s board of
  directors (the “Board Resolution”). Pursuant to the Board Resolution,
  all of the Conversion Shares are authorized to be issued to Investor pursuant
  to a Conversion Notice as long as it is accompanied by an

2

 
issuance resolution
  signed by an authorized officer of the Company. For the avoidance of doubt,
  this Letter is your authorization and instruction by Company to issue the
  Conversion Shares pursuant to this Letter. You shall rely exclusively on the
  instructions in this Letter and shall have no liability for relying on any
  Conversion Notice provided by Investor. Any Conversion Notice delivered
  hereunder shall constitute an irrevocable instruction to you to process such
  notice or notices in accordance with the terms thereof, without any further
  direction or inquiry. Such notice or notices may be transmitted to you by fax,
  email, or any commercially reasonable method.

3.                 
  You shall issue the Warrant Shares to Investor
  or its broker in accordance with Paragraph 4 upon exercise of all or any portion of the
  Warrant, upon delivery to you of (a) a duly executed Notice of Exercise
  substantially in the form attached hereto as Exhibit D (the “Notice
    of Exercise”), and (b) either (i) written confirmation from Investor that
  the Warrant Shares are registered pursuant to an effective registration
  statement under the 1933 Act, or (ii) a legal opinion from either Investor’s or
  Company’s counsel that the issuance of the Warrant Shares to Investor is exempt
  from registration under the 1933 Act or otherwise as to the free
  transferability of the Warrant Shares, dated within ninety (90) days from the
  exercise date; provided, however, that (assuming the Warrant Shares are
  not registered for resale under the 1933 Act) unless such opinion of counsel
  indicates that, pursuant to Rule 144 or any other available exemption under the
  1933 Act, certificates may be issued or delivered without restrictive legend in
  accordance with the applicable securities laws of the United States, then any
  certificates for such Warrant Shares shall bear the following restrictive
  legend:

  THESE SECURITIES
    HAVE NOT BEEN REGISTERED UNDER THE
    SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY
    NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
    STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL IN
    FORM, SUBSTANCE AND SCOPE CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE TRANSACTIONS OR OTHER EVIDENCE ACCEPTABLE TO COMPANY THAT
    SUCH REGISTRATION IS NOT REQUIRED, OR UNLESS SOLD PURSUANT TO RULE 144 UNDER
    SAID ACT.

You shall rely
  exclusively on the instructions in this Letter and shall have no liability for
  relying on any Notice of Exercise provided by Investor as long as it is
  accompanied by an issuance resolution signed by an authorized officer of the
  Company. Any Notice of Exercise delivered hereunder shall constitute
  irrevocable instructions to you to process such notice or notices in accordance
  with the terms thereof, without any further direction or inquiry. Such notice
  or notices may be transmitted to you by fax, email, or any commercially
  reasonable method.

4.                 
  Upon your receipt of a Conversion Notice or
  Notice of Exercise pursuant to Paragraph 2 and/or Paragraph 3 above, you shall, within three (3) Trading
  Days (as defined below) thereafter, (a) if you are eligible to participate in
  the Depository Trust Company (“DTC”) Fast Automated Securities Transfer service,
  and the Common Stock is eligible to be transferred electronically with DTC
  through the Deposit and Withdrawal at Custodian service (“DWAC Eligible”),
  credit such aggregate number of DWAC Eligible shares of the Common Stock to
  Investor’s or its designee’s balance account with DTC, provided Investor
  identifies its bank or broker (by providing its name and DTC participant
  number) and causes its bank or broker to initiate such DWAC Eligible
  transaction, or (b) if the Common Stock is not then DWAC Eligible, issue and
  deliver to Investor or its broker (as specified in the applicable Conversion
  Notice or Notice of Exercise), via reputable overnight courier, to the address
  specified in the Conversion Notice or the Notice of Exercise, as the case may
  be, a certificate, registered in the name of Investor or its designee,
  representing such aggregate number of shares of Common Stock as have been
  requested by Investor to be transferred in the Conversion Notice or the Notice
  of Exercise, as applicable. For purposes hereof, “Trading Day” shall
  mean any day on which the New York Stock Exchange is open for 

3

 
customary
  trading. Notwithstanding any other provision hereof, Company and Investor
  understand that you shall not be required to perform any issuance or transfer
  of Shares if (y) such an issuance or transfer of Shares is in violation of any
  state or federal securities laws or regulations, or (z) the issuance or
  transfer of Shares is prohibited or stopped as required or directed by a court
  order. Additionally, Company and Investor understand
  that you shall not be required to perform any issuance or transfer of Shares if
  Company is in default of its payment obligations under its agreement with you; provided,
    however, that in such case Investor shall have the right to pay the
  applicable issuance or transfer fee on behalf of Company and upon payment of
  the issuance or transfer fee by Investor, you shall be obligated to make the
  requested issuance or transfer.

5.                 
  You understand that a delay in the delivery of
  Shares hereunder could result in economic loss to Investor and that time is of
  the essence in your processing of each Conversion Notice and Notice of
  Exercise. 

6.                 
  To the extent the applicable Shares being issued
  or reissued will be certificated, the certificates representing the Shares to
  be issued or reissued pursuant to Paragraph 2 or Paragraph 3 above shall (a) be
  in the name of Investor, (b) not bear any legend restricting transfer, (c) not
  be subject to any stop-transfer restrictions, and (d) shall otherwise be freely
  transferable on the books and records of Company, if:

6.1.           
  the Conversion Notice or Notice of Exercise, as
  applicable, is accompanied by the opinion of counsel described in Paragraph 2
  or Paragraph 3 opining that, pursuant to Rule 144 or any other available
  exemption under the 1933 Act, the certificates may be issued or delivered
  without restrictive legend in accordance with the applicable securities laws of
  the United States;

6.2.           
  the Conversion Notice or Notice of Exercise, as
  applicable, is accompanied by a shareholder representation letter providing
  that (a) the date on which the Conversion Notice or Notice of Exercise is
  submitted to you is (i) more than twelve (12) months following the date the
  Note or Warrant was issued or (ii) more than six (6) months (but not more than
  twelve (12) months) following the date the Note or Warrant was issued, and (b)
  the holder is not an “affiliate”, as defined in Rule 144 (a)(i) under the 1933
  Act, of Company; and

6.3.           
  only to the extent Paragraph 6.2(a)(ii) immediately above is applicable,
  Company is subject to the reporting requirements of Sections 13 or 15(d) of the
  Securities Exchange Act of 1934, as amended, and is current in its reporting
  obligations thereunder.

7.                 
  You are hereby authorized and directed to
  promptly disclose to Investor, after Investor’s request from time to time, the
  total number of shares of Common Stock issued and outstanding and the total
  number of shares that are authorized but unissued and unreserved.

8.                 
  Company hereby confirms to you and to Investor
  that no instruction other than as contemplated herein (including instructions
  to increase the Transfer Agent Reserve as necessary pursuant to Paragraph 1(f)
  above) will be given to you by Company with respect to the matters referenced
  herein. Company hereby authorizes you, and you shall be obligated, to disregard
  any contrary instruction received by or on behalf of Company or any other
  person purporting to represent Company. Notwithstanding the foregoing, you
  shall not be obligated to make an issuance of shares pursuant to this Letter until
  you have received written authorization for such issuance from an officer of
  the Company.  

9.                 
  Company hereby agrees not to change its transfer
  agent (including without limitation First American Stock Transfer, Inc.)
  without first (i) providing Investor with at least 30-days’ written notice of
  such proposed change, and (ii) obtaining Investor’s written consent to such
  proposed change. 

4

 
Any such consent is conditioned upon the new transfer agent
  executing an irrevocable letter of instructions substantially similar to this
  Letter so that such transfer agent is bound by the same terms set forth herein.
  You agree not to help facilitate any change to Company’s transfer agent without
  first receiving such written consent to such change from Investor.

10.             
  Company acknowledges that Investor is relying on
  the representations and covenants made by Company in this Letter and that the
  representations and covenants contained in this Letter constitute a material
  inducement to Investor to make the loan evidenced by the Note. Company further
  acknowledges that without such representations and covenants of Company,
  Investor would not have made the loan to Company evidenced by the Note.

11.             
  Company shall indemnify you and your officers,
  directors, principals, partners, agents and representatives, and hold each of
  them harmless from and against any and all loss, liability, damage, claim or
  expense (including the reasonable fees and disbursements of its attorneys)
  incurred by or asserted against you or any of them arising out of or in
  connection with the instructions set forth herein, the performance of your
  duties hereunder and otherwise in respect hereof, including the costs and
  expenses of defending yourself or themselves against any claim or liability
  hereunder, except that Company shall not be liable hereunder as to matters in
  respect of which it is determined that you have acted with gross negligence or
  in bad faith.

12.             
  Investor is an intended third-party beneficiary
  of this Letter. The parties hereto specifically acknowledge and agree that in
  the event of a breach or threatened breach by a party hereto of any provision
  hereof, Investor will be irreparably damaged, and that damages at law would be
  an inadequate remedy if this Letter were not specifically enforced. Therefore,
  in the event of a breach or threatened breach of this Letter, Investor shall be
  entitled, in addition to all other rights or remedies, to an injunction
  restraining such breach, without being required to show any actual damage or to
  post any bond or other security, and/or to a decree for a specific performance
  of the provisions of this Letter.

13.             
  This Letter shall be fully binding and
  enforceable against Company even if it is not signed by Company’s transfer
  agent. If Company takes (or fails to take) any action contrary to this Letter,
  then such action or inaction will constitute a default under the Transaction
  Documents. Although no additional direction is required by Company, any refusal
  by Company to immediately confirm this Letter and the instructions contemplated
  herein to Company’s transfer agent will constitute a default hereunder and
  under the Transaction Documents.

14.             
  Whenever possible, each provision of this Letter
  shall be interpreted in such a manner as to be effective and valid under
  applicable law, but if any provision of this Letter shall be invalid or
  unenforceable in any jurisdiction, such provision shall be modified to achieve
  the objective of the parties to the fullest extent permitted and such
  invalidity or unenforceability shall not affect the validity or enforceability
  of the remainder of this Letter or the validity or enforceability of this
  Letter in any other jurisdiction.

15.             
  By signing below, each individual executing this
  Letter on behalf of an entity represents and warrants that he or she has
  authority to so execute this Letter on behalf of such entity and thereby bind
  such entity to the terms and conditions hereof. 

16.             
  This Letter is governed by Utah law. By signing
  below, each party to this Letter represents and warrants that such party has
  received good and valuable consideration in exchange for executing this Letter.

5

 
17.             
  This Letter is subject to the Arbitration
  Provisions (as defined in the Purchase Agreement) set forth as an exhibit to
  the Purchase Agreement, which you acknowledge having received and reviewed by
  your signature below. Each party consents to and expressly agrees that
  exclusive venue for Arbitration (as defined in the Purchase Agreement) of any
  dispute arising out of or relating to this Letter or the relationship of the
  parties or their affiliates shall be in Salt Lake County or Utah County, Utah.

[Remainder of page intentionally left
  blank; signature page follows]

6

  
	 	Very
      truly yours,

HOMELAND RESOURCES LTD.

        By:                                                      

        Name:                                                  

        Title:                                                    

ACKNOWLEDGED AND AGREED:

INVESTOR:

TYPENEX
  CO-INVESTMENT, LLC

By: Red Cliffs
  Investments, Inc., its Manager

      By:                                                             

              John M. Fife, President

TRANSFER AGENT:

FIRST
  AMERICAN STOCK TRANSFER, INC.

By:                                                       

  Name:                                                  

  Title:                                                                

Attachments:

	Exhibit A	Form of Lender Conversion Notice 

	Exhibit B	Form of Installment Notice 

	Exhibit C	Form of True-Up Notice 

	Exhibit D	Form of Notice of Exercise 

[Signature Page to Irrevocable Letter of Instructions to Transfer Agent]

 
Exhibit D

Secretary’s Certificate

HOMELAND RESOURCES LTD.

SECRETARY’S CERTIFICATE

I, ____________________, hereby certify that I
  am the duly elected, qualified and acting Secretary of Homeland Resources Ltd.,
  a Nevada corporation (“Company”), and I am authorized to execute this Secretary’s
  Certificate (this “Certificate”) on behalf of Company. This Certificate
  is delivered in connection with that certain Securities Purchase Agreement
  dated January 22, 2015 (the “Purchase Agreement”), by and between
  Company and Typenex Co-Investment, LLC, a Utah limited liability company.  

Solely in my capacity as Secretary, I certify
  that Schedule 1 attached hereto is a true, accurate and complete copy of
  all of the resolutions adopted by the Board of Directors of Company (the “Resolutions”)
  approving and authorizing the execution, delivery and performance of the
  Purchase Agreement and related documents to which Company is a party on the
  date hereof, and the transactions contemplated thereby. Such Resolutions have
  not been amended, rescinded or modified since their adoption and remain in
  effect as of the date hereof.

IN WITNESS
  WHEREOF, I have made this Secretary’s Certificate effective as of January 22,
  2015.

	 	Homeland
      Resources Ltd.

      ____________________________________

      Printed
      Name:                                                             
Title: Secretary

1 | Page

 
Schedule 1

BOARD
  RESOLUTIONS

[attached]

2 | Page

 
HOMELAND RESOURCES LTD.
RESOLUTIONS ADOPTED BY THE BOARD OF DIRECTORS

________________________

Effective January 22, 2015

________________________

APPROVAL
  OF FINANCING

WHEREAS, the Board of Directors (the “Board”)
  of Homeland Resources Ltd., a Nevada corporation (“Company”), has
  determined that it is in the best interests of Company to seek financing in the
  amount of $60,000.00 through the issuance and sale to Typenex Co-Investment,
  LLC, a Utah limited liability company (the “Investor”), of a Convertible
  Promissory Note and a Warrant to Purchase Shares of Common Stock (the “Financing”);

WHEREAS, the terms of the Financing are
  reflected in a Securities Purchase Agreement substantially in the form attached
  hereto as Exhibit A (the “Purchase Agreement”), a Convertible
  Promissory Note issued by Company in the original principal amount of 
  $70,000.00 substantially in the form attached hereto as Exhibit B (the “Company
    Note”), a Warrant to Purchase Shares of Common Stock substantially in the
  form attached hereto as Exhibit C (the “Warrant”), an Irrevocable
  Letter of Instructions to Transfer Agent substantially in the form attached
  hereto as Exhibit D, a Share Issuance Resolution substantially in the
  form attached hereto as Exhibit E (“Share Issuance Resolution”),
  and all other agreements, certificates, instruments and documents being or to
  be executed and delivered under or in connection with the Financing
  (collectively, the “Financing Documents”); and

WHEREAS, the Board, having received and
  reviewed the Financing Documents, believes that it is in the best interests of
  Company and the stockholders to approve the Financing and the Financing
  Documents and authorize the officers of Company to execute such documents.

NOW, THEREFORE, BE IT:

RESOLVED, that the Financing is hereby
  approved and determined to be in the best interests of Company and its
  stockholders;

RESOLVED FURTHER, that the form, terms and
  provisions of the Financing Documents (including all exhibits, schedules and
  other attachments thereto) are hereby ratified, confirmed and approved;

RESOLVED FURTHER, that upon the issuance and
  delivery thereof in accordance with the Purchase Agreement; the Company Note
  and the Warrant shall be duly and validly issued;

RESOLVED FURTHER, that upon the issuance and
  delivery thereof in accordance with the Purchase Agreement, the Company Note
  and the Warrant; the Conversion Shares (as defined in the Company Note) and the
  Warrant Shares (as defined in the Warrant) shall be duly and validly issued,
  fully paid for and non-assessable;

RESOLVED FURTHER, that Company shall take all
  action necessary to at all times have authorized and reserved for the purpose
  of issuance under the Company Note and the Warrant such number of shares of
  Company’s common stock required under the Purchase Agreement (the “Share
    Reserve”);

Page 1 of Board Resolutions

 
RESOLVED FURTHER, that the fixed number of
  shares of Common Stock set forth in the Share Issuance Resolution to be
  reserved by the transfer agent (the “Transfer Agent Reserve”) is not
  meant to limit or restrict in any way the resolutions contained herein,
  including without limitation the calculation of the Share Reserve under the
  Purchase Agreement, as required from time to time; 

RESOLVED FURTHER, that any director or officer
  of Company is authorized to instruct the transfer agent to increase the
  Transfer Agent Reserve in increments of 500,000 shares, from time to time, to
  correspond to the Share Reserve; provided, however, that any decrease in
  the Transfer Agent Reserve will require the prior written consent of Investor;

RESOLVED FURTHER, that in the event of any
  conflict between these resolutions and the Share Issuance Resolution, these
  resolutions shall control;

RESOLVED FURTHER, that with respect to each
  Conversion (as defined in the Company Note) under the Company Note, the
  reduction in the Outstanding Balance (as defined in the Company Note and as the
  same may increase or decrease pursuant to the terms of the Company Note) in an
  amount equal to the applicable Conversion Amount (as defined in the Company
  Note) being converted into Conversion Shares shall constitute fair and adequate
  consideration to Company for the issuance of the applicable Conversion Shares,
  regardless of the Conversion Price (as defined in the Company Note) used to
  determine the number of Conversion Shares deliverable with respect to any
  Conversion;

RESOLVED FURTHER, that with respect to each
  exercise under the Warrant, the Purchase Price (as defined in the Purchase
  Agreement), the Exercise Price (as defined in the Warrant), and the Investor’s
  willingness to finance Company only on the terms set forth in the Financing
  Documents shall constitute fair and adequate consideration to Company for the
  issuance of the applicable Warrant Shares, regardless of the Exercise Price
  used to determine the number of Delivery Shares (as defined in the Warrant)
  deliverable with respect to any exercise of the Warrant;

RESOLVED FURTHER, that each of the officers of
  Company be, and each of them hereby is, authorized to execute and deliver in
  the name of and on behalf of Company, each of the Financing Documents and any
  other related agreements (with such additions to, modifications to, or
  deletions from such documents as the officer approves, such approval to be
  conclusively evidenced by such execution and delivery), to conform Company’s
  minute books and other records to the matters set forth
  in these resolutions, and to take all other actions on behalf of Company as any
  of them deem necessary, required, or advisable with respect to the matters set
  forth in these resolutions;

RESOLVED FURTHER, that the Board hereby
  determines that all acts and deeds previously performed by the Board and other
  officers of Company relating to the foregoing matters prior to the date of
  these resolutions are ratified, confirmed and approved in all respects as the
  authorized acts and deeds of Company; and

RESOLVED FURTHER, that all prior actions or
  resolutions of Company’s directors that are inconsistent with the foregoing are
  hereby amended, corrected and restated to the extent required to be consistent
  herewith.

Page 2 of Board Resolutions

 
******************

EXHIBITS
  ATTACHED TO BOARD RESOLUTIONS:

	Exhibit A	PURCHASE AGREEMENT 

	Exhibit B	COMPANY NOTE 

	Exhibit C	WARRANT 

	Exhibit D	TRANSFER AGENT LETTER 

	Exhibit E	SHARE ISSUANCE RESOLUTION 

[Remainder of page intentionally left
  blank] 

Page 3 of Board Resolutions

 
Exhibit E

Share Issuance Resolution

SHARE ISSUANCE RESOLUTION

  AUTHORIZING THE ISSUANCE OF NEW SHARES OF COMMON
STOCK IN

HOMELAND RESOURCES LTD.

___________________________

Effective January 22, 2015

___________________________

The undersigned, as a qualified officer of
  Homeland Resources Ltd., a Nevada corporation (“Company”), hereby
  certifies that this Share Issuance Resolution is authorized by and consistent
  with the resolutions of Company’s board of directors (“Board Resolutions”)
  regarding (i) that certain Convertible Promissory Note in the face amount of
  $70,000.00 with an original issuance date of January 22, 2015 (the “Note”),
  made by Company in favor of Typenex Co-Investment, LLC, a Utah limited
  liability company, its successors and/or assigns (“Investor”), and (ii)
  that certain Warrant to Purchase Shares of Common Stock issued by Company to
  Investor (the “Warrant”), all pursuant to that certain Securities
  Purchase Agreement dated January 22, 2015, by and between Company and Investor
  (the “Purchase Agreement”).

RESOLVED, that First American Stock Transfer,
  Inc., as transfer agent (including any successor transfer agent, the “Transfer
    Agent”) of shares of Company’s common stock, $0.0001 par value per share (“Common
      Stock”), is authorized to rely upon:

	 	(i) 	a Lender Conversion Notice substantially in the form of Exhibit Aattached hereto, whether an original or a copy (the “Lender Conversion Notice”), 

	 	(ii) 	an Installment Notice substantially in the form of Exhibit Battached hereto, whether an original or a copy (the “Installment Notice”), 

	 	(iii) 	a True-Up Notice substantially in the form of Exhibit Cattached hereto, whether an original or a copy (the “True-Up Notice”), and 

	 	(iv) 	a Notice of Exercise of Warrant substantially in the form of Exhibit Dattached hereto, whether an original or a copy (the “Notice of Exercise”), 

in each case without
  any further inquiry, to be delivered to the Transfer Agent from time to time
  either by Company or Investor.

RESOLVED FURTHER, that the Transfer Agent is
  authorized to issue, subject to receipt of an issuance resolution signed by
  authorized officer of Company, the number of:

	 	(i) 	“Lender Conversion Shares” (representing shares of Common Stock) set forth in each Lender Conversion Notice delivered to the Transfer Agent, 

	 	(ii) 	“Installment Conversion Shares” (representing shares of Common Stock) set forth in each Installment Notice delivered to the Transfer Agent, 

	 	(iii) 	“True-Up Shares” (representing shares of Common Stock) set forth in each True-Up Notice delivered to the Transfer Agent, 

	 	(iv) 	“Delivery Shares” (representing shares of Common Stock) set forth in each Notice of Exercise delivered to the Transfer Agent, and 

1

	 	(v) 	all additional shares of Common Stock Company may subsequently instruct the Transfer Agent to issue in connection with any of the foregoing or otherwise under the Note or the Warrant, as the case may be, 

with such shares to be
  issued in the name of Investor, or its successors, transferees, or designees,
  free of any restricted security legend, as permitted by the Note or the
  Warrant, as the case may be.

RESOLVED FURTHER, that consistent with the
  terms of the Purchase Agreement, the Transfer Agent is authorized and directed
  to immediately create a transfer agent share reserve equal to 2,000,000 shares
  of Company’s Common Stock for the benefit of Investor (the “Transfer Agent Reserve”); provided that the Transfer Agent Reserve may increase
  in increments of 500,000 shares from time to time by written instructions
  provided to the Transfer Agent by Company or Investor as required by the
  Purchase Agreement and as contemplated by the Board Resolutions.

RESOLVED FURTHER, that Investor and the
  Transfer Agent may rely upon the more general approvals and authorizations set
  forth in the Board Resolutions, and the Transfer Agent is hereby authorized and
  directed to take those further actions approved under the Board Resolutions.

RESOLVED FURTHER, that Investor must consent
  in writing to any reduction of the Transfer Agent Reserve; provided,
    however, that upon (i) full conversion and/or full repayment of the Note
  and (ii) the complete exercise (or expiration) of the Warrant, the Transfer
  Agent Reserve will terminate thirty (30) days thereafter.

RESOLVED FURTHER, that Company shall indemnify
  the Transfer Agent and its employees against any and all loss, liability,
  damage, claim or expenses incurred by or asserted against the Transfer Agent
  arising from any action taken by the Transfer Agent in reliance upon this Share
  Issuance Resolution. 

Nothing in this Share
  Issuance Resolution shall limit or restrict those resolutions and
  authorizations set forth in the Board Resolutions, including without
  limitation, the calculation from time to time of the Share Reserve (as defined
  in the Purchase Agreement).

The undersigned officer of Company hereby
  certifies that this is a true copy of Company’s Share Issuance Resolution,
  effective as of the date set forth below, and that said resolution has not been
  in any way rescinded, annulled, or revoked, but the same is still in full force
  and effect. 

	_________________

      Officer’s
      Signature 	_________________
Date
	 	 
	_________________

      Printed Name and
      Title	 

2

EXHIBIT A

LENDER CONVERSION NOTICE

[attached]

EXHIBIT B

INSTALLMENT
  NOTICE

[attached]

EXHIBIT C

TRUE-UP
  NOTICE

[attached]

EXHIBIT D 

NOTICE
  OF EXERCISE

[attached]

 
EXHIBIT F

ARBITRATION PROVISIONS

1.     Dispute
Resolution. For purposes of this Exhibit F, the term “Claims”
means any disputes, claims, demands, causes of action, liabilities, damages,
losses, or controversies whatsoever arising from related to or connected with
the transactions contemplated in the Transaction Documents and any
communications between the parties related thereto, including without
limitation any claims of mutual mistake, mistake, fraud, misrepresentation,
failure of formation, failure of consideration, promissory estoppel,
unconscionability, failure of condition precedent, rescission, and any
statutory claims, tort claims, contract claims, or claims to void, invalidate
or terminate the Agreement or any of the other Transaction Documents. The term
“Claims” specifically excludes a dispute over Calculations (as defined in the
Agreement). The parties hereby agree that the arbitration provisions set forth
in this Exhibit F (“Arbitration Provisions”) are binding on the
parties hereto and are severable from all other provisions in the Transaction
Documents. As a result, any attempt to rescind the Agreement or declare the
Agreement or any other Transaction Document invalid or unenforceable for any
reason is subject to these Arbitration Provisions. These Arbitration Provisions
shall also survive any termination or expiration of the Agreement.

2.     Arbitration.
Except as otherwise provided herein, all Claims must be submitted to
arbitration (“Arbitration”) to be conducted in Salt Lake County, Utah or
Utah County, Utah and pursuant to the terms set forth in these Arbitration
Provisions. The parties agree that the award of the arbitrator shall be final
and binding upon the parties; shall be the sole and exclusive remedy between
them regarding any Claims, counterclaims, issues, or accountings presented or
pleaded to the arbitrator; and shall promptly be payable in United States
dollars free of any tax, deduction or offset (with respect to monetary awards).
Any costs or fees, including without limitation attorneys’ fees, incident to
enforcing the arbitrator’s award shall, to the maximum extent permitted by law,
be charged against the party resisting such enforcement. The award shall
include Default Interest (as defined in the Note) both before and after the
award. Judgment upon the award of the arbitrator will be entered and enforced
by a state court sitting in Salt Lake County, Utah. The parties hereby
incorporate herein the provisions and procedures set forth in the Utah Uniform
Arbitration Act, U.C.A. § 78B-11-101 et seq. (as amended or superseded
from time to time, the “Arbitration Act”). Pursuant to Section 105 of
the Arbitration Act, in the event of conflict between the terms of these
Arbitration Provisions and the provisions of the Arbitration Act, the terms of
these Arbitration Provisions shall control.

3.     Arbitration
Proceedings. Arbitration between the parties will be subject to the
following procedures:

3.1      Pursuant
to Section 110 of the Arbitration Act, the parties agree that a party may
initiate Arbitration by giving written notice to the other party (“Arbitration
Notice”) in the same manner that notice is permitted under Section 8.10 of
the Agreement; provided, however, that the Arbitration Notice may not be
given by email or fax. Arbitration will be deemed initiated as of the date that
the Arbitration Notice is deemed delivered under Section 8.10 of the Agreement
(the “Service Date”). After the Service Date, information may be
delivered, and notices may be given, by email or fax pursuant to Section 8.10
of the Agreement or any other method permitted thereunder. The Arbitration
Notice must describe the nature of the controversy, the remedies sought, and
the election to commence Arbitration proceedings. All Claims in the Arbitration
Notice must be pleaded consistent with the Utah Rules of Civil Procedure.

3.2     
Within ten (10) calendar days after the Service Date, Investor shall select and
submit to Company the names of three arbitrators that are designated as
“neutrals” or qualified arbitrators by Utah ADR Services (http://www.utahadrservices.com) (such three
designated persons hereunder are referred to herein as the “Proposed
Arbitrators”). For the avoidance of doubt, each Proposed Arbitrator must be
qualified as a “neutral” with Utah ADR Services. Within ten (10) calendar days
after Investor has submitted to Company the names of the Proposed Arbitrators,
Company must select, by written notice to Investor, one (1) of the Proposed
Arbitrators to act as the arbitrator for the parties under these Arbitration
Provisions. If Company fails to select one of the Proposed Arbitrators in
writing within such 10-day period, then Investor may select the arbitrator from
the Proposed Arbitrators by providing written notice of such selection to
Company. If Investor fails to identify the Proposed Arbitrators within the time
period required above, then Company may at any time prior to Investor
designating the Proposed Arbitrators, select the names of three arbitrators
that 

Arbitration Provisions, Page 1

 
are designated as “neutrals” or qualified arbitrators by Utah ADR Service
by written notice to Investor. Investor may then, within ten (10) calendar days
after Company has submitted notice of its selected arbitrators to Investor,
select, by written notice to Company, one (1) of the selected arbitrators to
act as the arbitrator for the parties under these Arbitration Provisions. If
Investor fails to select in writing and within such 10-day period one of the
three arbitrators selected by Company, then Company may select the arbitrator
from its three previously selected arbitrators by providing written notice of
such selection to Investor. Subject to Paragraph 3.12 below, the cost of the
arbitrator must be paid equally by both parties; provided, however, that
if one party refuses or fails to pay its portion of the arbitrator fee, then
the other party can advance such unpaid amount (subject to the accrual of
Default Interest thereupon), with such amount added to or subtracted from, as
applicable, the award granted by the arbitrator. If Utah ADR Services ceases to
exist or to provide a list of neutrals, then the arbitrator shall be selected
under the then prevailing rules of the American Arbitration Association. The
date that the selected arbitrator agrees in writing to serve as the arbitrator
hereunder is referred to herein as the “Arbitration Commencement Date”.

3.3      An
answer and any counterclaims to the Arbitration Notice, which must be pleaded
consistent with the Utah Rules of Civil Procedure, shall be required to be
delivered to the other party within twenty (20) calendar days after the Service
Date. Upon request, the arbitrator is hereby instructed to render a default
award, consistent with the relief requested in the Arbitration Notice, against
a party that fails to submit an answer within such time period.

3.4      The
party that delivers the Arbitration Notice to the other party shall have the
option to also commence legal proceedings with any state court sitting in Salt
Lake County, Utah (“Litigation Proceedings”), subject to the following:
(i) the complaint in the Litigation Proceedings is to be substantially similar
to the claims set forth in the Arbitration Notice, provided that an additional
cause of action to compel arbitration will also be included therein, (ii) so
long as the other party files an answer to the complaint in the Litigation
Proceedings and an answer to the Arbitration Notice, the Litigation Proceedings
will be stayed pending an award of the arbitrator hereunder, (iii) if the other
party fails to file an answer in the Litigation Proceedings or an answer in the
Arbitration Proceedings, then the party initiating Arbitration shall be
entitled to a default judgment consistent with the relief requested, to be
entered in the Litigation Proceedings, and (iv) any legal or procedural issue
arising under the Arbitration Act that requires a decision of a court of
competent jurisdiction may be determined in the Litigation Proceedings. Any
award of the arbitrator may be entered in such Litigation Proceedings pursuant
to the Arbitration Act.

3.5      Pursuant
to Section 118(8) of the Arbitration Act, the parties agree that discovery
shall be conducted in accordance with the Utah Rules of Civil Procedure; provided,
however, that incorporation of such rules will in no event supersede the
Arbitration Provisions set forth herein, including without limitation the time
limitation set forth in Paragraph 3.9 below, and the following:

(a)       Discovery will
only be allowed if the likely benefits of the proposed discovery outweigh the
burden or expense, and the discovery sought is likely to reveal information
that will satisfy a specific element of a claim or defense already pleaded in
the Arbitration. The party seeking discovery shall always have the burden of
showing that all of the standards and limitations set forth in these
Arbitration Provisions are satisfied. The scope of discovery in the Arbitration
proceedings shall also be limited as follows: 

(i)       To facts directly connected
with the transactions contemplated by the Agreement.

(ii)      To facts and information that
cannot be obtained from another source that is more convenient, less burdensome
or less expensive.

(c)       No party shall
be allowed (a) more than fifteen (15) interrogatories (including discrete
subparts), (b) more than fifteen (15) requests for admission (including
discrete subparts), (c) more than ten (10) document requests (including
discrete subparts), or (d) more than three depositions (excluding expert
depositions) for a maximum of seven (7) hours per deposition. 

3.6      Any
party submitting any written discovery requests, including interrogatories,
requests for production, subpoenas to a party or a third party, or requests for
admissions, must prepay the estimated attorneys’ fees and costs, as determined
by the arbitrator, before the responding party has any obligation to produce or
respond.

(a)       All discovery
requests must be submitted
in writing to the arbitrator and the other party before issuing or serving such
discovery requests. The party issuing the written discovery requests must

Arbitration Provisions, Page 2

 
include with such discovery requests a detailed explanation of how the proposed
discovery requests satisfy the requirements of these Arbitration Provisions and
the Utah Rules of Civil Procedure. Any party will then be allowed, within ten
(10) calendar days of receiving the proposed discovery requests, to submit to
the arbitrator an estimate of the attorneys’ fees and costs associated with
responding to such written discovery requests and a written challenge to each
applicable discovery request. After receipt of an estimate of attorneys’ fees
and costs and/or challenge(s) to one or more discovery requests, the arbitrator
will make a finding as to the likely attorneys’ fees and costs associated with
responding to the discovery requests and issue an order that (A) requires the
requesting party to prepay the attorneys’ fees and costs associated with
responding to the discovery requests, and (B) requires the responding party to
respond to the discovery requests as limited by the arbitrator within a certain
period of time after receiving payment from the requesting party. If a party
entitled to submit an estimate of attorneys’ fees and costs and/or a challenge
to discovery requests fails to do so within such 10-day period, the arbitrator
will make a finding that (A) there are no attorneys’ fees or costs associated
with responding to such discovery requests, and (B) the responding party must
respond to such discovery requests (as may be limited by the arbitrator) within
a certain period of time as determined by the arbitrator.

(b)     In order to allow a written
discovery request, the arbitrator must find that the discovery request
satisfies the standards set forth in these Arbitration Provisions and the Utah
Rules of Civil Procedure. The arbitrator must strictly enforce these standards.
If a discovery request does not satisfy any of the standards set forth in these
Arbitration Provisions or the Utah Rules of Civil Procedure, the arbitrator may
modify such discovery request to satisfy the applicable standards, or strike
such discovery request in whole or in part. 

(c)       Discovery deadlines
will be set forth in a scheduling order issued by the arbitrator. The parties
hereby authorize and direct the arbitrator to take such actions and make such
rulings as may be necessary to carry out the parties’ intent for the
arbitration proceedings to be efficient and expeditious.

3.7      Each
party may submit expert reports (and rebuttals thereto), provided that such
reports must be submitted by the deadlines established by the arbitrator.
Expert reports must contain the following: (a) a complete statement of all
opinions the expert will offer at trial and the basis and reasons for them; (b)
the expert’s name and qualifications, including a list of all publications
within the preceding 10 years, and a list of any other cases in which the
expert has testified at trial or in a deposition or prepared a report within
the preceding 10 years; and (c) the compensation to be paid for the expert’s report
and testimony. The parties are entitled to depose any other party’s expert
witness one time for no more than 4 hours. An expert may not testify in a
party’s case-in-chief concerning any matter not fairly disclosed in the expert
report.

3.8      All
information disclosed by either party during the Arbitration process (including
without limitation information disclosed during the discovery process) shall be
considered confidential in nature. Each party agrees not to disclose any
confidential information received from the other party during the discovery
process unless (i) prior to or after the time of disclosure such information
becomes public knowledge or part of the public domain, not as a result of any
inaction or action of the receiving party, (ii) such information is required by
a court order, subpoena or similar legal duress to be disclosed if such
receiving party has notified the other party thereof in writing and given it a
reasonable opportunity to obtain a protective order from a court of competent
jurisdiction prior to disclosure; or (iii) disclosed to the receiving party’s
agents, representatives and legal counsel on a need to know basis who each
agree in writing not to disclose such information to any third party. Pursuant
to Section 118(5) of the Arbitration Act, the arbitrator is hereby authorized
and directed to issue a protective order to prevent the disclosure of
privileged information and confidential information upon the written request of
either party.

3.9      The parties hereby authorize and direct
the arbitrator to take such actions and make such rulings as may be necessary
to carry out the parties’ intent for the arbitration proceedings to be
efficient and expeditious. Pursuant to Section 120 of the Arbitration Act, the
parties hereby agree that an award of the arbitrator must be made within 150
days after the Arbitration Commencement Date. The arbitrator is hereby
authorized and directed to hold a scheduling conference within ten (10)
calendar days after the Arbitration Commencement Date in order to establish a
scheduling order with various binding deadlines for discovery, expert
testimony, and the submission of documents by the parties to enable the
arbitrator to render a decision prior to the end of such 150-day period. The
Utah Rules of Evidence will apply to any final hearing before the arbitrator.

Arbitration Provisions, Page 3

 
3.10    The
arbitrator shall have the right to award or include in the arbitrator’s award
any relief which the arbitrator deems proper under the circumstances,
including, without limitation, specific performance and injunctive relief,
provided that the arbitrator may not award exemplary or punitive damages. 

3.11    If any part of these Arbitration
Provisions is found to violate applicable law or to be illegal, then such
provision shall be modified to the minimum extent necessary to make such
provision enforceable under applicable law.

3.12    The arbitrator is hereby directed to
require the losing party to (i) pay the full amount of the costs and fees of
the arbitrator, and (ii) reimburse the prevailing party the reasonable
attorneys’ fees, arbitrator costs, deposition costs, and other discovery costs
incurred by the prevailing party.

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Arbitration Provisions, Page 4

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