Document:

Chile Mining Technologies Inc.: Exhibit 10.2 - Filed by newsfilecorp.com

Exhibit 10.2

CLOSING ESCROW AGREEMENT 

This CLOSING ESCROW AGREEMENT, dated as of May 8, 2012
(this “Agreement”), is entered into by and among Chile Mining
Technologies Inc., a Nevada corporation (the “Company”), Euro Pacific
Capital, Inc. and Halter Financial Securities Inc. (together the “Placement
Agents”) and Escrow, LLC, a Virginia limited liability company (the
“Escrow Agent”). The Placement Agents and the Company are sometimes each
referred to herein as an “Escrowing Party” and collectively, the
“Escrowing Parties.” 

W I T N E S S E T H: 

WHEREAS, the Company proposes to make a private offering
pursuant to the Securities Act of 1933, as amended (the “Offering”) of up
to $3,500,000 (the “Offering Amount”) of eleven percent (11%) secured
convertible notes (each, a “Note” and collectively, the “Notes”),
which Notes shall be convertible into shares of the Company’s common stock, par
value $0.001 per share, at $2.00 per share (subject to adjustment as set forth
in the Notes), pursuant to a Securities Purchase Agreement, dated as of May 8,
2012, by and among the Company, the investors party thereto (the
“Investors”) and, with respect to certain sections thereof, the Placement
Agents (the “Securities Purchase Agreement”); and 

WHEREAS, the Company and the Placement Agents desire to deposit
all gross proceeds received from subscriptions for the Notes being sold in the
Offering (the “Escrowed Funds”) with the Escrow Agent, to be held in
escrow until joint written instructions are received by the Escrow Agent from
the Company and the Placement Agents, at which time the Escrow Agent will
disburse the Escrowed Funds in accordance with such joint written instructions
(the “Closing”); and

WHEREAS, pursuant to the terms of the Notes, the Company has
agreed to maintain an amount sufficient to satisfy the payment to the Investors
of one annual payment of Interest (as defined in the Notes) due on the aggregate
principal amount of all Notes issued at such Closing (the “Holdback
Amount”) in an escrow account as partial security for the payment
obligations under the Notes; and

WHEREAS, the Escrow Agent is willing to hold the Escrowed Funds
and the Holdback Amount in escrow subject to the terms and conditions of this
Agreement; and

WHEREAS, all capitalized terms used but not defined herein
which are defined in the Securities Purchase Agreement shall have the respective
meanings given to such terms in the Securities Purchase Agreement. 

NOW, THEREFORE, in consideration of the mutual agreements and
covenants herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, and intending to be
legally bound, the parties hereto hereby agree as follows: 

1.     Appointment of Escrow Agent. The Company and the
Placement Agents hereby appoint the Escrow Agent as escrow agent in accordance
with the terms and conditions set forth herein and the Escrow Agent hereby
accepts such appointment. 

2.     Delivery of the Escrowed Funds.

2.1     The Placement Agents and/or the Company will direct the
Investors in the Offering to deliver the Escrowed Funds to the Escrow Agent on
or prior to the Closing of the Offering, addressed to the following account of
the Escrow Agent: 

Domestic Wires 
Virginia
Commerce Bank 
341 E. Market St. 
Leesburg, VA 20175 
ABA#056005253

Account Name: Escrow, LLC 
Account #: 20185758 

International Wires

Correspondent Bank: Wells Fargo Bank 
Address: 707 Wilshire Blvd.
13th Floor

                 
Los Angeles, Ca. 90017 
SWIFT# WFBIUS6WFFX 
Credit Acct: 4121108146

Beneficiary: Virginia Commerce Bank 
FBO Account Name: Escrow, LLC

Account #: 20185758 
Reference: Chile Mining Technologies Inc. 

2.2     (a) All Investors’ checks shall be made payable to “Escrow,
LLC”, as agent for the Company, shall be delivered to the Escrow Agent at the
address set forth on Exhibit A hereto and shall be accompanied by a
written account of subscription in the form attached hereto as Exhibit B
and executed by each Investor (the “Subscription Information”). The
Escrow Agent shall, upon receipt of Subscription Information, together with the
related purchase price being paid by such Investor therefore (the “Investment
Amount”), deposit the related Investment Amount of such Subscription
Information in the Escrow Account for collection; or (b) all funds to be wired
shall be wired to the account set forth in Section 2.1 above and written
Subscription Information shall be faxed or emailed to the Escrow Agent in
accordance with the information provided on Exhibit A. 

2.3     Any checks which are received by the Escrow Agent that are
made payable to a party other than the Escrow Agent shall be returned directly
to the Placement Agents together with any documents delivered therewith.
Simultaneously with each deposit of a check with the Escrow Agent, the Placement
Agents shall provide the Escrow Agent with the Subscription Information to
include the name, address and taxpayer identification number of each Investor
and of the aggregate principal amount of Notes subscribed for by such Investor.
The Escrow Agent is not obligated, and may refuse, to accept checks that
are not accompanied by Subscription Information containing the requisite
information. 

-2- 

2.4     In the event a wire transfer is received by the Escrow
Agent and the Escrow Agent has not received Subscription Information, the Escrow
Agent shall notify the Placement Agents. If the Escrow Agent does not receive
the Subscription Information by such Investor prior by close of business on the
third Business Day (days other than a Saturday or Sunday or other day on which
the Escrow Agent is not open for business) after notifying the Placement Agents
of receipt of said wire, the Escrow Agent shall return the funds to such
Investor. 

3.     Escrow Agent to Hold and Disburse Escrowed Funds. The
Escrow Agent will hold and disburse the Escrowed Funds received by it pursuant
to the terms of this Agreement, as follows: 

3.1     Upon receipt of joint written instructions from the Company
and the Placement Agents, in substantially the form of Exhibit C hereto,
the Escrow Agent shall release the Escrowed Funds as directed in such
instructions. 

3.2     In the event this Agreement, the Escrowed Funds or the
Escrow Agent becomes the subject of litigation, the Company authorizes the
Escrow Agent, at its option, to deposit the Escrowed Funds with the clerk of the
court in which the litigation is pending, or a court of competent jurisdiction
if no litigation is pending, and thereupon the Escrow Agent shall be fully
relieved and discharged of any further responsibility with regard thereto. The
Company also authorizes the Escrow Agent, if it receives conflicting claims to
the Escrowed Funds, is threatened with litigation or if the Escrow Agent shall
desire to do so for any other reason, to interplead all interested parties in
any court of competent jurisdiction and to deposit the Escrowed Funds with the
clerk of that court and thereupon the Escrow Agent shall be fully relieved and
discharged of any further responsibility hereunder to the parties from which
they were received. 

3.3     In the event that the Escrow Agent does not receive any
instructions by a date that is 30 days from the date of this Agreement (the
“Escrow Termination Date”), all Escrowed Funds shall be returned to the
parties from which they were received, without interest thereon or deduction
therefrom. 

4.     Escrow Holdback. 

4.1     Pursuant to the terms of the Notes, at the Closing the
Holdback Amount on the aggregate principal amount of all Notes issued at such
Closing, shall be retained by the Escrow Agent in the Escrow Account.
Notwithstanding anything to the contrary contained herein, upon written
notification by one or both of the Placement Agents to the Escrow Agent that an
Event of Default (as defined in the Notes) has been declared by the Placement
Agents with respect to a failure by the Company to make a complete quarterly
interest payment in accordance with the Notes (the “Interest Payment
Notice”), the Escrow Agent shall disburse such portion of the Holdback
Amount to the Investors and in the amounts as set forth in such Interest Payment
Notice. The Interest Payment Notice shall set forth the amount of the interest
payment deficiency and the amount payable to each Investor. 

-3- 

4.2     Within fourteen (14) days following the disbursement of the
Holdback Amount in accordance with Section 4.1 hereof, the Company shall deposit
an additional amount equal to the Holdback Amount with the Escrow Agent to be
retained and disbursed in accordance with Section 4.1 hereof. 

4.3     It is acknowledged and agreed that the Placement Agents may
deliver an Interest Payment Notice only following complete fulfillment by the
Placement Agents of all procedures, and the lapse of applicable cure periods,
set forth in the Notes relating to the declaration of an Event of Default under
Section 7(a) of the Notes with respect to a failure by the Company to make a
quarterly interest payment in accordance with the terms of the Notes. 

4.4     On the Maturity Date (as defined in the Notes), at any time
prior to the Maturity Date when 75% of all Notes have been converted or upon the
redemption by the Company of all outstanding Notes, if the Company is not in
breach of any of the Transaction Documents, all remaining funds of the Holdback
Amount, if any, shall be disbursed to the Company promptly, and the Company’s
obligation to maintain the Holdback Amount in escrow under this Article 4 shall
cease. 

5.     Exculpation and Indemnification of Escrow Agent. 

5.1     The Escrow Agent shall have no duties or responsibilities
other than those expressly set forth herein. The Escrow Agent shall have no duty
to enforce any obligation of any person other than itself to make any payment or
delivery, or to direct or cause any payment or delivery to be made, or to
enforce any obligation of any person to perform any other act. The Escrow Agent
shall be under no liability to the other parties hereto or anyone else, by
reason of any failure, on the part of any other party hereto or any maker,
guarantor, endorser or other signatory of a document or any other person, to
perform such person’s obligations under any such document. Except for amendments
to this Agreement referenced below, and except for written instructions given to
the Escrow Agent relating to the Escrowed Funds, the Escrow Agent shall not be
obligated to recognize any agreement between or among any of the parties hereto,
notwithstanding that references thereto may be made herein and whether or not it
has knowledge thereof.

5.2     The Escrow Agent shall not be liable to the Company or the
Placement Agents or to anyone else for any action taken or omitted by it, or any
action suffered by it to be taken or omitted, in good faith and acting upon any
order, notice, demand, certificate, opinion or advice of counsel (including
counsel chosen by the Escrow Agent), statement, instrument, report, or other
paper or document (not only as to its due execution and the validity and
effectiveness of its provisions, but also as to the truth and acceptability of
any information therein contained), which is believed by the Escrow Agent to be
genuine and to be signed or presented by the proper person or persons. The
Escrow Agent shall not be bound by any of the terms thereof, unless evidenced by
written notice delivered to the Escrow Agent signed by the proper party or
parties and, if the duties or rights of the Escrow Agent are affected, unless it
shall give its prior written consent thereto. 

-4- 

5.3     The Escrow Agent shall not be responsible for the
sufficiency or accuracy of the form, or of the execution, validity, value or
genuineness of, any document or property received, held or delivered to it
hereunder, or of any signature or endorsement thereon, or for any lack of
endorsement thereon, or for any description therein; nor shall the Escrow Agent
be responsible or liable to the Company, the Placement Agents, or to anyone else
in any respect on account of the identity, authority or rights, of the person
executing or delivering or purporting to execute or deliver any document or
property or this Agreement. The Escrow Agent shall have no responsibility with
respect to the use or application of the Escrowed Funds pursuant to the
provisions hereof. 

5.4     The Escrow Agent shall have the right to assume, in the
absence of written notice to the contrary from the proper person or persons,
that a fact or an event, by reason of which an action would or might be taken by
the Escrow Agent, does not exist or has not occurred, without incurring
liability to the Company, the Placement Agents, or to anyone else for any action
taken or omitted to be taken or omitted, in good faith and in the exercise of
its own best judgment, in reliance upon such assumption. 

5.5     To the extent that the Escrow Agent becomes liable for the
payment of taxes, including withholding taxes, in respect of income derived from
the investment of the Escrowed Funds, or any payment made hereunder, the Escrow
Agent may pay such taxes; and the Escrow Agent may withhold from any payment of
the Escrowed Funds to the Company to the extent due to the Company in accordance
with the instructions delivered as set forth in Exhibit C such amount as
the Escrow Agent estimates to be sufficient to provide for the payment of such
taxes not yet paid, and may use the sum withheld for that purpose. The Escrow
Agent shall be indemnified and held harmless by the Company against any
liability for taxes and for any penalties in respect of taxes, on such
investment income or payments in the manner provided in Section 5.6. 

5.6     The Escrow Agent and Placement Agents will be indemnified
and held harmless by the Company from and against all expenses, including all
reasonable counsel fees and disbursements, or loss suffered by the Escrow Agent
or Placement Agents in connection with any action, suit or proceedings involving
any claim, or in connection with any claim or demand, which in any way, directly
or indirectly, arises out of or relates to this Agreement, the services of the
Escrow Agent or Placement Agents hereunder, except for claims relating to gross
negligence or willful misconduct by Escrow Agent or Placement Agents or breach
of this Agreement by the Escrow Agent or Placement Agents, or the monies or
other property held by it hereunder. Promptly after the receipt of the Escrow
Agent or Placement Agents of notice of any demand or claim or the commencement
of any action, suit or proceeding, the Escrow Agent or Placement Agents, as
applicable, shall, if a claim in respect thereof is to be made against an
Escrowing Party, notify each of them thereof in writing, but the failure by the
Escrow Agent or Placement Agents, as applicable, to give such notice shall not
relieve any such party from any liability which an Escrowing Party may have to
the Escrow Agent or Placement Agents hereunder.

5.7     For purposes hereof, the term “expense or loss” shall
include all amounts paid or payable to satisfy any claim, demand or liability,
or in settlement of any claim, demand, action, suit or proceeding settled with
the express written consent of the Escrow Agent, and all costs and expenses, including, but not limited to, reasonable counsel
fees and disbursements, paid or incurred in investigating or defending against
any such claim, demand, action, suit or proceeding.

-5- 

6.     Termination of Agreement and Resignation of Escrow
Agent. 

6.1     Termination. This Agreement shall terminate with
respect to the rights and obligations of the Escrow Agent and the Escrowing
Parties regarding the Escrowed Funds upon disbursement of all of the Escrowed
Funds in accordance with the terms hereof. This Agreement shall terminate with
respect to the rights and obligations of the Escrow Agent and the Escrowing
Parties regarding the Holdback Amount upon return of the Holdback Amount to the
Company in accordance with Section 4.4 hereof. 

6.2     Resignation.

(a)     General. The Escrow Agent may resign at any time and
be discharged from its duties as Escrow Agent hereunder by giving the Company
and the Placement Agents at least twenty (20) business days written notice
thereof (the “Notice Period”). 

(b)     Regarding the Escrowed Funds. Prior to the Closing
and with respect to the Escrowed Funds, upon providing the written notice called
for in Section 6.2(a) above, the Escrow Agent shall have no further obligation
hereunder except to hold as depositary the Escrowed Funds that it receives until
the end of the Notice Period. In such event, the Escrow Agent shall not take any
action, other than receiving and depositing the Investors’ checks and wire
transfers in accordance with this Agreement, until the Company and the Placement
Agents have jointly designated a banking corporation, trust company, attorney or
other person as successor escrow agent. As soon as practicable after its
resignation, the Escrow Agent shall, if it receives written notice from the
Company and the Placement Agents within the Notice Period, turn over to a
successor escrow agent appointed jointly by the Company and the Placement Agents
all Escrowed Funds (less such amount as the Escrow Agent is entitled to retain
pursuant to Section 8) upon presentation of the document appointing the new
escrow agent and its acceptance thereof. If no new agent is so appointed within
the Notice Period, the Escrow Agent shall return the Escrowed Funds to the
parties from which they were received without interest or deduction.

(c)     Regarding the Holdback Amount. Following the Closing
and with respect to the Holdback Amount, upon providing the written notice
called for in Section 6.2(a) above, the Escrow Agent shall have no further
obligation hereunder except to hold as depositary the Holdback Amount. In such
event, the Escrow Agent shall not take any action with respect to the Holdback
Amount until the Company and the Placement Agents have jointly designated a
banking corporation, trust company, attorney or other person as successor escrow
agent. As soon as practicable after its resignation, the Escrow Agent shall, if
it receives written notice from the Company and the Placement Agents within the
Notice Period, turn over to a successor escrow agent appointed jointly by the
Company and the Placement Agents the entirety of the Holdback Amount only upon
presentation of the document appointing the new escrow agent and its acceptance
thereof. With respect to the Holdback Amount only, the Escrow Agent shall not be permitted to fully resign until a successor escrow agent is
designated and the Holdback Amount turned over to such successor escrow agent.

-6- 

7.     Form of Payments by Escrow Agent. 

7.1     Any payments of the Escrowed Funds by the Escrow Agent
pursuant to the terms of this Agreement shall be made by wire transfer unless
directed to be made by check by the Escrowing Parties. 

7.2     All amounts referred to herein are expressed in United
States Dollars and all payments by the Escrow Agent shall be made in such
dollars. 

8.     Compensation. Escrow Agent shall be entitled to the
following compensation from the Company: 

8.1     Documentation Fee: The Company shall pay a documentation
fee to the Escrow Agent of $2,000, out of the proceeds of the First Closing.

8.2     Closing Fee: The Company shall pay a fee of $500 to the
Escrow Agent at each Closing. For purposes of this Section 8.2, a Closing shall
mean each time the Escrow Agent receives joint instructions from the Company and
the Placement Agents to disburse Escrowed Funds in accordance with the terms of
this Agreement. 

8.3     Interest: The Company and the Placement Agents acknowledge
and agree that the Escrow Account shall be an interest-bearing account. 

9.     Notices. All notices, requests, demands, and other
communications provided herein shall be in writing, shall be delivered by hand
or by first-class mail, shall be deemed given when received and shall be
addressed to parties hereto at their respective addresses first set forth on
Exhibit A hereto. 

10.     Further Assurances. From time to time on and after
the date hereof, the Escrowing Parties shall deliver or cause to be delivered to
the Escrow Agent such further documents and instruments and shall do and cause
to be done such further acts as the Escrow Agent shall reasonably request (it
being understood that the Escrow Agent shall have no obligation to make any such
request) to carry out more effectively the provisions and purposes of this
Agreement, to evidence compliance herewith or to assure itself that it is
protected in acting hereunder. 

11.     Consent to Service of Process. The Escrowing Parties
hereby irrevocably consent to the jurisdiction of the courts of the State of New
York and of any Federal court located in such state in connection with any
action, suit or proceedings arising out of or relating to this Agreement or any
action taken or omitted hereunder, and waives personal service of any summons,
complaint or other process and agrees that the service thereof may be made by
certified or registered mail directed to it at the address listed on Exhibit
A hereto. 

-7- 

12.     Miscellaneous. 

12.1     This Agreement shall be construed without regard to any
presumption or other rule requiring construction against the party causing such
instrument to be drafted. The terms “hereby,” “hereof,” “hereunder,” and any
similar terms, as used in this Agreement, refer to the Agreement in its entirety
and not only to the particular portion of this Agreement where the term is used.
The word “person” shall mean any natural person, partnership, corporation,
government and any other form of business of legal entity. All words or terms
used in this Agreement, regardless of the number or gender in which they were
used, shall be deemed to include any other number and any other gender as the
context may require. This Agreement shall not be admissible in evidence to
construe the provisions of any prior agreement.

12.2     This Agreement and the rights and obligations hereunder of
the parties to this Agreement may not be assigned. This Agreement shall be
binding upon and inure to the benefit of each party’s respective successors,
heirs and permitted assigns. No other person shall acquire or have any rights
under or by virtue of this Agreement. This Agreement may not be changed orally
or modified, amended or supplemented without an express written agreement
executed by the Escrow Agent and the Escrowing Parties. This Agreement is
intended to be for the sole benefit of the parties hereto and their respective
successors, heirs and permitted assigns, and none of the provisions of this
Agreement are intended to be, nor shall they be construed to be, for the benefit
of any third person. 

12.3     This Agreement shall be governed by, and construed in
accordance with, the internal laws of the State of New York. The representations
and warranties contained in this Agreement shall survive the execution and
delivery hereof and any investigations made by any party. The headings in this
Agreement are for purposes of reference only and shall not limit or otherwise
affect any of the terms thereof.

13.     Execution of Counterparts. This Agreement may be
executed in a number of counterparts, by facsimile transmission or other
electronic transmission, each of which shall be deemed to be an original as of
those whose signature appears thereon, and all of which shall together
constitute one and the same instrument. This Agreement shall become binding when
one or more of the counterparts hereof, individually or taken together, are
signed by all the parties. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGES
FOLLOW] 

-8- 

IN WITNESS WHEREOF, the parties have executed and delivered
this Agreement on the day and year first above written. 

ESCROW AGENT: 

ESCROW, LLC 

By:
_____________________________
      Name:

      Title: 

COMPANY: 

CHILE MINING TECHNOLOGIES INC. 

By: _____________________________

       Name:

       Title:

PLACEMENT AGENTS: 

EURO PACIFIC CAPITAL, INC.

By:
_____________________________
      
Name: 
       Title: 

HALTER FINANCIAL SECURITIES INC. 

By:
_____________________________
       Name:

       Title: 

Chile Mining Closing Escrow Agreement 

EXHIBIT A 
PARTIES TO AGREEMENT 

	Chile Mining Technologies, Inc. 
	c/o Minera Licancabur S.A. 
	Jorge Canning 1410 
	Ñuñoa, Santiago 
	Republic of Chile 
	Attention: Jorge Orellana Orellana 
	Email: jorellana@chilemt.cl 
	  
	Escrow, LLC 
	173 Keith St., Unit 3 
	Warrenton, VA 20186 
	Attention: Johnnie L. Zarecor 
	Telephone: (540) 347-2212 
	Fax: (540) 347-2291 
	Email: jzarecor@escrowllc.net 
	  
	Euro Pacific Capital, Inc. 
	88 Post Road West, 3rd Floor 
	Westport, CT 06880 
	Attention: Mr. Thomas Tan 
	Fax: (203) 662-9771 
	Email: ttan@europac.net 
	  
	Halter Financial Securities Inc. 
	500 West Putnam Ave., Suite 400 
	Greenwich, CT 06830 
	Attention: Nicholas B. Hirsch 
	Telephone: 203-542-7247 
	Fax: 203-542-7701 
	Email: nick.hirsch@halterfinancialsecurities.com
  

EXHIBIT B 

SUBSCRIPTION INFORMATION 

	Name of Investor 	 
	 	 
	Address of Investor 	 
	 	 
	 	 
	 	 
	$ Amount of Notes Subscribed 	 
	 	 
	Subscription Amount Submitted Herewith 	
	 	 
	Taxpayer ID Number/ Social Security Number 	
	 	 
	Signature of Investor 	 

EXHIBIT C 

DISBURSEMENT REQUEST 

Pursuant to that certain Agreement by and among Chile Mining
Technologies Inc., Euro Pacific Capital, Inc., Halter Financial Securities Inc.
and Escrow, LLC, the Company and Placement Agents hereby request disbursement of
funds in the amount and manner described below from Virginia Commerce Bank
account number 01194186, styled Escrow, LLC. 

	Please disburse to: 	 
	  	 
	Amount to disburse: 	 
	  	 
	Form of distribution: 	 
	  	 
	Payee: 	 
	         
                         
               Name: 	 
	         
                         
               Address: 	 
	         
                         
               City/State: 	 
	         
                         
               Zip: 	 
	  	 
	  	 
	  	 
	Please disburse to: 	 
	  	 
	Amount to disburse: 	 
	  	 
	Form of distribution: 	 
	  	 
	Payee: 	 
	         
                         
               Name: 	 
	         
                         
               Address: 	 
	         
                         
               City/State: 	 
	         
                         
               Zip: 	 

Subscriptions Accepted From 

	Investor 	 	Amount 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Total: 	 	 
    

	Statement of event or condition which calls for this
      request for disbursement: 
	 
	 
	 

COMPANY: 

CHILE MINING TECHNOLOGIES INC.

By:
_______________________________
       Name:

       Title:

PLACEMENT AGENTS: 

EURO PACIFIC CAPITAL, INC.

By:
_______________________________
      
Name: 
       Title: 

HALTER FINANCIAL SECURITIES
INC.

By:
_______________________________
       Name:

       Title:Chile Mining Technologies Inc.: Exhibit 10.3 - Filed by newsfilecorp.com

Exhibit 10.3

SUBSIDIARY GUARANTEE 

This SUBSIDIARY GUARANTEE dated as of May 8, 2012 (this
"Guarantee"), is made by each of the signatories hereto (together with
any other entity that may become a party hereto as provided herein, the
"Guarantors"), in favor of the purchasers signatory (the
"Investors") to that certain Securities Purchase Agreement, dated as of
the date hereof (the “SPA”), between Chile Mining Technologies, Inc., a
Nevada corporation (the "Company") and the Investors.

WHEREAS, pursuant to the SPA, the Company has agreed to
sell and issue to the Investors, and the Investors have agreed to purchase from
the Company the Company's 11% Secured Convertible Notes (the "Notes"),
subject to the terms and conditions set forth therein; and 

WHEREAS, certain the Company’s obligations to the
investors under the Notes are secured by that certain Security Agreement dated
as of the date hereof (the “Security Agreement”) between the Company and
the Investors; and

WHEREAS, each Guarantor will directly benefit from the
extension of credit to the Company represented by the issuance of the Notes.

NOW, THEREFORE, in consideration of the forgoing
premises and to induce the Investors to enter into the SPA and to carry out the
transactions contemplated thereby, each Guarantor hereby agrees with the
Investors as follows: 

1.     Definitions. Unless otherwise defined herein, terms
defined in the SPA and used herein shall have the meanings given to them in the
SPA and the Security Agreement. 

2.     Guarantee. 

(a)     Guarantee. 

(i)     The Guarantors hereby, jointly and severally,
unconditionally and irrevocably, guarantee to the Investors and their respective
successors, indorsees, transferees and assigns, the prompt and complete payment
and performance by the Company when due (whether at the stated maturity, by
acceleration or otherwise) of the Obligations.

(ii)     Anything herein or in any other Transaction Document to
the contrary notwithstanding, the maximum liability of each Guarantor hereunder
and under the other Transaction Documents shall in no event exceed the amount
which can be guaranteed by such Guarantor under applicable federal and state
laws, including laws relating to the insolvency of debtors, fraudulent
conveyance or transfer or laws affecting the rights of creditors generally
(after giving effect to the right of contribution established in Section
2(b)).

1

(iii)     Each Guarantor agrees that the Obligations may at any
time and from time to time exceed the amount of the liability of such Guarantor
hereunder without impairing the guarantee contained in this Section 2 or
affecting the rights and remedies of the Investors hereunder. 

(iv)     The guarantee contained in this Section 2 shall remain in
full force and effect until all the Obligations and the obligations of each
Guarantor under the guarantee contained in this Section 2 shall have been
satisfied by payment in full.

(v)     No payment made by the Company, any of the Guarantors, any
other guarantor or any other Person or received or collected by the Investors
from the Company, any of the Guarantors, any other guarantor or any other Person
by virtue of any action or proceeding or any set-off or appropriation or
application at any time or from time to time in reduction of or in payment of
the Obligations shall be deemed to modify, reduce, release or otherwise affect
the liability of any Guarantor hereunder which shall, notwithstanding any such
payment (other than any payment made by such Guarantor in respect of the
Obligations or any payment received or collected from such Guarantor in respect
of the Obligations), remain liable for the Obligations up to the maximum
liability of such Guarantor hereunder until the Obligations are paid in full.

(vi)     Notwithstanding anything to the contrary in this
Agreement, with respect to any defaulted non-monetary Obligations the specific
performance of which by the Guarantors is not reasonably possible (e.g. the
issuance of the Company's Common Stock), the Guarantors shall only be liable for
making the Investors whole on a monetary basis for the Company's failure to
perform such Obligations in accordance with the Transaction Documents.

(b)     Right of Contribution. Each Guarantor hereby agrees
that to the extent that a Guarantor shall have paid more than its proportionate
share of any payment made hereunder, such Guarantor shall be entitled to seek
and receive contribution from and against any other Guarantor hereunder which
has not paid its proportionate share of such payment. Each Guarantor's right of
contribution shall be subject to the terms and conditions of Section 2(c). The
provisions of this Section 2(b) shall in no respect limit the obligations and
liabilities of any Guarantor to the Investors, and each Guarantor shall remain
liable to the Investors for the full amount guaranteed by such Guarantor
hereunder. 

(c)     No Subrogation. Notwithstanding any payment made by
any Guarantor hereunder or any set-off or application of funds of any Guarantor
by the Investors, no Guarantor shall be entitled to be subrogated to any of the
rights of the Investors against the Company or any other Guarantor or any
collateral security or guarantee or right of offset held by the Investors for
the payment of the Obligations, nor shall any Guarantor seek or be entitled to
seek any contribution or reimbursement from the Company or any other Guarantor
in respect of payments made by such Guarantor hereunder, until all amounts owing
to the Investors by the Company on account of the Obligations are paid in full.
If any amount shall be paid to any Guarantor on account of such subrogation rights at any time when all of the Obligations
shall not have been paid in full, such amount shall be held by such Guarantor in
trust for the Investors, segregated from other funds of such Guarantor, and
shall, forthwith upon receipt by such Guarantor, be turned over to the Investors
in the exact form received by such Guarantor (duly indorsed by such Guarantor to
the Investors, if required), to be applied against the Obligations, whether
matured or unmatured, in such order as the Investors may determine. 

2

(d)     Amendments, Etc. With Respect to the Obligations.
Each Guarantor shall remain obligated hereunder notwithstanding that, without
any reservation of rights against any Guarantor and without notice to or further
assent by any Guarantor, any demand for payment of any of the Obligations made
by the Investors may be rescinded by the Investors and any of the Obligations
continued, and the Obligations, or the liability of any other Person upon or for
any part thereof, or any collateral security or guarantee therefor or right of
offset with respect thereto, may, from time to time, in whole or in part, be
renewed, extended, amended, modified, accelerated, compromised, waived,
surrendered or released by the Investors, and the SPA and the other Transaction
Documents and any other documents executed and delivered in connection therewith
may be amended, modified, supplemented or terminated, in whole or in part, as
the Investors may deem advisable from time to time, and any collateral security,
guarantee or right of offset at any time held by the Investors for the payment
of the Obligations may be sold, exchanged, waived, surrendered or released. The
Investors shall have no obligation to protect, secure, perfect or insure any
Lien at any time held by them as security for the Obligations or for the
guarantee contained in this Section 2 or any property subject thereto.

(e)     Guarantee Absolute and Unconditional. Each Guarantor
waives any and all notice of the creation, renewal, extension or accrual of any
of the Obligations and notice of or proof of reliance by the Investors upon the
guarantee contained in this Section 2 or acceptance of the guarantee contained
in this Section 2; the Obligations, and any of them, shall conclusively be
deemed to have been created, contracted or incurred, or renewed, extended,
amended or waived, in reliance upon the guarantee contained in this Section 2;
and all dealings between the Company and any of the Guarantors, on the one hand,
and the Investors, on the other hand, likewise shall be conclusively presumed to
have been had or consummated in reliance upon the guarantee contained in this
Section 2. Each Guarantor waives to the extent permitted by law diligence,
presentment, protest, demand for payment and notice of default or nonpayment to
or upon the Company or any of the Guarantors with respect to the Obligations.
Each Guarantor understands and agrees that the guarantee contained in this
Section 2 shall be construed as a continuing, absolute and unconditional
guarantee of payment without regard to (a) the validity or enforceability of the
SPA or any other Transaction Document, any of the Obligations or any other
collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by the Investors, (b) any defense,
set-off or counterclaim (other than a defense of payment or performance or fraud
or misconduct by Investors) which may at any time be available to or be asserted
by the Company or any other Person against the Investors, or (c) any other
circumstance whatsoever (with or without notice to or knowledge of the
Company or such Guarantor) which constitutes, or might be construed to
constitute, an equitable or legal discharge of the Company for the Obligations,
or of such Guarantor under the guarantee contained in this Section 2, in
bankruptcy or in any other instance. When making any demand hereunder or
otherwise pursuing its rights and remedies hereunder against any Guarantor, the
Investors may, but shall be under no obligation to, make a similar demand on or
otherwise pursue such rights and remedies as they may have against the Company,
any other Guarantor or any other Person or against any collateral security or
guarantee for the Obligations or any right of offset with respect thereto, and
any failure by the Investors to make any such demand, to pursue such other
rights or remedies or to collect any payments from the Company, any other
Guarantor or any other Person or to realize upon any such collateral security or
guarantee or to exercise any such right of offset, or any release of the
Company, any other Guarantor or any other Person or any such collateral
security, guarantee or right of offset, shall not relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights and
remedies, whether express, implied or available as a matter of law, of the
Investors against any Guarantor. For the purposes hereof, "demand" shall include
the commencement and continuance of any legal proceedings. 

3

(f)     Reinstatement. The guarantee contained in this
Section 2 shall continue to be effective, or be reinstated, as the case may be,
if at any time payment, or any part thereof, of any of the Obligations is
rescinded or must otherwise be restored or returned by the Investors upon the
insolvency, bankruptcy, dissolution, liquidation or reorganization of the
Company or any Guarantor, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, the
Company or any Guarantor or any substantial part of its property, or otherwise,
all as though such payments had not been made. 

(g)     Payments. Each Guarantor hereby guarantees that
payments hereunder will be paid to the Investors without set-off or counterclaim
in U.S. dollars at the address of the Investor Representative set forth or
referred to in the SPA. 

3.     Representations and Warranties. Each Guarantor hereby
makes the following representations and warranties to Investors as of the date
hereof: 

(a)     Organization and Qualification. The Guarantor is a
corporation, duly incorporated, validly existing and in good standing under the
laws of the applicable jurisdiction set forth on Schedule 1, with the requisite
corporate power and authority to own and use its properties and assets and to
carry on its business as currently conducted. The Guarantor has no subsidiaries
other than those identified as such on the Disclosure Schedules to the SPA. The
Guarantor is duly qualified to do business and is in good standing as a foreign
corporation in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the
failure to be so qualified or in good standing, as the case may be, could not,
individually or in the aggregate, (x) adversely affect the legality, validity or
enforceability of any of this Guaranty in any material respect, (y) have a
material adverse effect on the results of operations, assets, prospects, or financial condition of the
Guarantor or (z) adversely impair in any material respect the Guarantor's
ability to perform fully on a timely basis its obligations under this Guaranty
(a "Material Adverse Effect"). 

4

(b)     Authorization; Enforcement. The Guarantor has the
requisite corporate power and authority to enter into and to consummate the
transactions contemplated by this Guaranty, and otherwise to carry out its
obligations hereunder. The execution and delivery of this Guaranty by the
Guarantor and the consummation by it of the transactions contemplated hereby
have been duly authorized by all requisite corporate action on the part of the
Guarantor. This Guaranty has been duly executed and delivered by the Guarantor
and constitutes the valid and binding obligation of the Guarantor enforceable
against the Guarantor in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally the enforcement of, creditors' rights and remedies or by
other equitable principles of general application. 

(c)     No Conflicts. The execution, delivery and
performance of this Guaranty by the Guarantor and the consummation by the
Guarantor of the transactions contemplated thereby do not and will not (i)
conflict with or violate any provision of its Certificate of Incorporation or
By-laws or (ii) conflict with, constitute a default (or an event which with
notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any
agreement, indenture or instrument to which the Guarantor is a party, or (iii)
result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which the
Guarantor is subject (including Federal and state securities laws and
regulations), or by which any material property or asset of the Guarantor is
bound or affected, except in the case of each of clauses (ii) and (iii), such
conflicts, defaults, terminations, amendments, accelerations, cancellations and
violations as could not, individually or in the aggregate, have or result in a
Material Adverse Effect. The business of the Guarantor is not being conducted in
violation of any law, ordinance or regulation of any governmental authority,
except for violations which, individually or in the aggregate, do not have a
Material Adverse Effect. 

(d)     Consents and Approvals. The Guarantor is not
required to obtain any consent, waiver, authorization or order of, or make any
filing or registration with, any court or other federal, state, local, foreign
or other governmental authority or other person in connection with the
execution, delivery and performance by the Guarantor of this Guaranty. 

(e)     SPA. The representations and warranties of the
Company set forth in the SPA as they relate to such Guarantor, each of which is
hereby incorporated herein by reference, are true and correct as of each time
such representations are deemed to be made pursuant to such SPA, and the
Investors shall be entitled to rely on each of them as if they were fully set
forth herein, provided that each reference in each such representation and
warranty to the Company's knowledge shall, for the purposes of this Section 3,
be deemed to be a reference to such Guarantor's knowledge.

5

4.     Covenants.

(a)     Each Guarantor covenants and agrees with the Investors
that, from and after the date of this Guarantee until the Obligations shall have
been paid in full, such Guarantor shall take, and/or shall refrain from taking,
as the case may be, each commercially reasonable action that is necessary to be
taken or not taken, as the case may be, so that no Event of Default is caused by
the failure to take such action or to refrain from taking such action by such
Guarantor.

(b)     So long as any of the Obligations are outstanding, unless a
Majority in Interest shall otherwise consent in writing, each Guarantor will not
directly or indirectly on or after the date of this Guarantee: 

i.     other than as permitted in the Transaction Documents,
create, incur, assume or suffer to exist any indebtedness for borrowed money of
any kind, including but not limited to, a guarantee, on or with respect to any
of its property or assets now owned or hereafter acquired or any interest
therein or any income or profits therefrom; 

ii.     other than Permitted Liens (as defined in the Transaction
Documents), enter into, create, incur, assume or suffer to exist any liens of
any kind, on or with respect to any of its property or assets now owned or
hereafter acquired or any interest therein or any income or profits therefrom;

iii.     amend its certificate of incorporation, bylaws or other
charter documents so as to adversely affect any rights of any Investor
hereunder; 

iv.     repay, repurchase or offer to repay, repurchase or
otherwise acquire more than a de minimis number of shares of its securities or
debt obligations; 

v.     pay cash dividends on any equity securities of the Company;

vi.     enter into any transaction with any Affiliate of the
Guarantor which would be required to be disclosed in any public filing of the
Company with the Commission, unless such transaction is made on an arm's-length
basis and expressly approved by a majority of the disinterested directors of the
Company (even if less than a quorum otherwise required for board approval); or

vii.     enter into any agreement with respect to any of the
foregoing. 

6

5.     Miscellaneous. 

(a)     Amendments in Writing. None of the terms or
provisions of this Guarantee may be waived, amended, supplemented or otherwise
modified except in writing by the Investors. 

(b)     Notices. All notices, requests and demands to or
upon the Investors or any Guarantor hereunder shall be effected in the manner
provided for in the SPA, provided that any such notice, request or demand to or
upon any Guarantor shall be addressed to such Guarantor at its notice address
set forth on Schedule 5(b). 

(c)     No Waiver By Course Of Conduct; Cumulative Remedies.
The Investors shall not by any act (except by a written instrument pursuant to
Section 5(a)), delay, indulgence, omission or otherwise be deemed to have waived
any right or remedy hereunder or to have acquiesced in any default under the
Transaction Documents or Event of Default. No failure to exercise, nor any delay
in exercising, on the part of the Investors, any right, power or privilege
hereunder shall operate as a waiver thereof. No single or partial exercise of
any right, power or privilege hereunder shall preclude any other or further
exercise thereof or the exercise of any other right, power or privilege. A
waiver by the Investors of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy which the Investors would
otherwise have on any future occasion. The rights and remedies herein provided
are cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by law. 

(d)     Enforcement Expenses; Indemnification. 

(i)     Each Guarantor agrees to pay, or reimburse the Investors
for, all its costs and expenses incurred in collecting against such Guarantor
under the guarantee contained in Section 2 or otherwise enforcing or preserving
any rights under this Guarantee and the other Transaction Documents to which
such Guarantor is a party, including, without limitation, the reasonable fees
and disbursements of counsel to the Investors. 

(ii)     Each Guarantor agrees to pay, and to save the Investors
harmless from, any and all liabilities with respect to, or resulting from any
delay in paying, any and all stamp, excise, sales or other taxes which may be
payable or determined to be payable in connection with any of the transactions
contemplated by this Guarantee. 

(iii)     Each Guarantor agrees to pay, and to save the Investors
harmless from, any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever with respect to the execution, delivery, enforcement,
performance and administration of this Guarantee to the extent the Company would
be required to do so pursuant to the SPA. 

7

(iv)     The agreements in this Section shall survive repayment of
the Obligations and all other amounts payable under the SPA and the other
Transaction Documents.

(e)     Successor and Assigns. This Guarantee shall be
binding upon the successors and assigns of each Guarantor and shall inure to the
benefit of the Investors and their respective successors and assigns; provided
that no Guarantor may assign, transfer or delegate any of its rights or
obligations under this Guarantee without the prior written consent of the
Investors. 

(f)     Set-Off. Each Guarantor hereby irrevocably
authorizes the Investors at any time and from time to time while an Event of
Default under any of the Transaction Documents shall have occurred and be
continuing, without notice to such Guarantor or any other Guarantor, any such
notice being expressly waived by each Guarantor, to set-off and appropriate and
apply any and all deposits, credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by the Investors to or for the credit or
the account of such Guarantor, or any part thereof in such amounts as the
Investors may elect, against and on account of the obligations and liabilities
of such Guarantor to the Investors hereunder and claims of every nature and
description of the Investors against such Guarantor, in any currency, whether
arising hereunder, under the SPA, any other Transaction Document or otherwise,
as the Investors may elect, whether or not the Investors have made any demand
for payment and although such obligations, liabilities and claims may be
contingent or unmatured. The Investors shall notify such Guarantor promptly of
any such set-off and the application made by the Investors of the proceeds
thereof, provided that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of the Investors under this
Section are in addition to other rights and remedies (including, without
limitation, other rights of set-off) which the Investors may have. 

(g)     Integration. This Guarantee and the other
Transaction Documents represent the agreement of the Guarantors and the
Investors with respect to the subject matter hereof and thereof, and there are
no promises, undertakings, representations or warranties by the Investors
relative to subject matter hereof and thereof not expressly set forth or
referred to herein or in the other Transaction Documents. 

(h)     Governing Law. THIS GUARANTEE SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAWS.

(i)     Submission to Jurisdictional; Waiver. Each Guarantor
hereby irrevocably and unconditionally: 

(i)     submits for itself and its property in any legal action or
proceeding relating to this Guarantee and the other Transaction Documents to
which it is a party, or for recognition and enforcement of any judgment in
respect thereof, to the non-exclusive general jurisdiction of the Courts of the
State of New York, located in New York County, New York, the courts of the
United States of America for the Southern District of New York, and appellate
courts from any thereof;

8

(ii)     consents that any such action or proceeding may be brought
in such courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;

(iii)     agrees that service of process in any such action or
proceeding may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to such
Guarantor at its address referred to in the SPA or at such other address of
which the Investors shall have been notified pursuant thereto; 

(iv)     agrees that nothing herein shall affect the right to
effect service of process in any other manner permitted by law or shall limit
the right to sue in any other jurisdiction; and

(v)     waives, to the maximum extent not prohibited by law, any
right it may have to claim or recover in any legal action or proceeding referred
to in this Section any special, exemplary, punitive or consequential
damages.

(j)     Acknowledgements. Each Guarantor hereby acknowledges
that: 

(i)     it has been advised by counsel in the negotiation,
execution and delivery of this Guarantee and the other Transaction Documents to
which it is a party;

(ii)     the Investors have no fiduciary relationship with or duty
to any Guarantor arising out of or in connection with this Guarantee or any of
the other Transaction Documents, and the relationship between the Guarantors, on
the one hand, and the Investors, on the other hand, in connection herewith or
therewith is solely that of debtor and creditor; and

(iii)     no joint venture is created hereby or by the other
Transaction Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Guarantors and the Investors.

(k)     Additional Guarantors. The Company shall cause each
of its subsidiaries formed or acquired on or subsequent to the date hereof to
become a Guarantor for all purposes of this Guarantee by executing and
delivering an Assumption Agreement in the form of Annex 1 hereto. 

9

(l)     Release of Guarantors. Subject to Section 2(f), each
Guarantor will be released from all liability hereunder concurrently with the
repayment in full of all amounts owed under the SPA, the Notes and the other
Transaction Documents.

(m)     Seniority. The Obligations of each of the Guarantors
hereunder rank senior in priority to any other Indebtedness (as defined in the
SPA) of such Guarantor.

(n)     Counterparts. This Guarantee may be executed by one
or more of the parties to this Guarantee on any number of separate counterparts
(including by telecopy), and all of said counterparts taken together shall be
deemed to constitute one and the same instrument.

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

10

IN WITNESS WHEREOF, each of the undersigned has caused this
Guarantee to be duly executed and delivered as of the date first above written.

MINERA LICANCABUR S.A. 

By: /s/Jorge Orellana
Orellana 
       Name: Jorge Orellana
Orellana 
       Title: President 

11

SCHEDULE 1 

GUARANTORS 

The following are the names, notice addresses and jurisdiction
of organization of each Guarantor. 

12

Annex 1 to 

SUBSIDIARY GUARANTEE 

ASSUMPTION AGREEMENT, dated as of ____ __, ______ made by
______________________________, a ______________ corporation (the
"Additional Guarantor"), in favor of the Investors pursuant to the
SPA referred to below. All capitalized terms not defined herein shall have the
meaning ascribed to them in such SPA.

WHEREAS, Chile Mining Technologies, Inc., a Nevada
corporation (the "Company") and the Investors have entered into a
Security Agreement, dated as of [•], 2011 (as amended, supplemented or otherwise
modified from time to time, the "Security Agreement ");

WHEREAS, in connection with the Security Agreement, the
Company and its Subsidiaries (other than the Additional Guarantor) have entered
into the Subsidiary Guarantee, dated as of [•], 2011 (as amended, supplemented
or otherwise modified from time to time, the "Guarantee") in favor of the
Investors;

WHEREAS, the Security Agreement requires the Additional
Guarantor to become a party to the Guarantee; and 

WHEREAS, the Additional Guarantor has agreed to execute
and deliver this Assumption Agreement in order to become a party to the
Guarantee; 

NOW, THEREFORE, IT IS AGREED: 

1.     Guarantee. By executing and delivering this
Assumption Agreement, the Additional Guarantor, as provided in Section 5(n) of
the Guarantee, hereby becomes a party to the Guarantee as a Guarantor thereunder
with the same force and effect as if originally named therein as a Guarantor
and, without limiting the generality of the foregoing, hereby expressly assumes
all obligations and liabilities of a Guarantor thereunder. The information set
forth in Annex 1-A hereto is hereby added to the information set forth in
Schedule 1 to the Guarantee. The Additional Guarantor hereby represents and
warrants that each of the representations and warranties contained in Section 3
of the Guarantee is true and correct on and as the date hereof as to such
Additional Guarantor (after giving effect to this Assumption Agreement) as if
made on and as of such date. 

2.     Governing Law. THIS ASSUMPTION AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK. 

13

`IN WITNESS WHEREOF, the undersigned has caused this Assumption
Agreement to be duly executed and delivered as of the date first above written.

[ADDITIONALGUARANTOR] 

By:
___________________________
      
Name: 
       Title: 

14

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