Document:

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

THE SECURITIES REPRESENTED BY THIS COMPENSATION OPTION CERTIFICATE HAVE NOT BEEN
AND WILL NOT BE REGISTERED UNDER THE 1933 ACT. THE SECURITIES TO BE ISSUED UPON
EXERCISE OF THE SECURITIES REPRESENTED BY THIS COMPENSATION OPTION CERTIFICATE
WILL NOT BE INITIALLY REGISTERED AND MAY OR MAY NOT LATER BECOME REGISTERED FOR
RESALE UNDER THE 1933 ACT. NEITHER ANY SECURITIES REPRESENTED BY THIS
COMPENSATION OPTION CERTIFICATE NOR ANY SECURITIES ISSUED UPON EXERCISE OF THE
SECURITIES REPRESENTED BY THIS COMPENSATION OPTION CERTIFICATE MAY BE EXERCISED
BY OR ON BEHALF OF ANY U.S. PERSON, AS SUCH TERM IS DEFINED IN REGULATION S
PROMULGATED PURSUANT TO THE 1933 ACT, UNLESS REGISTERED UNDER THE 1933 ACT OR AN
EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST
NOT TRADE THE SECURITY BEFORE MARCH 5, 2005.

                         COMPENSATION OPTION TO ACQUIRE

                            COMPENSATION WARRANTS OF

                             APOLLO GOLD CORPORATION

Date of Issue: November 4, 2004                    Certificate Number: 2004-CO-1

THIS CERTIFIES that, for value received, REGENT MERCANTILE BANCORP INC. (the
"AGENT"), is the registered holder (the "HOLDER") of o a compensation option
(the "COMPENSATION OPTION") of Apollo Gold Corporation (the "COMPANY") which
entitles the Holder, subject to the terms and conditions set forth in this
certificate, at any time prior to the Time of Expiry, to acquire from the
Company for no additional consideration, o Compensation Warrants (the
"COMPENSATION WARRANTS") of the Company. Each Compensation Warrant shall entitle
the Holder to acquire one fully paid and non-assessable common share in the
capital of the Company (a "SHARE") at any time commencing on the issuance
thereof and continuing up to 5:00 p.m. (Toronto time) on the second anniversary
date of issue on payment of $0.80 per Share (the "EXERCISE PRICE"), subject to
adjustment. The certificate representing the Compensation Warrants shall be in
the form attached as Schedule "A" hereto.

<PAGE>
                                       2

The Agent may exercise the Compensation Option at any time until the Time of
Expiry by completing the election to exercise form attached as Schedule "B" to
this certificate. The term "TIME OF EXPIRY" shall mean 5:00 p.m. (Toronto time)
on the date (the "EXPIRY DATE") that is the earlier of:

      (i)   the fifth (5th) Business Day (as hereinafter defined) after the
            issuance of the Receipt (as hereinafter defined) in respect of a
            (final) prospectus qualifying, among other things, the issuance of
            the Compensation Warrants issuable on the exercise or deemed
            exercise of the Compensation Option (the "PROSPECTUS") (or, if
            applicable, such number of the Compensation Warrants as the
            securities regulatory authorities permit to be qualified by the
            Prospectus) by the Ontario Securities Commission (the "COMMISSION")
            and any other securities regulatory authority in each of the
            jurisdictions in Canada in which purchasers of Special Notes and
            Special Warrants (as defined in the in the agency agreement among,
            inter alia, the Agent and the Company dated as of November 4, 2004)
            reside; and

      (ii)  November 4, 2005.

The Compensation Option outstanding on the Expiry Date will be automatically
exercised by the Company on behalf of the Agent without any action on the part
of the Agent immediately prior to the Time of Expiry.

The term "BUSINESS DAY" shall mean a day which is not a Saturday or Sunday or a
legal holiday in the City of Toronto, Ontario or Denver, Colorado. The term
"RECEIPT" means, in respect of the Commission, the receipt or similar notice or
document in respect of the Prospectus issued by the Commission.

1.    Exercise of Compensation Warrants

      (a)   Exercise.

            (i)   The Company shall, on the date of exercise or deemed exercise
                  of the Compensation Option (the "EXERCISE DATE"), issue to the
                  Agent the Compensation Warrants.

            (ii)  If the Compensation Option represented by this Compensation
                  Option Certificate is exercised by the Holder prior to the
                  earlier of (1) the Receipt being issued by the securities
                  regulatory authority in the Holder's jurisdiction of
                  residence; and (2) the applicable restricted period under the
                  Multilateral Instrument 45-102 "Resale of Securities" has
                  expired, the Compensation Warrants shall be subject to hold
                  periods under applicable securities legislation and the
                  certificate representing such Compensation Warrants may be
                  endorsed with legends to that effect.

            (iii) The certificate representing such Compensation Warrants will
                  bear a legend containing restrictions under the United States
                  Securities Act of 1933, as amended (the "U.S. SECURITIES ACT")
                  with respect to the resale of these securities.

      (b)   Adjustment.

            (i)   Adjustment. If the Company fails to obtain the Receipt for the
                  Prospectus on or prior to December 20, 2004, the Compensation
                  Option exercised thereafter shall entitle the holder to
                  receive ____ Compensation Warrants upon the exercise or deemed
                  exercise of the Compensation Option (in lieu of ____
                  Compensation Warrants).

<PAGE>
                                       3

            (ii)  Notice of Adjustment. Upon the occurrence of any event
                  requiring an adjustment of the Exercise Price pursuant to the
                  terms of the Compensation Warrants from the date hereof until
                  the issue date of the Compensation Warrants, then and in each
                  such case, the Company shall give written notice thereof to
                  the Agent, which notice shall state the Exercise Price and the
                  number of Shares or other securities subject to the
                  unexercised Compensation Warrants resulting from such
                  adjustment, and shall set forth in reasonable detail the
                  method of calculation and the facts upon which such
                  calculation is based. Upon the request of the Agent, there
                  shall be transmitted promptly to the Agent a statement of the
                  firm of independent chartered accountants retained to audit
                  the financial statements of the Company to the effect that
                  such firm concurs in the Company's calculation of the change.

      (c)   Other Notices. In case at any time from the date hereof until the
            issue date of the Compensation Warrants:

            (i)   the Company shall declare any dividend upon its Shares payable
                  in Shares or other securities of the Company;

            (ii)  the Company shall offer for subscription pro rata to the
                  holders of its Shares any additional shares of any class or
                  other rights;

            (iii) there shall be any capital reorganization or reclassification
                  of the capital stock of the Company, or consolidation,
                  amalgamation or merger of the Company with, or sale of all or
                  substantially all of its assets to, another corporation; or

            (iv)  there shall be a voluntary or involuntary dissolution,
                  liquidation or winding-up of the Company,

            then, in any one or more of such cases, the Company shall give to
            the Agent: (A) at least 10 days' prior written notice of the date on
            which a record shall be taken for such dividend, distribution or
            subscription rights or for determining rights to vote in respect of
            any such reorganization, reclassification, consolidation, merger,
            amalgamation, sale, dissolution, liquidation or winding-up; and (B)
            in the case of any such reorganization, reclassification,
            consolidation, merger, sale, dissolution, liquidation or winding-up,
            at least 10 days' prior written notice of the date when the same
            shall take place. Such notice in accordance with the foregoing
            clause (A) shall also specify, in the case of any such dividend,
            distribution or subscription rights, the date on which the holders
            of Shares shall be entitled thereto, and such notice in accordance
            with the foregoing clause (B) shall also specify the date on which
            the holders of Shares shall be entitled to exchange their Shares for
            securities or other property deliverable upon such reorganization,
            reclassification, consolidation, merger, amalgamation, sale,
            dissolution, liquidation or winding-up, as the case may be.

      (d)   Shares to be Reserved. The Company will at all times keep available,
            and reserve if necessary under applicable law, out of its authorized
            Shares, solely for the purpose of issue upon the exercise of the
            Compensation Warrants, such number of Shares as shall then be
            issuable upon the exercise of the Compensation Warrants. The Company
            covenants and agrees that all Shares which shall be so issuable
            will, upon payment of the Exercise Price therefor and issuance, be
            duly authorized and issued as fully paid and non-assessable. The
            Company will use its commercially reasonable best efforts to take
            all such actions as may be necessary to ensure that all such Shares
            may be so issued without violation of any applicable requirements of
            any exchange upon which the Shares may then be listed or in respect
            of which the Shares are qualified for unlisted trading privileges.
            The Company will use its commercially reasonable best efforts to
            take all such actions as are within its power to ensure that all
            such Shares may be so issued without violation of any applicable
            law.

<PAGE>
                                       4

2.    Transfers

      The Compensation Option evidenced hereby is non-assignable and
      non-transferable.

3.    No Registration in United States

      The Compensation Option represented hereby and the securities issuable
hereunder have not been registered under the U.S. Securities Act and may not be
exercised by or on behalf of any United States person unless pursuant to an
effective registration statement or pursuant to an applicable exemption from
registration under the U.S. Securities Act.

4.    Replacement

      Upon receipt of evidence satisfactory to the Company of the loss, theft,
destruction or mutilation of this certificate and, if requested by the Company,
upon delivery of a bond of indemnity satisfactory to the Company (or, in the
case of mutilation, upon surrender of this certificate), the Company will issue
to the Agent a replacement certificate (containing the same terms and conditions
as this certificate).

5.    Governing Law

      The laws of the Province of Ontario and the federal laws of Canada
applicable therein shall govern the Compensation Option.

6.    Successors

      This Certificate shall enure to the benefit of and shall be binding upon
the Agent and the Company and their respective successors.

7.    General

      The holding of the Compensation Option evidenced by this certificate shall
not constitute the Holder hereof a shareholder of the Company or entitle the
Holder to any right or interest in respect thereof except as expressly provided
in this certificate. This certificate shall not be valid for any purpose
whatever unless and until it has been signed by or on behalf of the Company.
Time shall be of the essence hereof.

      IN WITNESS WHEREOF the Company has caused this certificate to be signed by
its duly authorized officers and its corporate seal hereto affixed.

      DATED as of November 4, 2004.

<PAGE>
                                       5

                                       APOLLO GOLD CORPORATION

                                       Per:
                                            ------------------------------------
                                            Melvyn Williams
                                            Senior Vice President
                                            Finance and Corporate Development

<PAGE>
                                      A-1

                                  SCHEDULE "A"

                       TO COMPENSATION OPTION CERTIFICATE

                    FORM OF COMPENSATION WARRANT CERTIFICATE

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

THE WARRANTS REPRESENTED BY THIS WARRANT CERTIFICATE HAVE NOT BEEN AND WILL NOT
BE REGISTERED UNDER THE 1933 ACT. THE SECURITIES TO BE ISSUED UPON EXERCISE OF
SUCH WARRANTS WILL NOT BE INITIALLY REGISTERED AND MAY OR MAY NOT LATER BECOME
REGISTERED FOR RESALE UNDER THE 1933 ACT. NEITHER ANY WARRANT REPRESENTED BY
THIS WARRANT CERTIFICATE NOR ANY SECURITIES ISSUED UPON EXERCISE OF SUCH WARRANT
MAY BE EXERCISED BY OR ON BEHALF OF ANY U.S. PERSON, AS SUCH TERM IS DEFINED IN
REGULATION S PROMULGATED PURSUANT TO THE 1933 ACT, UNLESS REGISTERED UNDER THE
1933 ACT OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

[INSERT LEGEND ONLY IF REQUIRED UNDER SECTION 1(A)(II) THE COMPENSATION OPTION
CERTIFICATE.] UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS
SECURITY MUST NOT TRADE THE SECURITY BEFORE MARCH 5, 2005.

                              COMPENSATION WARRANTS

                          TO PURCHASE COMMON SHARES OF

                             APOLLO GOLD CORPORATION

                (continued under the laws of the Yukon Territory)

     Void after 5:00 p.m. (Toronto time) on the ____th day of ____, 200____.

WARRANT CERTIFICATE NUMBER: CW-2004-____   NUMBER OF COMPENSATION WARRANTS: ____

<PAGE>
                                      A-2

THIS CERTIFIES THAT, for value received, ____, [ADDRESS] (the "HOLDER") is
entitled, at any time and from time to time up to 5:00 p.m. (Toronto time) on
____th day of ____, 200____ (the "EXPIRY TIME"), one fully paid and
non-assessable Common Share for each warrant (individually, a "WARRANT")
represented by this certificate (the "WARRANT CERTIFICATE") at a price of
US$0.80 per share (the "EXERCISE PRICE"), upon and subject to the terms and
conditions herein.

The Warrants are issued pursuant to the exercise or deemed exercise of a
compensation option (the "COMPENSATION OPTION") granted by the Corporation to
the Holder on November 4, 2004 (the "CLOSING DATE").

1.    For the purpose of this Warrant, the term "COMMON SHARES" means common
      shares in the capital of the Corporation as constituted on the date
      hereof; provided that in the event of a change, subdivision, re-division,
      reduction, combination or consolidation thereof or any other adjustment
      under clause 7 hereof, or such successive changes, subdivisions,
      re-divisions, reductions, combinations, consolidations or other
      adjustments, then subject to the adjustments, if any, having been made in
      accordance with the provisions of this Warrant Certificate, "COMMON
      SHARES" shall thereafter mean the shares, other securities or other
      property resulting from such change, subdivision, re-division, reduction,
      combination or consolidation or other adjustment.

2.    All rights under any of the Warrants in respect of which the right of
      subscription and purchase therein provided for shall not theretofore have
      been exercised shall wholly cease and determine and such Warrants shall be
      wholly void and of no valid or binding effect after the Expiry Time.

3.    Exercise of Warrants

      (a)   The right to purchase Common Shares pursuant to the Warrants may
            only be exercised by the Holder before the Expiry Time by:

            (i)   duly completing and executing a subscription substantially in
                  the form attached hereto, in the manner therein indicated; and

            (ii)  surrendering this Warrant Certificate and the duly completed
                  and executed subscription form to the Corporation at the
                  principal office of the Corporation in the City of Denver,
                  Colorado, together with payment of the purchase price for the
                  Common Shares subscribed for in the form of cash or a
                  certified cheque payable to the Corporation in an amount equal
                  to the then applicable Exercise Price multiplied by the number
                  of Common Shares subscribed for.

      (b)   In the event the weighted average price per Common Share on the
            Toronto Stock Exchange is more than US$2.00 for twenty (20)
            consecutive trading days, the Corporation has the right to cause the
            exercise of the Compensation Warrants into Common Shares by
            delivering a conversion request to the Holder. The Holder shall,
            within five (5) Business Days of receipt of such conversion request,
            convert the Warrants in the manner set out in Section 3(a) above.

4.    Issue of Common Shares upon Exercise.

      Upon  such delivery and payment as set forth in clause 3, the Corporation
            shall cause to be issued to the Holder the number of Common Shares
            to be issued and the Holder shall become a shareholder of the
            Corporation in respect of such Common Shares with effect from the
            date of such delivery and payment and shall be entitled to delivery
            of a certificate or certificates evidencing such shares. The
            Corporation shall cause such certificate or certificates to be
            delivered via bonded overnight courier to the Holder at the address
            or addresses specified in such subscription form within five (5)
            business days of such delivery and payment as herein provided.

<PAGE>
                                      A-3

      (b)   The Corporation shall not be required to issue fractional Common
            Shares upon the exercise of the Warrants and no payment shall be
            made by the Corporation in lieu of issuing any fractional interest
            in a Common Share.

5.    The holding of a Warrant shall not constitute the Holder a shareholder of
      the Corporation nor entitle him to any right or interest in respect
      thereof except as herein expressly provided.

6.    The Corporation covenants and agrees that until the Expiry Time, while any
      of the Warrants shall be outstanding, it shall reserve and there shall
      remain unissued out of its authorized capital a sufficient number of
      Common Shares to satisfy the right of purchase herein provided, as such
      right of purchase may be adjusted pursuant to clauses 7 and 8 hereof. All
      Common Shares which shall be issued upon the exercise of the right to
      purchase herein provided for, upon payment therefor of the amount at which
      such Common Shares may at the time be purchased pursuant to the provisions
      hereof, shall be issued as fully paid and non-assessable shares and the
      holders thereof shall not be liable to the Corporation or its creditors in
      respect thereof.

7.    Adjustment

      (a)   If and whenever at any time after the Closing Date and prior to the
            Expiry Time the Corporation shall:

            (i)   subdivide, re-divide or change its then outstanding Common
                  Shares into a greater number of Common Shares,

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

            (iii) issue Common Shares (or securities exchangeable for or
                  convertible into Common Shares) to the holders of all or
                  substantially all of its then outstanding Common Shares by way
                  of a stock dividend or other distribution;

            (any of such events herein called a "COMMON SHARE REORGANIZATION"),
            then the Exercise Price shall be adjusted effective immediately
            after the effective date of any such event in 7(a)(i)or 7(a)(ii)
            above or the record date at which the holders of Common Shares are
            determined for the purpose of any such dividend or distribution in
            7(a)(iii) above, as the case may be, by multiplying the Exercise
            Price in effect on such effective date or record date, as the case
            may be, by a fraction, the numerator of which shall be the number of
            Common Shares outstanding on such effective date or record date, as
            the case may be, before giving effect to such Common Share
            Reorganization and the denominator of which shall be the number of
            Common Shares outstanding immediately after giving effect to such
            Common Share Reorganization including, in the case where securities
            exchangeable for or convertible into Common Shares are distributed,
            the number of Common Shares that would be outstanding if such
            securities were exchanged for or converted into Common Shares.

      (b)   If and whenever at any time after the Closing Date and prior to the
            Expiry Time, the Corporation shall distribute any class of shares or
            rights, options or warrants or other securities (other than those
            referred to in 7(a) above), evidences of indebtedness or property
            (excluding cash dividends paid in the ordinary course) to holders of
            all or substantially all of its then outstanding Common Shares, the
            Holder shall receive, in addition to the number of Common Shares in
            respect of which the right to purchase is then being exercised, the
            aggregate number of Common Shares or other securities or property
            that the Holder would have been entitled to receive as a result of
            such event, as if, on the record date thereof, the Holder had been
            the registered holder of the number of Common Shares to which the
            Holder was theretofore entitled upon the exercise of the rights of
            the Holder hereunder.

<PAGE>
                                      A-4

      (c)   If and whenever at any time after the Closing Date and prior to the
            Expiry Time there is a capital reorganization of the Corporation or
            a reclassification or other change in the Common Shares (other than
            a Common Share Reorganization) or a consolidation or merger or
            amalgamation of the Corporation with or into any other corporation
            or other entity (other than a consolidation, merger or amalgamation
            which does not result in any reclassification of the outstanding
            Common Shares or a change of the Common Shares into other
            securities), or a transfer of all or substantially all of the
            Corporation's undertaking and assets to another corporation or other
            entity in which the holders of Common Shares are entitled to receive
            shares, other securities or other property (any of such events being
            called a "CAPITAL REORGANIZATION"), the Holder, where he has not
            exercised the right of subscription and purchase under this Warrant
            Certificate prior to the effective date of such Capital
            Reorganization, shall be entitled to receive and shall accept, upon
            the exercise of such right, on such date or any time thereafter, for
            the same aggregate consideration in lieu of the number of Common
            Shares to which he was theretofore entitled to subscribe for and
            purchase, the aggregate number of shares or other securities or
            property which the Holder would have been entitled to receive as a
            result of such Capital Reorganization as if, on the effective date
            thereof, he had been the registered holder of the number of Common
            Shares to which he was theretofore entitled to subscribe for and
            purchase.

      (d)   If and whenever at any time after the Closing Date and prior to the
            Expiry Time, the Corporation shall fix a record date for the
            issuance of rights, options or warrants to all or substantially all
            of the holders of the outstanding Common Shares entitling them, for
            a period expiring not more than forty-five (45) days after the
            record date, to subscribe for or purchase Common Shares or
            securities convertible, exercisable or exchangeable into Common
            Shares (each, a "CONVERTIBLE SECURITY") at a price per share (or
            having a conversion, exercise or exchange price per share) less than
            95% of the Current Market Price (as defined below) on the earlier of
            the record date and the date on which the Corporation announces its
            intention to make such issuance (any such issuance being herein
            called a "RIGHTS OFFERING"), the Exercise Price shall be adjusted on
            the record date so that it shall equal the number which is the
            product of the Exercise Price in effect immediately prior to the
            record date and the fraction:

            (i)   the numerator of which shall be the total number of Common
                  Shares outstanding immediately prior to the record date plus a
                  number of Common Shares equal to the number arrived at by
                  multiplying the total number of additional Common Shares
                  offered for subscription or purchase or into or for which the
                  total number of rights, options or warrants so offered are
                  convertible or exchangeable by the quotient obtained by
                  dividing the purchase or subscription price for each Common
                  Share or conversion price for each Convertible Security
                  offered for subscription or purchase by such Current Market
                  Price for the Common Shares, and

<PAGE>
                                      A-5

            (ii)  the denominator of which shall be the total number of Common
                  Shares outstanding immediately prior to such record date plus
                  the total number of additional Common Shares offered for
                  subscription or purchase or into or for which the total number
                  of rights, options or warrants so offered are convertible or
                  exchangeable.

            To the extent that any rights, options or warrants are not so issued
            or any of the rights, options or warrants so issued are not
            exercised prior to the expiration thereof, the Exercise Price will
            be readjusted to the Exercise Price in effect immediately prior to
            the record date, and the Exercise Price will be further adjusted
            based upon the number of additional Common Shares actually delivered
            upon the exercise of the rights, options or warrants, as the case
            may be.

            For the purposes of this clause 7(d), "CURRENT MARKET PRICE", at any
            date, means the weighted average price per Common Share at which the
            Common Shares have traded: (a) on the Toronto Stock Exchange; or (b)
            if the Common Shares are not quoted on the Toronto Stock Exchange,
            on any stock exchange or over-the-counter market upon which the
            Common Shares are then listed or quoted for trading, during the
            twenty (20) consecutive trading days (on each of which at least five
            hundred (500) Common Shares are traded in board lots) ending the
            third (3rd) trading day before such date, and the weighted average
            price shall be determined by dividing the aggregate sale price of
            all Common Shares sold in board lots on the exchange or market, as
            the case may be, during the twenty (20) consecutive trading days by
            the number of Common Shares sold, provided that if the Common Shares
            are not listed or quoted for trading on any stock exchange or
            market, the price shall be determined by the board of directors of
            the Corporation in its sole discretion, acting reasonably.

      (e)   If and whenever at any time after the Closing Date and prior to the
            Expiry Time, any of the events set out in clause 7(a)or 7(b) shall
            occur and the occurrence of such event results in an adjustment of
            the Exercise Price pursuant to the provisions of clause 7(a) or
            7(b), then the number of Common Shares purchasable pursuant to this
            Warrant shall be adjusted contemporaneously with the adjustment of
            the Exercise Price by multiplying the number of Common Shares then
            otherwise purchasable on the exercise thereof by a fraction, the
            numerator of which shall be the Exercise Price in effect immediately
            prior to the adjustment and the denominator of which shall be the
            Exercise Price resulting from such adjustment.

      (f)   If the Corporation takes any action affecting its Common Shares to
            which the foregoing provisions of this clause 7, in the opinion of
            the board of directors of the Corporation, acting in good faith, are
            not strictly applicable, or if strictly applicable would not fairly
            adjust the rights of the Holder against dilution in accordance with
            the intent and purposes hereof, or would otherwise materially affect
            the rights of the Holder of the Warrants hereunder, then the
            Corporation shall execute and deliver to the Holder an amendment
            hereto providing for an adjustment in the application of such
            provisions so as to adjust such rights as aforesaid in such manner
            as the board of directors of the Corporation may determine to be
            equitable in the circumstances, acting in good faith. The failure of
            the taking of action by the board of directors of the Corporation to
            so provide for any adjustment on or prior to the effective date of
            any action or occurrence giving rise to such state of facts will be
            conclusive evidence that the board of directors has determined that
            it is equitable to make no adjustment in the circumstances.

8.    The following rules and procedures shall be applicable to the adjustments
      made pursuant to clause 7:

<PAGE>
                                      A-6

      (a)   no adjustment in the Exercise Price shall be required unless a
            change of at least 1% of the prevailing Exercise Price would result,
            provided, however, that any adjustment which, except for the
            provisions of this clause 8(a), would otherwise have been required
            to be made, shall be carried forward and taken into account in any
            subsequent adjustment;

      (b)   the adjustments provided for in clause 7 are cumulative and shall
            apply to successive subdivisions, consolidations, dividends,
            distributions and other events resulting in any adjustment under the
            provisions of such clause;

      (c)   in the absence of a resolution of the board of directors of the
            Corporation fixing a record date for any dividend or distribution
            referred to in clause 7(a)(iii) above, the Corporation shall be
            deemed to have fixed as the record date therefor the date on which
            such dividend or distribution is effected;

      (d)   if the Corporation sets a record date to take any action and
            thereafter and before the taking of such action abandons its plan to
            take such action, then no adjustment to the Exercise Price will be
            required by reason of the setting of such record date;

      (e)   forthwith after any adjustment to the Exercise Price or the number
            of Common Shares purchasable pursuant to the Warrants, the
            Corporation shall provide to the Holder a certificate of an officer
            of the Corporation certifying as to the amount of such adjustment
            and, in reasonable detail, describing the event requiring and the
            manner of computing or determining such adjustment; and

      (f)   any question that at any time or from time to time arises with
            respect to the amount of any adjustment to the Exercise Price or
            other adjustment pursuant to clause 7 shall be conclusively
            determined by a firm of independent chartered accountants (who may
            be the Corporation's auditors) and shall be binding upon the
            Corporation and the Holder.

9.    On the happening of each and every such event set out in clause 7, the
      applicable provisions of this Warrant, including the Exercise Price,
      shall, ipso facto, be deemed to be amended accordingly and the Corporation
      shall take all necessary action so as to comply with such provisions as so
      amended.

10.   The Corporation shall not be required to deliver certificates for Common
      Shares issuable upon the exercise of the Warrants while the share transfer
      books of the Corporation are properly closed, having regard to the
      provisions of clauses 7 and 8 hereof, prior to any meeting of shareholders
      or for the payment of dividends or for any other purpose and in the event
      of the surrender of any Warrant in accordance with the provisions hereof
      and the making of any subscription and payment for the Common Shares
      called for thereby during any such period delivery of certificates for
      Common Shares may be postponed for not more than five (5) days after the
      date of the re-opening of said share transfer books. Provided, however,
      that any such postponement of delivery of certificates shall be without
      prejudice to the right of the Holder so surrendering the same and making
      payment during such period to receive after the share transfer books shall
      have been re-opened such certificates for the Common Shares called for, as
      the same may be adjusted pursuant to clause 7 hereof as a result of the
      completion of the event in respect of which the transfer books were
      closed.

11.   Subject as hereinafter provided, all or any of the rights conferred upon
      the Holder by the terms hereof may be enforced by the Holder by
      appropriate legal proceedings. No recourse under or upon any obligation,
      covenant or agreement contained herein shall be had against any
      shareholder, director or officer of the Corporation either directly or
      through the Corporation, it being expressly agreed and declared that the
      obligations under the Warrants are solely corporate obligations and that
      no personal liability whatever shall attach to or be incurred by the
      shareholders, directors or officers of the Corporation or any of them in
      respect thereof, any and all rights and claims against every such
      shareholder, officer or director being hereby expressly waived as a
      condition of and as a consideration for the issue of the Warrants.

<PAGE>
                                      A-7

12.   The Holder may subscribe for and purchase any lesser number of Common
      Shares than the number of shares expressed in this Warrant Certificate. In
      the case of any subscription for a lesser number of Common Shares than
      expressed in this Warrant Certificate, the Holder hereof shall be entitled
      to receive at no cost to the Holder a new Warrant Certificate in respect
      of the balance of Warrant not then exercised. Such new Warrant Certificate
      shall be delivered by bonded overnight courier to the Holder by the
      Corporation, contemporaneously with the delivery of the certificate or
      certificates representing the Common Shares issued pursuant to clause 4.

13.   If this Warrant Certificate is stolen, lost, mutilated or destroyed, the
      Corporation shall, on such terms as it may in its discretion acting
      reasonably impose, issue and sign a new Warrant Certificate of like
      denomination, tenor and date, and if applicable, with the same legend, as
      the Warrant Certificate so stolen, lost, mutilated or destroyed for
      delivery to the Holder.

14.   The Corporation shall keep at its principal office: (a) a register of
      holders in which shall be entered the names and addresses of the Holder of
      the Warrants and of the number of Warrants held by him; and (b) a register
      of transfers in which shall be entered the date and other particulars of
      each transfer of Warrants. The registers hereinbefore referred to shall be
      open at all reasonable times for inspection by the Holder.

15.   The transferee of a Warrant Certificate shall, after the transfer form
      attached to the Warrant Certificate or any other form of transfer
      acceptable to the Corporation, acting reasonably, is duly completed and
      the Warrant Certificate is lodged with the Corporation and upon compliance
      with all other conditions in that regard required by this Warrant, by the
      Toronto Stock Exchange or by law, be entitled to have his name entered on
      the register of holders as the owner of the Warrants represented thereby
      free from all equities or rights of set-off or counterclaim between the
      Corporation and the transferor or any previous holder of such Warrant,
      save in respect of equities of which the Corporation or the transferee is
      required to take notice by statute or by order of a court of competent
      jurisdiction.

16.   Warrant Certificates may, upon compliance with the reasonable requirements
      of the Corporation, be exchanged for Warrant Certificates in any other
      denomination representing in the aggregate the same number of Warrants.
      The Corporation shall issue and sign all Warrant Certificates necessary to
      carry out the exchanges contemplated herein, provided:

      (i)   Warrant Certificates may be exchanged only at the principal office
            of the Corporation in the City of Denver, Colorado;

      (ii)  any Warrant Certificates tendered for exchange shall be surrendered
            to the Corporation and cancelled; and

      (iii) except as otherwise herein provided, the Corporation shall not
            charge the Holder requesting an exchange any sum for any new Warrant
            Certificate issued.

17.   The Corporation may deem and treat the registered holder of any Warrant
      Certificate as the absolute owner of the Warrants represented thereby for
      all purposes, and the Corporation shall not be affected by any notice or
      knowledge to the contrary except where the Corporation is required to take
      notice by statute or by order of a court of competent jurisdiction. A
      Holder shall be entitled to the rights evidenced by such Warrant free from
      all equities or rights of set-off or counterclaim between the Corporation
      and the original or any intermediate holder thereof and all persons may
      act accordingly and the receipt by any such Holder of the Common Shares
      purchasable pursuant to such Warrant shall be a good discharge to the
      Corporation for the same and the Corporation shall not be bound to inquire
      into the title of any such Holder except where the Corporation is required
      to take notice by statute or by order of a court of competent
      jurisdiction.

<PAGE>
                                      A-8

18.   Legend

      (a)   The Holder, if resident in Canada, acknowledges that appropriate
            legend as follows will be placed upon certificates representing any
            Common Shares issued upon the exercise of the Warrants represented
            by this certificate until the earlier of (1) Receipt being issued by
            the securities regulatory authority in the Holder's jurisdiction of
            residence; and (2) the applicable restricted period under the
            Multilateral Instrument 45-102 "Resale of Securities" has expired,
            may be endorsed with the following legends to that effect.

                  "UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF
                  THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE MARCH 5,
                  2005."

      (b)   The Holder understands that upon the original issuance thereof, and
            until such time as the same is no longer required under the
            applicable requirements of the United States Securities Act of 1933,
            as amended (the "U.S. SECURITIES ACT") or applicable U.S. state laws
            and regulations, the certificates representing the Common Shares,
            and all securities issued in exchange therefor or in substitution
            thereof, will bear a legend in substantially the following form:

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

<PAGE>
                                      A-9

            provided, that if any of the Common Shares are being sold pursuant
            to Rule 144 of the U.S. Securities Act, the legend may be removed by
            delivery to the Corporation's transfer agent of an opinion of
            counsel satisfactory to the Corporation to the effect that the
            legend is no longer required under applicable requirements of the
            U.S. Securities Act or state securities laws.

      (c)   The Holder acknowledges that the certificates representing the
            Common Shares and all certificates issued in exchange or
            substitution thereof, will bear a legend in substantially the
            following form as long as the legend referred to in either
            subsection 18(a) or 18(b) remains on such certificate:

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

19.   This Warrant Certificate shall be governed by and construed in accordance
      with the laws of the Province of Ontario and the federal laws of Canada
      applicable therein, regardless of the laws that might otherwise govern
      under applicable principles of conflicts of laws thereof, except to the
      extent mandatorily governed by the law of another jurisdiction. Each of
      the Holder and the Corporation: (i) irrevocably consents to the exclusive
      jurisdiction and venue of the Courts of Ontario in connection with any
      matter or dispute based upon or arising out of this Warrant Certificate or
      the matters contemplated herein; (ii) agrees that process may be served
      upon them in any manner authorized by the laws of the Province of Ontario
      for such persons; and (iii) waives and covenants not to assert or plead
      any objection which they might otherwise have to such jurisdiction, venue
      and such process.

<PAGE>
                                      A-10

20.   The Warrants represented by this Warrant Certificate may not be exercised
      by a U.S. person or person within the United States (or on behalf of any
      such person) unless registered under the U.S. Securities Act or unless an
      exemption from such registration is available and the holder has furnished
      an opinion of counsel of recognized standing in form and substance
      satisfactory to the Corporation to such effect or unless the Holder
      acquired the Warrant in the exercise or conversion of the Compensation
      Option was a U.S. person at the time of acquisition of the Compensation
      Option directly from the Corporation and each of the representations and
      warranties made by the undersigned in the subscription agreement between
      the undersigned and the Corporation, pursuant to which the undersigned
      acquired the Compensation Option, is true and correct as of the date
      hereof. Terms used in this clause 20 have the meanings assigned to them in
      Regulation S under the U.S. Securities Act.

21.   The Warrants represented by this Warrant Certificate may not, unless
      transferred to an affiliate of the holder, be transferred or assigned in
      whole or in part without the prior written consent of the Corporation,
      such consent not to be unreasonably withheld, or without compliance with
      all applicable United States federal and state securities laws, all
      applicable securities laws in Canada and other applicable securities laws
      and the rules of the Toronto Stock Exchange, by the transferor and the
      transferee (including the delivery of investment representation letters
      and legal opinion reasonably satisfactory to the Corporation, if requested
      by the Corporation).

22.   Notwithstanding anything to the contrary in this Warrant Certificate, no
      supplement or amendment to the terms of this Warrant Certificate may be
      made without the prior written approval of the Toronto Stock Exchange.

23.   The Holder, by acceptance hereof, agrees that the Warrants represented by
      this Warrant Certificate, and the Common Shares issuable upon exercise
      thereof, are being acquired solely for its own account and not as a
      nominee for any other party and not with a view toward the resale or
      distribution thereof and that it will not offer, sell or otherwise dispose
      of the Warrants or the Common Shares issuable upon exercise thereof except
      under circumstances which will not result in a violation of the U.S.
      Securities Act, any applicable securities laws in Canada and other
      applicable securities laws or the rules of the Toronto Stock Exchange.

24.   All references herein to monetary amounts are references to lawful money
      of the United States, unless otherwise specified herein.

25.   Any notice, document or other communication required or permitted by this
      Warrant Certificate to be given by the Holder or the Corporation shall be
      in writing and is sufficiently given if delivered personally, or if sent
      by prepaid registered mail or if transmitted by any form of recorded
      telecommunication tested prior to transmission, to such person addressed
      as follows:

      (a)   if to the Holder:

            to the address on the face page hereof

<PAGE>
                                      A-11

      (b)   if to the Corporation:

            Apollo Gold Corporation
            4601 DTC Boulevard, Suite 750
            Denver, Colorado

            80237-2571

            Attention:        R. Llee Chapman
                                    Chief Financial Officer

            Telephone No.:    (720) 886-9656
            Facsimile No.:    (720) 482-0957

Notice so mailed shall be deemed to have been given on the fourth Business Day
after deposit in a post office or public letter box. Neither the Holder nor the
Corporation shall mail any notice, request or other communication hereunder
during any period in which applicable postal workers are on strike or if such
strike is imminent and may reasonably be anticipated to affect the normal
delivery of mail. Notices transmitted by a form of recorded telecommunication or
delivered personally shall be deemed given on the day of transmission or
personal delivery, as the case may be. The Holder or the Corporation may from
time to time notify the other in the manner provided herein of any change of
address or facsimile number which thereafter, until changed by like notice,
shall be the address or facsimile number of such person for all purposes hereof.

      IN WITNESS WHEREOF, the Corporation has caused this Warrant Certificate to
be signed by its duly authorized officer.

      DATED this _________ day of ______________, 200_.

                                       APOLLO GOLD CORPORATION

                                       By:
                                           -------------------------------------
                                           Authorized Signing Officer

<PAGE>
                                      A-12

                                SUBSCRIPTION FORM

                (TO BE COMPLETED IF WARRANTS ARE TO BE EXERCISED)

TO:   APOLLO GOLD CORPORATION
      4601 DTC Boulevard, Suite 750
      Denver, Colorado
      80237-2571

THE UNDERSIGNED hereby subscribes for common shares of APOLLO GOLD CORPORATION
according to the terms and conditions set forth in the annexed warrant
certificate (or such number of other securities or property to which such
warrant entitles the undersigned to acquire under the terms and conditions set
forth in the annexed warrant certificate).

Address for Delivery of Shares:

                               -------------------------------------------------

                               -------------------------------------------------

                               -------------------------------------------------

                               Attention:
                                          --------------------------------------

Exercise Price Tendered

(US$0.80 per share or as adjusted)             US$
                                                  -------------------------

The undersigned represents, warrants and certifies as follows (one (only) of the
following must be checked):

      A.    The undersigned holder (i) at the time of exercise of these Warrants
            is not in the United States; (ii) is not a "U.S. person" as defined
            in Regulation S under the United States Securities Act of 1933, as
            amended (the "U.S. Securities Act") and is not exercising these
            Warrants on behalf of a "U.S. person"; and (iii) did not execute or
            deliver this Exercise Form in the United States.

      B.    The undersigned holder has delivered to CIBC Mellon Trust Company an
            opinion of counsel (which will not be sufficient unless it is from
            counsel of recognized standing and in form and substance
            satisfactory to the Corporation) to the effect that an exemption
            from the registration requirements of the U.S. Securities Act and
            applicable state securities laws is available for the exercise of
            the Warrants.

      C.    The undersigned acquired the Warrants in the conversion of the
            Compensation Option and was a U.S. person at the time of acquisition
            of the Compensation Option directly from the Corporation and each of
            the representations and warranties made by the undersigned in the
            subscription agreement between the undersigned and the Corporation,
            pursuant to which the undersigned acquired the Compensation Option.

<PAGE>
                                      A-13

The undersigned holder understands that the certificates representing the common
shares issuable upon the exercise of the Warrants will bear a legend restricting
transfer without registration under the U.S. Securities Act and applicable state
securities laws or applicable exemptions therefrom.

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

(If any common shares are to be issued to a person or persons other than the
undersigned holder, the undersigned holder must pay all applicable transfer
taxes or other government charges.)

DATED at _______________, this _____day of _______________, 200___.

Witness:                        )
                                )        ---------------------------------------
                                )        Holder's Name
                                )
________________________________)        ---------------------------------------
                                )        Authorized Signature
                                )
                                )        ---------------------------------------
                                )        Title (if applicable)

<PAGE>
                                      A-14

                                 ASSIGNMENT FORM

                (TO BE COMPLETED IF WARRANTS ARE TO BE ASSIGNED)

TO:   APOLLO GOLD CORPORATION
      4601 DTC Boulevard, Suite 750
      Denver, Colorado

      80237-2571

FOR VALUE RECEIVED, ________________Warrants represented by this Warrant
Certificate are

hereby transferred to
                      ----------------------------------------------------------
residing at
            --------------------------------------------------------------------

You are hereby instructed to take the necessary steps to effect this transfer.

DATED _______ at ________, _______ this _________ day ________ of _____, _____.

Witness:                        )
                                )        ---------------------------------------
                                )        Holder's Name
                                )
________________________________)        ---------------------------------------
                                )        Authorized Signature
                                )
                                )        ---------------------------------------
                                )        Title (if applicable)

Signature guaranteed:

The signature must be guaranteed by a Canadian chartered bank or a member of a
recognized stock exchange or other entity acceptable to the Corporation.

<PAGE>
                                      B-1

                                  SCHEDULE "B"

                       TO COMPENSATION OPTION CERTIFICATE

                              ELECTION TO EXERCISE

The undersigned hereby irrevocably elects to exercise the number of Compensation
Option of Apollo Gold Corporation set out below for the number of Compensation
Warrants (or other property or securities subject thereto) as set forth below:

      (a)   Number of Compensation Option to be Exercised: ____________

      (b)   Number of Compensation Warrants to be Acquired: ____________

and directs that the Compensation Warrants be registered and a certificate
therefor to be issued as directed below.

      DATED this _____ day of _________________, ______.

                                        o

                                       Per:
                                            ------------------------------------
                                            Name:
                                            Title:

Direction as to Registration

Name of Registered Holder:                  _______________________________
Address of Registered Holder:

                                            -------------------------------

                                            -------------------------------

                                            -------------------------------

                                            -------------------------------NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES

                          COMMON STOCK PURCHASE WARRANT

                To Purchase __________ Shares of Common Stock of

                        Medialink Worldwide Incorporated

      THIS COMMON STOCK PURCHASE WARRANT (the "Warrant") certifies that, for
value received, _____________ (the "Holder"), is entitled, upon the terms and
subject to the limitations on exercise and the conditions hereinafter set forth,
at any time on or after the date hereof (the "Initial Exercise Date") and on or
prior to the close of business on the fifth anniversary of the Initial Exercise
Date (the "Termination Date") but not thereafter, to subscribe for and purchase
from Medialink Worldwide Incorporated, a Delaware corporation (the "Company"),
up to ______ shares (the "Warrant Shares") of Common Stock, par value $0.01 per
share, of the Company (the "Common Stock"). The purchase price of one share of
Common Stock (the "Exercise Price") under this Warrant shall be $3.99, subject
to adjustment hereunder.

      Section 1. Definitions. Capitalized terms used and not otherwise defined
herein shall have the meanings set forth in that certain Securities Purchase
Agreement (the "Purchase Agreement"), dated November 8, 2004, among the Company
and the purchasers signatory thereto.

      Section 2. Exercise.

            a) Exercise of Warrant. Exercise of the purchase rights represented
by this Warrant may be made at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company
of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto
(or such other office or agency of the Company as it may designate by notice in
writing to the registered Holder at the address of such Holder appearing on the
books of the Company); provided, however, within 5 Trading Days of the date said
Notice of Exercise is delivered to the Company, the Holder shall have
surrendered this Warrant to the Company and the Company shall have received
payment of the aggregate Exercise Price of the shares thereby purchased by wire
transfer or cashier's check drawn on a United States bank.

                                      -1-
<PAGE>

            b) Exercise Price. The Exercise Price of each share of Common Stock
under this Warrant shall be $3.99, subject to adjustment hereunder.

            c) Cashless Exercise. If at any time after one year from the date of
issuance of this Warrant there is no effective Registration Statement
registering the resale of the Warrant Shares by the Holder, then this Warrant
may also be exercised at such time by means of a "cashless exercise" in which
the Holder shall be entitled to receive a certificate for the number of Warrant
Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

      (A)   = the average of the VWAPs on the 20 Trading Days immediately
            preceding the date of such election;

      (B)   = the Exercise Price of this Warrant, as adjusted; and

      (X)   = the number of Warrant Shares issuable upon exercise of this
            Warrant in accordance with the terms of this Warrant by means of a
            cash exercise rather than a cashless exercise.

      d) Exercise Limitations.

            i. Holder's Exercise Restrictions. The Holder shall not have the
right to exercise any portion of this Warrant, pursuant to Section 2(c) or
otherwise, to the extent that after giving effect to such issuance after
exercise, the Holder (together with the Holder's affiliates), as set forth on
the applicable Notice of Exercise, would beneficially own in excess of 4.99% of
the number of shares of the Common Stock outstanding immediately after giving
effect to such issuance. For purposes of the foregoing sentence, the number of
shares of Common Stock beneficially owned by the Holder and its affiliates shall
include the number of shares of Common Stock issuable upon exercise of this
Warrant with respect to which the determination of such sentence is being made,
but shall exclude the number of shares of Common Stock which would be issuable
upon (A) exercise of the remaining, nonexercised portion of this Warrant
beneficially owned by the Holder or any of its affiliates and (B) exercise or
conversion of the unexercised or nonconverted portion of any other securities of
the Company (including, without limitation, any other Debentures or Warrants)
subject to a limitation on conversion or exercise analogous to the limitation
contained herein beneficially owned by the Holder or any of its affiliates.
Except as set forth in the preceding sentence, for purposes of this Section
2(d)(i), beneficial ownership shall be calculated in accordance with Section
13(d) of the Exchange Act, it being acknowledged by Holder that the Company is
not representing to Holder that such calculation is in compliance with Section
13(d) of the Exchange Act and Holder is solely responsible for any schedules
required to be filed in accordance therewith. To the extent that the limitation
contained in this Section 2(d)(i) applies, the determination of whether this
Warrant is exercisable (in relation to other securities owned by the Holder) and
of which a portion of this Warrant is exercisable shall be in the sole
discretion of such Holder, and the submission of a Notice of Exercise shall be
deemed to be such Holder's determination of whether this Warrant is exercisable
(in relation to other securities owned by such Holder) and of which portion of
this Warrant is exercisable, in each case subject to such aggregate percentage
limitation, and the Company shall have no obligation to verify or confirm the
accuracy of such determination. For purposes of this Section 2(d)(i), in
determining the number of outstanding shares of Common Stock, the Holder may
rely on the number of outstanding shares of Common Stock as reflected in (x) the
Company's most recent Form 10-Q or Form 10-K, as the case may be, (y) a more
recent public announcement by the Company or (z) any other notice by the Company
or the Company's Transfer Agent setting forth the number of shares of Common
Stock outstanding. Upon the written or oral request of the Holder, the Company
shall within two Trading Days confirm orally and in writing to the Holder the
number of shares of Common Stock then outstanding. In any case, the number of
outstanding shares of Common Stock shall be determined after giving effect to
the conversion or exercise of securities of the Company, including this Warrant,
by the Holder or its affiliates since the date as of which such number of
outstanding shares of Common Stock was reported.

                                      -2-
<PAGE>

      e) Mechanics of Exercise.

            i. Authorization of Warrant Shares. The Company covenants that
during the period the Warrant is outstanding, it will reserve from its
authorized and unissued Common Stock a sufficient number of shares to provide
for the issuance of the Warrant Shares upon the exercise of any purchase rights
under this Warrant. The Company further covenants that its issuance of this
Warrant shall constitute full authority to its officers who are charged with the
duty of executing stock certificates to execute and issue the necessary
certificates for the Warrant Shares upon the exercise of the purchase rights
under this Warrant. The Company covenants that all Warrant Shares which may be
issued upon the exercise of the purchase rights represented by this Warrant
will, upon exercise of the purchase rights represented by this Warrant, be duly
authorized, validly issued, fully paid and nonassessable and free from all
taxes, liens and charges in respect of the issue thereof (other than taxes in
respect of any transfer occurring contemporaneously with such issue). The
Company will take all such reasonable action as may be necessary to assure that
such Warrant Shares may be issued as provided herein without violation of any
applicable law or regulation, or of any requirements of the Trading Market upon
which the Common Stock may be listed.

            ii. Delivery of Certificates Upon Exercise. Certificates for shares
purchased hereunder shall be delivered to the Holder within 3 Trading Days from
the delivery to the Company of the Notice of Exercise Form, surrender of this
Warrant and payment of the aggregate Exercise Price as set forth above ("Warrant
Share Delivery Date"). This Warrant shall be deemed to have been exercised on
the date the Exercise Price is received by the Company. The Warrant Shares shall
be deemed to have been issued, and Holder or any other person so designated to
be named therein shall be deemed to have become a holder of record of such
shares for all purposes, as of the date the Warrant has been exercised by
payment to the Company of the Exercise Price and all taxes required to be paid
by the Holder, if any, pursuant to Section 2(e)(vii) prior to the issuance of
such shares, have been paid.

            iii. Delivery of New Warrants Upon Exercise. If this Warrant shall
have been exercised in part, the Company shall, at the time of delivery of the
certificate or certificates representing Warrant Shares, deliver to Holder a new
Warrant evidencing the rights of Holder to purchase the unpurchased Warrant
Shares called for by this Warrant, which new Warrant shall in all other respects
be identical with this Warrant.

            iv. Rescission Rights. If the Company fails to deliver to the Holder
a certificate or certificates representing the Warrant Shares pursuant to this
Section 2(e)(iv) by the Warrant Share Delivery Date, then the Holder will have
the right to rescind such exercise.

            v. Buy-In Compensation. In addition to any other rights available to
the Holder, if the Company fails to deliver to the Holder a certificate or
certificates representing the Warrant Shares pursuant to an exercise on or
before the Warrant Share Delivery Date, and if after such date the Holder is
required by its broker to purchase (in an open market transaction or otherwise)
shares of Common Stock to deliver in satisfaction of a sale by the Holder of the
Warrant Shares which the Holder anticipated receiving upon such exercise (a
"Buy-In"), then the Company shall (1) pay in cash to the Holder the amount by
which (x) the Holder's total purchase price (including brokerage commissions, if
any) for the shares of Common Stock so purchased exceeds (y) the amount obtained
by multiplying (A) the number of Warrant Shares that the Company was required to
deliver to the Holder in connection with the exercise at issue times (B) the
price at which the sell order giving rise to such purchase obligation was
executed, and (2) at the option of the Holder, either reinstate the portion of
the Warrant and equivalent number of Warrant Shares for which such exercise was
not honored or deliver to the Holder the number of shares of Common Stock that
would have been issued had the Company timely complied with its exercise and
delivery obligations hereunder. For example, if the Holder purchases Common
Stock having a total purchase price of $11,000 to cover a Buy-In with respect to
an attempted exercise of shares of Common Stock with an aggregate sale price
giving rise to such purchase obligation of $10,000, under clause (1) of the
immediately preceding sentence the Company shall be required to pay the Holder
$1,000. The Holder shall provide the Company written notice indicating the
amounts payable to the Holder in respect of the Buy-In, together with applicable
confirmations and other evidence reasonably requested by the Company. Nothing
herein shall limit a Holder's right to pursue any other remedies available to it
hereunder, at law or in equity including, without limitation, a decree of
specific performance and/or injunctive relief with respect to the Company's
failure to timely deliver certificates representing shares of Common Stock upon
exercise of the Warrant as required pursuant to the terms hereof.

                                      -3-
<PAGE>

            vi. Fractional Shares. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. As to any
fraction of a share which Holder would otherwise be entitled to purchase upon
such exercise, the Company shall pay a cash adjustment in respect of such final
fraction in an amount equal to such fraction multiplied by the Exercise Price.

            vii. Charges, Taxes and Expenses. Issuance of certificates for
Warrant Shares shall be made without charge to the Holder for any issue or
transfer tax or other incidental expense in respect of the issuance of such
certificate, all of which taxes and expenses shall be paid by the Company, and
such certificates shall be issued in the name of the Holder or in such name or
names as may be directed by the Holder; provided, however, that in the event
certificates for Warrant Shares are to be issued in a name other than the name
of the Holder, this Warrant when surrendered for exercise shall be accompanied
by the Assignment Form attached hereto duly executed by the Holder; and the
Company may require, as a condition thereto, the payment of a sum sufficient to
reimburse it for any transfer tax incidental thereto.

            viii. Closing of Books. The Company will not close its stockholder
books or records in any manner which prevents the timely exercise of this
Warrant, pursuant to the terms hereof.

Section 3. Certain Adjustments.

      a) Stock Dividends and Splits. If the Company, at any time while this
Warrant is outstanding: (A) pays a stock dividend or otherwise make a
distribution or distributions on shares of its Common Stock or any other equity
or equity equivalent securities payable in shares of Common Stock (which, for
avoidance of doubt, shall not include any shares of Common Stock issued by the
Company pursuant to this Warrant), (B) subdivides outstanding shares of Common
Stock into a larger number of shares, (C) combines (including by way of reverse
stock split) outstanding shares of Common Stock into a smaller number of shares,
or (D) issues by reclassification of shares of the Common Stock any shares of
capital stock of the Company, then in each case the Exercise Price shall be
multiplied by a fraction of which the numerator shall be the number of shares of
Common Stock (excluding treasury shares, if any) outstanding before such event
and of which the denominator shall be the number of shares of Common Stock
outstanding after such event. Any adjustment made pursuant to this Section 3(a)
shall become effective immediately after the record date for the determination
of stockholders entitled to receive such dividend or distribution and shall
become effective immediately after the effective date in the case of a
subdivision, combination or re-classification.

                                      -4-
<PAGE>

      b) Subsequent Equity Sales. At any time after Shareholder Approval has
been obtained, if the Company or any Subsidiary thereof, as applicable, at any
time while this Warrant is outstanding, shall offer, sell, grant any option to
purchase or offer, sell or grant any right to reprice its securities, or
otherwise dispose of or issue (or announce any offer, sale, grant or any option
to purchase or other disposition) any Common Stock or Common Stock Equivalents
entitling any Person to acquire shares of Common Stock, at an effective price
per share less than the then Exercise Price (such lower price, the "Base Share
Price" and such issuances collectively, a "Dilutive Issuance"), as adjusted
hereunder (if the holder of the Common Stock or Common Stock Equivalents 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 is issued in connection
with such issuance, be entitled to receive shares of Common Stock at an
effective price per share which is less than the Exercise Price, such issuance
shall be deemed to have occurred for less than the Exercise Price), then, the
Exercise Price shall be reduced to equal the sum of (i) such Base Share Price
and (ii) 15% of the difference between the Exercise Price in effect immediately
prior to such adjustment and such Base Share Price. Such adjustment shall be
made whenever such Common Stock or Common Stock Equivalents are issued. The
Company shall notify the Holder in writing, no later than the business day
following the issuance of any Common Stock or Common Stock Equivalents subject
to this section, indicating therein the applicable issuance price, or of
applicable reset price, exchange price, conversion price and other pricing
terms.

      c) Pro Rata Distributions. If the Company, at any time while this Warrant
is outstanding, distributes to all holders of Common Stock (and not to Holders)
evidences of its indebtedness or assets or rights or warrants to subscribe for
or purchase any security other than the Common Stock (which shall be subject to
Section 3(b), then in each such case the Exercise Price shall be determined by
multiplying such Exercise Price in effect immediately prior to the record date
fixed for determination of stockholders entitled to receive such distribution by
a fraction of which the denominator shall be the VWAP determined as of the
record date mentioned above, and of which the numerator shall be such VWAP on
such record date less the then fair market value at such record date of the
portion of such assets or evidence of indebtedness so distributed applicable to
one outstanding share of the Common Stock as determined by the Board of
Directors in good faith. In either case the adjustments shall be described in a
statement provided to the Holder of the portion of assets or evidences of
indebtedness so distributed or such subscription rights applicable to one share
of Common Stock. Such adjustment shall be made whenever any such distribution is
made and shall become effective immediately after the record date mentioned
above.

      d) Calculations. All calculations under this Section 3 shall be made to
the nearest cent or the nearest 1/100th of a share, as the case may be. For
purposes of this Section 3, the number of shares of Common Stock outstanding as
of a given date shall be the sum of the number of shares of Common Stock
(excluding treasury shares, if any) outstanding.

                                      -5-
<PAGE>

      e) Notice to Holders.

            i. Adjustment to Exercise Price. Whenever the Exercise Price is
adjusted pursuant to this Section 3, the Company shall promptly mail to each
Holder a notice setting forth the Exercise Price after such adjustment and
setting forth a brief statement of the facts requiring such adjustment. If the
Company issues a variable rate security, despite the prohibition thereon in the
Purchase Agreement, the Company shall be deemed to have issued Common Stock or
Common Stock Equivalents at the lowest possible conversion or exercise price at
which such securities may be converted or exercised in the case of a Variable
Rate Transaction (as defined in the Purchase Agreement), or the lowest possible
adjustment price in the case of an MFN Transaction (as defined in the Purchase
Agreement).

            ii. Notice to Allow Exercise by Holder. If (A) the Company shall
declare a dividend (or any other distribution) on the Common Stock; (B) the
Company shall declare a special nonrecurring cash dividend on or a redemption of
the Common Stock; (C) the Company shall authorize the granting to all holders of
the Common Stock rights or warrants to subscribe for or purchase any shares of
capital stock of any class or of any rights; (D) the approval of any
stockholders of the Company shall be required in connection with any
reclassification of the Common Stock, any consolidation or merger to which the
Company is a party, any sale or transfer of all or substantially all of the
assets of the Company, of any compulsory share exchange whereby the Common Stock
is converted into other securities, cash or property; (E) the Company shall
authorize the voluntary or involuntary dissolution, liquidation or winding up of
the affairs of the Company; then, in each case, the Company shall cause to be
mailed to the Holder at its last addresses as it shall appear upon the Warrant
Register of the Company, at least 20 calendar days prior to the applicable
record or effective date hereinafter specified, a notice stating (x) the date on
which a record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as
of which the holders of the Common Stock of record to be entitled to such
dividend, distributions, redemption, rights or warrants are to be determined or
(y) the date on which such reclassification, consolidation, merger, sale,
transfer or share exchange is expected to become effective or close, and the
date as of which it is expected that holders of the Common Stock of record shall
be entitled to exchange their shares of the Common Stock for securities, cash or
other property deliverable upon such reclassification, consolidation, merger,
sale, transfer or share exchange; provided, that the failure to mail such notice
or any defect therein or in the mailing thereof shall not affect the validity of
the corporate action required to be specified in such notice. The Holder is
entitled to exercise this Warrant during the 20-day period commencing the date
of such notice to the effective date of the event triggering such notice.

                                      -6-
<PAGE>

      f) Fundamental Transaction. If, at any time while this Warrant is
outstanding, (A) the Company effects any merger or consolidation of the Company
with or into another Person, (B) the Company effects any sale of all or
substantially all of its assets in one or a series of related transactions, (C)
any tender offer or exchange offer (whether by the Company or another Person) is
completed pursuant to which holders of Common Stock are permitted to tender or
exchange their shares for other securities, cash or property, or (D) the Company
effects any reclassification of the Common Stock or any compulsory share
exchange pursuant to which the Common Stock is effectively converted into or
exchanged for other securities, cash or property (in any such case, a
"Fundamental Transaction"), then, upon any subsequent conversion of this
Warrant, the Holder shall have the right to receive, for each Warrant Share that
would have been issuable upon such exercise absent such Fundamental Transaction,
at the option of the Holder, (a) upon exercise of this Warrant, the number of
shares of Common Stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and Alternate Consideration
receivable upon or as a result of such reorganization, reclassification, merger,
consolidation or disposition of assets by a Holder of the number of shares of
Common Stock for which this Warrant is exercisable immediately prior to such
event or (b) cash equal to the value of this Warrant as determined in accordance
with the Black-Scholes option pricing formula (the "Alternate Consideration").
For purposes of any such exercise, the determination of the Exercise Price shall
be appropriately adjusted to apply to such Alternate Consideration based on the
amount of Alternate Consideration issuable in respect of one share of Common
Stock in such Fundamental Transaction, and the Company shall apportion the
Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate
Consideration. If holders of Common Stock are given any choice as to the
securities, cash or property to be received in a Fundamental Transaction, then
the Holder shall be given the same choice as to the Alternate Consideration it
receives upon any exercise of this Warrant following such Fundamental
Transaction. To the extent necessary to effectuate the foregoing provisions, any
successor to the Company or surviving entity in such Fundamental Transaction
shall issue to the Holder a new warrant consistent with the foregoing provisions
and evidencing the Holder's right to exercise such warrant into Alternate
Consideration. The terms of any agreement pursuant to which a Fundamental
Transaction is effected shall include terms requiring any such successor or
surviving entity to comply with the provisions of this paragraph (f) and
insuring that this Warrant (or any such replacement security) will be similarly
adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

                                      -7-
<PAGE>

      g) Exempt Issuance. Notwithstanding the foregoing, no adjustments,
Alternate Consideration nor notices shall be made, paid or issued under this
Section 3 in respect of (i) an Exempt Issuance or (ii) issuances of up to, in
the aggregate, 75,000 shares of Common Stock in any 12-month period.

      h) Voluntary Adjustment By Company. The Company may at any time during the
term of this Warrant reduce the then current Exercise Price to any amount and
for any period of time deemed appropriate by the Board of Directors of the
Company.

Section 4. Transfer of Warrant.

      a) Transferability. Subject to compliance with any applicable securities
laws and the conditions set forth in Sections 5(a) and 4(e) hereof and to the
provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights
hereunder are transferable, in whole or in part, upon surrender of this Warrant
at the principal office of the Company, together with a written assignment of
this Warrant substantially in the form attached hereto duly executed by the
Holder or its agent or attorney and funds sufficient to pay any transfer taxes
payable upon the making of such transfer. Upon such surrender and, if required,
such payment, the Company shall execute and deliver a new Warrant or Warrants in
the name of the assignee or assignees and in the denomination or denominations
specified in such instrument of assignment, and shall issue to the assignor a
new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. A Warrant, if properly assigned, may be
exercised by a new holder for the purchase of Warrant Shares without having a
new Warrant issued.

      b) New Warrants. This Warrant may be divided or combined with other
Warrants upon presentation hereof at the aforesaid office of the Company,
together with a written notice specifying the names and denominations in which
new Warrants are to be issued, signed by the Holder or its agent or attorney.
Subject to compliance with Section 4(a), as to any transfer which may be
involved in such division or combination, the Company shall execute and deliver
a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided
or combined in accordance with such notice.

      c) Warrant Register. The Company shall register this Warrant, upon records
to be maintained by the Company for that purpose (the "Warrant Register"), in
the name of the record Holder hereof from time to time. The Company may deem and
treat the registered Holder of this Warrant as the absolute owner hereof for the
purpose of any exercise hereof or any distribution to the Holder, and for all
other purposes, absent actual notice to the contrary

                                      -8-
<PAGE>

      d) Transfer Restrictions. If, at the time of the surrender of this Warrant
in connection with any transfer of this Warrant, the transfer of this Warrant
shall not be registered pursuant to an effective registration statement under
the Securities Act and under applicable state securities or blue sky laws, the
Company may require, as a condition of allowing such transfer (i) that the
Holder or transferee of this Warrant, as the case may be, furnish to the Company
a written opinion of counsel (which opinion shall be in form, substance and
scope customary for opinions of counsel in comparable transactions) to the
effect that such transfer may be made without registration under the Securities
Act and under applicable state securities or blue sky laws, (ii) that the holder
or transferee execute and deliver to the Company an investment letter in form
and substance acceptable to the Company and (iii) that the transferee be an
"accredited investor" as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or
(a)(8) promulgated under the Securities Act or a qualified institutional buyer
as defined in Rule 144A(a) under the Securities Act.

Section 5. Miscellaneous.

      a) No Rights as Shareholder Until Exercise. This Warrant does not entitle
the Holder to any voting rights or other rights as a shareholder of the Company
prior to the exercise hereof. Upon the surrender of this Warrant and the payment
of the aggregate Exercise Price (or by means of a cashless exercise), the
Warrant Shares so purchased shall be and be deemed to be issued to such Holder
as the record owner of such shares as of the close of business on the later of
the date of such surrender or payment.

      b) Loss, Theft, Destruction or Mutilation of Warrant. The Company
covenants that upon receipt by the Company of evidence reasonably satisfactory
to it of the loss, theft, destruction or mutilation of this Warrant or any stock
certificate relating to the Warrant Shares, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it (which, in
the case of the Warrant, shall not include the posting of any bond), and upon
surrender and cancellation of such Warrant or stock certificate, if mutilated,
the Company will make and deliver a new Warrant or stock certificate of like
tenor and dated as of such cancellation, in lieu of such Warrant or stock
certificate.

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

      d) Authorized Shares.

      Except and to the extent as waived or consented to by the Holder, the
Company shall not by any action, including, without limitation, amending its
certificate of incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such actions as may be
necessary or appropriate to protect the rights of Holder as set forth in this
Warrant against impairment. Without limiting the generality of the foregoing,
the Company will (a) not increase the par value of any Warrant Shares above the
amount payable therefor upon such exercise immediately prior to such increase in
par value, (b) take all such action as may be necessary or appropriate in order
that the Company may validly and legally issue fully paid and nonassessable
Warrant Shares upon the exercise of this Warrant, and (c) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents
from any public regulatory body having jurisdiction thereof as may be necessary
to enable the Company to perform its obligations under this Warrant.

                                      -9-
<PAGE>

      Before taking any action which would result in an adjustment in the number
of Warrant Shares for which this Warrant is exercisable or in the Exercise
Price, the Company shall obtain all such authorizations or exemptions thereof,
or consents thereto, as may be necessary from any public regulatory body or
bodies having jurisdiction thereof.

      e) Governing Law. All questions concerning the construction, validity,
enforcement and interpretation of this Warrant shall be governed by and
construed and enforced in accordance with the internal laws of the State of New
York, without regard to the principles of conflicts of law thereof. Each party
agrees that all legal proceedings concerning the interpretations, enforcement
and defense of the transactions contemplated by any of the Transaction Documents
(whether brought against a party hereto or its respective affiliates, directors,
officers, shareholders, employees or agents) shall be commenced in the state and
federal courts sitting in the City of New York, Borough of Manhattan (the "New
York Courts"). Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the New York Courts for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein (including with respect to the enforcement of any of the
Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject
to the jurisdiction of any such court, or such New York Courts are improper or
inconvenient venue for such proceeding. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the
address in effect for notices to it under this Warrant and agrees that such
service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law. The parties hereby waive all
rights to a trial by jury. If either party shall commence an action or
proceeding to enforce any provisions of this Warrant, then the prevailing party
in such action or proceeding shall be reimbursed by the other party for its
attorneys' fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such action or proceeding.

      f) Restrictions. The Holder acknowledges that the Warrant Shares acquired
upon the exercise of this Warrant, if not registered, will have restrictions
upon resale imposed by state and federal securities laws.

                                      -10-
<PAGE>

      g) Nonwaiver and Expenses. No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of
such right or otherwise prejudice Holder's rights, powers or remedies,
notwithstanding all rights hereunder terminate on the Termination Date. If the
Company willfully and knowingly fails to comply with any provision of this
Warrant, which results in any material damages to the Holder, the Company shall
pay to Holder such amounts as shall be sufficient to cover any costs and
expenses including, but not limited to, reasonable attorneys' fees, including
those of appellate proceedings, incurred by Holder in collecting any amounts due
pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

      h) Notices. Any and all notices or other communications or deliveries to
be provided by the Holders hereunder, including, without limitation, any Notice
of Exercise, shall be in writing and delivered personally, by facsimile, sent by
a nationally recognized overnight courier service, addressed to the Company, at
708 Third Avenue, New York, New York 10017, facsimile number (212) 202 3683,
Attn: Chief Financial Officer with a copy to Tashlik, Kreutzer, Goldwyn &
Crandell P.C., 40 Cuttermill Road, Suite 200, Great Neck, New York 11021,
facsimile number 516-829-6537, Attn: Theodore Wm. Tashlik, Esq. or such other
address or facsimile number as the Company may specify for such purposes by
notice to the Holders delivered in accordance with this Section. Any and all
notices or other communications or deliveries to be provided by the Company
hereunder shall be in writing and delivered personally, by facsimile, sent by a
nationally recognized overnight courier service addressed to each Holder at the
facsimile telephone number or address of such Holder appearing on the books of
the Company, or if no such facsimile telephone number or address appears, at the
principal place of business of the Holder. Any notice or other communication or
deliveries hereunder shall be deemed given and effective on the earliest of (i)
the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile telephone number specified in this Section prior to
5:30 p.m. (New York City time), (ii) the date after the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile
telephone number specified in this Section later than 5:30 p.m. (New York City
time) on any date and earlier than 11:59 p.m. (New York City time) on such date,
(iii) the second Business Day following the date of mailing, if sent by
nationally recognized overnight courier service, or (iv) upon actual receipt by
the party to whom such notice is required to be given

      i) Limitation of Liability. No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant or purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

      j) Remedies. Holder, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, will be entitled to specific
performance of its rights under this Warrant. The Company agrees that monetary
damages would not be adequate compensation for any loss incurred by reason of a
breach by it of the provisions of this Warrant and hereby agrees to waive the
defense in any action for specific performance that a remedy at law would be
adequate.

                                      -11-
<PAGE>

      k) Successors and Assigns. Subject to applicable securities laws, this
Warrant and the rights and obligations evidenced hereby shall inure to the
benefit of and be binding upon the successors of the Company and the successors
and permitted assigns of Holder. The provisions of this Warrant are intended to
be for the benefit of all Holders from time to time of this Warrant and shall be
enforceable by any such Holder or holder of Warrant Shares.

      l) Amendment. This Warrant may be modified or amended or the provisions
hereof waived with the written consent of the Company and the Holder.

      m) Severability. Wherever possible, each provision of this Warrant shall
be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Warrant shall be prohibited by or invalid under
applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provisions
or the remaining provisions of this Warrant.

      n) Headings. The headings used in this Warrant are for the convenience of
reference only and shall not, for any purpose, be deemed a part of this Warrant.

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

                                      -12-
<PAGE>

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

Dated:  November 9, 2004

                                   MEDIALINK WORLDWIDE INCORPORATED

                                   By:__________________________________________
                                      Name:
                                      Title:

                                      -13-
<PAGE>

                               NOTICE OF EXERCISE

To:      Medialink Worldwide Incorporated

      (1)The undersigned hereby elects to purchase ________ Warrant Shares of
Medialink Worldwide Incorporated pursuant to the terms of the attached Warrant
(only if exercised in full), and tenders herewith payment of the exercise price
in full, together with all applicable transfer taxes, if any.

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

                           [  ] in lawful money of the United States; or

                           [ ] the cancellation of such number of Warrant Shares
                           as is necessary, in accordance with the formula set
                           forth in subsection 3(d), to exercise this Warrant
                           with respect to the maximum number of Warrant Shares
                           purchasable pursuant to the cashless exercise
                           procedure set forth in subsection 3(d).

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

                    ----------------------------------------

The Warrant Shares shall be delivered to the following:

                    ----------------------------------------

                    ----------------------------------------

                    ----------------------------------------

      (4) Accredited Investor. The undersigned is an "accredited investor" as
defined in Regulation D promulgated under the Securities Act of 1933, as
amended.

                                   [PURCHASER]

                                   By: ______________________________
                                      Name:
                                      Title:

                                   Dated:  ________________________
<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

      FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are hereby assigned to

_______________________________________________ whose address is

---------------------------------------------------------------.

---------------------------------------------------------------

                                      Dated:  ______________, _______

                Holder's Signature: _____________________________

                 Holder's Address:_____________________________

                          -----------------------------

Signature Guaranteed:  ___________________________________________

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]