Document:

Form of Common Stock Purchase Warrant

 Exhibit 4.2 
 UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (i) AUGUST 2, 2007, AND (ii) THE DATE THE ISSUER
BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY. 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND SUCH LAWS COVERING SUCH SECURITIES, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY STATING THAT SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE SECURITIES ACT. 
 THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933
ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS THIS WARRANT AND SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE
BEEN REGISTERED UNDER THE 1933 ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S
UNDER THE 1933 ACT 
 COMMON STOCK PURCHASE WARRANT 
 STERLING MINING COMPANY 
  

			
	 Warrants:
                    
	 	Initial Issuance Date: August 2, 2007

 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 Initial Issuance Date and on or prior to the close of business on August 2, 2009 (the “Termination Date”) but not thereafter, to subscribe for and purchase from Sterling Mining Company, an Idaho corporation (the
“Company”), up to              shares (the “Warrant Shares”) of common stock, par value $.05 per share, of the Company (the “Common
Stock”). The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). 
  

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 Section 1. Definitions. Capitalized terms used and not otherwise defined herein shall
have the meanings set forth in that certain Subscription Agreement (the “Subscription Agreement”), dated August 2, 2007, 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, in whole or in part, at any time or times 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); and, within three Business Days of the date said Notice of Exercise is delivered to the Company, 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 or Canadian bank. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available
hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three Business Days of the date the final Notice of Exercise is delivered to the Company. Partial
exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the
applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form
within one Business Day of receipt of such notice. In the event of any dispute or discrepancy, the records of the Company shall be controlling and determinative in the absence of manifest error. The Holder and any assignee, by acceptance of this
Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than
the amount stated on the face hereof. 
 b) Exercise Price. The exercise price per share of the Common Stock under this
Warrant shall be U.S.$4.10, subject to adjustment hereunder (the “Exercise Price”). 
 c) Cashless
Exercise. If at any time after a Registration Statement covering the Warrant Shares has been declared effective by the Securities and Exchange Commission (the “Commission”) there is no effective Registration Statement registering, or
no current prospectus available for, 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 daily volume weighted average price of the Common Stock on the Business Day immediately preceding the date of such election on the trading market on which the Common Stock is then listed or
quoted, based on a Business Day from 9:30 a.m. New York City time to 4:02 p.m. New York City time (“VWAP);

  

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	(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. The Company shall not effect any exercise of this
Warrant, and a 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 as set forth on the applicable Notice of
Exercise, such Holder (together with such Holder’s Affiliates (as such term is defined under Rule 144 of the Securities Act), and any other person or entity acting as a group together with such Holder or any of such Holder’s Affiliates),
as set forth on the applicable Notice of Exercise, would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by such
Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination 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 such 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 Warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by such Holder or any of its Affiliates. Except as set forth in
the preceding sentence, for purposes of this Section 2(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by a
Holder that the Company is not representing to such Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and such 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) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by such Holder together with any Affiliates) and of which a portion of this
Warrant is exercisable shall be in the sole discretion of a Holder, and the submission of a Notice of Exercise shall be deemed to be each Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by
such Holder together with any Affiliates) 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. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and 

  

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regulations promulgated thereunder. For purposes of this Section 2(d), in determining the number of outstanding shares of Common Stock, a 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 a Holder, the Company shall within two Business Days confirm orally and in writing to such 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 such
Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding
immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Beneficial Ownership Limitation provisions of this Section 2(d) may be waived by such Holder, at the election of such Holder,
upon not less than 61 days’ prior notice to the Company to change the Beneficial Ownership Limitation to 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock
upon exercise of this Warrant, and the provisions of this Section 2(d) shall continue to apply. Upon such a change by a Holder of the Beneficial Ownership Limitation from such 4.99% limitation to such 9.99% limitation, the Beneficial Ownership
Limitation may not be further waived by such Holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(d) to correct this paragraph (or any
portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained
in this paragraph shall apply to a successor holder of this Warrant. 
 e) Mechanics of Exercise. 
 i. Authorization of Warrant Shares. 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 created by the Company in
respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). 
 ii.
Delivery of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be delivered by the transfer agent of the Company to the Holder to the address specified by the Holder in the Notice of Exercise within 3 Business Days
from the delivery to the Company of the Notice of Exercise Form, surrender of this Warrant (if required) and payment of the aggregate Exercise Price as set forth above (“Warrant Share Delivery Date”). This Warrant shall be 

  

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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 the
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 (or by
cashless exercise, if permitted) 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 request
of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the 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 cause its transfer agent to transmit 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. Compensation for Buy-In on Failure to Timely
Deliver Certificates Upon Exercise. In addition to any other rights available to the Holder, if the Company fails to cause its transfer agent to transmit 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) or the Holder’s brokerage firm otherwise purchases, 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 

  

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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 and, upon request of the Company, evidence of the amount of such loss. 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. 
 vi.
No Fractional Shares or Scrip. 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 the Holder would otherwise be entitled to purchase upon such
exercise, the Company shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share. 
 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. 
 ix. Exercise Mechanics if Registration Statement Not
Effective: Notwithstanding any provision to the contrary contained herein, if the issuance of Warrant Shares upon the exercise of Warrants requires the maintenance of an effective Registration Statement, with respect to such Warrant Shares
under the Securities Act, in no event shall such Warrant Shares be issued unless the Warrant Shares are registered under the Securities Act pursuant to an effective Registration Statement; provided, however, that if the Registration Statement ceases
to be effective, prior to the Termination Date and for so long as the Registration Statement is not effective, subject to applicable law, a holder of any Warrant may only exercise the right to purchase Warrant Shares issuable upon the exercise of
the Warrants the circumstances noted below: 
  

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	 	A.	exercise such Warrants, if the holder is a purchaser who is not (A) a resident of the United States or (B) a U.S. Person (a “U.S. Purchaser”) and the holder
delivers a duly completed and executed Notice of Exercise (If Registration Statement Not Effective) certifying that the holder: (A)(1) is not in the United States; (2) is not a U.S. Person and is not exercising the Warrants for, or on behalf or
benefit of, a U.S. Person or person in the United States; (3) did not execute or deliver the Warrant exercise form in the United States; (4) agrees not to engage in hedging transactions with regard to the Common Shares prior to the
expiration of the one-year distribution compliance period set forth in Rule 903(b)(3) of Regulation S under the Securities Act (“Regulation S”); (5) acknowledges that the Warrant Shares issuable upon exercise of the Warrants are
“restricted securities” as defined in Rule 144 of the Securities Act and upon the issuance thereof, and until such time as the same is no longer required under the applicable requirements of the Securities Act or applicable U.S. state laws
and regulations, the certificates representing the Warrant Shares will bear a restrictive legend; and (6) acknowledges that the Company shall refuse to register any transfer of the Warrant Shares not made in accordance with the provisions of
Regulation S, pursuant to registration under the Securities Act, or pursuant to an available exemption from registration under the 1933 Act; and (B) neither the Corporation nor the holder has engaged in any “directed selling efforts”
(as defined in Regulation S) in the United States; or 

  

	 	B.	exercise such Warrants in a transaction that does not require registration under the Securities Act or any applicable U.S. state laws and regulations and the holder has
(A) delivered a duly completed and executed Notice of Exercise (If Registration Statement Not Effective) certifying that the holder is exercising the Warrants pursuant to such exemptions and (B) furnished to the Company, prior to such
exercise, an opinion of counsel of recognized standing in form and substance satisfactory to the Company to such effect. 

 x. Legending if Registration Statement Not Effective: Unless the Warrant is exercised pursuant to an effective Registration Statement, the certificate representing the Warrant Shares is issued upon
exercise of the Warrant will bear 

  

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legends restricting the transfer without registration under the U.S. Securities Act and applicable state securities laws and restricting transfer under the
Toronto Stock Exchange, substantially in the form set forth below: 
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND SUCH LAWS COVERING SUCH SECURITIES, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY STATING THAT SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS
DELIVERY REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE SECURITIES ACT.” 

If the Common Shares are also then listed on the Toronto Stock Exchange or the TSX Venture Exchange certificates representing the Common Shares will
also bear the following legend 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE LISTED ON THE [TORONTO STOCK EXCHANGE
(“TSX”)][TSX VENTURE EXCHANGE (“TSX-V”)]; HOWEVER, THE SAID SECURITIES CANNOT BE TRADED THROUGH THE FACILITIES OF [TSX][TSX-V] SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY ANY CERTIFICATE REPRESENTING SUCH SECURITIES
IS NOT “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON [TSX][TSX-V].” 
 xi. Suspensions of Registration
Statement, etc,...: If any Warrant Shares issuable upon the exercise of Warrants require the maintenance of a current Registration Statement, with respect to such Warrant Shares under the Securities Act, the Company shall have the
authority to suspend the exercise of any or all Warrants while such registration statement is not current. Similarly, a Holder residing in a state where a required registration or governmental approval of issuance of the Warrant Shares is not in
effect as of or has not been obtained within a reasonable time after the surrender date of the 

  

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Warrant Certificate for exercise shall not be entitled to exercise Warrants, unless in the opinion of counsel to the Company such registration or approval in
such state shall not be required or the Company otherwise authorizes the issuance. In such event, the Holder shall be entitled to transfer the Warrants to others, but only prior to the Termination Date for the Warrants being transferred. If no
Registration Statement is effective at any time when any Warrant is exercised, such Holder shall be notified forthwith by the transfer agent that such Holder is entitled, at his or her option, to exercise the Warrant only in accordance with the
conditions set forth in Sections 2(e)(ix)(A) and (B) and upon delivery of a Notice of Exercise (If Registration Statement Not Effective) to the Company. 
 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 makes 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 upon exercise of 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 immediately before such event and of which the denominator shall be the number of
shares of Common Stock outstanding immediately after such event and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted. 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.

 b) Subsequent Equity Sales. If the Company, at any time while this Warrant is outstanding, shall sell or grant any
option to purchase, or 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 equivalent securities (“Common
Stock Equivalents”) entitling any Person to acquire shares of Common Stock (the “Additional Shares”), 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”) (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 are 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 

  

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on such date of the Dilutive Issuance), then the Exercise Price shall be reduced to a price determined by multiplying the Exercise Price then in effect by a
fraction (i) the numerator of which shall be (A) the number of Common Shares deemed outstanding (as determined below) immediately prior to such issue or sale, plus (B) the number of Common Shares that the aggregate Base Share Price
amount received by the Company for the total number of Additional Shares of Common Stock so issued would purchase at such Exercise Price, and (ii) the denominator of which shall be the number of Common Shares deemed outstanding (as defined
below) immediately prior to such issue or sale plus the total number of Additional Shares of Common Stock so issued. Such adjustment shall be made whenever such Additional Shares are issued. Notwithstanding the foregoing, no adjustments shall be
made, paid or issued under this Section 3(b) in respect of any issuance under or pursuant to: (i) shares of Common Stock or options issued to employees, officers or directors of the Company pursuant to the Company’s 2006 Equity
Incentive Plan and 2006 Employee Stock Purchase Plan adopted by the Board of Directors on September 28, 2006, and pursuant to any other stock or option plan duly adopted for such purpose by a majority of the non-employee members of the Board of
Directors of the Company or a majority of the members of a committee of non-employee directors, (ii) securities upon the exercise or exchange of or conversion of any securities issued hereunder and/or other securities exercisable or
exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement to increase the number of such securities or to
decrease the exercise, exchange or conversion price of such securities, (iii) securities issuable upon obligations or instruments outstanding on the date of this Agreement, and (iv) securities issued pursuant to acquisitions or strategic
transactions approved by a majority of the disinterested directors of the Company, provided any such issuance shall only be to a Person which is, itself or through its subsidiaries, a company in a business synergistic with the business of the
Company and in which the Company receives benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary
business is investing in securities. The Company shall notify the Holder in writing, no later than the Business Day following the issuance of any Additional Shares subject to this Section 3(b), indicating therein the applicable issuance price,
or applicable reset price, exchange price, conversion price and other pricing terms (such notice the “Dilutive Issuance Notice”). Upon the expiration or other termination without being exercised, exchanged, or converted of Common
Stock Equivalents that triggered any adjustment under this Section 3(b), the number of Common Shares deemed to be outstanding pursuant to this Section 3(b) shall be reduced by the number of shares as to which the Common Stock Equivalents
shall have expired or terminated unexercised, and the Exercise Price then in effect shall forthwith be readjusted and thereafter be the price that it would have been had adjustment been made on the basis of the issuance only of the Common Shares
actually issued. For purposes of this Section 3(b), the number of Common Shares deemed to be outstanding as of a given date shall be the sum of (x) the number of Common Shares actually outstanding, (y) the number of Common Shares for
which this Warrant could be exercised on the day immediately preceding the given date, and (z) the number of Common Shares which could be obtained through the exercise or conversion of all other rights, options and convertible securities
outstanding on the day immediately preceding the given date. 
  

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 c) Pro Rata Distributions. If the Company, at any time prior to the Termination
Date, shall distribute to all holders of Common Stock (and not to the Holders of the Warrants) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than the
Common Stock (which shall be subject to Section 3(a) or 3(b) as applicable), then in each such case the Exercise Price shall be adjusted by multiplying the 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 as of the Business Day immediately prior to the record date mentioned above, and of which the numerator shall be such VWAP as of the Business
Day immediately prior to such record date less the then per share 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) 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 exercise of
this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of 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 any additional consideration (the “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) if the Company is acquired in an all cash transaction, cash equal to the value of this Warrant as determined in accordance with the Black-Scholes option pricing formula. 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 

  

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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 Section 3(e) and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction
analogous to a Fundamental Transaction. 
 e) 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 deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of
Common Stock (excluding treasury shares, if any) issued and outstanding. 
 f) 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. 
 g) Notice to Holder. 
 i. Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly mail to the Holder a notice setting forth the Exercise Price
after such adjustment and setting forth a brief statement of the facts requiring such adjustment. 
 ii. Notice to Allow
Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) 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 address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date 

  

 12 

 
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 on the date of such notice to the effective date of the event triggering
such notice. 
 Section 4. Transfer of Warrant. 
 a) Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d)
hereof, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, 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. 
  

 13 

 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, that (i) 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, and (ii) the Holder or transferee execute and
deliver to the Company an investment letter in form and substance acceptable to the Company, and (iii) the transferee be an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3) and (a)(7) promulgated 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 as set forth in Section 2(e)(ii). 
 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 not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day. 
 d) Authorized Shares. 
 The Company covenants that during the period the Warrant
remains 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 will take all such 

  

 14 

 
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. 
 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 the 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. 
 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) Jurisdiction. All questions concerning the construction,
validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Subscription Agreement. 
 f) Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered and qualified by a prospectus in Canada, will have restrictions upon resale imposed
by state, provincial and federal securities laws, as the case may be. 
 g) Nonwaiver and Expenses. No course of
dealing or any delay or failure to exercise any right hereunder on the part of the Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding the fact that 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 the 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 the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any
of its rights, powers or remedies hereunder. 
  

 15 

 h) Notices. Any notice, request or other document required or permitted to be
given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Subscription Agreement. 
 i) Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges
of the Holder, shall give rise to any liability of the 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. The 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 and not to assert the defense in any action for specific performance that a remedy at law would be adequate. 
 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 the 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. 
 o)
Counterparts and Facsimile. This Warrant may be executed in any number of counterparts and by facsimile, each of which so executed shall constitute an original and all of which taken together shall form one and the same Warrant. 

******************** 
 REMAINDER OF PAGE
LEFT INTENTIONALLY BLANK 
  

 16 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the
date first above indicated. 
  

			
	STERLING MINING COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 17 

 NOTICE OF EXERCISE 
  

			
	TO:	 	STERLING MINING COMPANY

 (1) The undersigned hereby elects to purchase
             Warrant Shares of the Company 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 

  

	 	 ̈	[if permitted] the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect
to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c). 

 (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 by physical delivery of a certificate to: 
  

					
		 	  
	 	
		 	  
	 	
		 	  
	 	

 (4) Accredited Investor. The undersigned is an “accredited investor” as defined
in Regulation D promulgated under the Securities Act of 1933, as amended. 
 [SIGNATURE OF HOLDER] 
  

			
	Name of Investing Entity:
                                        
                                        
                                        
                    
	Signature of Authorized Signatory of Investing Entity:
                                        
                                        
               
	Name of Authorized Signatory:
                                        
                                        
                                        
           
	Title of Authorized Signatory:
                                        
                                        
                                        
             
	Date:
                                        
                                        
                                        
                                        
             

 NOTICE OF EXERCISE 
 (If Registration Statement Not Effective) 
  

			
	 TO:
	  	 STERLING MINING COMPANY

 The undersigned holder of the within Warrant Certificate, hereby exercises certain Warrants (the
“Exercised Warrants”) evidenced thereby and hereby subscribes for a number of Common Shares of Sterling Mining Company equal to such number of Common Shares or number or amount of other securities or property, or combination thereof, to
which such exercise entitles him under the provisions of the Warrant at an aggregate price equal to the product of the Exercise Price and the number of Exercised Warrants, and on the terms specified in such Warrant Certificate, and in payment
therefor, delivers herewith a bank draft, certified cheque or money order payable to Sterling Mining Company. Capitalized terms not defined herein shall have the definitions set forth in the Agency Agreement. 
 The undersigned represents that it (A) has had access to such current public information concerning Sterling Mining Company as it considered
necessary in connection with its investment decision and (B) understands that the securities issuable upon exercise hereof have not been registered under the United States Securities Act of 1933, as amended (the “1933 Act”).

 The undersigned represents and warrants that it: [CHECK ONE ONLY] 
 A. is not a U.S. Purchaser and it (1) is not in the United States; (2) is not a U.S. Person and is not exercising the Warrants for, or on behalf
or benefit of, a U.S. Person or person in the United States; (3) did not execute or deliver the Subscription Form in the United States; (4) agrees not to engage in hedging transactions with regard to the Common Shares prior to the
expiration of the one-year distribution compliance period set forth in Rule 903(b)(3) of Regulation S; (5) acknowledges that the Common Shares issuable upon exercise of the Warrants are “restricted securities” as defined in Rule 144
of the 1933 Act and upon the issuance thereof, and until such time as the same is no longer required under the applicable requirements of the 1933 Act or applicable U.S. state laws and regulations, the certificates representing the Common Shares
will bear a restrictive legend; and (6) acknowledges that the Company shall refuse to register any transfer of the Common Shares not made in accordance with the provisions of Regulation S, pursuant to registration under the 1933 Act, or
pursuant to an available exemption from registration under the 1933 Act; and (B) it holder has not engaged in any “directed selling efforts” (as defined in Regulation S) in the United States. 
 B. the undersigned is delivering a written opinion of United States counsel or a written confirmation from the Company to the effect that the Common
Shares to be delivered upon exercise hereof have been registered under the 1933 Act or are exempt from registration thereunder. 
 C. the
undersigned elects to exercise its the “cashless” exercise right in accordance with the terms hereof and Section 2(c) of the Warrant Certificate with respect to
             Warrants. The undersigned receive that number of Common Shares equal to quotient obtained by dividing [(A-B) (X)] by (A), where: 
  

					
	 (A)
	  	=	 	the daily volume weighted average price of the Common Stock on the Business Day immediately preceding the date of such election on the trading market on which the Common Stock is then listed or
quoted, based on a Business Day from 9:30 a.m. New York City time to 4:02 p.m. New York City time (“VWAP);

  

 19 

					
			
	 (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.

 Unless Box C above is checked, the undersigned holder understands that the certificate
representing the Company’s Common Shares is issued upon exercise of this Warrant will bear a legend restricting the transfer without registration under the U.S. Securities Act and applicable state securities laws substantially the form set
forth in Section 2(e)(x) of the Warrant certificate. 
 If the holder has checked Box C above, upon exercise of the Warrants pursuant to
the cashless exercise provision in Section 2(c) of the Warrant Certificate, the holder must tender the original warrant certificate; the exercise form and this Notice of Exercise directly to Sterling Mining Company. 
  

	
	 Name:

	 Please print or type name and address (including postal code)

	
	 Address:

	 Number of Warrants being Exercised:

 DATED this day
                     of           ,         
  

					
	 Signature guaranteed by:
	  		  	
			
		  	 Name of registered holder (please print)
	  	
			
		  		  	  
 Signature of or on behalf of registered holder

			
		  		  	  
 Office, Title or other
Authorization
 (if holder not an individual)

  

 20 

 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, [            ] all of or [            ] shares of 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.Form of Compensation Option Certificate to Brokers

 Exhibit 4.3 
 UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (i) AUGUST 2, 2007 AND (ii) THE DATE THE ISSUER BECAME A
REPORTING ISSUER IN ANY PROVINCE OR TERRITORY. 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “1933 ACT”) OR APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND SUCH LAWS
COVERING SUCH SECURITIES, OR THE CORPORATION RECEIVES AN OPINION OF COUNSEL ACCEPTABLE TO THE CORPORATION STATING THAT SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE SECURITIES
ACT AND SUCH LAWS. THE SECURITIES REPRESENTED BY THE CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933 ACT. 
 COMPENSATION OPTION CERTIFICATE 
 STERLING MINING COMPANY 
 (Incorporated under the laws of the State of Idaho) 
  

			
	 COMPENSATION OPTION
 CERTIFICATE NO.         
	 	                                 COMPENSATION OPTIONS

 THIS IS TO CERTIFY THAT 
 [Name of holder] 
 [Address of holder] 
 (the “Compensation Optionholder”) is the registered holder of the number of compensation options (the “Compensation Options”) stated
above and is entitled to receive for each Compensation Option, in the manner and subject to the restrictions and adjustments set forth herein, one broker warrant (a “Broker Warrant”) of Sterling Mining Company (the
“Corporation”) for no additional consideration. Each Broker Warrant shall entitle the holder thereof to purchase one unit (a “Unit”) of the Corporation at a price of US$3.25 per Unit until August 2, 2009. Each
Unit shall consist, subject to adjustments, of one share of common stock of the Corporation (a “Common Share”), par value U.S.$ 0.05 per share and one half of one share purchase warrant (each whole warrant, a
“Warrant”). Each Warrant is exercisable for one Common Share until August 2, 2009, at an exercise price of U.S. $4.10 per Common Share. The Broker Warrants shall be governed by certificates substantially in the form and terms
attached hereto. 
 The Compensation Options evidenced by this certificate will be automatically exercised (the “Automatic Exercise”) into
Broker Warrants, without any action or additional payment, on the part of the Compensation Optionholder, on the third business day after a Final Receipt (as defined herein) has been issued. The Corporation shall upon such automatic exercise,
register certificates representing the Broker Warrants issued upon the Automatic Exercise in the name and at the address appearing on the Compensation Option register maintained by the Corporation. 

 The right to acquire Broker Warrants may only be exercised by the Compensation Optionholder at any time prior to the
Automatic Exercise by: 
  

	 	(a)	duly completing and executing the exercise form (the “Exercise Form”) attached hereto as Appendix “A”; and 

  

	 	(b)	surrendering this compensation option certificate (the “Compensation Option Certificate”), with the Exercise Form to the Corporation at its principal address at 609
Bank Street, Wallace, Idaho, U.S.A., 83873. 

 The Compensation Options represented by this Compensation Option Certificate shall be deemed to
be surrendered only upon personal delivery hereof or, if sent by mail or other means of transmission, upon actual receipt thereof by the Corporation at the office referred to above, unless the Corporation accepts another form of delivery.

 All capitalized terms used but not otherwise defined herein, shall have the meaning ascribed to such terms in the agency agreement among TD Securities
Inc. and Blackmont Securities Inc. and the Corporation, dated the date hereof. 
 Upon the exercise of Compensation Options, the person or persons in whose
name or names the Broker Warrants issuable upon subscription of the Broker Warrants are to be issued shall be deemed for all purposes to be the Compensation Optionholder or Compensation Optionholders of record of such Broker Warrants and upon
surrender of these Compensation Options, the Corporation covenants that it will cause a certificate or certificates representing such Broker Warrants to be delivered or mailed to the person or persons at the address or addresses specified in the
Exercise Form attached hereto as Appendix “A” within three business days. 
 The registered Compensation Optionholder of these Compensation Options
may acquire any lesser number of Broker Warrants than the number of Broker Warrants which may be purchased for the Compensation Options represented by this Compensation Option Certificate. In such event, the Compensation Optionholder shall be
entitled to receive a new Compensation Option Certificate for the balance of the Broker Warrants which may be purchased. No Broker Warrants will be issued and no cash consideration will be paid in lieu of fractional Broker Warrants. 
 The Corporation covenants and agrees that it will (i) file and obtain a receipt for the Prospectus in Canada within 90 days of the date hereof, and (ii) no
later than 14 days after the date hereof, file a Registration Statement and use its best efforts to have such registration statement declared effective by the Securities and Exchange Commission (“SEC”) within 90 days hereof to
register the resale of the Common Shares (including the Common Shares underlying the Warrants). The term “Registration Statement” means the registration statement or statements of the Corporation that may be filed with the SEC, as
amended and supplemented, in order to register the Common Shares (including the Common Shares underlying the Warrants). 
 The Corporation covenants and
agrees that sufficient Broker Warrants shall be created, allotted and reserved for issuance to satisfy the conversion or deemed conversion of the Compensation Options herein provided for, and it will cause the Broker Warrants, issuable hereunder to
be issued and delivered as directed by the Holder. 
 The Corporation covenants and agrees that, so long as the Compensation Options are outstanding, it will
at all times reserve out of its unissued Common Shares against the exercise by the Holder of the Broker Warrants a sufficient number of Common Shares to enable the Holder to exercise in full its subscription rights upon the basis and upon the terms
and conditions provided for by this Compensation Option Certificate. 
  

 - 2 - 

 In the event that, at any time prior to, the conversion or automatic conversion of this Compensation Option Certificate
into the underlying Broker Warrants, there shall have occurred one or more events which would require an adjustment or adjustments in accordance with section 11 of the Form of Broker Warrant (“Broker Warrant Certificate”) attached
hereto as Appendix “B”, then, notwithstanding anything to the contrary herein and notwithstanding that the Broker Warrants issuable on the conversion or automatic conversion hereof may not have been issued to the Holder at the applicable
time, at the time of the issue of the Common Shares upon the exercise of such Broker Warrants, the same adjustment or adjustments in accordance with section 11 of the Broker Warrant Certificate shall be made to the number of Common Shares issuable
upon any exercise of the Broker Warrants and/or the exercise price in respect of such Broker Warrants as is equitable, mutatis mutandis. 
 The
Corporation will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged or delivered, all acts, deeds, assurances in law as may be reasonably required for the better accomplishing and effecting of the intentions and
provisions of the Compensation Option Certificate and the Broker Warrant Certificate. 
 Any notice to be given hereunder may be given by delivery to the
Holder, or by prepaid registered mail addressed to the Holder, at the following address: 
 TD Securities Inc. 
 Toronto-Dominion Tower 
 66 Wellington Street W., 9th Floor 
 Toronto,
Ontario 
 M5K 1A2 
 Attention: Gorden Glenn 
 or to such other address as the Holder may from time to time in writing notify the Corporation. 
 All certificates issued in exchange for or in substitution of, the Compensation Option Certificates, subsequent to the date that is (A) the date on which a Final Receipt is issued (the term “Final
Receipt” means a receipt for a final long form prospectus (“Prospectus”) of the Corporation to qualify the Common Shares and Warrants, issued by the securities regulatory authorities of the jurisdictions of Canada where the
holder of the Compensation Options issued by the Corporation on August 2, 2007 reside) or (B) four months and a day after the later of (i) August 2, 2007, and (ii) the date the Corporation became a reporting issuer in any
province or territory of Canada (the “Freetrade Date”), shall bear no legend for Canadian securities law purposes. 
 In the event that the
Compensation Options are exercised by the Compensation Optionholder prior to the Freetrade Date, the certificates evidencing the Broker Warrants shall bear the following legend: 
 “UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY
AFTER THE LATER OF (i) AUGUST 2, 2007, AND (ii) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.” 
  

 - 3 - 

 The certificates representing the Broker Warrants and/or the Common Shares and Warrants, if issued prior to the
Registration Statement (as such term is defined in the subscription agreement between the Corporation and the investor in connection with the offering of up to 6,200,000 special warrants by the Corporation) becoming effective, and all certificates
issued in substitution or exchange thereof, will bear a legend substantially in the following form: 
 “THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”) OR APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS THERE IS AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND SUCH LAWS COVERING SUCH SECURITIES, OR THE CORPORATION RECEIVES AN OPINION OF COUNSEL ACCEPTABLE TO THE CORPORATION STATING THAT SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM
THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. THE SECURITIES REPRESENTED BY THE CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE 1933
ACT.” 
 In addition, Warrants shall bear a legend substantially in the following form: 
 “THIS WARRANT [AND IF THE REGISTRATION STATEMENT HAS NOT BECOME EFFECTIVE AT THE TIME OF ISSUANCE OF THE WARRANTS, ADD THE FOLLOWING: AND THE
SECURITIES ISSUABLE UPON EXERCISE HEREOF] HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS WARRANT MAY NOT BE EXERCISED BY
OR ON BEHALF OF A U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS THIS WARRANT AND SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE 1933 ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN
EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.” 
 provided that, if at any time, in the opinion of counsel to the Corporation, such legends are no longer necessary or advisable under any such securities laws, or the holder of any such legended certificate, at the
holder’s expense, provides the Corporation with evidence satisfactory in form and substance to the Corporation (which may include an opinion of counsel satisfactory to the Corporation) to the effect that such legends are not required, such
legended certificate may thereafter be surrendered to the Corporation in exchange for a certificate which does not bear such legend. 
 The holding of the
Compensation Options evidenced by this Compensation Option Certificate shall not constitute the Compensation Optionholder hereof a shareholder of the Corporation or entitle the Compensation Optionholder to any right or interest in respect thereof
except as expressly provided in this Compensation Option Certificate. 
 The Compensation Options evidenced by this Compensation Option Certificate may not
be transferred except with the written consent of the Corporation. 
  

 - 4 - 

 Compliance with applicable securities legislation is the responsibility of the Compensation Optionholder or its
transferee. 
 This Compensation Option Certificate shall be governed by and interpreted in accordance with the laws of Ontario and the federal laws of
Canada applicable therein. 
 This Compensation Option Certificate shall not be valid for any purpose whatever unless and until it has been certified by or
on behalf of the Corporation. 
 Adjustments to Broker Warrants and Warrants shall be made in accordance with the terms of the attached Broker Warrant
Certificate and the Warrant certificate, as the case may be. 
 The Corporation may deem and treat the registered owner of any Compensation Option
Certificate as the absolute owner of the Compensation Option 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 Compensation Optionholder shall be entitled to the rights evidenced by its Compensation Option Certificate free from all equities or rights of set off or counterclaim between the
Corporation and the original or any intermediate Compensation Optionholder thereof and all Persons may act accordingly and the receipt of any such Compensation Optionholder of the Units which may be acquired pursuant thereto 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 Compensation Optionholder except where the Corporation is required to take notice by statute or by order of a court of competent
jurisdiction. 
 Immediately after the Automatic Exercise, all rights under any Compensation Option to acquire Broker Warrants, in respect of which the right
of acquisition herein and therein provided shall not have been exercised, shall cease and terminate and such Compensation Option shall be void and of no further force or effect, except to the extent that the Compensation Optionholder has not
received certificates representing Broker Warrants held by it, in which case the Compensation Optionholders’ rights shall continue until it has received that to which it is entitled hereunder. 
 This Compensation Option Certificate may be executed by facsimile, which so executed shall constitute an original Compensation Option Certificate. 
 Time shall be of the essence hereof. 
  

 - 5 - 

 IN WITNESS WHEREOF the Corporation has caused this Compensation Option Certificate to be signed by its duly authorized
officer as of the      day of             , 2007. 
  

			
	STERLING MINING COMPANY
		
	By:	 	  

		
	By:	 	  

  

 - 6 - 

 APPENDIX “A” 
 EXERCISE FORM 
  

	TO:	STERLING MINING COMPANY 

 1. The undersigned registered
Compensation Optionholder of the within warrants (the “Warrants”) hereby irrevocably subscribes for the number of Broker Warrants of Sterling Mining Company (the “Corporation”) as indicated, for no further payment, upon the terms
applicable to these Compensation Options. 
  

			
	NUMBER OF BROKER WARRANTS SUBSCRIBED FOR:	 	  

		
	Further Compensation Option Certificate required for balance of Compensation Options evidenced hereby:	 	  

 2. The Broker Warrants (or other security or property) are to be delivered as follows (check one): 
  

													
	A.	 	 	 	To the registered address above	 	 	 	B.	 		 	To the following address below:
		 		 		 		 		 		 	  

		 		 		 		 		 		 	  

		 		 		 		 		 		 	  

 3. The undersigned represents, warrants and certifies that the undersigned holder (i) at the time of exercise
of the Compensation Options is not in the Unite 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 the
Compensation Option on behalf of a “U.S. person”; and (iii) did not execute or deliver this exercise form in the United States. 
 DATED this
     day of             , 200    . 
  

					
	  
	 		 	  

	 Signature
 Guaranteed
	 		 	 Signature
 (Signature of Compensation Optionholder
must correspond with the name that appears on the face of the Compensation Option Certificate)

			
		 		 	  

		 		 	 (Name in Full - Please print)

		 		 	 (Address)

		 		 	  

		 		 	  

		 		 	 (Telephone Number)

 APPENDIX “B” 
 FORM OF BROKER WARRANT 
 [UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE
HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS FOUR MONTHS AND ONE DAY AFTER THE LATER OF (i) AUGUST 2, 2007; AND (ii) THE DATE THAT THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.

 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND SUCH LAWS COVERING SUCH
SECURITIES, OR THE CORPORATION RECEIVES AN OPINION OF COUNSEL ACCEPTABLE TO THE CORPORATION STATING THAT SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE SECURITIES ACT AND SUCH
LAWS. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE SECURITIES ACT.] 
 EXERCISABLE PRIOR TO 5:00 P.M., TORONTO TIME, ON THE EXPIRY DAY (AS DEFINED BELOW) AT WHICH TIME THESE BROKER WARRANTS SHALL EXPIRE AND BE NULL AND
VOID. 
 BROKER WARRANTS TO PURCHASE UNITS 
 OF 
 STERLING MINING COMPANY 
 (incorporated under the laws of Idaho) 
  

			
	Number BW -             	 	Number of Units represented by this certificate:             

 THIS CERTIFIES THAT, for value received,
                                (the “Holder”), being the
registered holder of this broker warrant (“Broker Warrant”) is entitled, at any time prior to 5:00 p.m. (Pacific time) on the Expiry Day (as defined below) to subscribe for and purchase the number of units (the “Broker
Units”) of Sterling Mining Company (the “Corporation”) set forth above on the basis of one Broker Unit at a price of U.S.$3.25 (the “Exercise Price”) for each Broker Warrant exercised, subject to adjustment
as set out herein, by surrendering to the Corporation at its principal office, 609 Bank St., Wallace Idaho, 83873, U.S.A., this Broker Warrant certificate (the “Broker Warrant Certificate”), with a completed and executed
subscription form, and payment in full for the Broker Units being purchased. 
 Each Broker Unit shall consist of one Common Share (as
hereinafter defined) in the capital of the Corporation (a “Broker Share”) and one-half of one Common Share purchase warrant (a “Broker Unit Warrant”). Each whole Broker Unit Warrant will entitle the holder thereof
to purchase one Common Share (a “Broker Unit Warrant Share”) at a price of U.S. $4.10 in accordance with and pursuant to the terms of the Warrant Certificate (as defined below) for 24 months following the Closing Date (as defined
herein). 
 The Corporation shall treat the Holder as the absolute owner of this Broker Warrant for all purposes and the Corporation shall
not be affected by any notice or knowledge to the contrary. The Holder shall be entitled to the rights evidenced by this Broker 

 
Warrant free from all equities and rights of set-off or counterclaim between the Corporation and the original or any intermediate holder and all persons may
act accordingly and the receipt by the Holder of the Broker Units issuable upon exercise hereof shall be a good discharge to the Corporation and the Corporation shall not be bound to inquire into the title of any such Holder. 
  

	1.	Definitions: In this Broker Warrant Certificate, unless there is something in the subject matter or context inconsistent therewith, the following expressions shall
have the following meanings namely: 

  

	 	(a)	“Adjustment Period” means the period commencing on the date hereof and ending at the Expiry Time; 

  

	 	(b)	“Broker Unit” means the unit comprised of the Broker Shares and the Broker Unit Warrants issuable upon the exercise of the Broker Warrants; 

  

	 	(c)	“Broker Share” means the Common Shares issuable upon the exercise of the Broker Warrants and comprising part of the Broker Units; 

  

	 	(d)	“Broker Unit Warrant” means a Common Share purchase warrant containing the terms and conditions set forth in the certificate in the form attached hereto as Schedule
“A” to be dated as at the date hereof and comprising part of the Broker Units; 

  

	 	(e)	“Broker Warrant” means a broker warrant exercisable to purchase one Broker Unit at the Exercise Price until the Expiry Time; 

  

	 	(f)	“Business Day” means any day other than a Saturday, Sunday, legal holiday or a day on which banking institutions are closed in Toronto, Ontario; 

 

	 	(g)	“Closing Date” means August 2, 2007; 

  

	 	(h)	“Common Shares” means the common shares of the Corporation, par value U.S. $0.05 per share, as such shares are constituted on the date hereof, as the same may be
reorganized, reclassified or otherwise changed pursuant to any of the events set out in Section 11 hereof; 

  

	 	(i)	“Corporation” means Sterling Mining Company, a Corporation incorporated under the laws of Idaho and its successors and assigns; 

  

	 	(j)	“Current Market Price” of the Common Shares shall be the weighted average sale price per share for the Common Shares for the 20 consecutive trading days immediately before
such date on such principal stock exchange or over-the-counter market as the Common Shares may then be listed or quoted (as the case may be). The weighted average price shall be determined by dividing the aggregate sale price of all such Common
Shares sold on the said exchange during the said 20 consecutive trading days by the total number of such Common Shares so sold; 

  

	 	(k)	“Dividends Paid in the Ordinary Course” means dividends paid in any financial year of the Corporation, whether in (i) cash, (ii) shares of the Corporation,
(iii) warrants or similar rights to purchase any shares of the Corporation or property or other assets of the Corporation provided that the value of such dividends does not in such financial year exceed the greater of 

 

	 	(i)	150% of the aggregate amount of dividends paid by the Corporation on the Common Shares in the 12-month period ending immediately prior to the first day of such financial year, and

  

 - 9 - 

	 	(ii)	100% of the consolidated net earnings from continuing operations of the Corporation, before any extraordinary items, for the 12-month period ending immediately prior to the first
day of such financial year (such consolidated net earnings from continuing operations to be computed in accordance with generally accepted accounting principles in Canada); 

  

	 	(l)	“Exercise Price” means U.S.$3.25 per Broker Unit, subject to adjustment in accordance with Section 11 hereof; 

  

	 	(m)	“Expiry Day” means that date which is 24 months following the Closing Date; 

  

	 	(n)	“Expiry Time” means 5:00 p.m., Toronto time, on the Expiry Day; 

  

	 	(o)	“Final Receipt” means a receipt for the Prospectus issued by the securities regulatory authorities of the jurisdictions of Canada where the holder of the Compensation
Options issued by the Corporation on August l, 2007 reside; 

  

	 	(p)	“Freetrade Date” means four months and a day after the later of (i) August l, 2007, and (ii) the date the Corporation became a reporting issuer in any province or territory of Canada 

  

	 	(q)	“Holder” means the holder set forth on the first page hereof; 

  

	 	(r)	“person” means an individual, corporation, partnership, unincorporated syndicate, unincorporated organization, trust, trustee, executor, administrator, or other legal
representative, or any group or combination thereof or any other entity whatsoever; 

  

	 	(s)	“Prospectus” means a final long form prospectus of the Corporation to be filed in all applicable jurisdictions to qualify the Common Shares, the Warrants and the Broker
Warrants; 

  

	 	(t)	“Registration Statement” means the resale registration statement of the Corporation filed with the SEC with respect to the resale of the Underlying Securities;

  

	 	(u)	“Trading Day” with respect to a stock exchange, market or over-the-counter market means a day on which such stock exchange or over-the-counter market is open for business;

  

	 	(v)	“Underlying Securities” means the Common Shares and Broker Unit Warrants. 

  

	 	(w)	“Warrants” means a Common Share purchase warrant of the Corporation. 

	2.	Expiry Time: At the Expiry Time, all rights under the Broker Warrants evidenced hereby, in respect of which the right of subscription and purchase herein provided for
shall not theretofore have been exercised, shall expire and be of no further force and effect. 

  

	3.	Exercise Procedure: 

  

	 	a)	The Holder may exercise the right to subscribe and purchase the number of Broker Units herein provided for by delivering to the Corporation prior to the Expiry Time at its principal
office this Broker Warrant Certificate, with the subscription form attached hereto duly completed and executed by the Holder or its legal representative or attorney, duly appointed by an instrument in writing in form and manner satisfactory to the
Corporation, together with a certified cheque or bank draft payable to or to the order of the Corporation in an amount equal to the aggregate Exercise Price in respect of the Broker Warrants so exercised. Any Broker Warrant Certificate so
surrendered shall be deemed to be surrendered only upon delivery thereof to the Corporation at its principal office set forth herein (or to such other address as the Corporation may notify the Holder). 

  

	 	b)	Upon such delivery as aforesaid, the Corporation shall cause to be issued to the Holder hereof the Broker Units subscribed for not exceeding those which such Holder is entitled to
purchase pursuant to this Broker Warrant Certificate and the Holder hereof shall become a shareholder of the Corporation in respect of the Broker Shares comprising part of the Units subscribed for with effect from the date of such delivery and shall
be entitled to delivery of a certificate evidencing the Broker Shares and Broker Unit Warrants comprising the Broker Units and the Corporation shall cause such certificates to be mailed to the Holder hereof at the address or addresses specified in
such subscription as soon as practicable, and in any event within five Business Days of such delivery. 

  

	 	c)	The certificate(s) representing the Broker Shares and Broker Unit Warrants issued by the Corporation prior to the date of Final Receipt or the Freetrade Date upon the exercise of
the Broker Warrants shall bear the following legend, or such other legend as may be deemed appropriate at the time of such issuance: 

 “UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS FOUR MONTHS AND ONE DAY AFTER THE LATER OF (i) AUGUST <>, 2007; AND (ii) THE DATE THAT THE
ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY. 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND SUCH LAWS COVERING SUCH SECURITIES, OR THE CORPORATION RECEIVES AN OPINION OF COUNSEL ACCEPTABLE TO THE CORPORATION STATING THAT SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE SECURITIES ACT.” 
 provided that, if at any time, in the opinion of counsel to the Corporation, such legends are no longer necessary or advisable under any such securities
laws, or the holder of any such legended certificate, provides the Corporation with evidence satisfactory in form and substance to the Corporation (which may include an opinion of counsel satisfactory to 

 
the Corporation) to the effect that such legends are not required, such legended certificate may thereafter be surrendered to the Corporation in exchange for
a certificate which does not bear such legend. 
  

	 	d)	This Broker Warrant may not be exercised in the United States or by or on behalf of a U.S. Person unless an exemption is available from the registration requirements of the U.S.
Securities Act and applicable state securities laws and the holder of this Broker Warrant has furnished an opinion of counsel of recognized standing in form and substance satisfactory to the Corporation to such effect. 

  

	4.	Partial Exercise: The Holder may subscribe for and purchase a number of Broker Units less than the number the Holder is entitled to purchase pursuant to this Broker
Warrant Certificate. In the event of any such subscription prior to the Expiry Time, the Holder shall in addition be entitled to receive, without charge, a new Broker Warrant Certificate in respect of the balance of the Broker Units which the Holder
was entitled to subscribe for pursuant to this Broker Warrant Certificate and which were then not purchased. 

  

	5.	No Fractional Shares: Notwithstanding any adjustments provided for in Section 11 hereof or otherwise, the Corporation shall not be required upon the exercise of
any Broker Warrants to issue fractional Broker Shares or Broker Unit Warrants comprising the Broker Units in satisfaction of its obligations hereunder and, in any such case, the number of Broker Shares and Broker Unit Warrants issuable upon the
exercise of any Broker Warrants shall be rounded down to the nearest whole number. 

  

	6.	Exchange of Broker Warrant Certificates: This Broker Warrant Certificate may be exchanged for Broker Warrant Certificates representing in the aggregate the same number
of Broker Warrants and entitling the Holder thereof to subscribe for and purchase an equal aggregate number of Broker Units at the same Exercise Price and on the same terms as this Broker Warrant Certificate (with or without legends as may be
appropriate). 

  

	7.	Transfer of Broker Warrants: Subject to applicable law, the Holder may not transfer the within Broker Warrants except to a subsidiary or to an entity of which the
Holder is a subsidiary. Subject to the foregoing, the Corporation shall issue and mail as soon as practicable, and in any event within five Business Days of such delivery, a new Broker Warrant Certificate (with or without legends as may be
appropriate) registered in the name of the transferee or as the transferee may direct and shall take all other necessary actions to effect the transfer as directed. 

  

	8.	Not a Shareholder: Nothing in this Broker Warrant Certificate or in the holding of a Broker Warrant evidenced hereby shall be construed as conferring upon the Holder
any right or interest whatsoever as a shareholder of the Corporation. 

  

	9.	No Obligation to Purchase: Nothing herein contained or done pursuant hereto shall obligate the Holder to subscribe for or the Corporation to issue any shares or
warrants except those shares and warrants in respect of which the Holder shall have exercised its right to purchase hereunder in the manner provided herein. 

  

	10.	Covenants: 

  

	 	a)	 The Corporation covenants and agrees that so long as any Broker Warrants evidenced hereby remain outstanding, it shall reserve and there shall remain unissued out
of its authorized capital a sufficient number of Broker Shares to satisfy the right of purchase herein provided for, it will cause the Broker Shares comprising part of the Broker Unit subscribed for and 

	 	 
purchased in the manner herein provided to be issued and delivered as directed and such Broker Shares shall be issued as fully paid and non-assessable Common
Shares and the holders thereof shall not be liable to the Corporation or to its creditors in respect thereof. 

  

	 	b)	The Corporation covenants and agrees that sufficient Broker Unit Warrants shall be created, allotted and reserved for issuance to satisfy the right of purchase herein provided for,
and that the Broker Unit Warrant Shares to be issued in accordance with and pursuant to the terms of the Warrant Certificate shall be allotted and reserved for issuance, and the Corporation will cause the Broker Unit Warrants comprising part of the
Broker Units subscribed for and purchased herein provided to be issued and delivered as directed and the holders thereof shall not be liable to the Corporation or its creditors in respect thereof. 

  

	 	c)	The Corporation shall use all reasonable best efforts to preserve and maintain its corporate existence and to ensure that the Corporation shall make all requisite filings under
applicable securities legislation necessary to remain a reporting issuer not in default. 

  

	 	d)	The Corporation will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, all other acts, deeds and assurances in law as may be reasonably
required for the better accomplishing and effecting of the intentions and provisions of this Broker Warrant Certificate. 

  

	11.	Adjustments: 

  

	 	a)	The rights of the holder of this Broker Warrant, including the number of Broker Units issuable upon the exercise of such Broker Warrant, will be adjusted from time to time in the
events and in the manner provided in, and in accordance with the provisions of, this Section. 

  

	 	b)	The Exercise Price in effect at any date will be subject to adjustment from time to time as follows: 

  

	 	(i)	Share Reorganization: If and whenever at any time during the Adjustment Period, the Corporation shall (A) subdivide, redivide or change the outstanding Common Shares
into a greater number of Common Shares, (B) consolidate, combine or reduce the outstanding Common Shares into a lesser number of Common Shares, or (C) fix a record date for the issue of Common Shares or securities convertible into or
exchangeable for Common Shares to all or substantially all of the holders of Common Shares by way of a stock dividend or other distribution other than a Dividend Paid in the Ordinary Course, then, in each such event, the Exercise Price shall, on the
record date for such event or, if no record date is fixed, the effective date of such event, be adjusted so that it will equal the rate determined by multiplying the Exercise Price in effect immediately prior to such date by a fraction, of which the
numerator shall be the total number of Common Shares outstanding on such date before giving effect to such event, and of which the denominator shall be the total number of Common Shares outstanding on such date after giving effect to such event.
Such adjustment shall be made successively whenever any such event shall occur. Any such issue of Common Shares by way of a stock dividend shall be deemed to have been made on the record date for such stock dividend for the purpose of calculating
the number of outstanding Common Shares under paragraphs 11(b)(i) and (ii) hereof. 

	 	(ii)	Rights Offering: If and whenever at any time during the Adjustment Period, the Corporation shall fix a record date for the issue of rights, options or warrants to all or
substantially all of the holders of Common Shares entitling the holders thereof, within a period expiring not more than 45 days after the record date for such issue, to subscribe for or purchase Common Shares (or securities convertible into or
exchangeable for Common Shares) at a price per share (or having a conversion or exchange price per share) less than 95% of the Current Market Price on such record date, then the Exercise Price shall be adjusted immediately after such record date so
that it will equal the rate determined by multiplying the Exercise Price in effect on such record date by a fraction, of which the numerator shall be the total number of Common Shares outstanding on such record date plus the number of Common Shares
equal to the number arrived at by dividing the aggregate price of the total number of additional Common Shares so offered for subscription or purchase (or the aggregate conversion or exchange price of the convertible or exchangeable securities so
offered) by such Current Market Price, and of which the denominator shall be the total number of Common Shares outstanding on such record date plus the total number of additional Common Shares so offered for subscription or purchase (or into or for
which the convertible or exchangeable securities so offered are convertible or exchangeable). Any Common Shares owned by or held for the account of the Corporation or any subsidiary of the Corporation shall be deemed not to be outstanding for the
purpose of any such computation. Such adjustment shall be made successively whenever such a record date is fixed, provided that if two or more such record dates referred to in this paragraph 11(b)(ii) are fixed within a period of 25 Trading
Days, such adjustment will be made successively as if each of such record dates occurred on the earliest of such record dates. To the extent that any such rights, options or warrants are not exercised prior to the expiration thereof, the Exercise
Price shall then be readjusted to the Exercise Price which would then be in effect based upon the number of Common Shares (or securities convertible into or exchangeable for Common Shares) actually issued upon the exercise of such rights, options or
warrants, as the case may be. 

  

	 	(iii)	 Distribution: If and whenever at any time during the Adjustment Period, the Corporation shall fix a record date for the making of a distribution to all or
substantially all of the holders of Common Shares of (A) shares of any class other than Common Shares whether of the Corporation or any other corporation, (B) rights, options or warrants to acquire Common Shares or securities exchangeable
for or convertible into Common Shares or property or other assets of the Corporation (other than rights, options or warrants exercisable by the holders thereof within a period expiring not more than 45 days after the record date for such issue or
distribution to acquire Common Shares or securities exchangeable for or convertible into Common Shares at a price per share, or at an exchange or conversion price per share in the case of securities exchangeable for or convertible into Common
Shares, of at least 95% of the Current Market Price of the Common Shares on such record date), (C) evidences of indebtedness, or (D) cash, securities or other property or assets then, in each such case and if such distribution does not
constitute a Dividend 

	 	 
Paid in the Ordinary Course, or fall under clauses (i) or (ii) above, the Exercise Price will be adjusted immediately after such record date so
that it will equal the rate determined by multiplying the Exercise Price in effect on such record date by a fraction, of which the numerator shall be the total number of Common Shares outstanding on such record date multiplied by the Current Market
Price on the earlier of such record date and the date on which the Corporation announces its intention to make such distribution, less the aggregate fair market value (as determined by the directors, acting reasonably, at the time such distribution
is authorized) of such shares or rights, options or warrants or evidences of indebtedness or cash, securities or other property or assets so distributed, and of which the denominator shall be the total number of Common Shares outstanding on such
record date multiplied by such Current Market Price. Any Common Shares owned by or held for the account of the Corporation or any subsidiary of the Corporation shall be deemed not to be outstanding for the purpose of any such computation. Such
adjustment shall be made successively whenever such a record date is fixed, provided that if two or more such record dates or record dates referred to in this paragraph 11(b)(iii) are fixed within a period of 25 Trading Days, such adjustment will be
made successively as if each of such record dates occurred on the earliest of such record dates. To the extent that any such rights, options or warrants so distributed are not exercised prior to the expiration thereof, the Exercise Price shall then
be readjusted to the Exercise Price which would then be in effect based upon such rights, options or warrants or evidences of indebtedness or cash, securities or other property or assets actually distributed or based upon the number or amount of
securities or the property or assets actually issued or distributed upon the exercise of such rights, options or warrants, as the case may be. 

  

	 	c)	Reclassifications: If and whenever at any time during the Adjustment Period, there is (A) any reclassification of or amendment to the outstanding Common Shares, any
change of the Common Shares into other shares or any other reorganization of the Corporation (other than as described in subsection 11(b) hereof), (B) any consolidation, amalgamation, arrangement, merger or other form of business combination of
the Corporation with or into any other corporation resulting in any reclassification of the outstanding Common Shares, any change of the Common Shares into other shares or any other reorganization of the Corporation, or (C) any sale, lease,
exchange or transfer of the undertaking or assets of the Corporation as an entirety or substantially as an entirety to another corporation or entity, then, in each such event, the Holder of this Broker Warrant which is thereafter exercised shall be
entitled to receive, and shall accept, in lieu of the number of Common Shares to which such Holder was theretofore entitled upon such exercise, the kind and number or amount of shares or other securities or property which such Holder would have been
entitled to receive as a result of such event if, on the effective date thereof, such Holder had been the registered holder of the number of Common Shares to which such Holder was theretofore entitled upon such exercise. If necessary as a result of
any such event, appropriate adjustments will be made in the application of the provisions set forth in this subsection with respect to the rights and interests thereafter of the Holder of this Broker Warrant certificate to the end that the
provisions set forth in this subsection will thereafter correspondingly be made applicable, as nearly as may reasonably be, in relation to any shares or other securities or property thereafter deliverable upon the exercise of this Broker Warrant.
Any such adjustments will be made by and set forth in an instrument supplemental hereto approved by the directors, acting reasonably, and shall for all purposes be conclusively deemed to be an appropriate adjustment. 

	 	d)	If at any time during the Adjustment Period any adjustment or readjustment in the Exercise Price shall occur pursuant to the provisions of subsection 11(b) or 11(c) of this
Broker Warrant Certificate, then the number of Broker Units purchasable upon the subsequent exercise of the Broker Warrants shall be simultaneously adjusted or readjusted, as the case may be, by multiplying the number of Broker Units purchasable
upon the exercise of the Broker Warrants immediately prior to such adjustment or readjustment by a fraction which shall be the reciprocal of the fraction used in the adjustment or readjustment of the Exercise Price. 

  

	12.	Rules Regarding Calculation of Adjustment of Exercise Price: 

  

	 	a)	The adjustments provided for in Section 11 are cumulative and will, in the case of adjustments to the Exercise Price, be computed to the nearest whole Broker Unit and will be
made successively whenever an event referred to therein occurs, subject to the following subsections of this Section 12. 

  

	 	b)	No adjustment in the Exercise Price is required to be made unless such adjustment would result in a change of at least 1% in the prevailing Exercise Price and no adjustment in the
Exercise Price is required unless such adjustment would result in a change of at least one one-hundredth of a Broker Warrant; provided, however, that any adjustments which, except for the provisions of this subsection, would otherwise have been
required to be made, will be carried forward and taken into account in any subsequent adjustments. 

  

	 	c)	No adjustment in the Exercise Price will be made in respect of any event described in Section 11, other than the events referred to in clauses 11(1)(c), if the Holder is
entitled to participate in such event on the same terms, mutatis mutandis, as if the Holder had exercised this Broker Warrant prior to or on the effective date or record date of such event. 

  

	 	d)	No adjustment in the Exercise Price will be made under Section 11 in respect of the issue from time to time of Common Shares issuable from time to time as Dividends Paid in the
Ordinary Course to holders of Common Shares who exercise an option or election to receive substantially equivalent dividends in Common Shares in lieu of receiving a cash dividend. 

  

	 	e)	If at any time a question or dispute arises with respect to adjustments provided for in Section 11, such question or dispute will be conclusively determined by the auditor of
the Corporation or, if they are unable or unwilling to act, by such other firm of independent chartered accountants as may be selected by action of the directors of the Corporation and any such determination, subject to regulatory approval and
absent manifest error, will be binding upon the Corporation and the Holder. The Corporation will provide such auditor or chartered accountant with access to all necessary records of the Corporation. 

  

	 	f)	 In case the Corporation after the date of issuance of this Broker Warrant takes any action affecting the Common Shares, other than action described in
Section 11, which in the opinion of the board of directors of the Corporation would materially affect the rights of the Holder, the Exercise Price and/or the number of Common Shares issuable on the exercise of the Broker Warrants, as
applicable, will be adjusted in such manner, if any, and at such time, by action of the directors of the Corporation in their sole discretion, acting reasonably and in good faith, determines to be equitable to the Holder but 

	 	 
subject in all cases to any necessary regulatory approval. Failure of the taking of action by the directors of the Corporation so as to provide for an
adjustment on or prior to the effective date of any action by the Corporation affecting the Common Shares will be conclusive evidence that the board of directors of the Corporation has determined that it is equitable to make no adjustment in the
circumstances. 

  

	 	g)	If the Corporation sets a record date to determine the holders of the Common Shares for the purpose of entitling them to receive any dividend or distribution or sets a record date
to take any other action and, thereafter and before the distribution to such shareholders of any such dividend or distribution or the taking of any other action, decides not to implement its plan to pay or deliver such dividend or distribution or
take such other action, then no adjustment in the Exercise Price will be required by reason of the setting of such record date. 

  

	 	h)	In the absence of a resolution of the directors of the Corporation fixing a record date for any event which would require any adjustment to this Broker Warrant, the Corporation will
be deemed to have fixed as the record date therefor the date on which the event is effected. 

  

	 	i)	As a condition precedent to the taking of any action which would require any adjustment to this Broker Warrant, including the Exercise Price, the Corporation shall take any
corporate action which may be necessary in order that the Corporation or any successor to the Corporation or successor to the undertaking or assets of the Corporation have unissued and reserved in its authorized capital and may validly and legally
issue as fully paid and non-assessable all the shares or other securities which the Holder is entitled to receive on the full exercise thereof in accordance with the provisions hereof. 

  

	 	j)	The Corporation will from time to time, immediately after the occurrence of any event which requires an adjustment or readjustment as provided in Section 11, forthwith give
notice to the Holder specifying the event requiring such adjustment or readjustment and the results thereof, including the resulting Exercise Price. 

  

	 	k)	The Corporation covenants to and in favour of the Holder that so long as this Broker Warrant remains outstanding, it will give notice to the Holder of the effective date or of its
intention to fix a record date for any event referred to in Section 11 whether or not such action would give rise to an adjustment in the Exercise Price or the number and type of securities issuable upon the exercise of the Broker Warrants,
and, in each case, such notice shall specify the particulars of such event and the record date and the effective date for such event; provided that the Corporation shall only be required to specify in such notice such particulars of such event as
have been fixed and determined on the date on which such notice is given. Such notice shall be given not less than 14 days in each case prior to such applicable record date or effective date. 

  

	 	l)	 In any case in which this Section shall require that an adjustment shall become effective immediately after a record date for or an effective date of an event
referred to herein, the Corporation may defer, until the occurrence and consummation of such event, issuing to the Holder of this Broker Warrant, if exercised after such record date or effective date and before the occurrence and consummation of
such event, the additional Broker Shares, Broker Unit Warrants or other securities or property issuable upon such exercise by reason of the adjustment required by such event, provided, however, that the Corporation will deliver to the Holder an
appropriate instrument evidencing the Holder’s right to receive such additional Broker Shares, Broker Unit Warrants or other securities or property upon the occurrence and consummation of such event 

	 	 
and the right to receive any dividend or other distribution in respect of such additional Broker Shares, Broker Unit Warrants or other securities or property
declared in favour of the holders of record of Common Shares or of such other securities or property on or after the Exercise Date or such later date as the Holder would, but for the provisions of this subsection, have become the holder of record of
such additional Broker Shares, Broker Unit Warrants or of such other securities or property. 

  

	 	m)	Any and all adjustments in connection with the exercise price of the Broker Unit Warrants or the number or type of security issuable upon the exercise of the Broker Unit Warrants
shall be made in accordance with the terms of the Broker Unit Warrant certificate attached hereto as Schedule “A”, whether or not those Broker Unit Warrants have been issued, provided that such adjustments do not put the holder in a better
position than the holder would have been in had the holder been a holder of the Broker Unit Warrant at the time of such adjustment. 

  

	13.	Consolidation and Amalgamation: 

  

	 	a)	The Corporation shall not enter into any transaction whereby all or substantially all or its undertaking, property and assets would become the property of any other corporation
(herein called a “successor corporation”) whether by way of reorganization, reconstruction, consolidation, amalgamation, merger, transfer, sale, disposition or otherwise, unless prior to or contemporaneously with the consummation of such
transaction the Corporation and the successor corporation shall have executed such instruments and done such things as the Corporation, acting reasonably, considers necessary or advisable to establish that upon the consummation of such transaction:

  

	 	(i)	the successor corporation will have assumed all the covenants and obligations of the Corporation under this Broker Warrant Certificate, and 

  

	 	(ii)	the Broker Warrant and the terms set forth in this Broker Warrant Certificate will be a valid and binding obligation of the successor corporation entitling the Holder, as against
the successor corporation, to all the rights of the Holder under this Broker Warrant Certificate. 

  

	 	b)	Whenever the conditions of subsection 13(a) shall have been duly observed and performed the successor corporation shall possess, and from time to time may exercise, each and every
right and power of the Corporation under this Broker Warrant in the name of the Corporation or otherwise and any act or proceeding by any provision hereof required to be done or performed by any director or officer of the Corporation may be done and
performed with like force and effect by the like directors or officers of the successor corporation. 

  

	14.	Representation and Warranty: The Corporation hereby represents and warrants with and to the Holder that the Corporation is duly authorized and has the corporate and
lawful power and authority to create and issue this Broker Warrant and the Broker Units issuable upon the exercise hereof and perform its obligations hereunder and that this Broker Warrant represents a valid, legal and binding obligation of the
Corporation enforceable in accordance with its terms. 

  

	15.	 If Share Transfer Books Closed: The Corporation shall not be required to deliver certificates for Broker Shares or Broker Unit Warrants while the
share transfer books of the Corporation are properly closed, 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 Broker Warrant in accordance with the 

	 	 
provisions hereof and the making of any subscription and payment for the Broker Units called for thereby during any such period delivery of certificates for
Broker Shares and Broker Unit Warrants may be postponed for a period not exceeding five Business Days after the date of the re-opening of said share transfer books provided that any such postponement of delivery of certificates shall be without
prejudice to the right of the Holder, if the Holder has surrendered the same and made payment during such period, to receive such certificates for the Broker Shares and Broker Unit Warrants called for after the share transfer books shall have been
re-opened. 

  

	16.	Lost Certificate: If the Broker Warrant Certificate evidencing the Broker Warrants issued hereby becomes stolen, lost, mutilated or destroyed the Corporation may, on
such terms as it may in its discretion, acting reasonably, impose, issue and countersign a new Broker Warrant Certificate of like denomination, tenor and date as the Broker Warrant Certificate so stolen, lost mutilated or destroyed.

  

	17.	Governing Law: This Broker Warrant shall be governed by, and construed in accordance with, the laws of the Province of Ontario and the laws of Canada applicable
therein but the reference to such laws shall not, by conflict of laws, rules or otherwise, require the application of the law of any jurisdiction other than the Province of Ontario. 

  

	18.	Severability: If any one or more of the provisions or parts thereof contained in this Broker Warrant Certificate should be or become invalid, illegal or unenforceable
in any respect in any jurisdiction, the remaining provisions or parts thereof contained herein shall be and shall be conclusively deemed to be, as to such jurisdiction, severable therefrom. 

  

	19.	Headings: The headings of the articles, sections, subsections and clauses of this Broker Warrant Certificate have been inserted for convenience and reference only and
do not define, limit, alter or enlarge the meaning of any provision of this Broker Warrant Certificate. 

  

	20.	Numbering of Articles, etc.: Unless otherwise stated, a reference herein to a numbered or lettered article, section, subsection, clause, subclause or schedule refers
to the article, section, subsection, clause, subclause or schedule bearing that number or letter in this Broker Warrant Certificate. 

  

	21.	Gender: Whenever used in this Broker Warrant Certificate, words importing the singular number only shall include the plural, and vice versa, and words importing the
masculine gender shall include the feminine gender. 

  

	22.	Day not a Business Day: In the event that any day on or before which any action is required to be taken hereunder is not a Business Day, then such action shall be
required to be taken on or before the requisite time on the next succeeding day that is a Business Day. 

  

	23.	Binding Effect: This Broker Warrant Certificate and all of its provisions shall enure to the benefit of the Holder, its successors, assigns and legal personal
representatives and shall be binding upon the Corporation and its successors. 

  

	24.	Notice: Unless herein otherwise expressly provided, a notice to be given hereunder will be deemed to be validly given if the notice is sent by telecopier or prepaid
same day courier addressed as follows: 

 If to the Holder at the latest address of the Holder as recorded on the books of the
Corporation; and 

 If to the Corporation at: 
 Sterling Mining Company 
 609 Bank Street 
 Wallace, ID 
 83873 USA 
 Attention: Raymond De Motte 
 Fax: (208) 556-0227 
  

	24.1	Facsimile. This Broker Warrant Certificate may be executed by facsimile, each of which so executed shall constitute an original Broker Warrant Certificate.

 Time of Essence: Time shall be of the essence hereof. 
 IN WITNESS WHEREOF the Corporation has caused this Broker Warrant Certificate to be signed by its duly authorized officer as of this
     day of             , 200     
  

			
	STERLING MINING COMPANY
		
	Per:	 	  

		 	Raymond De Motte
		 	President

 SUBSCRIPTION FORM 
  

					
		 	TO:	 	Sterling Mining Company
		 		 	609 Bank St.
		 		 	Wallace, ID
		 		 	83873USA
	
	The undersigned holder of the within Broker Warrant hereby irrevocably subscribes for
                                 Broker Units of Sterling Mining Company (the
“Corporation”) pursuant to the within Broker Unit and tenders herewith a certified cheque or bank draft for
$                                 (U.S. $3.25 per Broker Unit) in full payment
therefor.
		
		 	The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked):
			
	 ̈	 	A	 	The undersigned holder (i) at the time of exercise of the Broker Warrant 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 the Broker Warrant 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 (i) acquired the Broker Units directly from the Corporation pursuant to a written subscription agreement for the purchase of Broker Units, with each Broker Unit
consisting of one Common Share and one Broker Unit Warrant, (ii) is exercising the Broker Warrant solely for its own account and not on behalf of any other Person; and (iii) was an “accredited investor”, as that term is defined in
Regulation D under the U.S. Securities Act, both on the date the Broker Warrants were acquired from the Corporation and on the date of exercise of the Broker Warrants.
			
	 ̈	 	C.	 	The undersigned holder has delivered to the Corporation 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.
			
		 		 	DATED this              day of             ,
200    .

  

			
	NAME:	 	  

		
	Signature:	 	  

		
	Registration instructions:	 	  

		
		 	  

              Please check if the certificates
representing the Broker Shares and Broker Unit Warrants are to be delivered at the office where this Broker Warrant Certificate is surrendered, failing which the Broker Share Certificates and the Broker Unit Warrant Certificates will be mailed to
the address in the registration instructions set out above. 
 If any Broker Warrants represented by this Broker Warrant Certificate are not
being exercised, a new Broker Warrant Certificate representing the unexercised Broker Warrants will be issued and delivered with the Broker Share Certificate and Broker Unit Warrant Certificate. 
 Notes: 
 Certificates will not be registered or delivered to an address in
the United States unless Box B or C above is checked. 
 If Box C is to be checked, holders are encouraged to consult with the Corporation in advance to
determine that the legal opinion tendered in connection with exercise will be satisfactory in form and substance to the Corporation. 

 TRANSFER FORM 
 FOR VALUE RECEIVED, the undersigned hereby sells, transfer and assigns to [insert name and address of transferee]
                                        
                                        
                                        
                                        
[insert number of Broker Warrants]
                                       
 Broker Warrants represented by the within Broker Warrant Certificate and appoints
                                        
                                     attorney to transfer the said
Broker Warrants on the books of Sterling Mining Company (the “Corporation”) with full power of substitution in the premises. 
 DATED                     , 200    . 
  

					
	Signature guaranteed	 		 	  

		 		 	(Signature of Registered Holder)
			
		 		 	  

		 		 	(Name of Registered Holder)

  

			
	NOTICE:	 	The signature on this transfer form must correspond with the name as written upon the face of the Broker Warrant Certificate in every particular without alteration or enlargement or any
change whatsoever or this transfer form must be signed by a duly authorized trustee, executor, administrator, curator, guardian, attorney of the Holder or a duly authorized signing officer in the case of a corporation. If this transfer form is
signed by any of the foregoing, or any person acting in a fiduciary or representative capacity, the Broker Warrant Certificate must be accompanied by evidence of authority to sign.
		
		 	All endorsements or assignments of these Broker Warrants must be signature guaranteed by a bank or trust company or by a member of a stock exchange in Canada.

 SCHEDULE “A” – Form of Broker Unit Warrant

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