Document:

madman
                mining co. ltd.

            

    

    

    October
      13, 2006

    

    HI
      HO SILVER RESOURCES INC.

    #
      15A -
      3045 Southcreek Road

    Mississauga,
      Ontario

    Canada
      L4X 2E9

    

    Attention:
      Mr. Frederick S. Fisher, President

    

    Dear
      Mr.
      Fisher:

    

    
      	Re:	
              Property
                Purchase Agreement between Hi Ho Silver Resources Inc. and Madman
                Mining
                Co. Ltd. on the Silver Tip Silver Project, British
                Columbia 

            

    

    

    This
      letter sets forth the terms, and shall act as the agreement (the “Agreement”),
      under which Hi Ho Silver Resources Inc. (“Hi Ho Silver”) can acquire from Madman
      Mining Co. Ltd. (“Madman”) an option to earn a 100% interest in the Silver Tip
      Project (as more particularly described below and referred to herein as the
      “Property”) in the Kaslo area of British Columbia. The terms of this Agreement
      may be subject to regulatory approval.

    

    PART
      I - THE PROPERTY

    

    The
      Property is comprised of two mineral claims covering approximately 900 ha.
      (2,250 acres) located in the Slocan Mining Division of British Columbia and
      is
      more particularly described and set out in the attached Schedule
“A”.

    

    PART
      II - REPRESENTATIONS AND WARRANTIES OF MADMAN

    

    Madman
      represents and warrants to Hi Ho Silver that
      it
      is legally entitled to hold the Property and will remain so entitled until
      the
      interest of Hi Ho Silver in the Property which is subject to this Option has
      been duly transferred to the Hi Ho Silver as contemplated hereby and
that
      the
      Property is validly located, duly recorded, in good standing and legally and
      beneficially owned by Madman, free and clear of any charges, liens, or
      encumbrances, surface rights restrictions or environmental hazards or
      liabilities and that there are no underlying agreements in effect with respect
      to the Property.

    

    Madman
      represents and warrants to Hi Ho Silver that there are no claims against title
      to the Property, nor to the knowledge of Madman is there any basis therefore.
      Madman also represents and warrants to Hi Ho Silver that Madman has full right
      and authority to enter into this agreement and to carry out the transactions
      contemplated herein, that
      entering into this Agreement by Madman does not and will not conflict with,
      and
      does not and will not result in a breach of, any of the terms of its
      incorporating documents or any agreement or instrument to which Madman is a
      party
      and
that
      all
      approvals required to be obtained in order for Madman to do so have been
      obtained.

     

    
      
        

      

    

    #314,
      800
      West Pender Street, Vancouver, British Columbia, Canada, V6C 2V6 ·
      Tel:
      (604) 970-0854 ·
      Fax:
      (604) 669-9626

    email:
      madmanmining@aol.com

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    PART
      III - REPRESENTATIONS AND WARRANTIES OF HI HO SILVER

    

    Hi
      Ho
      Silver represents and warrants to Madman that: it has full corporate power
      and
      authority to enter into this Agreement; that it is a company validly existing
      and in good standing under the laws of Canada; that it is up to date with
      respect to its filings with the applicable governmental corporate agency; and
      that it will use its use its best efforts to have this Agreement filed with
      the
      applicable regulatory bodies, as and if required, in a timely
      manner.

     

    PART
      IV - OPTION

    

    4.1 Madman
      grants to Hi Ho Silver the sole and exclusive right and option to acquire up
      to
      a 100% undivided interest in and to the Property free and clear of all charges,
      encumbrances and claims.

    

    4.2  Hi
      Ho
      Silver can earn a 51% undivided interest in and to the Property free and clear
      of all charges, encumbrances and claims (the “First Option”) by paying to Madman
      the aggregate sum of $35,000 in cash and by issuing to Madman a total of 200,000
      common shares in the capital stock of Hi Ho Silver to be paid and issued by
      Hi
      Ho Silver to Madman as follows:

    

    
      	(a)	
              the
                sum of $35,000 to be paid to Madman on or before the dates indicated
                below;

            

    

     

    
      	(i)  	
              $10,000
                within ten (10) business days from the signing of this
                Agreement;

            

    

     

    
      	(ii)  	
              $25,000
                on or before December 10, 2006; and

            

    

     

    

    
      	
              (b)

            	
              200,000
                common shares in the capital stock of Hi Ho Silver to be issued to
                Madman
                within ten (10) business days of regulatory approval of this Agreement,
                or
                within ten (10) business days of the signing of this Agreement if
                regulatory approval is not
                required.

            

    

     

    

    4.3  If
      and
      when Hi Ho Silver has made all of the cash payments and issued the common shares
      required pursuant to section 4.2, then the First Option shall be deemed to
      have
      been exercised by Hi Ho Silver and a 51% undivided right, title and interest
      in
      and to the Property shall vest in Hi Ho Silver free and clear of all charges,
      encumbrances and claims, and Madman shall immediately take all necessary steps
      reasonably required by Hi Ho Silver to transfer an undivided 51% interest in
      and
      to the Property to Hi Ho Silver.

    

    4.4  After
      Hi
      Ho Silver has fully exercised the First Option, Hi Ho Silver can elect to
      acquire a further undivided 49% interest in and to the Property free and clear
      of all charges, encumbrances and claims (the “Second Option”), by paying to
      Madman the sum of $65,000 in cash and by issuing to Madman a total of 300,000
      common shares in the capital stock of Hi Ho Silver, which cash payment and
      share
      issuance is to be made on or before October 1, 2007.

    

    4.5  If
      and
      when Hi Ho Silver has made the cash payment and issued the common shares
      required pursuant to section 4.4, then the Second Option shall be deemed to
      have
      been exercised by Hi Ho Silver and the remaining 49% undivided right, title
      and
      interest in and to the Property shall vest in Hi Ho Silver free and clear of
      all
      charges, encumbrances and claims, and Madman shall immediately take all
      necessary steps reasonably required by Hi Ho Silver to transfer the remaining
      49% interest in and to the Property to Hi Ho Silver.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    PART
      V - OPERATOR AND ACCESS

    

    5.1 Hi
      Ho
      Silver shall have the exclusive right to manage and operate the exploration
      programs as operator during the period of the Option.

    

    5.2 From
      the
      date of this Agreement forward Hi Ho Silver shall be responsible for all costs
      related to exploration work conducted on the Property and Madman will not be
      required to contribute to, nor will Madman suffer any dilution in its percentage
      of ownership as a result of not contributing to, the cost of any exploration
      work.

    

    5.3 A
      fully
      executed bill of sale transferring 100% interest in the Property to Hi Ho Silver
      will be provided by Madman within five business days from the signing of this
      Agreement. This bill of sale shall be held in trust and released to Hi Ho Silver
      upon the completion by Hi Ho Silver of all the terms set out in Part IV
      herein.

    

    PART
      VI - MAINTENANCE OF CLAIMS

    

    6.1  During
      the Option period, Hi Ho Silver will be responsible for maintaining all mineral
      claims that comprise the Property in good standing with respect to Ministry
      of
      Energy Mines and Petroleum Resources annual claim maintenance
      requirements.

    

    PART
      VII -TERMINATION FOR DEFAULT

    

    7.1 Prior
      to
      the full exercise of either the First Option or the Second Option as provided
      for herein if Hi Ho Silver is in default of any of its obligations hereunder
      Madman may immediately give written notice to the Hi Ho Silver of such default,
      and Hi Ho Silver shall than have a period of 30 days to remedy such default.
      If
      Hi Ho Silver does not remedy the default with the 30 days aforesaid this
      Agreement and the Option shall, at Madman’s option and upon written notice to Hi
      Ho Silver, terminate forthwith, and any remaining interest in and to the
      Property that has not vested in Hi Ho Silver will remain with
      Madman.

    

    PART
      VIII - GENERAL

    

    8.1  Unless
      otherwise expressly indicated to the contrary, all references to dollar amounts
      contained in this Agreement are references to Canadian dollars.

    

    8.2  This
      is
      an option only and except as specifically provided otherwise, nothing herein
      contained shall be construed as obligating Hi Ho Silver to do any acts or make
      any payments hereunder and any act or acts or payments made hereunder shall
      not
      be construed as obligating Hi Ho Silver to do any further acts or make any
      further payments.

    

    8.3  Hi
      Ho
      Silver may at any time either sell, transfer or otherwise dispose of all or
      any
      portion of its interest in and to the Property and this Agreement provided
      that
      any purchaser, grantee or transferee of any such interest shall have first
      delivered to Madman its agreement relating to this Agreement and to the
      Property, containing

     

    (i) a
      covenant to perform all the obligations of Hi Ho Silver to be performed under
      this Agreement in respect of the interest to be acquired by it from Hi Ho Silver
      to the same extent as if this Agreement had been originally executed by such
      purchaser, grantee or transferee; and

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii) a
      provision subjecting any further sale, transfer or other disposition of such
      interest in the Property and this Agreement or any portion thereof to the
      restrictions contained in this paragraph.

    

    8.4  If
      Hi Ho
      Silver is at any time prevented or delayed in complying with any provisions
      of
      this Agreement by reason of strikes, lock-outs, labour shortages, power
      shortages, fuel shortages, fires, wars, acts of God, governmental regulations
      restricting normal operations, shipping delays or any other reason or reasons,
      other than lack of funds, beyond the control of Hi Ho Silver, the time limited
      for the performance by Hi Ho Silver of its obligations hereunder shall be
      extended by a period of time equal in length to the period of each such
      prevention or delay, but nothing herein shall discharge Hi Ho Silver from its
      obligations hereunder to maintain the Property in good standing.

    

    8.5  No
      information furnished by Hi Ho Silver to Madman hereunder in respect of the
      activities carried out on the Property by Hi Ho Silver shall be published or
      disclosed by Madman without the prior written consent of Hi Ho Silver, but
      such
      consent in respect of the reporting of factual data shall not be unreasonably
      withheld, and shall not be withheld in respect of information required to be
      publicly disclosed pursuant to applicable securities or corporation laws,
      regulations or policies.

    

    8.6  Each
      notice, demand or other communication required or permitted to be given under
      this Agreement shall be in writing and shall be sent by prepaid registered
      mail
      deposited in a Post Office in Canada addressed to the party entitled to receive
      the same, or delivered, telexed, telegraphed or telecopied to such party at
      the
      address for such party specified above. The date of receipt of such notice,
      demand or other communication shall be the date of delivery thereof if
      delivered, telexed, telegraphed or telecopied, or, if given by registered mail
      as aforesaid, shall be deemed conclusively to be the third business day after
      the same shall have been so mailed except in the case of interruption of postal
      services for any reason whatever, in which case the date of receipt shall be
      the
      date on which the notice, demand or other communication is actually received
      by
      the addressee. 

    

    8.7  The
      parties shall promptly execute or cause to be executed all documents, deeds,
      conveyances and other instruments of further assurance and do such further
      and
      other acts which may be reasonably necessary or advisable to carry out fully
      the
      intent of this Agreement or to record wherever appropriate the respective
      interest from time to time of the parties in the Property.

    

    8.8  This
      Agreement shall enure to the benefit of and be binding upon the parties and
      their respective successors and assigns.

    

    8.9  Nothing
      contained in this Agreement shall, except to the extent specifically authorized
      hereunder, be deemed to constitute either party hereto a partner, agent or
      legal
      representative of the other party.

    

    8.10  This
      Agreement shall be governed by and construed in accordance with the laws of
      Ontario and shall be subject to the approval of all securities regulatory
      authorities having jurisdiction.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    8.11  In
      case
      any provision of this Agreement shall be invalid, illegal or unenforceable,
      it
      shall be severed from this Agreement. In either case the validity, legality
      and
      enforceability of the remaining provisions of this Agreement shall not in any
      way be affected or impaired thereby.

    

    8.12  This
      Agreement may be executed simultaneously in two or more counterparts, by
      facsimile or otherwise, each of which shall be deemed an original and all of
      which together shall constitute but one and the same instrument. The parties
      hereto shall be entitled to rely on delivery by facsimile machine of an executed
      copy of this Agreement as due execution and delivery of this Agreement by the
      party effecting such delivery so as to bind such party in accordance with the
      terms hereof.

    

    It
      would
      be appreciated if you could review this Agreement. If the terms as presented
      are
      acceptable to you, please sign the attached duplicate of this Agreement and
      return the same to my attention at your earliest convenience.

    

    Sincerely,

     

    
      	 MADMAN
              MINING CO. LTD. 	 	 	
               AGREED
                TO
                and ACCEPTED

              This
                13
                day of October, 2006

            
	 	 	 	 
	 	 	 	HI HO SILVER
              RESOURCES
              INC.
	 	 	 	 
	 	 	 	 
	
              
                /s/
                  Signed                      
                  

              

              President

            	 	 	
            
	 	 	 	
              
                /s/
                  Signed

              

              President

            

    

     

    This
      is
      page 5 of the Agreement dated October 13, 2006 to Hi Ho Silver Resources Inc.
      (“Hi Ho Silver”)

     from
      Madman Mining Co. Ltd. (“Madman”).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      "A"

    

    To
      that
      Agreement to HI
      HO SILVER RESOURCES INC.
      from
MADMAN
      MINING CO. LTD.,
      dated
      the

     13th
      day of October, 2006

     

    All
      mineral claims that comprise the Property are located in the Kaslo Area of
      the
      Slocan Mining Division of British Columbia.

     

    
      	
              TENURE
                NUMBER

            	 	
              CLAIM
                NAME

            	 	
              MAP
                NUMBER

            	 	
              ANNIVERSARY
                DATE

            	 	
              SIZE
                (Ha)

            
	
              405638

            	 	
               
                Silver Tip #1 

            	 	
              082F095

            	 	
              January
                15, 2007

            	 	
              450.00

            
	
              405639

            	 	
               
                Silver Tip #2 

            	 	
              082F095

            	 	
              January
                15, 2007

            	 	
              450.00

            
	
              Total
                size (Ha)

            	 	 	 	 	 	 	 	
              900.00Exhibit
      10.4

    

    "Unless
      permitted under securities legislation, the holder of the securities shall
      not
      trade the securities before March 2, 2007."

    

    VOID
      AFTER 4:00 PM (TORONTO TIME) IN THE CITY OF MISSISSAUGA, PROVINCE OF ONTARIO,
      ON NOVEMBER
      3, 2008.

    

    WARRANTS
      TO PURCHASE COMMON SHARES OF

    HI
      HO
      SILVER
      RESOURCES
      INC.

    (Incorporated
      under the laws of Canada)

    

    

    
      	 NUMBER OF WARRANTS: *** 	
               RIGHT
                TO PURCHASE ***
                SHARES

            

    

     

    THIS
      IS TO CERTIFY THAT for
      value
      received the holder, ***,
      of
***
      (the
      "Holder"), of this certificate (the "Warrant Certificate")
      holds
      that number of Warrants set forth above, each of which entitles the Holder
      to
      purchase one fully paid and non-assessable common share ("Common Share") in
      the
      capital of Hi Ho Silver Resources Inc.,
      a
      Canada corporation (the "Company"), at any time from 9:00 a.m. (Pacific time)
      on
November
      1, 2006,
      until
      4:00 p.m. (Toronto time) on November
      3, 2008,
      at
      the
      purchase price of $0.80 per
      Common Share.

     

    Purchase
      of the Common Shares to be issued hereto shall be made by surrendering to
Pacific
      Corporate Trust Company (“Transfer Agent”), 510 Burrard Street, Vancouver,
      British Columbia V6C 3B9,
      this
      Warrant Certificate with a Subscription Notice in the form set out on the
      reverse side hereof duly completed and executed, and a bank draft, certified
      cheque or money order in lawful money of Canada, payable to the order of the
      Company at par in Vancouver, British Columbia in an amount equal to the purchase
      price of the Common Shares so subscribed for. The
      purchase price is subject to adjustment as set forth in the terms and conditions
      attached hereto.

     

    The
      Warrants may be exercised only at the offices of the
      Transfer Agent at 510 Burrard Street, Vancouver, British Columbia V6C
      3B9.

     

    This
      Warrant Certificate, with or without other Warrant Certificates, upon surrender
      at the office of the Transfer Agent, may be exchanged for another Warrant
      Certificate or Warrant Certificates of like tenor and date evidencing Warrants
      entitling the Holder to purchase a like aggregate number of Common Shares as
      the
      Warrants evidenced by the Warrant Certificate or Warrant Certificates
      surrendered entitled such Holder to purchase. If this Warrant Certificate shall
      be exercised in part, the Holder shall be entitled to receive upon surrender
      hereof, another Warrant Certificate or Warrant Certificates for the number
      of
      whole Warrants not exercised.

     

    Neither
      the Warrants nor this Warrant Certificate entitles any Holder hereof to any
      rights of a shareholder of the Company.

     

    This
      Warrant Certificate is subject to the terms and conditions attached hereto.
      These Warrants and the rights evidenced thereby may not be sold, transferred,
      assigned, hypothecated or otherwise disposed of.

     

    IN
      WITNESS WHEREOF, the Company has caused this Warrant Certificate to be executed
      at
      the
      City of Mississauga, in the Province of Ontario, this 1st
      day
      of
November
      2006.

     

    
      	 Hi
              Ho Silver Resources Inc.	 	 	 
	 	 	 	 
	 	 	 	 
	Per:	 	 	 
	
              
                

              

              Chief
                Executive Officer

            	 	 	
            
	 	 C/S	 	 
	Per:	 	 	 
	
              
                

              

              Secretary

            	 	 	 

    

     

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    Subscription
      Notice

     

    (ONE
      SERIES “B”
      SHARE
      PURCHASE WARRANT IS

    REQUIRED
      TO SUBSCRIBE FOR EACH COMMON SHARE)

     

    
 

    
      	 TO:	 Pacific Corporate Trust Company
              
	 	 510 Burrard Street, Vancouver, British
              Columbia V6C 3B9

    

         

    The
      undersigned, bearer of the within Series “B”
      Share
      Purchase Warrants, hereby subscribes for _______________ of the common shares
      referred to in the Warrants according to the conditions thereof and herewith
      makes payment of the purchase price in full for the said number of shares at
      the
      purchase price of $0.80 per
      common share if exercised on or before 4:00 p.m., Toronto Time, November
      3, 2008.
      A
      certified cheque, bank draft or money order in lawful money of Canada payable
      to
Hi
      Ho Silver Resources Inc.
      (the
“Company”) is enclosed herewith for such amount. If the number of shares
      subscribed for is not all the shares purchasable under the within Warrant
      Certificate, a new Warrant Certificate shall be issued to the holder for the
      balance remaining of the common shares purchasable thereunder.

    

    The
      undersigned hereby represents and warrants to the Company that unless the
      undersigned’s address is within the United States, at the time of exercise the
      undersigned was outside the United States, the undersigned is not a U.S. person
      or a person within the United States (as such terms are defined in Regulation
      S
      under the Securities
      Act of 1933
      (the
      "U.S. Securities Act") and the Warrant is not being exercised on behalf of
      or
      for the account or benefit of, directly or indirectly, a U.S. Person or any
      person within the United States.

     

    The
      undersigned hereby directs that the shares hereby subscribed for be issued
      and
      delivered as follows:

     

    
 

    
      	Name(s) in full	Address(es)	Number of Shares
	 	 	 
	_________________________	_________________________	_________________________
	 	 	 
	_________________________	_________________________	_________________________

    

     

    (Please
      print full names in which share certificates are to be issued, stating whether
      Mr., Mrs. or Miss. The shares must be issued in the name of the
      bearer.)

    

    DATED
      this ____ day of ____________, 200___

     

    
      	_________________________	_________________________
	Witness	Signature 

    

     

    Please
      print your name and address in full:

    
       

      
        	Mr. 	
              
	Mrs.  _________________________	Address  _________________________
	Miss	
                 _________________________

              
	 	 

      

           

    

    TERMS
      AND CONDITIONS

     

    The
      Warrants are issued subject to the Terms and Conditions for the time being
      governing the holding of Warrants in the Company. A copy of the Terms and
      Conditions may be obtained, free of charge, at the offices of the Company or
      Pacific Corporate Trust Company.

     

    LEGEND(S)

     

    The
      certificates representing the shares acquired on the exercise of the Warrants
      will bear the following legend:

    “Unless
      permitted under securities legislation, the holder of the securities shall
      not
      trade the securities before March 2, 2007.”

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Terms
      and Conditions attached to the 800,000 Series
      “B”
      Warrants for issue by

    HI
      HO
      SILVER
      RESOURCES
      INC.

    

    ARTICLE
      ONE - INTERPRETATION

    

    Section
      1.01 - Definitions

    

    Unless
      the subject matter or context is inconsistent herewith the terms and conditions
      herein referred to shall bear the following meanings:

    

    
      	
              (a)

            	 	
              "herein",
                "hereby", and similar expressions refer to these Terms and Conditions;
                and
                the expression "Article" and "Section" followed by a number refer
                to the
                specified Article or Section of these Terms and
                Conditions.

            

    

    

    
      	
              (b)

            	 	
              "Warrants"
                means the 800,000 Series
                “B”
                Share Purchase Warrants of the Company issued and presently authorized,
                as
                set out in Section 2.01 hereof and for the time being
                outstanding.

            

    

    

    
      	
              (c)

            	 	
              "Warrant
                Holders" or "Holders" means the bearers of the Warrants for the time
                being.

            

    

    

    
      	
              (d)

            	 	
              "Company"
                means Hi
                Ho Silver Resources Inc.
                until a successor corporation is established in the manner prescribed
                in
                Article 7, and thereafter "Company" shall mean each successor
                corporation.

            

    

    

    
      	
              (e)

            	 	
              "Director"
                means a Director of the Company for the time being, and reference,
                without
                more, to action by the Directors means action by the Directors of
                the
                Company as a Board, or whenever duly empowered, action by an executive
                committee of the Board.

            

    

    

    
      	
              (f)

            	 	
              "Company's
                Auditors" means an independent firm of accountants duly appointed
                as
                Auditors of the Company.

            

    

    

    
      	
              (g)

            	 	
              "shares"
                means the common shares in the capital of the Company as constituted
                at
                the date hereof and any shares resulting from any subdivision or
                consolidation of the shares.

            

    

    

    
      	
              (h)

            	 	
              "person"
                means an individual, corporation, partnership, trustee or any
                unincorporated organization and words importing persons having similar
                meaning.

            

    

    

    
      	
              (i)

            	 	
              "Transfer
                Agent" means Pacific
                Corporate Trust Company
                of
                510 Burrard St., Vancouver, British Columbia, or its
                successors.

            

    

    

    
      	
              (j)

            	 	
              Words
                importing singular number include the plural and vice versa and words
                importing the masculine gender include the feminine and neuter
                genders.

            

    

    

    Section
      1.02 - Interpretation Not Affected By Headings.

    

    The
      division of these Terms and Conditions into Articles and Sections, and the
      insertion of headings are for convenience of reference only and shall not affect
      the construction or interpretation thereof.

    

    Section
      1.03 - Applicable Law

    

    The
      rights and restrictions attached to the Warrants shall be construed in
      accordance with the laws of the Province of Ontario and the laws of Canada
      applicable thereto and shall be treated in all respects as Ontario
      contracts.

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
 

    ARTICLE
      TWO - ISSUE OF WARRANTS

    

    Section
      2.01 - Issue of 800,000 Series
      “B”
      Warrants

    

    800,000 Series
      “B”
      Share
      Purchase Warrants entitling the holder(s) thereof to purchase an aggregate
      of
800,000 Common
      shares are authorized to be issued by the Company.

    

    Section
      2.02 - Additional Warrants

    

    The
      Company may at any time and from time to time do further equity or debt
      financing and may issue additional shares, warrants or grant options or similar
      rights to purchase shares of its capital stock.

    

    Section
      2.03 - Replacement of Lost Warrants

    

    
      	
              (1)

            	 	
              In
                case a warrant shall become mutilated, lost, destroyed or stolen,
                the
                Company in its discretion may issue and deliver a new Warrant of
                like date
                and tenure as the one mutilated, lost destroyed or stolen, in exchange
                for
                and in place of and upon cancellation of such mutilated Warrant,
                or in
                lieu of, and in substitution for such lost, destroyed or stolen Warrant
                and the substituted Warrant shall be entitled to all benefits hereunder
                and rank equally in accordance with its terms with all other Warrants
                issued or to be issued by the
                Company.

            

    

     

    
      	
              (2)

            	 	
              The
                applicant for the issue of a new Warrant pursuant hereto shall bear
                the
                cost of the issue thereof and in case of loss, destructions or theft
                shall
                furnish to the Company evidence of ownership and of loss, destruction
                or
                theft of the Warrant so lost, destroyed or stolen as shall be satisfactory
                to the Company in its discretion and such applicant may also be required
                to furnish indemnity in the amount and form satisfactory to the Company
                in
                its discretion, and shall pay the reasonable charges of the Company
                in
                connection therewith.

            

    

    

    Section
      2.04 - Warrant Holder Not a Shareholder

    

    The
      holding of a Warrant shall not constitute the holder thereof a shareholder
      of
      the Company, nor entitle him to any right or interest in respect thereof except
      as in the Warrant expressly provided.

    

    ARTICLE
      THREE - OWNERSHIP AND TRANSFER

    

    Section
      3.01 - Exchange of Warrants

    

    
      	
              (1)

            	 	
              Warrants
                in any authorized denomination may, upon compliance with the reasonable
                requirements of the Company, be exchanged for Warrants in any other
                authorized denomination, of the same Series and date of expiry entitling
                the holder thereof to purchase any equal aggregate number of shares
                at the
                same subscription price and on the same terms as the Warrants so
                exchanged.

            

    

    

    
      	
              (2)

            	 	
              Warrants
                may be exchanged at the office of the Transfer Agent. Any Warrants
                tendered for exchange shall be surrendered to the Transfer Agent
                and
                cancelled.

            

    

    

    Section
      3.02 - Charges for Exchange

    

    On
      exchange of Warrants, the Transfer Agent, except as otherwise herein provided,
      may charge a sum not exceeding $0.50 for each new Warrant issued; and payment
      of
      such charges and of any transfer taxes or governmental or other charges required
      to be paid shall be made by the party requesting such exchange.

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    Section
      3.03 - Ownership and Transfer of Warrants

    

    The
      Company and Transfer Agent may deem and treat the bearer of any Warrant as
      the
      absolute owner of such Warrant for all purposes, and shall not be affected
      by
      any notice or knowledge to the contrary. The bearer of any Warrant shall be
      entitled to the rights evidenced by such Warrant free from all equities or
      rights of set-off or counterclaim between the Company and the original or any
      intermediate holder thereof and all persons may act accordingly and the receipt
      of any such bearer for the shares purchased pursuant thereto shall be a good
      discharge to the Company and the Transfer Agent for the same and neither the
      Company nor the Transfer Agent shall be bound to inquire into the title of
      any
      such bearer. Warrants shall be non-transferable and cannot pass by
      delivery.

    

    Section
      3.04 - Notice to Warrant Holders

    

    Unless
      herein otherwise expressly provided, any notice to be given hereunder to Warrant
      holders shall be deemed to be validly given if such notice is published once
      in
      the City of Vancouver, such publication to be made in a daily newspaper of
      general circulation in such City in the English language. Any notice so given
      shall be deemed to have been given on the date on which it had been
      published.

    

    ARTICLE
      FOUR - EXERCISE OF WARRANTS

    

    Section
      4.01 - Method of Exercise of Warrants

    

    The
      right
      to purchase shares conferred by the Warrants may be exercised by the holder
      of
      such Warrant surrendering it, with a duly completed and executed subscription
      in
      the form attached thereto and cash or certified cheque payable to or to the
      order of the Company at par in Vancouver, British Columbia, for the purchase
      price applicable at the time of surrender in respect of the shares subscribed
      for in lawful money of Canada to the Transfer Agent at its principal office
      in
      the City of Vancouver.

    

    Section
      4.02 - Effect of Exercise of Warrants

    

    
      	
              (1)

            	 	
              Upon
                surrender and payment as aforesaid the shares so subscribed for shall
                be
                deemed to have been issued and such persons shall be deemed to have
                become
                the holder or holders of record of such shares on the date of such
                surrender and payment and such shares shall be issued at the subscription
                price in effect on the date of such surrender and
                payment.

            

    

    

    
      	
              (2)

            	 	
              Within
                ten business days after surrender and payment as aforesaid, the Company
                shall forthwith cause to be delivered to the person or persons in
                whose
                name or names the shares so subscribed for are to be issued as specified
                in such subscription or mailed to him or them at his or their respective
                addresses specified in such subscription, a certificate or certificates
                for the appropriate number of shares not exceeding those which the
                Warrant
                holder is entitled to purchase pursuant to the Warrant
                surrendered.

            

    

    

    Section
      4.03 - Subscription for Less than Entitlement

    

    The
      holder of any Warrant may subscribe for and purchase a number of shares less
      than the number which he is entitled to purchase pursuant to the surrendered
      Warrant. In the event of any purchase of a number of Common shares less than
      the
      number which can be purchase pursuant to a Warrant, the holder thereof upon
      exercise thereof shall in addition be entitled to receive a new Warrant in
      respect of the balance of the shares which he was entitled to purchase pursuant
      to the surrendered Warrant and which were not then purchased.

    

    Section
      4.04 - Warrants for Fractions of Shares

    

    To
      the
      extent that the holder of any Warrant is entitled to receive on the exercise
      or
      partial exercise thereof a fraction of a Common share, such right may be
      exercised in respect of such fraction only in combination with another Warrant
      or other Warrants which in the aggregate entitle the holder to receive a whole
      number of such Common shares.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    Section
      4.05 - Expiration of Warrants

    

    After
      the
      expiration of the period within which a Warrant is exercisable, all rights
      thereunder shall wholly cease and terminate and such Warrants shall be void
      and
      of no further force and effect.

    

    Section
      4.06 - Exercise Price

    

    The
      price
      per share which must be paid to exercise a Warrant is as set forth on the face
      of the Warrant Certificate.

    

    Section
      4.07 - Adjustment of Exercise Price

    

    The
      exercise price and the number of common shares deliverable upon the exercise
      of
      the Warrants shall be subject to adjustment in the event and in the manner
      following:

    

    
      	
              (1)

            	 	
              If
                and whenever the Common shares at any time outstanding shall be subdivided
                into a greater or consolidated into a lesser number of Common shares
                the
                exercise price shall be decreased or increased proportionately as
                the case
                may be; upon any such subdivision or consolidation the number of
                Common
                shares deliverable upon the exercise of the Warrants shall be increased
                or
                decreased proportionately as the case may
                be.

            

    

    

    
      	
              (2)

            	 	
              In
                case of any capital reorganization or of any reclassification of
                the
                capital of the Company or in case of the consolidation, merger or
                amalgamation of the Company with or into any other company or of
                the sale
                of the property with assets of the Company as or substantially as
                an
                entirety or of any other company each Warrant shall, after such capital
                reorganization, reclassification of capital, consolidation, merger,
                amalgamation or sale, confer the right to purchase that number of
                shares
                or other securities or property of the Company or of the company
                resulting
                from such capital reorganization, reclassification, consolidation,
                merger,
                amalgamation or to which such sale shall be made, as the case may
                be, to
                which the holder of the shares deliverable at the time to such capital
                reorganization, reclassification of capital, consolidation, merger,
                amalgamation or sale had the Warrants been exercised, would have
                been
                entitled on such capital reorganization, reclassification, consolidation,
                merger, amalgamation or sale and in any such case, if necessary,
                appropriate adjustments shall be made in the application of the provisions
                set forth in this Article Four with respect to the rights and interest
                thereafter of the holders of the Warrants to the end that the provisions
                set forth in this Article Four shall thereafter correspondingly be
                made
                applicable as nearly as may reasonable be expected in relation to
                any
                shares or other securities or property thereafter deliverable on
                the
                exercise of the Warrants. The subdivision or consolidation of Common
                shares at any time outstanding into a greater or lesser number of
                Common
                shares (whether with or without par value) shall not be deemed to
                be a
                capital reorganization or a reclassification of the capital of the
                Company
                for the purposes of this paragraph
                (2).

            

    

    

    
      	
              (3)

            	 	
              The
                adjustments provided for in this Section in the subscription rights
                pursuant to any Warrants are
                cumulative.

            

    

    

    Section
      4.08 - Determination of Adjustments

    

    If
      any
      questions shall at any time arise with respect to the exercise price, such
      questions shall be conclusively determined by the Company's Auditors or, if
      they
      decline to so act, any other firm of chartered accountants in Vancouver, British
      Columbia that the Company may designate and who shall have access to all
      appropriate records and such determination shall be binding upon the Company
      and
      the holders of the Warrants.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    ARTICLE
      FIVE - COVENANTS BY THE COMPANY

    

    Section
      5.01

    

    The
      Company will reserve and there will remain unissued out of its authorized
      capital a sufficient number of shares to satisfy the rights of purchase provided
      for herein and in the Warrants should the holders of all the Warrants from
      time
      to time outstanding determine to exercise such rights in respect of all shares
      which they are or may be entitled to purchase pursuant thereto.

    

    ARTICLE
      SIX - WAIVER OF CERTAIN RIGHTS

    

    Section
      6.01 - Immunity of Shareholders, etc.

    

    The
      Warrant holder hereby waives and releases any right, cause of action or remedy
      now or hereafter existing in any jurisdiction against any past, present or
      future incorporator, shareholder, Director or Officer (as such) of the Company
      for the issue of shares pursuant to any Warrant or on any covenant, agreement,
      representation or warranty by the Company herein contained.

    

    ARTICLE
      SEVEN - MODIFICATION OF TERMS, MERGER, SUCCESSORS

    

    Section
      7.01 - Modification of Terms and Conditions for Certain
      Purposes

    

    From
      time
      to time the Company may, subject to the provisions of these presents, and they
      shall, when so directed by these presents, modify the terms, and conditions
      hereof, for any one or more of any of the following purposes:

    

    
      	
              (1)

            	 	
              Adding
                to the provisions hereof such additional covenants and enforcement
                provisions as, in the opinion of Counsel for the Company, are necessary
                or
                advisable under the circumstances.

            

    

    

    
      	
              (2)

            	 	
              Making
                such provisions not inconsistent herewith as may be necessary or
                desirable
                with respect to matters or questions arising hereunder or for the
                purpose
                of obtaining a listing or quotation of the Warrants on any Stock
                Exchange
                or House.

            

    

    

    
      	
              (3)

            	 	
              Adding
                to or altering the provisions hereof in respect of the registration
                and
                transfer of Warrants making provisions for the exchange of Warrants
                of
                different denominations; and making any modification in the form
                of the
                Warrants which does not affect the substance
                thereof.

            

    

    

    
      	
              (4)

            	 	
              For
                any other purpose not inconsistent with the terms hereof, including
                the
                correction or recertification of any ambiguities, defective provisions,
                errors or omissions herein.

            

    

    

    
      	
              (5)

            	 	
              To
                evidence any successions of any corporation and the assumption of
                any
                successor of the covenants of the Company herein and in the Warrants
                contained as provided hereafter in this
                Article.

            

    

    

    Provided
      however no such modification of terms and conditions shall extend the period
      within which the Warrants may be exercised.

     

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    Section
      7.02 - Company May Consolidate, etc. on Certain Terms

    

    Nothing
      herein contained shall prevent any consolidation, amalgamation or merger of
      the
      Company with or into any other corporation or corporations, or a conveyance
      or
      transfer of all or substantially all the properties and estates of the Company
      as an entirety to any corporation lawfully entitled to acquire and operate
      the
      same; PROVIDED
      HOWEVER,
      that
      the corporation formed by such consolidation or into which such merger shall
      have been made or which acquired by conveyance or transfer all or substantially
      all the properties and estates of the Company as an entirety shall be a
      corporation organized and existing under the law of Canada or of the laws of
      the
      United States of America, or any Province, State, District or Territory thereof,
      and shall, simultaneously with such consolidation, amalgamation, merger,
      conveyance or transfer, assume the due and punctual performance and observance
      of all the covenants and conditions hereof to be performed or observed by the
      Company.

    

    Section
      7.03 - Successor Corporation Substituted

    

    In
      case
      the Company, pursuant to Section 7.02, shall be consolidated, amalgamated or
      merged with or into any other corporation or corporations, or shall convey
      or
      transfer all to substantially all of the properties and estates of the Company
      as an entirety to any other corporation, the successor corporation formed by
      such consolidation or amalgamation, or into which the Company shall have been
      merged or which shall have received a conveyance or transfer as aforesaid,
      shall
      succeed to and be substituted for the Company hereunder. Such changes in
      phraseology and form (but not in substance) may be made in the Warrants as
      may
      be appropriate in view of such consolidation, amalgamation, merger or
      transfer.

     

    
      
         

      

      
        8

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