Document:

Lake Victoria Mining Company, Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

EXECUTION VERSION 

OPTION AND
JOINT VENTURE AGREEMENT 

THIS AGREEMENT is dated May 6, 2011 (the
“Execution Date”) 

BETWEEN: 

LAKE VICTORIA MINING COMPANY,
INC., a company 
incorporated pursuant to the laws of State of Nevada and
having its 
principal executive office at suite 810 – 675 West Hastings
Street, 
Vancouver, British Columbia V6B 1N2 

(the “Optionor”) 

AND: 

OTTERBURN VENTURES INC., a
company incorporated 
pursuant to the laws of the Province of British
Columbia and 
having its registered office at Suite 1500 - 1055 West Georgia

Street, Vancouver, British Columbia, Canada V6E 4N7 

(the “Optionee”) 

WHEREAS:

(A)          
The Optionor is the registered and beneficial owner of certain
prospecting licenses (the “Licenses”) located in the Geita District of
the Mwanza Region of the United Republic of Tanzania, the specific description
of such Licenses is attached hereto as Schedule “A” (collectively, the
“Property”); 

(B)          
The Optionor has agreed to grant an exclusive option to the Optionee to
acquire up to a 70% undivided interest in and to the Property by paying certain
consideration and by incurring certain Work Costs (as that term is defined
below) as set forth herein; 

(C)          
This Agreement is intended to confirm discussions regarding the earning
of such interest and the subsequent arrangements that may be entered into, and
will involve the formation of a joint venture that will hold and explore the
Property and if warranted, develop one or more mining project or projects
thereon (the “Transaction”). 

(D)          
Capitalized words have the meanings given to them in the text of this
Agreement and in Schedules hereto, as applicable. 

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NOW THEREFORE, in consideration of the mutual covenants
and agreements herein contained and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged by each of the
parties, the parties covenant and agree as follows:

PART 1 

DEFINITIONS AND INTERPRETATION 

Definitions 

1.1          
For the purposes of this Agreement, except as otherwise expressly
provided herein, the following words and phrases have the following meanings:

(a) “1933 Act” means the United
States Securities Act of 1933, as amended; 

(b) “70% Interest” means a
seventy percent (70%) undivided right, title and interest in and to the Property
and in all rights of the Optionor with respect thereto; 

(c) “Affiliate” has the meaning
given to that term in the Business Corporations Act (British Columbia);

(d) “Agreement” means this
agreement and all of the schedules hereto, as may be amended from time to time;

(e) “AOI License” has the
meaning ascribed therein in §10.1; 

(f) “Arbitration Panel” has the
  meaning ascribed thereto in §15.1; 

(g) “Area of Interest” has the meaning
  ascribed thereto in §10.1; 

(h) “Closing Date” means the
earlier of the completion by the Optionor of a concurrent private placement
financing of approximately $6,750,000 or May 13, 2011; 

(i) “Commencement of Commercial
Production” means: 

(i) if a mill is located on the
Property, the last day of a period of forty (40) consecutive days in which, for
not less than thirty (30) days, the mill processed ore from the Property at not
less than sixty percent (60%) of its rated capacity; and 

(ii) if no mill is located on the
Property, the last day of the first period of forty (40) consecutive days during
which for not less than thirty (30) days ore has been shipped from the Property;

but no period of time during which ore is shipped from the
Property for testing purposes, and no period of time during which milling
operations are undertaken as initial tune-up, will be taken into account in
determining the date of commencement of commercial production; 

- 3 - 

(j) “Deposit” has the meaning
ascribed thereto in §5.1(b)(i); 

(k) “Earn-In Date” means the
date which the Optionee has earned the 70% Interest in accordance with §5.1;

(l) “Effective Date” means May
20, 2011; 

(m) “Employees” means employees
of Lake Victoria Resources (T) Ltd.; 

(n) “Encumbrance” means any
privilege, mortgage, hypothec, lien, charge, pledge, security interest or
adverse claim; 

(o) “Environmental Liability”
means any claim, demand, loss, liability, damage, cost or expense (including
legal fees) suffered or incurred in respect of environmental cleanup and
remediation obligations and liabilities arising directly or indirectly from
operations or activities conducted in or on the Property; 

(p) “Exchange” means the
Canadian National Stock Exchange; 

(q) “Execution Date” has the
meaning ascribed thereto on the first page of this Agreement; 

(r) “Exploration Services
Agreement” has the meaning ascribed thereto in §5.4;

 (s) “Force Majeure
  Event” has the meaning ascribed thereto in §14.1; 

(t) “Holder” has
  the meaning ascribed thereto in §12.4; 

(u) “Joint Venture” means the
joint venture to be formed between the Optionor and the Optionee in respect of
the Property in the event of and upon exercise of the Option and which is more
particularly described in §9.1; 

(v) “Joint Venture Agreement”
has the meaning ascribed thereto in §9.1; 

(w) “Lake Victoria Resources (T)
Ltd.” means a Tanzanian corporation wholly-owned by the Optionor; 

(x) “License Fees” has the
meaning ascribed thereto in §7.7; 

(y) “LVMC Representation Letter”
means the U.S. Representation Letter attached hereto as Schedule “C”; 

(z) “Management Committee” has
the meaning ascribed thereto in §9.3; 

(aa) “Net Smelter Return” means
an interest in the returns generated from production on the Property determined
in accordance with Schedule “B”; 

(bb) “Offer” has the meaning
ascribed thereto in §12.3(a); 

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(cc) “Offered Interest” has the
meaning ascribed thereto in §12.3(a); 

(dd) “Operator” has the meaning
ascribed thereto in §9.4; 

(ee) “Option” means the
exclusive option granted by the Optionor to the Optionee to acquire the 70%
Interest, and thereupon form the Joint Venture, all on the terms and conditions
set forth herein; 

(ff) “Option Cash
Payments” has the meaning ascribed thereto in §5.1(b);

 (gg) “Option
  Shares” has the meaning ascribed thereto in §5.1(c);

 (hh) “Option
  Work Costs” has the meaning ascribed thereto in §5.1(d); 

(ii) “Optionee” means Otterburn
Ventures Inc., a company incorporated pursuant to the laws of the Province of
British Columbia; 

(jj) “Optionee’s Representation
Letter” means the Representation Letter attached hereto as Schedule “D” to
this Agreement; 

(kk) “Optionor” means Lake
Victoria Mining Company, Inc., a company incorporated pursuant to the laws of
the State of Nevada; 

(ll) “Option Period” means the
period from the Effective Date to and including the earliest of the: 

(i) the Earn-In Date, and 

(ii) the termination hereof pursuant
to Part 8; 

(mm) “Preliminary Economic
Assessment” means a study that includes an economic analysis of the
potential economic viability of mineral resources on the Property; 

(nn) “Property” has the meaning
ascribed thereto in Recital (A); 

(oo) “Purchasing Party” has the
meaning ascribed thereto in §12.3(b); 

(pp) “Regulation S” means
Regulation S promulgated by the United States Securities and Exchange Commission
under the 1933 Act; 

(qq) “Securities Act” means the
Securities Act (British Columbia); 

(rr) “Seller” has the meaning
ascribed thereto in §12.3(a); 

(ss) “Shares” means the common
shares without par value in the capital of the Optionee; 

(tt) “Substantial U.S. Market
Interest” means ‘substantial U.S. market interest’ as that term is defined
in Rule 902 of Regulation S; 

- 5 - 

(uu) “Third Party Property
Information” has the meaning ascribed thereto in §7.9; and 

(vv) “United States” means the
United States of America, its territories and possessions, any State of the
United States and the District of Columbia; 

(ww) “Work Costs” means, subject
to §5.3 and the exclusion of the License Fees, all expenditures and costs
incurred by the Optionee relating directly or indirectly to the Property
including all expenditures and costs incurred: (a) in doing geophysical,
geochemical, land, airborne, environmental and geological examinations,
assessments, assays, audits and surveys; (b) in linecutting, mapping, trenching
and staking; (c) in searching for, digging, trucking, sampling, working,
developing, mining and extracting ores, minerals and metals; (d) in conducting
diamond and other drilling; (e) in obtaining, providing, installing and erecting
mining, milling and other treatment plant, ancillary facilities, buildings,
machinery, tools, appliances and equipment; (f) in constructing access roads and
other facilities on or for the benefit of the Property or any part thereof (g)
in transporting personnel, supplies, mining, milling and other treatment plant,
ancillary facilities, buildings, machinery, tools, appliances and equipment in,
to or from the Property or any part thereof (h) in paying reasonable wages and
salaries (including “fringe benefits”, but excluding home office costs) of
personnel directly engaged in performing work on or with respect to the
Property; (i) in paying assessments and contributions under applicable
employment legislation relating to workers’ compensation and unemployment
insurance and other applicable legislation relating to such personnel; (j) in
supplying food, lodging and other reasonable needs for such personnel; (k) in
obtaining and maintaining any insurance; (1) in obtaining legal, accounting,
consulting and other contract and professional services or facilities relating
to work performed or to be performed hereunder, all at fair market value
competitive rates; (m) in paying any taxes, fees, charges, payments and rentals
(including payments made in lieu of assessment work) or otherwise incurred to
transfer the Property or. any part thereof or interest therein pursuant to this
Agreement and to keep the Property or any part thereof in good standing; (n) in
paying any non-refundable harmonized sales tax and social services tax and all
other taxes charged on expenditures made or incurred by the Optionee relating
directly or indirectly to the Property; (o) in acquiring access and surface
rights to the Property; (p) in carrying out any negotiations and preparing,
settling and executing any Agreements and other documents relating to
environmental or indigenous peoples’ claims, requirements or matters; (q) in
obtaining all necessary or appropriate approvals, permits, consents and
permissions relating to the carrying out of work, including environmental
permits, approvals and consents; (r) in carrying out reclamation and
remediation; (s) in improving, protecting and perfecting title to the Property
or any part thereof; (t) in carrying out mineral, soil, water, air and other
testing; (u) in preparing engineering, geological, financing, marketing and
environmental studies and reports and test work related thereto; (v) in
preparing one or more Preliminary Economic Assessments including any work and
reports preliminary or supplementary thereto; and (w) a charge for management
supervision and administrative services of the Optionee as provided in §7.4 and
§9.5 of this Agreement. 

- 6 - 

Interpretation 

1.2          
For the purposes of this Agreement except as otherwise expressly provided
herein:

(a) the words “herein”,
“hereof”, and “hereunder” and other words of similar import refer
to this Agreement as a whole and not to any particular Part, clause, subclause
or other subdivision or Schedule; 

(b) a reference to a Part means a Part
of this Agreement and the symbol § followed by a number or some combination of
numbers and letters refers to the section, paragraph or subparagraph of this
Agreement so designated; 

(c) the headings are for convenience
only, do not form a part of this Agreement and are not intended to interpret,
define or limit the scope, extent or intent of this Agreement or any of its
provisions; 

(d) the word “including”, when
following a general statement, term or matter, is not to be construed as
limiting such general statement, term or matter to the specific items or matters
set forth or to similar items or matters (whether or not qualified by
non-limiting language such as “without limitation” or “but not limited to” or
words of similar import) but rather as permitting the general statement or term
to refer to all other items or matters that could reasonably fall within its
possible scope; 

(e) a reference to currency means the
lawful currency of the United States of America; and 

(f) words importing the masculine
gender include the feminine or neuter, words in the singular include the plural,
words importing a corporate entity include individuals, and vice versa. 

PART 2 

THE PROPERTY 

The Property 

2.1          
The Property is comprised of the Licenses more particularly described in
Schedule “A” hereto and will include any additional Licenses that become part of
the Property pursuant to Part 10. 

- 7 - 

PART 3 

REPRESENTATIONS AND WARRANTIES 

Mutual Representations 

3.1          
The Optionee and the Optionor each represent and warrant to the other
that: 

(a) it has been duly incorporated and
is a valid and subsisting body corporate under the laws of its jurisdiction of
incorporation and is duly qualified to carry on business in the United Republic
of Tanzania and to hold an interest in the Property; 

(b) it has duly obtained all necessary
governmental, corporate and other authorizations for its execution and
performance of this Agreement, and the consummation of the transactions
contemplated herein will not, with the giving of notice or the passage of time,
or both, result in a breach of, constitute a default under, or result in the
creation of any Encumbrance on its assets under, the terms or provisions of any
law applicable to it, its constating documents, any resolution of its directors
or shareholders or any indenture, Agreement or other instrument to which it is a
party or by which it or its assets may be bound; 

(c) no proceedings are pending for, and
it is unaware of any basis for the institution of any proceedings leading to,
its dissolution or winding up or the placing of it in bankruptcy or its
subjection to any other law governing the affairs of bankrupt or insolvent
persons; 

(d) it has full right, power and
authority to enter into and accept the terms of this Agreement and to carry out
the transactions contemplated herein; and 

(e) there are no third party
beneficiaries to the terms of this Agreement. 

Optionor’s Representations 

3.2          
The Optionor represents and warrants to the Optionee that: 

(a) the Licenses comprising the
Property are validly located, duly recorded and in good standing, free and clear
of all Encumbrances and underlying interests whatsoever; 

(b) sufficient assessment work has been
done and reports filed to keep the Licenses comprising the Property in good
standing under the applicable law in Tanzania; 

(c) there are no actions, suits,
investigations or proceedings before any court, arbitrator, administrative
agency or other tribunal or governmental authority, whether current, pending or
threatened, which directly or indirectly relate to or affect the Licenses
comprising the Property or the interests of the Optionor therein nor is the
Optionor aware of any acts which would lead it to suspect that the same might be
initiated or threatened; 

- 8 - 

(d) there are no outstanding Agreements
or options to purchase or otherwise acquire the Property or any portion thereof
or any interest therein, and no person has any royalty or other interest
whatsoever in the production from or profits earned from any of the Licenses
comprising the Property; 

(e) the activities directly or
indirectly relating to the Licenses comprising the Property by the Optionor and
any other person on behalf of the Optionor have been in compliance with all
other applicable laws and the Optionor has not received any notice nor is the
Optionor aware after reasonable inquiry of any breach or violation of any such
laws having been alleged; 

(f) there are no obligations or
commitments for reclamation, closure or other environmental corrective, clean-up
or remediation action directly or indirectly relating to the Licenses comprising
the Property; and 

(g) no environmental audit, assessment,
study or test has been conducted in relation to the Licenses comprising the
Property by or on behalf of the Optionor nor is the Optionor aware after
reasonable inquiry of any of the same having been conducted by or on behalf of
any governmental authority or by any other person. 

(h) The Optionor is the legal and
beneficial owner of a one hundred percent (100%) interest in the Licenses, or
has an option to acquire the Licenses, as described in Schedule “A” hereto and
has the exclusive right to enter into this Agreement and dispose of an interest
in the Property in accordance with the terms hereof; 

(i) The Optionor is legally entitled to
hold its interest in the Property and the Licences, permits, easements, rights
of way, certificates and other approvals now held or hereafter acquired by it
and necessary for the exploitation of the Property, and will remain so entitled
for so long as it holds any interest in the Property; 

(j) upon exercise of the Option by the
Optionee, the Optionor will have the legal right and authority to transfer title
to an undivided seventy percent (70%) legal and beneficial interest in the
Property to the Optionee; 

(k) other than in connection with this
Agreement, it has no knowledge of a “material fact” or “material change” (as
those terms are defined in the Securities Act) in respect of the Optionee that
has not been generally disclosed to the public; and 

(l) its decision to tender this
Agreement has not been made as a result of any verbal or written representation
as to fact or otherwise made by or on behalf of Optionee or any other person and
is based entirely upon currently available public information concerning the
Optionee and the representations contained herein. 

Exclusive Benefit of the Optionee 

3.3          
The representations and warranties contained in §3.2 are
provided for the exclusive benefit of the Optionee and a misrepresentation or
breach of warranty may be waived by the Optionee in whole or in part at any time
without prejudice to its rights in respect of any other misrepresentation or breach of the same or any other
representation or warranty; and the representations and warranties contained in
§3.2 will survive the execution hereof and continue through the Option Period. 

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Optionee’s Representations 

3.4          
The Optionee represents and warrants to the Optionor that: 

(a) as at the Effective Date, the
Optionee’s record of filings available to the public, including on SEDAR, will
be accurate in all material respects and will not omit to state any material
fact required to be stated or necessary to prevent a statement in the public
record from being false or misleading in the circumstances in which it was made;

(b) there are no actions, suits,
investigations or proceedings before any court, arbitrator, administrative
agency or other tribunal or governmental authority whatsoever outstanding, or,
to the best of its knowledge, pending or threatened against or affecting the
Optionee, or its directors, officers, or promoters at law or in equity of any
kind whatsoever which would result in an adverse material change in the
financial position, business or prospects of the Optionee and, to the best of
its knowledge, there is no basis therefore; 

(c) there are no issued and
outstanding, pending or threatened orders ceasing, halting, suspending or
prohibiting trading in securities of the Optionee, and no investigations or
proceedings for such purposes are pending or threatened; 

(d) the Shares are, and will be at all
times during the Option Period, part of a class of shares of the Optionee that
is currently listed and posted for trading on the Exchange and, at the time of
the delivery of the certificates representing the Shares, as applicable, to the
Optionor, will have been approved and reserved for listing on the Exchange,
subject only to fulfilment of the requirements of the Exchange and §3.7(c); 

(e) as at the Execution Date, it has
issued and outstanding 15,655,000 Shares; 

(f) as at the Execution Date, it has no
share purchase warrants or options to purchase the Shares outstanding; 

(g) as at the Closing Date, the
Optionee will have working capital allocated or will raise additional capital to
carry out its obligations to the end of the first year of this Agreement; and

(h) it is a “foreign issuer” within the
meaning of Regulation S and reasonably believes there is no Substantial U.S.
Market Interest in the Shares. 

Exclusive Benefit of the Optionor 

3.5          
The representations and warranties contained in §3.4 are provided for
the exclusive benefit of the Optionor and a misrepresentation or breach of
warranty may be waived by the Optionor in whole or in part at any time without
prejudice to its rights in respect of any other misrepresentation or breach of the same or any other
representation or warranty; and the representations and warranties contained in
§3.4 will survive the execution hereof and continue through the Option Period. 

- 10 - 

Survival of Representations and Warranties 

3.6          
The representations and warranties of the parties set out herein are conditions
upon which the parties have relied in entering into this Agreement and will
survive the termination of this Agreement and the acquisition of any interest in
the Property by the Optionee hereunder, and each party will indemnify and save
the other harmless from all loss, damage, costs and expenses which may be
suffered or incurred by the other as a result of or in connection with any
breach or inaccuracy of any such representation and warranty made by such party.

Restrictions on Securities 

3.7          
The Optionor acknowledges and agrees that: 

(a) no prospectus has been filed by the
Optionee with the British Columbia Securities Commission in connection with the
distribution of the Shares, such distribution is exempted from the prospectus
requirements of the Securities Act and that as a result: 

(i) the Subscriber is restricted from
using most of the civil remedies available under the Securities Act; 

(ii) no securities commission or
similar regulatory authority has reviewed or passed on the merits of the Shares;

(iii) the Optionor may not receive
information that would otherwise be required to be provided to the Optionor
under the Securities Act; and 

(iv) the Optionor is relieved from
certain obligations that would otherwise apply under the Securities Act; 

(b) none of the Shares to be issued to
the Optionor hereunder have been registered under the 1933 Act or the securities
laws of any state of the United States, that such Shares may not be offered or
sold, directly or indirectly, in the United States unless registered in
accordance with federal securities laws and all applicable state securities laws
or exemptions from such registration requirements are available; and the
Optionee has no obligation or present intention of filing a registration
statement under the 1933 Act or any state securities laws in respect of any of
the Shares; 

(c) the Shares will be subject to
certain resale restrictions imposed under applicable securities laws and the
rules of regulatory bodies having jurisdiction including, without limiting the
generality of the foregoing, the rules of the Exchange, and the Optionor agrees
to comply with such restrictions;

- 11 - 

(d) it has been advised to consult its
own legal advisors with respect to applicable resale and transfer restrictions,
that it is solely responsible for complying with such restrictions; 

(e) under certain Canadian securities
instruments and policies, the Optionee may be required to the following legend
on any certificates representing the Shares: 

“UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE
[four months plus one day after the Effective Date].”;

(f) the certificates representing the
Shares issued to the Optionor hereunder will be endorsed with the legends
contemplated by the LVMC Representation Letter in the form attached as Schedule
“C”;

(g) the Optionee shall make a notation
on its records or give instructions to the transfer agent of the Shares in order
to implement the restrictions on transfer set out in applicable legislation; and

(h) no person has made to the Optionor
any written or oral representations: 

(i) that any person will resell or
repurchase any of the Shares; 

(ii) that any person will refund the
purchase price of any of the Shares; or 

(iii) as to the future price or value
of any of the Shares;

Listing on a Stock Exchange 

3.8          
The Optionee will use all commercially reasonable efforts to diligently
pursue the listing of the Shares on a recognized stock exchange in Canada,
including the TSX Venture Exchange and the Toronto Stock Exchange. 

U.S. Representation Letters 

3.9          
The Optionor shall complete and execute the LVMC Representation Letter in the
form attached as Schedule “C”, and, upon execution and delivery by the Optionor,
the LVMC Representation Letter shall be incorporated into and form part of this
Agreement. 

3.10         The
Optionee shall complete and execute the Optionee’s Representation Letter in the
form attached as Schedule “D”. 

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PART 4 

DUE DILIGENCE 

Due Diligence Inquiry

4.1          
The Optionee will be entitled to conduct a due diligence investigation of the
title and environmental condition of the Property, the results of which
investigation will be satisfactory to the Optionee, acting reasonably, and which
investigation will be completed by the Effective Date. The Optionee has retained
local counsel in Tanzania to perform its due diligence investigation and will
prepare and deliver to the Optionee a legal opinion confirming the Optionor’s
ownership of the Property. If at any time during such due diligence period the
Optionee, based on its due diligence investigations, decides acting reasonably
that the Optionor’s title to the property or the environmental condition of the
Property is unsatisfactory, the Optionee may terminate this Agreement upon
written notice to the Optionor without any obligation or liability to the
Optionor, except the Deposit, as that term is defined in §5.1(b)(i), which will
become due and payable upon execution of this Agreement. This §4.1 is for the
sole and exclusive benefit of the Optionee and if not satisfied may be waived in
whole or in part by the Optionee. 

PART 5 

GRANT OF OPTION 

Grant of Option 1 

5.1          
The Optionor hereby grants to the Optionee the sole and exclusive right
and option to earn the 70% Interest free and clear of all Encumbrances by: 

(a) making a cash payment to the
Optionor in the amount of $2,739.70 on the Effective Date representing all
annual and quarterly license fees paid by the Optionor in connection with the
Licenses prior to the Effective Date; 

(b) making cash payments of an
aggregate of $150,000 (the “Option Cash Payments”) to the Optionor over a
two-year period, commencing on the Closing Date, to be funded as follows: 

(i) not less than $20,000 on the
Closing Date (the “Deposit”); 

(ii) not less than $20,000 on or
before the Effective Date (for accumulated cash payments of $40,000); 

(iii) not less than $50,000 on or
before the first anniversary date from the Effective Date (for accumulated cash
payments of $90,000); and 

(iv) not less than $60,000 on or
before the second anniversary date from the Effective Date (for accumulated cash
payments of $150,000); 

- 13 - 

(c) allotting and issuing to the
Optionor as fully paid and non-assessable, a total of 600,000 Shares (the
“Option Shares”) over a two-year period, commencing on the Closing Date,
to be allotted and issued as follows: 

(i) not less than 300,000 Shares on
the Effective Date; 

(ii) not less than 150,000 Shares on
or before the first anniversary date from the Effective Date (for accumulated
allotments of 450,000 Shares); and 

(iii) not less than 150,000 Shares on
or before the second anniversary date from the Effective Date (for accumulated
allotments of 600,000 Shares); 

(d) funding aggregate Work Costs on the
Property of $1,570,000 (the “Option Work Costs”) over a three-year
period, commencing on the Effective Date, to be funded as follows: 

(i) not less than $485,000 on or
before the date that is 150 calendar days from the Effective Date; 

(ii) not less than an additional
$85,000 on or before the first anniversary date from the Effective Date (for
accumulated Work Costs of $570,000); 

(iii) not less than an additional
$500,000 on or before the second anniversary date from the Effective Date (for
accumulated Work Costs of $1,070,000); and 

(iv) not less than an additional
$500,000 on or before the third anniversary date from the Effective Date (for
accumulated Work Costs of $1,570,000); and 

(e) funding and completing the
Preliminary Economic Assessment on or before the third anniversary date from the
Effective Date. 

5.2          
The Deposit is a firm commitment of the Optionee and will not be
refunded in the event the transactions contemplated herein are not consummated
within sixty (60) days following the Closing Date. 

Preliminary Economic Assessment Included in Work Costs

5.3          
All costs incurred in connection with the completion of the Preliminary
Economic Assessment by the Optionee, will be considered part of the Option Work
Costs. 

Exploration Services Agreement 

5.4          
The Optionee will enter into an exploration services agreement (the
“Exploration Services Agreement”) with Lake Victoria Resources (T) Ltd.
concurrently with the execution of this Agreement. 

- 14 - 

Determination of Work Costs 

5.5          
Work Costs will be deemed to have been incurred by the Optionee when
the Optionee has expended funds or has received goods or services from third
parties for which the Optionee has an obligation to make payment, whether or not
payment has been made. Where Work Costs are charged to the Optionee by an
Affiliate of the Optionee for services rendered by such Affiliate, such Work
Costs will not exceed the fair market value of the services rendered. A
certificate of an officer of the Optionee setting forth the Work Costs incurred
by the Optionee in reasonable detail will be prima facie evidence of the same.

Excess Work Costs and Deficiencies 

5.6          
Work Costs incurred by the Optionee exceeding the amount of Work Costs
required to be incurred within any period will be carried forward to the
succeeding period and qualify as Work Costs. If the Work Costs incurred are less
than the amount of the Work Costs required to be incurred in any period, the
Optionee may at its option pay the deficiency to the Optionor in cash within
sixty (60) days after the end of such period in order to maintain the Option.
Any such payment of cash in lieu will be deemed to be Work Costs incurred on the
Property on or before the relevant date for purposes of this Part 5. 

Make-up Right 

5.7          
If the Optionee reasonably believes that it has incurred Work Costs required to
be incurred by the Optionee in any period in order to maintain the Option, but
it is subsequently determined upon examination or audit by either party that
such Work Costs were not incurred within such period, the Optionee will not lose
any of its rights hereunder and the Option will not terminate, provided that the
Optionee pays to the Optionor such deficiency in Work Costs within thirty (30)
days following such determination (if determined by the Optionee) or within
thirty (30) days following notice to the Optionee of such deficiency (if
determined by the Optionor), and the payment of such deficiency in Work Costs
will be deemed to be Work Costs incurred by the Optionee for purposes of this
Agreement. 

Exercise of Option 

5.8          
The Optionee may in its sole direction at any time accelerate the
payment of the consideration (cash and Shares) and the Work Costs described in
§5.1(d) . 

5.9          
If the Optionee incurs the Option Work Costs, pays the Optionor the
Option Cash Payments and the Option Shares, and completes the Preliminary
Economic Assessment as described in §5.1, it will, without further act or
payment, have and be deemed for all purposes to have exercised the 70% Interest
and to have earned the 70% Interest free and clear of all Encumbrances. 

- 15 - 

PART 6 

ENVIRONMENTAL INDEMNIFICATION 

Optionor Indemnity 

6.1          
Subject to §6.3, the Optionor agrees to indemnify and save the Optionee
harmless from and against any Environmental Liability suffered or incurred by
the Optionee arising directly or indirectly from any operations or activities
conducted in or on the Property, whether by the Optionor or others, prior to the
Execution Date. 

Optionee Indemnity 

6.2          
Subject to §6.3, the Optionee agrees to indemnify and save the Optionor
harmless from and against any Environmental Liability suffered or incurred by
the Optionor arising directly or indirectly from any operations or activities
conducted on the Property, whether by the Optionee, its employees or agents,
after the Execution Date. 

Limitation on Indemnities 

6.3          
If a Joint Venture is formed pursuant to §9.1, any Environmental Liability
caused by a party prior to the formation of the Joint Venture will continue to
be a liability of that party. If the Environmental Liability arises from
operations conducted on the Property after the date the Joint Venture is formed,
the Environmental Liability will be borne by the parties in accordance with
their participating interests at the time the Environmental Liability arises.

Survival 

6.4          
The provisions of this Part 6 will survive any termination of this
Agreement. 

PART 7 

RIGHTS AND OBLIGATIONS DURING OPTION PERIOD 

Work Programs During Option Phase 

7.1          
The Optionee will have the exclusive right to manage and operate all
work programs carried out on the Property, subject to §7.2, for so long as the
Option remains outstanding, and all work programs will be in the sole discretion
of the Optionee. 

Retention of Optionor to Perform Work Programs 

7.2          
The Optionee hereby agrees to retain Lake Victoria Resources (T) Ltd.
to perform all recommended exploration work on the Property for the first twelve
(12) months following the Effective Date in accordance with the Exploration
Services Agreement which will include a 12% management fee for all recommended
exploration work on the Property that is performed by Lake Victoria Resources
(T) Ltd. and its employees. If Lake Victoria Resources (T) Ltd. retains any third party to perform such recommended exploration work,
Lake Victoria Resources (T) Ltd. will not receive any management fee whatsoever,
but will be reimbursed by the Optionor for any reasonable expenses incurred by
Lake Victoria Resources (T) Ltd. in connection with retaining such third party.

- 16 - 

7.3          
The Optionee will have the right, in its sole discretion, to retain
Lake Victoria Resources (T) Ltd. to perform recommended exploration work on the
Property following the first anniversary date following the Effective Date. 

Overhead 

7.4          
The Optionee will be entitled to include in Work Costs for so long as
the Option remains outstanding an overhead charge (“Overhead Charge”) for
management supervision and administrative services of the Optionee equal to:

(a) five percent (5%) of all Work Costs
and costs incurred by the Optionee under each contract with a third party
involving a payment of Work Costs in excess of $100,000; and 

(b) seven and one-half percent
(7.5%) of all other Work Costs incurred by the Optionee in respect of the
Property; excluding in each case the amount of the overhead charge fixed under
this §7.4. 

The Optionor shall review the Overhead Charges after completion
of the first year of this Agreement when the Overhead Charges are fully reported
in the Optionee’s quarterly financial reports. In the event the Optionor
disagrees with the amount of the Overhead Charges the Optionor and Optionee may
change the Overhead Charge to a percentage mutually agreed to. In the event of a
disagreement Part 15 shall apply. 

Additional Rights 

7.5          
For so long as the Option is outstanding, the Optionee and its
employees, representatives, agents and independent contractors will have the
right: 

(a) to access all information in the
possession or control of the Optionor relating to prior operations on the
Property including all geological, geophysical and geochemical data and drill
results; 

(b) to enter upon the Property and
carry out such exploration and development work thereon and thereunder as the
Optionee considers advisable, including removing material from the Property for
the purpose of testing; and 

(c) to bring upon and erect upon the
Property such structures, machinery and equipment, facilities and supplies as
the Optionee considers advisable. 

- 17 - 

Optionor’s Access 

7.6          
The Optionor will have access to the Property, concurrently with the
Optionee, at all reasonable times, at the Optionor’s own risk and expense, for
the purpose of inspecting the work being done by the Optionee and to perform its
obligations under the Exploration Services Agreement. 

Optionee Obligations 

7.7          
For so long as the Option is outstanding, the Optionee will: 

(a) record all assessment work done by
it on the Property; 

(b) keep the Property free and clear of
all Encumbrances arising from its operations under this Agreement (except
Encumbrances for taxes not yet due, other inchoate Encumbrances, the Permitted
Encumbrances and Encumbrances contested in good faith by the Optionee) and to
contest or discharge any such Encumbrance that is filed; 

(c) obtain and maintain, and cause any
contractor engaged by it to obtain and maintain, such insurance as the Optionee
reasonably considers appropriate in the circumstances, with both the owner and
the Optionee being named as insured in such policies;

(d) conduct all work in a careful and
miner-like manner and in compliance with all applicable laws; and 

(e) pay to the Optionor the amount of
all license fees (the “License Fees”) in connection with the Licenses on
or before thirty (30) days prior to the due date of such fees and the Optionor
agrees to pay the License Fees on or before each due date. 

Reporting Obligations 

7.8          
Subject to §7.9, for so long as the Option is outstanding, the Optionee
will: 

(a) within thirty (30) days following
each month during which field work is carried out, furnish the Optionor with a
brief field report summarizing the work carried out by the Optionee during the
previous month; 

(b) furnish the Optionor with quarterly
licensing reports required by the Ministry of Energy and Minerals (Tanzania) on
or before thirty (30) days prior to the due date of such reports and the
Optionor agrees to submit all required quarterly licensing reports to the
Ministry of Energy and Minerals (Tanzania) before each due date; 

(c) furnish the Optionor with annual
reports containing a reasonably complete description and results of the work
done by the Optionee during the previous year, such reports to include a
statement of Work Costs incurred, a summary of the results of such work and a
summary of the Optionee’s interpretation of such results; and 

- 18 - 

(d) give the Optionor access, at its
own risk and expense and at reasonable times, to all preliminary and final
technical data relating to work done on the Property, including all results and
raw data received by the Optionee from laboratories and other independent
contractors retained to provide technical analysis and interpretation. 

Third Party Property Information 

7.9          
The Optionor acknowledges and agrees that neither the Optionee nor any
of its Affiliates are providing any representation or warranty in respect of the
accuracy, completeness or validity of the information relating to the Property
obtained by the Optionee from laboratories and other independent contractors and
provided to the Optionor pursuant to §7.8 or §8.3(a) or otherwise hereunder
(“Third Party Property Information”) and that no such representation or
warranty will be implied. 

The Optionor hereby forever releases and discharges the
Optionee and its Affiliates from any claim in respect of the accuracy,
completeness or validity of any Third Party Property Information. 

Limitation on Property Information 

7.10          
Notwithstanding anything expressed or implied in this Agreement, the Optionor
will not have access to any interpretive data, reports or results generated in
respect of the Property for the internal use of the Optionee or its Affiliates
nor will the Optionor have access to any of the Optionee’s proprietary
techniques. 

Restriction on Employing Optionor’s Employees 

7.11          
The Optionor and Lake Victoria Resources (T) Ltd. have spent years and
considerable money to train their respective directors, officers and Employees.
It would cause considerable hardship to the Optionor and to Lake Victoria
Resources (T) Ltd. if the Optionee or its affiliates or any of the officers and
directors of the Optionee and its affiliates were to employee the Employees. The
Optionee hereby undertakes on behalf of itself and its affiliates not to offer
any employment or gratuities to the Employees at any time during the term of
this Agreement and the Joint Venture and for a period of five years following
the expiration of both agreements. However, the Optionor and Lake Victoria
Resources (T) Ltd. can agree in advance in writing to the employment of an
Employee by the Optionee. 

PART 8 

TERMINATION OF OPTION AND AGREEMENT 

Termination Prior to Earn-In of 70% Interest 

8.1          
The Optionee will have the right at any time prior to earning the 70%
Interest to give notice to the Optionor terminating the Option and this
Agreement. If the Optionee gives such notice of termination or, subject to §5.6,
§5.7 and §14.1, if the Optionee fails to incur the Work Costs and consideration
referred to in §5.1(d) on or before the dates referred to therein, then the Option and this Agreement will terminate and the
Optionee will, subject to the provisions of Part 3, Part 6 and Part 11, and
subject to §8.3 have no further rights or interest in the Property and no
further obligations or liabilities to the Optionor. 

- 19 - 

8.2          
If at any time prior to earning the 70% Interest the Optionee is in
default of any material provision in this Agreement, other than the provision of
§7.11, for which no notice of default need be given, the Optionor may terminate
this Agreement, but only if: 

(a) it shall have first given to the
Optionee a notice of default containing particulars of the obligation which the
Optionee has not performed, or the warranty breached; and 

(b) with respect to the provisions of
§5.1, the Optionee has not, within ten (10) business days following delivery of
such notice of default, cured such default or commenced proceedings to cure such
default by appropriate payment or performance, the Optionee hereby agreeing that
should it so commence to cure any default it will prosecute the same to
completion without undue delay; 

(c) for all other provisions of this
Agreement, the Optionee has not, within thirty (30) days following delivery of
such notice of default, cured such default or commenced proceedings to cure such
default by appropriate payment or performance, the Optionee hereby agreeing that
should it so commence to cure any default it will prosecute the same to
completion without undue delay. 

If the Optionee has failed to satisfy its obligations pursuant
to §8.2(b), the Optionor may thereafter terminate this Agreement by giving
notice thereof to the Optionee and this Agreement will terminate and the
Optionee will, subject to the provisions of Part 3, Part 6 and Part 11, and
subject to §8.3, have no further rights or interest in the Property and no
further obligations or liabilities to the Optionor. 

Events on Termination 

8.3          
If this Agreement is terminated by the Optionee or the Optionor
pursuant to §8.1 or §8.2, the Optionee will: 

(a) deliver to the Optionor, within
sixty (60) days of termination, a final report on all work carried out by the
Optionee on the Property since the date of the last annual report delivered
under §7.8(c), together with all drill cores and unprocessed assay samples and
copies of all maps, drill logs, assay results and other factual technical data
compiled by the Optionee with respect to the Property and not previously
delivered to the Optionor; 

(b) remove from the Property within
twelve (12) months of termination, or sooner if required under applicable law,
all structures, machinery, equipment, facilities and supplies erected, installed
or brought upon the Property by or at the instance of the Optionee; and 

(c) leave all Licenses comprising the
Property, as at the time of termination of this Agreement, in good standing
under applicable laws for a period of six months.

- 20 - 

PART 9 

FORMATION AND OPERATION OF JOINT VENTURE 

Formation of Joint Venture 

9.1          
Effective as of the Earn-In Date, the Optionee and the Optionor will
participate in a joint venture (the “Joint Venture”) by entering into a
formal joint venture agreement (the “Joint Venture Agreement”) for the
purpose of further exploration and development work on the Property and if
warranted, the operation of one or more mines on the Property. 

Participating Interests 

9.2          
The participating interests of the parties at the time the Joint
Venture is formed will be: 

	Optionee 	70% 
	 	 
	Optionor 	30% 

Each party will be responsible for payment of its proportionate
share (based on its participating interest) of the operating and capital costs
of the Joint Venture’s operations, including reclamation and remediation
obligations and any security required therefore. 

Management Committee 

9.3          
Upon formation of the Joint Venture, a management committee (the
“Management Committee”), formed by members from each party and holding
voting rights in accordance with each party’s participating interest, will be
established which will make all decisions, on a simple majority vote, which are
required to be made by the Joint Venture parties with respect to the Joint
Venture’s operation, including but not limited to the supervision and approval
of exploration, development, construction, mining, milling, processing,
treatment operations and related operations conducted in respect of the
Property. The Management Committee will have the authority to establish its own
rules on how meetings of the Management Committee will be called and conducted.

Operator 

9.4          
The Operator will be subject to the direction and control of the
Management Committee. The Optionee will have the right to be the Operator of the
Joint Venture and to manage and operate the exploration, feasibility study, mine
development and mining phases of the project during the term of the Joint
Venture, provided that the Optionee’s participating interest in the Joint
Venture is at least fifty percent (50%). If the Optionee holds less than a fifty
percent (50%) participating interest, the Management Committee may appoint a new
Operator. 

- 21 - 

Overhead Costs 

9.5          
The Operator will be entitled to charge the Joint Venture an amount for
general overhead and administrative costs and management fees equal to: 

(a) for exploration, including the
preparation of the Preliminary Economic Assessment, five percent (5%) of all
Work Costs incurred under each contract with a third party involving an
expenditure in excess of $100,000, and seven and one-half percent (7.5%) of all
other Work Costs incurred; 

(b) for development and construction,
five percent (5%) of all Work Costs up to the aggregate amount of $100,000, and
three and one-half percent (3.5%) of Work Costs exceeding such aggregate amount;
and 

(c) for mining, five percent (5%) of
all Work Costs; 

excluding in each case the amount of the overhead charge fixed
under this §9.5. 

The parties intend that the Operator will not lose or profit by
reason of acting as Operator of the Joint Venture. The Operator’s rates for
general overhead and administrative costs and management fees will be reviewed
annually by the Management Committee, which may make such amendments as may be
necessary or desirable to achieve the parties’ intention. 

Contracts with Operator 

9.6          
The Operator and any Affiliate of the Operator may enter into contracts
with the Joint Venture, provided that at the time of formation of any such
contract the terms thereof, including the allocation of revenues, costs,
obligations and liabilities are fair and reasonable, and that any charges made
by the Operator or its Affiliates to the Joint Venture do not exceed the fair
market value therefore. 

Accounting Procedures 

9.7          
The Operator will maintain or cause to be maintained the accounts for
the Joint Venture, to the extent and in such detail and at such places as the
Management Committee may determine, such books and records pertaining to the
Joint Venture and to the costs and expenses thereof and the performance of the
Operator hereunder, and to the receipt and disposition of proceeds from any
joint sales, as will properly reflect, in accordance with International
Financial Reporting Standards to the extent applicable and not in
conflict with the provisions hereof, all transactions of the Operator in
relation to the operation of the Joint Venture and the performance of the
Operator’s duties hereunder and all costs paid by the Operator in the
performance thereof and for which it will seek reimbursement, all of which books
and records will be made available to the other party and the Management
Committee, upon reasonable notice and at all reasonable times, for inspection,
audit and reproduction. As soon as possible after the close of each fiscal year
of the Operator, all the books and accounts of the Operator relating to the
operation of the Joint Venture for such fiscal year will be audited by the
auditors for the Optionee or such other auditors as the Management Committee may
determine at the expense of the Joint Venture and copies of the report of the
auditors will be sent promptly to each party. Any claim against the Operator relating to any transactions during the period covered
by such audit will be made within two (2) years after such audit. 

- 22 - 

Programs and Budgets 

9.8          
The Operator will propose the work programs and budgets following the
formation of the Joint Venture in accordance with the instructions of the
Management Committee. Each party will have thirty (30) days from the date of
receipt of a program to notify the Operator as to whether it will participate at
its interest level or whether it will not participate. The participating
interest of a party which elects not to participate will be proportionately
diluted in accordance with the dilution formula set out in §9.9. A party which
fails to so notify the Operator within the time required will be deemed to have
elected to participate in the work program at its interest level. A party’s
right not to participate in a work program and be diluted as aforesaid may only
be exercised prior to a production decision, subject to §9.12. A party which
elects not to participate in a program will not be subject to dilution to the
extent that the expenditures under such program exceed one hundred fifteen
percent (115%) of the budget for such program. If a party fails to pay after
electing to participate that party will suffer an accelerated dilution of
one-hundred fifty percent (150%) of the monies not paid. The Joint Venture
Agreement shall provide that monies required for a work program must be paid no
later than thirty days (30) prior to commencement of a work program. 

Dilution 

9.9          
The dilution formula will be as follows:

	 	percentage participating interest of party Y
      = (A + B) x 100 
	 	                                                                                      C
    
	 	where: 
	 	 
	 	A = deemed expenditures of party Y 
	 	 
	 	B = actual expenditures of party Y 
	 	 
	 	C = total expenditures (deemed and actual) of
      all parties 

Deemed expenditures are assigned a value based on work done by
the Optionee in order to earn its participating interest. Thus, the deemed
expenditures for the parties will be as follows: 

	 	Participating interests of the parties: 	Their deemed expenditures upon formation of the Joint Venture will be: 
	 	 	 	 
	 	Optionee 70% 	$1,570,000 	 
	 	 	 	 
	 	Optionor 30% 	$652,857 	 

For the purposes of calculating B and C above, actual
expenditures are those expenditures made by a party after formation of the Joint
Venture, provided that such actual expenditures will exclude costs made or incurred and included in Work Costs prior
to the day that the Management Committee gives notice to the parties of the
formation of the Joint Venture but paid subsequent to formation of the Joint
Venture. 

- 23 - 

Excess Work Costs 

9.10          
Any Work Costs made or incurred by the Optionee in excess of the Work
Costs required to earn its interest in the Property will be credited to
Optionee’s contribution to the first work program after formation of the Joint
Venture and will not automatically dilute the participating interest of the
Optionor on formation. 

Royalty Interest 

9.11          
If any party is diluted to a ten percent (10%) or lower participating
interest, that party will be deemed to have waived the opportunity to
participate in future work programs, whether in exploration, development or
production, and to have converted its participating interest to a two percent
(2%) Net Smelter Return, to be determined and paid as set out in Schedule “B”
hereto. 

Production Decision 

9.12          
For ninety (90) days following a positive production decision, each party to the
Joint Venture will have the right to elect to participate in the financing in
proportion to its then current participating interest in the Joint Venture. If a
party does not elect to participate in the financing, or is unsuccessful in
raising its proportionate share of the financing, then the other party may
arrange all the financing required and if it does so, the participating interest
of the party which has not provided its share of the financing will be converted
to a two percent (2%) Net Smelter Return, to be determined and paid as provided
in Schedule “B” hereto.

Reclamation Fund 

9.13          
Upon Commencement of Commercial Production, a reclamation fund will be
established to which the parties will be obliged to contribute in accordance
with their participating interests. The reclamation fund will be in an amount
determined by the Management Committee from time to time. The Operator will in
its reasonable discretion accept security in lieu of receiving such payment in
cash. The reclamation fund need not be maintained if one party acquires all of
the other party’s participating interest in the Joint Venture. 

Default in Funding 

9.14          
If a party to the Joint Venture defaults in its obligation to contribute to any
program and budget or to make any other required contribution, the other party
may at its election make such contribution on behalf of the defaulting party (a
“cover payment”). The cover payment will constitute indebtedness due from
the defaulting party to the party making the cover payment and will be payable
on demand, will bear interest at the prime rate of the Bank of Canada plus 10
percent (10%) per annum and will be secured by the defaulting party’s right,
title and interest in the Property and all production therefrom. 

- 24 - 

The party
making the cover payment will have the right to sell in any commercially
reasonable manner the defaulting party’s share of products of any mine developed on the Property until the cover
payment and accrued interest thereon have been paid in full, or may at any time
prior to such payment in full at its election: 

(a) adjust the parties’ respective
participating interests pursuant to §9.9; 

(b) sell the defaulting party’s right,
title and interest in the Property to a third party in a manner provided by
applicable law or otherwise in a commercially reasonable manner and upon
reasonable notice; or 

(c) purchase for its own account all
right, title and interest of the defaulting party in the Property at the fair
market value thereof. 

Taking in Kind 

9.15          
Except as otherwise expressly provided in §9.14, each party will be
entitled to take in kind and separately dispose of its share of products of any
mine developed on the Property in accordance with its participating interest.
Any expenditure incurred in the taking in kind of products by a party will be
borne by it. The division of products for the purposes of this provision will be
conducted in a fair and equitable manner. 

Failure to Enter into Joint Venture Agreement 

9.16          
If for any reason the Joint Venture Agreement is not settled, executed and
delivered, this Agreement, containing the above Joint Venture terms, will remain
binding on the parties and will continue to govern their relationship and
operations on the Property. 

PART 10 

AREA OF INTEREST 

Area of Interest 

10.1          
If either party or any of its Affiliates stakes or otherwise acquires any
interest in primary mining licenses, prospecting licenses, or any other form of
mineral license (the “AOI License”) located wholly or partly in an area
(the “Area of Interest”) within fifteen (15) kilometres from any portion
of the Property as it exists at the date of execution of this Agreement, the
acquiring party will forthwith give notice to the non-acquiring party of such
staking or acquisition, the costs thereof and all details in its possession with
respect to the nature of the AOI License and the known mineralization thereon.
Upon delivery of such notice, the non-acquiring party will have the right to
elect whether to add such rights to the Property (whether the rights are
contained wholly within the Area of Interest or only partially within the Area
of Interest), and: 

(a) if the non-acquiring party does not
want to include such rights as part of the Property, the acquiring party will be
free to develop or otherwise deal with such rights for its own account; or 

- 25 - 

(b) if the non-acquiring party wishes
to include such acquired rights as part of the Property, it will be obliged to
exercise its election in writing within 45 days of receipt of the written notice
referred to in this §10.1, subject to receipt of all required governmental and
regulatory approvals, consents or acceptances, such rights will be considered as
part of the Property at a price equivalent to the actual acquisition cost; and

(c) if such acquired rights are
included as part of the Property, the non-acquiring party will reimburse the
acquiring party for its proportionate share of the acquisition cost based on the
proportionate interest of the non-acquiring party in the Property at the time
such rights are added to the Property. 

10.2          
The inclusion of any such rights will not, however, enlarge the Area of
Interest beyond the area defined on the Effective Date. 

PART 11 

CONFIDENTIALITY 

Confidentiality 

11.1          
All information concerning this Agreement and any matters arising from
or in connection herewith (including all information relating to the Property
received by the Optionee from the Optionor pursuant to §7.5(a) or otherwise or
received by the Optionor from the Optionee pursuant to §7.8 or §8.3(a) or
otherwise) will be treated as confidential by the parties and will not be
disclosed by either party to any other person (other than to an Affiliate or to
the directors, officers or employees of the disclosing party or its Affiliate or
to any legal, accounting, financial or other professional advisor of the
disclosing party or its Affiliate, provided that such persons are under
obligation to maintain confidentiality with respect to such information) without
the prior written consent of the other party, such consent not to be
unreasonably withheld, except to the extent that such disclosure may be
necessary for observance of applicable laws or stock exchange listing
requirements or for the accomplishment of the purposes of this Agreement. 

News Releases and Other Documents 

11.2          
Each party will provide the other with a copy of any news release or
other document containing exploration results or other information about the
Property or this Agreement which it proposes to publish (including on any
website or other electronic media) prior to publication of the same for the
other party’s consent which will not be unreasonably withheld or delayed in view
of any timely disclosure obligations which may be applicable. Each party will
use reasonable efforts to respond to any request by the other party for such
consent within two (2) business days. 

Return of Confidential Information 

11.3          
If this Agreement is terminated pursuant to Part 9, both parties agree
that all Confidential Information and copies thereof obtained by each party
concerning or relating to the other party will be immediately returned to the party or its
representatives having supplied the Confidential Information. 

- 26 - 

Survival of Confidentiality Obligations 

11.4          
The provisions of this Part 11 will survive any termination of the
Option and this Agreement and the acquisition of any interest in the property by
the Optionee hereunder. 

PART 12 

RESTRICTIONS ON TRANSFERS AND ENCUMBRANCES 

Restrictions on Transfers and Encumbrances 

12.1          
Except as set forth in §12.2 to §12.4 hereof, no party will sell,
transfer, assign or convey or grant any Encumbrance over all or any part of its
interest in the Property or this Agreement or any of its rights, benefits and
privileges hereunder (including any Production Royalty Interest) (collectively
for purposes of this Part 12 “an interest in the Property”) without the
prior written consent of the other party thereto, which consent will not be
unreasonably withheld, and any attempt to sell, transfer, assign or convey or to
grant any such Encumbrance over all or any part of its interest in the Property
without such consent will be of no effect. 

Transfers to Affiliates 

12.2          
Each party may sell, transfer, assign and convey an interest in the Property to
an Affiliate of such party, provided such party delivers to the other party
notice of such assignment and provided that before such Affiliate ceases to be
an Affiliate of such party, the interest assigned to such Affiliate must be
assigned back to such party. 

Right of First Refusal 

12.3          
No party will sell, assign, transfer or otherwise dispose of an
interest in the Property except in accordance with §12.1 or §12.2 or upon the
following conditions: 

(a) if a party (the “Seller”)
desires to sell, assign, transfer or otherwise dispose of all or any part of an
interest in the Property to a third party (the “Offered Interest”), the
Seller will first offer (the “Offer”) the same in writing to the other
party for cash. The Offer will state the purchase price payable by the third
party in cash in Canadian dollars or, if the purchase price is for consideration
other than cash, the cash equivalent of such consideration in Canadian dollars,
and will state the other terms and conditions on which the Seller is willing to
sell; 

(b) the other party will have sixty
(60) days to accept the Offer. If the Offer is accepted by the other party (in
this §12.3 the “Purchasing Party”) , the Seller will forthwith transfer
to the Purchasing Party the subject matter of the Offer, upon the Purchasing
Party paying the purchase price;

- 27 - 

(c) the Purchasing Party will be
prohibited from transferring, assigning, selling, conveying or pledging to any
other third party other than an affiliate such Offered Interest for a period of
one year after the completion of sale; 

(d) the Purchasing Party must provide
to the Seller an undertaking that it has not entered into any negotiations of
any sort with parties for the sale, assignment, transfer, conveyance or pledge
of the Offered Interest; and 

(e) if the Offer is not accepted as to
the whole of the subject matter thereof by the other party within sixty (60)
days following receipt of the Offer, then, at any time during the further period
of one hundred twenty (120) days immediately thereafter, the Seller may sell,
assign, transfer or otherwise dispose of the subject matter of the Offer to a
third party, but only at a price and on terms and conditions the same as or more
favourable to the Seller than those set out in the Offer. 

Encumbrances 

12.4          
Following formation of the Joint Venture, a party may grant an
Encumbrance over its interest in the Property, but only upon the condition that
the mortgagee, pledgee or other encumbrancer (the “Holder”) will have
first entered into an agreement with the other party binding upon the Holder and
its assignees to the effect that the Holder and its assignees will not enter
into possession of the interest subject to the Encumbrance or institute any
proceedings to obtain possession thereof, but will limit their remedies against
such interest to the sale thereof, and that §12.3 will apply to any such sale.

PART 13 

OPTION AND EXCHANGE ACCEPTANCE 

Option 

13.1          
This Agreement is an option only and nothing herein contained will be
construed as obligating the Optionee to do any acts or make any payments
hereunder, and any act or acts or payment or payments as will be made hereunder
will not be construed as obligating the Optionee to do any further act or make
further payment or payments. 

Exchange Acceptance 

13.2          
The obligations of the Optionee under this Agreement are subject to the
acceptance for filing of the Agreement by the Exchange. The Optionor agrees to
use commercially reasonable efforts to assist the Optionee in obtaining Exchange
acceptance of this Agreement, including signing and delivering or providing all
such documents and information as may be reasonably required by the Exchange

- 28 - 

PART 14 

FORCE MAJEURE 

Force Majeure 

14.1          
No party will be liable to the other party hereto and no party will be
deemed in default hereunder for any failure to perform or delay in performing
any of its obligations under this Agreement or in incurring Work Costs caused by
or arising out of any event (a “Force Majeure Event”) beyond the
reasonable control of such party, (excluding lack of funds to make the cash
payments and to make the share issuances to the Optionor in Part 5 herein) but
including lack of rights or permission by government authorities or indigenous
peoples’ groups to enter upon the Property to conduct exploration, development
and mining operations thereon, war conditions, actual or potential, earthquake,
fire, storm, flood, explosion, strike, labour trouble, accident, riot,
unavoidable casualty, act of restraint, present or future, of any lawful
authority, act of God, protest or demonstrations by environmental lobbyists or
indigenous peoples’ groups, act of the public enemy, delays in transportation,
breakdown of machinery, inability to obtain necessary materials in the open
market or unavailability of equipment. No right of a party will be affected for
failure or delay of a party to perform any of its obligations under this
Agreement or to incur Work Costs, if the failure or delay is caused by a force
majeure event. All times provided for in this Agreement will be extended for the
period equal to the period of delay. The affected party will take all reasonable
steps to remedy the cause of the delay attributable to the events referred to
above, provided that nothing contained in this section will require any party to
settle any labour dispute, protest or demonstration, or to question or test the
validity of any governmental order, regulation, law or claim of right by
indigenous peoples’ groups. The affected party will promptly give notice to the
other party of the commencement and termination of each period of force majeure.

PART 15 

ARBITRATION 

15.1          
Any dispute arising between the parties in respect of the
interpretation of this Agreement or the performance of any obligation hereunder
will be submitted to binding arbitration consisting of three arbitrators (the
“Arbitration Panel”), one arbitrator appointed by each of the parties
with a third arbitrator appointed by the parties’ two designated arbitrators,
with all costs of such arbitrators to be borne by the unsuccessful party. The
arbitration will be (1) conducted in English, (2) take place in Vancouver,
British Columbia and (3) be conducted in accordance with the Commercial
Arbitration Act of British Columbia. 

- 29 - 

PART 16 

GENERAL 

Relationship 

16.1          
Nothing in this Agreement will be deemed to constitute either party the
partner, agent or legal representative of the other or to create any fiduciary
relationship between them, for any purpose whatsoever. 

Other Activities 

16.2          
Nothing in this Agreement will restrict in any way the freedom of
either party, except with respect to its interest in the Property, to conduct as
it sees fit any business or activity whatsoever, whether in competition with the
Joint Venture or otherwise, including the exploration for, or the development,
mining, production or marketing of any mineral, without any accountability to
the other party. No party which is the owner or operator of another mining
property, mill or other facility will be obliged to mill, beneficiate or handle
any material from the Property or otherwise deal with the Joint Venture. 

Notices 

16.3          
Any notice, commitment, election, consent or any communication required
or permitted to be given hereunder by one party hereto to the other party, in
any capacity (a “Notice”) will be in writing and will be deemed to
have been given if mailed by prepaid registered mail return receipt requested,
faxed or delivered to the address of the other party set out below: 

	 	If to the Optionor: 	  
	 	  	  
	 	         
               Lake Victoria Mining Company, Inc.
	 	         
               #810 – 675 West Hastings Street 
	 	         
               Vancouver, B.C. V6B 1N2 
	 	  	  
	 	       
                 Facsimile: 	866-910-6114 
	 	       
                 Attention: 	David Kalenuik 
	 	       
                 email: 	dkalenuik@gmail.com 
	 	  	  
	 	If to the Optionee: 	  
	 	  	  
	 	         
               Otterburn Ventures Inc. 
	 	         
               1500 Royal Centre – 1055 West Georgia
      Street 
	 	         
               Vancouver, B.C. V6E 4N7 
	 	  	  
	 	       
                 Facsimile: 	604-732-0284 
	 	       
                 Attention: 	Peter Hughes 
	 	       
                 email: 	petehughes@me.com 

- 30 - 

or to such substitute address as such party may from time to
time direct in writing, and any such Notice will be deemed to have been
received, if mailed, on the date noted on the return receipt, if faxed, on the
first business day after the date of transmission, and if delivered, upon the
day of delivery or if such day is not a business day, then on the first business
day thereafter. 

Waiver of Right of Partition 

16.4          
Each party waives the benefit of all provisions of law as now in effect or as
enacted in future relating to actions of partition of real and personal property
and agrees that for so long as this Agreement is in effect it will not resort to
any action in law or in equity to partition the Property or any other real or
personal property subject to this Agreement. 

Interpretation 

16.5          
For purposes of this Agreement, headings are for convenience of
reference only and are not intended to interpret, define or limit the scope of
this Agreement or any provision hereof. The singular of any term includes the
plural and vice versa, and use of any term is generally applicable to either
gender and where applicable, a body corporate, firm or other entity. The word
“including” is not limiting whether or not non-limiting language (such as
“without limitation” or “but not limited to” or words of similar import) is used
with reference thereto. Unless otherwise indicated, all dollar references are to
American dollars. 

Further Assurances 

16.6          
The parties hereto will from time to time do such further acts and
things and execute such further documents and instruments as may be reasonably
required in order to carry out and implement this Agreement. 

Amendments 

16.7          
No modification, variation or amendment of this Agreement will be
effective unless evidenced in writing, executed by both of the parties. 

Severance 

16.8          
If any provision of this Agreement will be invalid, illegal or unenforceable in
any respect under any applicable law, such provision may be severed from this
Agreement, and the validity, legality and enforceability of the remaining
provisions hereof will not be affected or impaired by reason thereof. 

Time 

16.9          
Time will be of the essence of this Agreement. 

Governing Law 

16.10        
This Agreement will be governed by and interpreted and enforced in accordance
with the laws in force in the Province of British Columbia (excluding any
conflict of laws rule or principle which might refer such construction to the laws of
another jurisdiction) and the applicable federal laws of Canada. Each party
irrevocably submits to the non-exclusive jurisdiction of the courts of British
Columbia with respect to any matter arising hereunder or relating hereto. 

- 31 - 

Entire Agreement 

16.11          
This Agreement contains the entire understanding between the parties
hereto dealing with the subject matter hereof and supersedes and replaces all
negotiations, correspondence and prior agreements or understandings relating
thereto. 

Enurement 

16.12          
This Agreement will enure to the benefit of and be binding upon the parties
hereto and their respective successors and permitted assigns. 

Counterparts 

16.13          
This Agreement may be executed in as many counterparts as may be necessary or by
facsimile and each such counterpart agreement or facsimile so executed are
deemed to be an original and such counterparts and facsimile copies together
will constitute one and the same instrument. 

Rule Against Perpetuities 

16.14          
The parties do not intend that there will be any violation of the Rule Against
Perpetuities, the Rule Against Unreasonable Restraints on the alienation of
property, or any similar rule. Accordingly, if any right or option to acquire
any interest in the Property exists under this Agreement, such right or option
must be exercised, if at all, so as to vest such interest within time periods
permitted by applicable rules. If, however, any such violation should
inadvertently occur, the parties hereby agree that a court will reform that
provision in such a way as to approximate most closely the intent of the parties
within the limits permissible under such rules. 

Resale Restrictions 

16.15          
All Shares issued by the Optionee to the Optionor pursuant to this Agreement
will be subject to such resale restrictions as may be imposed by applicable
securities law and the Exchange. 

Change in Capitalization 

16.16          
If the Optionee undertakes a change in capitalization affecting its
Shares, (other than the concurrent private placement) such as subdivision,
consolidation or reclassification of the Shares or other relevant changes in
Shares, including any adjustment arising from a merger, acquisition or plan of
arrangement, such proportionate adjustments, if any, appropriate to reflect such
change will be made by the Optionor with respect to the number of Shares which
may be issued by the Optionee to the Optionor hereunder. 

- 32 - 

IN WITNESS WHEREOF the parties have executed this
Agreement as of the day and year first set forth above. 

LAKE VICTORIA MINING COMPANY, INC. 

Per:      /s/ David Kalenuik

              
  Authorized
  Signatory 

              
  Name: David Kalenuik

              
  Title: President

OTTERBURN VENTURES INC. 

Per:       /s/ Peter Hughes 

              
  Authorized
  Signatory 

              
  Name: Peter Hughes

              
  Title: CEO

- 33 - 

SCHEDULE “A” 

THE PROPERTY 

	
      This is Schedule “A” to the Option and Joint Venture
      Agreement between Lake Victoria Mining Company, Inc. Otterburn Ventures
      Inc. dated as of the Execution Date (the “Agreement”). All capitalized
      terms under in this Schedule “A” but not otherwise defined have the
      meanings ascribed thereto in the Agreement. 

	Prospecting
      License Number 	Recorded Owner - Percentage 
	PL 2806/2004 
	100 % 
Optionor 
	PL 5958/2009 
	100 % 
Optionor

SCHEDULE “B” 

NET SMELTER ROYALTY 

	This is Schedule
      “B” to the Option and Joint Venture Agreement between Lake Victoria Mining
      Company, Inc. Otterburn Ventures Inc. dated as of the Execution Date (the
      “Agreement”). All capitalized terms under in this Schedule “B” but not
      otherwise defined have the meanings ascribed thereto in the Agreement.
  

	1. 	
      The Royalty Interest which may be payable to the Optionor
      s (the "Payee") by the Optionee (the "Payor") pursuant to Subsection 8.11
      of the Agreement will be two (2%) percent of the Net Smelter Revenue (as
      hereinafter defined) and will be calculated and paid to the Payee by the
      Payor in accordance with the terms of this Schedule "B". Terms having
      defined meanings in the Agreement and used herein will have the same
      meanings in this Schedule as assigned to them in the Agreement unless
      otherwise specified or the context otherwise requires.

	 	 	 	 
	2. 	
      The Net Smelter Revenue will be calculated on a calendar
      quarterly basis and will, subject to paragraph 8 of this Schedule "B", be
      equal to Gross Revenue less Permissible Deductions for such
  quarter.

	 	 	 	 
	3. 	
      The following words will have the following
    meanings:

	 	 	 	 
		(a) 	
      "Gross Revenue" means the aggregate of the following
      amounts received in each quarterly period:

	 	 	 	 
			(i) 	
      the revenue received by the Payor from arm's length
      purchasers of all Product,

	 	 	 	 
			(ii) 	
      the fair market value of all Product sold by the Payor in
      such quarter to persons not dealing at arm's length with the Payor,
    and

	 	 	 	 
			(iii) 	
      any proceeds of insurance on Product; and

	 	 	 	 
		(b) 	
      "Permissible Deductions" means the aggregate of the
      following charges (to the extent that they are not deducted by any
      purchaser in computing payment) that are paid in each quarterly
    period:

	 	 	 	 
			(i) 	
      sales charges levied by any sales agent on the sale of
      Product,

	 	 	 	 
			(ii) 	
      transportation costs for Product from the Claims to the
      place of beneficiation, processing or treatment and thence to the place of
      delivery of Product to a purchaser thereof, including shipping, freight,
      handling and forwarding expenses,

	 	 	 	 
			(iii) 	
      all costs, expenses and charges of any nature whatsoever
      which are either paid or incurred by the Payor in connection with
      refinement or beneficiation of Product after leaving the Property,
      including all weighing, sampling, assaying and representation costs, metal
      losses, any umpire charges, and any penalties charged by the processor,
      refinery or smelter, and

	 	 	 	 
			(iv) 	
      all insurance costs on Product, and any government
      royalties, production taxes, severance taxes and sales and other taxes
      levied on Ore, Product or on the production or value thereof (other than
      any Federal or Provincial taxes levied on the income or profit of the
      Payor),

- 2 - 

	 		
      provided that where a cost or expense otherwise
      constituting a Permissible Deduction is incurred by the Payor in a
      transaction with a party with whom it is not dealing at arm's length (as
      that term is defined in the Income Tax Act (Canada)), such cost or expense
      may be deducted, but only as to the lesser of the actual cost incurred by
      the Payor or the fair market value thereof, calculated at the time of such
      transaction and under all the circumstances thereof.

	 	 	 
	 	4. 	
      The Payor shall have the right to commingle with ores
      from the Property, ore produced from other properties, provided that prior
      to such commingling, the Payor shall adopt and employ reasonable practices
      and procedures for weighing, determination of moisture content, sampling
      and assaying, as well as utilize reasonable accurate recovery factors in
      order to determine the amounts of products derived from, or attributable
      to Ore mined and produced from the Property. The Payor shall maintain
      accurate records of the results of such sampling, weighing and analysis as
      pertaining to ore mined and produced from the Property.

	 	 	 
	 	5. 	
      The Royalty Interest will be calculated and paid within
      thirty (30) days after the end of each calendar quarter if reasonably
      possible. Smelter settlement sheets, if any, and a statement setting forth
      calculations in sufficient detail to show the payment's derivation (the
      "Statement") must be submitted with the payment.

	 	 	 
	 	6. 	
      All Royalty Interest payments will be considered final
      and in full satisfaction of all obligations of the Payor with respect
      thereto, unless the Payee delivers to the Payor a written notice (the
      "Objection Notice") describing and setting forth a specific objection to
      the calculation thereof within sixty (60) days after receipt by the Payee
      of the Statement. If the Payee objects to a particular Statement as herein
      provided, the Payee will, for a period of sixty (60) days after the
      Payor's receipt of such Objection Notice, have the right, upon reasonable
      notice and at reasonable times, to have the Payor's accounts and records
      relating to the calculation of the payment in question audited by the
      auditors of the Payor. If such audit determines that there has been a
      deficiency or an excess in the payment made to the Payee, such deficiency
      or excess will be resolved by adjusting the next monthly Royalty Interest
      payment due hereunder. The Payee will pay all the costs and expenses of
      such audit unless a deficiency of three (3%) percent or more of the amount
      due is determined to exist. The Payor will pay the cost and expenses of
      such audit if a deficiency of three (3%) percent or more of the amount due
      is determined to exist. All books and records used and kept by the Payor
      to calculate the Royalty Interest due hereunder will be kept in accordance
      with Canadian generally accepted accounting principles. Failure on the
      part of the Payee to make claim against the Payor for adjustment in such
      sixty (60) day period by delivery of an Objection Notice will conclusively
      establish the correctness and sufficiency of the Statement and payment on
      account of the Royalty Interest for such quarter.

	 	 	 
	 	7. 	
      At the election of the Payee made in writing at least
      ninety (90) days prior to the Closing on account of the Royalty Interest
      (which election may not be rescinded without the consent of the Payor,
      such consent not to be unreasonably withheld) the Payee may elect to
      receive the Royalty interest in kind, provided that any extra costs or
      expenses incurred by the Payor as a result of such election and payment of
      the Royalty Interest in kind will be for the account of the Payee and will
      be due on demand.

	 	 	 
	 	8. 	
      All profits and losses resulting from the Payor engaging
      any commodity futures trading, option trading, metals trading,
      transactions with respect to Product which is a precious metal
      (collectively, "Hedging Transactions") are specifically excluded from
      calculations of the Royalty Interest pursuant to this Schedule "B" (it
      being the intent of the parties that the Payor will have the unrestricted
      right to market and sell Product to third parties in any manner it chooses
      and that the Payee will not have any right to participate in such
  marketing activities or to share in any profits or losses therefrom). 

- 3 - 

	 		
      All Hedging Transactions by
      the Payor and all profits or losses associated therewith, if any, will be
      solely for the Payor's account, irrespective of whether or not Product is
      delivered in fulfillment of such obligations. The amount of Net Smelter
      Revenue derived from all Product subject to Hedging Transactions by the
      Payor will be determined pursuant to the provisions of this paragraph 8
      and not paragraph 2. As to precious metals subject to Hedging Transactions
      by the Payor, Net Smelter Revenue will be determined without reference to
      Hedging Transactions and will be determined by using, for gold, the
      monthly average price of gold, which will be calculated by dividing the
      sum of all London Bullion Market Association P.M. Gold Fix prices reported
      for the calendar month in question by the number of days for which such
      prices were quoted, and for silver, the monthly average price of silver,
      which will be calculated by dividing the sum of all New York Commodity
      Exchange ("COMEX") prices for silver quoted by and at the closing of COMEX
      reported for the calendar month in question by the number of days for
      which such prices were quoted, less, in each case, an amount reasonably
      equivalent to the deductions permitted by paragraph 3 (b). Any Product
      subject to Hedging Transactions will be deemed to be sold, and revenues
      received therefrom, only on the date of final settlement of the amount of
      refined Product allocated to the account of the Payor by a third party
    refinery in respect of such transactions.

	 	 	 
	 	9. 	
      If the Royalty Interest becomes payable to two or more
      parties, those parties will appoint, and will deliver to the Payor a
      document executed by all of those parties appointing, a single agent or
      trustee of all such parties to whom the Payor will make all payments on
      account of the Royalty Interest. The Payor will have no responsibility as
      to the division of the Royalty Interest payments among such parties, and
      if the Payor makes a payment or payments on account of the Royalty
      Interest in accordance with the provisions of this paragraph 9, it will be
      conclusively deemed that such payment or payments have been received by
      the parties entitled thereto. All charges of the agent or trustee will be
      borne solely by the parties receiving payments on account of the Royalty
      Interest.

- 4 - 

SCHEDULE “C” 

LVMC REPRESENTATION LETTER 

	
      This is Schedule “C” to the Option and Joint Venture
      Agreement between Lake Victoria Mining Company, Inc. Otterburn Ventures
      Inc. dated as of the Execution Date (the “Agreement”). All capitalized
      terms under in this Schedule “C” but not otherwise defined have the
      meanings ascribed thereto in the Agreement. 

U.S. Representation Letter of Lake Victoria Mining
Company, Inc. 

In connection with the issuance of common shares (the “Pubco
Shares”) of Otterburn Ventures Inc. (“Pubco”), to the Lake Victoria
Mining Company, Inc. (“LVMC”), pursuant to that certain Option and Joint
Venture Agreement dated as of the Execution Date (the “Agreement”),
between Pubco and LVMC as set out in the Agreement, LVMC hereby agrees,
acknowledges, represents and warrants that: 

1. none of the Pubco Shares have been or will be registered
under the Securities Act of 1933, as amended (the “U.S. Securities Act”),
or under any state securities or “blue sky” laws of any state of the United
States, and may not be offered or sold in the United States or, directly or
indirectly, to U.S. Persons, as that term is defined in Regulation S under the
U.S. Securities Act (“Regulation S”), except in accordance with the
provisions of Regulation S or pursuant to an exemption from, or in a transaction
not subject to, the registration requirements of the U.S. Securities Act and in
compliance with any applicable state and foreign securities laws; 

2. LVMC understands and agrees that offers and sales of any of
the Pubco Shares will be made only in compliance with the registration
provisions of the U.S. Securities Act or an exemption therefrom and in each case
only in accordance with applicable state and foreign securities laws; 

3. LVMC is acquiring the Pubco Shares for investment only and
not with a view to resale or distribution and, in particular, it has no
intention to distribute either directly or indirectly any of the Pubco Shares in
the United States or to U.S. Persons; 

4. Pubco has not undertaken, and will have no obligation, to
register any of the Pubco Shares under the U.S. Securities Act; 

5. Pubco is entitled to rely on the acknowledgements,
agreements, representations and warranties and the statements and answers of
LVMC contained in the Agreement and this Representation Letter, and LVMC will
hold harmless Pubco from any loss or damage either one may suffer as a result of
any such acknowledgements, agreements, representations and/or warranties made by
LVMC not being true and correct; 

6. LVMC has been advised to consult their own respective legal,
tax and other advisors with respect to the merits and risks of an investment in
the Pubco Shares and, with respect to applicable resale restrictions, is solely
responsible (and Pubco is not in any way responsible) for compliance with
applicable resale restrictions; 

- 5 - 

7. LVMC and LVMC’s advisor(s) have had a reasonable opportunity
to ask questions and receive answers concerning the terms and conditions of the
Agreement, and they have had access to such information concerning Pubco as it
has considered necessary or appropriate in connection with LVMC’s investment
decision to acquire the Pubco Shares, including access to Pubco’s public filings
available on the Internet at www.sedar.com (which filings include, among others: Pubco’s management information
circular filed on December 31, 2010; Pubco’s audited annual financial
statements for the years ended July 31, 2010 and 2009, and Pubco’s related
Management’s Discussion and Analysis, each filed on November 8, 2010; Pubco’s
unaudited interim financial statements for the period ended October 31,
2010, and Pubco’s related Management’s Discussion and Analysis, each
filed on December 17, 2010; Pubco’s unaudited interim financial
statements for the period ended January 31, 2011, and Pubco’s related
Management’s Discussion and Analysis, each filed on March 31, 2011), and
that any answers to questions and any request for information have been complied
with to their satisfaction; 

8. the books and records of Pubco were available upon
reasonable notice for inspection, subject to certain confidentiality
restrictions, by the undersigned during reasonable business hours at its
principal place of business and that all documents, records and books in
connection with the acquisition of the Pubco Shares under the Agreement have
been made available for inspection by the undersigned, LVMC’s attorney and/or
advisor(s); 

9. LVMC (i) is able to fend for itself in connection with the
acquisition of the Pubco Shares; (ii) has such knowledge and experience in
business matters as to be capable of evaluating the merits and risks of its
prospective investment in the Pubco Shares; and (iii) has the ability to bear
the economic risks of its prospective investment and can afford the complete
loss of such investment; 

10. LVMC is not aware of any advertisement of any of the Pubco
Shares and is not acquiring the Pubco Shares as a result of any form of general
solicitation or general advertising, including, without limitation,
advertisements, articles, notices or other communications published in any
newspaper, magazine or similar media, or broadcast over radio or television, or
made available on the internet, or any seminar or meeting whose attendees have
been invited by general solicitation or general advertising; 

11. LVMC is acquiring the Pubco Shares as principal for their
own account, for investment purposes only, and not with a view to, or for,
resale, distribution or fractionalization thereof, in whole or in part, and no
other person has a direct or indirect beneficial interest in the Pubco
Shares;

12. neither the U.S. Securities and Exchange Commission nor any
other securities commission or similar regulatory authority has reviewed or
passed on the merits of the Pubco Shares; 

13. LVMC acknowledges and agrees that Pubco will refuse to
register any transfer of Pubco Shares not made in accordance with the provisions
of Regulation S, pursuant to registration under the U.S. Securities Act, or
pursuant to an available exemption from registration under the U.S. Securities
Act; 

- 6 - 

14. .if LVMC decides to offer, sell or otherwise transfer any
of the Pubco Shares it will not offer, sell or otherwise transfer any of such
securities directly or indirectly, unless: 

(i) the sale is to Pubco; 

(ii) the sale is made outside the
United States in a transaction meeting the requirements of Rule 904 of
Regulation S and in compliance with applicable local laws and regulations; 

(iii) the sale is made pursuant to the
exemption from the registration requirements under the U.S. Securities Act
provided by Rule 144 thereunder, if available, and in accordance with any
applicable state securities or “blue sky” laws;

(iv) the securities are sold in a
transaction that does not require registration under the U.S. Securities Act or
any applicable state laws and regulations governing the offer and sale of
securities,

and it has, in the cases of each of
(iii) and (iv) above, prior to such sale furnished to Pubco and the transfer
agent for the Pubco Shares (the “Transfer Agent”) an opinion of counsel
reasonably satisfactory to Pubco and the Transfer Agent stating that such
transaction is exempt from registration under applicable securities laws and
that the legend may be removed. 

15. upon the issuance thereof, and until such time as the same
is no longer required under the applicable requirements of the U.S. Securities
Act or applicable U.S. state laws and regulations, the certificates representing
the Pubco Shares, and all securities issued in exchange therefor or in
substitution thereof, or pursuant to the exercise of rights thereunder, will
bear a legend in substantially the following form: 

“THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “U.S. SECURITIES ACT”). THESE SECURITIES MAY BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE
UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF
REGULATION S UNDER THE U.S. SECURITIES ACT, (C) IN COMPLIANCE WITH THE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT PROVIDED BY
RULE 144 THEREUNDER, IF AVAILABLE, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE
REGISTRATION UNDER THE U.S. SECURITIES ACT, AND THE HOLDER HAS, IN THE CASE OF
EACH OF (C) AND (D), PRIOR TO SUCH SALE FURNISHED TO THE CORPORATION AN OPINION
OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE
CORPORATION. 

THE PRESENCE OF THIS LEGEND MAY IMPAIR
THE ABILITY OF THE HOLDER HEREOF TO EFFECT “GOOD DELIVERY” OF THE SECURITIES
REPRESENTED HEREBY ON A CANADIAN STOCK EXCHANGE.”

- 7 - 

provided, that if the Pubco Shares are being sold under clause
(B) above, at a time when Pubco is a “foreign issuer” as defined in Rule 902(e)
of Regulation S, the legend set forth above may be removed by providing a
declaration to Pubco and the Transfer Agent in the form attached hereto as
Exhibit 1 or such other evidence of exemption as Pubco or the Transfer Agent may
from time to time prescribe, and, if requested by Pubco or the Transfer Agent,
an opinion of counsel of recognized standing in form and substance satisfactory
to Pubco and the Transfer Agent to the effect that the sale of the securities is
being made in compliance with Rule 904 of Regulation S; 

16. there may be material tax consequences to LVMC of an
acquisition, disposition or exercise of any of the Pubco Shares; Pubco gives no
opinion and makes no representation with respect to the tax status of Pubco or
the consequences to LVMC under United States, state, local or foreign tax law of
the Subscriber’s acquisition or disposition or exercise of the Pubco Shares,
including whether Pubco will at any given time be deemed a “passive foreign
investment company” within the meaning of Section 1297 of the United States
Internal Revenue Code; 

17. Pubco is not obligated to remain a “foreign issuer” as
defined in Rule 902(e) of Regulation S;

18. the financial statements of Pubco have been prepared in
accordance with Canadian generally accepted accounting principles, which differ
in some respects from United States generally accepted accounting principles,
and thus may not be comparable to financial statements of United States
companies; and 

19. the representations, warranties and covenants contained in
this Representation Letter are made by it with the intent that they may be
relied upon by Pubco in determining its eligibility and the eligibility of LVMC
to acquire Pubco Shares. It agrees that by accepting any Pubco Shares it shall
be representing and warranting that the representations and warranties above are
true as at the closing of the transactions contemplated by the Agreement with
the same force and effect as if they had been made by it at the closing, and
that they shall survive the acquisition by it of the Pubco Shares and shall
continue in full force and effect notwithstanding any subsequent disposition by
it of such securities. 

LVMC undertakes to notify Pubco immediately of any change in
any representation, warranty or other information relating to LVMC which takes
place prior to the closing. 

- 8 - 

IN WITNESS WHEREOF, Lake Victoria Mining Company, Inc. have
executed this Representation Letter as of _______________, 2011

	If a Corporation, Partnership or Other Entity: 	 	If an Individual: 
	 	 	 
	 	 	 
	Print or Type Name of Entity 	 	Signature 
	 	 	 
	 	 	 
	Signature of Authorized Signatory 	 	Print or Type Name 
	 	 	 
	 	 	 
	Type of Entity 	 	Social Security/Tax I.D. Number

Exhibit “1” to Schedule C 

U.S. Representation Letter of Optionor 

FORM OF DECLARATION FOR REMOVAL OF U.S. LEGEND 

	To: 	Valiant Trust Company, as Registrar and
      Transfer Agent for the common shares of Otterburn Ventures Inc. (the
      “Corporation”): 

The undersigned (a) acknowledges that the sale of the
securities of the Corporation to which this declaration relates is being made in
reliance on Rule 904 of Regulation S under the United States Securities Act of
1933, as amended (the “U.S. Securities Act”) and (b) certifies that (1)
the undersigned is not an affiliate of the Corporation (as that term is defined
in Rule 405 under the U.S. Securities Act), (2) the offer of such securities was
not made to a person in the United States and either (A) at the time the buy
order was originated, the buyer was outside the United States, or the seller and
any person acting on its behalf reasonably believed that the buyer was outside
the United States, or (B) the transaction was executed in, on or through the
facilities of the Canadian National Stock Exchange or another designated
offshore securities market and neither the seller nor any person acting on its
behalf knows that the transaction has been prearranged with a buyer in the
United States, (3) neither the seller nor any affiliate of the seller nor any
person acting on any of their behalf has engaged or will engage in any directed
selling efforts in the United States in connection with the offer and sale of
such securities, (4) the sale is bona fide and not for the purpose of “washing
off” the resale restrictions imposed because the securities are “restricted
securities” (as such term is defined in Rule 144(a)(3) under the U.S. Securities
Act), (5) the seller does not intend to replace such securities with fungible
unrestricted securities of the Corporation and (6) the contemplated sale is not
a transaction, or part of a series of transactions which, although in technical
compliance with Regulation S, is part of a plan or scheme to evade the
registration provisions of the U.S. Securities Act. Terms used herein have the
meanings given to them by Regulation S under the U.S. Securities Act. 

	  	 	X 
	Date 	 	Authorized signatory (if Holder is not
      an 
	  	 	individual) 
	 	 	 
	X 	 	  
	Signature of individual (if Holder is an 	 	 
    
	individual) 	 	Name of authorized signatory (please
  
	  	 	print) 
	  	 	  
	Name of Holder (please print) 	 	 
    
	  	 	Official capacity of authorized signatory

	  	 	(please print) 

Affirmation by Seller’s Broker-Dealer (required
for resales pursuant to section (b)(2)(B) above) 

- 2 - 

We have read the foregoing representations of our customer,
___________________________ (the “Seller”), dated ____________________ ,
with regard to our sale, for such Seller’s account, of the ________________
common shares, represented by certificate number ______________ (the
“Shares”), of the Corporation described therein, and on behalf of
ourselves we certify and affirm that (A) we have no knowledge that the
transaction had been prearranged with a buyer in the United States, (B) the transaction was executed on or
through the facilities of the Canadian National Stock Exchange or another
designated offshore securities market and (C) neither we, nor any person acting
on our behalf, engaged in any directed selling efforts in connection with the
offer and sale of such securities. Terms used herein have the meanings given to
them by Regulation S. 

	 	 
	Name of Firm 	 

	By: 		 
	 	Authorized officer 	 

- 3 - 

SCHEDULE “D” 

OPTIONEE REPRESENTATION LETTER 

	
      This is Schedule “D” to the Option and Joint Venture
      Agreement between Lake Victoria Mining Company, Inc. Otterburn Ventures
      Inc. dated as of the Execution Date (the “Agreement”). All capitalized
      terms under in this Schedule “D” but not otherwise defined have the
      meanings ascribed thereto in the Agreement. 

Optionee Representation Letter 

In connection with the issuance of common shares (the “Pubco
Shares”) of Otterburn Ventures Inc. (“Pubco”) to Lake Victoria Mining
Company, Inc. (“LVMC”) pursuant to that certain Option and Joint Venture
Agreement dated as of the Execution Date (the “Agreement”), between Pubco
and LVMC as set out in the Agreement, Pubco hereby agrees, acknowledges,
represents and warrants that: 

1. the Pubco Shares have not been registered under the
Securities Act of 1933, as amended (the “U.S. Securities Act”), or under
any state securities or “blue sky” laws of any state of the United States; 

2. the offer of the Pubco Shares has been made pursuant to
section 4(2) of the U.S. Securities Act, which provides that the registration
requirement under section 5 of the U.S. Securities Act shall not apply to
transactions by an issuer not involving a public offering, and pursuant to NRS
90.530.11, a copy of which annexed hereto as Appendix I; 

3. Pubco has not undertaken, and will have no obligation, to
register any of the Pubco Shares under the U.S. Securities Act, nor to take any
action to make Rule 144 under the U.S. Securities Act available to facilitate
the resale of the Pubco Shares under the U.S. Securities Act; 

4. the books and records of Pubco have been made available to
LVMC upon reasonable notice for inspection, subject to certain confidentiality
restrictions, by the undersigned during reasonable business hours at its
principal place of business and that all documents, records and books in
connection with the acquisition of the Pubco Shares under the Agreement have
been made available for inspection by LVMC’s attorney and/or advisor(s); 

5. LVMC is entitled to rely on the acknowledgements,
agreements, representations and warranties and the statements and answers of
Pubco contained in the Agreement and this Representation Letter, and Pubco will
hold harmless LVMC from any loss or damage either one may suffer as a result of
any such acknowledgements, agreements, representations and/or warranties made by
Pubco not being true and correct; 

6. No commission or other similar compensation has been paid or
given, directly or indirectly, to a person for soliciting the purchase of the
Pubco Shares;

7. During the past twelve months Pubco has not issued any of
its securities to more than 24 Nevada residents; 

8. Pubco has not undertaken and is not aware of any
advertisement or any form of general solicitation or general advertising in
connection with the offer and sale of the Pubco Shares to LVMC, including,
without limitation, advertisements, articles, notices or other communications
published in any newspaper, magazine or similar media, or broadcast over radio
or television, or made available on the internet, or any seminar or meeting whose attendees have been
invited by general solicitation or general advertising; 

- 4 - 

9. Pubco will refuse to register any transfer of Pubco Shares
not made in accordance with the provisions of Regulation S as promulgated under
the U.S. Securities Act, pursuant to registration under the U.S. Securities Act,
or pursuant to an available exemption from registration under the U.S.
Securities Act; and 

10. the representations, warranties and covenants contained in
this Representation Letter are made by it with the intent that they may be
relied upon by LVMC in determining its eligibility to acquire Pubco Shares. It
agrees that by issuing any Pubco Shares it shall be representing and warranting
that the representations and warranties above are true as at the closing of the
transactions contemplated by the Agreement with the same force and effect as if
they had been made by it at the closing, and that they shall survive the
acquisition by it of the Pubco Shares and shall continue in full force and
effect notwithstanding any subsequent disposition by it of such securities. 

IN WITNESS WHEREOF, Otterburn Ventures Inc. has executed this
Representation Letter as of _______________, 2011

OTTERBURN VENTURES INC 

Per: 

	 	 
	Authorized Signatory 	 

Appendix “I” to Schedule D 

Extract from Nevada Revised Statutes, Chapter
90 

NRS 90.530 Exempt transactions. The following
transactions are exempt from NRS 90.460 and
90.560:

... 

11. Except as otherwise provided in this subsection, a
transaction pursuant to an offer to sell securities of an issuer if: 

     (a) The transaction is part of an
issue in which there are not more than 25 purchasers in this State, other than
those designated in subsection 10, during any 12 consecutive months; 

     (b) No general solicitation or
general advertising is used in connection with the offer to sell or sale of the
securities; 

     (c) No commission or other
similar compensation is paid or given, directly or indirectly, to a person,
other than a broker-dealer licensed or not required to be licensed under this
chapter, for soliciting a prospective purchaser in this State; and 

     (d) One of the following conditions is
satisfied: 

     (1) The
seller reasonably believes that all the purchasers in this State, other than
those designated in subsection 10, are purchasing for investment; or 

     (2)
Immediately before and immediately after the transaction, the issuer reasonably
believes that the securities of the issuer are held by 50 or fewer beneficial
owners, other than those designated in subsection 10, and the transaction is
part of an aggregate offering that does not exceed $500,000 during any 12
consecutive months.Lake Victoria Mining Company, Inc.: Exhibit 10.2  Filed by newsfilecorp.com

EXECUTION VERSION 

OPTION AND
JOINT VENTURE AGREEMENT 

THIS AGREEMENT is dated May 6, 2011 (the
“Execution Date”) 

BETWEEN: 

  
    
      
        LAKE VICTORIA MINING COMPANY, INC., a company
          incorporated pursuant to the laws of State of Nevada and having its
          principal executive office at suite 810 – 675 West Hastings Street,
          Vancouver, British Columbia V6B 1N2 

        (the “Optionor”) 

      

    

  

AND: 

  
    
      
        OTTERBURN VENTURES INC., a company incorporated
          pursuant to the laws of the Province of British Columbia and having
          its registered office at Suite 1500 - 1055 West Georgia Street, Vancouver,
          British Columbia, Canada V6E 4N7 

        (the “Optionee”) 

      

    

  

WHEREAS:

(A)                   
  The Optionor is the registered and beneficial owner of certain prospecting licenses
  (the “Licenses”) located in the Magu District of the Mwanza
  Region of the United Republic of Tanzania, the specific description of such
  Licenses is attached hereto as Schedule “A” (collectively, the “Property”);

(B)                   
  The Optionor has agreed to grant an exclusive option to the Optionee to acquire
  up to a 70% undivided interest in and to the Property by paying certain consideration
  and by incurring certain Work Costs (as that term is defined below) as set forth
  herein; 

(C)                   
  This Agreement is intended to confirm discussions regarding the earning of such
  interest and the subsequent arrangements that may be entered into, and will
  involve the formation of a joint venture that will hold and explore the Property
  and if warranted, develop one or more mining project or projects thereon (the
  “Transaction”). 

(D)                   
  Capitalized words have the meanings given to them in the text of this Agreement
  and in Schedules hereto, as applicable. 

- 2 - 

NOW THEREFORE, in consideration of the mutual covenants
and agreements herein contained and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged by each of the
parties, the parties covenant and agree as follows:

PART 1 

DEFINITIONS AND INTERPRETATION 

Definitions 

1.1                    For
the purposes of this Agreement, except as otherwise expressly provided herein,
the following words and phrases have the following meanings: 

(a)        “1933 Act”
means the United States Securities Act of 1933, as amended; 

(b)        “70%
Interest” means a seventy percent (70%) undivided right, title and interest
in and to the Property and in all rights of the Optionor with respect thereto;

(c)        “Affiliate”
has the meaning given to that term in the Business Corporations Act
(British Columbia); 

(d)        “Agreement”
means this agreement and all of the schedules hereto, as may be amended from
time to time; 

(e)        “AOI License”
has the meaning ascribed therein in §10.1; 

(f)        “Arbitration Panel” has
  the meaning ascribed thereto in §15.1; 

(g)        “Area of Interest” has the
  meaning ascribed thereto in §10.1; 

(h)        “Closing
Date” means means the earlier of the completion by the Optionor of a
concurrent private placement financing of approximately $6,750,000 or May 13,
2011; 

(i)        “Commencement of
Commercial Production” means: 

(i)         if a mill is
located on the Property, the last day of a period of forty (40) consecutive days
in which, for not less than thirty (30) days, the mill processed ore from the
Property at not less than sixty percent (60%) of its rated capacity; and 

(ii)        if no mill is
located on the Property, the last day of the first period of forty (40)
consecutive days during which for not less than thirty (30) days ore has been
shipped from the Property; 

but no period of time during which ore is shipped from the
Property for testing purposes, and no period of time during which milling
operations are undertaken as initial tune-up, will be taken into account in
determining the date of commencement of commercial production; 

- 3 - 

(j)        “Deposit”
has the meaning ascribed thereto in §5.1(b)(i); 

(k)        “Earn-In
Date” means the date which the Optionee has earned the 70% Interest in
accordance with §5.1; 

(l)        “Effective
Date” means May 20, 2011; 

(m)        “Employees”
means employees of Lake Victoria Resources (T) Ltd.; 

(n)        “Encumbrance”
means any privilege, mortgage, hypothec, lien, charge, pledge, security interest
or adverse claim; 

(o)        “Environmental
Liability” means any claim, demand, loss, liability, damage, cost or expense
(including legal fees) suffered or incurred in respect of environmental cleanup
and remediation obligations and liabilities arising directly or indirectly from
operations or activities conducted in or on the Property; 

(p)        “Exchange”
means the Canadian National Stock Exchange; 

(q)        “Execution
Date” has the meaning ascribed thereto on the first page of this Agreement;

(r)        “Exploration
Services Agreement” has the meaning ascribed thereto in §5.4; 

(s)        “Force
  Majeure Event” has the meaning ascribed thereto in §14.1; 

(t)        “Holder” has the meaning ascribed thereto in §12.4; 

(u)        “Joint
Venture” means the joint venture to be formed between the Optionor and the
Optionee in respect of the Property in the event of and upon exercise of the
Option and which is more particularly described in §9.1; 

(v)        “Joint
Venture Agreement” has the meaning ascribed thereto in §9.1; 

(w)        “Lake Victoria
Resources (T) Ltd.” means a Tanzanian corporation wholly-owned by the
Optionor; 

(x)        “License
Fees” has the meaning ascribed thereto in §7.7; 

(y)        “LVMC
Representation Letter” means the U.S. Representation Letter attached hereto
as Schedule “C”; 

(z)        “Management
Committee” has the meaning ascribed thereto in §9.3; 

(aa)     
“Net Smelter Return” means an interest in the returns generated from
production on the Property determined in accordance with Schedule “B”; 

(bb)     
“Offer” has the meaning ascribed thereto in §12.3(a); 

- 4 - 

(cc)    
 “Offered Interest” has the meaning ascribed thereto in §12.3(a);

(dd)     
“Operator” has the meaning ascribed thereto in §9.4; 

(ee)     
“Option” means the exclusive option granted by the Optionor to the
Optionee to acquire the 70% Interest, and thereupon form the Joint Venture, all
on the terms and conditions set forth herein; 

(ff)    
 “Option Cash Payments” has the meaning ascribed thereto in
§5.1(b); 

(gg)    
  “Option Shares” has the meaning ascribed thereto in
  §5.1(c); 

(hh)    
  “Option Work Costs” has the meaning ascribed thereto
  in §5.1(d); 

(ii)     
“Optionee” means Otterburn Ventures Inc., a company incorporated pursuant
to the laws of the Province of British Columbia; 

(jj)     
“Optionee’s Representation Letter” means the Representation Letter
attached hereto as Schedule “D” to this Agreement; 

(kk)    
 “Optionor” means Lake Victoria Mining Company, Inc., a company
incorporated pursuant to the laws of the State of Nevada; 

(ll)      “Option Period”
means the period from the Effective Date to and including the earliest of the:

(i)        the Earn-In Date,
and 

(ii)      the
termination hereof pursuant to Part 8; 

(mm)    
 “Preliminary Economic Assessment” means a study that includes an
economic analysis of the potential economic viability of mineral resources on
the Property; 

(nn)    
 “Property” has the meaning ascribed thereto in Recital (A); 

(oo)     
“Purchasing Party” has the meaning ascribed thereto in §12.3(b); 

(pp)     
“Regulation S” means Regulation S promulgated by the United States
Securities and Exchange Commission under the 1933 Act; 

(qq)    
 “Securities Act” means the Securities Act (British Columbia); 

(rr)    
 “Seller” has the meaning ascribed thereto in §12.3(a); 

(ss)     
“Shares” means the common shares without par value in the capital of the
Optionee; 

(tt)     
“Substantial U.S. Market Interest” means ‘substantial U.S. market
interest’ as that term is defined in Rule 902 of Regulation S; 

- 5 - 

(uu)      “Third Party Property
Information” has the meaning ascribed thereto in §7.9; and 

(vv)     
“United States” means the United States of America, its territories and
possessions, any State of the United States and the District of Columbia; 

(ww)    
 “Work Costs” means, subject to §5.3 and the exclusion of the
License Fees, all expenditures and costs incurred by the Optionee relating
directly or indirectly to the Property including all expenditures and costs
incurred: (a) in doing geophysical, geochemical, land, airborne, environmental
and geological examinations, assessments, assays, audits and surveys; (b) in
linecutting, mapping, trenching and staking; (c) in searching for, digging,
trucking, sampling, working, developing, mining and extracting ores, minerals
and metals; (d) in conducting diamond and other drilling; (e) in obtaining,
providing, installing and erecting mining, milling and other treatment plant,
ancillary facilities, buildings, machinery, tools, appliances and equipment; (f)
in constructing access roads and other facilities on or for the benefit of the
Property or any part thereof (g) in transporting personnel, supplies, mining,
milling and other treatment plant, ancillary facilities, buildings, machinery,
tools, appliances and equipment in, to or from the Property or any part thereof
(h) in paying reasonable wages and salaries (including “fringe benefits”, but
excluding home office costs) of personnel directly engaged in performing work on
or with respect to the Property; (i) in paying assessments and contributions
under applicable employment legislation relating to workers’ compensation and
unemployment insurance and other applicable legislation relating to such
personnel; (j) in supplying food, lodging and other reasonable needs for such
personnel; (k) in obtaining and maintaining any insurance; (1) in obtaining
legal, accounting, consulting and other contract and professional services or
facilities relating to work performed or to be performed hereunder, all at fair
market value competitive rates; (m) in paying any taxes, fees, charges, payments
and rentals (including payments made in lieu of assessment work) or otherwise
incurred to transfer the Property or. any part thereof or interest therein
pursuant to this Agreement and to keep the Property or any part thereof in good
standing; (n) in paying any non-refundable harmonized sales tax and social
services tax and all other taxes charged on expenditures made or incurred by the
Optionee relating directly or indirectly to the Property; (o) in acquiring
access and surface rights to the Property; (p) in carrying out any negotiations
and preparing, settling and executing any Agreements and other documents
relating to environmental or indigenous peoples’ claims, requirements or
matters; (q) in obtaining all necessary or appropriate approvals, permits,
consents and permissions relating to the carrying out of work, including
environmental permits, approvals and consents; (r) in carrying out reclamation
and remediation; (s) in improving, protecting and perfecting title to the
Property or any part thereof; (t) in carrying out mineral, soil, water, air and
other testing; (u) in preparing engineering, geological, financing, marketing
and environmental studies and reports and test work related thereto; (v) in
preparing one or more Preliminary Economic Assessments including any work and
reports preliminary or supplementary thereto; and (w) a charge for management
supervision and administrative services of the Optionee as provided in §7.4 and
§9.5 of this Agreement. 

- 6 - 

Interpretation 

1.2                   
For the purposes of this Agreement except as otherwise expressly provided
herein:

(a)        the words
“herein”, “hereof”, and “hereunder” and other words of
similar import refer to this Agreement as a whole and not to any particular
Part, clause, subclause or other subdivision or Schedule; 

(b)        a reference to a
Part means a Part of this Agreement and the symbol § followed by a number or
some combination of numbers and letters refers to the section, paragraph or
subparagraph of this Agreement so designated; 

(c)        the headings are for
convenience only, do not form a part of this Agreement and are not intended to
interpret, define or limit the scope, extent or intent of this Agreement or any
of its provisions; 

(d)        the word
“including”, when following a general statement, term or matter, is not
to be construed as limiting such general statement, term or matter to the
specific items or matters set forth or to similar items or matters (whether or
not qualified by non-limiting language such as “without limitation” or “but not
limited to” or words of similar import) but rather as permitting the general
statement or term to refer to all other items or matters that could reasonably
fall within its possible scope; 

(e)        a reference to
currency means the lawful currency of the United States of America; and 

(f)        words importing
the masculine gender include the feminine or neuter, words in the singular
include the plural, words importing a corporate entity include individuals, and
vice versa. 

PART 2 

THE PROPERTY 

The Property 

2.1                   
The Property is comprised of the Licenses more particularly described in
Schedule “A” hereto and will include any additional Licenses that become part of
the Property pursuant to Part 10. 

- 7 - 

PART 3 

REPRESENTATIONS AND WARRANTIES 

Mutual Representations 

3.1                    The
Optionee and the Optionor each represent and warrant to the other that: 

(a)        it has been duly
incorporated and is a valid and subsisting body corporate under the laws of its
jurisdiction of incorporation and is duly qualified to carry on business in the
United Republic of Tanzania and to hold an interest in the Property; 

(b)        it has duly obtained
all necessary governmental, corporate and other authorizations for its execution
and performance of this Agreement, and the consummation of the transactions
contemplated herein will not, with the giving of notice or the passage of time,
or both, result in a breach of, constitute a default under, or result in the
creation of any Encumbrance on its assets under, the terms or provisions of any
law applicable to it, its constating documents, any resolution of its directors
or shareholders or any indenture, Agreement or other instrument to which it is a
party or by which it or its assets may be bound; 

(c)        no proceedings
are pending for, and it is unaware of any basis for the institution of any
proceedings leading to, its dissolution or winding up or the placing of it in
bankruptcy or its subjection to any other law governing the affairs of bankrupt
or insolvent persons; 

(d)        it has full right,
power and authority to enter into and accept the terms of this Agreement and to
carry out the transactions contemplated herein; and 

(e)        there are no
third party beneficiaries to the terms of this Agreement. 

Optionor’s Representations 

3.2                   
The Optionor represents and warrants to the Optionee that: 

(a)        the Licenses
comprising the Property are validly located, duly recorded and in good standing,
free and clear of all Encumbrances and underlying interests whatsoever; 

(b)        sufficient
assessment work has been done and reports filed to keep the Licenses comprising
the Property in good standing under the applicable law in Tanzania; 

(c)        there are no
actions, suits, investigations or proceedings before any court, arbitrator,
administrative agency or other tribunal or governmental authority, whether
current, pending or threatened, which directly or indirectly relate to or affect
the Licenses comprising the Property or the interests of the Optionor therein
nor is the Optionor aware of any acts which would lead it to suspect that the
same might be initiated or threatened; 

- 8 - 

(d)        there are no
outstanding Agreements or options to purchase or otherwise acquire the Property
or any portion thereof or any interest therein, and no person has any royalty or
other interest whatsoever in the production from or profits earned from any of
the Licenses comprising the Property; 

(e)        the activities
directly or indirectly relating to the Licenses comprising the Property by the
Optionor and any other person on behalf of the Optionor have been in compliance
with all other applicable laws and the Optionor has not received any notice nor
is the Optionor aware after reasonable inquiry of any breach or violation of any
such laws having been alleged; 

(f)        there are no
obligations or commitments for reclamation, closure or other environmental
corrective, clean-up or remediation action directly or indirectly relating to
the Licenses comprising the Property; and 

(g)        no
environmental audit, assessment, study or test has been conducted in relation to
the Licenses comprising the Property by or on behalf of the Optionor nor is the
Optionor aware after reasonable inquiry of any of the same having been conducted
by or on behalf of any governmental authority or by any other person. 

(h)        the Optionor is
the legal and beneficial owner of a one hundred percent (100%) interest in the
Licenses, or has an option to acquire the Licenses, as described in Schedule “A”
hereto and has the exclusive right to enter into this Agreement and dispose of
an interest in the Property in accordance with the terms hereof; 

(i)        the Optionor is
legally entitled to hold its interest in the Property and the Licences, permits,
easements, rights of way, certificates and other approvals now held or hereafter
acquired by it and necessary for the exploitation of the Property, and will
remain so entitled for so long as it holds any interest in the Property; 

(j)        upon exercise
of the Option by the Optionee, the Optionor will have the legal right and
authority to transfer title to an undivided seventy percent (70%) legal and
beneficial interest in the Property to the Optionee; 

(k)        other than in
connection with this Agreement, it has no knowledge of a “material fact” or
“material change” (as those terms are defined in the Securities Act) in respect
of the Optionee that has not been generally disclosed to the public; and 

(l)        its decision to
tender this Agreement has not been made as a result of any verbal or written
representation as to fact or otherwise made by or on behalf of Optionee or any
other person and is based entirely upon currently available public information
concerning the Optionee and the representations contained herein. 

Exclusive Benefit of the Optionee 

3.3                   
The representations and warranties contained in §3.2 are provided for the
exclusive benefit of the Optionee and a misrepresentation or breach of warranty
may be waived by the Optionee in whole or in part at any time without prejudice
to its rights in respect of any other misrepresentation or breach of the same or any other
representation or warranty; and the representations and warranties contained in
§3.2 and will survive the execution hereof and continue through the Option
Period. 

- 9 - 

Optionee’s Representations 

3.4                   
The Optionee represents and warrants to the Optionor that: 

(a)        as at the
Closing Date, the Optionee’s record of filings available to the public,
including on SEDAR, will be accurate in all material respects and will not omit
to state any material fact required to be stated or necessary to prevent a
statement in the public record from being false or misleading in the
circumstances in which it was made; 

(b)        there are no
actions, suits, investigations or proceedings before any court, arbitrator,
administrative agency or other tribunal or governmental authority whatsoever
outstanding, or, to the best of its knowledge, pending or threatened against or
affecting the Optionee, or its directors, officers, or promoters at law or in
equity of any kind whatsoever which would result in an adverse material change
in the financial position, business or prospects of the Optionee and, to the
best of its knowledge, there is no basis therefore; 

(c)        there are no
issued and outstanding, pending or threatened orders ceasing, halting,
suspending or prohibiting trading in securities of the Optionee, and no
investigations or proceedings for such purposes are pending or threatened; 

(d)        the Shares are,
and will be at all times during the Option Period, part of a class of shares of
the Optionee that is currently listed and posted for trading on the Exchange
and, at the time of the delivery of the certificates representing the Shares, as
applicable, to the Optionor, will have been approved and reserved for listing on
the Exchange, subject only to fulfilment of the requirements of the Exchange and
§3.7(c); 

(e)        as at the
Execution Date, it has issued and outstanding 15,655,000 Shares; 

(f)        as at the
Execution Date, it has no share purchase warrants or options to purchase the
Shares outstanding; 

(g)        as at the
Closing Date, the Optionee will have working capital allocated or will raise
additional capital to carry out its obligations to the end of the first year of
this Agreement; and 

(h)        it is a “foreign
issuer” within the meaning of Regulation S and reasonably believes there is no
Substantial U.S. Market Interest in the Shares. 

Exclusive Benefit of the Optionor 

3.5                    The
representations and warranties contained in §3.4 are provided for the exclusive
benefit of the Optionor and a misrepresentation or breach of warranty may be
waived by the Optionor in whole or in part at any time without prejudice to its
rights in respect of any other misrepresentation or breach of the same or any other
representation or warranty; and the representations and warranties contained in
§3.4 will survive the execution hereof and continue through the Option Period. 

- 10 - 

Survival of Representations and Warranties 

3.6                   
The representations and warranties of the parties set out herein are conditions
upon which the parties have relied in entering into this Agreement and will
survive the termination of this Agreement and the acquisition of any interest in
the Property by the Optionee hereunder, and each party will indemnify and save
the other harmless from all loss, damage, costs and expenses which may be
suffered or incurred by the other as a result of or in connection with any
breach or inaccuracy of any such representation and warranty made by such party.

Restrictions on Securities 

3.7                    The
Optionor acknowledges and agrees that: 

(a)        no prospectus has
been filed by the Optionee with the British Columbia Securities Commission in
connection with the distribution of the Shares, such distribution is exempted
from the prospectus requirements of the Securities Act and that as a result:

(i)          the
Subscriber is restricted from using most of the civil remedies available under
the Securities Act; 

(ii)         no securities
commission or similar regulatory authority has reviewed or passed on the merits
of the Shares; 

(iii)        the Optionor
may not receive information that would otherwise be required to be provided to
the Optionor under the Securities Act; and 

(iv)        the Optionor is
relieved from certain obligations that would otherwise apply under the
Securities Act; 

(b)        none of the
Shares to be issued to the Optionor hereunder have been registered under the
1933 Act or the securities laws of any state of the United States, that such
Shares may not be offered or sold, directly or indirectly, in the United States
unless registered in accordance with federal securities laws and all applicable
state securities laws or exemptions from such registration requirements are
available; and the Optionee has no obligation or present intention of filing a
registration statement under the 1933 Act or any state securities laws in
respect of any of the Shares; 

(c)        the Shares will
be subject to certain resale restrictions imposed under applicable securities
laws and the rules of regulatory bodies having jurisdiction including, without
limiting the generality of the foregoing, the rules of the Exchange, and the
Optionor agrees to comply with such restrictions;

- 11 - 

(d)        it has been advised
to consult its own legal advisors with respect to applicable resale and transfer
restrictions, that it is solely responsible for complying with such
restrictions; 

(e)        under certain
Canadian securities instruments and policies, the Optionee may be required to
the following legend on any certificates representing the Shares: 

“UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE
[four months plus one day after the Effective Date].”;

(f)        the
certificates representing the Shares issued to the Optionor hereunder will be
endorsed with the legends contemplated by the LVMC Representation Letter in the
form attached as Schedule “C”;

(g)        the Optionee
shall make a notation on its records or give instructions to the transfer agent
of the Shares in order to implement the restrictions on transfer set out in
applicable legislation; and 

(h)        no person has
made to the Optionor any written or oral representations:

 (i) that any person
  will resell or repurchase any of the Shares;

(ii) that any person will refund
  the purchase price of any of the Shares; or 

(iii) as to the future price or
  value of any of the Shares;

Listing on a Stock Exchange 

3.8                    The
Optionee will use all commercially reasonable efforts to diligently pursue the
listing of the Shares on a recognized stock exchange in Canada, including the
TSX Venture Exchange and the Toronto Stock Exchange. 

U.S. Representation Letters 

3.9                    The
Optionor shall complete and execute the LVMC Representation Letter in the form
attached as Schedule “C”, and, upon execution and delivery by the Optionor, the
LVMC Representation Letter shall be incorporated into and form part of this
Agreement. 

3.10                  The
Optionee shall complete and execute the Optionee’s Representation Letter in the
form attached as Schedule “D”. 

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PART 4 

DUE DILIGENCE 

Due Diligence Inquiry

4.1                    The
Optionee will be entitled to conduct a due diligence investigation of the title
and environmental condition of the Property, the results of which investigation
will be satisfactory to the Optionee, acting reasonably, and which investigation
will be completed by the Effective Date. The Optionee has retained local counsel
in Tanzania to perform its due diligence investigation and will prepare and
deliver to the Optionee a legal opinion confirming the Optionor’s ownership of
the Property. If at any time during such due diligence period the Optionee,
based on its due diligence investigations, decides acting reasonably that the
Optionor’s title to the property or the environmental condition of the Property
is unsatisfactory, the Optionee may terminate this Agreement upon written notice
to the Optionor without any obligation or liability to the Optionor, except the
Deposit, as that term is defined in §5.1(b)(i), which will become due and
payable upon execution of this Agreement. This §4.1 is for the sole and
exclusive benefit of the Optionee and if not satisfied may be waived in whole or
in part by the Optionee. 

PART 5 

GRANT OF OPTION 

Grant of Option 1 

5.1                   
The Optionor hereby grants to the Optionee the sole and exclusive right and
option to earn the 70% Interest free and clear of all Encumbrances by: 

(a)        making a cash
payment to the Optionor in the amount of $21,897.80 on the Effective Date
representing all annual and quarterly license fees paid by the Optionor in
connection with the Licenses prior to the Effective Date; 

(b)        making cash
payments of an aggregate of $150,000 (the “Option Cash Payments”) to the
Optionor over a two-year period, commencing on the Closing Date, to be funded as
follows: 

(i)          not less
than $20,000 on the Closing Date (the “Deposit”); 

(ii)         not less than
$20,000 on or before the Effective Date (for accumulated cash payments of
$40,000); 

(iii)        not less than
$50,000 on or before the first anniversary date from the Effective Date (for
accumulated cash payments of $90,000); and 

(iv)        not less than
$60,000 on or before the second anniversary date from the Effective Date (for
accumulated cash payments of $150,000); 

- 13 - 

(c)        allotting and
issuing to the Optionor as fully paid and non-assessable, a total of 600,000
Shares (the “Option Shares”) over a two-year period, commencing on the
Effective Date, to be allotted and issued as follows: 

(i)          not less
than 300,000 Shares on the Effective Date; 

(ii)         not less than
150,000 Shares on or before the first anniversary date from the Effective Date
(for accumulated allotments of 450,000 Shares); and 

(iii)        not less than
150,000 Shares on or before the second anniversary date from the Effective Date
(for accumulated allotments of 600,000 Shares); 

(d)        funding
aggregate Work Costs on the Property of $1,350,000 (the “Option Work
Costs”) over a three-year period, commencing on the Effective Date, to be
funded as follows: 

(i)          not less
than $100,000 on or before the date that is 150 calendar days from the Effective
Date; 

(ii)         not less than
an additional $250,000 on or before the first anniversary date from the
Effective Date (for accumulated Work Costs of $350,000); 

(iii)        not less than
an additional $500,000 on or before the second anniversary date from the
Effective Date (for accumulated Work Costs of $850,000); and 

(iv)        not less than an
additional $500,000 on or before the third anniversary date from the Effective
Date (for accumulated Work Costs of $1,350,000); and 

(e)        funding and
completing the Preliminary Economic Assessment on or before the third
anniversary date from the Effective Date. 

5.2                   
The Deposit is a firm commitment of the Optionee and will not be refunded in the
event the transactions contemplated herein are not consummated within sixty (60)
days following the Closing Date. 

Preliminary Economic Assessment Included in Work Costs

5.3                    All
costs incurred in connection with the completion of the Preliminary Economic
Assessment by the Optionee, will be considered part of the Option Work Costs.

Exploration Services Agreement 

5.4                    The
Optionee will enter into an exploration services agreement (the “Exploration
Services Agreement”) with Lake Victoria Resources (T) Ltd. concurrently with
the execution of this Agreement. 

- 14 - 

Determination of Work Costs 

5.5                   
Work Costs will be deemed to have been incurred by the Optionee when the
Optionee has expended funds or has received goods or services from third parties
for which the Optionee has an obligation to make payment, whether or not payment
has been made. Where Work Costs are charged to the Optionee by an Affiliate of
the Optionee for services rendered by such Affiliate, such Work Costs will not
exceed the fair market value of the services rendered. A certificate of an
officer of the Optionee setting forth the Work Costs incurred by the Optionee in
reasonable detail will be prima facie evidence of the same. 

Excess Work Costs and Deficiencies 

5.6                    Work
Costs incurred by the Optionee exceeding the amount of Work Costs required to be
incurred within any period will be carried forward to the succeeding period and
qualify as Work Costs. If the Work Costs incurred are less than the amount of
the Work Costs required to be incurred in any period, the Optionee may at its
option pay the deficiency to the Optionor in cash within sixty (60) days after
the end of such period in order to maintain the Option. Any such payment of cash
in lieu will be deemed to be Work Costs incurred on the Property on or before
the relevant date for purposes of this Part 5. 

Make-up Right 

5.7                   
If the Optionee reasonably believes that it has incurred Work Costs required to
be incurred by the Optionee in any period in order to maintain the Option, but
it is subsequently determined upon examination or audit by either party that
such Work Costs were not incurred within such period, the Optionee will not lose
any of its rights hereunder and the Option will not terminate, provided that the
Optionee pays to the Optionor such deficiency in Work Costs within thirty (30)
days following such determination (if determined by the Optionee) or within
thirty (30) days following notice to the Optionee of such deficiency (if
determined by the Optionor), and the payment of such deficiency in Work Costs
will be deemed to be Work Costs incurred by the Optionee for purposes of this
Agreement. 

Exercise of Option 

5.8                   
The Optionee may in its sole direction at any time accelerate the payment of the
consideration (cash and Shares) and the Work Costs described in §5.1(d) . 

5.9                    If
the Optionee incurs the Option Work Costs, pays the Optionor the Option Cash
Payments and the Option Shares, and completes the Preliminary Economic
Assessment as described in §5.1, it will, without further act or payment, have
and be deemed for all purposes to have exercised the 70% Interest and to have
earned the 70% Interest free and clear of all Encumbrances. 

- 15 - 

PART 6 

ENVIRONMENTAL INDEMNIFICATION 

Optionor Indemnity 

6.1                    Subject
to §6.3, the Optionor agrees to indemnify and save the Optionee harmless from
and against any Environmental Liability suffered or incurred by the Optionee
arising directly or indirectly from any operations or activities conducted in or
on the Property, whether by the Optionor or others, prior to the Execution Date.

Optionee Indemnity 

6.2                    Subject
to §6.3, the Optionee agrees to indemnify and save the Optionor harmless from
and against any Environmental Liability suffered or incurred by the Optionor
arising directly or indirectly from any operations or activities conducted on
the Property, whether by the Optionee, its employees or agents, after the
Execution Date. 

Limitation on Indemnities 

6.3                   
If a Joint Venture is formed pursuant to §9.1, any Environmental Liability
caused by a party prior to the formation of the Joint Venture will continue to
be a liability of that party. If the Environmental Liability arises from
operations conducted on the Property after the date the Joint Venture is formed,
the Environmental Liability will be borne by the parties in accordance with
their participating interests at the time the Environmental Liability arises.

Survival 

6.4                    The
provisions of this Part 6 will survive any termination of this Agreement. 

PART 7 

RIGHTS AND OBLIGATIONS DURING OPTION PERIOD 

Work Programs During Option Phase 

7.1                    The
Optionee will have the exclusive right to manage and operate all work programs
carried out on the Property, subject to §7.2, for so long as the Option remains
outstanding, and all work programs will be in the sole discretion of the
Optionee. 

Retention of Optionor to Perform Work Programs 

7.2                    The
Optionee hereby agrees to retain Lake Victoria Resources (T) Ltd. to perform all
recommended exploration work on the Property for the first twelve (12) months
following the Effective Date in accordance with the Exploration Services
Agreement which will include a 12% management fee for all recommended
exploration work on the Property that is performed by Lake Victoria Resources
(T) Ltd. and its employees. If Lake Victoria Resources (T) Ltd. retains any third party to perform such recommended exploration work,
Lake Victoria Resources (T) Ltd. will not receive any management fee whatsoever,
but will be reimbursed by the Optionor for any reasonable expenses incurred by
Lake Victoria Resources (T) Ltd. in connection with retaining such third party.

- 16 - 

7.3                   
The Optionee will have the right, in its sole discretion, to retain Lake
Victoria Resources (T) Ltd. to perform recommended exploration work on the
Property following the first anniversary date following the Effective Date. 

Overhead 

7.4                    The
Optionee will be entitled to include in Work Costs for so long as the Option
remains outstanding an overhead charge (“Overhead Charge”) for management
supervision and administrative services of the Optionee equal to: 

(a)        five percent
(5%) of all Work Costs and costs incurred by the Optionee under each contract
with a third party involving a payment of Work Costs in excess of $100,000; and

(b)        seven and one-half
percent (7.5%) of all other Work Costs incurred by the Optionee in
respect of the Property; excluding in each case the amount of the overhead
charge fixed under this §7.4. 

The Optionor shall review the Overhead Charges after completion
of the first year of this Agreement when the Overhead Charges are fully reported
in the Optionee’s quarterly financial reports. In the event the Optionor
disagrees with the amount of the Overhead Charges the Optionor and Optionee may
change the Overhead Charge to a percentage mutually agreed to. In the event of a
disagreement Part 15 shall apply. 

Additional Rights 

7.5                   
For so long as the Option is outstanding, the Optionee and its employees,
representatives, agents and independent contractors will have the right: 

(a)        to access all
information in the possession or control of the Optionor relating to prior
operations on the Property including all geological, geophysical and geochemical
data and drill results; 

(b)        to enter upon
the Property and carry out such exploration and development work thereon and
thereunder as the Optionee considers advisable, including removing material from
the Property for the purpose of testing; and 

(c)        to bring upon
and erect upon the Property such structures, machinery and equipment, facilities
and supplies as the Optionee considers advisable. 

- 17 - 

Optionor’s Access 

7.6                    The
Optionor will have access to the Property, concurrently with the Optionee, at
all reasonable times, at the Optionor’s own risk and expense, for the purpose of
inspecting the work being done by the Optionee and to perform its obligations
under the Exploration Services Agreement. 

Optionee Obligations 

7.7                   
For so long as the Option is outstanding, the Optionee will: 

(a)        record all
assessment work done by it on the Property; 

(b)        keep the Property
free and clear of all Encumbrances arising from its operations under this
Agreement (except Encumbrances for taxes not yet due, other inchoate
Encumbrances, the Permitted Encumbrances and Encumbrances contested in good
faith by the Optionee) and to contest or discharge any such Encumbrance that is
filed; 

(c)        obtain and
maintain, and cause any contractor engaged by it to obtain and maintain, such
insurance as the Optionee reasonably considers appropriate in the circumstances,
with both the owner and the Optionee being named as insured in such
policies;

(d)        conduct all
work in a careful and miner-like manner and in compliance with all applicable
laws; and 

(e)        pay to the
Optionor the amount of all license fees (the “License Fees”) in
connection with the Licenses on or before thirty (30) days prior to the due date
of such fees and the Optionor agrees to pay the License Fees on or before each
due date. 

Reporting Obligations 

7.8                    Subject
to §7.9, for so long as the Option is outstanding, the Optionee will: 

(a)        within thirty
(30) days following each month during which field work is carried out, furnish
the Optionor with a brief field report summarizing the work carried out by the
Optionee during the previous month; 

(b)        furnish the
Optionor with quarterly licensing reports required by the Ministry of Energy and
Minerals (Tanzania) on or before thirty (30) days prior to the due date of such
reports and the Optionor agrees to submit all required quarterly licensing
reports to the Ministry of Energy and Minerals (Tanzania) before each due date;

(c)        furnish the
Optionor with annual reports containing a reasonably complete description and
results of the work done by the Optionee during the previous year, such reports
to include a statement of Work Costs incurred, a summary of the results of such
work and a summary of the Optionee’s interpretation of such results; and 

- 18 - 

(d)        give the
Optionor access, at its own risk and expense and at reasonable times, to all
preliminary and final technical data relating to work done on the Property,
including all results and raw data received by the Optionee from laboratories
and other independent contractors retained to provide technical analysis and
interpretation. 

Third Party Property Information 

7.9                    The
Optionor acknowledges and agrees that neither the Optionee nor any of its
Affiliates are providing any representation or warranty in respect of the
accuracy, completeness or validity of the information relating to the Property
obtained by the Optionee from laboratories and other independent contractors and
provided to the Optionor pursuant to §7.8 or §8.3(a) or otherwise hereunder
(“Third Party Property Information”) and that no such representation or
warranty will be implied. 

The Optionor hereby forever releases and discharges the
Optionee and its Affiliates from any claim in respect of the accuracy,
completeness or validity of any Third Party Property Information. 

Limitation on Property Information 

7.10                  Notwithstanding
anything expressed or implied in this Agreement, the Optionor will not have
access to any interpretive data, reports or results generated in respect of the
Property for the internal use of the Optionee or its Affiliates nor will the
Optionor have access to any of the Optionee’s proprietary techniques. 

Restriction on Employing Optionor’s Employees 

7.11                    The
Optionor and Lake Victoria Resources (T) Ltd. have spent years and considerable
money to train their respective directors, officers and Employees. It would
cause considerable hardship to the Optionor and to Lake Victoria Resources (T)
Ltd. if the Optionee or its affiliates or any of the officers and directors of
the Optionee and its affiliates were to employee the Employees. The Optionee
hereby undertakes on behalf of itself and its affiliates not to offer any
employment or gratuities to the Employees at any time during the term of this
Agreement and the Joint Venture and for a period of five years following the
expiration of both agreements. However, the Optionor and Lake Victoria Resources
(T) Ltd. can agree in advance in writing to the employment of an Employee by the
Optionee. 

PART 8 

TERMINATION OF OPTION AND AGREEMENT 

Termination Prior to Earn-In of 70% Interest 

8.1                   
The Optionee will have the right at any time prior to earning the 70% Interest
to give notice to the Optionor terminating the Option and this Agreement. If the
Optionee gives such notice of termination or, subject to §5.6, §5.7 and §14.1,
if the Optionee fails to incur the Work Costs and consideration referred to in
§5.1(d) on or before the dates referred to therein, then the Option and this Agreement will terminate and the
Optionee will, subject to the provisions of Part 3, Part 6 and Part 11, and
subject to §8.3 have no further rights or interest in the Property and no
further obligations or liabilities to the Optionor.

- 19 - 

8.2                   
If at any time prior to earning the 70% Interest the Optionee is in default of
any material provision in this Agreement, other than the provision of §7.11, for
which no notice of default need be given, the Optionor may terminate this
Agreement, but only if: 

(a)        it shall have
first given to the Optionee a notice of default containing particulars of the
obligation which the Optionee has not performed, or the warranty breached; and

(b)        with respect to the
provisions of §5.1, the Optionee has not, within ten (10) business days
following delivery of such notice of default, cured such default or commenced
proceedings to cure such default by appropriate payment or performance, the
Optionee hereby agreeing that should it so commence to cure any default it will
prosecute the same to completion without undue delay; 

(c)        for all other
provisions of this Agreement, the Optionee has not, within thirty (30) days
following delivery of such notice of default, cured such default or commenced
proceedings to cure such default by appropriate payment or performance, the
Optionee hereby agreeing that should it so commence to cure any default it will
prosecute the same to completion without undue delay. 

If the Optionee has failed to satisfy its obligations pursuant
to §8.2(b), the Optionor may thereafter terminate this Agreement by giving
notice thereof to the Optionee and this Agreement will terminate and the
Optionee will, subject to the provisions of Part 3, Part 6 and Part 11, and
subject to §8.3, have no further rights or interest in the Property and no
further obligations or liabilities to the Optionor. 

Events on Termination 

8.3                   
If this Agreement is terminated by the Optionee or the Optionor pursuant to §8.1
or §8.2, the Optionee will: 

(a)        deliver to the
Optionor, within sixty (60) days of termination, a final report on all work
carried out by the Optionee on the Property since the date of the last annual
report delivered under §7.8(c), together with all drill cores and unprocessed
assay samples and copies of all maps, drill logs, assay results and other
factual technical data compiled by the Optionee with respect to the Property and
not previously delivered to the Optionor; 

(b)        remove from the
Property within twelve (12) months of termination, or sooner if required under
applicable law, all structures, machinery, equipment, facilities and supplies
erected, installed or brought upon the Property by or at the instance of the
Optionee; and 

(c)        leave all
Licenses comprising the Property, as at the time of termination of this
Agreement, in good standing under applicable laws for a period of six
months.

- 20 - 

PART 9 

FORMATION AND OPERATION OF JOINT VENTURE 

Formation of Joint Venture 

9.1                   
Effective as of the Earn-In Date, the Optionee and the Optionor will participate
in a joint venture (the “Joint Venture”) by entering into a formal joint
venture agreement (the “Joint Venture Agreement”) for the purpose of
further exploration and development work on the Property and if warranted, the
operation of one or more mines on the Property. 

Participating Interests 

9.2                    The
participating interests of the parties at the time the Joint Venture is formed
will be: 

	Optionee 	70% 
	Optionor 	30% 

Each party will be responsible for payment of its proportionate
share (based on its participating interest) of the operating and capital costs
of the Joint Venture’s operations, including reclamation and remediation
obligations and any security required therefore. 

Management Committee 

9.3                   
Upon formation of the Joint Venture, a management committee (the “Management
Committee”), formed by members from each party and holding voting rights in
accordance with each party’s participating interest, will be established which
will make all decisions, on a simple majority vote, which are required to be
made by the Joint Venture parties with respect to the Joint Venture’s operation,
including but not limited to the supervision and approval of exploration,
development, construction, mining, milling, processing, treatment operations and
related operations conducted in respect of the Property. The Management
Committee will have the authority to establish its own rules on how meetings of
the Management Committee will be called and conducted. 

Operator 

9.4                    The
Operator will be subject to the direction and control of the Management
Committee. The Optionee will have the right to be the Operator of the Joint
Venture and to manage and operate the exploration, feasibility study, mine
development and mining phases of the project during the term of the Joint
Venture, provided that the Optionee’s participating interest in the Joint
Venture is at least fifty percent (50%). If the Optionee holds less than a fifty
percent (50%) participating interest, the Management Committee may appoint a new
Operator. 

- 21 - 

Overhead Costs 

9.5                    The
Operator will be entitled to charge the Joint Venture an amount for general
overhead and administrative costs and management fees equal to: 

(a)        for exploration,
including the preparation of the Preliminary Economic Assessment, five percent
(5%) of all Work Costs incurred under each contract with a third party involving
an expenditure in excess of $100,000, and seven and one-half percent (7.5%) of
all other Work Costs incurred; 

(b)        for development and
construction, five percent (5%) of all Work Costs up to the aggregate amount of
$100,000, and three and one-half percent (3.5%) of Work Costs exceeding such
aggregate amount; and 

(c)        for mining,
five percent (5%) of all Work Costs; 

excluding in each case the amount of the overhead charge fixed
under this §9.5. 

The parties intend that the Operator will not lose or profit by
reason of acting as Operator of the Joint Venture. The Operator’s rates for
general overhead and administrative costs and management fees will be reviewed
annually by the Management Committee, which may make such amendments as may be
necessary or desirable to achieve the parties’ intention. 

Contracts with Operator 

9.6                    The
Operator and any Affiliate of the Operator may enter into contracts with the
Joint Venture, provided that at the time of formation of any such contract the
terms thereof, including the allocation of revenues, costs, obligations and
liabilities are fair and reasonable, and that any charges made by the Operator
or its Affiliates to the Joint Venture do not exceed the fair market value
therefore. 

Accounting Procedures 

9.7                    The
Operator will maintain or cause to be maintained the accounts for the Joint
Venture, to the extent and in such detail and at such places as the Management
Committee may determine, such books and records pertaining to the Joint Venture
and to the costs and expenses thereof and the performance of the Operator
hereunder, and to the receipt and disposition of proceeds from any joint sales,
as will properly reflect, in accordance with International Financial Reporting
Standards to the extent applicable and not in conflict with the
provisions hereof, all transactions of the Operator in relation to the operation
of the Joint Venture and the performance of the Operator’s duties hereunder and
all costs paid by the Operator in the performance thereof and for which it will
seek reimbursement, all of which books and records will be made available to the
other party and the Management Committee, upon reasonable notice and at all
reasonable times, for inspection, audit and reproduction. As soon as possible
after the close of each fiscal year of the Operator, all the books and accounts
of the Operator relating to the operation of the Joint Venture for such fiscal
year will be audited by the auditors for the Optionee or such other auditors as
the Management Committee may determine at the expense of the Joint Venture and
copies of the report of the auditors will be sent promptly to each party. Any
claim against the Operator relating to any transactions during the period covered
by such audit will be made within two (2) years after such audit. 

- 22 - 

Programs and Budgets 

9.8                   
The Operator will propose the work programs and budgets following the formation
of the Joint Venture in accordance with the instructions of the Management
Committee. Each party will have thirty (30) days from the date of receipt of a
program to notify the Operator as to whether it will participate at its interest
level or whether it will not participate. The participating interest of a party
which elects not to participate will be proportionately diluted in accordance
with the dilution formula set out in §9.9. A party which fails to so notify the
Operator within the time required will be deemed to have elected to participate
in the work program at its interest level. A party’s right not to participate in
a work program and be diluted as aforesaid may only be exercised prior to a
production decision, subject to §9.12. A party which elects not to participate
in a program will not be subject to dilution to the extent that the expenditures
under such program exceed one hundred fifteen percent (115%) of the budget for
such program. If a party fails to pay after electing to participate that party
will suffer an accelerated dilution of one-hundred fifty percent (150%) of the
monies not paid. The Joint Venture Agreement shall provide that monies required
for a work program must be paid no later than thirty days (30) prior to
commencement of a work program. 

Dilution 

9.9                   
The dilution formula will be as follows:

percentage participating interest of
party Y = (A + B) x
100 
                                                                                          
C 

where: 

A = deemed expenditures of party Y 

B = actual expenditures of party Y 

C = total expenditures (deemed and
actual) of all parties 

Deemed expenditures are assigned a value based on work done by
the Optionee in order to earn its participating interest. Thus, the deemed
expenditures for the parties will be as follows: 

	 	Participating interests of the parties: 	Their deemed expenditures upon formation of the
      Joint Venture will be: 
	 	 	 	 
	 	Optionee 70% 	$1,350,000 	 
	 	 	 	 
	 	Optionor 30% 	$578,571 	 

For the purposes of calculating B and C above, actual
expenditures are those expenditures made by a party after formation of the Joint
Venture, provided that such actual expenditures will exclude costs made or incurred and included in Work Costs prior
to the day that the Management Committee gives notice to the parties of the
formation of the Joint Venture but paid subsequent to formation of the Joint
Venture. 

- 23 - 

Excess Work Costs 

9.10                  Any
Work Costs made or incurred by the Optionee in excess of the Work Costs required
to earn its interest in the Property will be credited to Optionee’s contribution
to the first work program after formation of the Joint Venture and will not
automatically dilute the participating interest of the Optionor on formation.

Royalty Interest 

9.11                 
If any party is diluted to a ten percent (10%) or lower participating interest,
that party will be deemed to have waived the opportunity to participate in
future work programs, whether in exploration, development or production, and to
have converted its participating interest to a two percent (2%) Net Smelter
Return, to be determined and paid as set out in Schedule “B” hereto. 

Production Decision 

9.12                 
For ninety (90) days following a positive production decision, each party to the
Joint Venture will have the right to elect to participate in the financing in
proportion to its then current participating interest in the Joint Venture. If a
party does not elect to participate in the financing, or is unsuccessful in
raising its proportionate share of the financing, then the other party may
arrange all the financing required and if it does so, the participating interest
of the party which has not provided its share of the financing will be converted
to a two percent (2%) Net Smelter Return, to be determined and paid as provided
in Schedule “B” hereto.

Reclamation Fund 

9.13                  Upon
Commencement of Commercial Production, a reclamation fund will be established to
which the parties will be obliged to contribute in accordance with their
participating interests. The reclamation fund will be in an amount determined by
the Management Committee from time to time. The Operator will in its reasonable
discretion accept security in lieu of receiving such payment in cash. The
reclamation fund need not be maintained if one party acquires all of the other
party’s participating interest in the Joint Venture. 

Default in Funding 

9.14                 
If a party to the Joint Venture defaults in its obligation to contribute to any
program and budget or to make any other required contribution, the other party
may at its election make such contribution on behalf of the defaulting party (a
“cover payment”). The cover payment will constitute indebtedness due from
the defaulting party to the party making the cover payment and will be payable
on demand, will bear interest at the prime rate of the Bank of Canada plus 10
percent (10%) per annum and will be secured by the defaulting party’s right,
title and interest in the Property and all production therefrom. 

- 24 - 

The party
making the cover payment will have the right to sell in any commercially
reasonable manner the defaulting party’s share of products of any mine developed on the Property until the cover
payment and accrued interest thereon have been paid in full, or may at any time
prior to such payment in full at its election: 

(a)        adjust the parties’
respective participating interests pursuant to §9.9; 

(b)        sell the defaulting
party’s right, title and interest in the Property to a third party in a manner
provided by applicable law or otherwise in a commercially reasonable manner and
upon reasonable notice; or 

(c)        purchase for
its own account all right, title and interest of the defaulting party in the
Property at the fair market value thereof. 

Taking in Kind 

9.15                 
Except as otherwise expressly provided in §9.14, each party will be entitled to
take in kind and separately dispose of its share of products of any mine
developed on the Property in accordance with its participating interest. Any
expenditure incurred in the taking in kind of products by a party will be borne
by it. The division of products for the purposes of this provision will be
conducted in a fair and equitable manner. 

Failure to Enter into Joint Venture Agreement 

9.16                 
If for any reason the Joint Venture Agreement is not settled, executed and
delivered, this Agreement, containing the above Joint Venture terms, will remain
binding on the parties and will continue to govern their relationship and
operations on the Property. 

PART 10 

AREA OF INTEREST 

Area of Interest 

10.1                  If
either party or any of its Affiliates stakes or otherwise acquires any interest
in primary mining licenses, prospecting licenses, or any other form of mineral
license (the “AOI License”) located wholly or partly in an area (the
“Area of Interest”) within fifteen (15) kilometres from any portion of
the Property as it exists at the date of execution of this Agreement, the
acquiring party will forthwith give notice to the non-acquiring party of such
staking or acquisition, the costs thereof and all details in its possession with
respect to the nature of the AOI License and the known mineralization thereon.
Upon delivery of such notice, the non-acquiring party will have the right to
elect whether to add such rights to the Property (whether the rights are
contained wholly within the Area of Interest or only partially within the Area
of Interest), and: 

(a)        if the
non-acquiring party does not want to include such rights as part of the
Property, the acquiring party will be free to develop or otherwise deal with
such rights for its own account; or 

- 25 - 

(b)        if the non-acquiring
party wishes to include such acquired rights as part of the Property, it will be
obliged to exercise its election in writing within 45 days of receipt of the
written notice referred to in this §10.1, subject to receipt of all required
governmental and regulatory approvals, consents or acceptances, such rights will
be considered as part of the Property at a price equivalent to the actual
acquisition cost; and 

(c)        if such acquired
rights are included as part of the Property, the non-acquiring party will
reimburse the acquiring party for its proportionate share of the acquisition
cost based on the proportionate interest of the non-acquiring party in the
Property at the time such rights are added to the Property. 

10.2                 
The inclusion of any such rights will not, however, enlarge the Area of Interest
beyond the area defined on the Closing Date. 

PART 11 

CONFIDENTIALITY 

Confidentiality 

11.1                  All
information concerning this Agreement and any matters arising from or in
connection herewith (including all information relating to the Property received
by the Optionee from the Optionor pursuant to §7.5(a) or otherwise or received
by the Optionor from the Optionee pursuant to §7.8 or §8.3(a) or otherwise) will
be treated as confidential by the parties and will not be disclosed by either
party to any other person (other than to an Affiliate or to the directors,
officers or employees of the disclosing party or its Affiliate or to any legal,
accounting, financial or other professional advisor of the disclosing party or
its Affiliate, provided that such persons are under obligation to maintain
confidentiality with respect to such information) without the prior written
consent of the other party, such consent not to be unreasonably withheld, except
to the extent that such disclosure may be necessary for observance of applicable
laws or stock exchange listing requirements or for the accomplishment of the
purposes of this Agreement. 

News Releases and Other Documents 

11.2                  Each
party will provide the other with a copy of any news release or other document
containing exploration results or other information about the Property or this
Agreement which it proposes to publish (including on any website or other
electronic media) prior to publication of the same for the other party’s consent
which will not be unreasonably withheld or delayed in view of any timely
disclosure obligations which may be applicable. Each party will use reasonable
efforts to respond to any request by the other party for such consent within two
(2) business days. 

Return of Confidential Information 

11.3                  If
this Agreement is terminated pursuant to Part 8, both parties agree that all
Confidential Information and copies thereof obtained by each party concerning or
relating to the other party will be immediately returned to the party or its
representatives having supplied the Confidential Information. 

- 26 - 

Survival of Confidentiality Obligations 

11.4                 
The provisions of this Part 11 will survive any termination of the Option and
this Agreement and the acquisition of any interest in the property by the
Optionee hereunder. 

PART 12 

RESTRICTIONS ON TRANSFERS AND ENCUMBRANCES 

Restrictions on Transfers and Encumbrances 

12.1                  Except
as set forth in §12.2 to §12.4 hereof, no party will sell, transfer, assign or
convey or grant any Encumbrance over all or any part of its interest in the
Property or this Agreement or any of its rights, benefits and privileges
hereunder (including any Production Royalty Interest) (collectively for purposes
of this Part 12 “an interest in the Property”) without the prior written
consent of the other party thereto, which consent will not be unreasonably
withheld, and any attempt to sell, transfer, assign or convey or to grant any
such Encumbrance over all or any part of its interest in the Property without
such consent will be of no effect. 

Transfers to Affiliates 

12.2                 
Each party may sell, transfer, assign and convey an interest in the Property to
an Affiliate of such party, provided such party delivers to the other party
notice of such assignment and provided that before such Affiliate ceases to be
an Affiliate of such party, the interest assigned to such Affiliate must be
assigned back to such party. 

Right of First Refusal 

12.3                  No
party will sell, assign, transfer or otherwise dispose of an interest in the
Property except in accordance with §12.1 or §12.2 or upon the following
conditions: 

(a)        if a party (the
“Seller”) desires to sell, assign, transfer or otherwise dispose of all
or any part of an interest in the Property to a third party (the “Offered
Interest”), the Seller will first offer (the “Offer”) the same in
writing to the other party for cash. The Offer will state the purchase price
payable by the third party in cash in Canadian dollars or, if the purchase price
is for consideration other than cash, the cash equivalent of such consideration
in Canadian dollars, and will state the other terms and conditions on which the
Seller is willing to sell; 

(b)        the other party
will have sixty (60) days to accept the Offer. If the Offer is accepted by the
other party (in this §12.3 the “Purchasing Party”) , the Seller will
forthwith transfer to the Purchasing Party the subject matter of the Offer, upon
the Purchasing Party paying the purchase price;

- 27 - 

(c)        the Purchasing Party
will be prohibited from transferring, assigning, selling, conveying or pledging
to any other third party other than an affiliate such Offered Interest for a
period of one year after the completion of sale; 

(d)        the Purchasing Party
must provide to the Seller an undertaking that it has not entered into any
negotiations of any sort with parties for the sale, assignment, transfer,
conveyance or pledge of the Offered Interest; and 

(e)      
 if the Offer is not accepted as to the whole of the subject matter thereof
by the other party within sixty (60) days following receipt of the Offer, then,
at any time during the further period of one hundred twenty (120) days
immediately thereafter, the Seller may sell, assign, transfer or otherwise
dispose of the subject matter of the Offer to a third party, but only at a price
and on terms and conditions the same as or more favourable to the Seller than
those set out in the Offer. 

Encumbrances 

12.4                 
Following formation of the Joint Venture, a party may grant an Encumbrance over
its interest in the Property, but only upon the condition that the mortgagee,
pledgee or other encumbrancer (the “Holder”) will have first entered into
an agreement with the other party binding upon the Holder and its assignees to
the effect that the Holder and its assignees will not enter into possession of
the interest subject to the Encumbrance or institute any proceedings to obtain
possession thereof, but will limit their remedies against such interest to the
sale thereof, and that §12.3 will apply to any such sale. 

PART 13 

OPTION AND EXCHANGE ACCEPTANCE 

Option 

13.1                  This
Agreement is an option only and nothing herein contained will be construed as
obligating the Optionee to do any acts or make any payments hereunder, and any
act or acts or payment or payments as will be made hereunder will not be
construed as obligating the Optionee to do any further act or make further
payment or payments. 

Exchange Acceptance 

13.2                  The
obligations of the Optionee under this Agreement are subject to the acceptance
for filing of the Agreement by the Exchange. The Optionor agrees to use
commercially reasonable efforts to assist the Optionee in obtaining Exchange
acceptance of this Agreement, including signing and delivering or providing all
such documents and information as may be reasonably required by the Exchange

- 28 - 

PART 14 

FORCE MAJEURE 

Force Majeure 

14.1                 
No party will be liable to the other party hereto and no party will be deemed in
default hereunder for any failure to perform or delay in performing any of its
obligations under this Agreement or in incurring Work Costs caused by or arising
out of any event (a “Force Majeure Event”) beyond the reasonable control
of such party, (excluding lack of funds to make the cash payments and to make
the share issuances to the Optionor in Part 5 herein) but including lack of
rights or permission by government authorities or indigenous peoples’ groups to
enter upon the Property to conduct exploration, development and mining
operations thereon, war conditions, actual or potential, earthquake, fire,
storm, flood, explosion, strike, labour trouble, accident, riot, unavoidable
casualty, act of restraint, present or future, of any lawful authority, act of
God, protest or demonstrations by environmental lobbyists or indigenous peoples’
groups, act of the public enemy, delays in transportation, breakdown of
machinery, inability to obtain necessary materials in the open market or
unavailability of equipment. No right of a party will be affected for failure or
delay of a party to perform any of its obligations under this Agreement or to
incur Work Costs, if the failure or delay is caused by a force majeure event.
All times provided for in this Agreement will be extended for the period equal
to the period of delay. The affected party will take all reasonable steps to
remedy the cause of the delay attributable to the events referred to above,
provided that nothing contained in this section will require any party to settle
any labour dispute, protest or demonstration, or to question or test the
validity of any governmental order, regulation, law or claim of right by
indigenous peoples’ groups. The affected party will promptly give notice to the
other party of the commencement and termination of each period of force majeure.

PART 15 

ARBITRATION 

15.1                  Any
dispute arising between the parties in respect of the interpretation of this
Agreement or the performance of any obligation hereunder will be submitted to
binding arbitration consisting of three arbitrators (the “Arbitration
Panel”), one arbitrator appointed by each of the parties with a third
arbitrator appointed by the parties’ two designated arbitrators, with all costs
of such arbitrators to be borne by the unsuccessful party. The arbitration will
be (1) conducted in English, (2) take place in Vancouver, British Columbia and
(3) be conducted in accordance with the Commercial Arbitration Act of
British Columbia. 

- 29 - 

PART 16 

GENERAL 

Relationship 

16.1                 
Nothing in this Agreement will be deemed to constitute either party the partner,
agent or legal representative of the other or to create any fiduciary
relationship between them, for any purpose whatsoever. 

Other Activities 

16.2                 
Nothing in this Agreement will restrict in any way the freedom of either party,
except with respect to its interest in the Property, to conduct as it sees fit
any business or activity whatsoever, whether in competition with the Joint
Venture or otherwise, including the exploration for, or the development, mining,
production or marketing of any mineral, without any accountability to the other
party. No party which is the owner or operator of another mining property, mill
or other facility will be obliged to mill, beneficiate or handle any material
from the Property or otherwise deal with the Joint Venture. 

Notices 

16.3                 
Any notice, commitment, election, consent or any communication required or
permitted to be given hereunder by one party hereto to the other party, in any
capacity (a “Notice”) will be in writing and will be deemed to
have been given if mailed by prepaid registered mail return receipt requested,
faxed or delivered to the address of the other party set out below: 

If to the Optionor: 

Lake Victoria Mining Company,
Inc.
#810 – 675 West Hastings Street 
Vancouver, B.C. V6B 1N2 

Facsimile:       866-910-6114

Attention:      David Kalenuik

email:             
dkalenuik@gmail.com 

If to the Optionee: 

Otterburn Ventures Inc. 
1500 Royal
Centre – 1055 West Georgia Street 
Vancouver, B.C. V6E 4N7 

Facsimile:       604-732-0284

Attention:      Peter Hughes

email:             
petehughes@me.com

- 30 - 

or to such substitute address as such party may from time to
time direct in writing, and any such Notice will be deemed to have been
received, if mailed, on the date noted on the return receipt, if faxed, on the
first business day after the date of transmission, and if delivered, upon the
day of delivery or if such day is not a business day, then on the first business
day thereafter. 

Waiver of Right of Partition 

16.4                  Each
party waives the benefit of all provisions of law as now in effect or as enacted
in future relating to actions of partition of real and personal property and
agrees that for so long as this Agreement is in effect it will not resort to any
action in law or in equity to partition the Property or any other real or
personal property subject to this Agreement. 

Interpretation 

16.5                 
For purposes of this Agreement, headings are for convenience of reference only
and are not intended to interpret, define or limit the scope of this Agreement
or any provision hereof. The singular of any term includes the plural and vice
versa, and use of any term is generally applicable to either gender and where
applicable, a body corporate, firm or other entity. The word “including” is not
limiting whether or not non-limiting language (such as “without limitation” or
“but not limited to” or words of similar import) is used with reference thereto.
Unless otherwise indicated, all dollar references are to American dollars. 

Further Assurances 

16.6                  The
parties hereto will from time to time do such further acts and things and
execute such further documents and instruments as may be reasonably required in
order to carry out and implement this Agreement. 

Amendments 

16.7                  No
modification, variation or amendment of this Agreement will be effective unless
evidenced in writing, executed by both of the parties. 

Severance 

16.8                 
If any provision of this Agreement will be invalid, illegal or unenforceable in
any respect under any applicable law, such provision may be severed from this
Agreement, and the validity, legality and enforceability of the remaining
provisions hereof will not be affected or impaired by reason thereof. 

Time 

16.9                  Time
will be of the essence of this Agreement. 

Governing Law 

16.10                This
Agreement will be governed by and interpreted and enforced in accordance with
the laws in force in the Province of British Columbia (excluding any conflict of
laws rule or principle which might refer such construction to the laws of
another jurisdiction) and the applicable federal laws of Canada. Each party
irrevocably submits to the non-exclusive jurisdiction of the courts of British
Columbia with respect to any matter arising hereunder or relating hereto. 

- 31 - 

Entire Agreement 

16.11               
This Agreement contains the entire understanding between the parties hereto
dealing with the subject matter hereof and supersedes and replaces all
negotiations, correspondence and prior agreements or understandings relating
thereto. 

Enurement 

16.12                This
Agreement will enure to the benefit of and be binding upon the parties hereto
and their respective successors and permitted assigns. 

Counterparts 

16.13               
This Agreement may be executed in as many counterparts as may be necessary or by
facsimile and each such counterpart agreement or facsimile so executed are
deemed to be an original and such counterparts and facsimile copies together
will constitute one and the same instrument. 

Rule Against Perpetuities 

16.14                The
parties do not intend that there will be any violation of the Rule Against
Perpetuities, the Rule Against Unreasonable Restraints on the alienation of
property, or any similar rule. Accordingly, if any right or option to acquire
any interest in the Property exists under this Agreement, such right or option
must be exercised, if at all, so as to vest such interest within time periods
permitted by applicable rules. If, however, any such violation should
inadvertently occur, the parties hereby agree that a court will reform that
provision in such a way as to approximate most closely the intent of the parties
within the limits permissible under such rules. 

Resale Restrictions 

16.15                All
Shares issued by the Optionee to the Optionor pursuant to this Agreement will be
subject to such resale restrictions as may be imposed by applicable securities
law and the Exchange. 

Change in Capitalization 

16.16               
If the Optionee undertakes a change in capitalization affecting its Shares,
(other than the concurrent private placement) such as subdivision, consolidation
or reclassification of the Shares or other relevant changes in Shares, including
any adjustment arising from a merger, acquisition or plan of arrangement, such
proportionate adjustments, if any, appropriate to reflect such change will be
made by the Optionor with respect to the number of Shares which may be issued by
the Optionee to the Optionor hereunder. 

- 32 - 

IN WITNESS WHEREOF the parties have executed this
Agreement as of the day and year first set forth above. 

LAKE VICTORIA MINING COMPANY, INC. 

Per:      /s/ David Kalenuik

              
  Authorized
  Signatory 

              
  Name: David Kalenuik

              
  Title: President

OTTERBURN VENTURES INC. 

Per:       /s/ Peter Hughes 

              
  Authorized
  Signatory 

              
  Name: Peter Hughes

              
  Title: CEO

- 33 - 

SCHEDULE “A” 

THE PROPERTY 

	
      This is Schedule “A” to the Option and Joint Venture
      Agreement between Lake Victoria Mining Company, Inc. Otterburn Ventures
      Inc. dated as of the Execution Date (the “Agreement”). All capitalized
      terms under in this Schedule “A” but not otherwise defined have the
      meanings ascribed thereto in the Agreement.

	Prospecting License Number 	Recorded Owner -
      Percentage 
	PL 2724/2004 	100 % 
Optionor 
	PL 5829/2009 	100 % 
Optionor 
	PL 2910/2004 	100 % 
Optionor 
	PL 5912/2009 	100 % 
Optionor 
	PL 3006/2005 	100 % 
Optionor 
	PL 5988/2009 	100 % 
Optionor
  

SCHEDULE “B” 

NET SMELTER ROYALTY 

	
      This is Schedule “B” to the Option and Joint Venture
      Agreement between Lake Victoria Mining Company, Inc. Otterburn Ventures
      Inc. dated as of the Execution Date (the “Agreement”). All capitalized
      terms under in this Schedule “B” but not otherwise defined have the
      meanings ascribed thereto in the Agreement.

	1. 	
      The Royalty Interest which may be payable to the Optionor
      s (the "Payee") by the Optionee (the "Payor") pursuant to Subsection 8.11
      of the Agreement will be two (2%) percent of the Net Smelter Revenue (as
      hereinafter defined) and will be calculated and paid to the Payee by the
      Payor in accordance with the terms of this Schedule "B". Terms having
      defined meanings in the Agreement and used herein will have the same
      meanings in this Schedule as assigned to them in the Agreement unless
      otherwise specified or the context otherwise requires.

	 	 	 	 
	2. 	
      The Net Smelter Revenue will be calculated on a calendar
      quarterly basis and will, subject to paragraph 8 of this Schedule "B", be
      equal to Gross Revenue less Permissible Deductions for such
  quarter.

	 	 	 	 
	3. 	
      The following words will have the following
    meanings:

	 	 	 	 
		(a) 	
      "Gross Revenue" means the aggregate of the following
      amounts received in each quarterly period:

	 	 	 	 
			(i) 	
      the revenue received by the Payor from arm's length
      purchasers of all Product,

	 	 	 	 
			(ii) 	
      the fair market value of all Product sold by the Payor in
      such quarter to persons not dealing at arm's length with the Payor,
    and

	 	 	 	 
			(iii) 	
      any proceeds of insurance on Product; and

	 	 	 	 
		(b) 	
      "Permissible Deductions" means the aggregate of the
      following charges (to the extent that they are not deducted by any
      purchaser in computing payment) that are paid in each quarterly
    period:

	 	 	 	 
			(i) 	
      sales charges levied by any sales agent on the sale of
      Product,

	 	 	 	 
			(ii) 	
      transportation costs for Product from the Claims to the
      place of beneficiation, processing or treatment and thence to the place of
      delivery of Product to a purchaser thereof, including shipping, freight,
      handling and forwarding expenses,

	 	 	 	 
			(iii) 	
      all costs, expenses and charges of any nature whatsoever
      which are either paid or incurred by the Payor in connection with
      refinement or beneficiation of Product after leaving the Property,
      including all weighing, sampling, assaying and representation costs, metal
      losses, any umpire charges, and any penalties charged by the processor,
      refinery or smelter, and

	 	 	 	 
			(iv) 	
      all insurance costs on Product, and any government
      royalties, production taxes, severance taxes and sales and other taxes
      levied on Ore, Product or on the production or value thereof (other than
      any Federal or Provincial taxes levied on the income or profit of the
      Payor),

- 2 - 

		
      provided that where a cost or expense otherwise
      constituting a Permissible Deduction is incurred by the Payor in a
      transaction with a party with whom it is not dealing at arm's length (as
      that term is defined in the Income Tax Act (Canada)), such cost or expense
      may be deducted, but only as to the lesser of the actual cost incurred by
      the Payor or the fair market value thereof, calculated at the time of such
      transaction and under all the circumstances thereof.

	 	 
	4. 	
      The Payor shall have the right to commingle with ores
      from the Property, ore produced from other properties, provided that prior
      to such commingling, the Payor shall adopt and employ reasonable practices
      and procedures for weighing, determination of moisture content, sampling
      and assaying, as well as utilize reasonable accurate recovery factors in
      order to determine the amounts of products derived from, or attributable
      to Ore mined and produced from the Property. The Payor shall maintain
      accurate records of the results of such sampling, weighing and analysis as
      pertaining to ore mined and produced from the Property.

	 	 
	5. 	
      The Royalty Interest will be calculated and paid within
      thirty (30) days after the end of each calendar quarter if reasonably
      possible. Smelter settlement sheets, if any, and a statement setting forth
      calculations in sufficient detail to show the payment's derivation (the
      "Statement") must be submitted with the payment.

	 	 
	6. 	
      All Royalty Interest payments will be considered final
      and in full satisfaction of all obligations of the Payor with respect
      thereto, unless the Payee delivers to the Payor a written notice (the
      "Objection Notice") describing and setting forth a specific objection to
      the calculation thereof within sixty (60) days after receipt by the Payee
      of the Statement. If the Payee objects to a particular Statement as herein
      provided, the Payee will, for a period of sixty (60) days after the
      Payor's receipt of such Objection Notice, have the right, upon reasonable
      notice and at reasonable times, to have the Payor's accounts and records
      relating to the calculation of the payment in question audited by the
      auditors of the Payor. If such audit determines that there has been a
      deficiency or an excess in the payment made to the Payee, such deficiency
      or excess will be resolved by adjusting the next monthly Royalty Interest
      payment due hereunder. The Payee will pay all the costs and expenses of
      such audit unless a deficiency of three (3%) percent or more of the amount
      due is determined to exist. The Payor will pay the cost and expenses of
      such audit if a deficiency of three (3%) percent or more of the amount due
      is determined to exist. All books and records used and kept by the Payor
      to calculate the Royalty Interest due hereunder will be kept in accordance
      with Canadian generally accepted accounting principles. Failure on the
      part of the Payee to make claim against the Payor for adjustment in such
      sixty (60) day period by delivery of an Objection Notice will conclusively
      establish the correctness and sufficiency of the Statement and payment on
      account of the Royalty Interest for such quarter.

	 	 
	7. 	
      At the election of the Payee made in writing at least
      ninety (90) days prior to the first payment on account of the Royalty
      Interest (which election may not be rescinded without the consent of the
      Payor, such consent not to be unreasonably withheld) the Payee may elect
      to receive the Royalty interest in kind, provided that any extra costs or
      expenses incurred by the Payor as a result of such election and payment of
      the Royalty Interest in kind will be for the account of the Payee and will
      be due on demand.

	 	 
	8. 	
      All profits and losses resulting from the Payor engaging
      any commodity futures trading, option trading, metals trading,
      transactions with respect to Product which is a precious metal
      (collectively, "Hedging Transactions") are specifically excluded from
      calculations of the Royalty Interest pursuant to this Schedule "B" (it
      being the intent of the parties that the Payor will have the unrestricted
      right to market and sell Product to third parties in any manner it chooses
      and that the Payee will not have any right to participate in such
  marketing activities or to share in any profits or losses therefrom).

- 3 - 

		
       All Hedging Transactions by
      the Payor and all profits or losses associated therewith, if any, will be
      solely for the Payor's account, irrespective of whether or not Product is
      delivered in fulfillment of such obligations. The amount of Net Smelter
      Revenue derived from all Product subject to Hedging Transactions by the
      Payor will be determined pursuant to the provisions of this paragraph 8
      and not paragraph 2. As to precious metals subject to Hedging Transactions
      by the Payor, Net Smelter Revenue will be determined without reference to
      Hedging Transactions and will be determined by using, for gold, the
      monthly average price of gold, which will be calculated by dividing the
      sum of all London Bullion Market Association P.M. Gold Fix prices reported
      for the calendar month in question by the number of days for which such
      prices were quoted, and for silver, the monthly average price of silver,
      which will be calculated by dividing the sum of all New York Commodity
      Exchange ("COMEX") prices for silver quoted by and at the closing of COMEX
      reported for the calendar month in question by the number of days for
      which such prices were quoted, less, in each case, an amount reasonably
      equivalent to the deductions permitted by paragraph 3 (b). Any Product
      subject to Hedging Transactions will be deemed to be sold, and revenues
      received therefrom, only on the date of final settlement of the amount of
      refined Product allocated to the account of the Payor by a third party
    refinery in respect of such transactions.

	 	 
	9. 	
      If the Royalty Interest becomes payable to two or more
      parties, those parties will appoint, and will deliver to the Payor a
      document executed by all of those parties appointing, a single agent or
      trustee of all such parties to whom the Payor will make all payments on
      account of the Royalty Interest. The Payor will have no responsibility as
      to the division of the Royalty Interest payments among such parties, and
      if the Payor makes a payment or payments on account of the Royalty
      Interest in accordance with the provisions of this paragraph 9, it will be
      conclusively deemed that such payment or payments have been received by
      the parties entitled thereto. All charges of the agent or trustee will be
      borne solely by the parties receiving payments on account of the Royalty
      Interest.

- 4 - 

SCHEDULE “C” 

LVMC REPRESENTATION LETTER 

	
      This is Schedule “C” to the Option and Joint Venture
      Agreement between Lake Victoria Mining Company, Inc. Otterburn Ventures
      Inc. dated as of the Execution Date (the “Agreement”). All capitalized
      terms under in this Schedule “C” but not otherwise defined have the
      meanings ascribed thereto in the Agreement. 

U.S. Representation Letter of Lake Victoria Mining
Company, Inc. 

In connection with the issuance of common shares (the “Pubco
Shares”) of Otterburn Ventures Inc. (“Pubco”), to the Lake Victoria
Mining Company, Inc. (“LVMC”), pursuant to that certain Option and Joint
Venture Agreement dated as of the Execution Date (the “Agreement”),
between Pubco and LVMC as set out in the Agreement, LVMC hereby agrees,
acknowledges, represents and warrants that: 

1.          
none of the Pubco Shares have been or will be registered under the Securities
Act of 1933, as amended (the “U.S. Securities Act”), or under any state
securities or “blue sky” laws of any state of the United States, and may not be
offered or sold in the United States or, directly or indirectly, to U.S.
Persons, as that term is defined in Regulation S under the U.S. Securities Act
(“Regulation S”), except in accordance with the provisions of Regulation
S or pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the U.S. Securities Act and in compliance with any
applicable state and foreign securities laws; 

2.          
LVMC understands and agrees that offers and sales of any of the Pubco Shares
will be made only in compliance with the registration provisions of the U.S.
Securities Act or an exemption therefrom and in each case only in accordance
with applicable state and foreign securities laws; 

3.          
LVMC is acquiring the Pubco Shares for investment only and not with a view to
resale or distribution and, in particular, it has no intention to distribute
either directly or indirectly any of the Pubco Shares in the United States or to
U.S. Persons; 

4.          
Pubco has not undertaken, and will have no obligation, to register any of the
Pubco Shares under the U.S. Securities Act; 

5.          
Pubco is entitled to rely on the acknowledgements, agreements, representations
and warranties and the statements and answers of LVMC contained in the Agreement
and this Representation Letter, and LVMC will hold harmless Pubco from any loss
or damage either one may suffer as a result of any such acknowledgements,
agreements, representations and/or warranties made by LVMC not being true and
correct; 

6.          
LVMC has been advised to consult their own respective legal, tax and other
advisors with respect to the merits and risks of an investment in the Pubco
Shares and, with respect to applicable resale restrictions, is solely
responsible (and Pubco is not in any way responsible) for compliance with
applicable resale restrictions; 

- 5 - 

7.          
LVMC and LVMC’s advisor(s) have had a reasonable opportunity to ask questions
and receive answers concerning the terms and conditions of the Agreement, and
they have had access to such information concerning Pubco as it has considered
necessary or appropriate in connection with LVMC’s investment decision to
acquire the Pubco Shares, including access to Pubco’s public filings available
on the Internet at www.sedar.com (which
filings include, among others: Pubco’s management information circular
filed on December 31, 2010; Pubco’s audited annual financial statements
for the years ended July 31, 2010 and 2009, and Pubco’s related
Management’s Discussion and Analysis, each filed on November 8, 2010; Pubco’s
unaudited interim financial statements for the period ended October 31,
2010, and Pubco’s related Management’s Discussion and Analysis, each
filed on December 17, 2010; Pubco’s unaudited interim financial
statements for the period ended January 31, 2011, and Pubco’s related
Management’s Discussion and Analysis, each filed on March 31, 2011), and
that any answers to questions and any request for information have been complied
with to their satisfaction; 

8.          
the books and records of Pubco were available upon reasonable notice for
inspection, subject to certain confidentiality restrictions, by the undersigned
during reasonable business hours at its principal place of business and that all
documents, records and books in connection with the acquisition of the Pubco
Shares under the Agreement have been made available for inspection by the
undersigned, LVMC’s attorney and/or advisor(s); 

9.             LVMC
(i) is able to fend for itself in connection with the acquisition of the Pubco
Shares; (ii) has such knowledge and experience in business matters as to be
capable of evaluating the merits and risks of its prospective investment in the
Pubco Shares; and (iii) has the ability to bear the economic risks of its
prospective investment and can afford the complete loss of such investment; 

10.          
LVMC is not aware of any advertisement of any of the Pubco Shares and is not
acquiring the Pubco Shares as a result of any form of general solicitation or
general advertising, including, without limitation, advertisements, articles,
notices or other communications published in any newspaper, magazine or similar
media, or broadcast over radio or television, or made available on the internet,
or any seminar or meeting whose attendees have been invited by general
solicitation or general advertising; 

11.          
LVMC is acquiring the Pubco Shares as principal for their own account, for
investment purposes only, and not with a view to, or for, resale, distribution
or fractionalization thereof, in whole or in part, and no other person has a
direct or indirect beneficial interest in the Pubco Shares;

12.          
neither the U.S. Securities and Exchange Commission nor any other securities
commission or similar regulatory authority has reviewed or passed on the merits
of the Pubco Shares; 

13.           LVMC
acknowledges and agrees that Pubco will refuse to register any transfer of Pubco
Shares not made in accordance with the provisions of Regulation S, pursuant to
registration under the U.S. Securities Act, or pursuant to an available
exemption from registration under the U.S. Securities Act; 

- 6 - 

14.      
     if LVMC decides to offer, sell or otherwise transfer
any of the Pubco Shares it will not offer, sell or otherwise transfer any of
such securities directly or indirectly, unless: 

(i)           
the sale is to Pubco; 

(ii)          
the sale is made outside the United States in a transaction meeting the
requirements of Rule 904 of Regulation S and in compliance with applicable local
laws and regulations; 

(iii)          the
sale is made pursuant to the exemption from the registration requirements under
the U.S. Securities Act provided by Rule 144 thereunder, if available, and in
accordance with any applicable state securities or “blue sky” laws;

(iv)          
the securities are sold in a transaction that does not require registration
under the U.S. Securities Act or any applicable state laws and regulations
governing the offer and sale of securities,

and it has, in the cases of each of
(iii) and (iv) above, prior to such sale furnished to Pubco and the transfer
agent for the Pubco Shares (the “Transfer Agent”) an opinion of counsel
reasonably satisfactory to Pubco and the Transfer Agent stating that such
transaction is exempt from registration under applicable securities laws and
that the legend may be removed. 

15.             
upon the issuance thereof, and until such time as the same is no longer required
under the applicable requirements of the U.S. Securities Act or applicable U.S.
state laws and regulations, the certificates representing the Pubco Shares, and
all securities issued in exchange therefor or in substitution thereof, or
pursuant to the exercise of rights thereunder, will bear a legend in
substantially the following form: 

“THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “U.S. SECURITIES ACT”). THESE SECURITIES MAY BE OFFERED,
SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE
UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF
REGULATION S UNDER THE U.S. SECURITIES ACT, (C) IN COMPLIANCE WITH THE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT PROVIDED BY
RULE 144 THEREUNDER, IF AVAILABLE, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE
REGISTRATION UNDER THE U.S. SECURITIES ACT, AND THE HOLDER HAS, IN THE CASE OF
EACH OF (C) AND (D), PRIOR TO SUCH SALE FURNISHED TO THE CORPORATION AN OPINION
OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE
CORPORATION. 

THE PRESENCE OF THIS LEGEND MAY IMPAIR
THE ABILITY OF THE HOLDER HEREOF TO EFFECT “GOOD DELIVERY” OF THE SECURITIES
REPRESENTED HEREBY ON A CANADIAN STOCK EXCHANGE.”

- 7 - 

provided, that if the Pubco Shares are being sold under clause
(B) above, at a time when Pubco is a “foreign issuer” as defined in Rule 902(e)
of Regulation S, the legend set forth above may be removed by providing a
declaration to Pubco and the Transfer Agent in the form attached hereto as
Exhibit 1 or such other evidence of exemption as Pubco or the Transfer Agent may
from time to time prescribe, and, if requested by Pubco or the Transfer Agent,
an opinion of counsel of recognized standing in form and substance satisfactory
to Pubco and the Transfer Agent to the effect that the sale of the securities is
being made in compliance with Rule 904 of Regulation S; 

16.             
there may be material tax consequences to LVMC of an acquisition, disposition or
exercise of any of the Pubco Shares; Pubco gives no opinion and makes no
representation with respect to the tax status of Pubco or the consequences to
LVMC under United States, state, local or foreign tax law of the Subscriber’s
acquisition or disposition or exercise of the Pubco Shares, including whether
Pubco will at any given time be deemed a “passive foreign investment company”
within the meaning of Section 1297 of the United States Internal Revenue Code;

17.             
Pubco is not obligated to remain a “foreign issuer” as defined in Rule 902(e) of
Regulation S;

18.            
 the financial statements of Pubco have been prepared in accordance with
Canadian generally accepted accounting principles, which differ in some respects
from United States generally accepted accounting principles, and thus may not be
comparable to financial statements of United States companies; and 

19.             
the representations, warranties and covenants contained in this Representation
Letter are made by it with the intent that they may be relied upon by Pubco in
determining its eligibility and the eligibility of LVMC to acquire Pubco Shares.
It agrees that by accepting any Pubco Shares it shall be representing and
warranting that the representations and warranties above are true as at the
closing of the transactions contemplated by the Agreement with the same force
and effect as if they had been made by it at the closing, and that they shall
survive the acquisition by it of the Pubco Shares and shall continue in full
force and effect notwithstanding any subsequent disposition by it of such
securities. 

LVMC undertakes to notify Pubco immediately of any change in
any representation, warranty or other information relating to LVMC which takes
place prior to the closing. 

- 8 - 

IN WITNESS WHEREOF, Lake Victoria Mining Company, Inc. have
executed this Representation Letter as of _______________, 2011

	If a Corporation, Partnership or Other Entity: 	 	If an Individual: 
	 	 	 
	 	 	 
	Print or Type Name of Entity 	 	Signature 
	 	 	 
	 	 	 
	Signature of Authorized Signatory 	 	Print or Type Name 
	 	 	 
	 	 	 
	Type of Entity 	 	Social Security/Tax I.D. Number

Exhibit “1” to Schedule C 
U.S. Representation
Letter of Optionor 
FORM OF DECLARATION FOR REMOVAL OF U.S. LEGEND

	To: 	Valiant Trust Company, as
      Registrar and Transfer Agent for the common shares of Otterburn Ventures
      Inc. (the “Corporation”): 

The undersigned (a) acknowledges that the sale of the
securities of the Corporation to which this declaration relates is being made in
reliance on Rule 904 of Regulation S under the United States Securities Act of
1933, as amended (the “U.S. Securities Act”) and (b) certifies that (1)
the undersigned is not an affiliate of the Corporation (as that term is defined
in Rule 405 under the U.S. Securities Act), (2) the offer of such securities was
not made to a person in the United States and either (A) at the time the buy
order was originated, the buyer was outside the United States, or the seller and
any person acting on its behalf reasonably believed that the buyer was outside
the United States, or (B) the transaction was executed in, on or through the
facilities of the Canadian National Stock Exchange or another designated
offshore securities market and neither the seller nor any person acting on its
behalf knows that the transaction has been prearranged with a buyer in the
United States, (3) neither the seller nor any affiliate of the seller nor any
person acting on any of their behalf has engaged or will engage in any directed
selling efforts in the United States in connection with the offer and sale of
such securities, (4) the sale is bona fide and not for the purpose of “washing
off” the resale restrictions imposed because the securities are “restricted
securities” (as such term is defined in Rule 144(a)(3) under the U.S. Securities
Act), (5) the seller does not intend to replace such securities with fungible
unrestricted securities of the Corporation and (6) the contemplated sale is not
a transaction, or part of a series of transactions which, although in technical
compliance with Regulation S, is part of a plan or scheme to evade the
registration provisions of the U.S. Securities Act. Terms used herein have the
meanings given to them by Regulation S under the U.S. Securities Act. 

	  	 	X 
	Date 	 	Authorized signatory (if Holder is not
      an 
	  	 	individual) 
	X 	 	  
	Signature of individual (if Holder is an 	 	 
    
	individual) 	 	Name of authorized signatory (please
  
	  	 	print) 
	Name of Holder (please print) 	 	 
    
	  	 	Official capacity of authorized signatory

	  	 	(please print) 

Affirmation by Seller’s Broker-Dealer (required
for resales pursuant to section (b)(2)(B) above) 

- 2 - 

We have read the foregoing representations of our customer,
___________________________ (the “Seller”), dated ____________________,
with regard to our sale, for such Seller’s account, of the ________________
common shares, represented by certificate number ______________ (the
“Shares”), of the Corporation described therein, and on behalf of
ourselves we certify and affirm that (A) we have no knowledge that the
transaction had been prearranged with a buyer in the United States, (B) the transaction was executed on or
through the facilities of the Canadian National Stock Exchange or another
designated offshore securities market and (C) neither we, nor any person acting
on our behalf, engaged in any directed selling efforts in connection with the
offer and sale of such securities. Terms used herein have the meanings given to
them by Regulation S. 

____________________________________________________
Name of
Firm 

By:       ______________________________________________
            
Authorized officer 

- 3 - 

SCHEDULE “D” 

OPTIONEE REPRESENTATION LETTER 

	
      This is Schedule “D” to the Option and Joint Venture
      Agreement between Lake Victoria Mining Company, Inc. Otterburn Ventures
      Inc. dated as of the Execution Date (the “Agreement”). All capitalized
      terms under in this Schedule “D” but not otherwise defined have the
      meanings ascribed thereto in the Agreement. 

Optionee Representation Letter 

In connection with the issuance of common shares (the “Pubco
Shares”) of Otterburn Ventures Inc. (“Pubco”) to Lake Victoria Mining
Company, Inc. (“LVMC”) pursuant to that certain Option and Joint Venture
Agreement dated as of the Execution Date (the “Agreement”), between Pubco
and LVMC as set out in the Agreement, Pubco hereby agrees, acknowledges,
represents and warrants that: 

1.          
the Pubco Shares have not been registered under the Securities Act of 1933, as
amended (the “U.S. Securities Act”), or under any state securities or
“blue sky” laws of any state of the United States; 

2.          
the offer of the Pubco Shares has been made pursuant to section 4(2) of the U.S.
Securities Act, which provides that the registration requirement under section 5
of the U.S. Securities Act shall not apply to transactions by an issuer not
involving a public offering, and pursuant to NRS 90.530.11, a copy of which
annexed hereto as Appendix I; 

3.          
Pubco has not undertaken, and will have no obligation, to register any of the
Pubco Shares under the U.S. Securities Act, nor to take any action to make Rule
144 under the U.S. Securities Act available to facilitate the resale of the
Pubco Shares under the U.S. Securities Act; 

4.          
the books and records of Pubco have been made available to LVMC upon reasonable
notice for inspection, subject to certain confidentiality restrictions, by the
undersigned during reasonable business hours at its principal place of business
and that all documents, records and books in connection with the acquisition of
the Pubco Shares under the Agreement have been made available for inspection by
LVMC’s attorney and/or advisor(s); 

5.          
LVMC is entitled to rely on the acknowledgements, agreements, representations
and warranties and the statements and answers of Pubco contained in the
Agreement and this Representation Letter, and Pubco will hold harmless LVMC from
any loss or damage either one may suffer as a result of any such
acknowledgements, agreements, representations and/or warranties made by Pubco
not being true and correct; 

6.          
No commission or other similar compensation has been paid or given, directly or
indirectly, to a person for soliciting the purchase of the Pubco Shares;

7.          
During the past twelve months Pubco has not issued any of its securities to more
than 24 Nevada residents; 

8.          
Pubco has not undertaken and is not aware of any advertisement or any form of
general solicitation or general advertising in connection with the offer and
sale of the Pubco Shares to LVMC, including, without limitation, advertisements,
articles, notices or other communications published in any newspaper, magazine
or similar media, or broadcast over radio or television, or made available on
the internet, or any seminar or meeting whose attendees have been
invited by general solicitation or general advertising; 

- 4 - 

9.          
Pubco will refuse to register any transfer of Pubco Shares not made in
accordance with the provisions of Regulation S as promulgated under the U.S.
Securities Act, pursuant to registration under the U.S. Securities Act, or
pursuant to an available exemption from registration under the U.S. Securities
Act; and 

10.          the
representations, warranties and covenants contained in this Representation
Letter are made by it with the intent that they may be relied upon by LVMC in
determining its eligibility to acquire Pubco Shares. It agrees that by issuing
any Pubco Shares it shall be representing and warranting that the
representations and warranties above are true as at the closing of the
transactions contemplated by the Agreement with the same force and effect as if
they had been made by it at the closing, and that they shall survive the
acquisition by it of the Pubco Shares and shall continue in full force and
effect notwithstanding any subsequent disposition by it of such securities. 

IN WITNESS WHEREOF, Otterburn Ventures Inc. has executed this
Representation Letter as of _______________, 2011

OTTERBURN VENTURES INC 

Per: 

_______________________

  Authorized
Signatory 

Appendix “I” to Schedule D 

Extract from Nevada Revised Statutes, Chapter
90 

NRS 90.530 Exempt transactions. The following
transactions are exempt from NRS 90.460 and
90.560:

11. Except as otherwise provided in this subsection, a
transaction pursuant to an offer to sell securities of an issuer if: 

          (a)      The
transaction is part of an issue in which there are not more than 25 purchasers
in this State, other than those designated in subsection 10, during any 12
consecutive months; 

          (b)      No
general solicitation or general advertising is used in connection with the offer
to sell or sale of the securities; 

          (c)      No
commission or other similar compensation is paid or given, directly or
indirectly, to a person, other than a broker-dealer licensed or not required to
be licensed under this chapter, for soliciting a prospective purchaser in this
State; and 

          (d)      One
of the following conditions is satisfied: 

          (1)      The
seller reasonably believes that all the purchasers in this State, other than
those designated in subsection 10, are purchasing for investment; or 

          (2)      Immediately
before and immediately after the transaction, the issuer reasonably believes
that the securities of the issuer are held by 50 or fewer beneficial owners,
other than those designated in subsection 10, and the transaction is part of an
aggregate offering that does not exceed $500,000 during any 12 consecutive
months.

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