Document:

This Amended and Restated Secured Term Note and any securities to which
Holder hereof is entitled in connection  herewith have not been registered under
the Securities Act of 1933, as amended,  or any applicable state securities acts
and may not be offered, sold, pledged or otherwise disposed of in the absence of
an effective registration statement or an exemption from registration under such
acts.

                     Amended and Restated Secured Term Note

Chicago, Illinois
Amended and Restated as of
November 21, 2002                                    $1,400,000 (U.S.D.)

         FOR  VALUE  RECEIVED,   Altair   Nanotechnologies,   Inc.,  a  Canadian
corporation (the "Company"),  Altair Nanomaterials,  Inc., a Nevada corporation,
Mineral Recovery  Systems,  Inc., a Nevada  corporation,  and Fine Gold Recovery
Systems,   Inc.,  a  Nevada   corporation   (collectively,   the   "Consolidated
Companies"),  hereby jointly and severally  promise to pay to the order of Doral
18,  LLC, a Cayman  Islands  limited  liability  company or  registered  assigns
("Holder")  the  principal  amount of One Million Four Hundred  Thousand  United
States Dollars  ($1,400,000) on or before March 31, 2004 (the "Maturity  Date"),
and to pay  interest  on the unpaid  principal  balance  hereof,  at the rate of
Eleven Percent (11%) per annum from January 1, 2003 (the "Interest  Commencement
Date") until the unpaid  principal  balance becomes due and payable,  whether at
maturity,  upon  acceleration  or upon  prepayment in accordance  with the terms
hereof.  Interest on unpaid  principal  under this Amended and Restated  Secured
Term Note (this  "Note")  shall be computed  on the basis of a 365-day  year and
actual days  elapsed  and shall be payable as provided in Section 2 hereof.  Any
amount of this Note which is not paid when due shall bear  interest  at the rate
of 18% per annum  (prorated  for partial  months)  (rather  than at the rate set
forth above) until the same is paid in full (the amount of such interest payment
may be referred to in this Note as "Default Interest").

         1.  Payment Terms.

             A. Method of Payment of  Principal  and  Interest.  All payments of
principal  and  interest  on this  Note (to the  extent  such  principal  is not
converted into common shares of the Company  ("Common Stock") in accordance with
the terms hereof), shall be made in lawful money of the United States of America
by wire transfer of immediately  available funds as follows:  American  National
Bank and Trust, 120 South LaSalle Street, Chicago, IL 60603, ABA 071000770,  FBO
Doral 18, LLC, A/C  5330299586  or to such other account as Holder may from time
to time  designate by not less than 10 days prior  written  notice in accordance
with the provisions of this Note. Whenever any amount expressed to be due by the
terms of this Note is due on any day  which is not a  Business  Day (as  defined
below),  the same  shall  instead be due on the next  succeeding  day which is a
Business Day and, in the case of any interest payment date which is not the date
on which this Note is paid in full,  the extension of the due date thereof shall
not be taken into account for purposes of determining the amount of interest due
on such date. For purposes of this Note, "Business Day" shall mean any day other
than a  Saturday,  Sunday  or a day on  which  commercial  banks  in the City of
Chicago, Illinois are authorized or required by law or executive order to remain
closed.

             B. Prepayments.  This principal amount owing under this Note may be
prepaid  at any time by the  Consolidated  Companies  but shall be  subject to a
prepayment  penalty  equal  to 5% of the  principal  amount  of the  Note  being
prepaid. Any prepayment of principal by the Consolidated Companies shall be made
in cash and shall be applied as follows:  first,  against outstanding  principal
with  respect to which  Conversion  Rights (as  defined  below) have not accrued

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(thereby reducing, or eliminating, the amount of principal with respect to which
the next accruing Conversion Right will accrue), and second, against amounts due
and  payable  with  respect to which  Conversion  Rights have  accrued  (against
amounts with respect to such Conversion Rights accrued earlier first). By way of
illustration,  if the Company does not make any prepayments  until June 15, 2003
and makes a $294,000  prepayment  on that  date,  the  Conversion  Rights of the
Holder that accrued on March 1, 2003 and June 1, 2003 shall be  unaffected;  the
principal amount with respect to which  Conversion  Rights have not accrued will
be reduced from $840,000 to $560,000,  and no Conversion  Rights shall accrue on
September 1, 2003. By way of a second illustration, if the Company does not make
any prepayments until June 15, 2003, the Holder exercises no accrued  Conversion
Rights,  and the  Company  makes a  $1,176,000  prepayment  on  that  date,  the
principal amount with respect to which  Conversion  Rights have not accrued will
be reduced from $840,000 to zero; the principal amount underlying the Conversion
Right that accrued on March 1, 2003 will be deemed to have been prepaid; and the
Conversion Right that accrued on June 1, 2003 shall be unaffected.

             C.  Payment of  Interest.  The Holder  confirms and agrees that all
interest  accruing under this Note prior to the Interest  Commencement  Date was
paid in full prior to the date first set forth above. Beginning in January 2003,
accrued  interest  shall be paid  monthly  in cash in arrears  within  three (3)
Business  Days of the last day of the calendar  month during which such interest
accrued.

         2.  Conversion.

             A.  Certain  Defined  Terms.  The  following  terms  shall have the
following meanings in the Section 2:

                 (i) "Conversion Price" means the lower of (A) $1.00 and (B) the
product of .70 multiplied by the Market Price.

                 (ii) "converted at the "Conversion  Rate" means being converted
into a number  of  shares  of  Common  Stock  equal to the  quotient  of (a) the
principal amount being converted, divided by (b) the Conversion Price.

                 (iii)  "Conversion  Right"  means a  right  to  convert  unpaid
principal amount into Common Stock that has accrued pursuant to Section 2(B) but
has not been exercised.

                 (iv) "Market  Price" means the average of the closing  price of
the Common Stock (as reported by Bloomberg) for the five (5) trading days ending
on the trading day  immediately  preceding  the date with  respect to which such
determination is made.

                 (v) "New  Registration  Statement"  shall have the  meaning set
forth  in the  Registration  Rights  Agreement  dated as of even  date  herewith
between the Company and the Holder.

                 (v)  "Registration  Date"  shall be the  date  that is six days
after the date the New Registration Statement becomes effective.

             B.  Optional Conversion Right.

                 (i) Subject to Section  1(B),  there shall accrue to the Holder
the right, but not the obligation,  upon timely written notice to the Company in
compliance  with  Section  2(C),  to convert  into shares of Common Stock at the
Conversion  Rate determined as of March 1, 2003 an amount of principal up to the
amount by which the outstanding  principal amount under this Note as of March 1,
2003 exceeds  $1,120,000.  The Conversion Right under this Section 2(B)(i) shall
accrue  on March 1, 2003 and  shall  expire  on 5:00  p.m.  New York Time on the
Maturity Date.

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                 (ii) Subject to Section 1(B),  there shall accrue to the Holder
the right, but not the obligation,  upon timely written notice to the Company in
compliance  with  Section  2(C),  to convert  into shares of Common Stock at the
Conversion  Rate  determined as of June 1, 2003 an amount of principal up to the
amount by which the outstanding  principal  amount under this Note as of June 1,
2003 exceeds the sum of (a) $840,000,  and (b) the principal  amount  subject to
all  previously  accrued  Conversion  Rights.  The  Conversion  Right under this
Section  2(B)(ii) shall accrue on June 1, 2003 and shall expire on 5:00 p.m. New
York Time on the Maturity Date.

                 (iii) Subject to Section 1(B), there shall accrue to the Holder
the right, but not the obligation,  upon timely written notice to the Company in
compliance  with  Section  2(C),  to convert  into shares of Common Stock at the
Conversion  Rate determined as of September 1, 2003 an amount of principal up to
the  amount by which the  outstanding  principal  amount  under  this Note as of
September 1, 2003 exceeds the sum of (a) $560,000,  and (b) the principal amount
subject to all previously  accrued Conversion Rights. The Conversion Right under
this  Section  2(B)(iii)  shall  accrue on September 1, 2003 and shall expire on
5:00 p.m. New York Time on the Maturity Date.

                 (iv) Subject to Section 1(B),  there shall accrue to the Holder
the right, but not the obligation,  upon timely written notice to the Company in
compliance  with  Section  2(C),  to convert  into shares of Common Stock at the
Conversion  Rate  determined as of December 1, 2003 an amount of principal up to
the  amount by which the  outstanding  principal  amount  under  this Note as of
December 1, 2003 exceeds the sum of (a) $280,000  and (b) the  principal  amount
subject to all previously  accrued Conversion Rights. The Conversion Right under
this Section  2(B)(iv) shall accrue on December 1, 2003 and shall expire on 5:00
p.m. New York Time on the Maturity Date.

                 (v) Subject to Section  1(B),  there shall accrue to the Holder
the right, but not the obligation,  upon timely written notice to the Company in
compliance  with  Section  2(C),  to convert  into shares of Common Stock at the
Conversion  Rate determined as of March 1, 2004 an amount of principal up to the
amount by which the outstanding  principal amount under this Note as of March 1,
2004 exceeds the principal amount subject to all previously  accrued  Conversion
Rights. The Conversion Right under this Section 2(B)(v) shall accrue on March 1,
2004 and shall expire on 5:00 p.m. New York Time on the Maturity Date.

Notwithstanding  anything to the contrary in this Section 2(B), if on the date a
Conversion  Right would  otherwise  accrue under any subsection of Section 2(B),
the New  Registration  Statement is not yet  effective,  the date the Conversion
Rate is determined  for such  Conversion  Right shall be the  Registration  Date
rather than the date such Conversion Right accrued.

             C. Mechanics of Conversion. The exercise of Conversion Rights under
this Note shall be conducted in the following manner:

                 (i)  Holder's  Delivery  Requirements.  To exercise any accrued
Conversion  Rights on any date (an  "Exchange  Date"),  Holder  hereof shall (A)
transmit by facsimile (or otherwise  deliver),  for receipt on or prior to 11:59
p.m.,  New  York  Time  on such  date,  a copy of a  fully  executed  Notice  of
Conversion in the form attached  hereto as Exhibit A (a "Conversion  Notice") to
the Company.

                 (ii) Company's Response.  Upon receipt by the Company of a copy
of a Conversion  Notice,  the Company  shall as soon as  practicable,  but in no
event later than one (1) Business Day after receipt of such  Conversion  Notice,
send, via  facsimile,  a confirmation  of receipt of such  Conversion  Notice to

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<PAGE>

Holder and the transfer  agent of the Company,  as the same may be designated by
the Company from time to time (the "Transfer  Agent"),  which confirmation shall
constitute  an  instruction  to the Transfer  Agent to process  such  Conversion
Notice in accordance  with the terms hereof.  Upon receipt by the Transfer Agent
of a copy of the executed  Conversion Notice, the Transfer Agent shall, no later
than the 2nd trading day following  the date of the  Company's  receipt by it of
the Conversion Notice, (A) issue and surrender to a common carrier for overnight
delivery  to  Holder's  brokerage  account  #8502712428  (the  "Doral  Brokerage
Account") with ABN Amro (the "Broker"), a certificate, registered in the name of
Holder,  for the  number  of shares of  Common  Stock to which  Holder  shall be
entitled,  or (B) in the  event  the  Transfer  Agent  is  participating  in The
Depository  Trust Company ("DTC") Fast Automated  Securities  Transfer  Program,
upon the  request of Holder,  credit such  aggregate  number of shares of Common
Stock to which Holder shall be entitled to the Broker's balance account with DTC
through its Deposit Withdrawal Agent Commission system to be further credited to
the Doral Brokerage Account by the Broker. Delivery of shares in accordance with
Section  2(C)(ii)  shall be considered  payment in full of the principal  amount
designated for conversion in the Conversion  Notice (such amount the "Conversion
Amount").

                 (iii)  Dispute  Resolution.  In the case of a dispute as to the
determination  of the Conversion Price or the Conversion Rate, the Company shall
instruct  the  Transfer  Agent to issue to Holder the number of shares of Common
Stock that is not  disputed  and shall  submit the  disputed  determinations  to
Holder  via  facsimile  within  one (1)  Business  Day of  receipt  of  Holder's
Conversion  Notice.  If Holder  and the  Company  are  unable to agree  upon the
determination of the Conversion Price or Conversion Rate within one (1) Business
Day of such disputed  determination or arithmetic calculation being submitted to
Holder,  then the Company shall within one (1) Business Day submit via facsimile
the disputed determination to an independent, reputable investment bank selected
by the Company and approved by Holder or to the Company's  independent,  outside
accountant.  The Company shall cause the investment bank or the  accountant,  as
the case may be, to perform the  determinations  or calculations  and notify the
Company  and Holder of the  results no later than the third  (3rd) day after the
date it receives the disputed  determinations  or calculations.  Such investment
bank's or accountant's  determination or calculation,  as the case may be, shall
be binding upon all parties absent manifest error.

                 (iv) Record Holder.  The person or persons  entitled to receive
the shares of Common Stock issuable upon exercise of Conversion  Rights shall be
treated  for all  purposes  as the record  holder or  holders of such  shares of
Common Stock on the Exchange Date.

                 (v)  Book-Entry.  Upon exercise of any  accumulated  Conversion
Rights  hereunder  in  accordance  with the terms  hereof,  Holder  shall not be
required  to  physically  surrender  this Note to the  Company.  Holder  and the
Company shall maintain  records showing the respective  Conversion  Amounts that
have been  accumulated,  the  Conversion  Rates  applicable  to such  Conversion
Amounts and the Conversion  Amounts exchanged from time to time and the dates of
such exchanges or shall use such other method, reasonably satisfactory to Holder
and the Company,  so as not to require physical surrender of this Note upon each
such exchange.  In the event of any dispute or discrepancy,  such records of the
Company shall be controlling and determinative in the absence of manifest error.

                 (vi) Taxes.  The Company  shall pay any and all transfer  taxes
(but not income  taxes) that may be payable  with  respect to the  issuance  and
delivery of Common Stock upon the exercise of Conversion Rights under this Note.

                 (vii)  Fractional  Shares.  The  Company  shall  not  issue any
fraction of a share of Common Stock upon any exercise of Conversion  Rights. All
shares of Common Stock (including  fractions  thereof) issuable upon exercise of
any  Conversion  Rights by a holder  thereof shall be aggregated for purposes of
determining whether the exchange would result in the issuance of a fraction of a
share of Common Stock. If, after the  aforementioned  aggregation,  the issuance

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<PAGE>

would  result in the  issuance  of a fraction  of a share of Common  Stock,  the
Company shall round such fraction of a share of Common Stock up (if greater than
or equal to .50) or down (if less than .50)to the nearest whole share.

             D.  Limitation on Beneficial  Ownership.  The Holder shall not have
the right to exercise  any  Conversion  Right  pursuant  to Section  2(C) to the
extent that after giving  effect to such  exercise  Holder  (together  with such
person's   affiliates)  would  beneficially  own  in  excess  of  4.99%  of  the
outstanding shares of the Common Stock following such exercise.  For purposes of
the foregoing  sentence,  the definitions of "person" and "affiliate" shall have
the meanings  applicable to calculations in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the number
and percentage of shares of Common Stock  beneficially owned by a person and its
affiliates  or acquired by a person and its  affiliates  shall be  calculated in
accordance  with Section  13(d) of the Exchange  Act,  except that the number of
shares of Common  Stock  beneficially  owned by a person and its  affiliates  or
acquired by a person and its  affiliates  shall  include the number of shares of
Common Stock  issuable  upon the exercise of  Conversion  Rights under this Note
with  respect to which the  determination  of such  sentence is being made,  but
shall  exclude the number of shares of Common Stock which would be issuable upon
(i) exercise of any unexercised  Conversion  Rights under this Note beneficially
owned by such person and its affiliates and (ii) exercise of the  unexercised or
unconverted portion of any other securities of the Company  (including,  without
limitation,  any  warrants)  subject to a  limitation  on  exchange  or exercise
analogous to the limitation  contained herein  beneficially owned by such person
and its affiliates.  Notwithstanding  anything to the contrary contained herein,
each Conversion  Notice shall constitute a representation  by Holder that, after
giving  effect to such  Conversion  Notice,  to the best of Holder's  knowledge,
Holder will not  beneficially own (as determined in accordance with this Section
2(E)) a number of shares of Common  Stock in excess of 4.99% of the  outstanding
shares of Common Stock (1) as reflected in the Company's most recent shareholder
list, which list shall be provided to Holder by the Company on a quarterly basis
and  certified  by the  Company as true,  complete  and  accurate as of the date
thereof,  or (2) as  reflected  in the  Company's  most recent Form 10-Q or Form
10-K,  as the case may be, or more recent public press release by the Company or
other  notice by the  Company  to Holder  setting  forth the number of shares of
Common Stock outstanding, but after giving effect to conversions of rights under
this Note (including the exercise with respect this determination is being made)
by Holder since the date as of which such number of outstanding shares of Common
Stock was disclosed.

             E.  Reservation  of  Shares.  The  Company  shall,  so  long as any
principal  amount of the Note is outstanding,  reserve and keep available out of
its  authorized and unissued  Common Stock,  solely for the purpose of effecting
the  exercise of  Conversion  Rights,  such number of shares of Common  Stock as
shall from time to time be sufficient to effect the exercise of all  accumulated
Conversion Rights.

         3.  Anti-Dilution.

             A. Certain Definitions. For purposes of this Section, the following
terms shall have the following meanings:

                 (i)   "Exchangeable   Securities"   shall  mean   evidences  of
indebtedness,  shares (including, without limitation, Preferred Shares) of stock
or other  securities which are  exchangeable  into or exchangeable  for, with or
without  payment of additional  consideration,  shares of Common  Stock,  either
immediately  or upon the  arrival  of a  specified  date or the  happening  of a
specified event.

                 (ii) "Preferred  Shares," as applied to any person,  shall mean
shares of such person,  which shall be entitled to  preference  or priority over
any other shares of such person in respect of either the payment of dividends or
the distribution of assets upon liquidation.

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<PAGE>

                 (iii) "Stock Purchase Rights" shall mean any warrants,  options
or other rights to subscribe  for,  purchase or otherwise  acquire any shares of
Common Stock or any  Exchangeable  Securities,  either  immediately  or upon the
arrival of a specified date or the happening of a specified event.

              B. Stock Dividends, Subdivisions and Combinations. If and whenever
the Company  subsequent  to the date hereof:  (A) declares a dividend  upon,  or
makes any  distribution  in respect  of, any of its  capital  stock,  payable in
shares of Common Stock,  Exchangeable  Securities or Stock Purchase Rights;  (B)
subdivides its outstanding shares of Common Stock into a larger number of shares
of Common Stock, or (C) combines its  outstanding  shares of Common Stock into a
smaller number of shares of Common Stock,  then the Conversion  Price applicable
to all accumulated Conversion Amounts shall be adjusted to that price determined
by multiplying the Conversion Price in effect immediately prior to such event by
a fraction (A) the  numerator of which shall be the total number of  outstanding
shares of Common Stock  immediately prior to such event, and (B) the denominator
of which  shall be the total  number  of  outstanding  shares  of  Common  Stock
immediately after such event.

              C.  Reorganization,  Reclassification  or  Recapitalization of the
Company.  In the  event  that the  Company  effects  (i) any  reorganization  or
reclassification or  recapitalization of the capital stock of the Company,  (ii)
any  consolidation  or merger of the Company with or into another person,  (iii)
the sale,  transfer or other disposition of the property,  assets or business of
the  Company as an entirety  or  substantially  as an entirety or (iv) any other
transaction  or event as a  result  of which  holders  of  Common  Stock  become
entitled  to receive  any shares of stock or other  securities  and/or  property
(including,  without  limitation,  cash, but excluding any cash dividend that is
paid out of the earnings or surplus of the Company legally  available  therefor)
with respect to or in exchange for the Common Stock,  there shall  thereafter be
deliverable to Holder upon the exercise of any Conversion  Rights or any portion
thereof (in lieu of or in addition to the Common Stock theretofore  deliverable,
as appropriate) the highest number of shares of stock or other securities and/or
the greatest amount of property (including, without limitation, cash) to receive
which  Holder  would have been  entitled  had the Holder  owned the Common Stock
attributable to the accumulated  Conversion  Rights at the time such transaction
or event occurred.

              D.  Notice of  Adjustments  to  Conversion  Price.  As promptly as
practicable  after the occurrence of any event  requiring any  adjustment  under
this Section 3 to the  Conversion  Price (or to the number or kind of securities
or other  property  deliverable  upon the  exercise  of  accumulated  Conversion
Rights,  the Company shall,  at its expense,  mail to Holder a certificate of an
officer of the Company setting forth in reasonable  detail the events  requiring
the  adjustment  and the  method by which such  adjustment  was  calculated  and
specifying  the  adjusted  Conversion  Price and the  number of shares of Common
Stock  issuable  upon  exercise of  accumulated  Conversion  Rights after giving
effect to such adjustment.

         4. Security for Note. Notwithstanding the termination of the $7,000,000
Asset Backed  Exchangeable  Term Note dated  December  15,  2000,  as amended on
August 31,  2001 (the  "Initial  Note") and the  termination  of the  $2,000,000
Secured Term Note dated December 28, 2001 (the "Prior Note"), this Note shall be
secured by the Security  Agreement dated December 15, 2000, as amended on August
31, 2000,  between Altair  Nanomaterials,  Inc. and Doral 18, LLC (including the
Intellectual  Property Security  Agreement  attached thereto as Exhibit A as the
same was  amended on August  31,  2000) (the  "Security  Agreement"),  the Stock
Pledge Agreement dated December 15, 2000 between Mineral Recovery Systems,  Inc.
and  Doral  18,  LLC  as  amended  to  date  (the  "Nanomaterials  Stock  Pledge
Agreement")  and the Stock  Pledge  Agreement  dated  December  15, 2000 between
Altair  Nanotechnologies  Inc. and Doral 18, LLC, as amended to date,  (the "MRS
Stock  Pledge  Agreement")  to the same  extent  and in the same  manner  as the
Initial Note and the Prior Note and all  references  to the Initial Note and the
Prior Note in the Security  Agreement,  the Nanomaterials Stock Pledge Agreement
and the MRS Stock Pledge Agreement shall be deemed to refer to this Note.

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<PAGE>

         5.  Defaults and Remedies.

             A.  Events of  Default.  An "Event of  Default"  is (i) default  in
payment of principal, interest or Default Interest on this Note when and as due;
(ii) failure by the Consolidated  Companies for thirty (30) days after notice to
it to comply with any other material  provision of this Note;  (iii) any default
under or acceleration prior to maturity of any mortgage, indenture or instrument
under which  there may be issued or by which  there may be secured or  evidenced
any  indebtedness  for money  borrowed by the Company or for money  borrowed the
repayment of which is guaranteed by the Company,  whether such  indebtedness  or
guarantee now exists or shall be created  hereafter in principal  amount greater
than $200,000;  (iv) if any representation made by the Consolidated Companies in
the Amendment  Agreement was untrue as of the date it was made;  (v) any failure
to observe or perform any of the covenants set forth in the Amendment  Agreement
which is not remedied by the Consolidated  Companies within 30 days after notice
thereof to the  Company by Holder;  (vi) any event  occurs or  condition  exists
which is  specified as an event of default  under the Security  Agreement or the
Stock Pledge Agreement or the failure to observe or perform any of the covenants
set forth in the Security Agreement, the Nanomaterials Stock Pledge Agreement or
the MRS Stock Pledge  Agreement which is not remedied within the applicable cure
period,  if any; or (vii) if any of the  Consolidated  Companies  pursuant to or
within the meaning of any  Bankruptcy  Law (as defined  below):  (A) commences a
voluntary  case;  (B) consents to the entry of an order for relief against it in
an involuntary  case; (C) consents to the appointment of a Custodian (as defined
below)  of it or for  all or  substantially  all of its  property;  (D)  makes a
general  assignment for the benefit of its  creditors;  or (E) admits in writing
that it is  generally  unable to pay its debts as the same become  due;  (vii) a
court of competent  jurisdiction  enters an order or decree under any Bankruptcy
Law that:  (A) is for relief  against any of the  Consolidated  Companies  in an
involuntary case; (B) appoints a Custodian for any of the Consolidated Companies
or for  all or  substantially  all  of  their  properties;  or  (C)  orders  the
liquidation of any of the Consolidated  Companies or any subsidiary thereof, and
the order or decree  remains  unstayed  and in effect for ninety  (90) days;  or
(viii) a failure by the Company to cause the New  Registration  Statement  to be
effective  within 180 days of December 16, 2002. The term "Bankruptcy Law" means
the Bankruptcy and Insolvency Act (Canada), the Companies' Creditors Arrangement
Act (Canada), Title 11, U.S. Code, or any similar Federal,  Provincial. or State
Law for the relief of debtors. The term "Custodian" means any receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Law.

              B.  Remedies.  If an Event of Default  occurs  and is  continuing,
Holder may notify the Company that it is declaring  all of this Note,  including
any interest and Default  Interest and other amounts due or to become due, to be
due and  payable  immediately,  except  that in the case of an Event of  Default
arising from events  described in clauses (vi) or (vii),  this Note shall become
due and payable without further action or notice by Holder.

         6.  Miscellaneous Provisions.

             A.  Amendment.  This  Note and  any  provision  hereof  may only be
amended by an instrument  in writing  signed by the  Consolidated  Companies (or
only the Company) and Holder. The term "Note" and all reference thereto, as used
throughout this instrument,  shall mean this instrument as originally  executed,
or if later amended or supplemented, then as so amended or supplemented.

              B.  Termination of Previous Note.  Upon the execution of this Note
by Holder,  the Prior Note shall  immediately  and  automatically,  without  any
action on the part of any  person,  be deemed to be  superseded,  canceled,  and
terminated in full.

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<PAGE>

              C. Lost or Stolen  Note.  Upon  receipt by the Company of evidence
satisfactory to the Company of the loss, theft, destruction or mutilation of any
Note,  and, in the case of loss,  theft or  destruction,  of an  indemnification
undertaking  by Holder to the  Company in a form  reasonably  acceptable  to the
Company and, in the case of mutilation,  upon surrender and  cancellation of the
Note, the  Consolidated  Companies  shall execute and deliver a new Note of like
tenor and date.

              D. Payment of  Collection,  Enforcement  and Other Costs.  If: (i)
this Note is placed in the hands of an attorney for collection or enforcement or
is collected or enforced  through any legal  proceeding;  or (ii) an attorney is
retained to  represent  Holder of this Note in any  bankruptcy,  reorganization,
receivership or other  proceedings  affecting  creditors' rights and involving a
claim  under  this Note;  then the  Company  shall pay to Holder all  reasonable
attorneys'  fees,  costs and  expenses  incurred  in  connection  therewith,  in
addition to all other amounts due hereunder.

              E.  Cancellation.  After all principal and accrued interest at any
time owed on this Note has been paid in full, this Note shall  automatically  be
deemed canceled,  shall be surrendered to the Company for cancellation and shall
not be reissued.

              F. Note  Exchangeable  for Different  Denominations.  This Note is
exchangeable, upon the surrender hereof by Holder at the principal office of the
Company,  for a new Note or Notes (in  principal  amounts of at least  $100,000)
containing the same terms and conditions and  representing  in the aggregate the
principal  amount  of this  Note,  and each such new Note  will  represent  such
portion of such principal  amount as is designated by Holder at the time of such
surrender.  The "Interest  Commencement Date" shall not change regardless of the
number of times a new Note shall be issued.

              G.  Waiver  of  Notice.  To  the  extent  permitted  by  law,  the
Consolidated  Companies  hereby  waive  demand,  notice,  protest  and all other
demands and notices in connection  with the delivery,  acceptance,  performance,
default or enforcement of this Note.

              H.  Governing  Law.  This Note shall be construed  and enforced in
accordance  with,  and all  questions  concerning  the  construction,  validity,
interpretation and performance of this Note shall be governed by the laws of the
State of  Illinois,  without  giving  effect  to  provisions  thereof  regarding
conflict of laws.

              I.  Remedies.   The  remedies  provided  in  this  Note  shall  be
cumulative and in addition to all other remedies  available  under this Note, at
law or in  equity  (including  a decree of  specific  performance  and/or  other
injunctive  relief),  no  remedy  contained  herein  shall be deemed a waiver of
compliance  with the  provisions  giving rise to such remedy and nothing  herein
shall  limit  Holder's  right  to  pursue  actual  damages  for any  failure  by
Consolidated Companies to comply with the terms of this Note.

              J.  Construction.  This Note shall be deemed to be jointly drafted
by the Company and Holder and shall not be  construed  against any person as the
drafter hereof.

              K. Failure or  Indulgence  Not Waiver.  No failure or delay on the
part of this Note in the  exercise of any power,  right or  privilege  hereunder
shall operate as a waiver thereof,  nor shall any single or partial  exercise of
any such power, right or privilege preclude other or further exercise thereof or
of any other right, power or privilege.

              L.  Restrictions on Transfer.  Holder, by acceptance of this Note,
agrees that it will not, absent any effective  registration  statement under the
1933 Act and any applicable  state  securities  acts covering the disposition of
this Note or the Common  Stock  issued in  connection  with this  Note,  sell or

                                       8
<PAGE>

transfer this Note or such shares of Common Stock,  as the case may be,  without
first providing the Company with any opinion of counsel reasonably acceptable to
the Company  (which may be counsel for the Company) to the effect that such sale
or  transfer  will be  exempt  from  registration  under  the  1933  Act and any
applicable  state  securities  acts.  Holder  consents to the  Company  making a
notation on its records or giving appropriate instructions to any transfer agent
in order to implement such restrictions on transferability.

              M. Transfer  Restriction  Legend.  Each  certificate,  if any, for
shares of Common Stock issued in connection with this Note shall,  unless at the
time of such issuance the re-sale of such shares of Common Stock, are registered
under the 1933 Act and any applicable state  securities acts, bear a legend,  in
addition to other  legends as may be required by applicable  securities  laws of
the  Province  of  Ontario,  in  substantially  the  following  form on the face
thereof:

                       THESE  SECURITIES HAVE NOT BEEN REGISTERED  UNDER THE
              SECURITIES ACT OF 1933 OR ANY APPLICABLE STATE SECURITIES ACTS
              AND MAY NOT BE  TRANSFERRED  OR  RESOLD  WITHOUT  REGISTRATION
              UNDER SUCH ACTS,  UNLESS IN THE OPINION OF COUNSEL  REASONABLY
              ACCEPTABLE  TO THE  CORPORATION  (WHICH  MAY BE COUNSEL TO THE
              CORPORATION) AN EXEMPTION FROM REGISTRATION UNDER SUCH ACTS IS
              AVAILABLE.

         Any certificate  issued at any time in exchange or substitution for any
certificate bearing such legend (except a new certificate issued upon completion
of a  public  distribution  under a  registration  statement  of the  securities
represented  thereby)  shall also bear such  legend  unless,  in the  opinion of
counsel to the Company, the securities represented thereby may be transferred as
contemplated by such holder without  violation of the registration  requirements
of the 1933 Act and any applicable state securities acts.

              N. Notices. All notices and other communications required under or
contemplated by this Note shall be provided in the manner, and be subject to the
other terms of, Section 7(G) of the Amendment Agreement.

              O. Judgment Currency.

                 (i) If, for the  purpose of  obtaining  or  enforcing  judgment
against the Consolidated Companies in any court in any jurisdiction,  it becomes
necessary  to  convert  into any  other  currency  (such  other  currency  being
hereinafter  in this Section 6(O)  referred to as the  "Judgment  Currency")  an
amount due under any this Note in any currency (the "Obligation Currency") other
than the Judgment Currency, the conversion shall be made at the rate of exchange
prevailing  on the Business  Day  immediately  preceding  (A) the date of actual
payment of the amount  due, in the case of any  proceeding  in the courts of the
Province  of Ontario or in the courts of any other  jurisdiction  that will give
effect to such conversion  being made on such date, or (B) the date on which the
judgment  is given,  in the case of any  proceeding  in the  courts of any other
jurisdiction  (the  applicable date as of which such conversion is made pursuant
to this Section 6(O) being  hereinafter  in this Section 6(O) referred to as the
"Judgment Conversion Date").

                 (ii) If,  in the  case of any  proceeding  in the  court of any
jurisdiction  referred to in Section  6(O)(i),  there is a change in the rate of
exchange  prevailing between the Judgment Conversion Date and the date of actual
receipt of the amount  due in  immediately  available  funds,  the  Consolidated
Companies  shall  pay such  additional  amount  (if any,  but in any event not a
lesser amount) as may be necessary to ensure that the amount  actually  received
in the Judgment Currency,  when converted at the rate of exchange  prevailing on

                                       9
<PAGE>

the date of payment,  will produce the amount of the  Obligation  Currency which
could have been purchased with the amount of the Judgment Currency stipulated in
the  judgment  or  judicial  order at the  rate of  exchange  prevailing  on the
Judgment  Conversion Date. Any amount due from the Consolidated  Companies under
Section  6(O)(ii)  shall be due as a separate  debt and shall not be affected by
judgment  being  obtained for any other  amounts due under or in respect of this
Note.  The term  "rate of  exchange"  in this  Section  6(O)  means  the rate of
exchange at which  Holder  would,  on the  relevant  date at or about 12:00 noon
(Toronto time), be prepared to sell Canadian Dollars or US Dollars,  as the case
may be, against the Judgment Currency.

              P.  Interest  Act.  For  purposes  of  disclosure  pursuant to the
Interest Act  (Canada),  the annual rates of interest or fees to which the rates
of interest or fees provided in this Note (and stated herein as applicable to be
computed on the basis of a 365 day year or any other  period of time less than a
calendar  year) are  equivalent  are the rates so  determined  multiplied by the
actual number of days in the applicable calendar year and divided by 365 or such
other period of time.

              Q. Criminal Rates of Interest. If any provision of this Note would
obligate  the  Consolidated  Companies  to make any payment of interest or other
amount payable to any Holder in an amount or calculated at a rate which would be
prohibited  by law or would  result in a receipt by that Holder of interest at a
criminal rate (as such terms are  construed  under the Criminal Code (Canada) or
in  such  other  similar  applicable  legislation)  then,  notwithstanding  such
provision,  such  amount or rate  shall be deemed  to have  been  adjusted  with
retroactive  effect to the maximum  amount or rate of interest,  as the case may
be, as would  not be so  prohibited  by law or so  result  in a receipt  by that
Holder of interest at a criminal rate,  such  adjustment to be effected,  to the
extent  necessary,  as follows:  (i) firstly,  by reducing the amount or rate of
interest  required  to be paid to  Holder  under  this  Section  6(Q);  and (ii)
thereafter,  by  reducing  any fees,  commissions,  premiums  and other  amounts
required to be paid to Holder  which would  constitute  interest for purposes of
Section 347 of the Criminal Code  (Canada) or in such other  similar  applicable
legislation.  Notwithstanding  the  foregoing,  and after  giving  effect to all
adjustments contemplated thereby, if any Holder shall have received an amount in
excess of the maximum permitted by that section of the Criminal Code (Canada) or
in such  other  similar  applicable  legislation,  then  the  Company  shall  be
entitled, by notice in writing to Holder, to obtain reimbursement from Holder in
an amount equal to such  excess,  and pending  such  reimbursement,  such amount
shall be deemed to be an amount payable by Holder to the Consolidated Companies.
Any  amount  or rate of  interest  referred  to in this  Section  6(Q)  shall be
determined  in  accordance  with  generally  accepted  actuarial  practices  and
principles as an effective annual rate of interest over the term that the Note.

               (Intentionally left blank; signature page follows)

                                       10
<PAGE>

         IN WITNESS  WHEREOF,  the  Consolidated  Parties and Lender have caused
this Amended and Restated Secured Term Note to be duly executed and delivered as
of the 21st day of November, 2002.

The "Consolidated Parties"

         ALTAIR NANOTECHNOLOGIES, INC.

         By:  /s/ William P. Long
              ----------------------------------------
         Its:     CEO
              ----------------------------------------

         MINERAL RECOVERY SYSTEMS, INC.

         By: /s/ William P. Long
             -----------------------------------------
         Its:    CEO
             -----------------------------------------

         FINE GOLD RECOVERY SYSTEMS, INC.

         By: /s/ William P. Long
             ----------------------------------------
         Its:    CEO
             ----------------------------------------

         ALTAIR NANOMATERIALS, INC.

         By: /s/ Edward Dickinson
             -----------------------------------------
         Its:    Secretary/Treasurer
             -----------------------------------------

"Lender"

         Doral 18, LLC

         By: /s/ David White
             ------------------------------------------
                 David White, authorized signatory

                                       11
<PAGE>

                                    EXHIBIT A

                                CONVERSION NOTICE

Reference is made to the $1,400,000 Amended and Restated Secured Term Note dated
November 21, 2002 issued by Altair International,  Inc. and certain subsidiaries
of Altair  International  Inc. (the "Amended Note").  Capitalized  terms used in
this Conversion  Notice shall have the meaning set forth in the Amended Note. In
accordance with and pursuant to the Amended Note, the undersigned  hereby elects
to convert the Conversion Amount(s) designated below into shares of Common Stock
at the Conversion Rate applicable thereto:
<TABLE>
<CAPTION>

<S>                          <C>                            <C>                       <C>
---------------------------- ------------------------------ ------------------------- -------------------------
     Principal Amount               Date Conversion                Applicable          Shares of Common Stock
                                     Right Accrued              Conversion Price      Issuable upon Conversion
---------------------------- ------------------------------ ------------------------- -------------------------

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

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

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

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

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

---------------------------- ------------------------------ ------------------------- -------------------------
</TABLE>

Acknowledged and Agreed to:

         Altair Nanotechnologies Inc.

         By:__________________________
         Its:_________________________

         Doral 18, LLC

         By:__________________________
         Its:_________________________

                                       12THE SECURITIES  REPRESENTED BY THIS WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE
SECURITIES ACT OF 1933, AS AMENDED,  OR APPLICABLE  STATE SECURITIES LAWS AND NO
PROSPECTUS HAS BEEN FILED UNDER ANY CANADIAN SECURITIES LAWS IN RESPECT THERETO.
THE  SECURITIES  HAVE BEEN  ACQUIRED FOR  INVESTMENT  AND MAY NOT BE OFFERED FOR
SALE,  SOLD,  TRANSFERRED  OR ASSIGNED IN THE ABSENCE OF SUCH A PROSPECTUS OR AN
EFFECTIVE  REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF
1933, AS AMENDED,  OR APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL
IN FORM AND SUBSTANCE  REASONABLY  ACCEPTABLE TO THE ISSUER THAT REGISTRATION IS
NOT REQUIRED UNDER SAID ACT OR APPLICABLE  STATE  SECURITIES LAWS OR UNLESS SOLD
PURSUANT TO RULE 144 UNDER SAID ACT. THE SECURITIES  REPRESENTED  HEREBY MAY NOT
BE OFFERED FOR SALE,  SOLD OR TRANSFERRED TO ANY PERSON RESIDENT IN THE PROVINCE
OF ONTARIO WITHIN ONE YEAR OF THE DATE OF ISSUANCE HEREOF. ANY SUCH OFFER, SALE,
ASSIGNMENT OR TRANSFER  MUST ALSO COMPLY WITH THE  APPLICABLE  STATE  SECURITIES
LAWS.  NOTWITHSTANDING THE FOREGOING, THIS SECURITY MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT.

                          ALTAIR NANOTECHNOLOGIES, INC.

                        WARRANT TO PURCHASE COMMON STOCK
                           (NOTE AMENDMENT AGREEMENT)

Warrant No.:                                          Number of Shares: 750,000
Date of Issuance:  November 21, 2002

         ALTAIR NANOTECHNOLOGIES,  INC., a Canadian corporation (the "Company"),
hereby certifies that, for Ten United States Dollars ($10.00) and other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged,  DORAL 18, LLC, a Cayman Islands  limited  liability  company (the
"Holder"),  the registered holder hereof or its permitted assigns,  is entitled,
subject  to the  terms  set forth  below,  to  purchase  from the  Company  upon
surrender of this Warrant, at any time or times on or after the date hereof, but
not after 11:59 P.M. Eastern Time on the appropriate Expiration Date (as defined
herein),  750,000  fully paid  nonassessable  shares of Common Stock (as defined
herein) of the Company (the  "Warrant  Shares") at the purchase  price per share
provided in SECTION 1(b) below. Notwithstanding the foregoing, in no event shall
the holder be entitled to exercise  this Warrant to the extent that after giving
effect to such exercise  such holder  (together  with such person's  affiliates)
would  beneficially  own in  excess  of 4.99% of the  outstanding  shares of the
Common Stock  following such exercise.  For purposes of the foregoing  sentence,
the  number of shares of Common  Stock  beneficially  owned by a holder  and its
affiliates  or acquired by such holder and its  affiliates,  as the case may be,
shall  include the number of shares of Common Stock  issuable  upon  exercise of
this Warrant with respect to which such determination of beneficial ownership is
being made,  but shall  exclude the number of shares of Common Stock which would
be issuable  upon (i) exercise of the  remaining,  nonexercised  portion of this
Warrant  beneficially  owned by such holder and its affiliates and (ii) exercise
or exchange of the unexercised or unconverted portion of any other securities of
the Company (including, without limitation, any exchangeable notes) subject to a
limitation on exchange or exercise analogous to the limitation  contained herein
beneficially owned by such holder and its affiliates. Except as set forth in the
preceding sentence,  for purposes of this paragraph,  beneficial ownership shall
be calculated in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended.  Notwithstanding  anything to the contrary  contained  herein,
each Exercise Notice (as defined below) shall constitute a representation by the
holder  submitting  such  Exercise  Notice  that,  after  giving  effect to such
Exercise  Notice,  (A) to the best of  holder's  knowledge,  the holder will not

<PAGE>

beneficially  own (as determined in accordance with this paragraph) in excess of
4.99% of the outstanding shares of Common Stock and (B) the holder will not have
acquired, to the best of holder's knowledge, through exercise of this Warrant or
otherwise, a number of shares of Common Stock which, when added to the number of
shares of Common Stock  beneficially owned at the beginning of the 60-day period
ending on and including the applicable  date of exercise of this Warrant,  is in
excess of 4.99% of the  outstanding  shares of the Common Stock  following  such
exercise  during the 60-day period ending on and including such date of exercise
and the Company shall have no liability for any exercise in reliance on any such
Exercise  Notice.  For purposes of this paragraph,  in determining the number of
the  outstanding  shares of Common  Stock the holder of this Warrant may rely on
the  number  of  outstanding  shares of Common  Stock  (1) as  reflected  in the
Company's  most  recent  shareholder  list,  which list shall be provided to the
holder by the Company  upon the  holders'  written  request  (which  request the
holder  shall not submit to the Company on more than one  occasion  per calendar
quarter) and  certified by the Company as true,  complete and accurate as of the
date  thereof,  or (2) at such time as the Company is a Reporting  Company under
the  Securities  Exchange Act of 1934, as reflected in the Company's most recent
Form 10-Q or Form 10-K, as the case may be, or a more recent public announcement
by the Company or other  notice by the  Company or its  transfer  agent  setting
forth the number of shares of Common Stock outstanding.  In any case, the number
of outstanding shares of Common Stock shall be determined after giving effect to
exercises  of  this   Warrant   (including   the  exercise   with  respect  this
determination  is being  made) by the  holder  since  the date as of which  such
number of outstanding shares of Common Stock was disclosed or reported.

Notwithstanding the foregoing,  following the occurrence of any Event of Default
under the Note, as such term is defined therein, and while such Event of Default
is continuing,  the holder of this Warrant shall have the right to exercise this
Warrant and to convert all or any portion of this Warrant into Common Stock,  in
its sole discretion and at such time or times as it deems appropriate.

SECTION 1.        DEFINITIONS.

         (a) Definitions.  The following words and terms as used in this Warrant
shall have the following meanings:

               (i) "Closing Bid Price"  means,  for any security as of any date,
         the last closing bid price for such  security on the  Principal  Market
         (as  defined  below)  as  reported  by  Bloomberg   Financial   Markets
         ("Bloomberg"),  or,  if  the  Principal  Market  is not  the  principal
         securities  exchange  or  trading  market for such  security,  the last
         closing bid price of such security on the principal securities exchange
         or trading  market where such  security is listed or traded as reported
         by Bloomberg,  or if the  foregoing do not apply,  the last closing bid
         price of such security in the over-the-counter market on the electronic
         bulletin  board for such security as reported by  Bloomberg,  or, if no
         last closing bid price is reported for such security by Bloomberg,  the
         last closing  trade price for such  security as reported by  Bloomberg,
         or, if no last  closing  trade price is reported  for such  security by
         Bloomberg,  the average of the bid prices of any market makers for such
         security  as reported in the "pink  sheets" by the  National  Quotation
         Bureau,  Inc. If the Closing Bid Price  cannot be  calculated  for such
         security on such date on any of the  foregoing  bases,  the Closing Bid
         Price of such  security on such date shall be the fair market  value as
         mutually determined by the Company and holder.

               (ii)  "Common  Stock"  means  (i) the  Company's  common  shares,
         without par value,  and (ii) any  capital  stock into which such Common
         Shares shall have been changed or any capital  stock  resulting  from a
         reclassification of such Common Shares.

                                       2
<PAGE>

               (iii)  "Exchangeable  Securities"  means any stock or  securities
         (other  than  Options)  directly  or  indirectly  exchangeable  into or
         exchangeable for Common Stock, other than the Note.

               (iv) "Note" means the  $1,400,000  Amended and  Restated  Secured
         Term Note issued to Holder on the date first set forth above.

               (v) "Expiration Date" means November 21, 2007;  provided,  if any
         such date falls on a  Saturday,  Sunday or other day on which banks are
         required or authorized to be closed in the City of Chicago or the State
         of Illinois or on which  trading  does not take place on the  principal
         exchange or  automated  quotation  system on which the Common  Stock is
         traded (a "Holiday"), the next date that is not a Holiday.

               (vi) "Options" means any rights, warrants or options to subscribe
         for or purchase Common Stock or Exchangeable Securities.

               (vii)  "Person"  means  a  natural  person,   a  partnership,   a
         corporation,  a limited  liability  company,  an association or a joint
         stock company, a trust, a joint venture, an unincorporated organization
         or a  governmental  agency or any  department,  or agency or  political
         subdivision thereof.

               (viii)  "Principal  Market" means Nasdaq National Market,  Nasdaq
         SmallCap  Market or other national  exchange or trading market on which
         the Common Stock is traded.

               (ix)  "Securities  Act"  means  the  Securities  Act of 1933,  as
         amended and the rules and regulations promulgated thereunder.

               (x)  "Warrant"  means this  Warrant,  and all warrants  issued in
         exchange, transfer or replacement of any thereof.

               (xi) "Warrant  Exercise Price" means $1.00  (U.S.D.),  subject to
         adjustment as provided in Section 3.

SECTION 2.   EXERCISE OF WARRANT.

             (a) Subject to the terms and conditions hereof, this Warrant may be
exercised by the holder hereof then  registered on the books of the Company,  in
whole or in part,  at any time on any  business  day on or after the  opening of
business  on the  date  hereof  and  prior  to 11:59  P.M.  Eastern  Time on the
Expiration  Date  by (i)  delivery  of a  written  notice,  in the  form  of the
subscription  notice  attached as EXHIBIT A hereto (the "Exercise  Notice"),  of
such holder's election to exercise this Warrant,  which notice shall specify the
number of Warrant  Shares to be  purchased  (ii)  payment  to the  Company of an
amount equal to the appropriate  Warrant Exercise Price multiplied by the number
of  Warrant  Shares  as to which  this  Warrant  is being  exercised  (plus  any
applicable issue or transfer taxes) (the "Aggregate  Exercise Price") in cash or
by check or wire  transfer  and  (iii) the  surrender  to a common  carrier  for
delivery to the Company as soon as practicable following such date, this Warrant
(or an  indemnification  undertaking with respect to this Warrant in the case of
its loss, theft or destruction); provided, that if such Warrant Shares are to be
issued in any name other  than that of the  registered  holder of this  Warrant,
such issuance  shall be deemed a transfer and the  provisions of SECTION 8 shall
be  applicable.  In the event of any exercise of the rights  represented by this
Warrant in compliance with this SECTION 2(A), a certificate or certificates  for
the Warrant Shares so purchased,  in such  denominations  as may be requested by
the holder hereof and  registered in the name of, or as directed by, the holder,
shall be delivered at the  Company's  expense to, or as directed by, such holder
as soon as  practicable,  and in no event later than three business days,  after

                                       3
<PAGE>

the Company's receipt of the Exercise Notice,  the Aggregate  Exercise Price and
this Warrant (or an indemnification  undertaking with respect to this Warrant in
the case of its loss,  theft or  destruction).  Upon  delivery  of the  Exercise
Notice and  Aggregate  Exercise  Price  referred to in clause  (ii)(A) above the
holder of this Warrant shall be deemed for all corporate purposes to have become
the holder of record of the Warrant  Shares with  respect to which this  Warrant
has been  exercised,  irrespective  of the date of delivery  of this  Warrant as
required  by clause  (iii) above or the  certificates  evidencing  such  Warrant
Shares.

             (b)  Unless  the  rights  represented  by this  Warrant  shall have
expired  or shall have been  fully  exercised,  the  Company  shall,  as soon as
practicable and in no event later than five (5) business days after any exercise
and at its own  expense,  issue a new Warrant  identical in all respects to this
Warrant  except it shall  represent  rights to  purchase  the  number of Warrant
Shares purchasable  immediately prior to such exercise under this Warrant,  less
the number of Warrant Shares with respect to which such Warrant is exercised.

             (c) The  minimum  number of shares of Common  Stock for which  this
Warrant may be exercised shall be twenty thousand  (20,000)  shares,  unless the
aggregate  number of shares for which this Warrant may be exercised is less than
twenty  thousand  (20,000),  in which event,  this Warrant may be exercised with
respect to the full amount of such aggregate number.

             (d) No fractional  shares of Common Stock are to be issued upon the
exercise of this Warrant, but rather the number of shares of Common Stock issued
upon  exercise of this Warrant  shall be rounded up or down to the nearest whole
number.

             (e) If the  Company  shall  fail for any reason or for no reason to
issue  (subject to extension for a good faith  dispute) to the holder (i) within
five (5) business days after the Company's  receipt of the Exercise Notice,  the
Aggregate  Exercise  Price and this  Warrant,  a  certificate  for the number of
shares  of Common  Stock to which  the  holder  is  entitled  upon the  holder's
exercise of this  Warrant and (ii) if this Warrant is being  exercised  for less
than all of the number of shares of Common Stock covered by this Warrant, within
ten (10) business days after the Company's  receipt of the Exercise Notice,  the
Aggregate  Exercise  Price and this  Warrant,  a new  Warrant  for the number of
shares of Common Stock to which such holder is entitled pursuant to SECTION 2(B)
hereof, the Company shall, in addition to any other remedies under this Warrant,
pay as  additional  damages in cash to such  holder on each day such fifth (5th)
business day such exercise is not timely  effected and/or after the tenth (10th)
business  day such new Warrant is not  delivered,  as the case may be, an amount
equal to 0.5% of the  product  of (A) the sum of the  number of shares of Common
Stock not  issued to the  holder  on a timely  basis and to which the  holder is
entitled and/or, the number of shares represented by the portion of this Warrant
which is not being  converted,  as the case may be,  and (B) the  average of the
Closing Bid Prices of the Common  Stock for the three  consecutive  trading days
immediately preceding the last possible date which the Company could have issued
such  Common  Stock  or  Warrant,  as the  case may be,  to the  holder  without
violating this SECTION 2 .

             (f)  Notwithstanding  the  foregoing,  if,  at any time  after  the
Effective  Date, and as long as the holder may sell the Warrant Shares  pursuant
to an effective  registration  statement  under the Securities Act, or otherwise
without  restriction,  the  Closing  Price  of the  Common  Stock is equal to or
greater than $3.00 for five (5)  consecutive  days,  the Company  shall have the
right to require the exercise of the Warrants  within 180 days of the  Company's
written notification to the holder of such requirement. Following the expiration
of such 180-day  period,  this Warrant shall expire and have of no further force
or effect.

                                       4
<PAGE>

SECTION 3.        ADJUSTMENT.

         The Warrant  Exercise Price shall be subject to adjustment from time to
time as hereinafter provided in this SECTION 3:

             (a) Stock Dividends, Subdivisions and Combinations. If and whenever
the Company subsequent to the date hereof:

                 (i)  declares a dividend  upon,  or makes any  distribution  in
         respect  of,  any of its  capital  stock,  payable  in shares of Common
         Stock, Exchangeable Securities or Stock Purchase Rights,

                 (ii) subdivides its  outstanding  shares of Common Stock into a
         larger number of shares of Common Stock, or

                 (iii)  combines its  outstanding  shares of Common Stock into a
         smaller  number of shares of Common  Stock,

then the Warrant  Exercise  Price shall be adjusted to that price  determined by
multiplying the Warrant Exercise Price in effect immediately prior to such event
by a  fraction  (A)  the  numerator  of  which  shall  be the  total  number  of
outstanding  shares of Common Stock immediately prior to such event, and (B) the
denominator of which shall be the total number of  outstanding  shares of Common
Stock immediately after such event.

             (b)  Reorganization,  Reclassification  or  Recapitalization of the
Company.  In the  event  that the  Company  effects  (i) any  reorganization  or
reclassification  or recapitalization of the capital stock of the Company (other
than in the cases referred to in Section 3(a)), (ii) any consolidation or merger
of the Company with or into another  Person,  (iii) the sale,  transfer or other
disposition of the property, assets or business of the Company as an entirety or
substantially as an entirety or (iv) any other  transaction or event as a result
of which holders of Common Stock become  entitled to receive any shares of stock
or other securities and/or property  (including,  without limitation,  cash, but
excluding  any cash  dividend that is paid out of the earnings or surplus of the
Company  legally  available  therefor)  with  respect to or in exchange  for the
Common  Stock,  there shall  thereafter  be  deliverable  to the Holder upon the
exercise of this  Warrant or any  portion  thereof (in lieu of or in addition to
the Common Stock theretofore deliverable,  as appropriate) the highest number of
shares of stock or other  securities  and/or  the  greatest  amount of  property
(including,  without limitation,  cash) to which Holder would have been entitled
to receive had the Holder owned the Common Stock  attributable to the Warrant at
the time the transaction or event occurred.

             (c) Other Dilutive  Events.  If the Company takes any other action,
or if any other event occurs to which the other provisions of this Section 3 are
not strictly  applicable,  but which could result in an  adjustment  the Warrant
Exercise  Price or to any of the  other  terms of this  Warrant  that  would not
fairly protect the exercise rights and other rights  represented by this Warrant
in accordance with the essential  intent and principles  hereof,  an appropriate
adjustment in such purchase rights  comparable to the  adjustments  described in
(a) and (b) above shall be made by the Company.

             (d) Application. All subdivisions of this Section 3 are intended to
operate  independently of one another.  If a transaction or an event occurs that
requires  the   application  of  more  than  one   subsection,   all  applicable
subdivisions shall be given independent effect.

                                       5
<PAGE>

             (e)  Waiver.  In the event that the holder  consents  in writing to
limit, or waive in its entirety, any anti-dilution  adjustment to which it would
otherwise be entitled  hereunder,  the Company shall not be required to make any
adjustment  whatsoever  with  respect to this  Warrant  or any other  Warrant in
excess of such limit or at all, as the terms of such consent may dictate.

             (f) Notice of Adjustments to Warrant Exercise Price. As promptly as
practicable  after the occurrence of any event  requiring any  adjustment  under
this  SECTION  3 to the  Warrant  Exercise  Price  (or to the  number or kind of
securities or other property deliverable upon the exercise of this Warrant), the
Company shall, at its expense, mail to the holder a certificate of an officer of
the  Company  setting  forth in  reasonable  detail  the  events  requiring  the
adjustment and the method by which such adjustment was calculated and specifying
the  adjusted  Warrant  Exercise  Price and the number of shares of Common Stock
issuable upon exercise of this Warrant after giving effect to such adjustment.

SECTION 4.        COVENANTS AS TO COMMON STOCK.

         The Company hereby covenants and agrees as follows:

             (a) This Warrant is, and any Warrants issued in substitution for or
replacement  of this Warrant will upon issuance be, duly  authorized and validly
issued.

             (b) All Warrant Shares which may be issued upon the exercise of the
rights represented by this Warrant will, upon issuance, be validly issued, fully
paid and nonassessable  and free from all taxes,  liens and charges with respect
to the issue thereof.

             (c) During the period within which the rights  represented  by this
Warrant may be  exercised,  the Company  will at all times have  authorized  and
reserved at least 100% of the number of shares of Common Stock needed to provide
for the  exercise of the rights  then  represented  by this  Warrant and the par
value of said shares  will at all times be less than or equal to the  applicable
Warrant Exercise Price.

             (d) The Company shall promptly  secure the listing of the shares of
Common  Stock  issuable  upon  exercise  of  this  Warrant  upon  each  national
securities  exchange or automated quotation system, if any, upon which shares of
Common  Stock are then  listed  (subject to  official  notice of  issuance  upon
exercise of this  Warrant)  and shall  maintain,  so long as any other shares of
Common Stock shall be so listed, such listing of all shares of Common Stock from
time to time issuable  upon the exercise of this Warrant;  and the Company shall
so list on each national  securities  exchange or automated quotation system, as
the case may be, and shall maintain such listing of, any other shares of capital
stock of the Company  issuable  upon the exercise of this Warrant if and so long
as any  shares of the same  class  shall be listed on such  national  securities
exchange or automated quotation system.

             (e)  The  Company  will  not,  by  amendment  of  its  Articles  of
Incorporation or through any reorganization,  transfer of assets, consolidation,
merger, dissolution, issue or sale of securities, or any other voluntary action,
avoid or seek to avoid the  observance or  performance of any of the terms to be
observed  or  performed  by it  hereunder,  but will at all times in good  faith
assist in the  carrying  out of all the  provisions  of this  Warrant and in the
taking of all such action as may  reasonably  be requested by the holder of this
Warrant in order to protect the exercise privilege of the holder of this Warrant
against dilution or other  impairment,  consistent with the tenor and purpose of
this  Warrant.  The Company (i) will not increase the par value of any shares of
Common Stock  receivable  upon the  exercise of this  Warrant  above any Warrant
Exercise  Price  then in effect,  and (ii) will take all such  actions as may be
necessary or appropriate in order that the Company may validly and legally issue
fully paid and  nonassessable  shares of Common  Stock upon the exercise of this
Warrant.

                                       6
<PAGE>

             (f) This Warrant will be binding upon any entity  succeeding to the
Company by merger,  consolidation or acquisition of all or substantially  all of
the Company's assets.

             (g) The Company  shall  maintain its status as a reporting  company
required to file reports under Section 13 or Section 15(d) of the 1934 Act prior
to the  earlier to occur of the  Expiration  Date and the date this  Warrant has
been exercised in full.

SECTION 5.        TAXES.

         The Company  shall pay any and all taxes,  excluding  income or capital
gains  taxes,  which may be payable with respect to the issuance and delivery of
Warrant Shares upon exercise of this Warrant.

SECTION 6.        WARRANT HOLDER NOT DEEMED A STOCKHOLDER.

         Except as otherwise  specifically  provided herein, no holder, as such,
of this Warrant shall be entitled to vote or receive  dividends or be deemed the
holder of shares of the Company for any purpose, nor shall anything contained in
this Warrant be construed to confer upon the holder hereof,  as such, any of the
rights of a  stockholder  of the Company or any right to vote,  give or withhold
consent to any corporate  action  (whether any  reorganization,  issue of stock,
reclassification  of stock,  consolidation,  merger,  conveyance or  otherwise),
receive  notice of  meetings,  receive  dividends  or  subscription  rights,  or
otherwise,  prior to the  issuance to the holder of this  Warrant of the Warrant
Shares which he or she is then entitled to receive upon the due exercise of this
Warrant.  Notwithstanding this SECTION 6, the Company will provide the holder of
this Warrant with copies of the same notices and other  information given to the
stockholders of the Company generally, contemporaneously with the giving thereof
to the stockholders.

SECTION 7.        REPRESENTATIONS OF HOLDER.

         The holder of this Warrant,  by the acceptance hereof,  represents that
it is  acquiring  this  Warrant and the  Warrant  Shares for its own account for
investment only and not with a view towards,  or for resale in connection  with,
the public sale or distribution  of this Warrant or the Warrant  Shares,  except
pursuant to sales  registered or exempt from  registration  under the Securities
Act; provided,  however,  that by making the representations  herein, the holder
does not agree to hold this Warrant or any of the Warrant Shares for any minimum
or other specific term and reserves the right to dispose of this Warrant and the
Warrant  Shares at any time in  accordance  with or pursuant  to a  registration
statement  or an  exemption  under  the  Securities  Act  or  rules  promulgated
thereunder. The holder of this Warrant further represents, by acceptance hereof,
that, as of this date,  such holder is an "accredited  investor" as such term is
defined  in Rule  501(a) of  Regulation  D  promulgated  by the  Securities  and
Exchange  Commission under the Securities Act (an "Accredited  Investor").  Upon
exercise of this Warrant, the holder shall, if requested by the Company, confirm
in writing,  in a form  satisfactory to the Company,  that the Warrant Shares so
purchased  are being  acquired  solely for the holder's own account and not as a
nominee  for  any  other  party,  for  investment,  and not  with a view  toward
distribution or resale and that such holder is an Accredited  Investor.  If such
holder  cannot  make  such  representations  because  they  would  be  factually
incorrect,  it shall be a condition  to such  holder's  exercise of this Warrant
that the Company  receive such other  representations  as the Company  considers
reasonably  necessary to assure the Company that the issuance of its  securities
upon  exercise of this  Warrant  shall not  violate  any United  States or state
securities laws.

SECTION 8.        OWNERSHIP AND TRANSFER.

             (a) The Company shall maintain at its principal  executive  offices
(or such other office or agency of the Company as it may  designate by notice to
the holder  hereof),  a register for this  Warrant,  in which the Company  shall

                                       7
<PAGE>

record the name and  address of the person in whose name this  Warrant  has been
issued,  as well as the name and  address of each  transferee.  The  Company may
treat the person in whose name any Warrant is  registered on the register as the
owner and holder  thereof for all  purposes,  notwithstanding  any notice to the
contrary,  but in all events  recognizing  any transfers made in accordance with
the terms of this Warrant.

             (b) This  Warrant and the rights  granted to the holder  hereof are
transferable, in whole or in part, upon surrender of this Warrant, together with
a properly  executed  warrant  power in the form of  EXHIBIT B attached  hereto;
provided,  however,  that any  transfer  or  assignment  shall be subject to the
conditions set forth in SECTION 8(C) below.

             (c) The holder of this  Warrant  understands  that this Warrant has
not been and is not expected to be,  registered  under the Securities Act or any
applicable  securities laws, and may not be offered for sale, sold,  assigned or
transferred unless (a) subsequently  registered  thereunder,  or (b) such holder
shall have delivered to the Company an opinion of counsel, in form and substance
reasonably  acceptable to the Company,  to the effect that the  securities to be
sold, assigned or transferred may be sold,  assigned or transferred  pursuant to
an  exemption  from  such  registration;  provided  that  (i)  any  sale of such
securities made in reliance on Rule 144 promulgated under the Securities Act may
be made only in accordance with the terms of said Rule and further, if said Rule
is not applicable,  any resale of such securities  under  circumstances in which
the seller (or the person  through whom the sale is made) may be deemed to be an
underwriter  (as  that  term is  defined  in the  Securities  Act)  may  require
compliance  with some other exemption under the Securities Act; and (ii) neither
the  Company  nor any other  person is under any  obligation  to  register  this
Warrant under the Securities Act or any state  securities laws or to comply with
the terms and conditions of any exemption thereunder.

             (d) The Company is  obligated  to register  the Warrant  Shares for
resale under the Securities Act pursuant to the  Registration  Rights  Agreement
dated as of event date  herewith  and the initial  holder of this  Warrant  (and
certain assignees thereof) is entitled to the registration  rights in respect of
the Warrant Shares as set forth in such Registration Rights Agreement.

SECTION 9.     PURCHASE RIGHTS; REORGANIZATION, RECLASSIFICATION, CONSOLIDATION
MERGER OR SALE.

             (a) In addition to any adjustments  pursuant to SECTION 3 above, if
at any time the  Company  grants,  issues  or sells  any  Options,  Exchangeable
Securities or rights to purchase stock,  warrants,  securities or other property
pro rata to the  record  holders  of any class of Common  Stock  (the  "Purchase
Rights"),  then the holder of this Warrant will be entitled to acquire, upon the
terms  applicable to such Purchase Rights,  the aggregate  Purchase Rights which
such holder could have  acquired if such holder had held the number of shares of
Common Stock  acquirable  upon  complete  exercise of this  Warrant  immediately
before  the date on which a record is taken for the grant,  issuance  or sale of
such Purchase  Rights,  or, if no such record is taken, the date as of which the
record holders of Common Stock are to be determined for the grant, issue or sale
of such Purchase Rights.

             (b)   Any   recapitalization,   reorganization,   reclassification,
consolidation,  merger, sale of all or substantially all of the Company's assets
to another  Person or other  transaction  which is  effected  in such a way that
holders  of Common  Stock are  entitled  to  receive  (either  directly  or upon
subsequent  liquidation)  stock,  securities  or assets  with  respect  to or in
exchange  for Common Stock is referred to herein as "Organic  Change."  Prior to
the  consummation of any (i) sale of all or  substantially  all of the Company's
assets to an acquiring  Person or (ii) other Organic Change  following which the
Company is not a  surviving  entity,  the  Company  will  secure from the Person
purchasing  such assets or the successor  resulting from such Organic Change (in
each case,  the  "Acquiring  Entity")  written  agreement (in form and substance

                                       8
<PAGE>

satisfactory  to the  holder of this  Warrant)  to deliver  to such  holder,  in
exchange for such  Warrant,  a security of the Acquiring  Entity  evidenced by a
written instrument  substantially  similar in form and substance to this Warrant
and satisfactory to the holder hereof  (including,  an adjusted warrant exercise
price  equal to the value for the Common  Stock  reflected  by the terms of such
consolidation,  merger or sale, and exercisable  for a  corresponding  number of
shares of Common Stock  acquirable and receivable upon exercise of the Warrant).
Prior to the  consummation of any other Organic  Change,  the Company shall make
appropriate provision (in form and substance  satisfactory to the holder of this
Warrant) to insure  that the holder  hereof  will  thereafter  have the right to
acquire and receive in lieu of or in addition to (as the case may be) the shares
of Common Stock  immediately  theretofore  acquirable  and  receivable  upon the
exercise of such holder's  Warrant,  such shares of stock,  securities or assets
that would have been issued or payable in such Organic Change with respect to or
in  exchange  for the  number of shares of Common  Stock  which  would have been
acquirable  and  receivable  upon the exercise of this Warrant as of the date of
such Organic Change (without taking into account any limitations or restrictions
on the exercise ability of this Warrant).

SECTION 10.       LOST, STOLEN, MUTILATED OR DESTROYED WARRANT.

         If this Warrant is lost,  stolen,  mutilated or destroyed,  the Company
shall, on receipt of an indemnification undertaking, issue a new Warrant of like
denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.

SECTION 11.       NOTICES.

         Any  notices,  consents,  waivers or other  communications  required or
permitted  to be given  under the terms of this  Warrant  must be in writing and
will be  deemed  to have  been  delivered:  (i)  upon  receipt,  when  delivered
personally;  (ii) upon receipt, when sent by facsimile (provided confirmation of
transmission is mechanically or electronically generated and kept on file by the
sending  party);  or (iii) one  business  day after  deposit  with a  nationally
recognized  overnight  delivery service,  in each case properly addressed to the
party to  receive  the  same.  The  addresses  and  facsimile  numbers  for such
communications shall be:

                  If to the Company:

                  ALTAIR NANOTECHNOLOGIES, INC.
                  Dr. William P. Long
                  1725 Sheridan Ave., Suite 140
                  Cody, Wyoming 82414
                  Facsimile: (307) 587-8357

                  Edward Dickinson
                  204 Edison Way
                  Reno, Nevada 89502
                  Facsimile: (775) 856-1619

                  With copies to:

                  Stoel Rives, LLP
                  210 South Main Street
                  Salt Lake City, Utah 84111
                  Attn: Brian G. Lloyd and Bryan T. Allen
                  Facsimile: (801) 578-6999

                                       9
<PAGE>

                  Equity Transfer Services
                  120 Adelaide Street West, Suite 420
                  Toronto, Canada M5H 4C3
                  Attn: Peter Lindeman

                  If to the Buyer:

                  Doral 18, LLC
                  C/O David White
                  2533 Lawndale Ave
                  Evanston IL 60201
                  Telephone : (847) 372-5551
                  Facsimile:         __________
                  Attention: David White

                  With a copy to:

                  David B. Solomon, Esq. and Susan M. Hermann, Esq.
                  Pedersen & Houpt
                  161 N. Clark St.  Suite 3100
                  Chicago, IL 60601
                  (p) (312) 261-2214 and (312) 261-2120
                  (f)  (312) 261-1214 and (312) 261-1120

or to such other address and/or facsimile number and/or to the attention of such
other person as the recipient  party has specified by prior written notice given
to each  other  party  five days  prior to the  effective  date of such  change.
Written  confirmation  of receipt  (A) given by the  recipient  of such  notice,
consent,  waiver or other  communication,  (B)  mechanically  or  electronically
generated by the sender's facsimile machine containing the time, date, recipient
facsimile  number  and an image of the first  page of such  transmission  or (C)
provided  by  a  nationally  recognized  overnight  delivery  service  shall  be
rebuttable evidence of personal service,  receipt by facsimile or receipt from a
nationally  recognized overnight delivery service in accordance with clause (i),
(ii) or (iii) above, respectively.

SECTION 12.       DATE.

         The date of this  Warrant is November 21, 2002.  This  Warrant,  in all
events, shall be wholly void and of no effect after the close of business on the
Expiration Date, except that  notwithstanding  any other provisions  hereof, the
provisions of SECTION 8 shall  continue in full force and effect after such date
as to any Warrant  Shares or other  securities  issued upon the exercise of this
Warrant.

SECTION 13.       AMENDMENT AND WAIVER.

         The  provisions  of this  Warrant  may only be  amended  upon a written
instrument executed by the Company and the holders hereof.

                                       10
<PAGE>

SECTION 14.       DESCRIPTIVE HEADINGS; GOVERNING LAW.

         The descriptive headings of the several Sections and paragraphs of this
Warrant are inserted for  convenience  only and do not constitute a part of this
Warrant.  All questions concerning the construction,  validity,  enforcement and
interpretation  of this Warrant  shall be governed by the  internal  laws of the
State of Illinois, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of Illinois or any other  jurisdictions)
that would cause the application of the laws of any jurisdictions other than the
State of Illinois.

SECTION 15.       SUCCESSORS AND ASSIGNS.

         This  Warrant  shall be  binding  upon and inure to the  benefit of the
parties and their respective successors and assigns, including any purchasers of
this  Warrant.  The  Company  shall not  assign  this  Warrant  or any rights or
obligations  hereunder  without the prior written  consent of the holder of this
Warrant  other  than  by  operation  of  law  in   connection   with  a  merger,
consolidation, reorganization or similar transaction. The holder of this Warrant
may assign some or all of its rights hereunder to (i) without the consent of the
Company, any person or entity who,  immediately prior to such assignment,  is an
affiliate  of such  holder  (a  "Permitted  Assignee")  and (ii)  with the prior
written  consent  of the  Company,  which  consent  shall  not  be  unreasonably
withheld,  to any person or entity which is not a Permitted Assignee;  provided,
however,  that any such assignment  shall not release the holder of this Warrant
from its  obligations  hereunder  unless  such  obligations  are assumed by such
assignee and the Company has consented to such assignment and assumption,  which
consent  shall not be  unreasonably  withheld.  Notwithstanding  anything to the
contrary  contained  herein,  the holder of this  Warrant  shall be  entitled to
pledge the this Warrant and the shares of Common Stock issuable upon exercise of
this Warrant in connection with a bona fide margin account.

SECTION 16.       LIMITATION ON NUMBER OF WARRANT SHARES.

         The  Company  shall not be  obligated  to issue  more than 19.9% of its
total outstanding shares of Common Stock, determined as of December 15, 2000 (in
a manner consistent with Rule 4350(i)(1)(D) promulgated by the NASD with respect
to the Nasdaq Stock Market),  upon the exercise or conversion of all instruments
and  rights,  including  this  Warrant,  issued  under the  Securities  Purchase
Agreement dated December 15, 2000, the Note  Termination and Issuance  Agreement
dated  December 28, 2001 and the Note Amendment  Agreement  dated as of the date
hereto,  except  that such  limitation  shall  not  apply in the event  that the
Company  obtains the approval of its  stockholders  as required by the Principal
Market (or any successor  rule or  regulation)  for issuances of Common Stock in
excess of such  amount.  Upon the  holder's  request,  the  Company  shall  seek
approval of its  Stockholders at its next annual meeting of Stockholders for the
issuance  of 20% or more of its  Common  Stock.  In the  event  the  Company  is
prohibited  from  issuing  Warrant  Shares as a result of the  operation of this
SECTION 16, upon exercise of the Warrants,  the Company shall  promptly take the
steps  necessary  seek approval of such issuance from its  stockholders  and, if
such  approval is not obtained  within 180 days of the date the Company is first
prohibited  from  issuing  Warrant  Shares as a result of the  operation of this
SECTION 16, redeem for cash those Warrant  Shares which can not be issued,  at a
price equal to the difference  between the last reported sale price (as reported
by Bloomberg)  and the Exercise  Price of such Warrant  Shares as of the date of
the attempted exercise.

                                       11
<PAGE>

                  In witness  whereof,  the Company executes and delivers to the
Holder this Warrant to Purchase  Common Stock (Note  Amendment  Agreement) as of
the date first set forth above.

                                 ALTAIR NANOTECHNOLOGIES, INC.

                                 By:  /s/ William P. Long
                                      ---------------------------------
                                [Name]    William P. Long
                                [Title]   CEO

                                       12
<PAGE>

                                                           EXHIBIT A TO WARRANT
                                                           --------------------

                                SUBSCRIPTION FORM

        TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

                         ALTAIR NANOTECHNOLOGIES, INC.

         The  undersigned   holder  hereby   exercises  the  right  to  purchase
_________________  of the shares of Common  Stock  ("Warrant  Shares") of ALTAIR
NANOTECHNOLOGIES, Inc., a Canadian corporation (the "Company"), evidenced by the
attached  Warrant  (the  "Warrant").  Capitalized  terms  used  herein  and  not
otherwise defined shall have the respective meanings set forth in the Warrant.

         1.  Type of  Warrants.  The  aggregate  number  of  Warrants  exercised
pursuant to this Subscription Form shall be comprised of one (1) Warrant.

         2. Payment of Warrant Exercise Price. The holder has paid in connection
with  this  subscription,  the sum of  $___________________  to the  Company  in
accordance with the terms of the Warrant.

         3. Delivery of Warrant Shares.  The Company shall deliver to the holder
__________ Warrant Shares in accordance with the terms of the Warrant.

Date: _______________ __, ______

   Name of Registered Holder

By:
         -----------------------------------
         Name:
         Title:

                                       13
<PAGE>

1

WARRANTREDORALNOTEAMENDMENTAGREEMENT(7) 11.26.02

                                                           EXHIBIT B TO WARRANT
                                                           --------------------

                              FORM OF WARRANT POWER

FOR  VALUE  RECEIVED,  the  undersigned  does  hereby  assign  and  transfer  to
________________,  Federal Identification No. __________,  a warrant to purchase
____________  shares of the capital  stock of ALTAIR  NANOTECHNOLOGIES,  INC., a
Canadian corporation,  represented by warrant certificate no. _____, standing in
the name of the  undersigned on the books of said  corporation.  The undersigned
does  hereby  irrevocably  constitute  and appoint  ______________,  attorney to
transfer the warrants of said  corporation,  with full power of  substitution in
the premises.

Dated:  _________, ____

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

                                  By:  _____________________________
                                  Its: _____________________________

                                       14

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