Document:

Shareholders' Agreement among Peru Copper Inc., Peru Copper

 Exhibit 10.40 
  
 PERU COPPER INC. 
  
 PERU COPPER SYNDICATE, LTD. 
  

  
 SHAREHOLDERS’ AGREEMENT 

 
 March 18, 2004 
  

  

  
 TABLE OF CONTENTS

  
 ARTICLE 1 
 INTERPRETATION 
  

					
	 Section 1.1
	  	Defined Terms	  	1
	 Section 1.2
	  	Headings, etc.	  	5
	 Section 1.3
	  	Gender and Number	  	5
	 Section 1.4
	  	Governing Law	  	5
	 Section 1.5
	  	Severability	  	5
	 Section 1.6
	  	Currency	  	5
	 Section 1.7
	  	Entire Agreement	  	5
	 Section 1.8
	  	Amendment	  	5
	 Section 1.9
	  	Waiver	  	5
	 Section 1.10
	  	Time of Essence	  	5
	 Section 1.11
	  	Further Acts	  	6
	 Section 1.12
	  	Accounting Principles	  	6
		
	 ARTICLE 2
 TERM OF AGREEMENT
	  	 
			
	 Section 2.1
	  	Term	  	6
		
	 ARTICLE 3
 IMPLEMENTATION OF AGREEMENT
	  	 
			
	 Section 3.1
	  	Shareholder Covenants	  	6
	 Section 3.2
	  	Covenants by Canco and Caymanco	  	6
		
	 ARTICLE 4
 CORPORATION’S BUSINESS AND PURPOSE
	  	 
			
	 Section 4.1
	  	Business and Purpose	  	7
		
	 ARTICLE 5
 EXTRAORDINARY MATTERS
	  	 
			
	 Section 5.1
	  	Extraordinary Matters	  	7
		
	 ARTICLE 6
 INITIAL PUBLIC OFFERING AND EXCHANGE OF SHARES
	  	 
			
	 Section 6.1
	  	Initial Public Offering	  	8
	 Section 6.2
	  	Exchange of Caymanco Shares for Canco Shares	  	9
		
	 ARTICLE 7
 FINANCIAL AND ACCOUNTING PRACTICES
	  	 
			
	 Section 7.1
	  	Financial Information	  	9

  

 ( i ) 

					
	 Section 7.2
	  	Maintain Books	  	10
	 Section 7.3
	  	Review of Books	  	10
	 Section 7.4
	  	Fiscal Year	  	10
		
	 ARTICLE 8
 SALE OF SECURITIES
	  	 
			
	 Section 8.1
	  	Sale Restrictions	  	10
	 Section 8.2
	  	Rights of Purchaser	  	11
		
	 ARTICLE 9
 REPRESENTATIONS AND WARRANTIES
	  	 
			
	 Section 9.1
	  	Representations and Warranties of the Current Shareholders	  	11
	 Section 9.2
	  	Representations and Warranties of Canco and Caymanco	  	12
		
	 ARTICLE 10
 ADDITIONAL CAPITAL
	  	 
			
	 Section 10.1
	  	Right to Maintain Pro Rata Interest	  	13
	 Section 10.2
	  	Right to Additional Units	  	13
	 Section 10.3
	  	Exceptions	  	13
		
	 ARTICLE 11
 GENERAL MATTERS
	  	 
			
	 Section 11.1
	  	No Agency or Partnership	  	14
	 Section 11.2
	  	Notice	  	14
	 Section 11.3
	  	Endorsement of Share Certificates	  	15
	 Section 11.4
	  	Assignment	  	16
	 Section 11.5
	  	Counterparts	  	16
	 Section 11.6
	  	Publicity	  	16
		
	 ARTICLE 12
 CONFIDENTIALITY
	  	 
			
	 Section 12.1
	  	Confidentiality	  	16
	 Section 12.2
	  	Survival	  	17

  

 ( ii ) 

  
 SHAREHOLDERS’
AGREEMENT 
  
 Unanimous Shareholders’ Agreement dated as
of March 18, 2004 among Peru Copper Inc. (“Canco”), Peru Copper Syndicate, Ltd. (“Caymanco”), BMO Nesbitt Burns Inc. (“BMO Nesbitt Burns”) and each of the current holders of ordinary shares of
Caymanco listed on Schedule “A” (collectively, the “Current Shareholders”). 
  
 RECITALS: 
  

	 	(a)	Pursuant to the Subscription Agreements, the Investors have subscribed as of the date hereof for 8,571,429 Canco Units and have irrevocably agreed to purchase, on or about April 30,
2004, 3,000,000 Additional Canco Notes; 

  

	 	(b)	Canco has subscribed for 8,571,429 Caymanco Shares; 

  

	 	(c)	The Current Shareholders hold in the aggregate 50,000,000 Caymanco Shares; and 

  

	 	(d)	The parties hereto wish to set out herein certain of their respective understandings with respect to the Business and operations of Canco and Caymanco, the transfer of securities of
Canco and Caymanco and their respective rights and obligations, subject to the terms and provisions hereof. 

  
 In consideration of the foregoing and the mutual agreements contained herein (the receipt and adequacy of which are acknowledged), the parties agree as
follows: 
  
 ARTICLE 1 
 INTERPRETATION 
  
 Section 1.1 Defined Terms. 
  
 As used in this Agreement, the following terms have the following meanings: 
  
 “Additional Canco Notes” means the 3,000,000 Canco Notes to be sold by certain of the Current Shareholders
to the Investors pursuant to the Subscription Agreements, each Additional Canco Note having a principal amount of $1.33. 
  
 “Affiliate” means an “affiliate” as that term is defined in the CBCA. For the purposes of this Agreement, Canco and
Caymanco will be deemed to be affiliates of each other. 
  
 “Agency Agreement” means the agency agreement dated March 18, 2004 between BMO Nesbitt Burns and Haywood Securities Inc., on the one hand, and Canco, Caymanco and the Current Shareholders, on the other hand. 
  
 “Agreement” means this agreement and all schedules attached
hereto and any and all amendments made hereto by written agreement among the parties hereto. 
  

 “ Arm’s Length” has the meaning specified to such term by the Income Tax Act
(Canada). 
  
 “Articles” means the articles
of incorporation attached to the certificate of incorporation of Canco as may be amended or restated from time to time. 
  
 “Business” has the meaning specified thereto in Section 4.1. 
  
 “Business Day” means a day which is not a Saturday, Sunday or a statutory or civic holiday in Vancouver,
British Columbia or Toronto, Ontario. 
  
 “Bylaws” means the bylaws of Canco and such other by-laws as may from time to time be in force and effect. 
  
 “Canco” means Peru Copper Inc., a corporation incorporated under the laws of Canada. 
  
 “Canco Common Shares” means the common shares in the
capital of Canco. 
  
 “Canco Constating
Documents” means the Articles and the Bylaws. 
  
 “Canco Directors”, “Canco Board of Directors” and “Canco Board” means the Persons who are, from time to time, elected or appointed as directors of Canco. 
  
 “Canco Notes” means the unsecured convertible notes of
Canco to be issued pursuant to the Note Indenture, each Canco Note having a principal amount of $1.33. 
  
 “Canco Preferred Shares” means the preferred shares in the capital of Canco, issuable in series. 
  
 “Canco Shareholders” means a holder of Canco Shares, and
“Canco Shareholder” means, individually, any one of them. 
  
 “Canco Shares” means the Canco Common Shares and the Canco Preferred Shares. 
  
 “Canco Special Warrants” means the special share purchase warrants of Canco issued pursuant to a special warrant indenture dated March
18, 2004 between Canco and Computershare, each whole Special Canco Warrant exercisable, for no additional consideration, into one Canco Warrant. 
  
 “Canco Units” means units of Canco, each unit comprised of one Canco Note and one-half of one Canco Special Warrant. 
  
 “Canco Warrants” means the share purchase warrants of Canco
issued pursuant to a share purchase warrant indenture dated March 18, 2004 between Canco and Computershare, each whole Canco Warrant exercisable for one Canco Common Share at an exercise price of U.S.$2.00 per share. 
  

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 “Caymanco” means Peru Copper Syndicate, Ltd., an exempted company incorporated under the
Companies Law of the Cayman Islands. 
  
 “Caymanco
Constating Documents” means the Memorandum of Association and the Articles of Association of Caymanco. 
  
 “Caymanco Directors”, “Caymanco Board of Directors” and “Caymanco Board” means Persons who are,
from time to time, elected or appointed as directors of Caymanco. 
  
 “Caymanco Shareholders” means the Current Shareholders and any Person to whom a Caymanco Shareholder transfers any Caymanco Shares in accordance with the terms of this Agreement and “Caymanco Shareholder”
means any one of them. 
  
 “Caymanco Shares”
means the ordinary shares in the capital of Caymanco; 
  
 “CBCA” means the Canada Business Corporations Act as may be amended from time to time, and shall be deemed to be any act substituted therefor. 
  
 “Companies Law” means the Companies Law (2003 Revision) of the Cayman Islands as may be amended from time
to time, and shall be deemed to be any act substituted therefor. 
  
 “Computershare” means Computershare Trust Company of Canada; 
  
 “Control” has the meaning specified thereto in the CBCA. 
  
 “Current Shareholders” means the holders of Caymanco Shares on the date hereon set out in Schedule “B” hereto. 
  
 “Investors” means those persons who have subscribed for
8,571,429 Canco Units and agreed to purchase 3,000,000 Additional Canco Notes and any Person to whom such person transfers any Canco Notes and “Investor” means any one of them. 
  
 “Investors Majority” means the approval by the Investors
holding not less than 66 2/3% of the outstanding Canco Notes and Canco Common Shares (counted together as one
class) given in writing or by a resolution passed at a meeting of the holders of the Canco Notes and Canco Common Shares in accordance with the terms of the Note Indenture and the Canco Constating Documents. 
  
 “IPO” means either a Qualified IPO or a Non-qualified IPO.

  
 “Non-qualified IPO” means (i) an initial
public offering of Canco Common Shares with an offering amount of less than US$25 million, or a reverse-take over transaction, pursuant to which the Canco Common Shares (in the case of an initial public offering) or common shares of the acquiring
company (in the case of a reverse take-over) are listed on the Toronto Stock Exchange or another internationally recognized stock exchange, 
  

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provided that the prospectus (the “Prospectus”) with respect to the Non-qualified IPO qualifies (A) the Canco Common Shares issuable pursuant to
the automatic conversion of the Canco Notes and (B) the Canco Warrants issued upon the automatic exercise of the Special Warrants or (C) the common shares of the acquiring company issuable upon conversion of the Notes in a reverse take-over
transaction such that those shares are freely tradable; or (ii) a merger, amalgamation, arrangement, take-over or other form of corporate transaction pursuant to which an Arm’s Length third party acquires voting Control of Canco, provided that
such transaction is accepted by an Investors Majority and holders of not less than 66 2/3% of the Canco Common
Shares and further provided that the holders of the Canco Common Shares and the Investors receive either cash and/or freely tradeable equity securities that are listed on an internationally recognized stock exchange in connection with such
transaction. 
  
 “Note Indenture” means
the note indenture dated March 18, 2004 between Canco and Computershare. 
  
 “Person” means an individual, partnership, corporation or other entity. 
  
 “Qualified IPO” means (i) an initial public offering of Canco Common Shares with a minimum offering amount of US$25 million, or a
reverse-take over transaction, pursuant to which the Canco Common Shares (in the case of an initial public offering) or common shares of the acquiring company (in the case of a reverse take-over) are listed on the TSX or another internationally
recognized stock exchange, provided that the prospectus (the “Prospectus”) with respect to the Qualified IPO qualifies (A) the Canco Common Shares issuable pursuant to the automatic conversion of the Canco Notes and (B) the Canco Warrants
issued upon the automatic exercise of the Special Warrants or (C) the common shares of the acquiring company issuable upon conversion of the Notes in a reverse takeover transaction such that those shares are freely tradable; or (ii) a merger,
amalgamation, arrangement, take-over or other form of corporate transaction pursuant to which an Arm’s Length third party acquires voting Control of Canco, provided that such transaction is accepted by an Investors Majority and holders of not
less than 66 2/3% of the Canco Common Shares and further provided that the holders of the Canco Common Shares and
the Investors receive either cash and/or freely tradeable equity securities that are listed on an internationally recognized stock exchange in connection with such transaction. 
  
 “Shareholders” means, collectively, the Canco Shareholders and the Caymanco Shareholders. 
  
 “Shares” means, collectively, the Canco Shares and the
Caymanco Shares. 
  
 “Subscription Agreement”
means the subscription agreements entered into by each Investor and Canco as of the date hereof. 
  

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 Section 1.2 Headings, etc. 
  
 The provision of a Table of Contents, the division of this Agreement into Articles and Sections and the insertion of
headings are for convenient reference only and are not to affect its interpretation. 
  
 Section 1.3 Gender and Number. 
  
 Any reference in this Agreement to gender includes all genders and words importing the singular number only shall include the plural and vice versa. 
  
 Section 1.4 Governing Law. 
  

This Agreement shall be governed and interpreted and enforced in accordance with the laws of the Province of Ontario and the federal laws of Canada
applicable therein. The parties hereby attorn to the non-exclusive jurisdiction of the courts of the Province of Ontario. 
  
 Section 1.5 Severability. 
  
 Each provision of this Agreement is intended to be severable. If any provision hereof is illegal or invalid, such provision shall be deemed to be severed
and deleted herefrom and such illegality and invalidity shall not affect the validity or enforceability of the remainder hereof. 
  
 Section 1.6 Currency. 
  
 Unless otherwise indicated, all references to dollars in this Agreement shall be to United States dollars. 
  
 Section 1.7 Entire Agreement. 
  
 This Agreement constitutes the entire agreement among the parties hereto
with regard to the subject matter hereof and supersedes all prior agreements, understandings, representations or warranties, negotiations and discussions, whether oral or written, among the parties hereto with respect thereto. 
  
 Section 1.8 Amendment. 
  
 No amendment of this Agreement shall be binding unless approved by an
Investors Majority and executed in writing by Canco, Caymanco, each of the Current Shareholders and BMO Nesbitt Bums. Any such amendment shall be binding upon all of the parties hereto. 
  
 Section 1.9 Waiver. 
  
 No waiver by any party hereto of any breach of any of the provisions of this Agreement shall take effect or be binding upon such party unless in writing
and signed by such party. Unless otherwise provided therein, such waiver shall not limit or affect the rights of such party with respect to any other breach. 
  
 Section 1.10 Time of Essence. 
  
 Time shall be of the essence of this Agreement. 
  

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 Section 1.11 Further Acts. 
  
 The parties hereto agree to execute and deliver such further and other documents and perform and cause to be performed such
further and other acts and things as may be necessary or desirable in order to give full effect to this Agreement and every part hereof. 
  
 Section 1.12 Accounting Principles. 
  
 References in this Agreement to generally accepted accounting principles shall be deemed to be the generally accepted accounting principles from time to
time approved by the Canadian Institute of Chartered Accountants, or any successor institute, applicable as of the date on which such calculation is made or required to be made in accordance with generally accepted accounting principles. 

 
 ARTICLE 2 
 TERM OF AGREEMENT 
  
 Section 2.1 Term. 
  
 Subject to Section 12.2, this Agreement shall come into force and effect on the date hereof and shall terminate on the earlier of: 
  

	 	(a)	the date on which Canco holds all of the outstanding Caymanco Shares; 

  

	 	(b)	the date this Agreement is terminated by written agreement of the parties hereto by an amendment in accordance with Section 1.8; or 

  

	 	(c)	provided that Canco then holds all of outstanding Caymanco Shares, the date upon which there shall occur an Initial Public Offering. 

  
 ARTICLE 3 
 IMPLEMENTATION OF AGREEMENT 
  
 Section 3.1 Shareholder Covenants. 
  

	(1)	Each of the Current Shareholders covenants and agrees that it shall vote or cause to be voted the Canco Shares owned by it to accomplish and give effect to the terms and conditions
of this Agreement and that it shall otherwise act in accordance with the provisions and intent of this Agreement. 

  

	(2)	Each of the Current Shareholders covenants and agrees that it shall vote or cause to be voted the Caymanco Shares owned by it to accomplish and give effect to the terms and
conditions of this Agreement and that it shall otherwise act in accordance with the provisions and intent of this Agreement. 

  
 Section 3.2 Covenants by Canco and Caymanco. 
  

	(1)	 Canco consents to the terms of this Agreement and hereby covenants with each of the other parties hereto that it will at all times during the term of this Agreement
be governed 

  

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by the terms and provisions hereof in carrying on its Business and affairs, and each of the Current Shareholders shall vote or cause to be voted their
respective Canco Shares to cause Canco to fulfil its foregoing covenants. 

  

	(2)	Caymanco consents to the terms of this Agreement and hereby covenants with each of the other parties hereto that it will at all times during the term of this Agreement be governed
by the terms and provisions hereof in carrying on its Business and affairs, and each of the Current Shareholders shall vote or cause to be voted their respective Caymanco Shares to cause Caymanco to fulfil its foregoing covenants.

  
 ARTICLE 4 
 CORPORATION’S BUSINESS AND PURPOSE 
  
 Section 4.1 Business and Purpose. 
  
 The Business and purpose of each of Canco and Caymanco is the exploration for minerals, development of mineral properties and the production, extraction
and sale of minerals (the “Business”). 
  
 ARTICLE 5 
 EXTRAORDINARY MATERS 
  
 Section 5.1 Extraordinary Matters. 
  
 Caymanco will not and will cause its subsidiaries not to, and each of the Caymanco Shareholders will cause Caymanco not to
do any of the following without the approval by an Investors Majority in addition to any requirements required by law, or the Caymanco Constating Documents: 
  

	 	(a)	issue any shares of any class or right to acquire shares of any class of Caymanco or any affiliate of Caymanco (other than Canco); 

  

	 	(b)	effect any change in the charter documents, by-laws or capitalization of Caymanco or any affiliate of Caymanco; 

  

	 	(c)	other than as contemplated by this Agreement, purchase, redeem or otherwise acquire any Shares or any shares of any affiliate of Caymanco; 

  

	 	(d)	make a declaration or payment of dividends on any Caymanco Shares or any shares of any affiliate of Caymanco; 

  

	 	(e)	amalgamate, consolidate or merge or enter into an agreement to amalgamate, consolidate or merge Caymanco or its affiliates with any Person or to effect any transaction,
reorganization or plan of arrangement having similar effect; 

  

	 	(f)	sell, lease, transfer, mortgage, pledge or otherwise dispose of all or substantially all of the assets of Caymanco or any of its affiliates; 

  

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	 	(g)	distribute any monies or assets of Caymanco or its affiliates outside of the ordinary course of the Business; 

  

	 	(h)	institute proceedings for the winding-up, reorganization or dissolution of Caymanco or its affiliates; 

  

	 	(i)	adopt any shareholders’ agreement other than this Agreement; or 

  

	 	(j)	enter into or permit any affiliate to enter into a material contract outside the ordinary course of the Business. 

  
 ARTICLE 6 
 INITIAL PUBLIC OFFERING AND EXCHANGE OF SHARES 
  
 Section 6.1 Initial Public Offering. 
  

	(1)	Subject to this Section 6.1 and to entering into satisfactory arrangements with underwriters or agents on terms customary for a Qualified IPO, each of the Current Shareholders shall
use its commercially reasonable best efforts to cause Canco to complete a Qualified IPO as soon as possible following the date hereof. 

  

	(2)	As soon as practicable following the date hereof, Canco shall prepare a preliminary prospectus relating to an IPO in accordance with Ontario Securities Commission Rule 43- 501 -
General Prospectus Requirements. 

  

	(3)	Subject to Canco and one or more underwriters or agents appointed by Canco entering into an engagement letter in connection with an IPO, in form and substance satisfactory to Canco,
Canco shall file the preliminary prospectus with the Ontario Securities Commission and the securities regulatory authorities of the other provinces of Canada determined by Canco as provided in National Policy 43-201– Mutual Reliance Review
System for Prospectuses and Annual Information Forms. 

  

	(4)	Upon filing the preliminary prospectus relating to an IPO, Canco shall apply to list the Canco Common Shares on the Toronto Stock Exchange. 

  

	(5)	Following the filing of the preliminary prospectus, Canco shall use its reasonable best efforts to promptly resolve all comments or deficiencies raised by securities regulatory
authorities. 

  

	(6)	Subject to Canco and one or more underwriters or agents appointed by Canco entering into an underwriting or agency, agreement in connection with an IPO, in form and substance and on
terms satisfactory to Canco, Canco shall file and obtain a decision document for a (final) prospectus as soon as possible after regulatory comments and deficiencies have been resolved. 

  

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 Section 6.2 Exchange of Caymanco Shares for Canco Shares. 
  

	(1)	Subject to Section 6.2(2) and 6.2(4), each Current Shareholder may elect to exchange its Caymanco Shares for Canco Common Shares on the basis of one Canco Common Share for each
Caymanco Common Share at any time prior to completion of an IPO. 

  

	(2)	Subject to Section 6.2(4), each Current Shareholder other than Campania Holding Inc., Sunbeam Opportunities Limited and Tangent International Limited shall transfer to Canco that
number of Caymanco Shares that is equal to such Current Shareholder’s pro rata share of the 3,000,000 Additional Canco Notes to be sold by the Current Shareholders to the Investors for the issuance by Canco to the Current Shareholders of Canco
Notes on the basis of one Canco Note in the principal amount of $1.33 for each Caymanco Common Share prior to the closing of the sale of the Additional Canco Notes to the Investors. 

  

	(3)	Prior to completion of an IPO, subject to Section 6.2(4), each Current Shareholder shall exchange all of its remaining Caymanco Shares for Canco Common Shares on the basis of one
Canco Common Share for each Caymanco Common Share so that upon completion of an IPO Canco will own all of the outstanding Caymanco Shares and all rights to acquire Caymanco Shares. 

  

	(4)	The exchange of Caymanco Shares for Canco Common Shares or Additional Canco Notes contemplated by this Section 6.2 shall be effected as a redemption in kind of the Caymanco Shares
for Canco Common Shares or Additional Canco Notes, as the case may be, and such redemption shall only occur to the extent that Caymanco is able to continue to pay its debts as they fall due in the ordinary course of business both prior to and
following such redemption. 

  
 ARTICLE 7

 FINANCIAL AND ACCOUNTING PRACTICES 
  
 Section 7.1 Financial Information. 
  

	(1)	Until an IPO, Canco shall deliver to the Canco Shareholders, the Investors and BMO Nesbitt Burns within 140 days of the financial year end of Canco one copy of the annual financial
statements of Canco and Caymanco, which shall each be prepared on a consolidated basis and be audited by independent auditors of Canco and Caymanco, as the case may be, qualified and entitled to carry on in the Province of Ontario the practice of
public accounting and auditing, including the balance sheet and statements of income, retained earnings and changes in financial position, together with notes thereto. Such financial statements shall be signed by an authorized officer or director of
Canco and Caymanco, as the case may be, and shall be accompanied by a report of the auditors of Canco and Caymanco (which report shall not be qualified). 

  

	(2)	Canco shall provide to the Canco Shareholders, the Investors and BMO Nesbitt Burns within 60 days of the end of each financial quarter, the unaudited financial statements of Canco
and Caymanco for such quarter, prepared on a consolidated basis. 

  

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 Section 7.2 Maintain Books. 
  
 Each of Canco and Caymanco shall maintain accurate and complete books and records of all transactions, receipts, expenses,
assets and liabilities of Canco or Caymanco, as the case may be, in accordance with generally accepted accounting principles, consistently applied as approved and adopted by the Canco Board or the Caymanco Board, as the case may be. 
  
 Section 7.3 Review of Books. 
  
 Canco Shareholders, the Investors and BMO Nesbitt Burns shall, at their
expense unless otherwise agreed by the parties hereto, be entitled to appoint a representative, agent or designee to review, on reasonable notice, and take extracts of all books, documents and records of Canco and Caymanco provided that such persons
enter into a confidentiality agreement in form and substance satisfactory to Canco and Caymanco, acting reasonably. The Canco Shareholders, the Investors and BMO Nesbitt Burns and their representatives, agents and designees shall have the right to
discuss at any time with management personnel of Canco and Caymanco, such matters pertaining to the financial position, operations, investments and financings as may be of interest to the Canco Shareholders, Investors or BMO Nesbitt Burns or such
representative, agent or designee from time to time. 
  
 Section 7.4 Fiscal Year. 
  
 The fiscal year of
each of Canco and Caymanco shall end on the 31st day of December in each year, or such other date as is agreed to by the Canco Board and the Caymanco Board, as the case may be, provided that Canco and Caymanco shall have the same fiscal year end.

  
 ARTICLE 8 
 SALE OF SECURITIES 
  
 Section 8.1 Sale Restrictions. 
  

	(1)	No Current Shareholder shall sell, encumber, pledge or create a security interest in or otherwise deal with any Caymanco Shares except as provided in Section 8.1(4) hereto or
pursuant to Section 6.2 hereof. 

  

	(2)	No proposed dealing with any Caymanco Shares (including the issuance thereof) in violation of this Agreement shall be valid, and Caymanco shall not record or transfer any of the
Caymanco Shares dealt with in violation of this Agreement in the records of Caymanco nor shall any voting rights attached to such Caymanco Shares be exercised, nor shall any dividends be paid on such Shares during the period of such violation. Such
disqualification shall be in addition to and not in lieu of any other remedies to enforce the provisions of this Agreement. 

  

	(3)	 Notwithstanding anything else herein contained, every transfer of all or a portion of the Caymanco Shares held by a Current Shareholder, and any issue of securities
by Caymanco, in addition to the requirements of the applicable laws and the Caymanco Constating Documents, shall be subject to the condition that the proposed transferee, or 

  

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holder, if not already bound by this Agreement, shall first enter into an agreement with the other parties hereto to be bound hereby.

  

	(4)	Each of the Current Shareholders shall be permitted to transfer his, her or its Caymanco Shares as follows without compliance with the provisions of this Article 8, other than
Section 8.1(3), Section 8.2 and Section 11.4: 

  

	 	(a)	to a corporation, the shareholder of which is the Current Shareholder provided that the Current Shareholder legally and beneficially controls such corporation and legally and
beneficially owns, directly or indirectly, 100% of the issued and outstanding shares of such corporation; 

  

	 	(b)	to a trust, the beneficiaries of which are members of the family (related by blood, adoption or marriage to the Shareholder) of the Current Shareholder and provided that the trustee
is the Current Shareholder, or an entity at all times controlled by the Current Shareholder; 

  

	 	(c)	to a self-managed registered retirement savings plan or a similar investment vehicle, registered in the name of the Current Shareholder; or 

  

	 	(d)	as otherwise agreed by BMO Nesbitt Burns, acting reasonably, 

  
 provided that in each case the transferee agrees to comply with the obligations of the Current Shareholder under this Agreement, and provided further that
the Current Shareholder shall not be relieved of its obligations hereunder by such assignment. 
  

	(5)	Upon the death of a Current Shareholder, the Caymanco Shares of the Current Shareholder shall pass to the estate of the Current Shareholder which estate shall be bound hereby.

  
 Section 8.2 Rights of Purchaser.

  
 Any purchaser of Caymanco Shares from any Caymanco
Shareholder in accordance with the provisions of this Agreement shall be entitled to all of the benefits accruing to such Caymanco Shareholder hereunder and shall be subject to the obligations of such Caymanco Shareholder hereunder. 
  
 ARTICLE 9 
 REPRESENTATIONS AND WARRANTIES 
  
 Section 9.1 Representations and Warranties of the Current Shareholders. 
  
 Each Current Shareholder hereby jointly and not jointly and severally represents and warrants to each other Current Shareholders and to Canco and Caymanco
and to BMO Nesbitt Burns for the benefit of and on behalf of each of the Investors that: 
  

	 	(a)	such Current Shareholder is neither a party to nor bound by any agreement regarding its continuing ownership of its Caymanco Shares other than this Agreement;

  

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	 	(b)	such Current Shareholder is not a party to, bound by or subject to any indenture, mortgage, lease, agreement, instrument, charter or bylaw provision, statute, regulation, order,
judgment, decree or law which would be violated, contravened or breached by, or under which any default would occur, as a result of the execution and delivery by such Current Shareholder of this Agreement or the performance by such Current
Shareholder of any of the terms hereof; 

  

	 	(c)	such Current Shareholder owns that number of Caymanco Shares set out in Schedule “A” beneficially and as of record with good and marketable title thereto free and clear of
all legal rights and encumbrances provided that in the case of Sunbeam Opportunities Limited, Sunbeam Opportunities Limited is the holder of record of the Caymanco Shares and Mr. A.G. Loudon beneficially owns such shares with good and marketable
title thereto free and clear of all legal rights and encumbrances; 

  

	 	(d)	such Current Shareholder has not granted any person any right to acquire any of their Caymanco Shares nor any interest therein; and 

  

	 	(e)	Schedule A lists all of the issued and outstanding Caymanco Shares and there are no other rights outstanding of any kind to require Caymanco to issue any additional Caymanco Shares
nor other securities of Caymanco. 

  
 Section 9.2
Representations and Warranties of Canco and Caymanco. 
  
 Each of Canco and Caymanco represents and warrants to the Current Shareholders and to BMO Nesbitt Bums for the benefit of and on behalf of each of the Investors that: 
  

	 	(a)	it is a corporation duly formed, organized and validly existing under the laws of its jurisdiction of incorporation; 

  

	 	(b)	it has full corporate power and authority to enter into and perform this Agreement; 

  

	 	(c)	the entering into and performance by it of this Agreement have been duly authorized by all necessary corporate action and will not (i) violate or conflict with any charter document
or agreement to which it is a party or by which it is governed or bound, (ii) constitute a breach of any statute or regulation which would adversely affect Canco or Caymanco, as the case may be, or (iii) contravene any judgment, decree or order
binding on it; 

  

	 	(d)	this Agreement has been duly authorized, executed and delivered by it and is a legal, valid and binding obligation of Canco and Caymanco, as the case may be, enforceable against in
accordance with its terms; and 

  

 - 12 - 

	 	(e)	Schedule A lists all of the issued and outstanding Caymanco Shares and there are no other rights outstanding of any kind to require Caymanco to issue any additional Caymanco Shares
nor other securities of Caymanco. 

  
 ARTICLE 10

 ADDITIONAL CAPITAL 
  
 Section 10.1 Right to Maintain Pro Rata Interest. 
  
 If Canco requires additional capital by way of an offering of equity or debt convertible into equity up to and including an IPO, Canco shall provide
written notice to the Investors specifying the terms and conditions of the proposed offering (including an IPO) including the estimated amount of financing to be raised, the type of security to be issued, the estimated price (or estimated range of
prices) per security to be issued and the target completion date. Each Investor shall have the irrevocable right, exercisable by written notice given to Canco within 10 days after the giving of above notice by Canco, to participate in the equity
financing on the terms and conditions set forth by Canco on a pro rata basis based on the number of Canco Shares held by such Investor after giving effect to the exchange of all of the Caymanco Shares for Canco Common Shares and the
conversion of all of the Canco Notes for Canco Common Shares. If an Investor waives its right to participate in the equity financing on the terms and conditions set forth in the notice from Canco, then Canco cannot complete an equity financing at a
lesser price or on more favourable terms to purchasers without first providing the Investors with an additional right to participate pro rata in the financing on the revised terms. Any securities issued to Investors under the rights provided in this
Section 10.1 shall be subject to the same commission or fee to be paid to underwriters under the proposed offering. 
  
 Section 10.2 Right to Additional Units. 
  
 Subject to Section 10.3, if Canco grants stock options or other rights to purchase Canco Shares prior to the completion of an IPO, Canco will either (i)
adjust the conversion price of the Canco Notes under the Note Indenture or (ii) concurrently issue to the Investors additional Canco Notes, for no additional consideration, so that the interest of the Investor in Canco, calculated on a fully diluted
basis and after giving effect to the exchange of Caymanco Shares for Canco Common Shares and the conversion of the Canco Notes, immediately prior to the completion of an IPO, following the grant of such options or other rights, will not be less than
the interest of the Investor in Canco, after giving effect to the exchange of Caymanco Shares for Canco Common Shares and the conversion of the Canco Notes into Canco Common Shares, prior to the grant of such options or other rights. 
  
 Section 10.3 Exceptions. 
  
 No Shareholder shall have any rights under Section 10.1 and Section 10.2 in
respect of: 
  

	 	(a)	the issue of any options to acquire up to an aggregate of 1,500,000 Canco Shares at an exercise price of not less than U.S.$1.40 pursuant to a stock option plan for directors,
officers, consultants and employees of Canco or any of its affiliates and the issuance of Canco Shares upon the exercise of such options; 

  

 -13 - 

	 	(b)	the Canco Shares issued upon Conversion of the Notes; 

  

	 	(c)	the Canco Warrants issued upon exercise of the Canco Special Warrants and the Canco Shares issued upon due exercise of the Canco Warrants; 

  

	 	(d)	the broker options issued upon exercise of the broker warrants issued pursuant to the Agency Agreement and the Canco Shares issued upon exercise of such broker options; or

  

	 	(e)	the Canco Notes or Canco Common Shares issued to the Current Shareholders upon the transfer or exchange of their Caymanco Shares. 

  
 ARTICLE 11 
 GENERAL MATTERS 
  
 Section 11.1 No Agency or Partnership. 
  
 Nothing contained in this Agreement shall make or constitute any party the representative, agent, principal or partner of any other party and it is understood that no party has the capacity to make commitments of any
kind whatsoever or incur obligations or liabilities binding upon any other party. 
  
 Section 11.2 Notice. 
  
 Any notice, direction or other communication to be given under this Agreement shall be in writing and given by delivering it or sending it by facsimile or other similar form of recorded communication addressed: 
  

	 	(a)	to Canco or Caymanco at: 

  
 Peru Copper Syndicate, Ltd. 
 Suite 1600
– 777 Dunsmuir Stree 
 Vancouver, B.C. V7Y 1K4 
  

			
	Attention:	  	David De Witt
	Telephone:	  	604-687-9931
	Facsimile:	  	604-688-0094

  
 With a copy, which
shall not 
 constitute notice, to: 
  
 Cassels Brock & Blackwell LLP 
 40 King
Street West, Suite 2100 
 Toronto, ON M5H3 C2 
  

			
	Attention:	  	Paul M. Stein
	Telephone:	  	416-869-5487
	 Facsimile:
	  	416-350-6949

  

 -14 - 

	 	(b)	to a Shareholder at its last address of record in the corporate records of Canco or Caymanco, as the case may be; and 

  

	 	(c)	to the Investors and BMO Nesbitt Burns at: 

  
 BMO Nesbitt Burns Inc. 
 885 West Georgia
Street 
 Vancouver, BC V6C 3E8 
  

			
	 Attention:
	  	Jamie Rogers
	 Telephone:
	  	604-443-1491
	 Facsimile:
	  	604-443-1408

  
 With a copy to:

  
 Blake Cassels & Graydon LLP 
 Three Bentall Centre, Suite 2600 
 595 Burrard
Street 
 P.O. Box 49314 
 Vancouver, BC V7X 1L3 
  

			
	 Attention:
	  	Peter J.O’Callaghan
	 Telephone:
	  	604-631-3345
	 Facsimile:
	  	604-631-3309

  
 Any such communication shall be deemed
to have been validly and effectively given (i) if personally delivered, on the date of such delivery if such date is a Business Day and such delivery was made prior to 4:00 p.m. (Toronto time) and otherwise on the next Business Day, or (ii) if
transmitted by facsimile or similar means of recorded communication on the Business Day following the date of transmission. Any party may change its address for service from time to time by notice given in accordance with the foregoing and any
subsequent notice shall be sent to such party at its changed address. 
  
 Section 11.3 Endorsement of Share Certificates. 
  
 Any and all certificates representing Canco Shares and Caymanco Shares now or hereafter beneficially owned by the Caymanco Shareholders during the term of this Agreement shall have endorsed thereon, in bold type, the following legend:

  
 “The securities evidenced by this certificate are
subject to the terms of, and disposition and transfer of such securities is restricted in accordance with, the provisions of an agreement dated as of March 18, 2004 made between Peru Copper Inc., Peru Copper Syndicate, Ltd., BMO Nesbitt Burns Inc.
and 

  

 - 15 - 

 
each and all of the holders of the securities of Peru Copper Syndicate, Ltd.” 
  
 Section 11.4 Assignment. 
  
 Neither this Agreement nor any rights or obligations hereunder are assignable by the parties hereto without the prior written consent of the other parties
hereto, subject to the rights of Shareholders to sell their Shares pursuant to the terms of this Agreement and provided that the purchaser of such Shares agrees to be bound hereby. This Agreement shall enure to the benefit of and be binding upon the
parties hereto and their respective heirs, executors, legal personal representatives, successors and permitted assigns. 
  
 Section 11.5 Counterparts. 
  
 This Agreement may be executed in any number of counterparts and by facsimile and all such counterparts taken together shall be deemed to constitute one
and the same instrument. 
  
 Section 11.6 Publicity.

  
 Notwithstanding Section 12.1, each of the Investors shall
have the right to disclose to whomsoever in any manner its ownership of any securities of Caymanco or Canco. 
  
 ARTICLE 12 
 CONFIDENTIALITY 
  
 Section 12.1 Confidentiality. 
  
 The parties hereto agree to treat all information, data, reports and other
records (“information”) relating to Canco, Caymanco or the Business as confidential and will not disclose such information to any other Person other than their legal advisors or auditors without the prior written consent of the other
parties; provided, however, that no Shareholder shall be liable for any such disclosure of such information of such shareholder if such information: 
  

	 	(a)	becomes generally available to the public other than as a result of a disclosure by the shareholder or its representatives in violation of this Agreement; 

 

	 	(b)	was available to the shareholder on a non-confidential basis without violation of this Agreement prior to its disclosure by Canco or Caymanco or its respective representatives;

  

	 	(c)	becomes available to the shareholder on a non-confidential basis without violation of this Agreement from a source other than Canco or Caymanco or its respective representatives
provided that such source is not bound by a confidentiality agreement with Canco or Caymanco or a duty of confidentiality to or in respect of Canco or Caymanco to the knowledge of the shareholder; or 

  

	 	(d)	is required by law to be disclosed by the shareholder, provided that the shareholder first notifies Canco and Caymanco that it believes it is required to 

 

 - 16 - 

  
 SCHEDULE “A”

  
 ISSUED AND OUTSTANDING CAYMANCO SHARES HELD BY CURRENT

 SHAREHOLDERS 
  

			
	 Shareholder

	  	Number of Caymanco Shares

	 Catherine MacLeod-Seltzer
	  	5,000,000
		
	 Ranchu Copper Investments Limited
	  	12,500,000
		
	 Sunbeam Opportunities Limited
	  	4,166,667.500
		
	 Campania Holding Inc.
	  	4,166,666.250
		
	 Tangent International Limited
	  	4,166,666.250
		
	 Lowell Mineral Exploration LLC
	  	12,500,000
		
	 Fisherking Holdings Ltd.
	  	7,500,000
	 	  	

	 Total
	  	50,000,000

  

 Section 12.2 Survival. 
  
 The terms of this Article 12 and of Article 9 shall survive any termination of this Agreement without limit as to time.

  
 IN WITNESS WHEREOF the Parties have caused this
Agreement to be executed by their respective duly authorized officer. 
  

											
	 	 	 	 	 	 	PERU COPPER INC.
						
	 	 	 	 	 	 	 	 	By:	 	

	 	 	 	 	 	 	 	 	 	 	 Authorized Signing Officer

				
	 	 	 	 	 	 	PERU COPPER SYNDICATE, LTD.
						
	 	 	 	 	 	 	 	 	By:	 	

	 	 	 	 	 	 	 	 	 	 	 Authorized Signing Officer

				
	 	 	 	 	 	 	BMO NESBITT BURNS INC.
						
	 	 	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 	 	 Authorized Signing Officer

	 	 	 	 	 	 	 )
	 	 	 	 
	 	 	 	 	)	 	 
	 Witness
	 	 	 	 )
	 	 Catherine McLeod Seltzer

	 	 	 	 	 	 	 )
	 	 
				
	 	 	 	 	 	 	RANCHU COPPER INVESTMENTS LIMITED
						
	 	 	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 	 	 Authorized Signing Officer

				
	 	 	 	 	 	 	COMPANIA HOLDING, INC.
						
	 	 	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 	 	 Authorized Signing Officer

				
	 	 	 	 	 	 	LOWELL MINERAL EXPLORATION LLC
						
	 	 	 	 	 	 	 	 	By:	 	

	 	 	 	 	 	 	 	 	 	 	 Authorized Signing Officer

				
	 	 	 	 	 	 	SUNBEAM OPPORTUNIRY LIMITED
						
	 	 	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 	 	 Authorized Signing Officer

  

 - 15 - 

 Section 12.2 Survival. 
  
 The terms of this Article 12 and of Article 9 shall survive any termination of this Agreement without limit as to time.

  
 IN WITNESS WHEREOF the Parties have caused this
Agreement to be executed by their respective duly authorized officer. 
  

									
	 	 	 	 	PERU COPPER INC.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	PERU COPPER SYNDICATE, LTD.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	BMO NESBITT BURNS INC.
					
	 	 	 	 	 	 	By:	 	

	 	 	 	 	 	 	 	 	 Authorized Signing Officer

	 	 	 	 	 
			
	 	 	 )
 )
	 	 
	Witness	 	 )
 )
	 	 Catherine McLeod Seltzer

			
	 	 	 	 	RANCHU COPPER INVESTMENTS LIMITED
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	COMPANIA HOLDING, INC.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	LOWELL MINERAL EXPLORATION LLC
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	SUNBEAM OPPORTUNIRY LIMITED
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

  

 -15- 

 Section 12.2 Survival. 
  
 The terms of this Article 12 and of Article 9 shall survive any termination of this Agreement without limit as to time.

  
 IN WITNESS WHEREOF the Parties have caused this
Agreement to be executed by their respective duly authorized officer. 
  

									
	 	 	 	 	PERU COPPER INC.
					
	 	 	 	 	 	 	By:	 	

	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	PERU COPPER SYNDICATE, LTD.
					
	 	 	 	 	 	 	By:	 	

	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	BMO NESBITT BURNS INC.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

	 	 	 	 	 
					
	

	 	 	 	 )
 )
	 	

	 	 
	Witness	 	 )
 )
	 	 Catherine McLeod Seltzer

			
	 	 	 	 	RANCHU COPPER INVESTMENTS LIMITED
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	COMPANIA HOLDING, INC.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	LOWELL MINERAL EXPLORATION LLC
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	SUNBEAM OPPORTUNIRY LIMITED
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

  

 -15- 

 Section 12.2 Survival. 
  
 The terms of this Article 12 and of Article 9 shall survive any termination of this Agreement without limit as to time.

  
 IN WITNESS WHEREOF the Parties have caused this
Agreement to be executed by their respective duly authorized officer. 
  

									
	 	 	 	 	PERU COPPER INC.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	PERU COPPER SYNDICATE, LTD.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	BMO NESBITT BURNS INC.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 )
 )
	 	 
	Witness	 	 )
 )
	 	 Catherine McLeod Seltzer

			
	 	 	 	 	 RANCHU COPPER INVESTMENTS
 LIMITED

					
	 	 	 	 	 	 	By:	 	

	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	COMPANIA HOLDING, INC.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	LOWELL MINERAL EXPLORATION LLC
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	SUNBEAM OPPORTUNIRY LIMITED
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

  

 -15- 

 disclose such information and it allows Canco and Caymanco a reasonable period of time to contest the
disclosure of such information. 
  
 Section 12.2 Survival.

  
 The terms of this Article 12 and of Article 9 shall
survive any termination of this Agreement without limit as to time. 
  
 IN WITNESS WHEREOF the Parties have caused this Agreement to be executed by their respective duly authorized officer as of the date first above written. 
  

									
	 	 	 	 	PERU COPPER INC.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	PERU COPPER SYNDICATE, LTD.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	BMO NESBITT BURNS INC.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 )
 )
	 	 
	Witness	 	 )
 )
	 	 Catherine McLeod Seltzer

  

									
			
	 	 	 	 	RANCHU COPPER INVESTMENTS LIMITED
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	COMPANIA HOLDING, INC.
					
	 	 	 	 	 	 	By:	 	

	 	 	 	 	 	 	 	 	 Authorized Signing Officer

			
	 	 	 	 	LOWELL MINERAL EXPLORATION LLC
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 Authorized Signing Officer

  
 

 
  

 -17 - 

			
	SUNBEAM OPPORTUNITIES LIMITED
		
	 By:
	 	

	 	 	 Authorized Signing Officer

	
	TANGENT INTERNATIONAL LIMITED
		
	 By:
	 	 
	 	 	 Authorized Signing Officer

	
	FISHERKING HOLDINGS LTD.
		
	 By:
	 	 
	 	 	 Authorized Signing Officer

  

 -18 - 

			
	SUNBEAM OPPORTUNITIES LIMITED
		
	 By:
	 	 
	 	 	 Authorized Signing Officer

	
	TANGENT INTERNATIONAL LIMITED
		
	 By:
	 	

	 	 	 Authorized Signing Officer

	
	FISHERKING HOLDINGS LTD.
		
	 By:
	 	 
	 	 	 Authorized Signing Officer

  

 - 18 - 

			
	TANGENT INTERNATIONAL LIMITED
		
	 By:
	 	 
	 	 	 Authorized Signing Officer

	
	FISHERKING HOLDINGS LTD.
		
	 By:
	 	

	 	 	 Authorized Signing Officer

  

 - 16 -Special Warrant Indenture between Peru Copper Inc. and Computershare Trust Co.

 Exhibit 10.41 
  
 PERU COPPER INC. 
  
 - and - 
  
 COMPUTERSHARE TRUST COMPANY OF CANADA 
  
 SPECIAL WARRANT INDENTURE 
  
 Providing for the Issue of 
 up to 4,285,716 Special Warrants 
  
 March 18, 2004 
  

  
 TABLE OF CONTENTS

  

					
	 ARTICLE 1 INTERPRETATION
	  	2
			
	 1.1
	  	 Definitions
	  	2
	 1.2
	  	 Words Importing the Singular
	  	6
	 1.3
	  	 Interpretation not Affected by Headings
	  	7
	 1.4
	  	 Day not a Business Day
	  	7
	 1.5
	  	 Time of the Essence
	  	7
	 1.6
	  	 Governing Law
	  	7
	 1.7
	  	 Meaning of “outstanding” for Certain Purposes
	  	7
	 1.8
	  	 Currency
	  	8
		
	 ARTICLE 2 ISSUE OF SPECIAL WARRANTS
	  	8
			
	 2.1
	  	 Issue of Special Warrants
	  	8
	 2.2
	  	 Terms of Special Warrants
	  	8
	 2.3
	  	 Special Warrant Certificates
	  	9
	 2.4
	  	 Issue in Substitution for Lost Special Warrants
	  	9
	 2.5
	  	 Special Warrantholder not a Shareholder
	  	10
	 2.6
	  	 Special Warrants to Rank Pari Passu
	  	10
	 2.7
	  	 Signing of Special Warrants
	  	10
	 2.8
	  	 Certification by the Warrant Agent
	  	10
	 2.9
	  	 Legended Certificates
	  	11
		
	 ARTICLE 3 EXCHANGE AND OWNERSHIP OF SPECIAL WARRANTS
	  	13
			
	 3.1
	  	 Exchange of Special Warrants
	  	13
	 3.2
	  	 Charges for Exchange
	  	14
	 3.3
	  	 Ownership of Special Warrants
	  	14
	 3.4
	  	 Registration and Transfer of Special Warrants
	  	14
		
	 ARTICLE 4 EXERCISE OF SPECIAL WARRANTS
	  	16
			
	 4.1
	  	 Exercise During Exercise Period
	  	16
	 4.2
	  	 Notice of Effective Date
	  	16
	 4.3
	  	 Notice of End of Exercise Period
	  	16
	 4.4
	  	 Method of Exercise of Special Warrants
	  	16
	 4.5
	  	 Effect of Exercise of Special Warrants
	  	17
	 4.6
	  	 No Fractional Purchase Warrants
	  	21
	 4.7
	  	 Expiration of Special Warrants
	  	21
	 4.8
	  	 Exercise of Special Warrants upon Effective Date
	  	21
	 4.9
	  	 Accounting and Recording
	  	21
	 4.10
	  	 Cancellation of Surrendered Special Warrants
	  	21
	 4.11
	  	 Partial Exercise of Special Warrants
	  	22
		
	 ARTICLE 5 PROTECTION OF THE WARRANT AGENT
	  	22
			
	 5.1
	  	 Protection of Warrant Agent
	  	22

  
  

					
	 ARTICLE 6 RIGHTS AND COVENANTS
	  	22
			
	 6.1
	  	 General Covenants of the Company
	  	22
	 6.2
	  	 Warrant Agent’s Remuneration and Expenses
	  	23
	 6.3
	  	 Performance of Covenants by Warrant Agent
	  	23
		
	 ARTICLE 7 ENFORCEMENT
	  	24
			
	 7.1
	  	 Suits by Special Warrantholders
	  	24
		
	 ARTICLE 8 MEETINGS OF SPECIAL WARRANTHOLDERS
	  	24
			
	 8.1
	  	 Right to Convene Meetings
	  	24
	 8.2
	  	 Notice
	  	24
	 8.3
	  	 Chairman
	  	25
	 8.4
	  	 Quorum
	  	25
	 8.5
	  	 Power to Adjourn
	  	25
	 8.6
	  	 Show of Hands
	  	25
	 8.7
	  	 Poll
	  	26
	 8.8
	  	 Voting
	  	26
	 8.9
	  	 Regulations
	  	26
	 8.10
	  	 Company and Warrant Agent may be Represented
	  	27
	 8.11
	  	 Powers Exercisable by Extraordinary Resolution
	  	27
	 8.12
	  	 Meaning of “Extraordinary Resolution”
	  	28
	 8.13
	  	 Powers Cumulative
	  	29
	 8.14
	  	 Minutes
	  	29
	 8.15
	  	 Instruments in Writing
	  	30
	 8.16
	  	 Binding Effect of Resolutions
	  	30
	 8.17
	  	 Holdings by Company Disregarded
	  	30
		
	 ARTICLE 9 SUPPLEMENTAL INDENTURES AND SUCCESSOR COMPANIES
	  	30
			
	 9.1
	  	 Provision for Supplemental Indentures for Certain Purposes
	  	30
	 9.2
	  	 Successor Companies
	  	32
		
	 ARTICLE 10 CONCERNING THE WARRANT AGENT
	  	32
			
	 10.1
	  	 Trust Indenture Legislation
	  	32
	 10.2
	  	 Rights and Duties of Warrant Agent
	  	32
	 10.3
	  	 Evidence, Experts and Advisers
	  	34
	 10.4
	  	 Action by Warrant Agent to Protect Interests
	  	35
	 10.5
	  	 Warrant Agent not Required to Give Security
	  	35
	 10.6
	  	 Protection of Warrant Agent
	  	35
	 10.7
	  	 Replacement of Warrant Agent
	  	36
	 10.8
	  	 Conflict of Interest
	  	37
	 10.9
	  	 Acceptance of Trusts
	  	38
	 10.10
	  	 Warrant Agent Not to be Appointed Receiver
	  	38
	 10.11
	  	 Authorization to Carry on Business
	  	38
		
	 ARTICLE 11 GENERAL
	  	38
			
	 11.1
	  	 Notice to the Company and the Warrant Agent
	  	38
	 11.2
	  	 Notice to the Special Warrantholders
	  	40

  

 - ii - 

					
	 11.3
	  	 Discretion of Directors
	  	40
	 11.4
	  	 Satisfaction and Discharge of Indenture
	  	40
	 11.5
	  	 Provisions of Indenture and Special Warrants for the Sole Benefit of Parties and Special Warrantholders
	  	41
	 11.6
	  	 Counterparts and Formal Date
	  	42
		
	 SCHEDULE “A” – FORM OF SPECIAL WARRANT CERTIFICATE
	  	A-1
		
	 SCHEDULE “B” – CERTIFICATE
	  	B-1
		
	 SCHEDULE “C” – FORM OF NOTICE TO WARRANT AGENT
	  	C-1

  

 - iii - 

  
 THIS SPECIAL WARRANT INDENTURE dated
as of March 18, 2004 
  

			
	 BETWEEN :
	  	 
	 	  	PERU COPPER INC.
	 	  	a corporation existing under the federal laws of Canada
		
	 	  	(hereinafter called the “Company”)
		
	AND	  	 
		
	 	  	COMPUTERSHARE TRUST COMPANY OF CANADA,
	 	  	a trust company incorporated under the laws of Canada
		
	 	  	(hereinafter called the “Warrant Agent”)

  
 RECITALS 
  
 WHEREAS: 
  
 A. The Company proposes to issue Special Warrants (as hereinafter defined) exercisable by
the holder into Purchase Warrants (as hereinafter defined) on the terms hereinafter set; 
  
 B. The Company is duly authorized to create and issue the Special Warrants to be issued as herein provided; 
  
 C. All things necessary have been done and performed to make the Special Warrants, when certified by the Warrant Agent and issued as provided in this indenture, legal,
valid and binding upon the Company with the benefits of and subject to the terms in this indenture; 
  
 D. The foregoing recitals are made as statements of fact by the Company and not by the Warrant Agent; 
  
 E. The Warrant Agent has agreed to enter into this indenture and to hold all rights, interests and benefits contained herein for and on behalf of those persons who become
holders of Special Warrants issued pursuant to this indenture from time to time; 
  

 NOW THEREFORE, in consideration of the premises and the covenants of the parties, the Company hereby
appoints the Warrant Agent as trustee for the Special Warrantholders (as hereinafter defined), to hold all rights, interests and benefits contained herein for and on behalf of those persons who become holders of Special Warrants issued pursuant to
this indenture from time to time and it is hereby agreed and declared as follows: 
  
 ARTICLE 1 
  
 INTERPRETATION 
  

	1.1	Definitions 

  
 In this indenture, unless there is something in the subject matter or context inconsistent therewith: 
  
 “Accredited Investor” means an accredited investor as
defined in Rule 501 (a) of Regulation D; 
  
 “Agency
Agreement” means the agency agreement entered into by, among others, the Company and the Agents, dated March 18, 2004, in respect of, among other things, the issuance of the Special Warrants; 
  
 “Agents” means collectively, BMO Nesbitt Burns Inc.,
Haywood Securities Inc. and their respective U.S. Affiliates; 
  
 “Applicable Legislation” means the provisions of the statutes of Canada and its provinces and the regulations under those statutes relating to trust indentures and/or the rights, duties or obligations of issuers and
trustees under trust indentures as are from time to time in force and applicable to this indenture; 
  
 “Business Day” means a day that is not a Saturday, Sunday, a day on which banks are closed in the City of Toronto, Ontario or civic or
statutory holiday in the City of Toronto, Ontario; 
  
 “Closing Date” or “Closing Dates”, as the context requires, means one or more or both of the First Closing Date or the Second Closing Date; 
  
 “Common Shares” means the common shares in the capital of the Company; 
  
 “Company” means Peru Copper Inc., a corporation existing
under the federal laws of Canada, and its lawful successors from time to time; 
  
 “Counsel” means a barrister or solicitor (who may be an employee of the Company) or a firm of barristers and solicitors (who may be counsel to the Company); 
  
 “director” means a member of the board of directors of the
Company for the time being, and unless otherwise specified herein, reference to “action by the board of directors” means action by the board of directors of the Company as a board or, whenever duly empowered, action by a committee of the
board; 
  

 2 

 “Effective Date” means the date upon which the Corporation completes an IPO; 

 
 “Eligible Institution” means a Canadian Schedule I
chartered bank, a major trust company in Canada, a member of the Securities Transfer Agents Medallion Program (STAMP), a member of the Stock Exchange Medallion Program (SEMP) or a member of the New York Stock Exchange Inc. Medallion Signature
Program (MSP), members of these programs usually being members of a recognized stock exchange in Canada or the United States, members of the Investment Dealers Association of Canada, members of the National Association of Securities Dealers and/or
banks and trust companies in the United States; 
  
 “Exchange Number” at any time means that number of Warrants that Special Warrantholders are entitled to receive upon the exercise of the rights of each Special Warrant, as the number may be adjusted pursuant to Article 5
hereof, such number being equal to one Warrant per Special Warrant as of the date hereof; 
  
 “Exercise Date” with respect to any Special Warrant means the earlier of the date on which the Special Warrant is duly surrendered in accordance with the provisions of section 4.1 or the date of
deemed exercise of the Special Warrants pursuant to section 4.8; 
  
 “Exercise Period” means the period commencing on the date of this indenture and terminating at 5:00 p.m. (Toronto time) on the Effective Date; 
  
 “extraordinary resolution” has the meaning ascribed thereto in sections 8.12 and 8.15; 
  
 “First Closing Date” means March 18, 2004 or such later
date as the Corporation and the Agents may mutually agree upon; 
  
 “IPO” means a Qualified IPO or a Non-Qualified IPO; 
  
 “Non-Qualified IPO” means (i) an initial public offering of Common Shares with an offering amount of less than US$25 million, or a reverse-take over transaction, pursuant to which the Common Shares
(in the case of an initial public offering) or common shares of the acquiring company (in the case of a reverse take-over) are listed on the TSX or another internationally recognized stock exchange, provided that the prospectus (the
“Prospectus”) with respect to the Non-Qualified IPO qualifies, among other things the Purchase Warrants and the Common Shares underlying the Purchase Warrants or the common shares of the acquiring company issued on the exchange of, among
other things the Purchase Warrants in a reverse take-over transaction such that those 

  

 3 

 
securities are freely tradable; or (ii) a merger, amalgamation, arrangement, take-over or other form of corporate transaction pursuant to which an arm’s
length third party acquires voting control of the Company, provided that such transaction is accepted in accordance with the voting requirements and other conditions established by the Agency Agreement; 
  
 “Offering Jurisdictions” means the Provinces of British
Columbia and Ontario, the United States and such other jurisdictions outside of Canada that are agreed to by the Company and the Agents; 
  
 “person” means an individual, a corporation, a partnership, a syndicate, a trustee or any unincorporated organization and words importing
persons are intended to have a similarly extended meaning; 
  
 “Purchase Warrant Indenture” means an indenture between the Company and the Warrant Agent dated the date hereof providing for, among other things, the governance of the Purchase Warrants; 
  
 “Purchase Warrants” means the common share purchase
warrants of the Company governed by the Purchase Warrant Indenture, each Purchase Warrant entitling the holder to purchase one Common Share at a price of $2.00 per share prior to 5:00 p.m. (Toronto time) on or before the date that is 24 months from
the Closing Date; 
  
 “Purchaser” means a
purchaser of Special Warrants; 
  
 “Qualified IPO”
means (i) an initial public offering of Common Shares with a minimum offering amount of US$25 million, or a reverse-take over transaction, pursuant to which the Common Shares (in the case of an initial public offering) or common shares of the
acquiring company (in the case of a reverse take-over) are listed on the TSX or another internationally recognized stock exchange, provided that the Prospectus with respect to the Qualified IPO qualifies, among other things, the Purchase Warrants
and the Warrant Shares or the common shares of the acquiring company issuable upon the conversion of, among other things, the Purchase Warrants in a reverse take-over transaction such that those securities are freely tradable; or (ii) a merger,
amalgamation, arrangement, take-over or other form of corporate transaction pursuant to which an arm’s length third party acquires voting control of the Company, provided that such transaction is accepted in accordance with the voting
requirements and other conditions set out in the Agency Agreement; 
  
 “Regulation D” means Regulation D under the U.S. Securities Act;  
  
 “Regulation S” means Regulation S under the U.S. Securities Act; 
  
 “Second Closing Date” means April 30, 2004 or such other date as the Corporation and the Agents may
mutually agree upon; 
  

 4 

 “Securities Commissions” means the securities regulatory authorities of the Offering
Jurisdictions; 
  
 “Securities Laws” means the
securities legislation and regulations of, and the instruments, policies, rules, orders, codes, notices and published interpretation notes of the Securities Commissions of the Offering Jurisdictions; 
  
 “shareholder” means an owner of record of one or more
Common Shares or shares of any other class or series of the Company; 
  
 “Special Warrant Certificates” means the certificates representing the Special Warrants substantially in the form attached as Schedule “A” hereto or such other form as may be approved under subsection 2.4(1)
evidencing Special Warrants; 
  
 “Special Warrant
Purchase Price” means that part of the purchase price of the Units ascribed to the Special Warrants; 
  
 “Special Warrantholders’ Request” means an instrument, signed in one or more counterparts by Special Warrantholders holding, in the
aggregate, not less than 10% of the aggregate number of all Special Warrants then outstanding, requesting the Warrant Agent to take some action or proceeding specified therein; 
  
 “Special Warrantholders” or “holders” means the holders of Special Warrants for the time
being entered in the register maintained pursuant to Section 3.4; 
  
 “Special Warrants” means the special warrants authorized to be created by the Company under section 2.1 and governed by this indenture, entitling the holders thereof to acquire Purchase Warrants subject to the terms and
conditions of this indenture and the Special Warrant Certificates, as evidenced by Special Warrant Certificates; 
  
 “subsidiary of the Company” means a corporation, a majority of the outstanding voting shares of which is owned, directly or indirectly,
by the Company or by one or more subsidiaries of the Company and, as used in this definition, “voting shares” means shares of a class or classes ordinarily entitled to vote for the election of the majority of the directors of a corporation
irrespective of whether or not shares of any other class or classes shall have or might have the right to vote for directors by reason of the happening of any contingency; 
  
 “this Special Warrant Indenture”, “this indenture”, “herein”, “hereby” and
similar expressions mean or refer to this Special Warrant Indenture and any indenture, deed or instrument supplemental or ancillary hereto; and the expressions “Article”, “section” or “subsection” followed
by a 

  

 5 

 
number or letter mean and refer to the specified Article, section or subsection of this indenture; 
  
 “Time of Expiry” means, in respect of a Special Warrant,
5:00 p.m. (Toronto time) on the Effective Date; 
  
 “Transfer Agent” means the transfer agent or agents for the time being of the Common Shares; 
  
 “U.S. Affiliates” means Harris Nesbitt Corp. and Haywood Securities (USA) Inc., the United States registered broker-dealer affiliates of
the Agents; 
  
 “U.S. Person” means a U.S.
person as that term is defined in Regulation S; 
  
 “U.S.
Securities Act” means the United States Securities Act of 1933, as amended; 
  
 “United States” means the United States as that term is defined in Regulation S; 
  
 “Units” means the units of the Company, each comprised of a convertible note in the principal amount of US$1.33 and one-half of a Special
Warrant; 
  
 “Warrant Agent” means Computershare
Trust Company of Canada, a trust company existing under the laws of Canada, or any lawful successor thereto including through the operation of section 10.7; and 
  
 “Warrant Shares” means the Common Shares issuable upon the due exercise of the Purchase Warrants.

  
 “written order of the Company”, “written
request of the Company”, “written consent of the Company” and “certificate of the Company” and any other document required to be signed by the Company, means, respectively, a written order, request, consent,
certificate or other document signed in the name of the Company by any officer or director and may consist of one or more instruments so executed. 
  

	1.2	Words Importing the Singular 

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

  

 6 

	1.3	Interpretation not Affected by Headings 

  
 The division of this indenture into Articles, sections, subsections and paragraphs, the provision of a table of contents and the insertion of headings are
for convenience of reference only and shall not affect the construction or interpretation of this indenture. 
  

	1.4	Day not a Business Day 

  
 In the event that any day on which the Exercise Period expires or on or before which any action is required to be taken hereunder is not a Business Day,
then the Exercise Period shall expire on or the action shall be required to be taken on or before the next succeeding day that is a Business Day. 
  

	1.5	Time of the Essence 

  
 Time shall be of the essence in all respects in this indenture, the Special Warrants and the Special Warrant Certificates. 
  

	1.6	Governing Law 

  
 This indenture, the Special Warrants and the Special Warrant Certificates shall be construed and enforced in accordance with the laws of the Province of
Ontario and the federal laws of Canada applicable therein and shall be treated in all respects as Ontario contracts. 
  

	1.7	Meaning of “outstanding” for Certain Purposes 

  
 Except as provided in sections 4.7 and 4.8, every Special Warrant Certificate countersigned and delivered by the Warrant Agent hereunder shall be deemed
to be outstanding until it has been surrendered to the Warrant Agent pursuant to this indenture, provided however that: 
  

	 	(a)	a Special Warrant Certificate that has been partially exchanged shall be deemed to be outstanding only to the extent of the unexchanged part of the Special Warrants evidenced
thereby; and 

  

	 	(b)	where a Special Warrant Certificate has been issued in substitution for a Special Warrant Certificate that has been lost, stolen or destroyed, only the Special Warrant Certificate
so issued in substitution shall be counted for the purpose of determining the Special Warrants outstanding. 

  

 7 

	1.8	Currency 

  
 Unless otherwise stated, all dollar amounts referred to in this indenture are in United States dollars. 
  

	1.9	Termination 

  
 This indenture shall continue in full force and effect until the earlier of: (a) the Time of Expiry; and (b) the date that no Special Warrants are
outstanding hereunder; provided that this indenture shall continue in effect thereafter, if applicable, until the Company and the Warrant Agent have fulfilled all of their respective obligations under this Indenture. 
  
 ARTICLE 2 
  
 ISSUE OF SPECIAL WARRANTS 
  

	2.1	Issue of Special Warrants 

  
 The creation by the Company of a total of up to 4,285,716 Special Warrants are hereby authorized and created to be issued at the Special Warrant Purchase
Price. Special Warrant Certificates evidencing Special Warrants shall be executed by the Company and upon the written direction of the Company shall be certified by or on behalf of the Warrant Agent and delivered by the Warrant Agent to the Company
in accordance with such written direction of the Company. 
  

	2.2	Terms of Special Warrants 

  
 (1) The Special Warrant Certificates for the Special Warrants shall be substantially in the form attached as Schedule “A” hereto, subject to the
provisions of this indenture, with such additions, variations and changes as may be required or permitted by the terms of this indenture, and which may from time to time be agreed upon by the Warrant Agent and the Company, and shall have such
legends, distinguishing letters and numbers as the Company may, with the approval of the Warrant Agent, prescribe. Except as hereinafter provided in this Article 2, all Special Warrants shall, save as to denominations, be of like tenor and effect.
The Special Warrant Certificates may be engraved, printed, lithographed, photocopied or be partially in one form or another, as the Company may determine. No change in the form of the Special Warrant Certificate shall be required by reason of any
adjustment made pursuant to this Article 2 in the number and/or class of securities or type of securities that may be acquired pursuant to the Warrants. 
  
 (2) Each Special Warrant authorized to be issued hereunder shall entitle the registered holder thereof to acquire, upon due exercise and due execution of
the subscription form endorsed on the Special Warrant Certificate or other instrument 

  

 8 

 
of subscription in such form as the Warrant Agent and/or the Company may from time to time prescribe, one Purchase Warrant at any time after the date of
issuance of such Special Warrants and prior to the Time of Expiry, in accordance with the provisions of this indenture. 
  
 (3) Fractional Special Warrants shall not be issued or otherwise provided for. 
  

	2.3	Special Warrant Certificates 

  
 (1) The Company shall issue Special Warrants in registered form only and shall be evidenced only by Special Warrant Certificates with appropriate
insertions, omissions, substitutions and variations as may be required or permitted by the terms of this indenture and certification of the Special Warrant Certificates by the Warrant Agent shall be conclusive evidence of approval by the Company and
the Warrant Agent of any such insertion, omission, substitution and variation. The Special Warrant Certificates shall be dated as of the date hereof (regardless of their actual date of issue), shall bear such legends, distinguishing letters and
numbers as the Company shall, with the approval of the Warrant Agent, prescribe. 
  
 (2) The Warrant Agent shall maintain and make available to the Company a register, in accordance with section 3.4 of this indenture, of the names and addresses of all persons to whom Special Warrant Certificates have
been issued and the Warrant Agent shall mail or deliver Special Warrant Certificates evidencing the Special Warrants to those persons or as directed by the Company. 
  

	2.4	Issue in Substitution for Lost Special Warrants 

  
 (1) In case any of the Special Warrant Certificates issued and certified in this indenture shall become mutilated or be lost, destroyed or stolen, the
Company, subject to applicable law and to subsection 2.4(2), shall issue and thereupon the Warrant Agent shall certify and deliver a new Special Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen upon
surrender of, in place of and upon cancellation of the mutilated Special Warrant Certificate or in lieu of and in substitution for the lost, destroyed or stolen Special Warrant Certificate and the substituted Special Warrant Certificate shall be in
a form approved by the Warrant Agent and the Special Warrants evidenced by it will entitle the holder to the benefit hereof and will rank equally in accordance with its terms with all other Special Warrant Certificates issued or to be issued
hereunder. 
  
 (2) The applicant for the issue of a new Special
Warrant Certificate pursuant to this section shall bear the cost of the issue thereof and in case of loss, destruction or theft shall, as a condition precedent to the issue thereof, furnish to the Company and to the Warrant Agent such evidence of
ownership and of the loss, destruction or theft of the Special Warrant Certificate so lost, destroyed or 

  

 9 

 
stolen as shall be satisfactory to the Company and to the Warrant Agent in their discretion and the applicant shall also be required to furnish an indemnity
or security in amount and form satisfactory to the Company and the Warrant Agent in their discretion and shall pay the reasonable charges of the Company and the Warrant Agent in connection therewith. 
  

	2.5	Special Warrantholder not a Shareholder 

  
 Nothing in this indenture or in the holding of a Special Warrant evidenced by a Special Warrant Certificate or otherwise shall be construed as conferring
upon a Special Warrantholder any right or interest whatsoever as a shareholder, including but not limited to the right to vote at, to receive notice of, or to attend meetings of shareholders or any other proceedings of the Company or the right to
receive any dividends or other distributions. 
  

	2.6	Special Warrants to Rank Pari Passu 

  
 A Special Warrant shall rank pari passu with all other Special Warrants, whatever may be the actual date of issue of the Special Warrant Certificates that
evidence them. 
  

	2.7	Signing of Special Warrants 

  
 The Special Warrant Certificates shall be signed by any one of the directors or officers of the Company and may, but need not be under a corporate seal of
the Company or a reproduction thereof. The signature of any such director or officer may be mechanically reproduced in facsimile, engraved, printed or lithographed and Special Warrant Certificates bearing those facsimile signatures shall be binding
upon the Company as if they had been manually signed by the director or officer. Notwithstanding that the person whose manual or facsimile signature appears on any Special Warrant Certificate as a director or officer may no longer hold office at the
date of the Special Warrant Certificate or at the date of certification or delivery thereof, any Special Warrant Certificate signed as aforesaid shall, subject to section 2.8, be valid and binding upon the Company and the registered holder thereof
will be entitled to the benefits of this indenture. 
  

	2.8	Certification by the Warrant Agent 

  
 No Special Warrant Certificate shall be issued or, if issued, shall be valid or entitle the holder to the benefit hereof until it has been certified by
manual signature by or on behalf of the Warrant Agent in accordance with a written direction of the Company, substantially in the form approved by the Company and the Warrant Agent and the certification by the Warrant Agent upon any Special Warrant
Certificate shall be conclusive evidence as against the Company that the Special Warrant Certificate so certified has been duly issued hereunder and that the holder is entitled to the benefit hereof. The certification of the Warrant Agent on Special
Warrant Certificates issued hereunder shall not be construed as a representation or warranty by the Warrant Agent as to the validity of this Agreement or the Special Warrant Certificates (except the due 

  

 10 

 
certification thereof) and the Warrant Agent shall in no respect be liable or answerable for the use made of the Special Warrant Certificates duly certified
by the Warrant Agent in accordance with the instructions of the Company or the consideration thereof. 
  

	2.9	Legended Certificates 

  
 (1) The Special Warrants, the Purchase Warrants issuable upon the exercise of the Special Warrants and the Warrant Shares have not been, and will not be,
registered under the U.S. Securities Act. 
  
 (2) Each Special
Warrant Certificate originally issued to a U.S. Person, a person in the United States or a person for the account or benefit of a U.S. Person or a person in the United States, as well as all certificates issued in exchange for or in substitution of
the foregoing securities, shall bear the following legend: 
  
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
ONLY. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904
OF REGULATION S UNDER THE 1933 ACT, (C) IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE 1933 ACT PROVIDED BY RULES 144 OR 144A THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE U.S. STATE SECURITIES LAWS, OR
(D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE 1933 ACT OR ANY APPLICABLE U.S. STATE SECURITIES LAWS, AND THE HOLDER HAS PRIOR TO SUCH SALE FURNISHED TO THE CORPORATION AN OPINION TO SUCH EFFECT FROM COUNSEL OF RECOGNIZED STANDING
REASONABLY SATISFACTORY TO THE COMPANY AN OPINION OF COUNSEL OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF
TRANSACTIONS ON STOCK EXCHANGES IN CANADA. AT ANY TIME THE COMPANY IS A “FOREIGN ISSUER” AS DEFINED IN RULE 902 UNDER THE 1933 ACT, A NEW CERTIFICATE, BEARING NO LEGEND, THE DELIVERY OF WHICH WILL CONSTITUTE “GOOD DELIVERY” MAY
BE OBTAINED FROM THE COMPANY’S TRANSFER AGENT UPON DELIVERY OF THIS CERTIFICATE AND A DULY EXECUTED DECLARATION, IN FORM SATISFACTORY TO THE COMPANY AND THE COMPANY’S TRANSFER AGENT TO THE EFFECT THAT THE SALE OF THE SECURITIES IS BEING
MADE IN COMPLIANCE WITH RULE 904 OF REGULATIONS UNDER THE 

  

 11 

 
1933 ACT AT A TIME WHEN THE COMPANY IS A “FOREIGN ISSUER” AS DEFINED IN RULE 902 UNDER THE 1933 ACT.”; 
  
 provided that, if Special Warrants or Purchase Warrants are being sold in
compliance with the requirements of Rule 904 of Regulation S of the U.S. Securities Act and in compliance with Canadian local laws and regulations, and provided that the Corporation is a “foreign private issuer” within the meaning of
Regulation S at the time of sale, any such legend may be removed by providing a declaration to the Corporation’s registrar and transfer agent to the effect set forth in Schedule “B” hereto (or as the Corporation may prescribe from
time to time); and provided, further, that, if any such Special Warrants or Purchase Warrants are being sold pursuant to Rule 144 of the U.S. Securities Act, the legend may be removed by delivery to the registrar and transfer agent and the
Corporation of an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, that such legend is no longer required under applicable requirements of the U.S. Securities Act or state securities laws. The Warrant Agent
shall, upon receipt of the executed form of “Declaration for Removal of Legend” as set forth in Schedule “B” hereto, issue a new certificate within three Business Days thereof; 
  
 (3) If a Special Warrant Certificate or Purchase Warrant certificate issued
with respect to an exercise of Special Warrants is tendered for transfer and bears the legend set forth in paragraph 2.9(2) hereof and the holder thereof has not obtained the prior written consent of the Corporation, the Warrant Agent or the
registrar and transfer agent of the Common Shares and/or Warrants, as the case may be, the Warrant Agent shall not register such transfer unless the holder complies with the requirements of the said paragraph 2.9(2) hereof. 
  
 (4) Each Special Warrant Certificate originally issued to every Purchaser
resident in Canada, as well as all certificates issued in exchange for or in substitution of the Special Warrant Certificates, shall bear the following legend: 
  

“UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THE SECURITIES SHALL NOT TRADE THE SECURITIES BEFORE THE EARLIER OF (i) THE DATE
THAT IS TWELVE MONTHS AND A DAY AFTER THE DATE THE ISSUER FIRST BECAME A REPORTING ISSUER IN ANY OF ALBERTA, BRITISH COLUMBIA, MANITOBA, NOVA SCOTIA, ONTARIO, QUEBEC AND SASKATCHEWAN, IF THE ISSUER IS A SEDAR FILER; AND (ii) THE DATE THAT IS TWELVE
MONTHS AND A DAY AFTER THE LATER OF (A) THE DISTRIBUTION DATE, AND (B) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN THE LOCAL JURISDICTION OF THE PURCHASER OF THE SECURITIES THAT ARE THE SUBJECT OF THE TRADE.” 
  
 provided that, if at any time, in the opinion of counsel to the Company,
such legends are no longer necessary or advisable or should be changed under any 

  

 12 

 
such securities laws, or the holder of any such legended certificate, at the holder’s expense, provides the Company with evidence satisfactory in form
and substance to the Company (that may include an opinion of counsel satisfactory to the Company) to the effect that such legends are not required such legended certificate may thereafter be surrendered to the Company in exchange for a certificate
that does not bear such legend. 
  
 (5) The Warrant Agent shall
have no obligation to ensure or to verify compliance with any applicable laws or regulatory requirements on the issue, exercise or transfer of any Special Warrants or any Purchase Warrant issuable upon the exercise of a Special Warrant, provided
that such issue, exercise or transfer, as the case may be, is effected in accordance with the terms of this Indenture. The Warrant Agent shall be entitled to process all proffered transfers and exercises of Special Warrants upon the presumption that
such transfers or exercises are permissible pursuant to all applicable laws and regulatory requirements. The Warrant Agent may assume for the purposes of this Indenture that any address on the register of the Special Warrant holders is the
holder’s actual address. The Warrant Agent shall have no obligation to ensure that legends appearing on Special Warrants Certificates or Purchase Warrants comply with regulatory requirements or securities laws of any applicable jurisdiction.
Unless and until it is advised in writing by the Company or its counsel that the Company is no longer a “foreign issuer” as defined in rule 902 under the U.S. Securities Act, the Warrant Agent shall be entitled to assume that the Company
is a “foreign issuer” as defined in rule 902 under the U.S. Securities Act. 
  
 ARTICLE 3 
  
 EXCHANGE
AND OWNERSHIP OF SPECIAL WARRANTS 
  

	3.1	Exchange of Special Warrants 

  
 (1) One or more Special Warrant Certificates may, upon compliance with the reasonable requirements of the Warrant Agent, be exchanged for one or more
Special Warrant Certificates of different denomination(s) evidencing in the aggregate an equal number of Special Warrants as the number of Special Warrants represented by the Special Warrant Certificates being exchanged. 
  
 (2) Special Warrant Certificates may be exchanged only at the principal
transfer office of the Warrant Agent in the City of Toronto, Ontario or at any other place that is designated by the Company in writing with the approval of the Warrant Agent. Any Special Warrant Certificates tendered for exchange shall be
surrendered to the Warrant Agent or to its agent and cancelled. The Company shall sign all Special Warrant Certificates necessary to carry out exchanges as aforesaid and those Special Warrant Certificates shall be certified by or on behalf of the
Warrant Agent. 
  

 13 

	3.2	Charges for Exchange 

  
 For each Special Warrant Certificate exchanged, the Warrant Agent, except as otherwise herein provided, shall charge, if required by the Company, a
reasonable sum for each new Special Warrant Certificate issued. The party requesting the exchange, as a condition precedent thereto, shall pay such charges and shall pay or reimburse the Warrant Agent or the Company for all eligible transfer taxes
or governmental or other similar transfer charges required to be paid in connection therewith. 
  

	3.3	Ownership of Special Warrants 

  
 The Company and the Warrant Agent and their respective agents may deem and treat the holder of any Special Warrant Certificate as the absolute owner of
the Special Warrants represented thereby for all purposes and the Company and the Warrant Agent and their respective agents shall not be affected by any knowledge to the contrary except as required by statute or order of a court of competent
jurisdiction. The holder of any Special Warrant shall be entitled to the rights evidenced by that Special Warrant free from all equities or rights of set-off or counterclaim between the Company and the original or any intermediate holder thereof and
all persons may act accordingly and the receipt by any holder for the Purchase Warrants obtainable pursuant to the exercise of the Special Warrants shall be a good discharge to the Company and the Warrant Agent for the same and neither the Company
nor the Warrant Agent shall be bound to inquire into the title of any holder. 
  

	3.4	Registration and Transfer of Special Warrants 

  
 (1) The Company hereby appoints the Warrant Agent as registrar of the Special Warrants. The Company may hereafter, with the consent of the Warrant Agent,
appoint one or more other additional registrars of the Special Warrants. 
  
 (2) The Company shall cause a register to be kept by the Warrant Agent and the Warrant Agent agrees to maintain such a register at its principal stock transfer office in the City of Toronto, Ontario, in which shall be
entered the names and addresses of the holders of Special Warrants and other particulars of the Special Warrants held by them respectively and of all transfers of Special Warrants, and the Warrant Agent shall be entitled to rely on such register in
connection with the exchange, transfer, exercise or deemed exercise of any Special Warrant or Special Warrants pursuant to the terms of this indenture or the terms thereof. The Company shall also cause a transfer agency (a “Transfer
Agency”) to be maintained by the Warrant Agent and the Warrant Agent shall maintain such Transfer Agency at its principal stock transfer office in the City of Toronto, Ontario and in such other place or places and by such other agent
as the Company with the approval of the Warrant Agent may designate. No transfer of Special Warrants shall be valid unless: (i) made by the holder or the holder’s executors or administrators or other legal representatives or the holder’s
or their attorney duly appointed by an instrument in writing, in form and executed in a 

  

 14 

 
manner satisfactory to the Warrant Agent; (ii) upon compliance with all applicable securities legislation and requirements of regulatory authorities,
including applicable U.S. federal and state securities laws and such reasonable requirements as the Warrant Agent may prescribe; (iii) unless the transfer shall have been duly entered on the register by the Warrant Agent; and (iv) upon surrender of
the Special Warrant Certificate evidencing the Special Warrants to be transferred in accordance with this Article and a duly completed and executed Form of Transfer attached to the Special Warrant Certificate. Without limitation, signatures on the
Form of Transfer must be guaranteed by an authorized officer of a Canadian chartered bank (Schedule I) or by a medallion signature guarantee from a member of a recognized Medallion Signature Guarantee Program. The Warrant Agent is entitled to assume
compliance with Securities Laws unless otherwise notified in writing by the Company. 
  
 (3) The register referred to in this section shall at all reasonable times be open for inspection by the Company, by the Warrant Agent and by any Special Warrantholder upon receipt by the Warrant Agent of a written
request to permit such an inspection during normal business hours on a Business Day. 
  
 (4) Subject to subsection 3.4(2) the holder of a Special Warrant may at any time and from time to time have the Special Warrant transferred at any Transfer Agency in accordance with such reasonable regulations as the
Warrant Agent and the Company may prescribe. Special Warrants shall only be transferred upon payment to the Warrant Agent by the holder of the Special Warrant of a reasonable sum for each new Special Warrant certificate issued upon such transfer and
reimbursement of the Warrant Agent for any and all stamp taxes or other charges required to be paid in order to complete such transfer. 
  
 (5) Except as required by law, neither the Warrant Agent nor any other registrar nor the Company shall be charged with notice of or be bound to see to the
execution of any trust, whether express, implied or constructive, in respect of any Special Warrant and may transfer any Special Warrant on the written direction of the holder thereof, whether named as trustee or otherwise, as though that person
were the beneficial owner thereof. 
  
 (6) The register required
to be kept at the City of Toronto, Ontario shall not be closed at any time. In the event that any Transfer Agency in any place is closed, notice of the closing shall be given to the Special Warrantholders by the Company, in the manner provided in
section 12.2. 
  
 (7) The Warrant Agent shall, when the Company
so requests in writing, furnish the Company with a list of names and addresses of the Special Warrantholders showing the number of Special Warrants held by each Special Warrantholder and the date and particulars of issue and transfer of each Special
Warrant. 
  

 15 

 (8) No duty shall rest with the Warrant Agent to determine compliance of the transferor or transferee of
the Special Warrants with applicable Securities Laws. The Warrant Agent shall be entitled to assume that all transfers are legal and proper. 
  
 ARTICLE 4 
  
 EXERCISE OF SPECIAL WARRANTS 
  

	4.1	Exercise During Exercise Period 

  
 The holder of a Special Warrant Certificate may exercise the Special Warrants represented by one or more Special Warrant Certificates at any time and from
time to time in whole or in part during the Exercise Period in accordance with the provisions of section 4.4. Any such exercise, or any exercise by the Warrant Agent pursuant to section 4.8, shall be subject to the holder providing such assurances
and executing such documents as may be required by the Company to ensure compliance with the Securities Laws. The Warrant Agent is entitled to assume compliance with Securities Laws unless otherwise notified in writing by the Company. 
  

	4.2	Notice of Effective Date 

  
 Upon the occurrence of the Effective Date the Company shall immediately give notice to the Warrant Agent (in the form attached hereto as Schedule
“C”) by facsimile or courier to the address of the Warrant Agent set out in Article 11 of the occurrence of the Effective Date. 
  

	4.3	Notice of End of Exercise Period 

  
 Upon receipt by the Warrant Agent of the notice referred to in section 4.2, the Warrant Agent shall as soon as practicable give notice to the Special
Warrantholders (in the form provided to the Warrant Agent by the Company) specifying the end of the Exercise Period and such information as may be needed, if any, to allow the holders to obtain Purchase Warrants issuable upon the exercise or deemed
exercise of Special Warrants according to the terms of this indenture and the Special Warrant Certificate. 
  

	4.4	Method of Exercise of Special Warrants 

  
 (1) The holder of any Special Warrant may, during the Exercise Period, exercise the right to acquire Purchase Warrants by surrendering to the Warrant
Agent at its principal stock transfer office in the City of Toronto, Ontario or at any other place or places that may be designated by the Company with the approval of the Warrant Agent, the Special Warrant Certificates representing that number of
Special Warrants which equals the number of Purchase Warrants to be acquired, with a duly completed and executed exercise form in the form attached to the Special Warrant Certificate, subject to sections 4.7 and 4.11. The Special Warrants shall only
be deemed to have been surrendered upon personal delivery 

  

 16 

 
thereof to, or if sent by mail or other means of transmission upon actual receipt thereof by, the Warrant Agent at the office specified in section 11.1 of
this indenture. 
  
 (2) Any exercise form referred to in
subsection 4.4(1) shall be signed by the Special Warrantholder or the Special Warrantholder’s executors or administrators or other legal representatives or an attorney of the Special Warrantholder duly appointed by an instrument in writing
satisfactory to the Warrant Agent and the Company. The exercise form attached to the Special Warrant Certificate shall be completed to specify the number of Special Warrants being exercised, the person or persons in whose name or names the Purchase
Warrants to be issued upon exercise are to be issued, the person’s or persons’ address or addresses and the number of Purchase Warrants to be issued to each person if more than one person is so specified. If any of the Purchase Warrants to
be acquired are to be issued to a person or persons other than the Special Warrantholder, the Special Warrantholder shall pay to the Warrant Agent or to its agent any and all exigible transfer taxes or governmental or other charges required to be
paid in respect of the transfer of the Special Warrants or Purchase Warrants and the signature of the Special Warrantholder shall be guaranteed by an authorized officer of a Canadian chartered bank or of a major Canadian trust company or by a
medallion signature guarantee from a member recognized under the Signature Medallion Guarantee Program or in accordance with industry standards. 
  
 (3) If, at the time of exercise of the Special Warrants, there remain restrictions on resale under applicable Securities Laws on the Purchase Warrants
acquired, the Company shall, on the advice of counsel, endorse the certificates representing the Purchase Warrants with respect to those restrictions. The Company shall advise the Warrant Agent in writing as to any such restrictions. 
  

	4.5	Effect of Exercise of Special Warrants 

  
 (1) Upon exercise of the Special Warrants and compliance by the holder with section 4.4 and subject to subsection 4.5(3) and sections 4.6 and 4.7, the
holder of Special Warrants shall be entitled without further payment therefor to receive from the Company for each Special Warrant one Purchase Warrant and the Company shall cause the holder thereof to be entered forthwith on its register of
Purchase Warrant holders as the holder of Purchase Warrants and the Purchase Warrants so acquired shall be deemed to have been issued, and the person or persons to whom those Purchase Warrants are to be issued shall be deemed to have become the
Purchase Warrant holder or Purchase Warrant holders, as the case may be, of record of the Purchase Warrants, as applicable, on the Exercise Date unless the registers of the Company shall be closed on that date, in which case the Purchase Warrants so
acquired shall be deemed to be issued and the person or persons shall be deemed to become the shareholder or shareholders or Purchase Warrant holder or Purchase Warrant holders, as the case may be, of record of the Purchase Warrants, as applicable,

  

 17 

 
on the date on which the registers are reopened and the Purchase Warrants shall be issued on the later date. 
  
 (2) Upon the due exercise of the Special Warrants as aforesaid, the Warrant
Agent shall advise the Company of such exercise and the Warrant Agent shall, at the direction of the Company, without charge to the person exercising the Special Warrants except as provided in subsection 4.4(2) within three Business Days cause to be
mailed to the person or persons in whose name or names the Purchase Warrants so acquired are to be issued as specified in the exercise form attached to the Special Warrant Certificate at such person’s or persons’ respective address or
addresses specified in the exercise form or, if specified in the exercise form, cause to be delivered to the person or persons at the office where the Special Warrants were surrendered, certificates for the appropriate number of Purchase Warrants
that the Special Warrantholder is entitled to and has elected to acquire pursuant to the Special Warrants surrendered. 
  
 (3) If, in the opinion of counsel, any instrument is required to be filed with, or any permission, order or ruling is required to be obtained from, any
securities administrator, regulatory agency or governmental authority in Canada or the United States or any other step is required under any federal or provincial law of Canada or any federal or state law of the United States before the Purchase
Warrants issuable upon exercise of the Special Warrants may be issued or delivered to a Special Warrantholder, the Company covenants that it will use its reasonable best efforts to file such instrument, obtain such permission, order or ruling or
take all such other actions, at its expense, as is required or appropriate in the circumstances. 
  
 (4) The Company or, if required by the Company, the Warrant Agent will give written notice of the issue of the Purchase Warrants issuable upon exercise of
the Special Warrants in such detail as may be required, to each securities regulatory agency or government authority in Canada in each jurisdiction in which there is legislation requiring the giving of any such notice. 
  
 (5) Special Warrants may not be exercised in the United States or by or on
behalf of a U.S. Person unless an exemption is available from the registration requirements of the U.S. Securities Act and applicable state securities laws and the holder of the Warrants has furnished an opinion of counsel of recognized standing in
form and substance satisfactory to the Company to such effect; provided that an Accredited Investor, that purchased Units in the Company’s private placement of Units in the United States will not be required to deliver an opinion of counsel in
connection with the exercise of Warrants that were received upon the exercise of Special Warrants that were a part of the Units. 
  
 (6) Any holder which exercises a Special Warrant, pursuant to section 4.4, shall provide to the Company either: 
  

	 	(a)	a written certification that such holder (a) at the time of exercise of the Special Warrant is not in the United States; (b) is not a U.S. Person and is not exercising the Special
Warrant, on behalf of a U.S. Person; and (c) did not execute or deliver the exercise form for the Special Warrant in the United States; 

  

 18 

	 	(b)	a written certification that the holder (a) purchased the Special Warrant directly from the Company pursuant to a written subscription agreement for the purchase of Units; (b) is
exercising the Special Warrant solely for its own account and not on behalf of any other person; and (c) was an Accredited Investor, both on the date the Units were purchased from the Company and on the date of exercise of the Special Warrant; or

  

	 	(c)	a written opinion of counsel of recognized standing in form and substance satisfactory to the Company to the effect that an exemption from the registration requirements of the U.S.
Securities Act and applicable state securities laws is available for the issuance of the Warrants issuable on exercise of the Special Warrants. 

  

(7) No certificates representing Warrants will be registered or delivered to an address in the United States unless the holder of Special Warrants
complies with the requirements of section 4.5(6)(b) or (c) above. 
  
 (8) In the event that the Special Warrants are exercised by a Special Warrantholder who is a U.S. Person, a person in the United States or a person for the account or benefit of a U.S. Person or a person in the United States, the
certificates evidencing the Purchase Warrants shall bear the following legend: 
  
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED ONLY. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE UNITED STATES IN
ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE 1933 ACT, (C) IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE 1933 ACT PROVIDED BY RULES 144 OR 144A THEREUNDER, IF AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE U.S.
STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE 1933 ACT OR ANY APPLICABLE U.S. STATE SECURITIES LAWS, AND THE HOLDER HAS PRIOR TO SUCH 

  

 19 

 
SALE FURNISHED TO THE CORPORATION AN OPINION TO SUCH EFFECT FROM COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE COMPANY AN OPINION OF COUNSEL
OF OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA. AT ANY TIME THE COMPANY IS A
“FOREIGN ISSUER” AS DEFINED IN RULE 902 UNDER THE 1933 ACT, A NEW CERTIFICATE, BEARING NO LEGEND, THE DELIVERY OF WHICH WILL CONSTITUTE “GOOD DELIVERY” MAY BE OBTAINED FROM THE COMPANY’S TRANSFER AGENT UPON DELIVERY OF THIS
CERTIFICATE AND A DULY EXECUTED DECLARATION, IN FORM SATISFACTORY TO THE COMPANY AND THE COMPANY’S TRANSFER AGENT TO THE EFFECT THAT THE SALE OF THE SECURITIES IS BEING MADE IN COMPLIANCE WITH RULE 904 OF REGULATIONS UNDER THE 1933 ACT AT A
TIME WHEN THE COMPANY IS A “FOREIGN ISSUER” AS DEFINED IN RULE 962 UNDER THE 1933 ACT.”; 
  
 (9) In the event that the Special Warrants are exercised by any holder of Special Warrants prior to the Effective Date, the certificates evidencing the
Purchase Warrants shall bear the following legend: 
  
 “UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THE SECURITIES SHALL NOT TRADE THE SECURITIES BEFORE THE EARLIER OF (i) THE DATE THAT IS TWELVE MONTHS AND A DAY AFTER THE DATE THE ISSUER FIRST BECAME A REPORTING ISSUER IN
ANY OF ALBERTA, BRITISH COLUMBIA, MANITOBA, NOVA SCOTIA, ONTARIO, QUEBEC AND SASKATCHEWAN, IF THE ISSUER IS A SEDAR FILER; AND (ii) THE DATE THAT IS TWELVE MONTHS AND A DAY AFTER THE LATER OF (A) THE DISTRIBUTION DATE, AND (B) THE DATE THE ISSUER
BECAME A REPORTING ISSUER IN THE LOCAL JURISDICTION OF THE PURCHASER OF THE SECURITIES THAT ARE THE SUBJECT OF THE TRADE.” 
  
 provided that, if at any time, in the opinion of counsel to the Company, such legends are no longer necessary or advisable or should be changed under any
such securities laws, or the holder of any such legended certificate, at the holder’s expense, provides the Company with evidence satisfactory in form and substance to the Company (that may include an opinion of counsel satisfactory to the
Company) to the effect that such legends are not required such legended certificate may thereafter be surrendered to the Company in exchange for a certificate that does not bear such legend. 
  

 20 

	4.6	No Fractional Purchase Warrants 

  
 Under no circumstances shall the Company be obliged to issue any fractional Purchase Warrants or any cash or other consideration in lieu thereof upon the
exercise of one or more Special Warrants. To the extent that the holder of one or more Special Warrants would otherwise have been entitled to receive on the exercise or partial exercise thereof a fraction of a Purchase Warrant, that holder may
exercise that right in respect of the fraction only in combination with another Special Warrant or Special Warrants that in the aggregate entitle the holder to acquire a whole number of Purchase Warrants. 
  

	4.7	Expiration of Special Warrants 

  
 After the expiry of the Exercise Period, all rights under any Special Warrant in respect of which the right of subscription and payment herein and therein
provided for shall not theretofore have been exercised shall wholly cease and terminate and the Special Warrants shall be void and of no effect. 
  

	4.8	Exercise of Special Warrants upon Effective Date 

  
 If upon the Effective Date, any Special Warrants have not been exercised by the holders thereof, such Special Warrants shall be then exercised by the
Warrant Agent on behalf of such holders without any further action on the part of the holders. In that event, the Warrant Agent shall mail within five business days after receipt of notice of the Effective Date, by prepaid first class mail,
certificates for the Warrants issued upon such deemed exercise in the name of such holder to the address of such holder as specified in the register for the Special Warrants. 
  

	4.9	Accounting and Recording 

  
 The Warrant Agent shall promptly notify the Company with respect to Special Warrants exercised. The Warrant Agent shall record the particulars of the
Special Warrants exercised, which particulars shall include the names and addresses of the persons who become holders of Purchase Warrants on the Exercise Date. Within five Business Days of each Exercise Date, the Warrant Agent shall provide those
particulars in writing to the Company. 
  

	4.10	Cancellation of Surrendered Special Warrants 

  
 All Special Warrant Certificates surrendered to the Warrant Agent shall be cancelled by the Warrant Agent and, upon written request therefor of the
Company, the Warrant Agent shall furnish the Company with a certificate identifying the Special Warrant Certificates so cancelled and the number of Special Warrants evidenced thereby. 
  

 21 

	4.11	Partial Exercise of Special Warrants 

  
 A Special Warrantholder may acquire a lesser amount of Purchase Warrants than the number of Purchase Warrants that may be acquired under the Special
Warrants presented by such holder to the Warrant Agent for exercise, in which case the Special Warrantholder shall be entitled at no cost, to receive and the Warrant Agent shall issue, a new Special Warrant Certificate in respect of the balance of
the unexercised Special Warrants in respect of the Special Warrant Certificate presented for exercise. 
  
 ARTICLE 5 
  
 PROTECTION OF THE WARRANT AGENT 
  

	5.1	Protection of Warrant Agent 

  
 Subject to the provisions of sections 10.2 and 10.3, the Warrant Agent: 
  

	 	(a)	shall not be accountable with respect to the validity or value (or kind or amount) of any Purchase Warrants or of any shares or other securities or property that may at any time be
issued or delivered upon the exercise of the rights attaching to any Special Warrant; 

  

	 	(b)	shall not be responsible for any failure of the Company to make any cash payment or to issue, transfer or deliver Purchase Warrants or certificates for the same upon the surrender
of any Special Warrants for the purpose of the exercise of such rights or to comply with any of the covenants contained in Article 6; and 

  

	 	(c)	shall not incur any liability or responsibility whatever or be in any way responsible for the consequence of any breach on the part of the Company of any of the representations,
warranties or covenants herein contained or of any acts of the agents or servants of the Company. 

  
 ARTICLE 6 
  
 RIGHTS AND COVENANTS 
  

	6.1	General Covenants of the Company 

  
 The Company covenants with the Warrant Agent for the benefit of the Warrant Agent and the Special Warrantholders that so long as any Special Warrants
remain outstanding and may be exchanged for Purchase Warrants: 
  
 (1) The Company will use its best efforts to maintain its existence and will carry on and conduct its business in a prudent manner in accordance with 

  

 22 

 
industry standards and good business practice and will keep or cause to be kept proper books of account in accordance with applicable law. 
  
 (2) The Company will reserve and keep available a sufficient number of
Purchase Warrants for issuance upon the exercise of Special Warrants issued by the Company. 
  
 (3) The Company will cause the Purchase Warrants from time to time subscribed for pursuant to the Special Warrants issued by the Company hereunder, in the manner herein provided, to be duly issued in accordance with
the Special Warrants and the terms thereof and hereof. 
  
 (4)
The Company will cause the certificates representing the Purchase Warrants from time to time to be acquired pursuant to the Special Warrants in the manner herein provided, to be duly issued and delivered in accordance with the Special Warrants and
the terms hereof and in respect of the certificates evidencing Purchase Warrants, in accordance with the Purchase Warrant Indenture, as applicable. 
  
 (5) Generally, the Company will well and truly perform and carry out all the acts and things to be done by it as provided in this indenture. 

 
 (6) The Company will provide to each Special Warrantholder copies of all
financial statements sent to holders of Common Shares from the date hereof and while any Special Warrants remain outstanding. 
  
 (7) The Company will promptly advise the Warrant Agent and the Special Warrantholders in writing of any default under the terms of this indenture.

  

	6.2	Warrant Agent’s Remuneration and Expenses 

  
 The Company covenants that it will pay to the Warrant Agent from time to time reasonable remuneration for its services hereunder and will pay or reimburse
the Warrant Agent upon its request for all reasonable expenses and disbursements of the Warrant Agent in the administration or execution of the trusts hereby created (including the reasonable compensation and the disbursements of counsel and all
other advisers, experts, accountants and assistants not regularly in its employ) both before any default hereunder and thereafter until all duties of the Warrant Agent hereunder shall be finally and fully performed, except any such expense or
disbursement in connection with or related to or required to be made as a result of the negligence, wilful misconduct or bad faith of the Warrant Agent. 
  

	6.3	Performance of Covenants by Warrant Agent 

  
 Subject to section 10.6, if the Company shall fail to perform any of its covenants contained in this indenture, the Warrant Agent may notify the Special
Warrantholders of the failure on the part of the Company or may itself perform any of the said covenants capable of being performed by it, but shall be under no obligation to 

  

 23 

 
do so or to notify the Special Warrantholders. All reasonable sums expended or advanced by the Warrant Agent in so doing shall be repayable as provided in
section 6.2. No such performance, expenditure or advance by the Warrant Agent shall be deemed to relieve the Company of any default hereunder or of its continuing obligations under the covenants herein contained. 
  
 ARTICLE 7 
  
 ENFORCEMENT 
  

	7.1	Suits by Special Warrantholders 

  
 Subject to section 8.11, all or any of the rights conferred upon a Special Warrantholder by the terms of the Special Warrants held by him and/or this
indenture may be enforced by such Special Warrantholder by appropriate legal proceedings but without prejudice to the right that is hereby conferred upon the Warrant Agent to proceed in its own name to enforce each and all of the provisions herein
contained for the benefit of the holders of the Special Warrants from time to time outstanding. The Warrant Agent shall also have the power at any time and from time to time to institute and to maintain such suits and proceedings as it may
reasonably be advised shall be necessary or advisable to preserve and protect its interests and the interests of Special Warrantholders. 
  
 ARTICLE 8 
  
 MEETINGS OF SPECIAL WARRANTHOLDERS 
  

	8.1	Right to Convene Meetings 

  
 The Warrant Agent may at any time and from time to time and shall on receipt of a written request of the Company or of a Special Warrantholders’
Request and upon being funded and indemnified to its reasonable satisfaction by the Company or by the Special Warrantholders signing the Special Warrantholders’ Request against the cost that may be incurred in connection with the calling and
holding of the meeting, convene a meeting of the Special Warrantholders. In the event of the Warrant Agent failing within 15 days after receipt of the written request of the Company or Special Warrantholders’ Request and funding and indemnity
given as aforesaid to give notice convening a meeting, the Company or the Special Warrantholders, as the case may be, may call and convene the meeting. Every meeting shall be held in the City of Toronto, Ontario or at such other place as may be
approved or determined by the Warrant Agent. 
  

	8.2	Notice 

  
 At least 14 days’ notice of any meeting shall be given to the Special Warrantholders in the manner provided by section 11.2 and a copy of the notice
shall be sent by mail to the Warrant Agent unless the meeting has been called by it and to the Company unless the meeting has been called by it. Each notice shall state the time when and the place where the meeting is to be held and shall state
briefly the general 

  

 24 

 
nature of the business to be transacted thereat and it shall not be necessary for the notice to set out the terms of any resolution to be proposed or any of
the provisions of this Article 8. The notice convening any such meeting shall be signed by an appropriate officer of the Warrant Agent or the Company or by a representative of the Special Warrantholders, as the case may be. 
  

	8.3	Chairman 

  
 A person (who need not be a Special Warrantholder) nominated in writing by the Warrant Agent shall be chairman of the meeting and if no person is so
nominated or if the person so nominated is not present within 15 minutes from the time fixed for the holding of the meeting, the Special Warrantholders present in person or by proxy shall choose a person present to be chairman. 
  

	8.4	Quorum 

  
 Subject to the provisions of section 8.12, at any meeting of the Special Warrantholders a quorum shall consist of Special Warrantholders present in person
or represented by proxy and entitled to acquire at least 20% of the aggregate number of Purchase Warrants that could be acquired pursuant to all the then outstanding Special Warrants. If a quorum of the Special Warrantholders shall not be present
within half an hour from the time fixed for holding any meeting, the meeting, if summoned by the Special Warrantholders or on a Special Warrantholders’ Request, shall be dissolved; but, subject to section 8.12, in any other case the meeting
shall stand adjourned to such day being not less than ten days later and to such place and time as may be designated by the chairman of the meeting and at least five days’ notice shall be given of such adjourned meeting. At the adjourned
meeting, the Special Warrantholders present in person or by proxy shall form a quorum and may transact the business for which the meeting was originally convened, notwithstanding that they may not be entitled to acquire at least 20% of the aggregate
number of Purchase Warrants that could be acquired pursuant to all the then outstanding Special Warrants. 
  

	8.5	Power to Adjourn 

  
 The chairman of any meeting at which a quorum of the Special Warrantholders is present may, with the consent of the meeting, adjourn the meeting and no
notice of the adjournment need be given except such notice, if any, as the meeting may prescribe. 
  

	8.6	Show of Hands 

  
 Every question submitted to a meeting shall be decided in the first place by a majority of the votes given on a show of hands except that votes on an
extraordinary resolution shall be given in the manner hereinafter provided. At any meeting, unless a poll is duly demanded as herein provided, a declaration by the chairman that a resolution has been carried or carried unanimously or by a particular
majority or lost or not carried by a particular majority shall be conclusive evidence of the fact. 
  

 25 

	8.7	Poll 

  
 On every extraordinary resolution and on any other question submitted to a meeting upon which a poll is directed by the chairman or requested by one or more of the Special Warrantholders acting in person or by proxy,
a poll shall be taken in such manner as the chairman shall direct. Questions other than those required to be determined by an extraordinary resolution shall be decided by a majority of the votes cast on a poll. 
  

	8.8	Voting 

  
 On a show of hands, every person who is present and entitled to vote, whether as a Special Warrantholder or as proxy for one or more absent Special
Warrantholders or both, shall have one vote. On a poll, each Special Warrantholder present in person or represented by proxy duly appointed by instrument in writing shall be entitled to one vote in respect of each Special Warrant then held by him. A
proxyholder need not be a Special Warrantholder. 
  

	8.9	Regulations 

  
 Subject to the provisions of this indenture, the Warrant Agent, or the Company with the approval of the Warrant Agent, from time to time, may make or vary
such regulations as they shall think fit: 
  

	 	(a)	for the issue of voting certificates by any bank, trust company or other depository satisfactory to the Warrant Agent stating that the Special Warrants specified therein have been
deposited with the depository by a named person and will remain on deposit until after the meeting, which voting certificates shall entitle the persons named therein to be present and vote at the meeting and at any adjournment thereof or to appoint
a proxy or proxies to represent them and vote for them at that meeting and at any adjournment thereof in the same manner and with the same effect as though the persons so named in the voting certificates were the actual holders of the Special
Warrants specified therein; 

  

	 	(b)	for the deposit of voting certificates and/or instruments appointing proxies at such place and time as the Warrant Agent, the Company or the Special Warrantholders convening the
meeting, as the case may be, may in the notice convening the meeting direct; 

  

	 	(c)	 for the deposit of voting certificates and/or instruments appointing proxies at some approved place or places other than the place at which the meeting is to be
held and enabling particulars of the voting certificates and/or instruments appointing proxies to be sent by mail, telecopier, cable, telex or other means of prepaid, transmitted, recorded communication before the meeting to the Company or to the
Warrant Agent at the place where the same is to 

  

 26 

	 	 
be held and for the voting of proxies so deposited as though the instruments themselves were produced at the meeting; 

  

	 	(d)	for the form of instrument appointing a proxy and the manner in which the form of proxy may be executed; and 

  

	 	(e)	generally for the calling of meetings of Special Warrantholders and the conduct of business thereat including setting a record date for Special Warrantholders entitled to receive
notice of or to vote at such meeting. 

  
 Any
regulations so made shall be binding and effective and the votes given in accordance therewith shall be valid and shall be counted. Save as the regulations may provide, the only persons who shall be recognized at any meeting as the holders of any
Special Warrants, or as entitled to vote or, subject to section 8.10, be present at the meeting in respect thereof, shall be persons who are the registered holders of Special Warrants or their duly appointed proxies. 
  

	8.10	Company, Warrant Agent and Special Warrantholders may be Represented 

  

The Company, the Warrant Agent and each of the Special Warrantholders by their respective officers, employees, or directors, as applicable, and the
counsel to the Company, the Warrant Agent and the Special Warrantholders may attend any meeting of the Special Warrantholders, but shall have no votes as such. 
  

	8.11	Powers Exercisable by Extraordinary Resolution 

  
 In addition to all other powers conferred upon them by any other provisions of this indenture or by law, the Special Warrantholders at a meeting shall
have the following powers exercisable from time to time by extraordinary resolution: 
  

	 	(a)	to agree to any modification, abrogation, alteration, compromise or arrangement of the rights of Special Warrantholders and/or the Warrant Agent in its capacity as Warrant Agent
hereunder (subject to the Warrant Agent’s approval) or on behalf of the Special Warrantholders against the Company, whether those rights arise under this indenture or the Special Warrants or otherwise except that in respect of a change in the
Exercise Period or the Special Warrant Purchase Price the amendment shall not be binding upon a Special Warrantholder who does not consent thereto; 

  

	 	(b)	to amend, alter or repeal any extraordinary resolution previously passed; 

  

	 	(c)	 to direct or authorize the Warrant Agent (subject to the Warrant Agent receiving funding and indemnity) to enforce any of the covenants on the part of the Company
contained in this indenture 

  

 27 

	 	 
or the Special Warrants or to enforce any of the rights of the Special Warrantholders in any manner specified in the extraordinary resolution or to refrain
from enforcing any such covenant or right; 

  

	 	(d)	to waive, authorize and direct the Warrant Agent to waive any default on the part of the Company in complying with any provisions of this indenture or the Special Warrants, either
unconditionally or upon any conditions specified in the extraordinary resolution; 

  

	 	(e)	to restrain any Special Warrantholder from taking or instituting any suit, action or proceeding against the Company for the enforcement of any of the covenants on the part of the
Company contained in this indenture or the Special Warrants or to enforce any of the rights of the Special Warrantholders except for a suit or action against the Company to compel payment to a Special Warrantholder in respect of monies owing to him
in accordance with the provisions of section 6.6; 

  

	 	(f)	to direct any Special Warrantholder who, as such, has brought any suit, action or proceeding to stay or discontinue or otherwise deal with the same upon payment of the costs,
charges and expenses reasonably and properly incurred by the Special Warrantholder in connection therewith; 

  

	 	(g)	to assent to any compromise or arrangement with any creditor or creditors or any class or classes of creditors, whether secured or otherwise, and with the holders of any shares or
securities of the Company, wherever such assent may be required; and 

  

	 	(h)	from time to time and at any time to remove the Warrant Agent and appoint a successor Warrant Agent. 

  

	8.12	Meaning of “Extraordinary Resolution” 

  
 (1) The expression “extraordinary resolution” when used in this indenture means, subject as hereinafter in this section and in sections
8.15 and 8.16 provided, a resolution proposed at a meeting of the Special Warrantholders duly convened for that purpose and held in accordance with the provisions of this Article 8 at which there are present in person or by proxy Special
Warrantholders entitled to acquire at least 25% of the aggregate number of Purchase Warrants that can be acquired pursuant to all the then outstanding Special Warrants and passed by the affirmative votes of Special Warrantholders entitled to acquire
not less than two-thirds of the aggregate number of Purchase Warrants that can be acquired pursuant to all the Special Warrants represented at the meeting and voted on the poll upon the resolution. 
  

 28 

 (2) If, at any meeting called for the purpose of passing an extraordinary resolution, Special
Warrantholders entitled to acquire 25% of the aggregate number of Purchase Warrants that can be acquired pursuant to all the then outstanding Special Warrants are not present in person or by proxy within half an hour after the time appointed for the
meeting, then the meeting, if convened by Special Warrantholders or on a Special Warrantholders’ Request, shall be dissolved; but in any other case it shall stand adjourned to such day, being no less than 15 or more than 60 days later and to
such place and time as may be appointed by the chairman. Not less than 10 days’ notice shall be given of the time and place of the adjourned meeting in the manner provided in section 11.2. The notice shall state that at the adjourned meeting
the Special Warrantholders present in person or by proxy shall form a quorum but it shall not be necessary to set forth the purposes for which the meeting was originally called or any other particulars. At the adjourned meeting, the Special
Warrantholders present in person or by proxy shall form a quorum and may transact the business for which the meeting was originally convened or any other particulars and a resolution proposed at the adjourned meeting and passed by the requisite vote
as provided in subsection 8.12(1) shall be an extraordinary resolution within the meaning of this indenture notwithstanding that Special Warrantholders entitled to acquire 25% of the aggregate number of Purchase Warrants that can be acquired
pursuant to all the then outstanding Special Warrants are not present in person or by proxy at the adjourned meeting. 
  
 (3) Votes on an extraordinary resolution shall always be given on a poll and no demand for a poll on an extraordinary resolution shall be necessary.

  

	8.13	Powers Cumulative 

  
 It is hereby declared and agreed that any one or more of the powers or any combination of the powers in this indenture stated to be exercisable by the
Special Warrantholders by extraordinary resolution or otherwise may be exercised from time to time and the exercise of any one or more of the powers or any combination of the powers from time to time shall not be deemed to exhaust the right of the
Special Warrantholders to exercise that power or those powers or combination of powers then or any other power or powers or combination of powers thereafter from time to time. 
  

	8.14	Minutes 

  
 Minutes of all resolutions and proceedings at every meeting of Special Warrantholders as aforesaid shall be made and duly entered in books to be provided
for that purpose by the Warrant Agent at the expense of the Company and any minutes as aforesaid, if signed by the chairman of the meeting at which resolutions were passed or proceedings had, or by the chairman of the next succeeding meeting of the
Special Warrantholders, shall be prima facie evidence of the matters therein stated and, until the contrary is proved, every meeting, in respect of the proceedings of which minutes shall have been made, shall be deemed to have been duly convened and
held, and all resolutions passed thereat or proceedings taken, to have been duly passed and taken. 
  

 29 

	8.15	Instruments in Writing 

  
 All actions that may be taken and all powers that may be exercised by the Special Warrantholders at a meeting held as hereinbefore in this Article 8
provided may also be taken and exercised by Special Warrantholders entitled to acquire two-thirds of the aggregate number of Purchase Warrants that can be acquired pursuant to all the then outstanding Special Warrants by an instrument in writing
signed in one or more counterparts by Special Warrantholders in person or by attorney duly appointed in writing and the expression “extraordinary resolution” when used in this indenture shall include an instrument so signed. 
  

	8.16	Binding Effect of Resolutions 

  
 Subject to subsection 8.11(a), every resolution and every extraordinary resolution passed in accordance with the provisions of this Article 8 at a meeting
of Special Warrantholders shall be binding upon all the Special Warrantholders, whether present at or absent from the meeting, and every instrument in writing signed by Special Warrantholders in accordance with section 8.15 shall be binding upon all
the Special Warrantholders, whether signatories thereto or not, and each and every Special Warrantholder and the Warrant Agent (subject to the provisions for its funding and indemnity herein contained) shall be bound to give effect accordingly to
every resolution and instrument in writing passed or executed in accordance with these provisions. 
  

	8.17	Holdings by Company Disregarded 

  
 In determining whether the requisite number of Special Warrantholders are present at a meeting of Special Warrantholders for the purpose of obtaining a
quorum or have voted or consented to any resolution, extraordinary resolution, consent, waiver, Special Warrantholders’ Request or other action under this indenture, Special Warrants owned by the Company, its subsidiaries and any partnership of
which the Company is directly or indirectly a party to shall be deemed to be not outstanding. The Company shall provide, upon the written request of the Warrant Agent, a certificate as to the registration particulars of any Special Warrants held by
the Company. 
  
 ARTICLE 9 
  
 SUPPLEMENTAL INDENTURES AND SUCCESSOR COMPANIES 
  

	9.1	Provision for Supplemental Indentures for Certain Purposes 

  
 From time to time the Company (if properly authorized by its directors) and the Warrant Agent may, subject to the provisions hereof, and they shall, when
so directed hereby, execute and deliver by their proper officers, indentures or instruments supplemental hereto, which thereafter shall form part hereof, for any one or more or all of the following purposes: 
  

	 	(a)	providing for the issuance of additional Special Warrants hereunder and any consequential amendments hereto as may be required by the Warrant Agent, and as directed by the Company;

  

 30 

	 	(b)	adding to the provisions hereof such additional covenants and enforcement provisions as, in the opinion of counsel, are necessary or advisable, provided that the same are not in the
opinion of the Warrant Agent, relying on the advice of counsel, prejudicial to the interests of the Special Warrantholders as a group; 

  

	 	(c)	giving effect to any extraordinary resolution passed as provided in Article 8; 

  

	 	(d)	making such provisions not inconsistent with this indenture as may be necessary or desirable with respect to matters or questions arising hereunder provided that such provisions are
not, in the opinion of the Warrant Agent, relying on the advice of counsel, prejudicial to the interests of the Special Warrantholders as a group; 

  

	 	(e)	adding to or amending the provisions hereof in respect of the transfer of Special Warrants, making provision for the exchange of Special Warrants and making any modification in the
form of the Special Warrant Certificates that does not affect the substance thereof; 

  

	 	(f)	amending any of the provisions of this indenture or relieving the Company from any of the obligations, conditions or restrictions herein contained, provided that no such amendment
or relief shall be or become operative or effective if, in the opinion of the Warrant Agent, relying on the advice of counsel, such amendment or relief impairs any of the rights of the Special Warrantholders, as a group or of the Warrant Agent, and
provided further that the Warrant Agent may in its sole discretion decline to enter into any supplemental indenture that in its opinion may not afford adequate protection to the Warrant Agent when the same shall become operative; and

  

	 	(g)	for any other purpose not inconsistent with the terms of this indenture, including the correction or rectification of any ambiguities, defective or inconsistent provisions, errors
or omissions herein, provided that, in the opinion of the Warrant Agent, relying on the advice of counsel, the rights of the Warrant Agent and the Special Warrantholders as a group are in no way prejudiced thereby. 

  

 31 

	9.2	Successor Companies 

  
 In the case of the amalgamation, consolidation, merger or transfer of the undertaking or assets of the Company as an entirety or substantially as an
entirety to another person (a “successor company”), the successor company resulting from the amalgamation, consolidation, merger or transfer (if not the Company) shall be bound by the provisions hereof and all obligations for
the due and punctual performance and observance of each and every covenant and obligation contained in this indenture to be performed by the Company and the successor company shall by supplemental indenture satisfactory in form to the Warrant Agent
and executed and delivered to the Warrant Agent, expressly assume those obligations. 
  
 ARTICLE 10 
  
 CONCERNING
THE WARRANT AGENT 
  

	10.1	Trust Indenture Legislation 

  
 (1) If and to the extent that any provision of this indenture limits, qualifies or conflicts with a mandatory requirement of Applicable Legislation, such
mandatory requirement shall prevail. 
  
 (2) The Company and the
Warrant Agent agree that each will at all times in relation to this indenture and any action to be taken hereunder observe and comply with and be entitled to the benefits of Applicable Legislation. 
  

	10.2	Rights and Duties of Warrant Agent 

  
 (1) In the exercise of the rights and duties prescribed or conferred by the terms of this indenture, the Warrant Agent shall act honestly and in good
faith with a view to the best interests of the Special Warrantholders and shall exercise the degree of care, diligence and skill that a reasonably prudent trustee would exercise in comparable circumstances. No provision of this indenture shall be
construed to relieve the Warrant Agent from, or require any other person to indemnify the Warrant Agent against liability for its own gross negligence, wilful misconduct or bad faith. 
  
 (2) The Warrant Agent shall not be bound to do or take any act, action or proceeding for the enforcement of any of the
obligations of the Company under this indenture unless and until it shall have received a Special Warrantholder’s Request specifying the act, action or proceeding that the Warrant Agent is requested to take. The obligation of the Warrant Agent
to commence or continue any act, action or proceeding for the purpose of enforcing any rights of the Warrant Agent or the Special Warrantholders hereunder shall be conditional upon the Special Warrantholders furnishing, when required by notice in
writing by the Warrant Agent, sufficient funds to commence or continue the act, action or proceeding and an indemnity reasonably satisfactory to the Warrant Agent and its counsel to protect and hold harmless the Warrant Agent, its directors, 

  

 32 

 
officers, employees and agents against the costs, charges and expenses and liabilities to be incurred thereby and any loss and damage it may suffer by reason
thereof. None of the provisions contained in this indenture shall require the Warrant Agent to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties or in the exercise of any of its rights or
powers unless indemnified and funded as aforesaid. 
  
 (3) The
Warrant Agent may, before commencing any act, action or proceeding or at any time during the continuance thereof, require the Special Warrantholders at whose instance it is acting to deposit with the Warrant Agent the Special Warrant Certificates
held by them, for which Special Warrant Certificates the Warrant Agent shall issue receipts. 
  
 (4) Every provision of this indenture that, by its terms, relieves the Warrant Agent of liability or entitles it to rely upon any evidence submitted by it, is subject to the provisions of Applicable Legislation, of
this section 10.2 and section 10.3. 
  
 (5) The Warrant Agent
shall not be bound to give any notice or do or take any act, action or proceeding by virtue of the powers conferred on it hereunder unless and until it shall have been required to do so under the terms hereof; nor shall the Warrant Agent be required
to take notice of any default hereunder, unless and until notified in writing of such default, which notice shall specifically set out the default desired to be brought to the attention of the Warrant Agent and in the absence of such notice the
Warrant Agent may for all purposes of this indenture conclusively assume that no default has occurred or been made in the performance or observance of the representations, warranties and covenants, agreements or conditions herein contained. Any such
notice shall in no way limit any discretion herein given to the Warrant Agent to determine whether or not the Warrant Agent shall take action with respect to any default. 
  
 (6) In this indenture, whenever confirmations or instructions are required to be given to the Warrant Agent, in order to be
valid, such confirmations and instructions shall be in writing. 
  
 (7) The obligation of the Warrant Agent to commence or continue any act, action or proceeding for the purpose of enforcing any rights of the Warrant Agent or the holders hereunder shall be conditional upon the holders furnishing, when
required by notice in writing by the Warrant Agent, sufficient funds to commence or continue such act, action or proceeding and indemnity reasonably satisfactory to the Warrant Agent to protect and hold harmless the Warrant Agent against the costs,
charges and expenses and liabilities to be incurred thereby and any loss and damage it may suffer by reason thereof. None of the provisions contained in this indenture shall require the Warrant Agent to risk or expend its own funds or otherwise
incur financial liability in the performance of any of its duties or in the exercise of any of its rights or powers unless funded and indemnified as aforesaid. 
  

 33 

	10.3	Evidence, Experts and Advisers 

  
 (1) In addition to the reports, certificates, opinions and other evidence required by this indenture, the Company shall furnish to the Warrant Agent such
additional evidence of compliance with any provision hereof and in such form as may be prescribed by Applicable Legislation or as the Warrant Agent may reasonably require by written notice to the Company. 
  
 (2) In the exercise of its rights and duties hereunder, the Warrant Agent
may, if it is acting in good faith, act and rely absolutely as to the truth of the statements and the accuracy of the opinions expressed therein, upon statutory declarations, opinions, reports, written requests, consents, or orders of the Company,
certificates of the Company or other evidence furnished to the Warrant Agent pursuant to any provision hereof or of Applicable Legislation or pursuant to a request of the Warrant Agent. The Warrant Agent shall be under no responsibility in respect
of the validity of this indenture or the execution and delivery hereof by or on behalf of the Company or in respect of the validity or the execution of any Special Warrant Certificate by the Company and issued hereunder, nor shall it be responsible
for any breach by the Company of any covenant or condition contained in this indenture or in any such Special Warrant Certificate; nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or
reservation of any securities to be issued upon the right to acquire provided for in this indenture and/or in any Special Warrant Certificate or as to whether any securities will when issued be duly authorized or be validly issued and fully paid and
non assessable. 
  
 (3) Whenever Applicable Legislation requires
that evidence referred to in subsection 10.3(1) be in the form of a statutory declaration, the Warrant Agent may accept the statutory declaration in lieu of a certificate of the Company required by any provision hereof. Any such statutory
declaration may be made by one or more of the directors or officers of the Company and may be relied upon by the Warrant Agent in good faith without further inquiry. 
  
 (4) Proof of the execution of an instrument in writing, including a Special Warrantholders’ Request, by any Special
Warrantholder may be made by a certificate of a notary public or other person with similar powers that the person signing such instrument acknowledged to him the execution thereof, or by an affidavit of a witness to such execution or in any other
manner that the Warrant Agent may consider adequate and in respect of a corporate Special Warrantholder, shall include a certificate of incumbency of such Special Warrantholder together with a certified resolution authorizing the person who signs
such instrument to sign such instrument. 
  
 (5) The Warrant
Agent may act and rely and shall be protected in acting and relying upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, letter, telegram, cablegram or other paper 

  

 34 

 
document believed by it to be genuine and to have been signed, sent or presented by or on behalf of the proper party or parties. 
  
 (6) The Warrant Agent may employ or retain such counsel, accountants,
engineers, appraisers or other experts or advisers as it may reasonably require for the purpose of determining and discharging its duties hereunder and may pay reasonable remuneration for all services so performed by any of them, without taxation of
costs of any counsel and shall not be responsible for any misconduct on the part of any of them who has been selected with due care by the Warrant Agent. Any reasonable remuneration paid by the Warrant Agent shall be paid by the Company in
accordance with section 6.2. 
  
 (7) The Warrant Agent may act
and rely and shall be protected in acting and relying or not acting in good faith on the opinion or advice of or information obtained from any counsel, accountant, appraiser, engineer or other expert or advisor, whether retained or employed by the
Company or the Warrant Agent, in relation to any matter arising in the administration of the trusts hereof. 
  
 (8) The Warrant Agent may, as a condition precedent to any action to be taken by it under this indenture, require such opinions, statutory declarations,
reports, certificates or other evidence as it, acting reasonably, considers necessary or advisable in the circumstances. 
  

	10.4	Action by Warrant Agent to Protect Interests 

  
 Subject to the provisions of this indenture and Applicable Legislation, the Warrant Agent shall have power to institute and to maintain such actions and
proceedings as it may consider necessary or expedient to preserve, protect or enforce its interests and the interests of the Special Warrantholders. 
  

	10.5	Warrant Agent not Required to Give Security 

  
 The Warrant Agent shall not be required to give any bond or security in respect of the execution of the trusts and powers of this indenture or otherwise,
subject to section 10.8. 
  

	10.6	Protection of Warrant Agent 

  
 By way of supplement to the provisions of any law for the time being relating to trustees, it is expressly declared and agreed as follows: 
  
 (1) The Warrant Agent shall not be liable for or by reason of any
representations, statements of fact or recitals of the Company in this indenture or in the Special Warrants (except the representation contained in section 10.9 or in the certificate of the Warrant Agent on the Special Warrants) or be required to
verify the same and all such statements of fact or recitals are and shall be deemed to be made by the Company (except the representation contained in section 10.9 or in the certificate of the Warrant Agent on the Special Warrants). 
  

 35 

 (2) Nothing herein contained shall impose any obligation on the Warrant Agent to see to or to require
evidence of the registration or filing (or renewal thereof) of this indenture or any instrument ancillary or supplemental hereto. 
  
 (3) The Warrant Agent shall not be bound to give notice to any person or persons of the execution hereof. 
  
 (4) The Warrant Agent shall not incur any liability or responsibility
whatsoever or be in any way responsible for the consequence of any breach on the part of the Company of any of the covenants or warranties herein contained or of any acts of any directors, officers, employees, agents or servants of the Company.

  
 (5) Without limiting any protection or indemnity of the
Warrant Agent under any other provision hereof, or otherwise at law, the Company hereby agrees to indemnify and hold harmless the Warrant Agent and its directors, officers, agents and employees from and against any and all liabilities, losses,
damages, penalties, claims, actions, suits, costs, expenses and disbursements, including reasonable legal or advisor fees and disbursements, of whatever kind and nature that may at any time be imposed on, incurred by or asserted against the Warrant
Agent in connection with the performance of its duties and obligations hereunder, other than such liabilities, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements arising by reason of the gross negligence, fraud or
wilful misconduct of the Warrant Agent. This provision shall survive the resignation or removal of the Warrant Agent, or the termination of this indenture. The Warrant Agent shall not be under any obligation to prosecute or defend any action or suit
in respect of this indenture which, in the opinion of its counsel, may involve it in expense or liability, unless the Company shall, so often as required, furnish the Warrant Agent with satisfactory indemnity and funding against such expense or
liability. 
  

	10.7	Replacement of Warrant Agent 

  
 (1) The Warrant Agent may resign its trust and be discharged from all further duties and liabilities hereunder by giving to the Company not less than 60
days’ notice in writing or such shorter notice as the Company may accept as sufficient. The Special Warrantholders by extraordinary resolution shall have the power at any time to remove the Warrant Agent and to appoint a new Warrant Agent. In
the event of the Warrant Agent resigning or being removed as aforesaid or being dissolved, becoming bankrupt, going into liquidation or otherwise becoming incapable of acting hereunder, the Company shall forthwith appoint a new Warrant Agent unless
a new Warrant Agent has already been appointed by the Special Warrantholders; failing that appointment by the Company, the retiring Warrant Agent (at the Company’s expense) or any Special Warrantholder may apply to a justice of the Ontario
Superior Court of Justice, on such notice as the justice may direct, for the appointment of a new Warrant Agent; but any new Warrant Agent so appointed by the Company or by the Court shall be subject to removal as aforesaid by the Special
Warrantholders. Any new Warrant Agent 

  

 36 

 
appointed under any provision of this section shall be a corporation authorized to carry on the business of a trust company in the Province of Ontario, and
if required by the Applicable Legislation of any other province, in such other province. On any such appointment the new Warrant Agent shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named
herein as Warrant Agent without any further assurance, conveyance, act or deed; but there shall be immediately executed, at the expense of the Company, all such conveyances or other instruments as may, in the opinion of counsel, be necessary or
advisable for the purpose of assuring the same to the new Warrant Agent, provided that any resignation or removal of the Warrant Agent and appointment of a successor Warrant Agent shall not become effective until the successor Warrant Agent shall
have executed an appropriate instrument accepting such appointment and, at the request of the Company, the predecessor Warrant Agent, upon payment of its outstanding remuneration and expenses, shall execute and deliver to the successor Warrant Agent
an appropriate instrument transferring to such successor Warrant Agent all rights and powers of the Warrant Agent hereunder and all securities, documents of title and other instruments and all monies and properties held by the Warrant Agent
hereunder. 
  
 (2) Upon the appointment of a successor warrant
agent, the Company shall promptly notify the Special Warrantholders thereof in the manner provided for in section 11.2. 
  
 (3) Any corporation into or with which the Warrant Agent may be merged or consolidated or amalgamated, or any corporation succeeding to the stock transfer
business of the Warrant Agent, shall be the successor to the Warrant Agent hereunder without any further act on its part or of any of the parties hereto, provided that such corporation would be eligible for appointment as a new warrant agent under
subsection 10.8(1). 
  
 (4) Any Special Warrants certified but
not delivered by a predecessor Warrant Agent may be certified by the new or successor warrant agent in the name of the predecessor or the new or successor warrant agent. 
  

	10.8	Conflict of Interest 

  
 (1) The Warrant Agent represents to the Company that at the time of the execution and delivery hereof no material conflict of interest exists which it is
aware of in the Warrant Agent’s role as a fiduciary hereunder and agrees that in the event of a material conflict of interest arising that it becomes aware of hereafter it will, within 90 days after ascertaining that it has a material conflict
of interest, either eliminate the same or resign as Warrant Agent hereunder. 
  
 (2) Subject to subsection 10.9(1), the Warrant Agent, in its personal or any other capacity, may buy, lend upon and deal in securities of the Company, may act as registrar and transfer agent for the Common Shares and
generally may 

  

 37 

 
contract and enter into financial transactions with the Company, all without being liable to account for any profit made thereby. 
  

	10.9	Acceptance of Trusts 

  
 The Warrant Agent hereby accepts the trusts in this indenture declared and provided for, agrees to perform the same upon the terms and conditions set
forth herein and agrees to hold all rights, interests and benefits contained herein for and on behalf of those persons who become holders of Special Warrants from time to time issued pursuant to this indenture. 
  

	10.10	Warrant Agent Not to be Appointed Receiver 

  
 The Warrant Agent and any person related to the Warrant Agent shall not be appointed a receiver or receiver and manager or liquidator of all or any part
of the assets or undertaking of the Company, any subsidiary of the Company or any partnership of which the Company is directly or indirectly involved. 
  

	10.11	Authorization to Carry on Business 

  
 The Warrant Agent represents to the Company that it is registered to carry on the business of a trust company in each of the provinces of Canada.

  
 ARTICLE 11 
  
 GENERAL 
  

	11.1	Notice to the Company and the Warrant Agent 

  
 (1) Unless herein otherwise expressly provided, any notice to be given hereunder to the Company or the Warrant Agent shall be deemed to be validly given
if delivered or if sent by registered mail, postage prepaid or if transmitted by telecopier: 
  

	 	(a)	If to the Company, to: 

  
 Peru Copper Inc. 
 Suite 1600 
 777 Dunsmuir Street 
 Vancouver, British
Columbia 
 V7Y 1KY 
  
 Attention:     Chief Executive Officer 
 Telefax No.:  (604) 688-0094 
  

 38 

 with a copy to: 
  
 Cassels Brock & Blackwell LLP 
 40 King Street West 
 Suite 2100 
 Toronto, Ontario M5H 3C2 
  
 Attention:     Mark T. Bennett 
 Telefax No.:  (416) 350-6933 
  

	 	(b)	If to the Warrant Agent, to: 

  
 Computershare Trust Company of Canada 
 100
University Avenue, 9th Floor 
 Toronto, Ontario 
 M5J 2Y1 
  
 Attention:     Manager, Corporate Trust 
 Telefax No.:  (416) 981-9777 
  
 and any notice given in accordance with the foregoing shall be deemed to have been received on the date of delivery if that day is a Business Day or, if mailed, on the
fifth Business Day following the date of the postmark on such notice or, if transmitted by telecopier, on the day following the transmission. 
  
 (2) The Company or the Warrant Agent, as the case may be, may from time to time notify the other in the manner provided in subsection 11.1(1) of a change
of address which, from the effective date of such notice and until changed by like notice, shall be the address of the Company or the Warrant Agent, as the case may be, for all purposes of this indenture. A copy of any notice of change of address
given pursuant to this subsection 11.1(2) shall be available for inspection at the principal stock transfer office of the Warrant Agent in the City of Toronto, Ontario by Special Warrantholders during normal business hours. 
  
 (3) If, by reason of a strike, lockout or other work stoppage, actual or
threatened, involving postal employees, any notice to be given to the Warrant Agent or to the Company hereunder could reasonably be considered unlikely to reach its destination, the notice shall be valid and effective only if it is delivered to an
officer of the party to which it is addressed or if it is delivered to that party at the appropriate address provided in subsection 11.1(1) by cable, telegram, telex, telecopier or other means of prepaid, transmitted or recorded communication and
any notice delivered in accordance with the foregoing shall be deemed to have been received on the date of delivery to the officer or if delivered by cable, telegram, telex, telecopier or other means of prepaid, transmitted, recorded communication
on the third Business Day following the date of the sending of the notice by the person giving the notice. 
  

 39 

	11.2	Notice to the Special Warrantholders 

  
 (1) Unless herein otherwise expressly provided, any notice to be given hereunder to Special Warrantholders shall be deemed to be validly given if the notice is sent by
first class mail, postage prepaid, addressed to the holder or delivered by hand (or so mailed to certain holders and so delivered to other holders) at their respective addresses appearing on the register maintained by the Warrant Agent and if in the
case of joint holders of any Special Warrants more than one address appears on the register in respect of that joint holding, the notice shall be addressed or delivered, as the case may be, only to the first address, as the case may be, so
appearing. Any notice so given shall be deemed to have been given on the day of delivery by hand or on the next Business Day if delivered by mail. 
  
 (2) If, by reason of strike, lockout or other work stoppage, actual or threatened, involving postal employees, any notice to be given to the Special Warrantholders could
reasonably be considered unlikely to reach its destination, the notice may be published or distributed once in the Report on Business section of the national edition of The Globe and Mail newspaper or, in the event of a disruption in the circular of
that newspaper, once in a daily newspaper in the English language of general circulation in the City of Toronto, Ontario; provided that in the case of a notice convening a meeting of the holders of Special Warrants, the Warrant Agent may require
such additional publications of that notice, in the same or in other cities or both, as it may deem necessary for the reasonable protection of the holders of Special Warrants or to comply with any applicable requirement of law or any stock exchange.
Any notice so given shall be deemed to have been given on the day on which it has been published in all of the cities in which publication was required (or first published in a city if more than one publication in that city is required). In
determining under any provision hereof, the date when notice of any meeting or other event must be given, the date of giving notice shall be included and the date of the meeting or other event shall be excluded. 
  

	11.3	Discretion of Directors 

  
 Any matter provided herein to be determined by the directors of the Company in their sole discretion and determination so made will be conclusive.

  

	11.4	Satisfaction and Discharge of Indenture 

  
 Upon the date by which Purchase Warrants shall have been delivered to Special Warrantholders to the full extent of the rights attached to all Special
Warrants theretofore certified hereunder and the monies to be paid hereunder have been paid, this indenture shall cease to be of further effect and the Warrant Agent, on demand of and at the cost and expense of the Company and upon delivery to the
Warrant Agent of a certificate of the Company stating that all conditions precedent to the satisfaction and discharge of this indenture have been complied with and upon payment to the Warrant Agent of the fees and other remuneration payable to the
Warrant Agent, the parties hereto shall execute proper instruments acknowledging satisfaction of and discharging this indenture. 
  

 40 

	11.5	Provisions of Indenture and Special Warrants for the Sole Benefit of Parties and Special Warrantholders 

  
 Nothing in this indenture or in the Special Warrants, expressed or implied,
shall give or be construed to give to any person other than the parties hereto and the Special Warrantholders any legal or equitable right, remedy or claim under this indenture, or under any covenant or provision therein contained, all such
covenants and provisions being for the sole benefit of the parties hereto and the Special Warrantholders. 
  

 41 

	11.6	Counterparts and Formal Date 

  
 This indenture may be simultaneously executed in several counterparts, each of which when so executed shall be deemed to be an original and such
counterparts together shall constitute one and the same instrument and notwithstanding their date of execution shall be deemed to bear the date set out at the top of the first page of this indenture. 
  
 IN WITNESS WHEREOF the parties hereto have executed this indenture
under the hands of their proper officers in that behalf. 
  

			
	PERU COPPER INC.
		
	Per:	 	 /s/ Illegible

	 	 	 Authorized Signing Officer

	
	COMPUTERSHARE TRUST COMPANY OF CANADA
		
	Per:	 	 /s/ Illegible

	 Authorized Signing Officer

		
	Per:	 	 /s/ Illegible

	 Authorized Signing Officer

  

 42 

  
 SCHEDULE “A”

  
 FORM OF SPECIAL WARRANT CERTIFICATE 

 
 UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THE SECURITIES SHALL NOT
TRADE THE SECURITIES BEFORE THE EARLIER OF (i) THE DATE THAT IS TWELVE MONTHS AND A DAY AFTER THE DATE THE ISSUER FIRST BECAME A REPORTING ISSUER IN ANY OF ALBERTA, BRITISH COLUMBIA, MANITOBA, NOVA SCOTIA, ONTARIO, QUEBEC AND SASKATCHEWAN, IF THE
ISSUER IS A SEDAR FILER; AND (ii) THE DATE THAT IS TWELVE MONTHS AND A DAY AFTER THE LATER OF (A) THE DISTRIBUTION DATE, AND (B) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN THE LOCAL JURISDICTION OF THE PURCHASER OF THE SECURITIES THAT ARE THE
SUBJECT OF THE TRADE. 
  
 [For U.S. Persons, persons in the United States or
persons for the account or benefit of a U.S. Person or a person in the United States, the following legend is applied in place of the foregoing] 
  
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).
THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO
THE COMPANY, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE 1933 ACT, (C) IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE 1933 ACT PROVIDED BY RULES 144 OR 144A THEREUNDER, IF
AVAILABLE, AND IN ACCORDANCE WITH APPLICABLE U.S. STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE 1933 ACT OR ANY APPLICABLE U.S. STATE SECURITIES LAWS, AND THE HOLDER HAS PRIOR TO SUCH SALE FURNISHED TO
THE CORPORATION AN OPINION TO SUCH EFFECT FROM COUNSEL OF RECOGNIZED STANDING REASONABLY SATISFACTORY TO THE COMPANY AN OPINION OF COUNSEL OF OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE COMPANY. DELIVERY OF THIS
CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA. AT ANY TIME THE COMPANY IS A “FOREIGN ISSUER” AS DEFINED IN RULE 902 UNDER THE 1933 ACT, A NEW CERTIFICATE, BEARING NO
LEGEND, THE DELIVERY OF WHICH WILL CONSTITUTE “GOOD DELIVERY” MAY BE OBTAINED FROM THE COMPANY’S TRANSFER AGENT UPON DELIVERY OF THESE CERTIFICATE AND A DULY EXECUTED DECLARATION, IN FORM SATISFACTORY TO THE COMPANY AND THE
COMPANY’S TRANSFER AGENT TO THE EFFECT THAT THE SALE OF THE SECURITIES IS BEING MADE IN COMPLIANCE WITH RULE 904 OF 

  

 
REGULATIONS UNDER THE 1933 ACT AT A TIME WHEN THE COMPANY IS A “FOREIGN ISSUER” AS DEFINED IN RULE 962 UNDER THE 1933 ACT.”; 
  
 SPECIAL WARRANTS 
 TO ACQUIRE COMMON SHARES 
 AND PURCHASE WARRANTS OF 
  
 PERU COPPER INC. 
  
 (A corporation existing under the laws of the Province of Ontario) 

 

			
	Special Warrant Certificate No. SW <>	 	Certificate for                     
                     Special Warrants, each entitling the holder to acquire one Share Purchase Warrant of Peru Copper Inc.

  
 THIS IS TO CERTIFY THAT, for value
received,                     
                     (herein called the “holder”) is entitled to receive in the manner herein provided and without further
payment therefor, subject as hereinafter provided and as more specifically set forth in the Special Warrant Indenture (defined below) one common share purchase warrant (a “Purchase Warrant”) of Peru Copper Inc. (the
“Company”), for each of the Special Warrants evidenced by this certificate. Capitalized terms used in this Special Warrant Certificate and not otherwise defined shall have the meanings ascribed to them in the Special Warrant indenture.

  
 The Special Warrants represented by this Special Warrant
Certificate are issued under and pursuant to a Special Warrant indenture (the “Special Warrant Indenture”) made as of March 18, 2004 between the Company and the Warrant Agent to which Special Warrant Indenture and any instruments
supplemental thereto reference is hereby made. For a full description of the rights of the holders of the Special Warrants and the terms and conditions upon which Special Warrants are, or are to be, issued, held, exchanged and surrendered, all to
the same effect as if the provisions of the Special Warrant Indenture and all instruments supplemental thereto were herein set forth, and to all of which provisions the holder of this Special Warrant Certificate by acceptance hereof assents.

  
 In the event of any inconsistency between the terms set forth
in this Special Warrant Certificate and the terms of the Special Warrant Indenture, the terms of the Special Warrant Indenture shall govern. 
  
 The Exercise Period shall be the period commencing on the Closing Date and terminating at 5:00 p.m. (Toronto time) on the Effective Date. 
  
 The Special Warrants represented by this Special Warrant Certificate may be
exercised by the holder during the Exercise Period by: 
  

	 	(a)	duly completing and executing the attached exercise form; and 

  

	 	(b)	surrendering this Special Warrant Certificate to the Warrant Agent at its principal office in the City of Toronto, Ontario. 

  
 If the Special Warrants represented by this Special Warrant Certificate
are exercised by the Special Warrantholder prior to the Effective Date, the Purchase Warrants issued hereunder may be subject to hold periods under applicable securities legislation and may be endorsed with legends to that effect. 
  
 If the Special Warrants represented by this Special Warrant Certificate are
exercised or are deemed to be exercised by the holder notwithstanding that the Effective Date has not occurred, any such exercise or deemed exercise shall be subject to the holder providing such assurances and executing such documents as the Company
or the Warrant Agent, acting reasonably, may require, and shall be subject to such delay as may be necessary, to ensure compliance with applicable securities legislation. The Warrant Agent is entitled to assume compliance with Securities Laws unless
otherwise notified in writing by the Company. 
  
 The holder of
this Special Warrant Certificate may, upon surrender hereof to the Warrant Agent at its principal office in the City of Toronto, Ontario, exchange this Special Warrant Certificate for other Special Warrant Certificates evidencing Special Warrants
entitling the holder to receive in the aggregate the same number of Purchase Warrants as may be acquired pursuant to the Special Warrants evidenced by this Special Warrant Certificate. If upon the Effective Date, any Special Warrants have not been
exercised by the holders thereof, such Special Warrants shall be deemed to have been exercised by the Warrant Agent on behalf of such holders without any future action on the part of the holders. 
  
 The holding of the Special Warrants evidenced by this Special Warrant
Certificate shall not constitute the holder hereof a shareholder of the Company or entitle the holder to any right or interest in respect thereof except as herein and in the Special Warrant Indenture expressly provided. 
  
 The Special Warrants evidenced by this Special Warrant Certificate may only
be transferred in accordance with applicable Securities Laws and, subject thereto, may be transferred on the register kept at the offices of the Warrant Agent by the holder hereof or the holder’s legal representatives or his or her or their
attorney duly appointed by an instrument in writing in form and execution satisfactory to the Warrant Agent only upon compliance with the conditions prescribed in the Special Warrant Indenture and upon compliance with such reasonable requirements as
the Warrant Agent may prescribe. 
  
 The Special Warrants
represented hereby and securities that may be acquired hereunder have not been registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or applicable state securities laws, and the Special Warrants evidenced
by this Certificate may not be exercised by or on behalf of any 

  

 
“U.S. person”, as such term in defined in Regulation S under the 1933 Act, or a Person within the United States unless registered under the 1933
Act or pursuant to an applicable exemption from registration under the 1933 Act and applicable state securities laws and the Company has received an opinion of counsel of recognized standing to such effect in form and substance satisfactory to the
Company; provided that an “accredited investor”, as defined in Rule 501(a) of Regulation D under the 1933 Act, that purchased Units in the Company’s private placement of Units in the United States, will not be required to deliver an
opinion of counsel in connection with the exercise of the Special Warrants that formed a part of the Units. 
  
 This Special Warrant Certificate shall not be valid for any purpose whatever unless and until it has been manually countersigned by or on behalf of the
Warrant Agent. The certification of the Warrant Agent on the Special Warrant Certificate issued hereunder shall not be construed as a representation or warranty by the Warrant Agent as to the validity of this Special Warrant Certificate (except the
due certification thereof) and the Warrant Agent shall in no respect be liable or answerable for the use made of the Special Warrants or any of them or of the consideration therefor, except as otherwise specified herein. 
  
 The parties confirm that it is their wish that this Certificate be drawn up
in English only. Les parties aux presentes confirment que c’est leur volonte que la presente convention de meme que tous les documents, y compris les avis s’y rattachant, soient rediges en anglais seulement. 
  
 Time shall be of the essence hereof. 
  
 IN WITNESS WHEREOF the Company has caused this Special Warrant Certificate to
be signed by its duly authorized officer as of the              day of March, 2004. 
  

			
	PERU COPPER INC.
		
	By:	 	 
	 	 	 Authorized Signing Officer

  

			
	 Countersigned by:

	
	COMPUTERSHARE TRUST COMPANY OF CANADA
		
	By:	 	 
	 	 	 Authorized Signing Officer

		
	 Date:
	 	 

  

  
 TRANSFER OF SPECIAL
WARRANTS 
  
 THE SPECIAL WARRANTS REPRESENTED BY THIS CERTIFICATE MAY NOT BE
TRANSFERRED TO A U.S. PERSON OR TO ANY PERSON IN THE UNITED STATES (AS DEFINED IN RULE 902(k) OF REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED) OR TO ANY PERSON FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON OR A
PERSON IN THE UNITED STATES, EXCEPT IN LIMITED CIRCUMSTANCES SPECIFIED IN THE SPECIAL WARRANT INDENTURE. 
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto: 
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
 (name) 
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
 (address) 

 
              of the
Special Warrants registered in the name of the undersigned represented by the within certificate. 
  
 DATED the              day of
                    ,
                    . 
  

	
	 Signature of Special Warrantholder

	
	 
	
	 guaranteed by:

	
	 
	
	 
	
	 Authorized Signature Number

  
 NOTE: The signature to this
transfer must correspond with the name as recorded on the Special Warrants in every particular without alteration or enlargement or any change whatever. The signature of the person executing this transfer must be guaranteed by an authorized officer
of a Canadian chartered bank or of a major Canadian trust company or by a medallion signature guarantee from a member recognized under the Signature Medallion Guarantee Program or from a similar entity in the United States, if this transfer is
executed in the United States, or in accordance with industry standards. 
  
 Deliver to: 
  
 Computershare Trust Company of Canada 
 100 University Avenue, 9th Floor

 Toronto, Ontario 
 M5J 2Y1 
  

  
 EXERCISE FORM

  
 TO: 
 Computershare Trust Company of Canada 
 100
University Avenue, 9th Floor 
 Toronto, Ontario 
 M5J 2Y1 
  
 Attention: Corporate
Actions 
  
 The undersigned holder of the within Special Warrants
hereby exercises                      of the Special Warrants represented hereby and the right provided for in such exercised Special Warrants
to receive Purchase Warrants of Peru Copper Inc. issuable pursuant to such Special Warrants. 
  
 The undersigned hereby irrevocably directs that the said Purchase Warrants be issued and delivered as follows: 
  

									
	 Name(s) in Full

	 	 	 	 Address(es)

	  	 	 	 Number(s)

					
	 	 	 	 	 	  	 	 	 
					
	 	 	 	 	 	  	 	 	 
					
	 	 	 	 	 	  	 	 	 

  
 (Please print in full the name in
which certificates are to be issued. If any of the securities are to be issued to a person or persons other than the Special Warrantholder, the Transfer of Special Warrants form must be completed and the Special Warrantholder must pay any and all
eligible transfer taxes or other government charges.) 
  
 Note: Certificates
will not be registered or delivered to an address in the United States unless Box B or Box C below is checked. 
  
 The undersigned represents, warrants and certifies as follows (one (only) of the following must be checked): 
  

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

  

	 ̈    B	 The undersigned holder (i) purchased the Special Warrants directly from Peru Copper Inc. pursuant to a written subscription agreement for the purchase of Units with
each unit consisting of one Note and one-half of 

  

	 	 
one Special Warrant, (ii) is exercising the Special Warrants solely for its own account and not on behalf of any other Person; and (iii) was an
“accredited investor”, as that term is defined in Regulation D under the U.S. Securities Act, both on the date the Special Warrants were purchased from the Company and on the date of exercise of the Special Warrants.

  

	 ̈    C.	The undersigned holder has delivered to Peru Copper Inc. an opinion of counsel (which will not be sufficient unless it is from counsel of recognized standing and in form and
substance satisfactory to Peru Copper Inc.) to the effect that an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws is available. 

  
 DATED this
                     day of
                            ,
                    . 
  

					
			
	  	 	 	 	  
	 Witness
	 	 	 	 Signature of Registered Special
 Warrantholder

			
	  	 	 	 	  
	 Witness
	 	 	 	 Name of Registered Special Warrantholder

					
			
	  	 	 	 	  
	 	 	 	 	 Address of Registered Special
 Warrantholder

			
	  	 	 	 	  
	 	 	 	 	 Social Insurance Number of Registered
 Special
Warrantholder

  

	 ̈	Please check box if these certificates are to be delivered to the office where this Special Warrant Certificate is surrendered, failing which the certificates will be mailed to the
address shown on the register. 

  
 (The Warrant
Agent may require that the signature above be guaranteed, in which event the following must be completed.) 
  

	
	 Signature of Warrantholder

	
	 

  

	
	 Guaranteed By:

	
	 
	
	 
	 Authorized Signature Number

  
 NOTE: If the signature of the
person executing their form is to be guaranteed, it must be guaranteed by an authorized officer of a Canadian chartered bank or of a major Canadian trust company or by a medallion signature guarantee from a member recognized under the Medallion
Guarantee Program or from a similar entity in the United States, if this form is executed in the Untied States, or in accordance with industry standards. 
  
 NOTE: If Box C is to be checked, holders are encouraged to consult with Peru Copper Inc. in advance to determine that the legal opinion tendered in connection with
exercise will be satisfactory in form and substance to Peru Copper Inc. 
  

  
 SCHEDULE “B”

  
 Form Of Declaration For Removal Of Legend

  

	TO:	Computershare Trust Company of Canada 

 as registrar and
transfer agent 
 for Special Warrants of Peru Copper Inc. 
  
 The undersigned (a) acknowledges that the sale of the securities of Peru Copper Inc. (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 of 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 Toronto Stock Exchange, TSX Venture Exchange or any other designated
offshore securities market as defined in Regulation S under the U.S. Securities Act 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 the securities sold in reliance on Rule 904 of the U.S. Securities Act with fungible unrestricted securities 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. 
  

											
				
	 Dated:
	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 Name of Seller

						
	 	 	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 	 	 	 	 Title:

  

  
 SCHEDULE “C”

 FORM OF NOTICE TO WARRANT AGENT 
  
 NOTICE 
  

	TO:	Computershare Trust Company of Canada (the “Warrant Agent”) 

  

Reference is made to the Special Warrant Indenture dated as of March 18, 2004 among the undersigned and the Warrant Agent (capitalized terms used
herein without definition having the meanings specified therein). 
  
 In accordance with the provisions of the Indenture we are writing to advise you that the Effective Date has occurred. 
  
 The Warrant Agent is hereby irrevocably directed and authorized to issue and deliver on behalf of the Company certificates representing · Warrants to the persons to whom such Warrants are to be issued pursuant to the Indenture following the Effective Date (which occurred on ·  , 2004), all as provided in Section 4.8 of the Indenture. The Warrants shall be deemed to be issued at the Effective Date (which is ·  , 2004 ) nothwithstanding that a certificate evidencing such Warrants has not been issued. We hereby confirm that the allotment and issue of these
Warrants has been duly authorized by all necessary action. 
  
 DATED the
                     day of
                            , 2004. 
  

			
	PERU COPPER INC.
		
	 By:
	 	 
	 	 	 Authorized Signing Officer

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