Document:

Exhibit
      10.17

    

    UNLESS
      PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
      TRADE THE SECURITY BEFORE THE DATE THAT IS APRIL 29, 2007.

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR UNDER
      ANY APPLICABLE STATE SECURITIES LAWS (THE “STATE LAWS”). THESE SECURITIES HAVE
      BEEN ACQUIRED FOR INVESTMENT PURPOSES AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED
      OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE REGISTRATION REQUIREMENTS
      OF THE SECURITIES ACT AND APPLICABLE STATE LAWS, OR PURSUANT TO APPLICABLE
      EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS WHICH MAY INCLUDE SALE THROUGH
      A
      DESIGNATED OFFSHORE SECURITIES MARKET. FURTHER, UNLESS THE SECURITIES HAVE
      BEEN
      REGISTERED UNDER THE SECURITIES ACT, THE SALE, TRANSFER, PLEDGE OR OTHER
      DISPOSITION OF THESE SECURITIES IN THE UNITED STATES IS PROHIBITED EXCEPT IN
      ACCORDANCE WITH THE PROVISIONS OF REGULATION S (RULE 901 THROUGH 905 AND THE
      PRELIMINARY NOTES) PROMULGATED UNDER THE SECURITIES
      ACT.

    

    FLOW-THROUGH
      COMPENSATION OPTIONS

    

    of

    

    YUKON
      GOLD CORPORATION, INC.

    55
      York Street, Suite 401

    Toronto,
      Ontario M5J 1R7

    416-865-9790

    (herein
      referred to as the “Corporation”)

     

    
      	No. FTCO-2006 - ·	 	
               Dated
                this 28th
                day of December 2006

            

    

     

    for

    

    ·
      [amount] FLOW-THROUGH COMPENSATION OPTION,

    entitling
      the Holder to acquire, one (1) flow-though compensation warrant (each a
“Flow-Through
      Compensation Warrant”)
      for
      each Flow-Through Compensation Option represented hereby

    

    VOID
      AFTER April 29, 2007 (the “Expiration Date”)

    

    Penson
      Financial Services Canada Inc.

    330
      Bay
      Street, Suite 711

    Toronto,
      Ontario

    M5H
      2S8

    

    on
      behalf
      of

    

    NORTHERN
      SECURITIES INC. 

    (hereinafter
      referred to as the "Holder") 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Each
      Flow-Through Compensation Option entitles the Holder to acquire one Flow-Through
      Compensation Warrant without payment of additional consideration. Each
      Flow-Through Compensation Warrant will entitle the Holder to acquire, subject
      to
      adjustment in accordance with the terms thereof, one (1) common share (a
“Common
      Share”)
      in the
      capital of the Corporation at a price of CDN.$1.05 per Common Share, until
      the
      date which is 24 months following the Closing Date. The form of certificate
      representing the Flow-Through Compensation Warrant is attached hereto as
      Schedule "B". 

    

    Flow-Through
      Compensation Options may be exercised at any time and from time to time on
      or
      before the Expiration Date, but will automatically be exercised without any
      further action on the part of the Holder at 5:00 p.m. (Toronto time) on the
      earlier of: (i) the Qualification Date (as hereinafter defined), and (ii) the
      Expiration Date (the “Automatic
      Exchange”).
      

    

    The
      terms
      and conditions which govern the Flow-Through Compensation Options are referred
      to herein.

    

    Section
      1.
      Definitions.
      The
      following words and phrases shall have the respective meanings ascribed to
      them
      as follows:

    

    "Business
      Day"
      means a
      day other than a Saturday, Sunday or any other day on which the principal
      chartered banks located in Toronto are not open for business.

    

    "Closing
      Date"
      means
      the date of issue of the Flow-Through Compensation Options.

    

    "Final
      Receipt"
      means
      the final MRRS decision document issued in accordance with the Mutual Reliance
      Review System evidencing that final receipts for the Prospectus. 

    

    "Prospectus"
      means a
      final short form prospectus in respect of the distribution of the Flow-Through
      Compensation Warrants issuable upon the exercise of the Flow-Through
      Compensation Options.

    

    "Qualification
      Date"
      means
      the third Business Day after the later of (i) the date of issuance of a Final
      Receipt and (ii) the clearance of a Registration Statement. 

    

    "Registration
      Statement"
      means
      the registration statement to be filed by the Corporation with the SEC with
      respect to the Common Shares. 

    

    “SEC”
      means
      the United States Securities and Exchange Commission. 

    

    Section
      2.
      Increase
      of Flow-Through Compensation Warrants.
      If the
      Qualification Date has not occurred by 5:00 p.m. (Toronto time) on the date
      which is 60 days from the Closing Date, each holder of Flow-Through Compensation
      Options shall thereafter be entitled to receive, upon the exercise or deemed
      exercise of the Flow-Through Compensation Options, 1.1 Flow-Through Compensation
      Warrants for every Flow-Through Compensation Option then held by the Holder
      (in
      lieu of the one Flow-Through Compensation Warrant) for no additional
      consideration. 

    

    Section
      3.
      Exercise
      of Flow-Through Compensation Options.
      The
      Flow-Through Compensation Options may be exercised by the Holder hereof
      ("Voluntary
      Exercise"),
      in
      whole or in part (but not as to a fractional share), by the completion of the
      subscription form attached hereto as Schedule "A" and by the surrender of the
      Flow-Through Compensation Options (properly endorsed) at the office of the
      Corporation at 55 York Street, Suite 401, Toronto, Ontario M5J 1R7 (or at such
      other agency or office of the Corporation in the United States or Canada as
      it
      may designate by notice in writing to the Holder hereof at the address of the
      Holder hereof appearing on the books of the Corporation). If any Flow-Through
      Compensation Options have not been exercised prior to the Automatic Exchange,
      the Flow-Through Compensation Options shall be automatically exercised in full
      on the date of the Automatic Exchange. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    In
      the
      event of a Voluntary Exercise of the rights represented by the Flow-Through
      Compensation Options, a certificate or certificates for the Flow-Through
      Compensation Warrants so acquired, registered in the name of the Holder hereof,
      shall be delivered to the Holder hereof within a reasonable time, not exceeding
      five Business Days, after the rights represented by the Flow-Through
      Compensation Options shall have been so exercised. With respect to any such
      exercise, the Holder hereof shall for all purposes be deemed to have become
      the
      holder of record of the number of Flow-Through Compensation Warrants evidenced
      by such certificate or certificates from the date on which the Flow-Through
      Compensation Options were surrendered irrespective of the date of delivery
      of
      such certificate, except that, if the date of such surrender and payment is
      a
      date on which the stock transfer books of the Corporation are closed, such
      person shall be deemed to have become the holder of such Flow-Through
      Compensation Warrants at the close of business on the next succeeding date
      on
      which the stock transfer books are open. No fractional Flow-Through Compensation
      Warrants shall be issued upon exercise of the Flow-Through Compensation Options.
      The holder may exercise less than all of the Flow-Through Compensation Options
      evidenced by this certificate, in which event a new Flow-Through Compensation
      Option certificate representing the Flow-Through Compensation Options not then
      exercised will be issued to the Holder.

    

    In
      the event of an Automatic Exercise of the rights represented by the Flow-Through
      Compensation Options, the right of a Holder to acquire Flow-Through Compensation
      Warrants represented hereby will be deemed to have been exercised on the basis
      provided for herein (to the extent not previously exercised or repurchased).
      In
      the event of a deemed exercise of the Flow-Through Compensation Options, the
      Corporation shall within five (5) Business Days mail or cause to be mailed
      a
      Flow-Through Compensation Warrant certificate registered in the same name and
      mailed to the same address as the Flow-Through Compensation Options are
      registered.

    

    The
      registered holder will be entitled to the rights evidenced hereby free from
      all
      equities and rights of set-off or counterclaim between the Corporation and
      the
      original or any intermediate holder thereof and all persons may act accordingly,
      and the delivery to any such registered holder of the Flow-Through Compensation
      Warrants issued on exercise or deemed exercise of such Flow-Through Compensation
      Options will be a good discharge to the Corporation therefore and, unless the
      Corporation is required by statute or by an order of a court of competent
      jurisdiction, the Corporation will not be bound to inquire into the title of
      any
      such registered holder.

    

    Section
      4.
      Lost,
      Stolen, Mutilated, or Destroyed Flow-Through Compensation Option
      Certificate.
      If this
      Flow-Through Compensation Option certificate is lost, stolen, mutilated or
      destroyed, the Corporation may, on such terms as to indemnify the Corporation
      or
      otherwise as it may in its discretion reasonably impose (which shall, in the
      case of a mutilated Flow-Through Compensation Option certificate, include the
      surrender thereof), issue a new Flow-Through Compensation Option certificate
      of
      like denomination and tenor as the Flow-Through Compensation Option certificate
      so lost, stolen, mutilated or destroyed. Any such new Flow-Through Compensation
      Option certificate shall constitute an original contractual obligation of the
      Corporation, whether or not the allegedly lost, stolen, mutilated, or destroyed
      Flow-Through Compensation Option certificate shall be at any time enforceable
      by
      anyone.

    

    Section
      5.
      No
      Transfer.
      The
      rights conferred hereunder shall be non-transferable and
      non-tradeable.

     

    Section
      6.
      General
      Covenants, Representations and Warranties.
      The
      Corporation represents, warrants, covenants and agrees with the Holder that
      so
      long as any Flow-Through Compensation Option remains outstanding and may be
      exercised:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	(1)  	
              the
                Corporation is duly authorized to create and issue the Flow-Through
                Compensation Options and Flow-Through Compensation Warrants and that
                this
                Flow-Through Compensation Option certificate be valid and enforceable
                against the Corporation;

            

    

     

    
      	(2)  	
              the
                Corporation will at all times maintain its corporate existence, carry
                on
                and conduct its business in a proper and business-like manner, keep
                or
                cause to be kept proper books of account in accordance with generally
                accepted accounting practice; and

            

    

     

    
      	(3)  	
              generally,
                the Corporation will well and truly perform and carry out all acts
                and
                things to be done by it as provided in this
                certificate.

            

    

     

    Section
      7.
      Notices.
      All
      notices, requests and other communications required or permitted to be given
      or
      delivered hereunder shall be in writing, and shall be delivered, or shall be
      sent by certified or registered mail, postage prepaid and addressed, if to
      the
      Holder to such Holder at the address shown on the records of the Corporation
      or
      at such other address as shall have been furnished to the Corporation by notice
      from such Holder. All notices, requests and other communications required or
      permitted to be given or delivered hereunder shall be in writing, and shall
      be
      delivered, or shall be sent by certified or registered mail, postage prepaid
      and
      addressed to the Corporation at the offices of the Corporation at 55 York
      Street, Suite 401, Toronto, Ontario M5J 1R7, or at such other address as shall
      have been furnished to the Holder by notice from the Corporation.

    

    A
      notice
      so given by mail or so delivered will be deemed to have been given on the fifth
      Business Day after it has been mailed or on the day which it has been delivered,
      as the case may be. In determining under any provision hereof the date when
      notice of an event must be given, the date of giving notice will be included
      and
      the date of the event will be excluded.

    

    Section
      8.
      Successor
      Corporations.
      In the
      case of the consolidation, amalgamation, arrangement, merger or transfer of
      the
      undertaking or assets of the Corporation as an entirety, or substantially as
      an
      entirety, to another corporation, the successor corporation resulting from
      such
      consolidation, amalgamation, arrangement, merger or transfer (if not the
      Corporation) will be bound by the provisions hereof and for the due and punctual
      performance and observance of each and every covenant and obligation contained
      in this certificate to be performed by the Corporation

    

    Section
      9.
      Binding
      Effect.
      This
      Flow-Through Compensation Option certificate and all of its provisions shall
      enure to the benefit of the Holder and its successors and shall be binding
      upon
      the Corporation and its successors and permitted assigns. 

    

    Section
      10.
      Governing
      Law.
      This
      Flow-Through Compensation Option certificate shall be governed by the laws
      of
      the Province of Ontario and the federal laws of Canada applicable
      herein.

    

    Section
      11.
      Corporate
      Obligations Rather Than Individual.
      Subject
      as hereinafter provided, all or any of the rights conferred upon the Holder
      by
      the terms of this Flow-Through Compensation Option certificate may be enforced
      by the Holder by appropriate legal proceedings. No recourse under or upon any
      obligation, covenant or agreement contained herein shall be had against any
      shareholder, officer or director of the Corporation either directly or through
      the Corporation, it being expressly agreed and declared that the obligations
      under this Flow-Through Compensation Option certificate are solely corporate
      obligations and that no personal liability whatever shall attach to or be
      incurred by the shareholders, officers or directors of the Corporation or any
      of
      them in respect thereof, any and all rights and claims against every such
      shareholder, officer or director being hereby expressly waived as a condition
      of
      and as a consideration for the issue of the Flow-Through Compensation Options.
      The foregoing shall, with respect to the officers and directors of the
      Corporation, be subject to rights of action for damages or rescission which
      the
      Holder may have pursuant to applicable securities laws.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      12.
      Legends.
      The
      certificates representing the Flow-Through Compensation Warrants, issued upon
      exercise hereof, shall bear such legends as determined to be applicable in
      the
      sole discretion of the Corporation. 

    

    Section
      13.
      Time.
      Time
      shall be of the essence of this Flow-Through Compensation Option certificate.
      

    

    IN
      WITNESS WHEREOF
      the
      Corporation has caused this Flow-Through Compensation Option certificate to
      be
      signed by its duly authorized officer as of the date written above.

     

    
      	 	 	 
	 	YUKON
              GOLD
              CORPORATION, INC.
	 
 	 
 	 
 
	 	Per:	 
	 	
              
Authorized
              Officer 

    

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    SCHEDULE
      "A"

    

    EXERCISE
      FORM

    

    TO: YUKON
      GOLD CORPORATION, INC.

    

    The
      undersigned hereby exercises the right to acquire ____________ Flow-Through
      Compensation Warrants of Yukon Gold Corporation, Inc.

    

    The
      Flow-Through Compensation Warrants are to be issued as follows:

    

    Name:

    
       

        
          

        

      

    

    (print
      clearly)

    
       

        
          

        

      

       

        
          

        

      

    

    Address
      in full:

     

    Number
      of
      Flow-Through Compensation
      Warrants:________________________________________________

     

    
      	
              Note:

            	
              If
                any of the Flow-Through Compensation Warrants are to be issued in
                the name
                of any other person(s), please attach (and initial) a schedule giving
                these particulars.

            

    

     

    DATED
      this________day
      of________________,
      200_

     

    
      	 	 	 	 
	 	 	 	 
	
              
Signature
              Guaranteed	 	 	
              
Signature

    

     

    (Signature
      of Special Warrant Holder to be the same as appears on the face of the

    Flow-Through
      Compensation Option Certificate)

     

    
      	 	 	 	 
	
            	 	 	
              
Print
              full name

    

    
       

      
        	 	 	 	 
	
              	 	 	
                
Print
                full address

      

      
         

        
          	 	 	 	 
	
                	 	 	
                  

                  Social
                    Insurance Number

                

        

         

      

    

    (see
      Instructions on next page)

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    Instructions:

    

    
      	
              1.

            	
              The
                registered Holder may exercise its right to receive Flow-Through
                Compensation Warrants by completing this Exercise Form and surrendering
                this Exercise Form and the Flow-Through Compensation Option representing
                the Flow-Through
                Compensation Options being exercised to the Corporation at 55 York
                Street,
                Suite 401, Toronto, Ontario M5J 1R7. Certificates for Flow-Through
                Compensation Warrants will be delivered or mailed within five business
                days after receipt of the exercise of the Flow-Through Compensation
                Options.

            

    

    

    
      	
              2.

            	
              If
                the Exercise Form indicates that Flow-Through Compensation Warrants
                are to
                be issued to a person or persons other than the registered Holder
                of the
                Flow-Through Compensation Option certificate, the signature of such
                Holder
                on the Exercise Form must be guaranteed by an authorized officer
                of a
                chartered bank, trust Corporation or an investment dealer who is
                a member
                of the Medallion Stamp Guarantee Program. The guarantor must affix
                a stamp
                bearing the actual words "Signature
                Guaranteed".

            

    

    

    
      	
              3.

            	
              If
                the Exercise Form is signed by a trustee, executor, administrator,
                curator, guardian, attorney, officer of a corporation or any person
                acting
                in a judicial or representative capacity, the certificate must be
                accompanied by evidence of authority to sign satisfactory to the
                Corporation.

            

    

    

    
      	
              4.

            	
              Flow-Through
                Compensation Warrants received on the exercise of the Flow-Through
                Compensation Options may be subject to a "hold period" under applicable
                securities laws if the Special Warrants are exercised prior to the
                date on
                which a registration statement filed under the Securities Act of
                1933 as
                amended has been declared effective with respect to the Flow-Through
                Compensation Warrants of the Corporation issuable on the exercise
                of this
                Flow-Through Compensation Option certificate, and certificates
                representing such Flow-Through Compensation Warrants may, in such
                circumstances, be issued with a legend to reflect such hold
                period.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    SCHEDULE
      "B"

    

    FORM
      OF FLOW-THROUGH COMPENSATION WARRANT

    

    UNLESS
      PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
      TRADE THE SECURITY BEFORE THE DATE THAT IS APRIL 29, 2007.

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR UNDER
      ANY APPLICABLE STATE SECURITIES LAWS (THE “STATE LAWS”). THESE SECURITIES HAVE
      BEEN ACQUIRED FOR INVESTMENT PURPOSES AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED
      OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE REGISTRATION REQUIREMENTS
      OF THE SECURITIES ACT AND APPLICABLE STATE LAWS, OR PURSUANT TO APPLICABLE
      EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS WHICH MAY INCLUDE SALE THROUGH
      A
      DESIGNATED OFFSHORE SECURITIES MARKET. FURTHER, UNLESS THE SECURITIES HAVE
      BEEN
      REGISTERED UNDER THE SECURITIES ACT, THE SALE, TRANSFER, PLEDGE OR OTHER
      DISPOSITION OF THESE SECURITIES IN THE UNITED STATES IS PROHIBITED EXCEPT IN
      ACCORDANCE WITH THE PROVISIONS OF REGULATION S (RULE 901 THROUGH 905 AND THE
      PRELIMINARY NOTES) PROMULGATED UNDER THE SECURITIES ACT.

    

    FLOW-THROUGH
      COMPENSATION WARRANT

     

    December
      28, 2006.

     

    YUKON
      GOLD CORPORATION, INC.,
      a
      corporation incorporated under the laws of Delaware (the "Corporation")

     

    WHEREAS
      the
      Corporation has entered into an agreement with Northern Securities Inc. (the
      "Agent")
      dated
      effective as of the 28th
      day of
      December, 2006 (the “Agency
      Agreement”)
      in
      connection with the offering (the “Private
      Placement”)
      of
      flow-through special warrants of the Corporation (the “Flow-Through
      Special Warrants”)
      and
      unit special warrants of the Corporation (the “Unit
      Special Warrants”);
      

     

    AND
      WHEREAS the
      Corporation has agreed pursuant to the Agency Agreement to grant to the Agent
      a
      non-transferable option (the “Flow-Through
      Compensation Option”)
      to
      acquire for no additional consideration that number of the Broker's Warrants
      (defined below) equal to 7% of the number of Flow-Through Special Warrants
      issued pursuant to the Private Placement in partial consideration of the Agent's
      services performed under the Agency Agreement;

     

    NOW
      THEREFORE, THIS AGREEMENT WITNESSETH that
      in
      consideration of the premises, mutual covenants and agreements herein contained,
      it is hereby agreed by and between the parties hereto as follows:

     

    BROKER'S
      WARRANTS

     

    The
      Corporation hereby grants to the Agent, subject to the terms and conditions
      hereinafter set out, ● irrevocable flow-through compensation warrants (the
      "Broker's
      Warrants")
      to
      purchase common shares in the capital of the Corporation (“Common
      Shares”).
      Each
      Broker’s Warrant shall be exercisable on payment of the Exercise Price (as
      defined below) into one Common Share on or before the Expiry Date (as defined
      below).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXERCISE
      DATE

     

    The
      Broker's Warrants granted hereunder shall be exercised on or before the close
      of
      business on December 28th,
      2008
      (the "Expiry
      Date"),
      after
      which all rights granted hereunder shall terminate.

     

    EXERCISE
      PRICE

     

    The
      exercise price shall be the sum of $1.05 per Common Share (the "Exercise
      Price").

     

    EXERCISE
      OF WARRANT

     

    The
      Broker's Warrants granted hereunder may be exercised in whole or in part, at
      any
      time and from time to time, on or prior to 5:00 p.m. (Toronto time) on the
      Expiry Date, by the Agent giving a notice to the Corporation in writing at
      the
      address specified in the Agency Agreement, specifying therein the number of
      Common Shares in respect of which the Broker's Warrants are being exercised,
      accompanied by payment in certified cheque or bankers' draft payable to the
      Corporation at par in same day freely transferable funds in Toronto, Ontario
      in
      full payment of the purchase price for such number of Common Shares so specified
      therein.

     

    CERTIFICATES

     

    Upon
      exercise of the Broker's Warrants, the Corporation shall forthwith deliver
      to
      the Agent, or as the Agent may otherwise in writing direct in the notice of
      exercise of Broker's Warrants, within five (5) business days following the
      receipt by the Corporation of payment in immediately available funds for the
      number of Common Shares so exercised, certificates representing in the aggregate
      such number of Common Shares as the Agent may have paid for. With respect to
      any
      such exercise, the Agent shall for all purposes be deemed to have become the
      holder of record of the number of Common Shares evidenced by such certificate
      or
      certificates from the date on which this Broker's Warrant was surrendered and
      payment of the Exercise Price was made irrespective of the date of delivery
      of
      such certificate, except that, if the date of such surrender and payment is
      a
      date on which the stock transfer books of the Corporation are closed, the Agent
      shall be deemed to have become the holder of such shares at the close of
      business on the next succeeding date on which the stock transfer books are
      open.
      The Agent may exercise less than all of the Broker's Warrants evidenced by
      this
      certificate, in which event a new certificate representing the Broker's Warrants
      not then exercised will be issued to the Agent.

     

    NO
      RIGHTS OF SHAREHOLDER UNTIL EXERCISE

     

    The
      Agent
      shall have no rights whatsoever as a shareholder (including any right to receive
      dividends or other distributions to shareholders or to vote at a meeting of
      the
      shareholders of the Corporation) other than in respect of Common Shares issued
      upon the exercise of Broker's Warrants hereunder.

     

    NON-TRANSFERABLE

     

    The
      rights conferred hereunder shall be non-transferable and
      non-tradeable.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    NO
      FRACTIONAL SECURITIES

     

    No
      fractional Common Shares will be issued on exercise of these Broker's Warrants,
      or any compensation made for such fractional securities, if any.

     

    DILUTION

     

    (a)
      Definitions.
      For the
      purpose of Section 9, the words and terms defined below shall have the
      respective meanings ascribed to them as follows: 

    

    "Current
      Market Price"
      of the
      Common Shares at any date means the price per share equal to the weighted
      average price at which the Common Shares have traded on (i) the Toronto Stock
      Exchange (the "TSX"),
      (ii)
      if the Common Shares are not then listed on the TSX, on such other Canadian
      stock exchange on which the Common Shares then trades, or (iii), if the Common
      Shares are not then listed on any Canadian stock exchange, on any
      over-the-counter market on which the Common Shares traded, during the period
      of
      any twenty consecutive trading days ending not more than five (5) Business
      Days
      before such date; provided that the weighted average price shall be determined
      by dividing the aggregate sale price of all Common Shares sold on said exchange
      or market, as the case may be, during the said twenty consecutive trading days
      by the total number of Common Shares so sold; and provided further that if
      the
      Common Shares are not then listed on any Canadian stock exchange or traded
      in
      the over-the-counter market, then the Current Market Price shall be determined
      by the directors of the Corporation in their sole discretion;

    

    "director"
      means a
      director of the Corporation for the time being and, unless otherwise specified
      herein, a reference to action "by the directors" means action by the directors
      of the Corporation as a board or, whenever empowered, action by the executive
      committee of such board; and

    

    "trading
      day"
      with
      respect to a stock exchange or over-the-counter market means a day on which
      such
      stock exchange or market is open for business.

    

    (b)
       If
      at any
      time after December •, 2006 and prior to 5:00 p.m. (Toronto time) on the Expiry
      Date the Corporation shall (i) subdivide or re-divide its then outstanding
      Common Shares into a greater number of Common Shares, (ii) reduce, combine
      or
      consolidate its then outstanding Common Shares into a lesser number of Common
      Shares or (iii) issue Common Shares (or securities exchangeable for or
      convertible into Common Shares) to the holders of all or substantially all
      of
      its then outstanding Common Shares by way of a stock dividend or other
      distribution (any of such events herein called a "Common
      Stock Reorganization"),
      then
      the Exercise Price shall be adjusted effective immediately after the effective
      date of any such event in (i) or (ii) above or the record date at which the
      holders of Common Shares are determined for the purpose of any such dividend
      or
      distribution in (iii) above, as the case may be, by multiplying the Exercise
      Price in effect on such effective date or record date, as the case may be,
      by a
      fraction, the numerator of which shall be the number of Common Shares
      outstanding on such effective date or record date, as the case may be, before
      giving effect to such Common Stock Reorganization and the denominator of which
      shall be the number of Common Shares outstanding immediately after giving effect
      to such Common Stock Reorganization including, in the case where securities
      exchangeable for or convertible into Common Shares are distributed, the number
      of Common Shares that would be outstanding if such securities were exchanged
      for
      or converted into Common Shares.

    

    (c)
      If at
      any time after December •, 2006 and prior to 5:00 p.m. (Toronto time) on the
      Expiry Date the Corporation shall fix a record date for the issue or
      distribution to the holders of all or substantially all of the outstanding
      Common Shares, of rights, options or warrants pursuant to which such holders
      are
      entitled, during a period expiring not more than 45 days after the record date
      for such issue (such period being the "Rights
      Period"),
      to
      subscribe for or purchase Common Shares or securities exchangeable for or
      convertible into Common Shares at a price per share (or in the case of
      securities exchangeable for or convertible into Common Shares at an exchange
      or
      conversion price per share at the date of issue of such securities) of less
      than
      95% of the Current Market Price of the Common Shares on such record date (any
      of
      such events being herein called a "Rights
      Offering"),
      the
      Exercise Price shall be adjusted effective immediately after the record date
      for
      the Rights Offering to the amount determined by multiplying the Exercise Price
      in effect on such record date by a fraction:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (i) the
      numerator of which shall be the aggregate of

     

    
      	 	
              (A)

            	
              the
                number of Common Shares outstanding on the record date for the Rights
                Offering; and

            

    

     

    (B) the
      quotient determined by dividing

     

    
      	 	
              (I)

            	
              either
                (a) the product of the number of Common Shares offered during the
                Rights
                Period pursuant to the Rights Offering and the price at which such
                Common
                Shares are offered, or, (b) the product of the exchange or conversion
                price of the securities so offered and the number of Common Shares
                for or
                into which the securities offered pursuant to the Rights Offering
                may be
                exchanged or converted, as the case may be,
                by

            

    

     

    
      	 	
              (II)

            	
              the
                Current Market Price of the Common Shares as of the record date for
                the
                Rights Offering; and

            

    

     

    
      	 	
              (ii)

            	
              the
                denominator of which shall be the aggregate of the number of Common
                Shares
                outstanding on such record date and the number of Common Shares offered
                pursuant to the Rights Offering (including in the case of the issue
                or
                distribution of securities exchangeable for or convertible into Common
                Shares the number of Common Shares for or into which such securities
                may
                be exchanged or converted).

            

    

     

    If
      by the
      terms of the rights, options, or warrants referred to in this Subsection 9(c),
      there is more than one purchase, conversion or exchange price per share of
      Common Shares, the aggregate price of the total number of additional Common
      Shares offered for subscription or purchase, or the aggregate conversion or
      exchange price of the convertible or exchangeable securities so offered, shall
      be calculated for purposes of the adjustment on the basis of each applicable
      purchase, conversion or exchange price per Common Share, as the case may be.
      Any
      Common Shares owned by or held for the account of the Corporation shall be
      deemed not to be outstanding for the purpose of any such calculation. To the
      extent that any adjustment in the Exercise Price occurs pursuant to this
      Subsection 9(c) as a result of the fixing by the Corporation of a record date
      for the issue or distribution of rights, options or warrants referred to in
      this
      Subsection 9(c), the Exercise Price shall be readjusted immediately after the
      expiry of any relevant exchange, conversion or exercise right to the Exercise
      Price which would then be in effect based upon the number of Common Shares
      actually issued and remaining issuable after such expiry and shall be further
      readjusted in such manner upon the expiry of any further such
      right.

    

    (d) If
      at any
      time after December 28, 2006 and prior to 5:00 p.m. (Toronto time) on the Expiry
      Date, the Corporation shall fix a record date for the issue or distribution
      to
      the holders of all or substantially all of the Common Shares of:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (i) shares
      of
      the Corporation of any class other than Common Shares;

     

    
      	 	
              (ii)

            	
              rights,
                options or warrants to acquire Common Shares or securities exchangeable
                for or convertible into Common Shares (other than rights, options
                or
                warrants pursuant to which holders of Common Shares are entitled,
                during a
                period expiring not more than 45 days after the record date for such
                issue, to subscribe for or purchase Common Shares at a price per
                share (or
                in the case of securities exchangeable for or convertible into Common
                Shares at an exchange or conversion price per share at the date of
                issue
                of such securities) of at least 95% of the Current Market Price of
                the
                Common Shares on such record date);

            

    

     

    (iii) evidences
      of indebtedness of the Corporation; or

     

    
      	 	
              (iv)

            	
              any
                property or assets of the Corporation (for greater certainty, excluding
                a
                cash dividend in the ordinary
                course);

            

    

     

    and
      if
      such issue or distribution does not constitute a Common Stock Reorganization
      or
      a Rights Offering (any of such non-excluded events being herein called a
      "Special
      Distribution"),
      the
      Exercise Price shall be adjusted effective immediately after the record date
      for
      the Special Distribution to the amount determined by multiplying the Exercise
      Price in effect on the record date for the Special Distribution by a
      fraction:

    

    (A) the
      numerator of which shall be the difference between

     

    
      	 	
              (I)

            	
              the
                product of the number of Common Shares outstanding on such record
                date and
                the Current Market Price of the Common Shares on such record date,
                and

            

    

     

    
      	 	
              (II)

            	
              the
                fair value, as determined by the directors of the Corporation, to
                the
                holders of the Common Shares of the shares, rights, options, warrants,
                evidences of indebtedness or property or assets to be issued or
                distributed in the Special Distribution,
                and

            

    

     

    
      	 	
              (B)

            	
              the
                denominator of which shall be the product obtained by multiplying
                the
                number of Common Shares outstanding on such record date by the Current
                Market Price of the Common Shares on such record
                date.

            

    

     

    Any
      Common Shares owned by or held for the account of the Corporation shall be
      deemed not to be outstanding for the purpose of such calculation. To the extent
      that any adjustment in the Exercise Price occurs pursuant to this Subsection
      9(d) as a result of the fixing by the Corporation of a record date for the
      issue
      or distribution of rights, options or warrants to acquire Common Shares or
      securities exchangeable for or convertible into Common Shares referred to in
      this Subsection 9(d), the Exercise Price shall be readjusted immediately after
      the expiry of any relevant exercise, exchange or conversion right to the amount
      which would then be in effect if the fair market value had been determined
      on
      the basis of the number of Common Shares issued and remaining issuable
      immediately after such expiry, and shall be further readjusted in such manner
      upon the expiry of any further such right.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e) If
      at any
      time after December 28, 2006 and prior to 5:00 p.m. (Toronto time) on the Expiry
      Date there is a capital reorganization of the Corporation or a reclassification
      or other change in the Common Shares (other than a Common Stock Reorganization)
      or a consolidation or merger or amalgamation of the Corporation with or into
      any
      other corporation or other entity (other than a consolidation, merger or
      amalgamation which does not result in any reclassification of the outstanding
      Common Shares or a change of the Common Shares into other securities), or a
      transfer of all or substantially all of the Corporation's undertaking and assets
      to another corporation or other entity in which the holders of Common Shares
      are
      entitled to receive shares, other securities or other property (any of such
      events being called a "Capital
      Reorganization"),
      after
      the effective date of the Capital Reorganization the Agent shall be entitled
      to
      receive, and shall accept, for the same aggregate consideration, upon exercise
      of the Broker's Warrants, in lieu of the number of Common Shares to which the
      Agent was theretofore entitled upon the exercise of the Broker's Warrants,
      the
      kind and aggregate number of Common Shares and other securities or property
      resulting from the Capital Reorganization which the Agent would have been
      entitled to receive as a result of the Capital Reorganization if, on the
      effective date thereof, the Agent has been the registered holder of the number
      of Common Shares to which the Agent was theretofore entitled to purchase or
      receive upon the exercise of the Broker's Warrants. If necessary, as a result
      of
      any Capital Reorganization, appropriate adjustments shall be made in the
      application of the provisions of this Broker's Warrant certificate with respect
      to the rights and interest thereafter of the Agent to the end that the
      provisions of this Broker's Warrant certificate shall thereafter correspondingly
      be made applicable as nearly as may reasonably be possible in relation to any
      shares or other securities or property thereafter deliverable upon the exercise
      of this Broker's Warrant certificate.

     

    (f) If
      at any
      time after December 28, 2006 and prior to 5:00 p.m. (Toronto time) on the Expiry
      Date, any of the events set out in Subsections 9(a), (b), (c), (d) or (e) shall
      occur and the occurrence of such event results in an adjustment of the Exercise
      Price pursuant to the provisions of this Section 9, then the number of Common
      Shares purchasable pursuant to this Broker's Warrant shall be adjusted
      contemporaneously with the adjustment of the Exercise Price by multiplying
      the
      number of Common Shares then otherwise purchasable on the exercise thereof
      by a
      fraction, the numerator of which shall be the Exercise Price in effect
      immediately prior to the adjustment and the denominator of which shall be the
      Exercise Price resulting from such adjustment.

     

    (g) If
      the
      Corporation takes any action affecting its Common Shares to which the foregoing
      provisions of this Section 9, in the opinion of the board of directors of the
      Corporation, acting in good faith, are not strictly applicable, or if strictly
      applicable would not fairly adjust the rights of the Agent against dilution
      in
      accordance with the intent and purposes hereof, or would otherwise materially
      affect the rights of the Agent hereunder, then the Corporation shall, subject
      to
      the approval of the TSX (or such other stock exchange or quotation system on
      which the Common Shares are then listed and posted (or quoted) for trading,
      as
      applicable), execute and deliver to the Agent an amendment hereto providing
      for
      an adjustment in the application of such provisions so as to adjust such rights
      as aforesaid in such manner as the board of directors of the Corporation may
      determine to be equitable in the circumstances, acting in good faith. The
      failure of the taking of action by the board of directors of the Corporation
      to
      so provide for any adjustment on or prior to the effective date of any action
      or
      occurrence giving rise to such state of facts will be conclusive evidence that
      the board of directors has determined that it is equitable to make no adjustment
      in the circumstances

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ADJUSTMENT
      RULES

     

    The
      following rules and procedures shall be applicable to the adjustments made
      pursuant to Section 9:

    

    
      	(a)  	
              any
                Common Shares owned or held by or for the account of the Corporation
                shall
                be deemed not be to outstanding except that, for the purposes of
                Section
                9, any Common Shares owned by a pension plan or profit sharing plan
                for
                employees of the Corporation or any of its subsidiaries shall not
                be
                considered to be owned or held by or for the account of the
                Corporation;

            

    

     

    
      	(b)  	
              no
                adjustment in the Exercise Price or the number of Common Shares
                purchasable pursuant to this Broker's Warrant shall be required unless
                a
                change of at least 1% of the prevailing Exercise Price or the number
                of
                Common Shares purchasable pursuant to this Broker's Warrant would
                result,
                provided, however, that any adjustment which, except for the provisions
                of
                this Section 10(b), would otherwise have been required to be made,
                shall
                be carried forward and taken into account in any subsequent
                adjustment;

            

    

     

    
      	(c)  	
              the
                adjustments provided for in Section 9 are cumulative and shall apply
                to
                successive subdivisions, consolidations, dividends, distributions
                and
                other events resulting in any adjustment under the provisions of
                such
                Section;

            

    

     

    
      	(d)  	
              in
                the absence of a resolution of the board of directors of the Corporation
                fixing a record date for any dividend or distribution referred to
                in
                Subsection 9(a)(iii) above, the Corporation shall be deemed to have
                fixed
                as the record date therefor the date on which such dividend or
                distribution is effected;

            

    

     

    
      	(e)  	
              if
                the Corporation sets a record date to take any action and thereafter
                and
                before the taking of such action abandons its plan to take such action,
                then no adjustment to the Exercise Price will be required by reason
                of the
                setting of such record date;

            

    

     

    
      	(f)  	
              as
                a condition precedent to the taking of any action which would require
                any
                adjustment to the Broker's Warrants evidenced hereby, including the
                Exercise Price, the Corporation must take any corporate action which
                may
                be necessary in order that the Corporation shall have unissued and
                reserved in its authorized capital and may validly and legally issue
                as
                fully paid and non-assessable all of the shares or other securities
                which
                the Agent is entitled to receive on the full exercise thereof in
                accordance with the provisions
                hereof;

            

    

     

    
      	(g)  	
              forthwith,
                but no later than fourteen (14) days, after any adjustment to the
                Exercise
                Price or the number of Common Shares purchasable pursuant to the
                Broker's
                Warrants, the Corporation shall provide to the Agent a notice as
                to the
                amount of such adjustment and, in reasonable detail, describing the
                event
                requiring and the manner of computing or determining such
                adjustment;

            

    

     

    
      	(h)  	
              any
                question that at any time or from time to time arises with respect
                to the
                amount of any adjustment to the Exercise Price or other adjustment
                pursuant to Section 9 shall be conclusively determined by a firm
                of
                independent chartered accountants (who may be the Corporation's auditors)
                and shall be binding upon the Corporation and the
                Agent;

            

    

     

    
      	(i)  	
              any
                adjustment to the Exercise Price under the terms of this Broker's
                Warrant
                certificate shall be subject to the prior approval of the TSX (or
                such
                other stock exchange or quotation system on which the Common Shares
                are
                then listed and posted (or quoted) for trading, as
                applicable);

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	(j)  	
              in
                case the Corporation, after the date of issue of this Broker's Warrant
                certificate, takes any action affecting the Common Shares, other
                than an
                action described in Section 9, which in the opinion of the directors
                of
                the Corporation would materially affect the rights of the Agent,
                the
                Exercise Price will be adjusted in such manner, if any, and at such
                time,
                by action by the directors of the Corporation but subject in all
                cases to
                any necessary regulatory approval, including approval of the TSX
                (or such
                other stock exchange or quotation system on which the Common Shares
                are
                then listed and posted (or quoted) for trading, as applicable). Failure
                of
                the taking of action by the directors of the Corporation so as to
                provide
                for an adjustment on or prior to the effective date of any action
                by the
                Corporation affecting the Common Shares will be conclusive evidence
                that
                the board of directors of the Corporation has determined that it
                is
                equitable to make no adjustment in the circumstances;
                and

            

    

     

    
      	(k)  	
              on
                the happening of each and every such event set out in Section 9,
                the
                applicable provisions of this Broker's Warrant certificate, including
                the
                Exercise Price, shall, ipso
                facto,
                be deemed to be amended accordingly and the Corporation shall take
                all
                necessary action so as to comply with such provisions as so
                amended.

            

    

     

    RESERVATION
      OF TREASURY SHARES

     

    The
      Corporation shall at all times, during the term of this Agreement, reserve
      and
      keep available a sufficient number of unissued Common Shares to satisfy the
      requirements hereof.

     

    LOST,
      STOLEN, MUTILATED, OR DESTROYED BROKER'S WARRANT

     

    If
      this
      Broker's Warrant is lost, stolen, mutilated or destroyed, the Corporation may,
      on such terms as to indemnify the Corporation or otherwise as it may in its
      discretion reasonably impose (which shall, in the case of a mutilated Broker's
      Warrant, include the surrender thereof), issue a new Broker's Warrant of like
      denomination and tenor as the Broker's Warrant so lost, stolen, mutilated or
      destroyed. Any such new Broker's Warrant shall constitute an original
      contractual obligation of the Corporation, whether or not the allegedly lost,
      stolen, mutilated, or destroyed Broker's Warrant shall be at any time
      enforceable by anyone.

     

    FURTHER
      ASSURANCES

     

    The
      parties hereto covenant that they shall and will from time to time and at all
      times hereafter do and perform all such acts and things and execute all such
      additional documents as may be required to give effect to the terms and
      intention of this Agreement.

     

    ENTIRE
      AGREEMENT

     

    This
      Agreement supersedes all other agreements, documents, writings and verbal
      understandings among the parties relating to the subject matter hereof and
      represents the entire agreement between the parties relating to the subject
      matter hereof.

     

    NOTICE

     

    All
      notices, requests and other communications required or permitted to be given
      or
      delivered hereunder shall be in writing, and shall be delivered, or shall be
      sent by certified or registered mail, postage prepaid and addressed, if to
      the
      Agent at the address shown in the Agency Agreement or at such other address
      as
      shall have been furnished to the Corporation by notice from the Agent. All
      notices, requests and other communications required or permitted to be given
      or
      delivered hereunder shall be in writing, and shall be delivered, or shall be
      sent by certified or registered mail, postage prepaid and addressed to the
      Corporation at the offices of the Corporation at 55 York Street, Suite 401,
      Toronto, Ontario M5J 1R7, or at such other address as shall have been furnished
      to the Agent by notice from the Corporation.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    A
      notice
      so given by mail or so delivered will be deemed to have been given on the fifth
      business day after it has been mailed or on the day which it has been delivered,
      as the case may be. In determining under any provision hereof the date when
      notice of a meeting or other event must be given, the date of giving notice
      will
      be included and the date of the meeting or other event will be
      excluded.

     

    GOVERNING
      LAW

     

    This
      Broker's Warrant certificate shall be governed by the laws of the Province
      of
      Ontario and the federal laws of Canada applicable therein.

     

    TIME

     

    Time
      shall be of the essence of this Agreement.

     

    ENUREMENT

     

    Subject
      to the other provisions hereof, this Agreement shall enure to the benefit of
      and
      be binding upon the parties hereto and their respective heirs, executors,
      administrators, successors and permitted assigns.

     

    IN
      WITNESS WHEREOF the Corporation has cause this certificate to be signed by
      its
      duly authorized officer as of the date written above. 

    
      	 	 	 
	 	
              YUKON
                GOLD CORPORATION, INC.

            
	 
 	 
 	 
 
	 	Per:Exhibit
      10.18

    

    UNLESS
      PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
      TRADE THE SECURITY BEFORE THE DATE THAT IS APRIL 29, 2007.

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR UNDER
      ANY APPLICABLE STATE SECURITIES LAWS (THE “STATE LAWS”). THESE SECURITIES HAVE
      BEEN ACQUIRED FOR INVESTMENT PURPOSES AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED
      OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE REGISTRATION REQUIREMENTS
      OF THE SECURITIES ACT AND APPLICABLE STATE LAWS, OR PURSUANT TO APPLICABLE
      EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS WHICH MAY INCLUDE SALE THROUGH
      A
      DESIGNATED OFFSHORE SECURITIES MARKET. FURTHER, UNLESS THE SECURITIES HAVE
      BEEN
      REGISTERED UNDER THE SECURITIES ACT, THE SALE, TRANSFER, PLEDGE OR OTHER
      DISPOSITION OF THESE SECURITIES IN THE UNITED STATES IS PROHIBITED EXCEPT IN
      ACCORDANCE WITH THE PROVISIONS OF REGULATION S (RULE 901 THROUGH 905 AND THE
      PRELIMINARY NOTES) PROMULGATED UNDER THE SECURITIES ACT.

     

    UNIT
      COMPENSATION OPTIONS

    

    of

    

    YUKON
      GOLD CORPORATION, INC.

    55
      York Street, Suite 401

    Toronto,
      Ontario M5J 1R7

    416-865-9790

    (herein
      referred to as the “Corporation”)

    

    
      	
              No.
                UCO-2006-·

            	
              Dated
                this 28th
                day of December 2006

            

    

    

    for

    

    · [amount]
      UNIT COMPENSATION
      OPTION,

    entitling
      the Holder to acquire, one (1) flow-though compensation warrant (each a
“Unit
      Compensation Warrant”)
      for
      each Unit Compensation Option represented hereby

    

    VOID
      AFTER April 29, 2007 (the “Expiration Date”)

    

    Penson
      Financial Service Canada Inc.

    330
      Bay
      Street, Suite 711

    Toronto,
      Ontario

    M5H
      2S8

    

    on
      behalf
      of

    

    NORTHERN
      SECURITIES INC. 

    (hereinafter
      referred to as the "Holder") 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Each
      Unit
      Compensation Option entitles the Holder to acquire one Unit Compensation Warrant
      without payment of additional consideration. Each Unit Compensation Warrant
      will
      entitle the Holder to acquire, subject to adjustment in accordance with the
      terms thereof, one (1) unit (a “Unit”)
      of the
      Corporation at a price of CDN.$0.941 per Unit, until the date which is 24 months
      following the Closing Date. Each Unit consists of one common share in the
      capital of the Corporation (a “Common
      Share”)
      and
      one common share purchase warrant of the Corporation (a “Warrant”),
      each
      whole Warrant entitling the holder thereof to purchase one common share in
      the
      capital of the Corporation (a “Warrant
      Share”)
      at a
      price of CDN.$1.05, subject to adjustment in the circumstances set out in the
      terms of the Warrants, until the date which is 24 months following the Closing
      Date. The form of the certificate representing the Unit Compensation Warrants
      is
      attached hereto as Schedule "B" and the form of certificate representing the
      Warrants is attached hereto as Schedule “C”. Unit Compensation Options may be
      exercised at any time and from time to time on or before the Expiration Date,
      but will automatically be exercised without any further action on the part
      of
      the Holder at 5:00 p.m. (Toronto time) on the earlier of: (i) the Qualification
      Date (as hereinafter defined), and (ii) the Expiration Date (the “Automatic
      Exchange”).
      

    

    The
      terms
      and conditions which govern the Unit Compensation Options are referred to
      herein.

    

    Section
      1.
      Definitions.
      The
      following words and phrases shall have the respective meanings ascribed to
      them
      as follows:

    

    "Business
      Day"
      means a
      day other than a Saturday, Sunday or any other day on which the principal
      chartered banks located in Toronto are not open for business.

    

    "Closing
      Date"
      means
      the date of issue of the Unit Compensation Options.

    

    "Final
      Receipt"
      means
      the final MRRS decision document issued in accordance with the Mutual Reliance
      Review System evidencing that final receipts for the Prospectus. 

    

    "Prospectus"
      means a
      final short form prospectus in respect of the distribution of the Unit
      Compensation Warrants issuable upon the exercise of the Unit Compensation
      Options.

    

    "Qualification
      Date"
      means
      the third Business Day after the later of (i) the date of issuance of a Final
      Receipt and (ii) the clearance of a Registration Statement. 

    

    "Registration
      Statement"
      means
      the registration statement to be filed by the Corporation with the SEC with
      respect to the Common Shares, Warrants and Warrant Shares. 

    

    “SEC”
      means
      the United States Securities and Exchange Commission. 

    

    Section
      2.
      Increase
      of Unit Compensation Warrants.
      If the
      Qualification Date has not occurred by 5:00 p.m. (Toronto time) on the date
      which is 60 days from the Closing Date, each holder of Unit Compensation Options
      shall thereafter be entitled to receive, upon the exercise or deemed exercise
      of
      the Unit Compensation Options, 1.1 Unit Compensation Warrants for every Unit
      Compensation Option then held by the Holder (in lieu of the one Unit
      Compensation Warrant) for no additional consideration. 

    

    Section
      3.
      Exercise
      of Unit Compensation Options.
      The
      Unit Compensation Options may be exercised by the Holder hereof ("Voluntary
      Exercise"),
      in
      whole or in part (but not as to a fractional share), by the completion of the
      subscription form attached hereto as Schedule "A" and by the surrender of the
      Unit Compensation Options (properly endorsed) at the office of the Corporation
      at 55 York Street, Suite 401, Toronto, Ontario M5J 1R7 (or at such other agency
      or office of the Corporation in the United States or Canada as it may designate
      by notice in writing to the Holder hereof at the address of the Holder hereof
      appearing on the books of the Corporation). If any Unit Compensation Options
      have not been exercised prior to the Automatic Exchange, the Unit Compensation
      Options shall be automatically exercised in full on the date of the Automatic
      Exchange. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    In
      the
      event of a Voluntary Exercise of the rights represented by the Unit Compensation
      Options, a certificate or certificates for the Unit Compensation Warrants so
      acquired, registered in the name of the Holder hereof, shall be delivered to
      the
      Holder hereof within a reasonable time, not exceeding five Business Days, after
      the rights represented by the Unit Compensation Options shall have been so
      exercised. With respect to any such exercise, the Holder hereof shall for all
      purposes be deemed to have become the holder of record of the number of Unit
      Compensation Warrants evidenced by such certificate or certificates from the
      date on which the Unit Compensation Options were surrendered irrespective of
      the
      date of delivery of such certificate, except that, if the date of such surrender
      and payment is a date on which the stock transfer books of the Corporation
      are
      closed, such person shall be deemed to have become the holder of such Unit
      Compensation Warrants at the close of business on the next succeeding date
      on
      which the stock transfer books are open. No fractional Unit Compensation
      Warrants shall be issued upon exercise of the Unit Compensation Options. The
      holder may exercise less than all of the Unit Compensation Options evidenced
      by
      this certificate, in which event a new Unit Compensation Option certificate
      representing the Unit Compensation Options not then exercised will be issued
      to
      the Holder.

    

    In
      the event of an Automatic Exercise of the rights represented by the Unit
      Compensation Options, the right of a Holder to acquire Unit Compensation
      Warrants represented hereby will be deemed to have been exercised on the basis
      provided for herein (to the extent not previously exercised or repurchased).
      In
      the event of a deemed exercise of the Unit Compensation Options, the Corporation
      shall within five (5) Business Days mail or cause to be mailed a Unit
      Compensation Warrant certificate registered in the same name and mailed to
      the
      same address as the Unit Compensation Options are
      registered.

    

    The
      registered holder will be entitled to the rights evidenced hereby free from
      all
      equities and rights of set-off or counterclaim between the Corporation and
      the
      original or any intermediate holder thereof and all persons may act accordingly,
      and the delivery to any such registered holder of the Unit Compensation Warrants
      issued on exercise or deemed exercise of such Unit Compensation Options will
      be
      a good discharge to the Corporation therefore and, unless the Corporation is
      required by statute or by an order of a court of competent jurisdiction, the
      Corporation will not be bound to inquire into the title of any such registered
      holder.

    

    Section
      4.
      Lost,
      Stolen, Mutilated, or Destroyed Unit Compensation Option
      Certificate.
      If this
      Unit Compensation Option certificate is lost, stolen, mutilated or destroyed,
      the Corporation may, on such terms as to indemnify the Corporation or otherwise
      as it may in its discretion reasonably impose (which shall, in the case of
      a
      mutilated Unit Compensation Option certificate, include the surrender thereof),
      issue a new Unit Compensation Option certificate of like denomination and tenor
      as the Unit Compensation Option certificate so lost, stolen, mutilated or
      destroyed. Any such new Unit Compensation Option certificate shall constitute
      an
      original contractual obligation of the Corporation, whether or not the allegedly
      lost, stolen, mutilated, or destroyed Unit Compensation Option certificate
      shall
      be at any time enforceable by anyone.

    

    Section
      5.
      General
      Covenants, Representations and Warranties.
      The
      Corporation represents, warrants, covenants and agrees with the Holder that
      so
      long as any Unit Compensation Option remains outstanding and may be
      exercised:

     

    
      	 	
              (1)

            	
              the
                Corporation is duly authorized to create and issue the Unit Compensation
                Options and Unit Compensation Warrants and that this Unit Compensation
                Option certificate be valid and enforceable against the
                Corporation;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (2)

            	
              the
                Corporation will at all times maintain its corporate existence, carry
                on
                and conduct its business in a proper and business-like manner, keep
                or
                cause to be kept proper books of account in accordance with generally
                accepted accounting practice; and

            

    

     

    
      	 	
              (3)

            	
              generally,
                the Corporation will well and truly perform and carry out all acts
                and
                things to be done by it as provided in this
                certificate.

            

    

    

    Section
      6.
      No
      Transfer.
      The
      rights conferred hereunder shall be non-transferable and
      non-tradeable.

     

    Section
      7.
      Notices.
      All
      notices, requests and other communications required or permitted to be given
      or
      delivered hereunder shall be in writing, and shall be delivered, or shall be
      sent by certified or registered mail, postage prepaid and addressed, if to
      the
      Holder to such Holder at the address shown on the records of the Corporation
      or
      at such other address as shall have been furnished to the Corporation by notice
      from such Holder. All notices, requests and other communications required or
      permitted to be given or delivered hereunder shall be in writing, and shall
      be
      delivered, or shall be sent by certified or registered mail, postage prepaid
      and
      addressed to the Corporation at the offices of the Corporation at 55 York
      Street, Suite 401, Toronto, Ontario M5J 1R7, or at such other address as shall
      have been furnished to the Holder by notice from the Corporation.

    

    A
      notice
      so given by mail or so delivered will be deemed to have been given on the fifth
      Business Day after it has been mailed or on the day which it has been delivered,
      as the case may be. In determining under any provision hereof the date when
      notice of an event must be given, the date of giving notice will be included
      and
      the date of the event will be excluded.

    

    Section
      8.
      Successor
      Corporations.
      In the
      case of the consolidation, amalgamation, arrangement, merger or transfer of
      the
      undertaking or assets of the Corporation as an entirety, or substantially as
      an
      entirety, to another corporation, the successor corporation resulting from
      such
      consolidation, amalgamation, arrangement, merger or transfer (if not the
      Corporation) will be bound by the provisions hereof and for the due and punctual
      performance and observance of each and every covenant and obligation contained
      in this certificate to be performed by the Corporation

    

    Section
      9.
      Binding
      Effect.
      This
      Unit Compensation Option certificate and all of its provisions shall enure
      to
      the benefit of the Holder and its successors and shall be binding upon the
      Corporation and its successors and permitted assigns. 

    

    Section
      10.
      Governing
      Law.
      This
      Unit Compensation Option certificate shall be governed by the laws of the
      Province of Ontario and the federal laws of Canada applicable
      herein.

    

    Section
      11.
      Corporate
      Obligations Rather Than Individual.
      Subject
      as hereinafter provided, all or any of the rights conferred upon the Holder
      by
      the terms of this Unit Compensation Option certificate may be enforced by the
      Holder by appropriate legal proceedings. No recourse under or upon any
      obligation, covenant or agreement contained herein shall be had against any
      shareholder, officer or director of the Corporation either directly or through
      the Corporation, it being expressly agreed and declared that the obligations
      under this Unit Compensation Option certificate are solely corporate obligations
      and that no personal liability whatever shall attach to or be incurred by the
      shareholders, officers or directors of the Corporation or any of them in respect
      thereof, any and all rights and claims against every such shareholder, officer
      or director being hereby expressly waived as a condition of and as a
      consideration for the issue of the Unit Compensation Options. The foregoing
      shall, with respect to the officers and directors of the Corporation, be subject
      to rights of action for damages or rescission which the Holder may have pursuant
      to applicable securities laws.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Section
      12.
      Legends.
      The
      certificates representing the Unit Compensation Warrants, issued upon exercise
      hereof, shall bear such legends as determined to be applicable in the sole
      discretion of the Corporation. 

    

    Section
      13.
      Time.
      Time
      shall be of the essence of this Unit Compensation Option certificate.

    

    IN
      WITNESS WHEREOF
      the
      Corporation has caused this Unit Compensation Option certificate to be signed
      by
      its duly authorized officer as of the date written above.

    
      	 	 	 
	 	YUKON
              GOLD
              CORPORATION, INC.
	 
 	 
 	 
 
	
            	Per:  	
            
	 	
              
Authorized
              Officer

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      "A"

    

    EXERCISE
      FORM

    

    TO: YUKON
      GOLD CORPORATION, INC.

    

    The
      undersigned hereby exercises the right to acquire ____________ Unit Compensation
      Warrants of Yukon Gold Corporation, Inc.

    

    The
      Unit
      Compensation Warrants are to be issued as follows:

    

    Name:

        

      
        

      

    

    (print
      clearly)

    

    Address
      in full:

     

    
      

    

     

    
      

    

     

    Number
      of
      Unit Compensation Warrants: 
__________________________________________________

    

    
      	
              Note:

            	
              If
                any of the Unit Compensation Warrants are to be issued in the name
                of any
                other person(s), please attach (and initial) a schedule giving these
                particulars.

            

    

     

    DATED
      this _____
      day of
      _________________,
      2006

     

     

    
      	
              
Signature
              Guaranteed	
              
Signature

    

      

    (Signature
      of Special Warrant Holder to be the same as appears on the face of the

    Unit
      Compensation Option Certificate)

    

    
      	 	
              
                

              

              Print
                full name

            
	 	
               

              
                
 

            
	 	
               

              
                
 

            
	 	
               

              
                

              

              Print
                full address

            
	 	
               

               

              
                

              

              Social
                Insurance Number

            

    

     

    (see
      Instructions on next page)

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Instructions:

    

    
      	
              1.

            	
              The
                registered Holder may exercise its right to receive Unit Compensation
                Warrants by completing this Exercise Form and surrendering this Exercise
                Form and the Unit Compensation Option representing the Unit
                Compensation Options being exercised to the Corporation at 55 York
                Street,
                Suite 401, Toronto, Ontario M5J 1R7. Certificates for Unit Compensation
                Warrants will be delivered or mailed within five business day after
                receipt of the exercise of the Unit Compensation
                Options.

            

    

    

    
      	
              2.

            	
              If
                the Exercise Form indicates that Unit Compensation Warrants are to
                be
                issued to a person or persons other than the registered Holder of
                the Unit
                Compensation Option certificate, the signature of such Holder on
                the
                Exercise Form must be guaranteed by an authorized officer of a chartered
                bank, trust Corporation or an investment dealer who is a member of
                the
                Medallion Stamp Guarantee Program. The guarantor must affix a stamp
                bearing the actual words "Signature
                Guaranteed".

            

    

    

    
      	
              3.

            	
              If
                the Exercise Form is signed by a trustee, executor, administrator,
                curator, guardian, attorney, officer of a corporation or any person
                acting
                in a judicial or representative capacity, the certificate must be
                accompanied by evidence of authority to sign satisfactory to the
                Corporation.

            

    

    

    
      	
              4.

            	
              Unit
                Compensation Warrants received on the exercise of the Unit Compensation
                Options may be subject to a "hold period" under applicable securities
                laws
                if the Special Warrants are exercised prior to the date on which
                a
                registration statement filed under the Securities Act of 1933 as
                amended
                has been declared effective with respect to the Unit Compensation
                Warrants
                of the Corporation issuable on the exercise of this Unit Compensation
                Option certificate, and certificates representing such Unit Compensation
                Warrants may, in such circumstances, be issued with a legend to reflect
                such hold period.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    SCHEDULE
      "B"

    

    FORM
      OF UNIT COMPENSATION WARRANT

     

    UNLESS
      PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
      TRADE THE SECURITY BEFORE THE DATE THAT IS APRIL 29, 2007.

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR UNDER
      ANY APPLICABLE STATE SECURITIES LAWS (THE “STATE LAWS”). THESE SECURITIES HAVE
      BEEN ACQUIRED FOR INVESTMENT PURPOSES AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED
      OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE REGISTRATION REQUIREMENTS
      OF THE SECURITIES ACT AND APPLICABLE STATE LAWS, OR PURSUANT TO APPLICABLE
      EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS WHICH MAY INCLUDE SALE THROUGH
      A
      DESIGNATED OFFSHORE SECURITIES MARKET. FURTHER, UNLESS THE SECURITIES HAVE
      BEEN
      REGISTERED UNDER THE SECURITIES ACT, THE SALE, TRANSFER, PLEDGE OR OTHER
      DISPOSITION OF THESE SECURITIES IN THE UNITED STATES IS PROHIBITED EXCEPT IN
      ACCORDANCE WITH THE PROVISIONS OF REGULATION S (RULE 901 THROUGH 905 AND THE
      PRELIMINARY NOTES) PROMULGATED UNDER THE SECURITIES ACT.

    

    UNIT
      COMPENSATION WARRANT 

     

    December
      28, 2006.

     

    YUKON
      GOLD CORPORATION, INC.,
      a
      corporation incorporated under the laws of Delaware (the "Corporation")

     

    WHEREAS
      the
      Corporation has entered into an agreement with Northern Securities Inc. (the
      "Agent")
      dated
      effective as of the 28th
      day of
      December, 2006 (the “Agency
      Agreement”)
      in
      connection with the offering (the “Private
      Placement”)
      of
      flow-through special warrants of the Corporation (the “Flow-Through
      Special Warrants”)
      and
      unit special warrants of the Corporation (the “Unit
      Special Warrants”);
      

     

    AND
      WHEREAS the
      Corporation has agreed pursuant to the Agency Agreement to grant to the Agent
      a
      non-transferable option (the “Unit
      Compensation Option”)
      to
      acquire for no additional consideration that number of the Broker's Warrants
      (defined below) equal to 7% of the number of Unit Special Warrants issued
      pursuant to the Private Placement in partial consideration of the Agent's
      services performed under the Agency Agreement;

     

    NOW
      THEREFORE, THIS AGREEMENT WITNESSETH that
      in
      consideration of the premises, mutual covenants and agreements herein contained,
      it is hereby agreed by and between the parties hereto as follows:

     

    BROKER'S
      WARRANTS

     

    The
      Corporation hereby grants to the Agent, subject to the terms and conditions
      hereinafter set out, · irrevocable
      warrants (the "Broker's
      Warrants")
      to
      purchase units of the Corporation (“Units”).
      Each
      Broker’s Warrant shall be exercisable on payment of the Exercise Price (as
      defined below), subject to adjustment as hereinafter provided, into one Unit
      comprised of one common share of the Corporation (a "Common
      Share")
      and
      one common share purchase warrant ("Warrant")
      on or
      before the Expiry Date (as defined below). The number of Common Shares
      comprising part of each Unit (but not the number of Warrants) which the Holder
      is entitled to purchase upon the exercise or deemed exercise of the Broker
      Warrants shall be subject to adjustment as hereinafter provided.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Each
      whole Warrant will be exercisable into one Common Share at a price of $1.05
      (subject to adjustment as provided in the certificate evidencing such Warrant),
      until the date which is 24 months following the date of closing of the Private
      Placement (the “Closing
      Date”).
      The
      form of Warrant is attached as Schedule “A” to this Unit Compensation Warrant
      Agreement.

     

    EXERCISE
      DATE

     

    The
      Broker's Warrants granted hereunder shall be exercised on or before the close
      of
      business on December 28, 2008 (the "Expiry
      Date"),
      after
      which all rights granted hereunder shall terminate.

     

    EXERCISE
      PRICE

     

    The
      exercise price shall be the sum of $0.941 per Unit (the "Exercise
      Price").

     

    EXERCISE
      OF WARRANT

     

    The
      Broker's Warrants granted hereunder may be exercised in whole or in part, at
      any
      time and from time to time, on or prior to 5:00 p.m. (Toronto time) on the
      Expiry Date, by the Agent giving a notice to the Corporation in writing at
      the
      address specified in the Agency Agreement, specifying therein the number of
      Units in respect of which the Broker's Warrants are being exercised, accompanied
      by payment in certified cheque or bankers' draft payable to the Corporation
      at
      par in same day freely transferable funds in Toronto, Ontario in full payment
      of
      the purchase price for such number of Units so specified therein.

     

    CERTIFICATES

     

    Upon
      exercise of the Broker's Warrants, the Corporation shall forthwith deliver
      to
      the Agent, or as the Agent may otherwise in writing direct in the notice of
      exercise of Broker's Warrants, within five (5) business days following the
      receipt by the Corporation of payment in immediately available funds for the
      number of Units so exercised, certificates representing in the aggregate such
      number of Common Shares and Warrants comprising the Units as the Agent may
      have
      paid for. With respect to any such exercise, the Agent shall for all purposes
      be
      deemed to have become the holder of record of the number of Common Shares and
      Warrants evidenced by such certificate or certificates from the date on which
      this Broker's Warrant was surrendered and payment of the Exercise Price was
      made
      irrespective of the date of delivery of such certificate, except that, if the
      date of such surrender and payment is a date on which the stock transfer books
      of the Corporation are closed, the Agent shall be deemed to have become the
      holder of such shares at the close of business on the next succeeding date
      on
      which the stock transfer books are open. The Agent may exercise less than all
      of
      the Broker's Warrants evidenced by this certificate, in which event a new
      certificate representing the Broker's Warrants not then exercised will be issued
      to the Agent.

     

    NO
      RIGHTS OF SHAREHOLDER UNTIL EXERCISE

     

    The
      Agent
      shall have no rights whatsoever as a shareholder (including any right to receive
      dividends or other distributions to shareholders or to vote at a meeting of
      the
      shareholders of the Corporation) other than in respect of Common Shares
      comprising the Units issued upon the exercise of Broker's Warrants hereunder
      or
      upon the exercise of Warrants in accordance with the terms thereof.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    NON-TRANSFERABLE

     

    The
      rights conferred hereunder shall be non-transferable and
      non-tradeable.

     

    NO
      FRACTIONAL SECURITIES

     

    No
      fractional Common Shares or Warrants will be issued on exercise of these
      Broker's Warrants, or any compensation made for such fractional securities,
      if
      any.

     

    DILUTION

     

    (a)
      Definitions.
      For the
      purpose of Section 9, the words and terms defined below shall have the
      respective meanings ascribed to them as follows: 

    

    "Current
      Market Price"
      of the
      Common Shares at any date means the price per share equal to the weighted
      average price at which the Common Shares have traded on (i) the Toronto Stock
      Exchange (the "TSX"),
      (ii)
      if the Common Shares are not then listed on the TSX, on such other Canadian
      stock exchange on which the Common Shares then trades, or (iii), if the Common
      Shares are not then listed on any Canadian stock exchange, on any
      over-the-counter market on which the Common Shares traded, during the period
      of
      any twenty consecutive trading days ending not more than five (5) Business
      Days
      before such date; provided that the weighted average price shall be determined
      by dividing the aggregate sale price of all Common Shares sold on said exchange
      or market, as the case may be, during the said twenty consecutive trading days
      by the total number of Common Shares so sold; and provided further that if
      the
      Common Shares are not then listed on any Canadian stock exchange or traded
      in
      the over-the-counter market, then the Current Market Price shall be determined
      by the directors of the Corporation in their sole discretion;

    

    "director"
      means a
      director of the Corporation for the time being and, unless otherwise specified
      herein, a reference to action "by the directors" means action by the directors
      of the Corporation as a board or, whenever empowered, action by the executive
      committee of such board; and

    

    "trading
      day"
      with
      respect to a stock exchange or over-the-counter market means a day on which
      such
      stock exchange or market is open for business.

    

    (b)
       If
      at any
      time after December •,
      2006 and prior to 5:00 p.m. (Toronto time) on the Expiry Date the Corporation
      shall (i) subdivide or re-divide its then outstanding Common Shares into a
      greater number of Common Shares, (ii) reduce, combine or consolidate its then
      outstanding Common Shares into a lesser number of Common Shares or (iii) issue
      Common Shares (or securities exchangeable for or convertible into Common Shares)
      to the holders of all or substantially all of its then outstanding Common Shares
      by way of a stock dividend or other distribution (any of such events herein
      called a "Common
      Stock Reorganization"),
      then
      the Exercise Price shall be adjusted effective immediately after the effective
      date of any such event in (i) or (ii) above or the record date at which the
      holders of Common Shares are determined for the purpose of any such dividend
      or
      distribution in (iii) above, as the case may be, by multiplying the Exercise
      Price in effect on such effective date or record date, as the case may be,
      by a
      fraction, the numerator of which shall be the number of Common Shares
      outstanding on such effective date or record date, as the case may be, before
      giving effect to such Common Stock Reorganization and the denominator of which
      shall be the number of Common Shares outstanding immediately after giving effect
      to such Common Stock Reorganization including, in the case where securities
      exchangeable for or convertible into Common Shares are distributed, the number
      of Common Shares that would be outstanding if such securities were exchanged
      for
      or converted into Common Shares.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (c)
      If at
      any time after December •, 2006 and prior to 5:00 p.m. (Toronto time) on the
      Expiry Date the Corporation shall fix a record date for the issue or
      distribution to the holders of all or substantially all of the outstanding
      Common Shares, of rights, options or warrants pursuant to which such holders
      are
      entitled, during a period expiring not more than 45 days after the record date
      for such issue (such period being the "Rights
      Period"),
      to
      subscribe for or purchase Common Shares or securities exchangeable for or
      convertible into Common Shares at a price per share (or in the case of
      securities exchangeable for or convertible into Common Shares at an exchange
      or
      conversion price per share at the date of issue of such securities) of less
      than
      95% of the Current Market Price of the Common Shares on such record date (any
      of
      such events being herein called a "Rights
      Offering"),
      the
      Exercise Price shall be adjusted effective immediately after the record date
      for
      the Rights Offering to the amount determined by multiplying the Exercise Price
      in effect on such record date by a fraction:

    

    (i) the
      numerator of which shall be the aggregate of

     

    
      	 	
              (A)

            	
              the
                number of Common Shares outstanding on the record date for the Rights
                Offering; and

            

    

     

    
      	
            	(B)	
              the
                quotient determined by dividing

            

    

     

    
      	 	
              (I)

            	
              either
                (a) the product of the number of Common Shares offered during the
                Rights
                Period pursuant to the Rights Offering and the price at which such
                Common
                Shares are offered, or, (b) the product of the exchange or conversion
                price of the securities so offered and the number of Common Shares
                for or
                into which the securities offered pursuant to the Rights Offering
                may be
                exchanged or converted, as the case may be,
                by

            

    

     

    
      	 	
              (II)

            	
              the
                Current Market Price of the Common Shares as of the record date for
                the
                Rights Offering; and

            

    

     

    
      	 	
              (ii)

            	
              the
                denominator of which shall be the aggregate of the number of Common
                Shares
                outstanding on such record date and the number of Common Shares offered
                pursuant to the Rights Offering (including in the case of the issue
                or
                distribution of securities exchangeable for or convertible into Common
                Shares the number of Common Shares for or into which such securities
                may
                be exchanged or converted).

            

    

     

    If
      by the
      terms of the rights, options, or warrants referred to in this Subsection 9(c),
      there is more than one purchase, conversion or exchange price per share of
      Common Shares, the aggregate price of the total number of additional Common
      Shares offered for subscription or purchase, or the aggregate conversion or
      exchange price of the convertible or exchangeable securities so offered, shall
      be calculated for purposes of the adjustment on the basis of each applicable
      purchase, conversion or exchange price per Common Share, as the case may be.
      Any
      Common Shares owned by or held for the account of the Corporation shall be
      deemed not to be outstanding for the purpose of any such calculation. To the
      extent that any adjustment in the Exercise Price occurs pursuant to this
      Subsection 9(c) as a result of the fixing by the Corporation of a record date
      for the issue or distribution of rights, options or warrants referred to in
      this
      Subsection 9(c), the Exercise Price shall be readjusted immediately after the
      expiry of any relevant exchange, conversion or exercise right to the Exercise
      Price which would then be in effect based upon the number of Common Shares
      actually issued and remaining issuable after such expiry and shall be further
      readjusted in such manner upon the expiry of any further such
      right.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (d) If
      at any
      time after December •, 2006 and prior to 5:00 p.m. (Toronto time) on the Expiry
      Date, the Corporation shall fix a record date for the issue or distribution
      to
      the holders of all or substantially all of the Common Shares of:

     

    (i) shares
      of
      the Corporation of any class other than Common Shares;

     

    
      	 	
              (ii)

            	
              rights,
                options or warrants to acquire Common Shares or securities exchangeable
                for or convertible into Common Shares (other than rights, options
                or
                warrants pursuant to which holders of Common Shares are entitled,
                during a
                period expiring not more than 45 days after the record date for such
                issue, to subscribe for or purchase Common Shares at a price per
                share (or
                in the case of securities exchangeable for or convertible into Common
                Shares at an exchange or conversion price per share at the date of
                issue
                of such securities) of at least 95% of the Current Market Price of
                the
                Common Shares on such record date);

            

    

     

    
      	
            	(iii)	
              evidences
                of indebtedness of the Corporation;
                or

            

    

     

    
      	 	
              (iv)

            	
              any
                property or assets of the Corporation (for greater certainty, excluding
                a
                cash dividend in the ordinary
                course);

            

    

     

    and
      if
      such issue or distribution does not constitute a Common Stock Reorganization
      or
      a Rights Offering (any of such non-excluded events being herein called a
      "Special
      Distribution"),
      the
      Exercise Price shall be adjusted effective immediately after the record date
      for
      the Special Distribution to the amount determined by multiplying the Exercise
      Price in effect on the record date for the Special Distribution by a
      fraction:

    

    
      	
            	(A)	
              the
                numerator of which shall be the difference
                between

            

    

     

    
      	 	
              (I)

            	
              the
                product of the number of Common Shares outstanding on such record
                date and
                the Current Market Price of the Common Shares on such record date,
                and

            

    

     

    
      	 	
              (II)

            	
              the
                fair value, as determined by the directors of the Corporation, to
                the
                holders of the Common Shares of the shares, rights, options, warrants,
                evidences of indebtedness or property or assets to be issued or
                distributed in the Special Distribution,
                and

            

    

     

    
      	 	
              (B)

            	
              the
                denominator of which shall be the product obtained by multiplying
                the
                number of Common Shares outstanding on such record date by the Current
                Market Price of the Common Shares on such record
                date.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Any
      Common Shares owned by or held for the account of the Corporation shall be
      deemed not to be outstanding for the purpose of such calculation. To the extent
      that any adjustment in the Exercise Price occurs pursuant to this Subsection
      9(d) as a result of the fixing by the Corporation of a record date for the
      issue
      or distribution of rights, options or warrants to acquire Common Shares or
      securities exchangeable for or convertible into Common Shares referred to in
      this Subsection 9(d), the Exercise Price shall be readjusted immediately after
      the expiry of any relevant exercise, exchange or conversion right to the amount
      which would then be in effect if the fair market value had been determined
      on
      the basis of the number of Common Shares issued and remaining issuable
      immediately after such expiry, and shall be further readjusted in such manner
      upon the expiry of any further such right.

     

    (e) If
      at any
      time after December •, 2006 and prior to 5:00 p.m. (Toronto time) on the Expiry
      Date there is a capital reorganization of the Corporation or a reclassification
      or other change in the Common Shares (other than a Common Stock Reorganization)
      or a consolidation or merger or amalgamation of the Corporation with or into
      any
      other corporation or other entity (other than a consolidation, merger or
      amalgamation which does not result in any reclassification of the outstanding
      Common Shares or a change of the Common Shares into other securities), or a
      transfer of all or substantially all of the Corporation's undertaking and assets
      to another corporation or other entity in which the holders of Common Shares
      are
      entitled to receive shares, other securities or other property (any of such
      events being called a "Capital
      Reorganization"),
      after
      the effective date of the Capital Reorganization the Agent shall be entitled
      to
      receive, and shall accept, for the same aggregate consideration, upon exercise
      of the Broker's Warrants, in lieu of the number of Common Shares to which the
      Agent was theretofore entitled upon the exercise of the Broker's Warrants,
      the
      kind and aggregate number of Common Shares and other securities or property
      resulting from the Capital Reorganization which the Agent would have been
      entitled to receive as a result of the Capital Reorganization if, on the
      effective date thereof, the Agent has been the registered holder of the number
      of Common Shares to which the Agent was theretofore entitled to purchase or
      receive upon the exercise of the Broker's Warrants. If necessary, as a result
      of
      any Capital Reorganization, appropriate adjustments shall be made in the
      application of the provisions of this Broker's Warrant certificate with respect
      to the rights and interest thereafter of the Agent to the end that the
      provisions of this Broker's Warrant certificate shall thereafter correspondingly
      be made applicable as nearly as may reasonably be possible in relation to any
      shares or other securities or property thereafter deliverable upon the exercise
      of this Broker's Warrant certificate.

     

    (f) If
      at any
      time after December •, 2006 and prior to 5:00 p.m. (Toronto time) on the Expiry
      Date, any of the events set out in Subsections 9(a), (b), (c), (d) or (e) shall
      occur and the occurrence of such event results in an adjustment of the Exercise
      Price pursuant to the provisions of this Section 9, then the number of Common
      Shares purchasable pursuant to this Broker's Warrant shall be adjusted
      contemporaneously with the adjustment of the Exercise Price by multiplying
      the
      number of Common Shares then otherwise purchasable on the exercise thereof
      by a
      fraction, the numerator of which shall be the Exercise Price in effect
      immediately prior to the adjustment and the denominator of which shall be the
      Exercise Price resulting from such adjustment.

     

    (g) If
      the
      Corporation takes any action affecting its Common Shares to which the foregoing
      provisions of this Section 9, in the opinion of the board of directors of the
      Corporation, acting in good faith, are not strictly applicable, or if strictly
      applicable would not fairly adjust the rights of the Agent against dilution
      in
      accordance with the intent and purposes hereof, or would otherwise materially
      affect the rights of the Agent hereunder, then the Corporation shall, subject
      to
      the approval of the TSX (or such other stock exchange or quotation system on
      which the Common Shares are then listed and posted (or quoted) for trading,
      as
      applicable), execute and deliver to the Agent an amendment hereto providing
      for
      an adjustment in the application of such provisions so as to adjust such rights
      as aforesaid in such manner as the board of directors of the Corporation may
      determine to be equitable in the circumstances, acting in good faith. The
      failure of the taking of action by the board of directors of the Corporation
      to
      so provide for any adjustment on or prior to the effective date of any action
      or
      occurrence giving rise to such state of facts will be conclusive evidence that
      the board of directors has determined that it is equitable to make no adjustment
      in the circumstances

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    ADJUSTMENT
      RULES

     

    The
      following rules and procedures shall be applicable to the adjustments made
      pursuant to Section 9:

    

    
      	
              (a)

            	
              any
                Common Shares owned or held by or for the account of the Corporation
                shall
                be deemed not be to outstanding except that, for the purposes of
                Section
                9, any Common Shares owned by a pension plan or profit sharing plan
                for
                employees of the Corporation or any of its subsidiaries shall not
                be
                considered to be owned or held by or for the account of the
                Corporation;

            

    

     

    
      	
              (b)

            	
              no
                adjustment in the Exercise Price or the number of Common Shares
                purchasable pursuant to this Broker's Warrant shall be required unless
                a
                change of at least 1% of the prevailing Exercise Price or the number
                of
                Common Shares purchasable pursuant to this Broker's Warrant would
                result,
                provided, however, that any adjustment which, except for the provisions
                of
                this Section 10(b), would otherwise have been required to be made,
                shall
                be carried forward and taken into account in any subsequent
                adjustment;

            

    

     

    
      	
              (c)

            	
              the
                adjustments provided for in Section 9 are cumulative and shall apply
                to
                successive subdivisions, consolidations, dividends, distributions
                and
                other events resulting in any adjustment under the provisions of
                such
                Section;

            

    

     

    
      	
              (d)

            	
              in
                the absence of a resolution of the board of directors of the Corporation
                fixing a record date for any dividend or distribution referred to
                in
                Subsection 9(a)(iii) above, the Corporation shall be deemed to have
                fixed
                as the record date therefor the date on which such dividend or
                distribution is effected;

            

    

     

    
      	
              (e)

            	
              if
                the Corporation sets a record date to take any action and thereafter
                and
                before the taking of such action abandons its plan to take such action,
                then no adjustment to the Exercise Price will be required by reason
                of the
                setting of such record date;

            

    

     

    
      	
              (f)

            	
              as
                a condition precedent to the taking of any action which would require
                any
                adjustment to the Broker's Warrants evidenced hereby, including the
                Exercise Price, the Corporation must take any corporate action which
                may
                be necessary in order that the Corporation shall have unissued and
                reserved in its authorized capital and may validly and legally issue
                as
                fully paid and non-assessable all of the shares or other securities
                which
                the Agent is entitled to receive on the full exercise thereof in
                accordance with the provisions
                hereof;

            

    

     

    
      	
              (g)

            	
              forthwith,
                but no later than fourteen (14) days, after any adjustment to the
                Exercise
                Price or the number of Common Shares purchasable pursuant to the
                Broker's
                Warrants, the Corporation shall provide to the Agent a notice as
                to the
                amount of such adjustment and, in reasonable detail, describing the
                event
                requiring and the manner of computing or determining such
                adjustment;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (h)

            	
              any
                question that at any time or from time to time arises with respect
                to the
                amount of any adjustment to the Exercise Price or other adjustment
                pursuant to Section 9 shall be conclusively determined by a firm
                of
                independent chartered accountants (who may be the Corporation's auditors)
                and shall be binding upon the Corporation and the
                Agent;

            

    

     

    
      	
              (i)

            	
              any
                adjustment to the Exercise Price under the terms of this Broker's
                Warrant
                certificate shall be subject to the prior approval of the TSX (or
                such
                other stock exchange or quotation system on which the Common Shares
                are
                then listed and posted (or quoted) for trading, as
                applicable);

            

    

     

    
      	
              (j)

            	
              in
                case the Corporation, after the date of issue of this Broker's Warrant
                certificate, takes any action affecting the Common Shares, other
                than an
                action described in Section 9, which in the opinion of the directors
                of
                the Corporation would materially affect the rights of the Agent,
                the
                Exercise Price will be adjusted in such manner, if any, and at such
                time,
                by action by the directors of the Corporation but subject in all
                cases to
                any necessary regulatory approval, including approval of the TSX
                (or such
                other stock exchange or quotation system on which the Common Shares
                are
                then listed and posted (or quoted) for trading, as applicable). Failure
                of
                the taking of action by the directors of the Corporation so as to
                provide
                for an adjustment on or prior to the effective date of any action
                by the
                Corporation affecting the Common Shares will be conclusive evidence
                that
                the board of directors of the Corporation has determined that it
                is
                equitable to make no adjustment in the circumstances;
                and

            

    

     

    
      	
              (k)

            	
              on
                the happening of each and every such event set out in Section 9,
                the
                applicable provisions of this Broker's Warrant certificate, including
                the
                Exercise Price, shall, ipso
                facto,
                be deemed to be amended accordingly and the Corporation shall take
                all
                necessary action so as to comply with such provisions as so
                amended.

            

    

     

    RESERVATION
      OF TREASURY SHARES

     

    The
      Corporation shall at all times, during the term of this Agreement, reserve
      and
      keep available a sufficient number of unissued Common Shares to satisfy the
      requirements hereof.

     

    LOST,
      STOLEN, MUTILATED, OR DESTROYED BROKER'S WARRANT

     

    If
      this
      Broker's Warrant is lost, stolen, mutilated or destroyed, the Corporation may,
      on such terms as to indemnify the Corporation or otherwise as it may in its
      discretion reasonably impose (which shall, in the case of a mutilated Broker's
      Warrant, include the surrender thereof), issue a new Broker's Warrant of like
      denomination and tenor as the Broker's Warrant so lost, stolen, mutilated or
      destroyed. Any such new Broker's Warrant shall constitute an original
      contractual obligation of the Corporation, whether or not the allegedly lost,
      stolen, mutilated, or destroyed Broker's Warrant shall be at any time
      enforceable by anyone.

     

    FURTHER
      ASSURANCES

     

    The
      Corporation covenant that it shall and will from time to time and at all times
      hereafter do and perform all such acts and things and execute all such
      additional documents as may be required to give effect to the terms and
      intention of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ENTIRE
      AGREEMENT

     

    This
      Agreement supersedes all other agreements, documents, writings and verbal
      understandings among the parties relating to the subject matter hereof and
      represents the entire agreement between the parties relating to the subject
      matter hereof.

     

    NOTICE

     

    All
      notices, requests and other communications required or permitted to be given
      or
      delivered hereunder shall be in writing, and shall be delivered, or shall be
      sent by certified or registered mail, postage prepaid and addressed, if to
      the
      Agent at the address shown in the Agency Agreement or at such other address
      as
      shall have been furnished to the Corporation by notice from the Agent. All
      notices, requests and other communications required or permitted to be given
      or
      delivered hereunder shall be in writing, and shall be delivered, or shall be
      sent by certified or registered mail, postage prepaid and addressed to the
      Corporation at the offices of the Corporation at 55 York Street, Suite 401,
      Toronto, Ontario M5J 1R7, or at such other address as shall have been furnished
      to the Agent by notice from the Corporation.

     

    A
      notice
      so given by mail or so delivered will be deemed to have been given on the fifth
      business day after it has been mailed or on the day which it has been delivered,
      as the case may be. In determining under any provision hereof the date when
      notice of a meeting or other event must be given, the date of giving notice
      will
      be included and the date of the meeting or other event will be
      excluded.

     

    GOVERNING
      LAW

     

    This
      Broker's Warrant certificate shall be governed by the laws of the Province
      of
      Ontario and the federal laws of Canada applicable therein.

     

    TIME

     

    Time
      shall be of the essence of this Agreement.

     

    ENUREMENT

     

    Subject
      to the other provisions hereof, this Agreement shall enure to the benefit of
      and
      be binding upon the Agent and the Corporation and their respective heirs,
      executors, administrators, successors and permitted assigns.

     

    IN
      WITNESS WHEREOF the Corporation has cause this certificate to be signed by
      its
      duly authorized officer as of the date written above. 

     

    
      	 	
              YUKON
                GOLD CORPORATION, INC.

            
	 	
               

               

              Per:
                

              
                

              

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      "C"

    

    FORM
      OF UNDERLYING WARRANT

    

    UNLESS
      PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
      TRADE THE SECURITY BEFORE THE DATE THAT IS APRIL 29, 2007.

    

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR UNDER
      ANY APPLICABLE STATE SECURITIES LAWS (THE “STATE LAWS”). THESE SECURITIES HAVE
      BEEN ACQUIRED FOR INVESTMENT PURPOSES AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED
      OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH THE REGISTRATION REQUIREMENTS
      OF THE SECURITIES ACT AND APPLICABLE STATE LAWS, OR PURSUANT TO APPLICABLE
      EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS WHICH MAY INCLUDE SALE THROUGH
      A
      DESIGNATED OFFSHORE SECURITIES MARKET. FURTHER, UNLESS THE SECURITIES HAVE
      BEEN
      REGISTERED UNDER THE SECURITIES ACT, THE SALE, TRANSFER, PLEDGE OR OTHER
      DISPOSITION OF THESE SECURITIES IN THE UNITED STATES IS PROHIBITED EXCEPT IN
      ACCORDANCE WITH THE PROVISIONS OF REGULATION S (RULE 901 THROUGH 905 AND THE
      PRELIMINARY NOTES) PROMULGATED UNDER THE SECURITIES ACT.

    

    No.
      ·

    

    Warrant
      to subscribe for shares of

    Common
      Stock         ·
      [Date
      of Issuance]

    

    

    YUKON
      GOLD CORPORATION, INC.

    WARRANT

    

    VOID
      AFTER 5:00 p.m. (Toronto time) on December 28, 2008 (the “Expiration
      Date”)

     

    
      

    

    

    THIS
      CERTIFIES that, for value received, · [Name](the
      “Holder”),
      or
      registered assigns, is entitled, subject to the terms of Section 1 hereof,
      to
      subscribe for and purchase from Yukon Gold Corporation, Inc, a Delaware
      corporation (hereinafter called the “Company”),
      at
      any time and from time to time on or before the Expiration Date, subject to
      adjustment as hereinafter provided, up to ·
      fully
      paid, non-assessable shares of the Company’s Common Stock, $0.0001 par value
      (“Common
      Stock”),
      at a
      price of $1.05 per share, as from time to time to be adjusted as hereinafter
      provided, being hereinafter referred to as the “Warrant
      Price”,
      subject, however, to the provisions and upon the terms and conditions
      hereinafter set forth.

    

    Section
      14.
      Exercise
      of Warrant.
      This
      Warrant may be exercised by the Holder hereof , in whole or in part (but not
      as
      to a fractional share), by the completion of the subscription form attached
      hereto as Schedule "A" and by the surrender of the Warrants (properly endorsed)
      at the office of the Company at 55 York Street, Suite 401, Toronto, Ontario
      M5J
      1R7 (or at such other agency or office of the Company in the United States
      or
      Canada as it may designate by notice in writing to the Holder hereof at the
      address of the Holder hereof appearing on the books of the Company), and by
      payment to the Company of the Warrant Price, by certified check or official
      bank
      check for the number of shares of Common Stock being purchased. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    In
      the
      event of an exercise of the rights represented by this Warrant,, a certificate
      or certificates for the Common Stock so purchased, registered in the name of
      the
      Holder hereof, shall be delivered to the Holder hereof within a reasonable
      time,
      not exceeding five Business Days, after the rights represented by this Warrant
      shall have been so exercised. With respect to any such exercise, the Holder
      hereof shall for all purposes be deemed to have become the holder of record
      of
      the number of shares of Common Stock evidenced by such certificate or
      certificates from the date on which this Warrant was surrendered and payment
      of
      the Warrant Price was made irrespective of the date of delivery of such
      certificate, except that, if the date of such surrender and payment is a date
      on
      which the stock transfer books of the Company are closed, such person shall
      be
      deemed to have become the holder of such shares at the close of business on
      the
      next succeeding date on which the stock transfer books are open. No fractional
      shares shall be issued upon exercise of this Warrant. The holder may exercise
      less than all of the Warrants evidenced by this Warrant Certificate, in which
      event a new certificate representing the Warrants not then exercised will be
      issued to the Holder.

    

    For
      the
      purposes of this certificate, the term "Business
      Day"
      shall
      mean a day other than a Saturday, Sunday or any other day on which the principal
      chartered banks located in Toronto are not open for business

    

    Section
      15.
      Adjustments
      to Warrant Price.
      

    

    (a)
      Definitions.
      For the
      purpose of Section 2, the words and terms defined below shall have the
      respective meanings ascribed to them as follows: 

    

    "Current
      Market Price"
      of the
      Common Stock at any date means the price per share equal to the weighted average
      price at which the Common Stock have traded on (i) the Toronto Stock Exchange
      (the "TSX"),
      (ii)
      if the Common Stock are not then listed on the TSX, on such other Canadian
      stock
      exchange on which the Common Stock then trades, or (iii), if the Common Stock
      are not then listed on any Canadian stock exchange, on any over-the-counter
      market on which the Common Stock traded, during the period of any twenty
      consecutive trading days ending not more than five (5) Business Days before
      such
      date; provided that the weighted average price shall be determined by dividing
      the aggregate sale price of all Common Stock sold on said exchange or market,
      as
      the case may be, during the said twenty consecutive trading days by the total
      number of shares of Common Stock so sold; and provided further that if the
      Common Stock are not then listed on any Canadian stock exchange or traded in
      the
      over-the-counter market, then the Current Market Price shall be determined
      by
      the directors of the Company in their sole discretion;

    

    "director"
      means a
      director of the Company for the time being and, unless otherwise specified
      herein, a reference to action "by the directors" means action by the directors
      of the Company as a board or, whenever empowered, action by the executive
      committee of such board; and

    

    "trading
      day"
      with
      respect to a stock exchange or over-the-counter market means a day on which
      such
      stock exchange or market is open for business.

    

    (b)
       If
      at any
      time after December •, 2006 and prior to 5:00 p.m. (Toronto time) on the
      Expiration Date the Company shall (i) subdivide or re-divide its then
      outstanding shares of Common Stock into a greater number of shares of Common
      Stock, (ii) reduce, combine or consolidate its then outstanding shares of Common
      Stock into a lesser number of shares of Common Stock or (iii) issue Common
      Stock
      (or securities exchangeable for or convertible into Common Stock) to the holders
      of all or substantially all of its then outstanding shares of Common Stock
      by
      way of a stock dividend or other distribution (any of such events herein called
      a "Common
      Stock Reorganization"),
      then
      the Warrant Price shall be adjusted effective immediately after the effective
      date of any such event in (i) or (ii) above or the record date at which the
      holders of Common Stock are determined for the purpose of any such dividend
      or
      distribution in (iii) above, as the case may be, by multiplying the Warrant
      Price in effect on such effective date or record date, as the case may be,
      by a
      fraction, the numerator of which shall be the number of shares of Common Stock
      outstanding on such effective date or record date, as the case may be, before
      giving effect to such Common Stock Reorganization and the denominator of which
      shall be the number of shares of Common Stock outstanding immediately after
      giving effect to such Common Stock Reorganization including, in the case where
      securities exchangeable for or convertible into Common Stock are distributed,
      the number of shares of Common Stock that would be outstanding if such
      securities were exchanged for or converted into Common Stock.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (c)
      If at
      any time after December •, 2006 and prior to 5:00 p.m. (Toronto time) on the
      Expiration Date the Company shall fix a record date for the issue or
      distribution to the holders of all or substantially all of the outstanding
      Common Stock, of rights, options or warrants pursuant to which such holders
      are
      entitled, during a period expiring not more than 45 days after the record date
      for such issue (such period being the "Rights
      Period"),
      to
      subscribe for or purchase shares of Common Stock or securities exchangeable
      for
      or convertible into Common Stock at a price per share (or in the case of
      securities exchangeable for or convertible into Common Stock at an exchange
      or
      conversion price per share at the date of issue of such securities) of less
      than
      95% of the Current Market Price of the Common Stock on such record date (any
      of
      such events being herein called a "Rights
      Offering"),
      the
      Warrant Price shall be adjusted effective immediately after the record date
      for
      the Rights Offering to the amount determined by multiplying the Warrant Price
      in
      effect on such record date by a fraction:

    

    (i) the
      numerator of which shall be the aggregate of

     

    
      	 	
              (A)

            	
              the
                number of shares of Common Stock outstanding on the record date for
                the
                Rights Offering; and

            

    

     

    
      	
            	(B)	
              the
                quotient determined by dividing

            

    

     

    
      	 	
              (I)

            	
              either
                (a) the product of the number of shares of Common Stock offered during the
                Rights Period pursuant to the Rights Offering and the price at which
                such
                shares of Common Stock are offered, or, (b) the product of the exchange
                or
                conversion price of the securities so offered and the number of shares
                of
                Common Stock for or into which the securities offered pursuant to
                the
                Rights Offering may be exchanged or converted, as the case may be,
                by

            

    

     

    
      	 	
              (II)

            	
              the
                Current Market Price of the Common Stock as of the record date for
                the
                Rights Offering; and

            

    

     

    
      	 	
              (ii)

            	
              the
                denominator of which shall be the aggregate of the number of shares
                of
                Common Stock outstanding on such record date and the number of shares
                of
                Common Stock offered pursuant to the Rights Offering (including in
                the
                case of the issue or distribution of securities exchangeable for
                or
                convertible into Common Stock the number of shares of Common Stock
                for or
                into which such securities may be exchanged or
                converted).

            

    

     

    If
      by the
      terms of the rights, options, or warrants referred to in this Subsection 2(c),
      there is more than one purchase, conversion or exchange price per share of
      Common Stock, the aggregate price of the total number of additional shares
      of
      Common Stock offered for subscription or purchase, or the aggregate conversion
      or exchange price of the convertible or exchangeable securities so offered,
      shall be calculated for purposes of the adjustment on the basis of the lowest
      purchase, conversion or exchange price per share of Common Stock, as the case
      may be. Any Common Stock owned by or held for the account of the Company shall
      be deemed not to be outstanding for the purpose of any such calculation. To
      the
      extent that any adjustment in the Warrant Price occurs pursuant to this
      Subsection 2(c) as a result of the fixing by the Company of a record date for
      the issue or distribution of rights, options or warrants referred to in this
      Subsection 2(c), the Warrant Price shall be readjusted immediately after the
      expiry of any relevant exchange, conversion or exercise right to the Warrant
      Price which would then be in effect based upon the number of shares of Common
      Stock actually issued and remaining issuable after such expiry and shall be
      further readjusted in such manner upon the expiry of any further such
      right.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (d) If
      at any
      time after December 28, 2006 and prior to 5:00 p.m. (Toronto time) on the
      Expiration Date, the Company shall fix a record date for the issue or
      distribution to the holders of all or substantially all of the Common Stock
      of:

     

    
      	
            	(i)	
              shares
                of the Company of any class other than Common
                Stock;

            

    

     

    
      	 	
              (ii)

            	
              rights,
                options or warrants to acquire Common Stock or securities exchangeable
                for
                or convertible into Common Stock (other than rights, options or warrants
                pursuant to which holders of Common Stock are entitled, during a
                period
                expiring not more than 45 days after the record date for such issue,
                to
                subscribe for or purchase Common Stock at a price per share (or in
                the
                case of securities exchangeable for or convertible into Common Stock
                at an
                exchange or conversion price per share at the date of issue of such
                securities) of at least 95% of the Current Market Price of the Common
                Stock on such record date);

            

    

     

    
      	
            	(iii)	
              evidences
                of indebtedness of the Company; or

            

    

     

    
      	 	
              (iv)

            	
              any
                property or assets of the Company (for greater certainty, excluding
                a cash
                dividend in the ordinary course);

            

    

     

    and
      if
      such issue or distribution does not constitute a Common Stock Reorganization
      or
      a Rights Offering (any of such non-excluded events being herein called a
      "Special
      Distribution"),
      the
      Warrant Price shall be adjusted effective immediately after the record date
      for
      the Special Distribution to the amount determined by multiplying the Warrant
      Price in effect on the record date for the Special Distribution by a
      fraction:

    

    (A) the
      numerator of which shall be the difference between

     

    
      	 	
              (I)

            	
              the
                product of the number of shares of Common Stock outstanding on such
                record
                date and the Current Market Price of the Common Stock on such record
                date,
                and

            

    

     

    
      	 	
              (II)

            	
              the
                fair value, as determined by the directors of the Company, to the
                holders
                of the Common Stock of the shares, rights, options, warrants, evidences
                of
                indebtedness or property or assets to be issued or distributed in
                the
                Special Distribution, and

            

    

     

    
      	 	
              (B)

            	
              the
                denominator of which shall be the product obtained by multiplying
                the
                number of shares of Common Stock outstanding on such record date
                by the
                Current Market Price of the Common Stock on such record
                date.

            

    

     

    Any
      Common Stock owned by or held for the account of the Company shall be deemed
      not
      to be outstanding for the purpose of such calculation. To the extent that any
      adjustment in the Warrant Price occurs pursuant to this Subsection 2(d) as
      a
      result of the fixing by the Company of a record date for the issue or
      distribution of rights, options or warrants to acquire Common Stock or
      securities exchangeable for or convertible into Common Stock referred to in
      this
      Subsection 2(d), the Warrant Price shall be readjusted immediately after the
      expiry of any relevant exercise, exchange or conversion right to the amount
      which would then be in effect if the fair market value had been determined
      on
      the basis of the number of shares of Common Stock issued and remaining issuable
      immediately after such expiry, and shall be further readjusted in such manner
      upon the expiry of any further such right.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e) If
      at any
      time after December 28, 2006 and prior to 5:00 p.m. (Toronto time) on the
      Expiration Date there is a capital reorganization of the Company or a
      reclassification or other change in the Common Stock (other than a Common Stock
      Reorganization) or a consolidation or merger or amalgamation of the Company
      with
      or into any other corporation or other entity (other than a consolidation,
      merger or amalgamation which does not result in any reclassification of the
      outstanding Common Stock or a change of the Common Stock into other securities),
      or a transfer of all or substantially all of the Company's undertaking and
      assets to another corporation or other entity in which the holders of Common
      Stock are entitled to receive shares, other securities or other property (any
      of
      such events being called a "Capital
      Reorganization"),
      after
      the effective date of the Capital Reorganization the Holder shall be entitled
      to
      receive, and shall accept, for the same aggregate consideration, upon exercise
      of the Warrants, in lieu of the number of shares of Common Stock to which the
      Holder was theretofore entitled upon the exercise of the Warrants, the kind
      and
      aggregate number of shares of Common Stock and other securities or property
      resulting from the Capital Reorganization which the Holder would have been
      entitled to receive as a result of the Capital Reorganization if, on the
      effective date thereof, the Holder has been the registered holder of the number
      of shares of Common Stock to which the Holder was theretofore entitled to
      purchase or receive upon the exercise of the Warrants. If necessary, as a result
      of any Capital Reorganization, appropriate adjustments shall be made in the
      application of the provisions of this Warrant Certificate with respect to the
      rights and interest thereafter of the Holder to the end that the provisions
      of
      this Warrant Certificate shall thereafter correspondingly be made applicable
      as
      nearly as may reasonably be possible in relation to any shares or other
      securities or property thereafter deliverable upon the exercise of this Warrant
      Certificate.

     

    (f) If
      at any
      time after December 28, 2006 and prior to 5:00 p.m. (Toronto time) on the
      Expiration Date, any of the events set out in Subsections 2(a), (b), (c), (d)
      or
      (e) shall occur and the occurrence of such event results in an adjustment of
      the
      Warrant Price pursuant to the provisions of this Section 2, then the number
      of
      shares of Common Stock purchasable pursuant to this Warrant shall be adjusted
      contemporaneously with the adjustment of the Warrant Price by multiplying the
      number of shares of Common Stock then otherwise purchasable on the exercise
      thereof by a fraction, the numerator of which shall be the Warrant Price in
      effect immediately prior to the adjustment and the denominator of which shall
      be
      the Warrant Price resulting from such adjustment.

     

    (g) If
      the
      Company takes any action affecting its Common Stock to which the foregoing
      provisions of this Section 2, in the opinion of the board of directors of the
      Company, acting in good faith, are not strictly applicable, or if strictly
      applicable would not fairly adjust the rights of the Holder against dilution
      in
      accordance with the intent and purposes hereof, or would otherwise materially
      affect the rights of the Holder hereunder, then the Company shall, subject
      to
      the approval of the TSX (or such other stock exchange or quotation system on
      which the Common Stock are then listed and posted (or quoted) for trading,
      as
      applicable), execute and deliver to the Holder an amendment hereto providing
      for
      an adjustment in the application of such provisions so as to adjust such rights
      as aforesaid in such manner as the board of directors of the Company may
      determine to be equitable in the circumstances, acting in good faith. The
      failure of the taking of action by the board of directors of the Company to
      so
      provide for any adjustment on or prior to the effective date of any action
      or
      occurrence giving rise to such state of facts will be conclusive evidence that
      the board of directors has determined that it is equitable to make no adjustment
      in the circumstances

    

    Section
      16.
      Adjustment
      Rules.
      The
      following rules and procedures shall be applicable to the adjustments made
      pursuant to Section 2:

    

    
      	 	
              (a)

            	
              any
                Common Stock owned or held by or for the account of the Company shall
                be
                deemed not be to outstanding except that, for the purposes of Section
                2,
                any Common Stock owned by a pension plan or profit sharing plan for
                employees of the Company or any of its subsidiaries shall not be
                considered to be owned or held by or for the account of the
                Company;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              no
                adjustment in the Warrant Price or
                the number of shares of Common Stock purchasable pursuant to this
                Warrant
                shall be required unless a change of at least 1% of the prevailing
                Warrant
                Price or
                the number of shares of Common Stock purchasable pursuant to this
                Warrant
                would result, provided, however, that any adjustment which, except
                for the
                provisions of this Section 3(b), would otherwise have been required
                to be
                made, shall be carried forward and taken into account in any subsequent
                adjustment;

            

    

     

    
      	 	
              (c)

            	
              the
                adjustments provided for in Section 2 are cumulative and shall apply
                to
                successive subdivisions, consolidations, dividends, distributions
                and
                other events resulting in any adjustment under the provisions of
                such
                Section;

            

    

     

    
      	 	
              (d)

            	
              in
                the absence of a resolution of the board of directors of the Company
                fixing a record date for any dividend or distribution referred to
                in
                Subsection 2(a)(iii) above, the Company shall be deemed to have fixed
                as
                the record date therefor the date on which such dividend or distribution
                is effected;

            

    

     

    
      	 	
              (e)

            	
              if
                the Company sets a record date to take any action and thereafter
                and
                before the taking of such action abandons its plan to take such action,
                then no adjustment to the Warrant Price will be required by reason
                of the
                setting of such record date;

            

    

     

    
      	 	
              (f)

            	
              as
                a condition precedent to the taking of any action which would require
                any
                adjustment to the Warrants evidenced hereby, including the Warrant
                Price,
                the Company must take any corporate action which may be necessary
                in order
                that the Company shall have unissued and reserved in its authorized
                capital and may validly and legally issue as fully paid and non-assessable
                all of the shares or other securities which the Holder is entitled
                to
                receive on the full exercise thereof in accordance with the provisions
                hereof;

            

    

     

    
      	 	
              (g)

            	
              forthwith,
                but no later than fourteen (14) days, after any adjustment to the
                Warrant
                Price or the number of shares of Common Stock purchasable pursuant
                to the
                Warrants, the Company shall provide to the Holder a certificate of
                an
                officer of the Company certifying as to the amount of such adjustment
                and,
                in reasonable detail, describing the event requiring and the manner
                of
                computing or determining such
                adjustment;

            

    

     

    
      	 	
              (h)

            	
              any
                question that at any time or from time to time arises with respect
                to the
                amount of any adjustment to the Warrant Price or other adjustment
                pursuant
                to Section 2 shall be conclusively determined by a firm of independent
                chartered accountants (who may be the Company's auditors) and shall
                be
                binding upon the Company and the
                Holder;

            

    

     

    
      	 	
              (i)

            	
              any
                adjustment to the Warrant Price under the terms of this Warrant
                Certificate shall be subject to the prior approval of the TSX (or
                such
                other stock exchange or quotation system on which the Common Stock
                are
                then listed and posted (or quoted) for trading, as
                applicable);

            

    

     

    
      	 	
              (j)

            	
              in
                case the Company, after the date of issue of this Warrant Certificate,
                takes any action affecting the Common Stock, other than an action
                described in Section 2, which in the opinion of the directors of
                the
                Company would materially affect the rights of the Holder, the Warrant
                Price will be adjusted in such manner, if any, and at such time,
                by action
                by the directors of the Company but subject in all cases to any necessary
                regulatory approval, including approval of the TSX (or such other
                stock
                exchange or quotation system on which the Common Stock are then listed
                and
                posted (or quoted) for trading, as applicable). Failure of the taking
                of
                action by the directors of the Company so as to provide for an adjustment
                on or prior to the effective date of any action by the Company affecting
                the Common Stock will be conclusive evidence that the board of directors
                of the Company has determined that it is equitable to make no adjustment
                in the circumstances; and

            

    

     

     

    
      	 	
              (k)

            	
              on
                the happening of each and every such event set out in Section 2,
                the
                applicable provisions of this Warrant Certificate, including the
                Warrant
                Price, shall, ipso
                facto,
                be deemed to be amended accordingly and the Company shall take all
                necessary action so as to comply with such provisions as so
                amended.

            

    

     

    Section
      17.
      Shares
      Reserved.  The
      Company covenants and agrees that until the Expiration Date, while any of the
      Warrants shall be outstanding, it shall reserve and there shall remain unissued
      out of its authorized capital a sufficient number of shares of Common Stock
      to
      satisfy the right of purchase herein provided, as such right of purchase may
      be
      adjusted pursuant to Sections 2 and 3 hereof. The Company further covenants
      and
      agrees that while any of the Warrants shall be outstanding, the Company shall
      (a) comply with the securities legislation applicable to it in order that the
      Company not be in default of any requirements of such legislation; (b) use
      its
      commercially reasonable best efforts to do or cause to be done all things
      necessary to preserve and maintain its corporate existence; and (c) at its
      own
      expense expeditiously use its commercially reasonable best efforts to obtain
      the
      listing of such shares of Common Stock (subject to issue or notice of issue)
      on
      each stock exchange or over-the-counter market on which the Common Stock may
      be
      listed from time to time. All Common Stock which shall be issued upon the
      exercise of the right to purchase herein provided for, upon payment therefor
      of
      the amount at which such Common Stock may at the time be purchased pursuant
      to
      the provisions hereof, shall be issued as fully paid and non-assessable shares
      and the holders thereof shall not be liable to the Company or its creditors
      in
      respect thereof

    

    Section
      18.
      Lost,
      Stolen, Mutilated, or Destroyed Warrant.
      If this
      Warrant is lost, stolen, mutilated or destroyed, the Company may, on such terms
      as to indemnify the Company or otherwise as it may in its discretion reasonably
      impose (which shall, in the case of a mutilated Warrant, include the surrender
      thereof), issue a new Warrant of like denomination and tenor as the Warrant
      so
      lost, stolen, mutilated or destroyed. Any such new Warrant shall constitute
      an
      original contractual obligation of the Company, whether or not the allegedly
      lost, stolen, mutilated, or destroyed Warrant shall be at any time enforceable
      by anyone.

    

    Section
      19.
      Transfer.
      The
      Warrants evidenced by this Warrant certificate are non-transferable and
      non-tradeable.

    

    Section
      20.
      Notices.
      All
      notices, requests and other communications required or permitted to be given
      or
      delivered hereunder shall be in writing, and shall be delivered, or shall be
      sent by certified or registered mail, postage prepaid and addressed, if to
      the
      Holder to such Holder at the address shown on the records of the Company or
      at
      such other address as shall have been furnished to the Company by notice from
      such Holder. All notices, requests and other communications required or
      permitted to be given or delivered hereunder shall be in writing, and shall
      be
      delivered, or shall be sent by certified or registered mail, postage prepaid
      and
      addressed to the Company at the offices of the Company at 55 York Street, Suite
      401, Toronto, Ontario M5J 1R7, or at such other address as shall have been
      furnished to the Holder by notice from the Company.

     

    A
      notice
      so given by mail or so delivered will be deemed to have been given on the fifth
      Business Day after it has been mailed or on the day which it has been delivered,
      as the case may be. In determining under any provision hereof the date when
      notice of a meeting or other event must be given, the date of giving notice
      will
      be included and the date of the meeting or other event will be excluded.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      21.
      Binding
      Effect.
      This
      Warrant certificate and all of its provisions shall enure to the benefit of
      the
      Holder and its successors and shall be binding upon the Company and its
      successors and permitted assigns. 

    

    Section
      22.
      Governing
      Law.
      This
      Warrant certificate shall be governed by the laws of the Province of Ontario
      and
      the federal laws of Canada applicable herein.

    

    Section
      23.
      Corporate
      Obligations Rather Than Individual.
      Subject
      as hereinafter provided, all or any of the rights conferred upon the Holder
      by
      the terms of this Warrant certificate may be enforced by the Holder by
      appropriate legal proceedings. No recourse under or upon any obligation,
      covenant or agreement contained herein shall be had against any shareholder,
      officer or director of the Company either directly or through the Company,
      it
      being expressly agreed and declared that the obligations under this Warrant
      certificate are solely corporate obligations and that no personal liability
      whatever shall attach to or be incurred by the shareholders, officers or
      directors of the Company or any of them in respect thereof, any and all rights
      and claims against every such shareholder, officer or director being hereby
      expressly waived as a condition of and as a consideration for the issue of
      the
      Warrants. The foregoing shall, with respect to the officers and directors of
      the
      Company, be subject to rights of action for damages or rescission which the
      Holder may have pursuant to applicable securities laws.

    

    Section
      24.
      Legends.
      The
      certificates representing the Common Stock issued upon exercise hereof, shall
      bear such legends as determined to be applicable in the sole discretion of
      the
      Company. 

    

    Section
      25.
      Time.
      Time
      shall be of the essence of the Warrant Certificate. 

    

    IN
      WITNESS WHEREOF
      the
      Company has caused this Warrant certificate to be signed by its duly authorized
      officer as of the date written above.

    

    
      	 	
              YUKON
                GOLD CORPORATION, INC.

            
	 	
               

               

              Per: 

              
                
Authorized
                Officer 

            

    

    
       

      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      "A"

    ELECTION
      TO PURCHASE

    

    The
      undersigned Holder hereby irrevocably elects to exercise the within Warrant
      to
      purchase _________________________________ Shares(*)
      of Common Stock issuable upon the exercise thereof and requests that
      certificates for such Shares be issued in his/her/its name and delivered to
      him/her/it at the following address:

     

    
      

    

     

    
      

    

     

    Date:
      ______________     

     

    
      
Signature(s)
      (**)

    

    
      

    

    Print
      Name(s)

     

    Upon
      execution of this Exercise Form and delivery of this Warrant Certificate to
      the
      Company, the undersigned also presents a certified cheque or bank draft payable
      to the Company for an amount totalling $1.05 multiplied by the number of Shares
      indicated above on the Election to Purchase Form.

     

    Total
      amount tendered by the Holder: _________________________________

     

    * If
      the
      Warrant is to be exercised or transferred in its entirety, insert the word
      "All"
      before "Shares"; otherwise insert the number of shares then purchasable on
      the
      exercise thereof as to which transferred or exercised. If such Warrants shall
      not be transferred or exercised to purchase all shares purchasable upon exercise
      thereof, that a new Warrant to purchase the balance of such shares be issued
      in
      the name of, and delivered to, the Holder at the address stated
      above.

    

    **
      Signature(s) must conform exactly to the names(s) of the Holder as set forth
      on
      the first page of this Warrant.

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