Document:

EXHIBIT 4.1

                          QUEST MINERALS & MINING CORP.
                            2007 STOCK INCENTIVE PLAN

         1.       Purpose. The purpose of the 2007 Stock Incentive Plan of Quest
Minerals and Mining Corp. is to further align the interests of employees,
directors and non-employee Consultants with those of the stockholders by
providing incentive compensation opportunities tied to the performance of the
Common Stock and by promoting increased ownership of the Common Stock by such
individuals. The Plan is also intended to advance the interests of the Company
and its stockholders by attracting, retaining and motivating key personnel upon
whose judgment, initiative and effort the successful conduct of the Company's
business is largely dependent.

         2.       Definitions. Wherever the following capitalized terms are used
in the Plan, they shall have the meanings specified below:

                  "Affiliate" means (i) any entity that would be treated as an
         "affiliate" of the Company for purposes of Rule 12b-2 under the
         Exchange Act and (ii) any joint venture or other entity in which the
         Company has a direct or indirect beneficial ownership interest
         representing at least one-third (1/3) of the aggregate voting power of
         the equity interests of such entity or one-third (1/3) of the aggregate
         fair market value of the equity interests of such entity, as determined
         by the Committee.

                  "Award" means an award of a Stock Option, Stock Award, or
         Restricted Stock Award granted under the Plan.

                  "Award Agreement" means a written or electronic agreement
         entered into between the Company and a Participant setting forth the
         terms and conditions of an Award granted to a Participant.

                  "Board" means the Board of Directors of the Company.

                  "Code" means the Internal Revenue Code of 1986, as amended.

                  "Common Stock" means the Company's common stock, $0.001 par
         value per share.

                  "Committee" means the Compensation Committee of the Board, or
         such other committee of the Board appointed by the Board to administer
         the Plan, or if no such committee exists, the Board.

                  "Company" means Quest Minerals and Mining Corp., a Utah
         corporation.

                  "Consultant" means any person which is a consultant or advisor
         to the Company and which is a natural person and who provides bona fide
         services to the Company which are not in connection with the offer or
         sale of securities in a capital-raising transaction for the Company,
         and do not directly or indirectly promote or maintain a market for the
         Company's securities.

                  "Date of Grant" means the date on which an Award under the
         Plan is made by the Committee, or such later date as the Committee may
         specify to be the effective date of an Award.

                  "Disability" means a Participant being considered "disabled"
         within the meaning of Section 409A(a)(2)(C) of the Code, unless
         otherwise provided in an Award Agreement.

                  "Eligible Person" means any person who is an employee of the
         Company or any Affiliate or any person to whom an offer of employment
         with the Company or any Affiliate is extended, as determined by the
         Committee, or any person who is a Non-Employee Director, or any person
         who is Consultant to the Company.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
         amended.

                  "Fair Market Value" means the mean between the highest and
         lowest reported sales prices of the Common Stock on the New York Stock
         Exchange Composite Tape or, if not listed on such exchange, on any
         other national securities exchange on which the Company's common stock
         is listed or on The Nasdaq Stock Market, or, if not so listed on any
         other national securities exchange or The Nasdaq Stock Market, then the

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         average of the bid price of the Company's common stock during the last
         five trading days on the OTC Bulletin Board immediately preceding the
         last trading day prior to the date with respect to which the Fair
         Market Value is to be determined. If the Company's common stock is not
         then publicly traded, then the Fair Market Value of the Common Stock
         shall be the book value of the Company per share as determined on the
         last day of March, June, September, or December in any year closest to
         the date when the determination is to be made. For the purpose of
         determining book value hereunder, book value shall be determined by
         adding as of the applicable date called for herein the capital,
         surplus, and undivided profits of the Company, and after having
         deducted any reserves theretofore established; the sum of these items
         shall be divided by the number of shares of the Company's common stock
         outstanding as of said date, and the quotient thus obtained shall
         represent the book value of each share of the Company's common stock.

                  "Incentive Stock Option" means a Stock Option granted under
         Section 6 hereof that is intended to meet the requirements of Section
         422 of the Code and the regulations thereunder.

                  "Non-Employee Director" means any member of the Board who is
         not an employee of the Company.

                  "Nonqualified Stock Option" means a Stock Option granted under
         Section 6 hereof that is not an Incentive Stock Option.

                  "Participant" means any Eligible Person who holds an
         outstanding Award under the Plan.

                  "Plan" means the 2007 Stock Incentive Plan of Quest Minerals
         and Mining Corp. as set forth herein, as amended from time to time.

                  "Restricted Stock Award" means a grant of shares of Common
         Stock to an Eligible Person under Section 8 hereof that is issued
         subject to such vesting and transfer restrictions as the Committee
         shall determine and set forth in an Award Agreement.

                  "Service" means a Participant's employment with the Company or
         any Affiliate or a Participant's service as a Non-Employee Director
         with the Company, as applicable.

                  "Stock Award" means a grant of shares of Common Stock to an
         Eligible Person under Section 7 hereof that are issued free of transfer
         restrictions and forfeiture conditions.

                  "Stock Option" means a contractual right granted to an
         Eligible Person under Section 6 hereof to purchase shares of Common
         Stock at such time and price, and subject to such conditions, as are
         set forth in the Plan and the applicable Award Agreement.

         3.       Administration.

         3.1      Committee Members. The Plan shall be administered by a
Committee comprised of one or more members of the Board, or if no such committee
exists, the Board.

         3.2      Committee Authority. The Committee shall have such powers and
authority as may be necessary or appropriate for the Committee to carry out its
functions as described in the Plan. Subject to the express limitations of the
Plan, the Committee shall have authority in its discretion to determine the
Eligible Persons to whom, and the time or times at which, Awards may be granted,
the number of shares, units or other rights subject to each Award, the exercise,
base or purchase price of an Award (if any), the time or times at which an Award
will become vested, exercisable or payable, the performance goals and other
conditions of an Award, the duration of the Award, and all other terms of the
Award. Subject to the terms of the Plan, the Committee shall have the authority
to amend the terms of an Award in any manner that is not inconsistent with the
Plan, provided that no such action shall adversely affect the rights of a
Participant with respect to an outstanding Award without the Participant's
consent. The Committee shall also have discretionary authority to interpret the
Plan, to make factual determinations under the Plan, and to make all other
determinations necessary or advisable for Plan administration, including,
without limitation, to correct any defect, to supply any omission or to
reconcile any inconsistency in the Plan or any Award Agreement hereunder. The
Committee may prescribe, amend, and rescind rules and regulations relating to
the Plan. The Committee's determinations under the Plan need not be uniform and
may be made by the Committee selectively among Participants and Eligible
Persons, whether or not such persons are similarly situated. The Committee
shall, in its discretion, consider such factors as it deems relevant in making

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its interpretations, determinations and actions under the Plan including,
without limitation, the recommendations or advice of any officer or employee of
the Company or such attorneys, consultants, accountants or other advisors as it
may select. All interpretations, determinations and actions by the Committee
shall be final, conclusive, and binding upon all parties.

         3.3      Delegation of Authority. The Committee shall have the right,
from time to time, to delegate to one or more officers of the Company the
authority of the Committee to grant and determine the terms and conditions of
Awards granted under the Plan, subject to the requirements of state law and such
other limitations as the Committee shall determine. In no event shall any such
delegation of authority be permitted with respect to Awards to any members of
the Board or to any Eligible Person who is subject to Rule 16b-3 under the
Exchange Act or Section 162(m) of the Code. The Committee shall also be
permitted to delegate, to any appropriate officer or employee of the Company,
responsibility for performing certain ministerial functions under the Plan. In
the event that the Committee's authority is delegated to officers or employees
in accordance with the foregoing, all provisions of the Plan relating to the
Committee shall be interpreted in a manner consistent with the foregoing by
treating any such reference as a reference to such officer or employee for such
purpose. Any action undertaken in accordance with the Committee's delegation of
authority hereunder shall have the same force and effect as if such action was
undertaken directly by the Committee and shall be deemed for all purposes of the
Plan to have been taken by the Committee.

         4.       Shares Subject to the Plan.

         4.1      Maximum Share Limitations. Subject to Section 4.3 hereof, the
maximum aggregate number of shares of Common Stock that may be issued and sold
under all Awards granted under the Plan shall be seventy million (70,000,000)
shares. Shares of Common Stock issued and sold under the Plan may be either
authorized but unissued shares or shares held in the Company's treasury. To the
extent that any Award involving the issuance of shares of Common Stock is
forfeited, cancelled, returned to the Company for failure to satisfy vesting
requirements or other conditions of the Award, or otherwise terminates without
an issuance of shares of Common Stock being made thereunder, the shares of
Common Stock covered thereby will no longer be counted against the foregoing
maximum share limitations and may again be made subject to Awards under the Plan
pursuant to such limitations. Any Awards or portions thereof that are settled in
cash and not in shares of Common Stock shall not be counted against the
foregoing maximum share limitations.

         4.2      Adjustments. If there shall occur any change with respect to
the outstanding shares of Common Stock by reason of any recapitalization,
reclassification, stock dividend, extraordinary dividend, stock split, reverse
stock split or other distribution with respect to the shares of Common Stock, or
any merger, reorganization, consolidation, combination, spin-off or other
similar corporate change, or any other change affecting the Common Stock, the
Committee may, in the manner and to the extent that it deems appropriate and
equitable to the Participants and consistent with the terms of the Plan, cause
an adjustment to be made in (i) the maximum number and kind of shares provided
in Section 4.1 hereof, (ii) the number and kind of shares of Common Stock, or
other rights subject to then outstanding Awards, (iii) the exercise or base
price for each share or other right subject to then outstanding Awards, and (iv)
any other terms of an Award that are affected by the event. Notwithstanding the
foregoing, in the case of Incentive Stock Options, any such adjustments shall,
to the extent practicable, be made in a manner consistent with the requirements
of Section 424(a) of the Code.

         4.3      Anti-Dilution. Notwithstanding anything contained in the Plan
to cover the contrary, including any adjustments discussed in this Section 4,
the maximum aggregate number of shares of Common Stock that may be issued and
sold under all Awards granted under the Plan shall be anti-dilutive in the event
of a reverse stock split by the Company and shall not result in any reduction in
the number of shares available and authorized under the Plan at the effective
time of such reverse stock split(s).

         5.       Participation and Awards.

         5.1      Designations of Participants. All Eligible Persons are
eligible to be designated by the Committee to receive Awards and become
Participants under the Plan. The Committee has the authority, in its discretion,
to determine and designate from time to time those Eligible Persons who are to
be granted Awards, the types of Awards to be granted and the number of shares of
Common Stock or units subject to Awards granted under the Plan. In selecting
Eligible Persons to be Participants and in determining the type and amount of
Awards to be granted under the Plan, the Committee shall consider any and all
factors that it deems relevant or appropriate.

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         5.2      Determination of Awards. The Committee shall determine the
terms and conditions of all Awards granted to Participants in accordance with
its authority under Section 3.2 hereof. An Award may consist of one type of
right or benefit hereunder or of two or more such rights or benefits granted in
tandem or in the alternative. In the case of any fractional share or unit
resulting from the grant, vesting, payment or crediting of dividends or dividend
equivalents under an Award, the Committee shall have the discretionary authority
to (i) disregard such fractional share or unit, (ii) round such fractional share
or unit to the nearest lower or higher whole share or unit, or (iii) convert
such fractional share or unit into a right to receive a cash payment. To the
extent deemed necessary by the Committee, an Award shall be evidenced by an
Award Agreement as described in Section 11.1 hereof.

         6.       Stock Options.

         6.1      Grant of Stock Options. A Stock Option may be granted to any
Eligible Person selected by the Committee. Subject to the provisions of Section
6.8 hereof and Section 422 of the Code, each Stock Option shall be designated,
in the discretion of the Committee, as an Incentive Stock Option or as a
Nonqualified Stock Option.

         6.2      Exercise Price. The exercise price per share of a Stock Option
shall not be less than 85 percent of the Fair Market Value of the shares of
Common Stock on the Date of Grant, provided that the Committee may in its
discretion specify for any Stock Option an exercise price per share that is
higher than the Fair Market Value on the Date of Grant, except that the price
shall not be less than 110 percent of the Fair Market Value in the case of any
person who owns securities possessing more than 10 percent of the total combined
voting power of all classes of securities of the Company.

         6.3      Vesting of Stock Options. The Committee shall in its
discretion prescribe the time or times at which, or the conditions upon which, a
Stock Option or portion thereof shall become vested and/or exercisable, and may
accelerate the vesting or exercisability of any Stock Option at any time,
provided, however, that any Stock Option shall vest at the rate of at least
twenty percent (20%) per year over five (5) years from the date the Stock Option
is granted, subject to reasonable conditions as may be provided for in the Award
Agreement. However, in the case of a Stock Option granted to officers,
Non-employee Directors, managers or Consultants of the Company, the Stock Option
may become fully exercisable, subject to reasonable conditions, at anytime or
during any period established by the Company. The requirements for vesting and
exercisability of a Stock Option may be based on the continued Service of the
Participant with the Company or its Affiliates for a specified time period (or
periods) or on the attainment of specified performance goals established by the
Committee in its discretion.

         6.4      Term of Stock Options. The Committee shall in its discretion
prescribe in an Award Agreement the period during which a vested Stock Option
may be exercised, provided that the maximum term of a Stock Option shall be ten
years from the Date of Grant. Except as otherwise provided in this Section 6 or
as otherwise may be provided by the Committee, no Stock Option issued to an
employee or a Non-Employee Director of the Company may be exercised at any time
during the term thereof unless the employee or a Non-Employee Director
Participant is then in the Service of the Company or one of its Affiliates.

         6.5      Termination of Service. Subject to Section 6.8 hereof with
respect to Incentive Stock Options, the Stock Option of any Participant whose
Service with the Company or one of its Affiliates is terminated for any reason
shall terminate on the earlier of (A) the date that the Stock Option expires in
accordance with its terms or (B) unless otherwise provided in an Award
Agreement, and except for termination for cause (as described in Section 10.2
hereof), the expiration of the applicable time period following termination of
Service, in accordance with the following: (1) twelve months if Service ceased
due to Disability, (2) eighteen months if Service ceased at a time when the
Participant is eligible to elect immediate commencement of retirement benefits
at a specified retirement age under a pension plan to which the Company or any
of its Affiliates had made contributions, (3) eighteen months if the Participant
died while in the Service of the Company or any of its Affiliates, or (iv) three
months if Service ceased for any other reason. During the foregoing applicable
period, except as otherwise specified in the Award Agreement or in the event
Service was terminated by the death of the Participant, the Stock Option may be
exercised by such Participant in respect of the same number of shares of Common
Stock, in the same manner, and to the same extent as if he or she had remained
in the continued Service of the Company or any Affiliate during the first three
months of such period; provided that no additional rights shall vest after such
three months. The Committee shall have authority to determine in each case
whether an authorized leave of absence shall be deemed a termination of Service
for purposes hereof, as well as the effect of a leave of absence on the vesting
and exercisability of a Stock Option. Unless otherwise provided by the
Committee, if an entity ceases to be an Affiliate of the Company or otherwise

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ceases to be qualified under the Plan or if all or substantially all of the
assets of an Affiliate of the Company are conveyed (other than by encumbrance),
such cessation or action, as the case may be, shall be deemed for purposes
hereof to be a termination of the Service.

         6.6      Stock Option Exercise; Tax Withholding. Subject to such terms
and conditions as shall be specified in an Award Agreement, a Stock Option may
be exercised in whole or in part at any time during the term thereof by notice
in the form required by the Company, together with payment of the aggregate
exercise price therefor and applicable withholding tax. Payment of the exercise
price shall be made in the manner set forth in the Award Agreement, unless
otherwise provided by the Committee: (i) in cash or by cash equivalent
acceptable to the Committee, (ii) by payment in shares of Common Stock that have
been held by the Participant for at least six months (or such period as the
Committee may deem appropriate, for accounting purposes or otherwise) valued at
the Fair Market Value of such shares on the date of exercise, (iii) through an
open-market, broker-assisted sales transaction pursuant to which the Company is
promptly delivered the amount of proceeds necessary to satisfy the exercise
price, (iv) by a combination of the methods described above or (v) by such other
method as may be approved by the Committee and set forth in the Award Agreement.
In addition to and at the time of payment of the exercise price, the Participant
shall pay to the Company the full amount of any and all applicable income tax,
employment tax and other amounts required to be withheld in connection with such
exercise, payable under such of the methods described above for the payment of
the exercise price as may be approved by the Committee and set forth in the
Award Agreement.

         6.7      Limited Transferability of Nonqualified Stock Options. All
Stock Options shall be nontransferable except (i) upon the Participant's death,
in accordance with Section 11.2 hereof or (ii) in the case of Nonqualified Stock
Options only, for the transfer of all or part of the Stock Option to a
Participant's "family member" (as defined for purposes of the Form S-8
registration statement under the Securities Act of 1933), as may be approved by
the Committee in its discretion at the time of proposed transfer. The transfer
of a Nonqualified Stock Option may be subject to such terms and conditions as
the Committee may in its discretion impose from time to time. Subsequent
transfers of a Nonqualified Stock Option shall be prohibited other than in
accordance with Section 11.2 hereof.

         6.8      Additional Rules for Incentive Stock Options.

                  (a)      Eligibility. An Incentive Stock Option may only be
         granted to an Eligible Person who is considered an employee for
         purposes of Treasury Regulation ss.1.421-7(h) with respect to the
         Company or any Affiliate that qualifies as a "subsidiary corporation"
         with respect to the Company for purposes of Section 424(f) of the Code.

                  (b)      Termination of Employment. An Award of an Incentive
         Stock Option may provide that such Stock Option may be exercised not
         later than 3 months following termination of employment of the
         Participant with the Company and all Subsidiaries, or not later than
         one year following a permanent and total disability within the meaning
         of Section 22(e)(3) of the Code, as and to the extent determined by the
         Committee to comply with the requirements of Section 422 of the Code.

                  (c)      Other Terms and Conditions; Nontransferability. Any
         Incentive Stock Option granted hereunder shall contain such additional
         terms and conditions, not inconsistent with the terms of the Plan, as
         are deemed necessary or desirable by the Committee, which terms,
         together with the terms of the Plan, shall be intended and interpreted
         to cause such Incentive Stock Option to qualify as an "incentive stock
         option" under Section 422 of the Code. An Award Agreement for an
         Incentive Stock Option may provide that such Stock Option shall be
         treated as a Nonqualified Stock Option to the extent that certain
         requirements applicable to "incentive stock options" under the Code
         shall not be satisfied. An Incentive Stock Option shall by its terms be
         nontransferable other than by will or by the laws of descent and
         distribution, and shall be exercisable during the lifetime of a
         Participant only by such Participant.

                  (d)      Disqualifying Dispositions. If shares of Common Stock
         acquired by exercise of an Incentive Stock Option are disposed of
         within two years following the Date of Grant or one year following the
         transfer of such shares to the Participant upon exercise, the
         Participant shall, promptly following such disposition, notify the
         Company in writing of the date and terms of such disposition and
         provide such other information regarding the disposition as the Company
         may reasonably require.

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         6.9      Repricing Prohibited. Subject to the adjustment provisions
contained in Section 4.2 hereof, without the prior approval of the Company's
stockholders, evidenced by a majority of votes cast, neither the Committee nor
the Board shall cause the cancellation, substitution or amendment of a Stock
Option that would have the effect of reducing the exercise price of such a Stock
Option previously granted under the Plan, or otherwise approve any modification
to such a Stock Option that would be treated as a "repricing" under the then
applicable rules, regulations or listing requirements.

         7.       Stock Awards.

         7.1      Grant of Stock Awards. A Stock Award may be granted to any
Eligible Person selected by the Committee. A Stock Award may be granted for past
services, in lieu of bonus or other cash compensation, as directors'
compensation or for any other valid purpose as determined by the Committee. A
Stock Award granted to an Eligible Person represents shares of Common Stock that
are issued without restrictions on transfer and other incidents of ownership and
free of forfeiture conditions, except as otherwise provided in the Plan and the
Award Agreement. The deemed issuance price of shares of Common Stock subject to
each Stock Award shall not be less than 85 percent of the Fair Market Value of
the Common Stock on the date of the grant. In the case of any person who owns
securities possessing more than ten percent of the combined voting power of all
classes of securities of the issuer or its parent or subsidiaries possessing
voting power, the deemed issuance price of shares of Common Stock subject to
each Stock Award shall be at least 100 percent of the Fair Market Value of the
Common Stock on the date of the grant. The Committee may, in connection with any
Stock Award, require the payment of a specified purchase price.

         7.2      Rights as Stockholder. Subject to the foregoing provisions of
this Section 7 and the applicable Award Agreement, upon the issuance of the
Common Stock under a Stock Award the Participant shall have all rights of a
stockholder with respect to the shares of Common Stock, including the right to
vote the shares and receive all dividends and other distributions paid or made
with respect thereto.

         8.       Restricted Stock Awards.

         8.1      Grant of Restricted Stock Awards. A Restricted Stock Award may
be granted to any Eligible Person selected by the Committee. The deemed issuance
price of shares of Common Stock subject to each Restricted Stock Award shall not
be less than 85 percent of the Fair Market Value of the Common Stock on the date
of the grant. In the case of any person who owns securities possessing more than
ten percent of the combined voting power of all classes of securities of the
issuer or its parent or subsidiaries possessing voting power, the deemed
issuance price of shares of Common Stock subject to each Restricted Stock Award
shall be at least 100 percent of the Fair Market Value of the Common Stock on
the date of the grant. The Committee may require the payment by the Participant
of a specified purchase price in connection with any Restricted Stock Award.

         8.2      Vesting Requirements. The restrictions imposed on shares
granted under a Restricted Stock Award shall lapse in accordance with the
vesting requirements specified by the Committee in the Award Agreement, provided
that the Committee may accelerate the vesting of a Restricted Stock Award at any
time. Such vesting requirements may be based on the continued Service of the
Participant with the Company or its Affiliates for a specified time period (or
periods) or on the attainment of specified performance goals established by the
Committee in its discretion. If the vesting requirements of a Restricted Stock
Award shall not be satisfied, the Award shall be forfeited and the shares of
Common Stock subject to the Award shall be returned to the Company.

         8.3      Restrictions. Shares granted under any Restricted Stock Award
may not be transferred, assigned or subject to any encumbrance, pledge, or
charge until all applicable restrictions are removed or have expired, unless
otherwise allowed by the Committee. Failure to satisfy any applicable
restrictions shall result in the subject shares of the Restricted Stock Award
being forfeited and returned to the Company. The Committee may require in an
Award Agreement that certificates representing the shares granted under a
Restricted Stock Award bear a legend making appropriate reference to the
restrictions imposed, and that certificates representing the shares granted or
sold under a Restricted Stock Award will remain in the physical custody of an
escrow holder until all restrictions are removed or have expired.

         8.4      Rights as Stockholder. Subject to the foregoing provisions of
this Section 8 and the applicable Award Agreement, the Participant shall have
all rights of a stockholder with respect to the shares granted to the
Participant under a Restricted Stock Award, including the right to vote the

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shares and receive all dividends and other distributions paid or made with
respect thereto. The Committee may provide in an Award Agreement for the payment
of dividends and distributions to the Participant at such times as paid to
stockholders generally or at the times of vesting or other payment of the
Restricted Stock Award.

         8.5      Section 83(b) Election. If a Participant makes an election
pursuant to Section 83(b) of the Code with respect to a Restricted Stock Award,
the Participant shall file, within 30 days following the Date of Grant, a copy
of such election with the Company and with the Internal Revenue Service, in
accordance with the regulations under Section 83 of the Code. The Committee may
provide in an Award Agreement that the Restricted Stock Award is conditioned
upon the Participant's making or refraining from making an election with respect
to the Award under Section 83(b) of the Code.

         9.       Change in Control.

         9.1      Effect of Change in Control. Except to the extent an Award
Agreement provides for a different result (in which case the Award Agreement
will govern and this Section 9 of the Plan shall not be applicable),
notwithstanding anything elsewhere in the Plan or any rules adopted by the
Committee pursuant to the Plan to the contrary, if a Triggering Event shall
occur within the 12-month period beginning with a Change in Control of the
Company, then, effective immediately prior to such Triggering Event, each
outstanding Stock Option, to the extent that it shall not otherwise have become
vested and exercisable, shall automatically become fully and immediately vested
and exercisable, without regard to any otherwise applicable vesting requirement.

         9.2      Definitions

                  (a)      Cause. For purposes of this Section 9, the term
         "Cause" shall mean a determination by the Committee that a Participant
         (i) has been convicted of, or entered a plea of nolo contendere to, a
         crime that constitutes a felony under Federal or state law, (ii) has
         engaged in willful gross misconduct in the performance of the
         Participant's duties to the Company or an Affiliate or (iii) has
         committed a material breach of any written agreement with the Company
         or any Affiliate with respect to confidentiality, noncompetition,
         nonsolicitation or similar restrictive covenant. Subject to the first
         sentence of Section 9.1 hereof, in the event that a Participant is a
         party to an employment agreement with the Company or any Affiliate that
         defines a termination on account of "Cause" (or a term having similar
         meaning), such definition shall apply as the definition of a
         termination on account of "Cause" for purposes hereof, but only to the
         extent that such definition provides the Participant with greater
         rights. A termination on account of Cause shall be communicated by
         written notice to the Participant, and shall be deemed to occur on the
         date such notice is delivered to the Participant.

                  (b)      Change in Control. For purposes of this Section 9, a
         "Change in Control" shall be deemed to have occurred upon:

                           (i) the occurrence of an acquisition by any
                  individual, entity or group (within the meaning of Section
                  13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of
                  beneficial ownership (within the meaning of Rule 13d-3
                  promulgated under the Exchange Act) of a percentage of the
                  combined voting power of the then outstanding voting
                  securities of the Company entitled to vote generally in the
                  election of directors (the "Company Voting Securities") (but
                  excluding (1) any acquisition directly from the Company (other
                  than an acquisition by virtue of the exercise of a conversion
                  privilege of a security that was not acquired directly from
                  the Company), (2) any acquisition by the Company or an
                  Affiliate and (3) any acquisition by an employee benefit plan
                  (or related trust) sponsored or maintained by the Company or
                  any Affiliate) (an "Acquisition") that is thirty percent (30%)
                  or more of the Company Voting Securities;

                           (ii) at any time during a period of two (2)
                  consecutive years or less, individuals who at the beginning of
                  such period constitute the Board (and any new directors whose
                  election by the Board or nomination for election by the
                  Company's stockholders was approved by a vote of at least
                  two-thirds (2/3) of the directors then still in office who
                  either were directors at the beginning of the period or whose
                  election or nomination for election was so approved) cease for
                  any reason (except for death, Disability or voluntary
                  retirement) to constitute a majority thereof;

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                           (iii) an Acquisition that is fifty percent (50%) or
                  more of the Company Voting Securities;

                           (iv) the consummation of a merger, consolidation,
                  reorganization or similar corporate transaction, whether or
                  not the Company is the surviving company in such transaction,
                  other than a merger, consolidation, or reorganization that
                  would result in the Persons who are beneficial owners of the
                  Company Voting Securities outstanding immediately prior
                  thereto continuing to beneficially own, directly or
                  indirectly, in substantially the same proportions, at least
                  fifty percent (50%) of the combined voting power of the
                  Company Voting Securities (or the voting securities of the
                  surviving entity) outstanding immediately after such merger,
                  consolidation or reorganization;

                           (v) the sale or other disposition of all or
                  substantially all of the assets of the Company;

                           (vi) the approval by the stockholders of the Company
                  of a complete liquidation or dissolution of the Company; or

                           (vii) the occurrence of any transaction or event, or
                  series of transactions or events, designated by the Board in a
                  duly adopted resolution as representing a change in the
                  effective control of the business and affairs of the Company,
                  effective as of the date specified in any such resolution.

                  (c)      Constructive Termination. For purposes of this
         Section 9, a "Constructive Termination" shall mean a termination of
         employment by a Participant within sixty (60) days following the
         occurrence of any one or more of the following events without the
         Participant's written consent (i) any reduction in position, title (for
         Vice Presidents or above), overall responsibilities, level of
         authority, level of reporting (for Vice Presidents or above), base
         compensation, annual incentive compensation opportunity, aggregate
         employee benefits or (ii) a request that the Participant's location of
         employment be relocated by more than fifty (50) miles. Subject to the
         first sentence of Section 9.1 hereof, in the event that a Participant
         is a party to an employment agreement with the Company or any Affiliate
         (or a successor entity) that defines a termination on account of
         "Constructive Termination," "Good Reason" or "Breach of Agreement" (or
         a term having a similar meaning), such definition shall apply as the
         definition of "Constructive Termination" for purposes hereof in lieu of
         the foregoing, but only to the extent that such definition provides the
         Participant with greater rights. A Constructive Termination shall be
         communicated by written notice to the Committee, and shall be deemed to
         occur on the date such notice is delivered to the Committee, unless the
         circumstances giving rise to the Constructive Termination are cured
         within five (5) days of such notice.

                  (d)      Triggering Event. For purposes of this Section 9, a
         "Triggering Event" shall mean (i) the termination of Service of a
         Participant by the Company or an Affiliate (or any successor thereof)
         other than on account of death, Disability or Cause, (ii) the
         occurrence of a Constructive Termination or (iii) any failure by the
         Company (or a successor entity) to assume, replace, convert or
         otherwise continue any Award in connection with the Change in Control
         (or another corporate transaction or other change effecting the Common
         Stock) on the same terms and conditions as applied immediately prior to
         such transaction, except for equitable adjustments to reflect changes
         in the Common Stock pursuant to Section 4.2 hereof.

         9.3      Excise Tax Limit. In the event that the vesting of Awards
together with all other payments and the value of any benefit received or to be
received by a Participant would result in all or a portion of such payment being
subject to the excise tax under Section 4999 of the Code, then the Participant's
payment shall be either (i) the full payment or (ii) such lesser amount that
would result in no portion of the payment being subject to excise tax under
Section 4999 of the Code (the "Excise Tax"), whichever of the foregoing amounts,
taking into account the applicable Federal, state, and local employment taxes,
income taxes, and the Excise Tax, results in the receipt by the Participant, on
an after-tax basis, of the greatest amount of the payment notwithstanding that
all or some portion of the payment may be taxable under Section 4999 of the
Code. All determinations required to be made under this Section 9 shall be made
by Kempisty & Company Certified Public Accountants, P.C. or any other accounting
firm which is the Company's outside auditor immediately prior to the event
triggering the payments that are subject to the Excise Tax (the "Accounting
Firm"). The Company shall cause the Accounting Firm to provide detailed
supporting calculations of its determinations to the Company and the
Participant. All fees and expenses of the Accounting Firm shall be borne solely
by the Company. The Accounting Firm's determinations must be made with
substantial authority (within the meaning of Section 6662 of the Code). For the
purposes of all calculations under Section 280G of the Code and the application
of this Section 9.3, all determinations as to present value shall be made using

                                  Page 8 of 12
<PAGE>

120 percent of the applicable Federal rate (determined under Section 1274(d) of
the Code) compounded semiannually, as in effect on December 30, 2004.

         10.      Forfeiture Events.

         10.1     General. The Committee may specify in an Award Agreement at
the time of the Award that the Participant's rights, payments and benefits with
respect to an Award shall be subject to reduction, cancellation, forfeiture or
recoupment upon the occurrence of certain specified events, in addition to any
otherwise applicable vesting or performance conditions of an Award. Such events
shall include, but shall not be limited to, termination of Service for cause,
violation of material Company policies, breach of noncompetition,
confidentiality or other restrictive covenants that may apply to the
Participant, or other conduct by the Participant that is detrimental to the
business or reputation of the Company.

         10.2     Termination for Cause. Unless otherwise provided by the
Committee and set forth in an Award Agreement, if a Participant's employment
with the Company or any Affiliate shall be terminated for cause, the Company
may, in its sole discretion, immediately terminate such Participant's right to
any further payments, vesting or exercisability with respect to any Award in its
entirety. In the event a Participant is party to an employment (or similar)
agreement with the Company or any Affiliate that defines the term "cause," such
definition shall apply for purposes of the Plan. The Company shall have the
power to determine whether the Participant has been terminated for cause and the
date upon which such termination for cause occurs. Any such determination shall
be final, conclusive and binding upon the Participant. In addition, if the
Company shall reasonably determine that a Participant has committed or may have
committed any act which could constitute the basis for a termination of such
Participant's employment for cause, the Company may suspend the Participant's
rights to exercise any option, receive any payment or vest in any right with
respect to any Award pending a determination by the Company of whether an act
has been committed which could constitute the basis for a termination for
"cause" as provided in this Section 10.2.

         11.      General Provisions.

         11.1     Award Agreement. To the extent deemed necessary by the
Committee, an Award under the Plan shall be evidenced by an Award Agreement in a
written or electronic form approved by the Committee setting forth the number of
shares of Common Stock or units subject to the Award, the exercise price, base
price, or purchase price of the Award, the time or times at which an Award will
become vested, exercisable or payable and the term of the Award. The Award
Agreement may also set forth the effect on an Award of termination of Service
under certain circumstances. The Award Agreement shall be subject to and
incorporate, by reference or otherwise, all of the applicable terms and
conditions of the Plan, and may also set forth other terms and conditions
applicable to the Award as determined by the Committee consistent with the
limitations of the Plan. Award Agreements evidencing Incentive Stock Options
shall contain such terms and conditions as may be necessary to meet the
applicable provisions of Section 422 of the Code. The grant of an Award under
the Plan shall not confer any rights upon the Participant holding such Award
other than such terms, and subject to such conditions, as are specified in the
Plan as being applicable to such type of Award (or to all Awards) or as are
expressly set forth in the Award Agreement. The Committee need not require the
execution of an Award Agreement by a Participant, in which case, acceptance of
the Award by the Participant shall constitute agreement by the Participant to
the terms, conditions, restrictions and limitations set forth in the Plan and
the Award Agreement as well as the administrative guidelines of the Company in
effect from time to time.

         11.2     No Assignment or Transfer; Beneficiaries. Except as provided
in Section 6.7 hereof, Awards under the Plan shall not be assignable or
transferable by the Participant, except by will or by the laws of descent and
distribution, and shall not be subject in any manner to assignment, alienation,
pledge, encumbrance or charge. Notwithstanding the foregoing, the Committee may
provide in the terms of an Award Agreement that the Participant shall have the
right to designate a beneficiary or beneficiaries who shall be entitled to any
rights, payments or other benefits specified under an Award following the
Participant's death. During the lifetime of a Participant, an Award shall be
exercised only by such Participant or such Participant's guardian or legal
representative. In the event of a Participant's death, an Award may to the
extent permitted by the Award Agreement be exercised by the Participant's
beneficiary as designated by the Participant in the manner prescribed by the
Committee or, in the absence of an authorized beneficiary designation, by the
legatee of such Award under the Participant's will or by the Participant's
estate in accordance with the Participant's will or the laws of descent and
distribution, in each case in the same manner and to the same extent that such
Award was exercisable by the Participant on the date of the Participant's death.

                                  Page 9 of 12
<PAGE>

         11.3     Deferrals of Payment. The Committee may in its discretion
permit a Participant to defer the receipt of payment of cash or delivery of
shares of Common Stock that would otherwise be due to the Participant by virtue
of the exercise of a right or the satisfaction of vesting or other conditions
with respect to an Award. If any such deferral is to be permitted by the
Committee, the Committee shall establish rules and procedures relating to such
deferral in a manner intended to comply with the requirements of Section 409A of
the Code, including, without limitation, the time when an election to defer may
be made, the time period of the deferral and the events that would result in
payment of the deferred amount, the interest or other earnings attributable to
the deferral and the method of funding, if any, attributable to the deferred
amount.

         11.4     Rights as Stockholder. A Participant shall have no rights as a
holder of shares of Common Stock with respect to any unissued securities covered
by an Award until the date the Participant becomes the holder of record of such
securities. Except as provided in Section 4.2 hereof, no adjustment or other
provision shall be made for dividends or other stockholder rights, except to the
extent that the Award Agreement provides for dividend payments or dividend
equivalent rights.

         11.5     Employment or Service. Nothing in the Plan, in the grant of
any Award or in any Award Agreement shall confer upon any Eligible Person any
right to continue in the Service of the Company or any of its Affiliates, or
interfere in any way with the right of the Company or any of its Affiliates to
terminate the Participant's employment or other service relationship for any
reason at any time.

         11.6     Securities Laws. No shares of Common Stock will be issued or
transferred pursuant to an Award unless and until all then applicable
requirements imposed by Federal and state securities and other laws, rules and
regulations and by any regulatory agencies having jurisdiction, and by any
exchanges upon which the shares of Common Stock may be listed, have been fully
met. As a condition precedent to the issuance of shares pursuant to the grant or
exercise of an Award, the Company may require the Participant to take any
reasonable action to meet such requirements. The Committee may impose such
conditions on any shares of Common Stock issuable under the Plan as it may deem
advisable, including, without limitation, restrictions under the Securities Act
of 1933, as amended, under the requirements of any exchange upon which such
shares of the same class are then listed, and under any blue sky or other
securities laws applicable to such shares. The Committee may also require the
Participant to represent and warrant at the time of issuance or transfer that
the shares of Common Stock are being acquired only for investment purposes and
without any current intention to sell or distribute such shares.

         11.7     Tax Withholding. The Participant shall be responsible for
payment of any taxes or similar charges required by law to be withheld from an
Award or an amount paid in satisfaction of an Award, which shall be paid by the
Participant on or prior to the payment or other event that results in taxable
income in respect of an Award. The Award Agreement may specify the manner in
which the withholding obligation shall be satisfied with respect to the
particular type of Award.

         11.8     Unfunded Plan. The adoption of the Plan and any reservation of
shares of Common Stock or cash amounts by the Company to discharge its
obligations hereunder shall not be deemed to create a trust or other funded
arrangement. Except upon the issuance of Common Stock pursuant to an Award, any
rights of a Participant under the Plan shall be those of a general unsecured
creditor of the Company, and neither a Participant nor the Participant's
permitted transferees or estate shall have any other interest in any assets of
the Company by virtue of the Plan. Notwithstanding the foregoing, the Company
shall have the right to implement or set aside funds in a grantor trust, subject
to the claims of the Company's creditors or otherwise, to discharge its
obligations under the Plan.

         11.9     Other Compensation and Benefit Plans. The adoption of the Plan
shall not affect any other share incentive or other compensation plans in effect
for the Company or any Affiliate, nor shall the Plan preclude the Company from
establishing any other forms of share incentive or other compensation or benefit
program for employees of the Company or any Affiliate. The amount of any
compensation deemed to be received by a Participant pursuant to an Award shall
not constitute includable compensation for purposes of determining the amount of
benefits to which a Participant is entitled under any other compensation or
benefit plan or program of the Company or an Affiliate, including, without
limitation, under any pension or severance benefits plan, except to the extent
specifically provided by the terms of any such plan.

                                 Page 10 of 12
<PAGE>

         11.10    Plan Binding on Transferees. The Plan shall be binding upon
the Company, its transferees and assigns, and the Participant, the Participant's
executor, administrator and permitted transferees and beneficiaries.

         11.11    Severability. If any provision of the Plan or any Award
Agreement shall be determined to be illegal or unenforceable by any court of law
in any jurisdiction, the remaining provisions hereof and thereof shall be
severable and enforceable in accordance with their terms, and all provisions
shall remain enforceable in any other jurisdiction.

         11.12    Foreign Jurisdictions. The Committee may adopt, amend and
terminate such arrangements and grant such Awards, not inconsistent with the
intent of the Plan, as it may deem necessary or desirable to comply with any
tax, securities, regulatory or other laws of other jurisdictions with respect to
Awards that may be subject to such laws. The terms and conditions of such Awards
may vary from the terms and conditions that would otherwise be required by the
Plan solely to the extent the Committee deems necessary for such purpose.
Moreover, the Board may approve such supplements to or amendments, restatements
or alternative versions of the Plan, not inconsistent with the intent of the
Plan, as it may consider necessary or appropriate for such purposes, without
thereby affecting the terms of the Plan as in effect for any other purpose.

         11.13    Substitute Awards in Corporate Transactions. Nothing contained
in the Plan shall be construed to limit the right of the Committee to grant
Awards under the Plan in connection with the acquisition, whether by purchase,
merger, consolidation or other corporate transaction, of the business or assets
of any corporation or other entity. Without limiting the foregoing, the
Committee may grant Awards under the Plan to an employee or director of another
corporation who becomes an Eligible Person by reason of any such corporate
transaction in substitution for awards previously granted by such corporation or
entity to such person. The terms and conditions of the substitute Awards may
vary from the terms and conditions that would otherwise be required by the Plan
solely to the extent the Committee deems necessary for such purpose.

         11.14    Governing Law. The Plan and all rights hereunder shall be
subject to and interpreted in accordance with the laws of the State of Utah,
without reference to the principles of conflicts of laws, and to applicable
Federal securities laws.

         11.15    Financial Statements. All Participants shall receive the
financial statements of the Company at least annually.

         11.16    Performance Based Awards. For purposes of Stock Awards and
Restricted Stock Awards granted under the Plan that are intended to qualify as
"performance-based" compensation under Section 162(m) of the Code, such Awards
shall be granted to the extent necessary to satisfy the requirements of Section
162(m) of the Code.

         11.17    Stockholder Approval. The Plan must be approved by the
stockholders by a majority of all shares entitled to vote within twelve (12)
months after the date the Plan was adopted by the Board. Any Incentive Stock
Options granted before stockholder approval is obtained shall be converted into
Nonqualified Stock Options if stockholder approval is not obtained within twelve
(12) months before or after the Plan was adopted.

         12.      Effective Date; Amendment and Termination.

         12.1     Effective Date. The Plan shall become effective following its
adoption by the Board. The term of the Plan shall be ten (10) years from the
date of adoption by the Board, subject to Section 12.3 hereof.

         12.2     Amendment. The Board may at any time and from time to time and
in any respect, amend or modify the Plan. The Board may seek the approval of any
amendment or modification by the Company's stockholders to the extent it deems
necessary or advisable in its discretion for purposes of compliance with Section
162(m) or Section 422 of the Code, or exchange or securities market or for any
other purpose. No amendment or modification of the Plan shall adversely affect
any Award theretofore granted without the consent of the Participant or the
permitted transferee of the Award.

                                 Page 11 of 12
<PAGE>

         12.3     Termination. The Plan shall terminate on the tenth anniversary
of the date of its adoption by the Board. The Board may, in its discretion and
at any earlier date, terminate the Plan. Notwithstanding the foregoing, no
termination of the Plan shall adversely affect any Award theretofore granted
without the consent of the Participant or the permitted transferee of the Award.

                                 Page 12 of 12_

Exhibit 10.21

LITTLE SQUAW GOLD MINING COMPANY

(an Alaska corporation)

3412 S. Lincoln Dr.

Spokane, WA 99203-1650

        

SUBSCRIPTION AGREEMENT

             

Instructions

PLEASE COMPLETE AND SIGN TWO COPIES OF THE SUBSCRIPTION AGREEMENT

November 2006

Little Squaw Gold Mining Company

SUBSCRIPTION AGREEMENT FOR UNITS

The undersigned (the “Subscriber”) hereby irrevocably subscribes for and agrees to purchase from Little Squaw Gold Mining Company (the “Corporation”) that number of Units (the “Units”) set out below at a price of US$1.00 per Unit.  Each Unit consists of one Common Share (as hereinafter defined) and one half of one Class C Warrant (as hereinafter defined).  The Subscriber agrees to be bound by the terms and conditions set forth in the attached “Terms and Conditions of Subscription for Units” including without limitation the representations, warranties and covenants set forth in the applicable schedules attached thereto. The Subscriber further agrees, without limitation, that the Corporation may rely upon the Subscriber’s representations, warranties and covenants contained in such documents.

If you are a “U.S. Purchaser”, complete and sign the U.S. Accredited Investor Certificate – Exhibit A.  A “U.S. Purchaser” is (a) any “U.S. person” as defined in Regulation S under United States federal securities laws, (b) any person purchasing securities on behalf of any “U.S. Person” or any person in the United States, (c) any person that receives or received an offer of the securities while in the United States, or (d) any person that is in the United States at the time the purchaser’s buy order was made or this subscription agreement was executed or delivered.

SUBSCRIPTION AND SUBSCRIBER INFORMATION

Please print all information (other than signatures), as applicable, in the space provided below 

			
	

	 	

Number of Units:  

x US$1.00

	(Name of Subscriber)

	 	 
	 	 	=

	Account Reference (if applicable):  

	 	 
	

By:  

	 	Aggregate Subscription Price:  

(the “Subscription Price”)

	Authorized Signature

	 	 
	 	 	 
	

(Official Capacity or Title – if the Subscriber is not an individual)

(Name of individual whose signature appears above if different than the name of the subscriber printed above.)

(Subscriber’s Address, including Municipality and Province)

S.I.N. or Taxation Account of Subscriber

(Telephone Number)

(Email Address)

	

	

If the Subscriber is signing as agent for a principal (beneficial purchaser) and is not purchasing as trustee or agent for accounts fully managed by it, complete the following:

(Name of Principal)

(Principal’s Address)

	 	 	 
	

Account Registration Information:

(Name)

(Account Reference, if applicable)

(Address, including Postal Code)

	 	

Delivery Instructions as set forth below:

(Name)

(Account Reference, if applicable)

(Address)

(Contact Name)

(Telephone Number)

Subscription Agreement - 2 of 25

SUBSCRIPTION AGREEMENT

FOR UNITS OF

LITTLE SQUAW GOLD MINING COMPANY

(an Alaska corporation)

1.

Unit Subscription: The undersigned (“Subscriber”) irrevocably subscribes for and agrees to purchase from Little Squaw Gold Mining Company, an Alaska corporation (“Little Squaw” or the “Company”) that number of Units of Little Squaw (the “Units”) set out in the “SUBSCRIPTION AND SUBSCRIBER INFORMATION”  at a price of US$1.00 per Unit (the “Purchase Price”).  Each Unit consists of one share of Common Stock, $0.10 par value (a “Common Share”), and one half of one (1/2) Class C Warrant (a “Warrant”); each whole warrant is exercisable to acquire one Common Share (a “Warrant Share”) at an exercise price of  US$1.50 per share during the two-year period commencing on the Closing Date (collectively the Common Shares, the Warrants and the Warrant Shares are referred to herein as the “Securities”). The warrant certificates will be in substantially the form attached hereto as Exhibit B.  All figures are in United States Dollars unless otherwise specified.  Such Subscription is subject to the following terms and conditions:

a.

Tender of Purchase Price:  Subscriber tenders to Little Squaw the Purchase Price either by a check payable to the order of “Little Squaw Gold Mining Company” or a wire transfer to Little Squaw, pursuant to the instructions set forth on Schedule I.

b.

Closing:  Upon receipt by Little Squaw of the Purchase Price, the closing (the “Closing”) shall occur prior to 12:00 p.m. on December 20, 2006, at the offices of Dorsey & Whitney LLP, Republic Plaza Building, Suite 4700, 370 Seventeenth Street, Denver, CO  80202-5647 or at such other time or place as may be agreed to by Little Squaw and the Subscriber  (the "Closing Date").  All funds will be delivered to Little Squaw.  The Securities subscribed for herein will not be deemed issued to, or owned by, the Subscriber until the Subscription Agreement has been executed by the Subscriber and countersigned by Little Squaw, and all payments required to be made herein have been made.  The Closing is subject to the fulfillment of the following conditions (the “Conditions”) which Conditions Little Squaw and the Subscriber covenant to exercise their reasonable best efforts to have fulfilled on or prior to the Closing Date:

(i)

the Subscriber shall have tendered the Purchase Price to Little Squaw;

(ii)

all relevant documentation and approvals as may be required by applicable securities statutes, regulations, policy statements and interpretation notes, by applicable securities regulatory authorities and by applicable rules shall have been obtained and, where applicable, executed by or on behalf of the Subscriber;

(iii)

Little Squaw shall have authorized and approved the execution and delivery of this Subscription Agreement (“Agreement’) and the issuance, allotment and delivery of the Securities;

(iv)

Little Squaw  and the Subscriber  shall have complied with its covenants contained in this Agreement to be complied with prior to Closing, and Little Squaw for the benefit of the Subscriber shall have delivered a Certificate of a senior officer of the Company (acting without personal liability) to that effect to the Subscriber; and

(v)

the representations and warranties of Little Squaw  and the Subscriber  set forth in this Agreement shall be true and correct as of the Closing Date.

c.

Issuance of Securities:

Within five (5) days after the Closing Date, Little Squaw will deliver the certificates representing the Common Shares and the Warrants subscribed for to the Subscriber at the address set forth in the registration instructions set forth on the signature page (unless Subscriber otherwise instructs Little Squaw in writing).   None of the Units, the Common Shares, the Warrants or the Common Shares issuable upon exercise of the Warrants have been registered under the  Securities Act of 1933, as amended ("U.S. Securities Act"), or the securities laws of any state in the United States.  

1.

Representations and Warranties: Subscriber hereby represents and warrants to Little Squaw:

a.

SUBSCRIBER UNDERSTANDS THAT THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION  OR ANY STATE SECURITIES AGENCY.

b.

Subscriber is not an underwriter and Subscriber acquired the Securities solely for investment for its own account and not with a view to, or for, resale in connection with any distribution of securities within the meaning of the U.S. Securities Act; and the Securities are not being purchased with a view to or for the resale, distribution, subdivision or fractionalization thereof; and the undersigned has no contract, undertaking, understanding, agreement, or arrangement, formal or informal, with any person to sell, transfer, or pledge to any person the securities for which it hereby subscribes, or any part thereof; and it understands that the legal consequences of the foregoing representations and warranties to mean that it must bear the economic risk of the investment for an indefinite period of time because the Securities have not been registered under the U.S. Securities Act, and, therefore, may be resold only if registered under the U.S. Securities Act or if an exemption from such registration is available.

c.

Subscriber understands the speculative nature and risks of investments associated with Little Squaw, and confirms that the Securities would be suitable and consistent with its investment program and that its financial position enables Subscriber to bear the risks of this investment, and that there may not be any public market for the Securities.

d.

The Securities subscribed for herein may not be transferred, encumbered, sold, hypothecated, or otherwise disposed of to any person, except in compliance with the U.S. Securities Act and applicable state securities or “blue sky” laws.  The Subscriber acknowledges that the Securities are “restricted securities,” as such term is defined under Rule 144 of the U.S. Securities Act, and may not be offered, sold, transferred, pledged, or hypothecated to any person in the absence of registration under the U.S. Securities Act or an opinion of counsel satisfactory to the Company that registration is not required.  Without limiting the generality or application of any other covenants, representations, warranties or acknowledgements of the Subscriber respecting resale of the Securities, if the Subscriber decides to offer, sell or otherwise transfer any of the Securities, it will not offer, sell or otherwise transfer any of such Securities directly or indirectly, unless:

o

the sale is to the Company;

o

the sale is made outside the United States in a transaction satisfying the requirements of Regulation S under the U.S. Securities Act and in compliance with applicable local laws and regulations;

o

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

o

the Securities are sold in a transaction that does not require registration under the U.S. Securities Act or any applicable state laws and regulations governing the offer and sale of Securities, and it has prior to such sale furnished to the Company an opinion of counsel to that effect, which opinion and counsel shall be  reasonably satisfactory to the Company; or

o

the Securities are registered under the U.S. Securities Act and any applicable state laws and regulations governing the offer and sale of such Securities, and the Subscriber understands that the Company may instruct its registrar and transfer agent not to record any transfer of the Securities without first being notified by the Company that it is satisfied that such transfer is exempt from or not subject to the registration requirements of the U.S. Securities Act and applicable state securities laws.

e.

Subscriber understands that Little Squaw is under no obligation, except as stated in Section 4 below, to register the Securities or seek an exemption under the U.S. Securities Act or any applicable state laws for the Securities, or to cause or permit the Securities to be transferred in the absence of any such registration or exemption, and understands that Subscriber  must hold the Securities indefinitely unless the Securities are subsequently registered under U.S. Securities Act and applicable state securities laws or an exemption from registration is available.

f.

At the time of subscription, Subscriber reviewed the economic consequences of the purchase of the Securities with its attorney and/or other financial advisor, was afforded access to the books and records of the Company, conducted an independent investigation of the business of the Company, and was fully familiar with the financial affairs of the Company.   Subscriber consulted with its counsel with respect to the U.S. Securities Act and applicable federal and state securities laws. The Company has not provided the Subscriber with any representations, statements, or warranties as to the Securities.  Subscriber has received copies of, or has access to, the Company’s Form 10-KSB/A for the year ended December 31, 2005, the Company’s Form 10-QSB/A for the quarter ended March 31, 2006 and the Company’s Form 10-QSBs for the quarters ended June 30, 2006 and September 30, 2006, and the Company’s current reports on Form 8-K filed since January 1, 2006, all of which are filed electronically on EDGAR.

g.

Subscriber had the opportunity to ask questions of the Company and receive additional information from the Company to the extent that the Company possessed such information, or could acquire it without unreasonable effort or expense, necessary to evaluate the merits and risks of an investment in Little Squaw.

h.

Subscriber confirms that (i) it is able to bear the economic risk of the investment, (ii) it is able to hold the Securities for an indefinite period of time, (iii) it is able to afford a complete loss of its investment and that it has adequate means of providing for its current needs and possible personal contingencies, and that it has no need for liquidity in this investment, (iv) this investment is suitable for Subscriber based upon his investment holdings and financial situation and needs, and this investment does not exceed ten percent of Subscriber’s net worth, and (v) Subscriber by reason of its business or financial experience could be reasonably assumed to have the capacity to protect its own  interests  in connection with this investment. 

i.

The Subscriber has not purchased the Securities as a result of any form of general solicitation or general advertising, including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio, or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising.

j.

Subscriber confirms that this transaction is intended to be exempt from registration under the U.S. Securities Act by virtue of section 4(2) of the U.S. Securities Act, the provisions of Rule 506 of Regulation D promulgated thereunder, or the exception  from the registration requirements available under Regulations S of the U.S. Securities Act and confirms that it is an “accredited investor” (as that term is defined under Rule 501(a) as promulgated under Regulation D of the U.S. Securities Act).   

k.

Unless the Subscriber has completed and delivered a U.S. Accredited Investor Certificate (Exhibit A), the Subscriber represents and acknowledges that:

(i) 

it is not a “U.S. person”, as defined in Regulation S under the U.S. Securities Act (which definition includes but is not limited to (A) any individual resident in the United States, (B) any partnership or corporation organized or incorporated under the laws of the United States, (C) any partnership or corporation formed by a U.S. person under the laws of any foreign jurisdiction principally for the purpose of investing in securities not registered under the U.S. Securities Act, or (D) any estate or trust of which any executor, administrator or trustee is a U.S. person), and is not purchasing the Securities for the account or benefit of a “U.S. person”;

(ii) 

it was not offered any of the Securities in the United States, did not receive any materials relating to the offer of the Securities in the United States, and did not execute this Agreement or any other materials relating to the purchase of the Securities in the United States; and 

l.

the Certificates representing the Securities delivered pursuant to this Subscription shall bear a legend in the following form:

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) IF THE SECURITIES HAVE BEEN REGISTERED IN COMPLIANCE WITH THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS (C) IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE SECURITIES ACT IN ACCORDANCE WITH RULE 144 THEREUNDER, IF APPLICABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE LAWS AND REGULATIONS GOVERNING THE OFFER AND SALE OF SECURITIES, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE COMPANY AN OPINION OF COUNSEL OF RECOGNIZED STANDING, OR OTHER EVIDENCE OF EXEMPTION, REASONABLY SATISFACTORY TO THE COMPANY.  HEDGING TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH U.S. SECURITIES LAWS.”

Notwithstanding the foregoing, Little Squaw or its transfer agent shall issue certificates representing common shares issuable upon conversion of the  warrants without a restrictive legend if there is an effective registration statement (as defined by Section 4(a)) and the holder certifies that the exercise is in connection with a sale and the holder has complied with the applicable prospectus delivery requirements and applicable securities laws.

If the Certificates representing the Securities have been held for a period of at least one (1) year and if Rule 144 under the U.S. Securities Act is applicable (there being no representations by Little Squaw that Rule 144 is applicable), then the undersigned may make sales of the Securities only under the terms and conditions prescribed by Rule 144 of the U.S. Securities Act or exemptions therefrom.  Little Squaw shall use commercially reasonable efforts to cause its legal counsel to deliver an opinion or such other documentation as may reasonably be required to effect sales of the Securities under Rule 144.

All information which the Subscriber has provided concerning the Subscriber is correct and complete as of the date set forth below, and if there should be any change in such information prior to the acceptance of this Agreement by the Company, the Subscriber will immediately provide such information to the Company.

1.

Company Representations, Warranties and Covenants.   Little Squaw represents, warrants  and covenants (and acknowledges that the Subscriber is relying on such representations, warranties and covenants) that, at the Closing Date:

a.

each of Little Squaw and each of its subsidiaries is a valid and subsisting corporation duly incorporated and in good standing under the laws of its jurisdiction of incorporation, and Little Squaw has no subsidiaries other than as set forth in the Company’s annual report on Form 10-KSB/A for the year ended December 31, 2005;

b.

each of Little Squaw and each of its subsidiaries is duly registered and licensed to carry on business in the jurisdictions in which it carries on business or owns property where so required by the laws of that jurisdiction;

c.

Little Squaw will reserve or set aside sufficient shares of common stock in its treasury to issue the Common Shares issuable upon exercise of the Warrants, and all such Securities will upon payment of the recited consideration and issuance be duly and validly issued as fully paid and non-assessable;

d.

the issue and sale of the Securities by Little Squaw does not and will not conflict with, and does not and will not result in a breach of, any of the terms of its incorporating documents or any agreement or instrument to which Little Squaw is a party;

e.

Little Squaw has complied and will comply fully with the requirements of all applicable corporate and securities laws in all matters relating to the offering of the Units;

f.

there are no legal or governmental actions, suits, proceedings or investigations pending or, to Little Squaw’s knowledge, threatened, to which Little Squaw or any of its subsidiaries is or may be a party or of which property owned or leased by Little Squaw or any of its subsidiaries is or may be the subject, or related to environmental, title, discrimination or other matters, which actions, suits, proceedings or investigations, individually or in the aggregate, could have a material adverse effect on Little Squaw;  

g.

there are no judgments against Little Squaw or any of its subsidiaries, if any, which are unsatisfied, nor is Little Squaw or any of its subsidiaries, if any, subject to any injunction, judgment, decree or order of any court, regulatory body, administrative agency or other governmental body;

h.

this Agreement has been or will be by the Closing Date, duly authorized by all necessary corporate action on the part of Little Squaw, and Little Squaw has full corporate power and authority to undertake this offering;

i.

this Agreement has been duly authorized, executed and delivered by the Corporation and constitutes a valid and legally binding obligation of the Company enforceable against it in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other laws relating to or affecting the rights of creditors generally and except as limited by the application of equitable principles when equitable remedies are sought, and by the fact that rights to indemnity, contribution and waiver, and the ability to sever unenforceable terms, may be limited by applicable law;

j.

subject to the accuracy of the representations and warranties of the Subscriber contained in this Agreement, the offer, sale and issuance of the Securities as contemplated by this Agreement are exempt from the registration requirements of the U.S. Securities Act, from the registration or qualifications requirements of the state securities or “blue sky” laws and regulations of any applicable state or other applicable jurisdiction;

k.

Little Squaw’s shares of common stock are quoted for trading on the National Association of Securities Dealers over-the-counter electronic bulletin board (the “OTCBB”), 

l.

no order ceasing, halting or suspending trading in securities of Little Squaw nor prohibiting the sale of such securities has been issued to and is outstanding against Little Squaw or its directors, officers or promoters, and, to the best of Little Squaw’s knowledge, no investigations or proceedings for such purposes are pending or threatened;

m.

except for (i) a cash commission in the amount of 6% payable to Strata Partners and certain selling agents and (ii) agent’s option, equal in number to 5% of the number of Units subscribed for hereby, to be issued to Strata Partners and certain selling agents, no person, firm or corporation acting or purporting to act at the request of Little Squaw is entitled to any brokerage, agency or finder’s fee in connection with the purchase and sale of the Securities described herein;

n.

Little Squaw is a "reporting issuer" under section 12 of the Securities Exchange Act of 1934, as amended (the “1934 Act”) and is not in default of any of the requirements of the 1934 Act;

o.

as of their respective filing dates, each report, schedule, registration statement and proxy filed by Little Squaw with the United States Securities and Exchange Commission (“SEC”) (each, an “SEC Report” and collectively, the “SEC Reports”) (and if any SEC Report filed prior to the date of this Agreement was amended or superseded by a filing prior to the date of this Agreement, then also on the date of filing of such amendment or superseding filing), where required, were prepared in all material respects in accordance with the requirements of the U.S. Securities Act, or the 1934 Act, as the case may be, and the rules and regulations promulgated under such Acts applicable to such SEC Reports;

p.

Little Squaw has established on its books and records reserves which are adequate for the payment of all taxes not yet due and payable and there are no liens for taxes on the assets of Little Squaw or its subsidiaries, if any, except for taxes not yet due, and there are no audits of any of the tax returns of Little Squaw which are known by Little Squaw’s management to be pending, and there are no claims which have been or may be asserted relating to any such tax returns which, if determined adversely, would result in the assertion by any governmental agency of any deficiency which would have a material adverse effect on the properties, business or assets of Little Squaw;

q.

Little Squaw is not an "investment company" within the meaning of the Investment Company Act of 1940;

r.

neither Little Squaw nor any of its affiliates, nor any person acting on its or their behalf (i) has made or will make any “directed selling efforts” (as such term is defined in Regulation S of the U.S. Securities Act) in the United States, or (ii) has engaged in or will engage in any form of “general solicitation” or “general advertising” (as such terms are defined in Rule 502 (c) under Regulation D of the U.S. Securities Act) in the United States with respect to offers or sales of the Securities;

s.

Little Squaw  has not, for a period of six months prior to the date hereof, sold, offered for sale or solicited, and will not for a period of six months after the Closing Date, offer, sell or solicit, any offer to buy any of its securities in a manner that would be integrated with the offer and sale of the Securities and would cause the exemption from registration set forth in Rule 506 of Regulation D or Rule 903 of Regulation S of the U.S. Securities Act to become unavailable with respect to the offer and sale of the Securities; and

t.

the warranties and representations in this section are true and correct and will remain so as of the Closing Date.

1.

Registration Rights

a.

Little Squaw shall use reasonable commercial efforts to (i) prepare and file with the SEC within sixty (60) calendar days after the Closing Date a registration statement (on Form S-3, SB-1, SB-2, S-1, or other appropriate registration statement form reasonably acceptable to the Subscriber) under the U.S. Securities Act (the “Registration Statement”), at the sole expense of Little Squaw (except as specifically provided in Section  hereof), in respect of the Subscriber, so as to permit a public offering and resale of the Common Shares and Warrant Shares (collectively, the “Registrable Securities”) in the United States under the U.S. Securities Act by the Subscriber as selling stockholder and not as underwriter; and (ii) use commercially reasonable efforts to cause a Registration Statement to be declared effective by the SEC as soon as possible, but in any event not later than the earlier of (a) one hundred twenty (120) days following the Closing Date (or one hundred fifty (150) days in the event of an SEC review of the Registration Statement), and (b) the fifth trading day following the date on which Little Squaw is notified by the SEC that the Registration Statement will not be reviewed or is no longer subject to further review and comments.  Little Squaw will notify the Subscriber of the effectiveness of the Registration Statement (the “Effective Date”) within three (3) Trading Days (days in which the OTCBB is open for quotation) (each, a “Trading Day”).

b.

Little Squaw will use reasonable commercial efforts to maintain the Registration Statement or post-effective amendment filed under this Section 4 effective under the U.S. Securities Act until the earlier of the date (i) all of the Registrable Securities have been sold pursuant to such Registration Statement, (ii) the Subscriber  receives an opinion of counsel to Little Squaw, which opinion and counsel shall be reasonably acceptable to the Subscriber, that the Registrable Securities may be sold under the provisions of Rule 144 without limitation as to volume, (iii) all Registrable Securities, (or all Common Stock and Warrants, in the case of Warrants not then exercised) have been otherwise transferred to persons who may trade the Registrable Securities without restriction under the U.S. Securities Act, and Little Squaw has delivered a new certificate or other evidence of ownership for such Registrable Securities not bearing a restrictive legend, (iv) all Registrable Securities may be sold without any time, volume or manner limitations pursuant to Rule 144(k) or any similar provision then in effect under the U.S. Securities Act in the opinion of counsel to Little Squaw, which counsel shall be reasonably acceptable to the Subscriber, (v) Little Squaw obtains the written consent of the Subscriber, or (vi) three (3) years from the Effective Date (the “Effectiveness Period”).

c.

All fees, disbursements and out-of-pocket expenses and costs incurred by Little Squaw in connection with the preparation and filing of the Registration Statement and in complying with applicable securities and “blue sky” laws (including, without limitation, all attorneys' fees of Little Squaw, registration, qualification, notification and filing fees, printing expenses, escrow fees, blue sky fees and expenses and the expense of any special audits incident to or required by any such registration) shall be borne by Little Squaw.  The Subscriber shall bear the cost of underwriting and/or brokerage discounts, fees and commissions, if any, applicable to the Registrable Securities being registered and the fees and expenses of its counsel.   The Subscriber and its counsel shall have a reasonable period, not to exceed five (5) Trading Days, to review the proposed Registration Statement or any amendment thereto, prior to filing with the SEC.   Little Squaw shall qualify any of the Registrable Securities for sale in such states as the Subscriber reasonably designates.  However, Little Squaw shall not be required to qualify in any state which will require an escrow or other restriction relating to Little Squaw and/or the sellers, or which will require Little Squaw to qualify to do business in such state or require Little Squaw to file therein any general consent to service of process.  Little Squaw at its expense will supply the Subscriber with copies of the applicable Registration Statement and the prospectus included therein and other related documents in such quantities as may be reasonably requested by the Subscriber.

d.

Prior to the effectiveness of the Registration Statement filed pursuant to Section 4(), the rights to cause Little Squaw to register Registrable Securities granted to the Subscriber by Little Squaw under this Section 4 may be assigned in full by a Subscriber in connection with a transfer by such Subscriber of not less than 1,000,000 Common Shares or not less than 500,000 Warrants, in either case in a single transaction to a single transferee purchasing as principal, provided, however, that (i) such transfer is otherwise effected in accordance with applicable securities laws; (ii) such Subscriber gives prior written notice to Little Squaw; and (iii) such transferee agrees to comply with the terms and provisions of this Agreement, and such transfer is otherwise in compliance with this Agreement. 

e.

If at any time or from time to time after the Effective Date, Little Squaw notifies the Subscriber in writing of the existence of a Potential Material Event (as defined in Section () below), the Subscriber shall not offer or sell any Registrable Securities or engage in any other transaction involving or relating to Registrable Securities, from the time of the giving of notice with respect to a Potential Material Event until the Subscriber receives written notice from Little Squaw that such Potential Material Event either has been disclosed to the public or no longer constitutes a Potential Material Event.  If a Potential Material Event shall occur prior to the date a Registration Statement is required to be filed, then Little Squaw’s obligation to file such Registration Statement shall be delayed without penalty for not more than thirty (30) calendar days.  Little Squaw must, if lawful, give the Subscriber notice in writing at least two (2) Trading Days prior to the first day of the blackout period.

f.

“Potential Material Event” means any of the following: (i) the possession by Little Squaw of material information not ripe for disclosure in a registration statement, as determined in good faith by the Chief Executive Officer, President or the Board of Directors of Little Squaw that disclosure of such information in a Registration Statement would be detrimental to the business and affairs of Little Squaw; or (ii) any material engagement or activity by Little Squaw which would, in the good faith determination of the Chief Executive Officer, President or the Board of Directors of Little Squaw, be adversely affected by disclosure in a registration statement at such time, which determination shall be accompanied by a good faith determination by the Chief Executive Officer, President or the Board of Directors of Little Squaw that the applicable Registration Statement would be materially misleading absent the inclusion of such information; provided  that, (i) Little Squaw shall not use such right with respect to the Registration Statement for more than an aggregate of 90 days in any 12-month period; and (ii) the number of days Little Squaw is required to keep the Registration Statement effective shall be extended by the number of days for which the Company shall have used such right.

g.

The Subscriber will cooperate with Little Squaw in all respects in connection with this Agreement, including timely supplying all information reasonably requested by Little Squaw (which shall include all information regarding the Subscriber and proposed manner of sale of the Registrable Securities required to be disclosed in any Registration Statement) and executing and returning all documents reasonably requested in connection with the registration and sale of the Registrable Securities and entering into and performing its obligations under any underwriting agreement, if the offering is an underwritten offering, in usual and customary form, with the managing underwriter or underwriters of such underwritten offering.  Any delay or delays caused by the Subscriber, or by any other purchaser of securities of Little Squaw having registration rights similar to those contained herein, by failure to cooperate as required hereunder shall not constitute a breach or default of Little Squaw under this Agreement. 

h.

Whenever Little Squaw is required by any of the provisions of this Agreement to effect the registration of any of the Registrable Securities under the U.S. Securities Act, Little Squaw shall (except as otherwise provided in this Agreement), as expeditiously as possible, subject to the  assistance and cooperation as reasonably required of the Subscriber with respect to each Registration Statement:

(i)

furnish to the Subscriber such numbers of copies of a prospectus including a preliminary prospectus or any amendment or supplement to any prospectus, as applicable, in conformity with the requirements of the U.S. Securities Act, and such other documents as the Subscriber may reasonably request in order to facilitate the public sale or other disposition of the Registrable Securities owned by the Subscriber;

(ii)

register and qualify the Registrable Securities covered by the Registration Statement under such other securities or blue sky laws of such jurisdictions as the Subscriber shall reasonably request (subject to the limitations set forth in Section (b) above), and do any and all other acts and things which may be necessary or advisable to enable the Subscriber to consummate the public sale or other disposition in such jurisdiction of the securities owned by the Subscriber;

(iii)

cause the Registrable Securities to be quoted or listed on each service on which the Common Stock of Little Squaw is then quoted or listed; 

(iv)

notify the Subscriber, at any time when a prospectus relating thereto covered by the Registration Statement is required to be delivered under the U.S. Securities Act, of the happening of any event of which it has knowledge as a result of which the prospectus included in the Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of  the circumstances then existing, and Little Squaw shall prepare and file a curative amendment as promptly as commercially reasonable; 

(v)

as promptly as practicable after becoming aware of such event, notify the Subscriber, (or, in the event of an underwritten offering, the managing underwriters) of the issuance by the SEC of any stop order or other suspension of the effectiveness of the Registration Statement at the earliest possible time and take all lawful action to effect the withdrawal, rescission  or removal of such stop order or other suspension; and

(vi)

provide a transfer agent and registrar for all securities registered pursuant to the Registration Statement and a CUSIP number for all such securities.

i.

With respect to any sale of Registrable Securities pursuant to a Registration Statement filed pursuant to this Section 4, the Subscriber hereby covenants with Little Squaw (i) not to make any sale of the Registrable Securities without effectively causing the prospectus delivery requirements under the Securities Act to be satisfied and (ii) to notify Little Squaw promptly upon disposition of all of the Registrable Securities. 

j.

In addition to the registration rights set forth in Section 4(a), if the Registration Statement filed pursuant to Section 4(a) is not filed within 120 calendar days from the Closing Date, or otherwise declared effective by the SEC, then the Subscriber shall also have certain “piggy-back” registration rights as follows:

(i)

If at any time after the issuance of the Registrable Securities, Little Squaw shall file with the SEC a registration statement under the U.S. Securities Act registering any shares of equity securities, Little Squaw shall give written notice to the Subscriber prior to such filing.

(ii)

Within twenty (20) calendar days after such notice from Little Squaw, the Subscriber shall give written notice to Little Squaw whether or not such Subscriber desires to have all of such Subscriber’s Registrable Securities included in the registration statement.  If any Subscriber fails to give such notice within such period, such Subscriber shall not have the right to have Subscriber’s Registrable Securities registered pursuant to such registration statement.  If the Subscriber gives such notice, then Little Squaw shall include such Subscriber’s Registrable Securities in the registration statement, at Company’s sole cost and expense, subject to the remaining terms of this Section 4(j).

(iii)

If the registration statement relates to an underwritten offering, and the underwriter shall determine in writing that the total number of shares of equity securities to be included in the offering, including the Registrable Securities, shall exceed the amount which the underwriter deems to be appropriate for the offering, the number of shares of the Registrable Securities shall be reduced in the same proportion as the remainder of the shares in the offering and such participating Subscriber’s Registrable Securities included in such registration statement will be reduced proportionately.  For this purpose, if other securities in the registration statement are derivative securities, their underlying shares shall be included in the computation.  Each participating Subscriber shall enter into such agreements as may be reasonably required by the underwriters and each Subscriber shall pay the underwriters commissions relating to the sale of their respective Registrable Securities.

(iv)

The Subscriber shall have an unlimited number of opportunities to have the Registrable Securities registered under this Section 4(j) provided that Little Squaw shall not be required to register any Registrable Security or keep any Registration Statement effective beyond such period required under Section 4(b) of this Agreement. 

(v)

The Subscriber shall furnish in writing to Little Squaw such information as Little Squaw shall reasonably require in connection with a registration statement.

1.

Indemnity and Contribution

a.

Little Squaw agrees to indemnify and hold harmless each Subscriber, their respective officers, directors, employees, partners, legal counsel and accountants, and each person controlling such Subscriber within the meaning of Section 15 of the U.S. Securities Act, and each person who controls any underwriter within the meaning of Section 15 of the U.S. Securities Act, from and against any losses, claims, damages, expenses or liabilities (or actions or proceedings in respect thereof) to which such Subscriber or such other indemnified person may become subject  (including in settlement of litigation, whether commenced or threatened) insofar as such losses, claims, damages, expenses or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon, any untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact in the Registration Statement, including all documents filed as a part thereof and information deemed to be a part thereof, on the effective date thereof, or any amendment or supplements thereto, or arise out of any failure by Little Squaw to fulfill any undertaking or covenant included in the Registration Statement or to perform its obligations hereunder or under applicable law and Little Squaw will, as incurred, reimburse such Subscriber, each of its respective officers, directors, employees, partners, legal counsel and accountants, and each person controlling such Subscriber, and each person who controls any such underwriter, for any legal or other expenses reasonably incurred in investigating, defending or preparing to defend, settling, compromising or paying such action, proceeding or claim; provided, however, that Little Squaw shall not be liable in any such case to the extent that such loss, claim, damage, expense or liability (or action or proceeding in respect thereof) arises out of, or is based upon, (i) the failure of any Subscriber, or any of their agents, affiliates or persons acting on their behalf, to comply with the covenants and agreements contained in this Agreement with respect to the sale of Registrable Securities, (ii) an untrue statement or omission in such Registration Statement in reliance upon and in conformity with written information furnished to Little Squaw by an instrument duly executed by or on behalf of the Subscriber, or any of its agents, affiliates or persons acting on its behalf, and stated to be specifically for use in preparation of the Registration Statement and not corrected in a timely manner by the Subscriber in writing or (iii) an untrue statement or omission in any prospectus that is corrected in any subsequent prospectus, or supplement or amendment thereto, that was delivered to the Subscriber prior to the pertinent sale or sales by such Subscriber and not delivered by the Subscriber to the individual or entity to which it made such sale(s) prior to such sale(s).

b.

The Subscriber agrees to indemnify and hold harmless Little Squaw from and against any losses, claims, damages, expenses or liabilities (or actions or proceedings in respect thereof) to which Little Squaw may become subject (under the U.S. Securities Act or otherwise) insofar as such losses, claims, damages, expenses or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon (i) the failure of the Subscriber or any of its agents, affiliates or persons acting on its behalf, to comply with the covenants and agreements contained in this Agreement with respect to the sale of Registrable Securities; or (ii) an untrue statement or alleged untrue statement of a material fact or omission to state a material fact in the Registration Statement in reliance upon and in conformity with written information furnished to Little Squaw by an instrument duly executed by or on behalf of such Subscriber and stated to be specifically for use in preparation of the Registration Statement;  provided, however, that the Subscriber shall not be liable in any such case for (i) any untrue statement or alleged untrue statement or omission in any prospectus or Registration Statement which statement has been corrected, in writing, by such Subscriber and delivered to Little Squaw before the sale from which such loss occurred; or (ii) an untrue statement or omission in any prospectus that is corrected in any subsequent prospectus, or supplement or amendment thereto, that was delivered to the Subscriber prior to the pertinent sale or sales by the Subscriber and delivered by the Subscriber to the individual or entity to which it made such sale(s) prior to such sale(s), and the Subscriber, severally and not jointly, will, as incurred, reimburse Little Squaw for any legal or other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim.  Notwithstanding the foregoing, the Subscriber shall not be liable or required to indemnify Little Squaw in the aggregate for any amount in excess of the net amount received by the Subscriber from the sale of the Registrable Securities, to which such loss, claim, damage, expense or liability (or action proceeding in respect thereof) relates.

c.

Promptly after receipt by any indemnified person of a notice of a claim or the beginning of any action in respect of which indemnity is to be sought against an indemnifying person pursuant to this Section 5, such indemnified person shall notify the indemnifying person in writing of such claim or of the commencement of such action and, subject to the provisions hereinafter stated, in case any such action shall be brought against an indemnified person, the indemnifying person shall be entitled to participate therein, and, to the extent that it shall wish, to assume the defense thereof.  After notice from the indemnifying person to such indemnified person of the indemnifying person’s election to assume the defense thereof, the indemnifying person shall not be liable to such indemnified person for any legal expenses subsequently incurred by such indemnified person in connection with the defense thereof; provided, however, that if there exists or shall exist a conflict of interest that would, in the opinion of counsel to the indemnified party, make it inappropriate under applicable laws or codes of professional responsibility for the same counsel to represent both the indemnified person and such indemnifying person or any affiliate or associate thereof, the indemnified person shall be entitled to retain its own counsel at the expense of such indemnifying person; provided, further, that the indemnifying person shall not be obligated to assume the expenses of more than one counsel to represent all indemnified persons.  In the event of such separate counsel, such counsel shall agree to reasonably cooperate.

d.

If the indemnification provided for in this Section 5 is unavailable or insufficient to hold harmless an indemnified party under subsection (a) or (b) above in respect of any losses, claims, damages, expenses or liabilities (or actions or proceedings in respect thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, expenses or liabilities (or actions or proceedings in respect thereof) in such proportion as is appropriate to reflect the relative fault of Little Squaw on the one hand and the Subscriber, or its agents, affiliates or persons acting on its behalf, on the other in connection with the statements or omissions which resulted in such losses, claims, damages, expenses or liabilities (or actions or proceedings in respect thereof), as well as any other relevant equitable considerations.  The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by Little Squaw on the one hand or the Subscriber, or its agents, affiliates or persons acting on its behalf, on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.  Little Squaw and the Subscriber agree that it would not be just and equitable if contribution pursuant to this subsection (d) were determined by any other method of allocation which does not take into account the equitable considerations referred to above in this subsection (d).  The amount paid or payable by an indemnified party as a result of the losses, claims, damages, expenses or liabilities (or actions or proceedings in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the U.S. Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  In any event, the Subscriber shall not  be liable or required to contribute to Little Squaw in the aggregate for any amount in excess of the net amount received by the Subscriber from the sale of its Registrable Securities.

1.

Governing Law:  This Subscription Agreement shall be binding upon the parties hereto, their heirs, executors, successors, and legal representatives.  The laws of the State of Washington shall govern the rights of the parties as to this Agreement.

2.

Indemnification: Subscriber acknowledges that it understands the meaning and legal consequences of the representations and warranties contained herein, and it hereby agrees to indemnify and hold harmless Little Squaw and any other person or entity relying upon such information thereof from and against any and all loss, damage or liability due to or arising out of a breach of any representation, warranty, or acknowledgement of Subscriber contained in this Agreement.

3.

Nonassignability:   Except as otherwise expressly provided herein, this Agreement  may not be assigned by Subscriber.

4.

Entire Agreement:  This instrument contains the entire agreement among the parties with respect to the acquisition of the shares and the other transactions contemplated hereby, and there are no representations, covenants or other agreements except as stated or referred to herein.

5.

Amendment: This Agreement may be amended or modified only by a writing signed by the party or parties to be charged with such amendment or modification.

6.

Binding On Successors: All of the terms, provisions and conditions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors, and legal representatives.

7.

Titles: The titles of the sections of this Agreement are for convenience of reference only and are not to be considered in construing this Agreement.

8.

Counterparts: This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall be deemed an original and all of which taken together shall constitute one and the same document, notwithstanding that all parties are not signatories to the same counterpart.

9.

Severability:  The unenforceability or invalidity of any provision of this Agreement shall not affect the enforceability or validity of the balance of this Agreement.

10.

Disclosure Required Under State Law: The offering and sale of the Securities is intended to be exempt from registration under the securities laws of certain states. Subscribers who reside or purchase the Securities may be required to make additional disclosures by the securities laws of various states and agrees to provide such additional disclosures as requested by Little Squaw upon written request.

11.

Notices: All notes or other communications hereunder (except payment) shall be in writing and shall be deemed to have been duly given if delivered personally or sent by registered or certified mail postage prepaid, or by Express Mail Service or similar courier, addressed as follows:

If to Subscriber:

At the address designated on the signature page of this Agreement.

If to the Company:

Little Squaw Gold Mining Company

3412 S. Lincoln Dr.

Spokane, WA 99203-1650

Fax:  509-624-2878

Attn: Ted R. Sharp

With Copy to:

Dorsey & Whitney LLP

Republic Plaza Building

Suite 4700, 370 Seventeenth Street

Denver, CO  80202-5647

Fax:  303-629-3450

Attention:  Kenneth G. Sam

17.

Time of the Essence:   Time shall be of the essence of this Agreement in all respects.

18.  

Facsimile and Counterpart Subscriptions:  Little Squaw shall be entitled to rely on delivery of a facsimile copy of this Agreement executed by the subscriber, and acceptance by Little Squaw of such executed Agreement shall be legally effective to create a valid and binding agreement between the Subscriber and Little Squaw in accordance with the terms hereof. In addition, this Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute one and the same document.

19.

Future Assurances:  Each of the parties hereto will from time to time execute and deliver all such further documents and instruments and do all acts and things as the other party may, either before or after the Closing, reasonably require to effectively carry out or better evidence or perfect the full intent and meaning of this Agreement.

Subscription Agreement - 3 of 25

SUBSCRIBER HEREBY DECLARES AND AFFIRMS THAT IT HAS READ THE WITHIN AND FOREGOING SUBSCRIPTION AGREEMENT, IS FAMILIAR WITH THE CONTENTS THEREOF AND AGREES TO ABIDE BY THE TERMS AND CONDITIONS THEREIN SET FORTH, AND KNOWS THE STATEMENTS THEREIN TO BE TRUE AND CORRECT.

******

IN WITNESS WHEREOF, Subscriber executed this Agreement this            day of ____________, 2006.

SUBSCRIBER:

 

By:*

Title:

Registration and Delivery Instructions:

(Address)

*

By the foregoing signature, I hereby certify to Little Squaw Gold Mining Company that I am duly empowered and authorized to provide the foregoing information.

This Subscription Agreement is hereby accepted by the Company this          day of                  , 2006.

Little Squaw Gold Mining Company

By:

  

Title:

Subscription Agreement - 4 of 25

Exhibit A

U.S. ACCREDITED INVESTOR CERTIFICATE

TO:

LITTLE SQUAW GOLD MINING COMPANY

The Subscriber understands and agrees that the Securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or applicable state securities laws, and the Securities are being offered and sold to the Subscriber in reliance upon Rule 506 of Regulation D under the U.S. Securities Act.

Capitalized terms used in this Exhibit A and defined in the Agreement to which the Exhibit A is attached have the meaning defined in the Agreement unless otherwise defined herein.

The undersigned (the “Subscriber”) represents, warrants and covenants (which representations, warranties and covenants shall survive the Closing) to Little Squaw (and acknowledges that Little Squaw is relying thereon) that:

(a)

it is purchasing the Securities for its own account or for the account of one or more persons for whom it is exercising sole investment discretion, (a “Beneficial Purchaser”), for investment purposes only and not with a view to resale or distribution and, in particular, neither it nor any Beneficial Purchaser for whose account it is purchasing the Securities has any intention to distribute either directly or indirectly any of the Securities in the United States or to U.S. Persons; provided, however, that this paragraph shall not restrict the Subscriber from selling  or otherwise disposing of any of the Securities pursuant to registration thereof pursuant to the U.S. Securities Act and any applicable state securities laws or under an exemption from such registration requirements;

(b)

it, and if applicable, each Beneficial Purchaser for whose account it is purchasing the Securities is a U.S. Accredited Investor that satisfies one or more of the categories of U.S. Accredited Investor indicated below (the Subscriber must initial “SUB” for the Subscriber, and “BP” for each Beneficial Purchaser, if any, on the appropriate line(s)):

          Category 1.

A bank, as defined in Section 3(a)(2) of the U.S. Securities Act, whether acting in its individual or fiduciary capacity; or

          Category 2.

A savings and loan association or other institution as defined in Section 3(a)(5)(A) of the U.S. Securities Act, whether acting in its individual or fiduciary capacity; or

          Category 3.

A broker or dealer registered pursuant to Section 15 of the United States Securities Exchange Act of 1934, as amended; or

          Category 4.

An insurance company as defined in Section 2(13) of the U.S. Securities Act; or

          Category 5.

An investment company registered under the United States Investment Company Act of 1940; or

          Category 6.

A business development company as defined in Section 2(a)(48) of the United States Investment Company Act of 1940; or

          Category 7.

A small business investment company licensed by the U.S. Small Business Administration under Section 301 (c) or (d) of the United States Small Business Investment Act of 1958; or

         Category 8.

A plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, with total assets in excess of U.S. $5,000,000; or

          Category 9.

An employee benefit plan within the meaning of the United States Employee Retirement Income Security Act of 1974 in which the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company or registered investment adviser, or an employee benefit plan with total assets in excess of U.S. $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons who are accredited investors; or

          Category 10.

A private business development company as defined in Section 202(a)(22) of the United States Investment Advisers Act of 1940; or

          Category 11.

An organization described in Section 501(c)(3) of the United States Internal Revenue Code, a corporation, a Massachusetts or similar business trust, or a partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of U.S. $5,000,000; or

          Category 12.

Any director or executive officer of the Issuer; or

          Category 13.

A natural person whose individual net worth, or joint net worth with that person’s spouse, at the date hereof exceeds U.S. $1,000,000; or

          Category 14.

A natural person who had an individual income in excess of U.S. $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of U.S. $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or

          Category 15.

A trust, with total assets in excess of U.S. $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under the U.S. Securities Act; or

          Category 16.

Any entity in which all of the equity owners meet the requirements of at least one of the above categories;

(c)

Certificates representing Warrants, and all certificates issued in exchange therefore or in substitution thereof, shall bear the following legend in substantially the following form:

“THIS WARRANT AND THE SECURITIES DELIVERABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.  THIS WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF A “U.S. PERSON” OR A PERSON IN THE UNITED STATES UNLESS THE WARRANT AND THE UNDERLYING SECURITIES HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE.  “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.”

The Subscriber acknowledges that the representations, warranties and covenants contained in this Certificate  are made by it with the intent that they may be relied upon by the Issuer in determining its eligibility or the eligibility of others on whose behalf it is contracting thereunder to purchase Securities.  It agrees that by accepting Securities it shall be representing and warranting that the representations and warranties above are true as at the Closing with the same force and effect as if they had been made by it at the Closing and that they shall survive the purchase by it of Securities and shall continue in full force and effect notwithstanding any subsequent disposition by it of such securities.

The Subscriber undertakes to notify the Issuer immediately of any change in any representation, warranty or other information relating to the Subscriber or any Beneficial Purchaser set forth herein which takes place prior to the Closing.

Subscription Agreement - 5 of 25

Dated this            day of                                , 2006.

			
	If a Corporation, Partnership or Other Entity:

Name of Entity

Type of Entity

Signature of Person Signing

Print or Type Name and Title of Person Signing

	 	If an Individual:

Signature

Print or Type Name

Subscription Agreement - 6 of 25

Schedule “I”

Wire Instructions 

The Purchase Price of units subscribed will be remitted either by a check payable to the order of “Little Squaw Gold Mining Company” sent to the beneficiary address below, or by wire transfer to Little Squaw using the following bank account and beneficiary:

Bank:

Washington Trust Bank

717 West Sprague

Spokane, WA  99201

Account Name:

Little Squaw Gold Private Placement

Account Number:

2308934069

ABA Number:

125100089

Beneficiary:

Little Squaw Gold Mining Company

3412 S. Lincoln Rd.

Spokane, WA  99203-1650

Message: 

Include the Subscriber and number of units 

Subscription Agreement - 7 of 34

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