Document:

Lake Victoria Mining Company, Inc.: Exhibit 10.3 -  Filed by newsfilecorp.com

EXECUTION VERSION 

OPTION AND

  JOINT VENTURE AGREEMENT 

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

  
    
      
        BETWEEN: 

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

        (the “Optionor”) 

      

    

  

AND: 

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

        (the “Optionee”) 

      

    

  

WHEREAS:

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

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

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

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

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

PART 1 

DEFINITIONS AND INTERPRETATION 

Definitions 

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

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

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

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

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

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

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

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

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

(i)        “Commencement of
Commercial Production” means: 

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

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

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

- 3 - 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(i)         the Earn-In
Date, and 

(ii)        the termination
hereof pursuant to Part 8; 

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

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

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

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

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

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

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

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

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

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

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

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Interpretation 

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

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

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

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

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

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

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

PART 2 

THE PROPERTY 

The Property 

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

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PART 3 

REPRESENTATIONS AND WARRANTIES 

Mutual Representations 

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

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

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

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

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

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

Optionor’s Representations 

3.2                    
The Optionor represents and warrants to the Optionee that: 

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

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

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

- 8 - 

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

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

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

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

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

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

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

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

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

Exclusive Benefit of the Optionee 

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

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Optionee’s Representations 

3.4                    
The Optionee represents and warrants to the Optionor that: 

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

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

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

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

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

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

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

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

Exclusive Benefit of the Optionor 

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

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Survival of Representations and Warranties 

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

Restrictions on Securities 

3.7                    
The Optionor acknowledges and agrees that: 

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

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

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

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

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

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

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

- 11 - 

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

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

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

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

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

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

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

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

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

Listing on a Stock Exchange 

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

U.S. Representation Letters 

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

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

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PART 4 

DUE DILIGENCE 

Due Diligence Inquiry

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

PART 5 

GRANT OF OPTION 

Grant of Option 1 

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

(a)        making a cash
payment to the Optionor in the amount of $32,015.20 on the Effective Date
representing all annual and quarterly license fees paid by the Optionor in
connection with the Licenses prior to the Effective Date; 

(b)        making cash payments
of an aggregate of $180,000 (the “Option Cash Payments”) to the Optionor
over a two-year period, commencing on the Closing Date, to be funded as follows:

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

(ii)        not less than
$40,000 on or before the Effective Date (for accumulated cash payments of
$60,000); 

(iii)        not less than
$60,000 on or before the first anniversary date from the Effective Date (for
accumulated cash payments of $120,000); and 

(iv)        not less than
$60,000 on or before the second anniversary date from the Effective Date (for
accumulated cash payments of $180,000); 

- 13 - 

(c)        allotting and
issuing to the Optionor as fully paid and non-assessable, a total of 900,000
Shares (the “Option Shares”) over a two-year period, commencing on the
Effective Date, to be allotted and issued as follows: 

(i)         not less than
500,000 Shares on the Effective Date; 

(ii)        not less than
200,000 Shares on or before the first anniversary date from the Effective Date
(for accumulated allotments of 700,000 Shares); and 

(iii)      not less than 200,000
Shares on or before the second anniversary date from the Effective Date (for
accumulated allotments of 900,000 Shares); 

(d)        funding aggregate
Work Costs on the Property of $1,850,000 (the “Option Work Costs”)
over a three-year period, commencing on the Effective Date, to be funded as
follows: 

(i)     
   not less than $250,000 on or before the date that is 150 calendar
days from the Effective Date; 

(ii)   
    not less than an additional $600,000 on or before the
first anniversary date from the Effective Date (for accumulated Work Costs of
$850,000); 

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

(iv)      not less than an
additional $500,000 on or before the third anniversary date from the Effective
Date (for accumulated Work Costs of $1,850,000); and 

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

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

Preliminary Economic Assessment Included in Work Costs

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

Exploration Services Agreement 

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

- 14 - 

Determination of Work Costs 

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

Excess Work Costs and Deficiencies 

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

Make-up Right 

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

Exercise of Option 

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

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

- 15 - 

PART 6 

ENVIRONMENTAL INDEMNIFICATION 

Optionor Indemnity 

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

Optionee Indemnity 

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

Limitation on Indemnities 

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

Survival 

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

PART 7 

RIGHTS AND OBLIGATIONS DURING OPTION PERIOD 

Work Programs During Option Phase 

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

Retention of Optionor to Perform Work Programs 

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

- 16 - 

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

Overhead 

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

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

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

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

Additional Rights 

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

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

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

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

- 17 - 

Optionor’s Access 

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

Optionee Obligations 

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

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

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

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

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

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

Reporting Obligations 

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

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

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

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

- 18 - 

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

Third Party Property Information 

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

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

Limitation on Property Information 

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

Restriction on Employing Optionor’s Employees 

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

PART 8 

TERMINATION OF OPTION AND AGREEMENT 

Termination Prior to Earn-In of 70% Interest 

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

- 19 - 

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

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

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

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

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

Events on Termination 

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

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

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

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

- 20 - 

PART 9 

FORMATION AND OPERATION OF JOINT VENTURE 

Formation of Joint Venture 

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

Participating Interests 

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

	Optionee 	70% 
	Optionor 	30% 

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

Management Committee 

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

Operator 

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

- 21 - 

Overhead Costs 

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

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

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

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

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

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

Contracts with Operator 

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

Accounting Procedures 

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

- 22 - 

Programs and Budgets 

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

Dilution 

9.9                    
The dilution formula will be as follows:

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

where: 

A = deemed expenditures of party Y 

B = actual expenditures of party Y 

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

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

	 	Participating interests of the parties: 	Their deemed expenditures upon formation of the
      Joint Venture will be: 
	 	 	 	 
	 	Optionee              
      70% 	$1,850,000 	 
	 	 	 	 
	 	Optionor              
      30% 	$792,857 	 

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

- 23 - 

Excess Work Costs 

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

Royalty Interest 

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

Production Decision 

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

Reclamation Fund 

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

Default in Funding 

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

- 24 - 

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

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

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

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

Taking in Kind 

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

Failure to Enter into Joint Venture Agreement 

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

PART 10 

AREA OF INTEREST 

Area of Interest 

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

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

- 25 - 

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

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

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

PART 11 

CONFIDENTIALITY 

Confidentiality 

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

News Releases and Other Documents 

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

Return of Confidential Information 

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

- 26 - 

Survival of Confidentiality Obligations 

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

PART 12 

RESTRICTIONS ON TRANSFERS AND ENCUMBRANCES 

Restrictions on Transfers and Encumbrances 

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

Transfers to Affiliates 

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

Right of First Refusal 

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

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

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

- 27 - 

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

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

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

Encumbrances 

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

PART 13 

OPTION AND EXCHANGE ACCEPTANCE 

Option 

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

Exchange Acceptance 

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

- 28 - 

PART 14 

FORCE MAJEURE 

Force Majeure 

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

PART 15 

ARBITRATION 

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

- 29 - 

PART 16 

GENERAL 

Relationship 

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

Other Activities 

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

Notices 

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

If to the Optionor: 

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

Facsimile:        866-910-6114

Attention:       David Kalenuik

email:              
dkalenuik@gmail.com 

If to the Optionee: 

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

Facsimile:       604-732-0284

Attention:      Peter Hughes

email:              
petehughes@me.com 

- 30 - 

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

Waiver of Right of Partition 

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

Interpretation 

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

Further Assurances 

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

Amendments 

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

Severance 

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

Time 

16.9                   Time
will be of the essence of this Agreement. 

Governing Law 

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

- 31 - 

Entire Agreement 

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

Enurement 

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

Counterparts 

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

Rule Against Perpetuities 

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

Resale Restrictions 

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

Change in Capitalization 

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

- 32 - 

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

LAKE VICTORIA MINING COMPANY, INC. 

Per:      /s/ David Kalenuik

              
  Authorized
  Signatory 

              
  Name: David Kalenuik

              
  Title: President

OTTERBURN VENTURES INC. 

Per:       /s/ Peter Hughes 

              
  Authorized
  Signatory 

              
  Name: Peter Hughes

              
  Title: CEO

- 33 - 

SCHEDULE “A” 

THE PROPERTY 

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

	Prospecting License Number 	Recorded Owner -
      Percentage 
	PL 4882/2007 	100 % 
Optionor 
	PL 2677/2004 	100 % 
Optionor 
	PL 3340/2005 	100 % 
Optionor 
	PL 3341/2005 	100 % 
Optionor 
	PL 3005/2005 	100 % 
Optionor 
	PL 4225/2007 	100 % 
Optionor 
	PL 4873/2007 	100 % 
Optionor 
	PL 3355/2005 	100 % 
Optionor 
	PL 4833/2007 	100 % 
Optionor
  

SCHEDULE “B” 

NET SMELTER ROYALTY 

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

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

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

	 	 	 	 
	3. 	
      The following words will have the following
    meanings:

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

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

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

	 	 	 	 
			(iii) 	
      any proceeds of insurance on Product; and

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

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

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

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

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

- 2 - 

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

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

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

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

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

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

- 3 - 

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

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

- 4 - 

SCHEDULE “C” 

LVMC REPRESENTATION LETTER 

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

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

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

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

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

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

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

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

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

- 5 - 

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

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

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

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

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

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

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

- 6 - 

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

(i)      
 the sale is to Pubco; 

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

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

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

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

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

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

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

- 7 - 

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

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

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

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

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

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

- 8 - 

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

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

Exhibit “1” to Schedule C 

U.S. Representation Letter of Optionor 

FORM OF DECLARATION FOR REMOVAL OF U.S. LEGEND 

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

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

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

	  	 	(please print) 

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

- 2 - 

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

____________________________________________________
Name of
Firm 

By:     
_______________________________________________
    
       Authorized officer 

- 3 - 

SCHEDULE “D” 

OPTIONEE REPRESENTATION LETTER 

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

Optionee Representation Letter 

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

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

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

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

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

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

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

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

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

- 4 - 

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

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

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

OTTERBURN VENTURES INC 

Per: 

_______________________
Authorized
Signatory 

Appendix “I” to Schedule D 

Extract from Nevada Revised Statutes, Chapter
90 

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

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

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

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

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

          (d)      One
of the following conditions is satisfied: 

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

          (2)      Immediately
before and immediately after the transaction, the issuer reasonably believes
that the securities of the issuer are held by 50 or fewer beneficial owners,
other than those designated in subsection 10, and the transaction is part of an
aggregate offering that does not exceed $500,000 during any 12 consecutive
months.Lake Victoria Mining Company, Inc.: Exhibit 10.4 -  Filed by newsfilecorp.com

EXECUTION VERSION 

OPTION AND

  JOINT VENTURE AGREEMENT 

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

BETWEEN: 

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

        (herein “LVMC”) 

        (of the first part) 

      

    

  

AND: 

  
    
      
        AHMED ABUBAKAR MAGOMA, of P.O. Box 80079 Dar
          es Saalam United Republic of Tanzania 

        (herein “Magoma”) 

        (of the second part) 

        (the parties of the first and second parts collectively
          referred to as the “Optionor”) 

      

    

  

AND: 

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

        (the “Optionee”) 

        (of the third part) 

      

    

  

WHEREAS:

(A)                    
Magoma is the registered and beneficial owner of certain primary mining licenses
(the “Licenses”) located in the Singida region of the United Republic of
Tanzania, the specific description of such Licenses is attached hereto as Schedule “A”
and is illustrated in the map attached hereto as Schedule “B” (collectively, the
“Property”); 

- 2 -

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

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

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

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

PART 1

DEFINITIONS AND INTERPRETATION

Definitions

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

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

(b)        “2% Net
Sale Value” means two (2%) percent of the total net proceeds, in cash or
Shares, from the sale of the defined resources asset, to any arm’s length
purchaser; 

(c)      
 “2% Net Smelter Production” means two (2%) percent of the
amount of gross production less any operating and production costs up to the
date any payment is calculated; 

(d)      
 “51% Interest” means a fifty-one percent (51%) undivided right,
title and interest in and to the Property and in all rights of the Optionor with
respect thereto; 

(e)      
 “70% Interest” means a seventy percent (70%) undivided right, title
and interest in and to the Property (inclusive of the 51% Interest) and in all
rights of the Optionor with respect thereto; 

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

- 3 - 

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

(h)      
 “AOI License” has the meaning ascribed therein in §11.1; 

(i)      
   “Arbitration Panel” has the meaning ascribed thereto in §16.1; 

(j)
        
 “Area of Interest” has the meaning ascribed thereto in §11.1; 

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

(l)      
 “Commencement of Commercial Production” means: 

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

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

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

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

(n)      
 “Earn-In Date” means the date which is the earlier of the date
which the Optionee has (i) vested the 51% Interest but has elected by notice to
the Optionor not to proceed to earn the 70% Interest or (ii) earned the 70%
Interest in accordance with §5.5; 

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

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

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

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

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

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

- 4 - 

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

(v)        “Force
  Majeure Event” has the meaning ascribed thereto in §15.1; 

(w)        “Holder” has the meaning ascribed thereto in §13.4; 

(x)        “Joint
Venture” means the joint venture to be formed between the Optionor and the
Optionee in respect of the Property in the event of and upon exercise of the
Option and which is more particularly described in §10.1; 

(y)        “Joint Venture
Agreement” has the meaning ascribed thereto in §10.1; 

(z)        “Lake Victoria
Resources (T) Ltd.” means a Tanzanian corporation wholly-owned by LVMC; 

(aa)     
“License Fees” has the meaning ascribed thereto in §8.8; 

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

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

(dd)     
“Management Committee” has the meaning ascribed thereto in §10.4; 

(ee)    
 “Magoma” means Ahmed Abubakar Magoma; 

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

(gg)     
“NI 43-101” means National Instrument 43-101 – Standards of Disclosure
for Mineral Projects; 

(hh)    
 “Offer” has the meaning ascribed thereto in §13.3(a); 

(ii)       “Offered Interest”
has the meaning ascribed thereto in §13.3(a); 

(jj)       “Operator” has the
meaning ascribed thereto in §10.5; 

(kk)     
“Option” means the exclusive option granted by the Optionor to the
Optionee to acquire either the 51% Interest or the 70% Interest, and thereupon
form the Joint Venture, all on the terms and conditions set forth herein; 

(ll)       “Option 1 Cash
Payments” has the meaning ascribed thereto in §5.1(b); 

(mm)    “Option 1
  Shares” has the meaning ascribed thereto in §5.1(c); 

(nn)      “Option 2
    Shares” has the meaning ascribed thereto in §5.5(a); 

- 5 - 

(oo)     
“Option 1 Work Costs” has the meaning ascribed thereto in §5.1(d); 

(pp)     
“Option 2 Work Costs” has the meaning ascribed thereto in §5.5(c); 

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

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

(ss)    
 “Optionor” means collectively LVMC and Magoma; 

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

(i)         the Earn-In
Date, and 

(ii)        the termination
hereof pursuant to Part 9; 

(uu)       “Permitted
Encumbrances” means the PML Option Payments; 

(vv)     
 “PML Option Agreements” means the underlying option agreements
between Magoma and the registered owners listed in Schedule “A”; 

(ww)    
 “PML Option Payments” means the payments required under the PML
Option Agreements as more particularly described in Schedule “C”; 

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

(yy)     
 “Pre-Feasibility Report” means a comprehensive study, compliant
with NI 43-101, of the viability of the Property once it has advanced to a stage
where the mining method, in the case of underground mining, or the pit
configuration, in the case of an open pit, has been established and an effective
method of mineral processing has been determined, and includes a financial
analysis based on reasonable assumptions of technical, engineering, legal,
operating, economic, social, and environmental factors and the evaluation of
other relevant factors which are sufficient for a qualified person, acting
reasonably, to determine if all or part of the mineral resource may be
classified as a mineral reserve, as that term is defined under NI 43-101; 

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

(aaa)    
“Purchasing Party” has the meaning ascribed thereto in §13.3(b); 

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

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

- 6 -

(ddd)   
 “Seller” has the meaning ascribed thereto in §13.3(a); 

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

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

(ggg)     “Third
Party Property Information” has the meaning ascribed thereto in §8.10; and

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

(iii)        “Work
Costs” means, subject to §5.3 and §5.6 and the exclusion of the License Fees
and PML Option Payments, all expenditures and costs incurred by the Optionee
relating directly or indirectly to the Property including all expenditures and
costs incurred: (a) in doing geophysical, geochemical, land, airborne,
environmental and geological examinations, assessments, assays, audits and
surveys; (b) in linecutting, mapping, trenching and staking; (c) in searching
for, digging, trucking, sampling, working, developing, mining and extracting
ores, minerals and metals; (d) in conducting diamond and other drilling; (e) in
obtaining, providing, installing and erecting mining, milling and other
treatment plant, ancillary facilities, buildings, machinery, tools, appliances
and equipment; (f) in constructing access roads and other facilities on or for
the benefit of the Property or any part thereof (g) in transporting personnel,
supplies, mining, milling and other treatment plant, ancillary facilities,
buildings, machinery, tools, appliances and equipment in, to or from the
Property or any part thereof (h) in paying reasonable wages and salaries
(including “fringe benefits”, but excluding home office costs) of personnel
directly engaged in performing work on or with respect to the Property; (i) in
paying assessments and contributions under applicable employment legislation
relating to workers’ compensation and unemployment insurance and other
applicable legislation relating to such personnel; (j) in supplying food,
lodging and other reasonable needs for such personnel; (k) in obtaining and
maintaining any insurance; (1) in obtaining legal, accounting, consulting and
other contract and professional services or facilities relating to work
performed or to be performed hereunder, all at fair market value competitive
rates; (m) in paying any taxes, fees, charges, payments and rentals (including
payments made in lieu of assessment work) or otherwise incurred to transfer the
Property or. any part thereof or interest therein pursuant to this Agreement and
to keep the Property or any part thereof in good standing; (n) in paying any
non-refundable harmonized sales tax and social services tax and all other taxes
charged on expenditures made or incurred by the Optionee relating directly or
indirectly to the Property; (o) in acquiring access and surface rights to the
Property; (p) in carrying out any negotiations and preparing, settling and
executing any Agreements and other documents relating to environmental or
indigenous peoples’ claims, requirements or matters; (q) in obtaining all
necessary or appropriate approvals, permits, consents and permissions relating
to the carrying out of work, including environmental permits, approvals and
consents; (r) in carrying out reclamation and remediation; (s) in improving,
protecting and perfecting title to the Property or any part thereof; (t) in carrying out
mineral, soil, water, air and other testing; (u) in preparing engineering,
geological, financing, marketing and environmental studies and reports and test
work related thereto; (v) in preparing one or more Preliminary Economic
Assessments including any work and reports preliminary or supplementary thereto;
and (w) a charge for management supervision and administrative services of the
Optionee as provided in §8.5 and §10.6 of this Agreement. 

- 7 -

Interpretation

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

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

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

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

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

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

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

PART 2

THE PROPERTY

The Property

2.1                    
The Property is comprised of the Licenses more particularly described in
Schedule “A” hereto and shown on the map attached as Schedule “B” hereto and
will include any additional Licenses that become part of the Property pursuant
to Part 11. 

- 8 -

PART 3 

REPRESENTATIONS AND WARRANTIES

Mutual Representations 

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

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

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

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

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

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

Optionor’s Representations

3.2                    
The Optionor represents and warrants to the Optionee that: 

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

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

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

- 9 -

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

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

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

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

3.3                    
LVMC represents and warrants to the Optionee that: 

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

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

3.4                    
Magoma represents and warrants to the Optionee that: 

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

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

(c)        upon exercise of the
Option by the Optionee, he will have the legal right and authority to transfer
title to an undivided fifty-one percent (51%) legal and beneficial interest or
an undivided seventy percent (70%) legal and beneficial interest in the Property
to the Optionee, as the case may be. 

- 10 -

Exclusive Benefit of the Optionee

3.5                    
The representations and warranties contained in §3.2, §3.3 and §3.4
are provided for the exclusive benefit of the Optionee and a
misrepresentation or breach of warranty may be waived by the Optionee in whole
or in part at any time without prejudice to its rights in respect of any other
misrepresentation or breach of the same or any other representation or warranty;
and the representations and warranties contained in §3.2, §3.3 and
§3.4 will survive the execution hereof and continue through the Option
Period. 

Optionee’s Representations

3.6                    
The Optionee represents and warrants to the Optionor that: 

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

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

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

(d)      
 the Shares are, and will be at all times during the Option Period, part of
a class of shares of the Optionee that is currently listed and posted for
trading on the Exchange and, at the time of the delivery of the certificates
representing the Shares, as applicable, to the Optionor, will have been approved
and reserved for listing on the Exchange, subject only to fulfilment of the
requirements of the Exchange and §3.9(c); 

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

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

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

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

- 11 -

Exclusive Benefit of the Optionor

3.7                    
The representations and warranties contained in §3.6 are provided for the
exclusive benefit of the Optionor and a misrepresentation or breach of warranty
may be waived by the Optionor in whole or in part at any time without prejudice
to its rights in respect of any other misrepresentation or breach of the same or
any other representation or warranty; and the representations and warranties
contained in §3.6 will survive the execution hereof and continue through the
Option Period. 

Survival of Representations and Warranties

3.8                    
The representations and warranties of the parties set out herein are conditions
upon which the parties have relied in entering into this Agreement and will
survive the termination of this Agreement and the acquisition of any interest in
the Property by the Optionee hereunder, and each party will indemnify and save
the other harmless from all loss, damage, costs and expenses which may be
suffered or incurred by the other as a result of or in connection with any
breach or inaccuracy of any such representation and warranty made by such party.

Restrictions on Securities

3.9                    
LVMC acknowledges and agrees that: 

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

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

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

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

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

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

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

- 12 -

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

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

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

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

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

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

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

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

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

Listing on a Stock Exchange

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

U.S. Representation Letters

3.11                  
LVMC shall complete and execute the LVMC Representation Letter in the form
attached as Schedule “E”, and, upon execution and delivery by LVMC, the LVMC
Representation Letter shall be incorporated into and form part of this
Agreement. 

3.12                  
The Optionee shall complete and execute the Optionee’s Representation Letter in
the form attached as Schedule “F”. 

- 13 - 

PART 4 

DUE DILIGENCE 

Due Diligence Inquiry

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

PART 5 

GRANT OF OPTION 

Grant of Option 1 

5.1                    
The Optionor hereby grants to the Optionee the sole and exclusive right and
option to earn the 51% Interest free and clear of all Encumbrances, except the
Permitted Encumbrances, by: 

(a)      
 making a cash payment to LVMC in the amount of $770.00 on the Effective
Date representing all annual and quarterly license fees paid by the Optionor in
connection with the Licenses prior to the Effective Date; 

(b)        making cash payments
of an aggregate of $400,000 (the “Option 1 Cash Payments”) to LVMC over a
two-year period, commencing on the Closing Date, to be funded as follows: 

(i)         not less than
$25,000 on the Closing Date (the “Deposit”); 

(ii)        not less than
$275,000 on the Effective Date (for accumulated cash payments of $300,000); 

(iii)       not less than $50,000 on
or before the first anniversary date from the Effective Date (for accumulated
cash payments of $350,000); and 

- 14 - 

(iv)     
 not less than $50,000 on or before the second anniversary date from the
Effective Date (for accumulated cash payments of $400,000); 

(c)        allotting and
issuing to LVMC as fully paid and non-assessable, a total of 2,200,000 Shares
(the “Option 1 Shares”) over a two-year period, commencing on the
Effective Date, to be allotted and issued as follows: 

(i)         not less than
1,100,000 Shares on the Effective Date; 

(ii)        not less than
550,000 Shares on or before the first anniversary date from the Effective Date
(for accumulated allotments of 1,650,000 Shares); and 

(iii)     
 not less than 550,000 Shares on or before the second anniversary date from
the Effective Date (for accumulated allotments of 2,200,000 Shares); 

(d)        funding aggregate
Work Costs on the Property of $4,500,000 (the “Option 1 Work
Costs”) over a three-year period, commencing on the Effective Date, to be
funded as follows: 

(i)         not less than
$750,000 on or before the date that is 150 calendar days from the Effective
Date; 

(ii)        not less than an
additional $750,000 on or before the first anniversary date from the Effective
Date (for accumulated Work Costs of $1,500,000); 

(iii)       not less than an
additional $1,500,000 on or before the second anniversary date from the
Effective Date (for accumulated Work Costs of $3,000,000); and 

(iv)       not less than an
additional $1,500,000 on or before the third anniversary date from the Effective
Date (for accumulated Work Costs of $4,500,000); and 

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

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

Preliminary Economic Assessment Included in Work Costs

5.3                    
All costs incurred in connection with the completion of the Preliminary Economic
Assessment by the Optionee, will be considered part of the Option 1 Work Costs.

Exploration Services Agreement 

5.4                    
The Optionee will enter into an exploration services agreement (the
“Exploration Services Agreement”) with Lake Victoria Resources (T) Ltd.
concurrently with the execution of this Agreement pursuant to which the Optionee
will, among other things, reimburse Lake Victoria Resources (T) Ltd. for all expenses incurred in
connection with drilling programs on the Property since March 1, 2011, which
expenses shall be deducted from the Option 1 Work Costs to be incurred. 

- 15 -

Grant of Option 2

5.5                    
The Optionor hereby grants to the Optionee the sole and exclusive right and
option to earn the 70% Interest free and clear of all Encumbrances, except the
Permitted Encumbrances, by: 

(a)        allotting and
issuing to LVMC, as fully paid and non-assessable, a total of 1,000,000 Shares
(the “Option 2 Shares”) on or before the sixth anniversary date from the
Effective Date; 

(b)        funding and
completing the Pre-Feasibility Report on or before the sixth anniversary date
from the Effective Date; 

(c)      
 funding aggregate Work Costs on the Property of $750,000 (the “Option
2 Work Costs”) over a three-year period, commencing on the Effective
Date, to be funded as follows: 

(i)        not less than
$250,000 on or before the fourth anniversary date from the Effective Date; 

(ii)       not less than $250,000 on
or before the fifth anniversary date from the Effective Date (for accumulated
Work Costs of $500,000); and 

(iii)     
not less than $250,000 on or before the sixth anniversary date from the
Effective Date (for accumulated Work Costs of $750,000). 

Pre-Feasibility Report Not Included in Work Costs 

5.6                    
All costs incurred in connection with the completion of the Pre-Feasibility
Report by the Optionee, will not be considered part of the Option 2 Work Costs.

Determination of Work Costs

5.7                    
Work Costs will be deemed to have been incurred by the Optionee when the
Optionee has expended funds or has received goods or services from third parties
for which the Optionee has an obligation to make payment, whether or not payment
has been made. Where Work Costs are charged to the Optionee by an Affiliate of
the Optionee for services rendered by such Affiliate, such Work Costs will not
exceed the fair market value of the services rendered. A certificate of an
officer of the Optionee setting forth the Work Costs incurred by the Optionee in
reasonable detail will be prima facie evidence of the same. 

- 16 -

Excess Work Costs and Deficiencies

5.8                    
Work Costs incurred by the Optionee exceeding the amount of Work Costs required
to be incurred within any period will be carried forward to the succeeding
period and qualify as Work Costs. If the Work Costs incurred are less than the
amount of the Work Costs required to be incurred in any period, the Optionee may
at its option pay the deficiency to LVMC in cash within sixty (60) days after
the end of such period in order to maintain the Option. Any such payment of cash
in lieu will be deemed to be Work Costs incurred on the Property on or before
the relevant date for purposes of this Part 5. 

Make-up Right

5.9                    
If the Optionee reasonably believes that it has incurred Work Costs required to
be incurred by the Optionee in any period in order to maintain the Option, but
it is subsequently determined upon examination or audit by either party that
such Work Costs were not incurred within such period, the Optionee will not lose
any of its rights hereunder and the Option will not terminate, provided that the
Optionee pays to LVMC such deficiency in Work Costs within thirty (30) days
following such determination (if determined by the Optionee) or within thirty
(30) days following notice to the Optionee of such deficiency (if determined by
the Optionor), and the payment of such deficiency in Work Costs will be deemed
to be Work Costs incurred by the Optionee for purposes of this Agreement. 

Exercise of Option

5.10                  
The Optionee may in its sole direction at any time accelerate the payment of the
consideration (cash and Shares) and the Work Costs described in §5.1(d) and
§5.5(c) . 

5.11                  
If the Optionee incurs the Option 1 Work Costs, pays LVMC the Option 1 Cash
Payments and the Option 1 Shares, and completes the Preliminary Economic
Assessment as described in §5.1, it will, without further act or payment, have
and be deemed for all purposes to have exercised the 51% Interest and to have
earned the 51% Interest free and clear of all Encumbrances. 

5.12                  
Upon the Optionee having earned the 51% Interest, if the Optionee incurs the
Option 2 Work Costs, pays LVMC the Option 2 Shares and completes the
Pre-Feasibility Report as described in §5.5, it will, without any further act or
payment, have and be deemed for all purposes to have exercised the 70% Interest
and to have earned the 70% Interest free and clear of all Encumbrances. 

PART 6

ASSUMPTION OF PML OPTION PAYMENTS

Optionee to pay PML Option Payments

6.1                    
The Optionee agrees that at all times, including after the formation of the
Joint Venture that the Optionee is solely responsible to pay all fees, costs and
expenses associated with the PML Option Payments required under the PML Option
Agreements, more particularly described in Schedule “C” hereto, including the
payment of the 2% Net Smelter Production or the 2% Net Sale Value in lieu of
payments where provided in the PML Option Agreements.

- 17 -

6.2                    
The Optionee will have the right, in its sole discretion, to substitute in place
of the final payment for each PML Option Agreement, the 2% Net Smelter
Production or the 2% Net Sale Value, as provided in §6.1 hereto, and the
Optionor hereby agrees to promptly, upon the Optionee’s request, do all such
things, and execute or cause to be executed all documents, deeds, conveyances
and other instruments of further assurance, which may be reasonably necessary or
advisable to carry out fully the intent of this §6.2. 

PART 7

ENVIRONMENTAL INDEMNIFICATION

Optionor Indemnity

7.1                    
Subject to §7.3, LVMC agrees to indemnify and save the Optionee harmless from
and against any Environmental Liability suffered or incurred by the Optionee
arising directly or indirectly from any operations or activities conducted in or
on the Property, whether by the Optionor or others, prior to the Execution Date.

Optionee Indemnity

7.2                    
Subject to §7.3, the Optionee agrees to indemnify and save the Optionor harmless
from and against any Environmental Liability suffered or incurred by the
Optionor arising directly or indirectly from any operations or activities
conducted on the Property, whether by the Optionee, its employees or agents,
after the Execution Date. 

Limitation on Indemnities

7.3                    
If a Joint Venture is formed pursuant to §10.1, any Environmental Liability
caused by a party prior to the formation of the Joint Venture will continue to
be a liability of that party. If the Environmental Liability arises from
operations conducted on the Property after the date the Joint Venture is formed,
the Environmental Liability will be borne by the parties in accordance with
their participating interests at the time the Environmental Liability arises.

Survival

7.4                    
The provisions of this Part 7 will survive any termination of this
Agreement.

- 18 -

PART 8

RIGHTS AND OBLIGATIONS DURING OPTION PERIOD

Work Programs During Option Phase

8.1                    
The Optionee will have the exclusive right to manage and operate all work
programs carried out on the Property, subject to §8.3, for so long as the Option
remains outstanding, and all work programs will be in the sole discretion of the
Optionee. 

Nomination of Board Member

8.2                    
LVMC will have the right to appoint one member to the board of directors
of the Optionee, subject to the approval of the Optionee, which such approval
will not be unreasonably withheld or delayed. 

Retention of Optionor to Perform Work Programs 

8.3                    
The Optionee hereby agrees to retain Lake Victoria Resources (T) Ltd. to perform
all recommended exploration work on the Property for the first twelve (12)
months following the Effective Date in accordance with the Exploration Services
Agreement which will include a twelve (12%) percent management fee for all
recommended exploration work on the Property that is performed by Lake Victoria
Resources (T) Ltd. and its employees. If Lake Victoria Resources (T) Ltd.
retains any third party to perform such recommended exploration work, Lake
Victoria Resources (T) Ltd. will not receive any management fee whatsoever, but
will be reimbursed by the Optionor for any reasonable expenses incurred by Lake
Victoria Resources (T) Ltd. in connection with retaining such third party. 

8.4                    
The Optionee will have the right, in its sole discretion, to retain LVMC to
perform recommended exploration work on the Property following the first
anniversary date following the Effective Date. 

Overhead

8.5                    
The Optionee will be entitled to include in Work Costs for so long as the Option
remains outstanding an overhead charge (“Overhead Charge”) for management
supervision and administrative services of the Optionee equal to: 

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

(b)        seven and one-half
percent (7.5%) of all other Work Costs incurred by the Optionee in
respect of the Property; excluding in each case the amount of the overhead
charge fixed under this §8.5. 

The Optionor shall review the Overhead Charge after completion
of the first year of this Agreement when the Overhead Charges are fully reported
in the Optionee’s quarterly financial reports. In the event the Optionor disagrees with the amount of
the Overhead Charge the Optionor and Optionee may change the Overhead Charge to
a percentage mutually agreed to. In the event of a disagreement Part 16 shall
apply. 

- 19 -

Additional Rights

8.6                    
For so long as the Option is outstanding, the Optionee and its employees,
representatives, agents and independent contractors will have the right: 

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

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

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

Optionor’s Access

8.7                    
The Optionor will have access to the Property, concurrently with the Optionee,
at all reasonable times, at the Optionor’s own risk and expense, for the purpose
of inspecting the work being done by the Optionee and to perform its obligations
under the Exploration Services Agreement. 

Optionee Obligations

8.8                    
For so long as the Option is outstanding, the Optionee will: 

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

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

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

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

- 20 -

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

Reporting Obligations

8.9                    
Subject to §8.10, for so long as the Option is outstanding, the Optionee will:

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

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

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

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

Third Party Property Information

8.10                  
The Optionor acknowledges and agrees that neither the Optionee nor any of its
Affiliates are providing any representation or warranty in respect of the
accuracy, completeness or validity of the information relating to the Property
obtained by the Optionee from laboratories and other independent contractors and
provided to the Optionor pursuant to §8.9 or 9.3(a) or otherwise hereunder
(“Third Party Property Information”) and that no such representation or
warranty will be implied. 

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

Limitation on Property Information

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

- 21 -

Restriction on Employing Optionor’s Employees 

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

PART 9

TERMINATION OF OPTION AND AGREEMENT

Termination Prior to Earn-In of 51% Interest 

9.1                    
The Optionee will have the right at any time prior to earning the 51% Interest
to give notice to the Optionor terminating the Option and this Agreement. If the
Optionee gives such notice of termination or, subject to §5.8, §5.9 and §15.1,
if the Optionee fails to incur the Work Costs and consideration referred to in
§5.1(d) on or before the dates referred to therein, then the Option and this
Agreement will terminate and the Optionee will, subject to the provisions of
Part 3, Part 7 and Part 12, and subject to §9.3 have no further rights or
interest in the Property and no further obligations or liabilities to the
Optionor.

9.2                    
If at any time prior to earning the 51% Interest the Optionee is in default of
any material provision in this Agreement, other than the provision of §8.12, for
which no notice of default need be given, the Optionor may terminate this
Agreement, but only if: 

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

(b)        with respect to the
provisions of §5.1, §5.5 and §6.2, the Optionee has not, within ten (10)
business days following delivery of such notice of default, cured such default
or commenced proceedings to cure such default by appropriate payment or
performance, the Optionee hereby agreeing that should it so commence to cure any
default it will prosecute the same to completion without undue delay; 

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

If the Optionee has failed to satisfy its obligations pursuant
to §9.2(b), the Optionor may thereafter terminate this Agreement by giving
notice thereof to the Optionee and this Agreement will terminate and the Optionee will, subject to the provisions
of Part 3, Part 7 and Part 12, and subject to §9.3, have no further rights or
interest in the Property and no further obligations or liabilities to the
Optionor. 

- 22 -

Events on Termination

9.3          
          If this Agreement is
terminated by the Optionee or the Optionor pursuant to §9.1 or §9.2, the
Optionee will: 

(a)        deliver to the
Optionor, within sixty (60) days of termination, a final report on all work
carried out by the Optionee on the Property since the date of the last annual
report delivered under §8.9(c), together with all drill cores and unprocessed
assay samples and copies of all maps, drill logs, assay results and other
factual technical data compiled by the Optionee with respect to the Property and
not previously delivered to the Optionor; 

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

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

PART 10

FORMATION AND OPERATION OF JOINT VENTURE

Formation of Joint Venture

10.1                 
Effective as of the Earn-In Date, the Optionee and the Optionor will participate
in a joint venture (the “Joint Venture”) by entering into a formal joint
venture agreement (the “Joint Venture Agreement”) for the purpose of
further exploration and development work on the Property and if warranted, the
operation of one or more mines on the Property. 

Participating Interests

10.2                 
If the Optionee exercised the 70% Interest in accordance with §5.5 the
participating interests of the parties at the time the Joint Venture is formed
will be: 

	Optionee 	70% 
	LVMC 	30% 

10.3                 
If the Optionee has not exercised the 70% Interest in accordance with §5.5 the
participating interests of the parties at the time the Joint Venture is formed
will be: 

- 23 -

	Optionee 	51% 
	LVMC 	49% 

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

Management Committee

10.4                 
Upon formation of the Joint Venture, a management committee (the “Management
Committee”), formed by members from each party and holding voting rights in
accordance with each party’s participating interest, will be established which
will make all decisions, on a simple majority vote, which are required to be
made by the Joint Venture parties with respect to the Joint Venture’s operation,
including but not limited to the supervision and approval of exploration,
development, construction, mining, milling, processing, treatment operations and
related operations conducted in respect of the Property. The Management
Committee will have the authority to establish its own rules on how meetings of
the Management Committee will be called and conducted. 

Operator

10.5                 
The Operator will be subject to the direction and control of the Management
Committee. The Optionee will have the right to be the Operator of the Joint
Venture and to manage and operate the exploration, feasibility study, mine
development and mining phases of the project during the term of the Joint
Venture, provided that the Optionee’s participating interest in the Joint
Venture is at least fifty percent (50%). If the Optionee holds less than a fifty
percent (50%) participating interest, the Management Committee may appoint a new
Operator. 

Overhead Costs

10.6                 
The Operator will be entitled to charge the Joint Venture an amount for general
overhead and administrative costs and management fees equal to: 

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

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

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

excluding in each case the amount of the overhead charge fixed
under this §10.6.

- 24 -

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

Contracts with Operator

10.7                 
The Operator and any Affiliate of the Operator may enter into contracts with the
Joint Venture, provided that at the time of formation of any such contract the
terms thereof, including the allocation of revenues, costs, obligations and
liabilities are fair and reasonable, and that any charges made by the Operator
or its Affiliates to the Joint Venture do not exceed the fair market value
therefore. 

Accounting Procedures

10.8                 
The Operator will maintain or cause to be maintained the accounts for the Joint
Venture, to the extent and in such detail and at such places as the Management
Committee may determine, such books and records pertaining to the Joint Venture
and to the costs and expenses thereof and the performance of the Operator
hereunder, and to the receipt and disposition of proceeds from any joint sales,
as will properly reflect, in accordance with International Financial Reporting
Standards to the extent applicable and not in conflict with the
provisions hereof, all transactions of the Operator in relation to the operation
of the Joint Venture and the performance of the Operator’s duties hereunder and
all costs paid by the Operator in the performance thereof and for which it will
seek reimbursement, all of which books and records will be made available to the
other party and the Management Committee, upon reasonable notice and at all
reasonable times, for inspection, audit and reproduction. As soon as possible
after the close of each fiscal year of the Operator, all the books and accounts
of the Operator relating to the operation of the Joint Venture for such fiscal
year will be audited by the auditors for the Optionee or such other auditors as
the Management Committee may determine at the expense of the Joint Venture and
copies of the report of the auditors will be sent promptly to each party. Any
claim against the Operator relating to any transactions during the period
covered by such audit will be made within two (2) years after such audit. 

Programs and Budgets

10.9                 
The Operator will propose the work programs and budgets following the formation
of the Joint Venture in accordance with the instructions of the Management
Committee. Each party will have thirty (30) days from the date of receipt of a
program to notify the Operator as to whether it will participate at its interest
level or whether it will not participate. The participating interest of a party
which elects not to participate will be proportionately diluted in accordance
with the dilution formula set out in §10.10. A party which fails to so notify
the Operator within the time required will be deemed to have elected to
participate in the work program at its interest level. A party’s right not to
participate in a work program and be diluted as aforesaid may only be exercised
prior to a production decision, subject to §10.14. A party which elects not to
participate in a program will not be subject to dilution to the extent that the
expenditures under such program exceed one hundred fifteen percent (115%) of the
budget for such program. If a party fails to pay after electing to participate
that party will suffer an accelerated dilution of one-hundred fifty percent (150%) of the
monies not paid. The Joint Venture Agreement shall provide that monies required
for a work program must be paid no later than thirty days (30) prior to
commencement of a work program. 

- 25 - 

Dilution 

10.10               
The dilution formula will be as follows:

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

where: 

A = deemed expenditures of party Y 

B = actual expenditures of party Y 

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

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

	 	If the participating interests of the parties are: 	Their deemed expenditures upon formation of the
      Joint Venture will be: 
	 	 	 	 
	 	Exercise of Option 1 	  	 
	 	 	 	 
	 	Optionee                 
      51% 	$4,500,000 	 
	 	 	 	 
	 	Optionor                 
      49% 	$4,323,529 	 
	 	 	 	 
	 	Exercise of Option 2 	  	 
	 	 	 	 
	 	Optionee                 
      70% 	$5,250,000 	 
	 	 	 	 
	 	Optionor                 
      30% 	$2,250,000 	 

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

Excess Work Costs 

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

- 26 -

Royalty Interest

10.12               
If any party is diluted to a ten percent (10%) or lower participating interest,
that party will be deemed to have waived the opportunity to participate in
future work programs, whether in exploration, development or production, and to
have converted its participating interest to a two percent (2%) Net Smelter
Return, to be determined and paid as set out in Schedule “D” hereto. 

Pre-Feasibility Report

10.13               
The Management Committee will propose and may amend the schedule for preparation
of an independent Pre-Feasibility Report, and will have the right to review and
approve or reject the Pre-Feasibility Report or require it to be modified and to
make the production decision.

Production Decision

10.14               
For ninety (90) days following a positive production decision, each party to the
Joint Venture will have the right to elect to participate in the financing in
proportion to its then current participating interest in the Joint Venture. If a
party does not elect to participate in the financing, or is unsuccessful in
raising its proportionate share of the financing, then the other party may
arrange all the financing required and if it does so, the participating interest
of the party which has not provided its share of the financing will be converted
to a two percent (2%) Net Smelter Return, to be determined and paid as provided
in Schedule “D” hereto. 

Reclamation Fund

10.15               
Upon Commencement of Commercial Production, a reclamation fund will be
established to which the parties will be obliged to contribute in accordance
with their participating interests. The reclamation fund will be in an amount
determined by the Management Committee from time to time. The Operator will in
its reasonable discretion accept security in lieu of receiving such payment in
cash. The reclamation fund need not be maintained if one party acquires all of
the other party’s participating interest in the Joint Venture. 

Default in Funding

10.16               
If a party to the Joint Venture defaults in its obligation to contribute to any
program and budget or to make any other required contribution, the other party
may at its election make such contribution on behalf of the defaulting party (a
“cover payment”). The cover payment will constitute indebtedness due from
the defaulting party to the party making the cover payment and will be payable
on demand, will bear interest at the prime rate of the Bank of Canada plus 10
percent (10%) per annum and will be secured by the defaulting party’s right,
title and interest in the Property and all production therefrom. The party
making the cover payment will have the right to sell in any commercially
reasonable manner the defaulting party’s share of products of any mine developed
on the Property until the cover payment and accrued interest thereon have been
paid in full, or may at any time prior to such payment in full at its election:

(a)        adjust the parties’
respective participating interests pursuant to §10.10;

- 27 -

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

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

Taking in Kind

10.17               
Except as otherwise expressly provided in §10.16, each party will be entitled to
take in kind and separately dispose of its share of products of any mine
developed on the Property in accordance with its participating interest. Any
expenditure incurred in the taking in kind of products by a party will be borne
by it. The division of products for the purposes of this provision will be
conducted in a fair and equitable manner. 

Failure to Enter into Joint Venture Agreement 

10.18               
If for any reason the Joint Venture Agreement is not settled, executed and
delivered, this Agreement, containing the above Joint Venture terms, will remain
binding on the parties and will continue to govern their relationship and
operations on the Property. 

PART 11

AREA OF INTEREST

Area of Interest

11.1                 
If either party or any of its Affiliates stakes or otherwise acquires any
interest in primary mining licenses, prospecting licenses, or any other form of
mineral license (the “AOI License”) located wholly or partly in an area
(the “Area of Interest”) within fifteen (15) kilometres from any portion
of the Property as it exists at the date of execution of this Agreement as shown
on the map attached as Schedule “B”, the acquiring party will forthwith give
notice to the non-acquiring party of such staking or acquisition, the costs
thereof and all details in its possession with respect to the nature of the AOI
License and the known mineralization thereon. Upon delivery of such notice, the
non-acquiring party will have the right to elect whether to add such rights to
the Property (whether the rights are contained wholly within the Area of
Interest or only partially within the Area of Interest), and: 

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

(b)      
 if the non-acquiring party wishes to include such acquired rights as part
of the Property, it will be obliged to exercise its election in writing within
45 days of receipt of the written notice referred to in this §11.1, subject to
receipt of all required governmental and regulatory approvals, consents or
acceptances, such rights will be considered as part of the Property at a price
equivalent to the actual acquisition cost; and 

- 28 -

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

11.2                 
The inclusion of any such rights will not, however, enlarge the Area of Interest
beyond the area defined on the Closing Date. 

PART 12

CONFIDENTIALITY

Confidentiality

12.1                 
All information concerning this Agreement and any matters arising from or in
connection herewith (including all information relating to the Property received
by the Optionee from the Optionor pursuant to §8.6(a) or otherwise or received
by the Optionor from the Optionee pursuant to §8.9 or §9.3(a) or otherwise) will
be treated as confidential by the parties and will not be disclosed by either
party to any other person (other than to an Affiliate or to the directors,
officers or employees of the disclosing party or its Affiliate or to any legal,
accounting, financial or other professional advisor of the disclosing party or
its Affiliate, provided that such persons are under obligation to maintain
confidentiality with respect to such information) without the prior written
consent of the other party, such consent not to be unreasonably withheld, except
to the extent that such disclosure may be necessary for observance of applicable
laws or stock exchange listing requirements or for the accomplishment of the
purposes of this Agreement. 

News Releases and Other Documents

12.2                 
Each party will provide the other with a copy of any news release or other
document containing exploration results or other information about the Property
or this Agreement which it proposes to publish (including on any website or
other electronic media) prior to publication of the same for the other party’s
consent which will not be unreasonably withheld or delayed in view of any timely
disclosure obligations which may be applicable. Each party will use reasonable
efforts to respond to any request by the other party for such consent within two
(2) business days. 

Return of Confidential Information

12.3                 
If this Agreement is terminated pursuant to §9.1, both parties agree that all
Confidential Information and copies thereof obtained by each party concerning or
relating to the other party will be immediately returned to the party or its
representatives having supplied the Confidential Information. 

- 29 - 

Survival of Confidentiality Obligations 

12.4                 
The provisions of this Part 12 will survive any termination of the Option and
this Agreement and the acquisition of any interest in the property by the
Optionee hereunder. 

PART 13

RESTRICTIONS ON TRANSFERS AND ENCUMBRANCES

Restrictions on Transfers and Encumbrances

13.1                 
Except as set forth in §13.2 to §13.4 hereof, no party will sell, transfer,
assign or convey or grant any Encumbrance over all or any part of its interest
in the Property or this Agreement or any of its rights, benefits and privileges
hereunder (including any Production Royalty Interest) (collectively for purposes
of this Part 13 “an interest in the Property”) without the prior written
consent of the other party thereto, which consent will not be unreasonably
withheld, and any attempt to sell, transfer, assign or convey or to grant any
such Encumbrance over all or any part of its interest in the Property without
such consent will be of no effect. 

Transfers to Affiliates

13.2                 
Each party may sell, transfer, assign and convey an interest in the Property to
an Affiliate of such party, provided such party delivers to the other party
notice of such assignment and provided that before such Affiliate ceases to be
an Affiliate of such party, the interest assigned to such Affiliate must be
assigned back to such party. 

Right of First Refusal

13.3                 
No party will sell, assign, transfer or otherwise dispose of an interest in the
Property except in accordance with §13.1 or §13.2 or upon the following
conditions: 

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

(b)      
 the other party will have sixty (60) days to accept the Offer. If the
Offer is accepted by the other party (in this §13.3 the “Purchasing
Party”) , the Seller will forthwith transfer to the Purchasing Party the
subject matter of the Offer, upon the Purchasing Party paying the purchase
price;

- 30 -

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

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

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

Encumbrances

13.4                 
Following formation of the Joint Venture, a party may grant an Encumbrance over
its interest in the Property, but only upon the condition that the mortgagee,
pledgee or other encumbrancer (the “Holder”) will have first entered into
an agreement with the other party binding upon the Holder and its assignees to
the effect that the Holder and its assignees will not enter into possession of
the interest subject to the Encumbrance or institute any proceedings to obtain
possession thereof, but will limit their remedies against such interest to the
sale thereof, and that §13.3 will apply to any such sale. 

PART 14

OPTION AND EXCHANGE ACCEPTANCE

Option

14.1                 
This Agreement is an option only and nothing herein contained will be construed
as obligating the Optionee to do any acts or make any payments hereunder, and
any act or acts or payment or payments as will be made hereunder will not be
construed as obligating the Optionee to do any further act or make further
payment or payments. 

Exchange Acceptance

14.2                 
The obligations of the Optionee under this Agreement are subject to the
acceptance for filing of the Agreement by the Exchange. The Optionor agrees to
use commercially reasonable efforts to assist the Optionee in obtaining Exchange
acceptance of this Agreement, including signing and delivering or providing all
such documents and information as may be reasonably required by the Exchange

- 31 -

PART 15

FORCE MAJEURE

Force Majeure

15.1                 
No party will be liable to the other party hereto and no party will be deemed in
default hereunder for any failure to perform or delay in performing any of its
obligations under this Agreement or in incurring Work Costs caused by or arising
out of any event (a “Force Majeure Event”) beyond the reasonable control
of such party, (excluding lack of funds to make the cash payments and to make
the share issuances to LVMC in Part 5 herein) but including lack of rights or
permission by government authorities or indigenous peoples’ groups to enter upon
the Property to conduct exploration, development and mining operations thereon,
war conditions, actual or potential, earthquake, fire, storm, flood, explosion,
strike, labour trouble, accident, riot, unavoidable casualty, act of restraint,
present or future, of any lawful authority, act of God, protest or
demonstrations by environmental lobbyists or indigenous peoples’ groups, act of
the public enemy, delays in transportation, breakdown of machinery, inability to
obtain necessary materials in the open market or unavailability of equipment. No
right of a party will be affected for failure or delay of a party to perform any
of its obligations under this Agreement or to incur Work Costs, if the failure
or delay is caused by a force majeure event. All times provided for in this
Agreement will be extended for the period equal to the period of delay. The
affected party will take all reasonable steps to remedy the cause of the delay
attributable to the events referred to above, provided that nothing contained in
this section will require any party to settle any labour dispute, protest or
demonstration, or to question or test the validity of any governmental order,
regulation, law or claim of right by indigenous peoples’ groups. The affected
party will promptly give notice to the other party of the commencement and
termination of each period of force majeure. 

PART 16 

ARBITRATION

16.1                 
Any dispute arising between the parties in respect of the interpretation of this
Agreement or the performance of any obligation hereunder will be submitted to
binding arbitration consisting of three arbitrators (the “Arbitration
Panel”), one arbitrator appointed by each of the parties with a third
arbitrator appointed by the parties’ two designated arbitrators, with all costs
of such arbitrators to be borne by the unsuccessful party. The arbitration will
be (1) conducted in English, (2) take place in Vancouver, British Columbia and
(3) be conducted in accordance with the Commercial Arbitration Act of
British Columbia. 

- 32 - 

PART 17 

GENERAL 

Relationship 

17.1                 
Nothing in this Agreement will be deemed to constitute either party the partner,
agent or legal representative of the other or to create any fiduciary
relationship between them, for any purpose whatsoever. 

Other Activities 

17.2                 
Nothing in this Agreement will restrict in any way the freedom of either party,
except with respect to its interest in the Property, to conduct as it sees fit
any business or activity whatsoever, whether in competition with the Joint
Venture or otherwise, including the exploration for, or the development, mining,
production or marketing of any mineral, without any accountability to the other
party. No party which is the owner or operator of another mining property, mill
or other facility will be obliged to mill, beneficiate or handle any material
from the Property or otherwise deal with the Joint Venture. 

Notices 

17.3          
       Any notice, commitment, election, consent or any
communication required or permitted to be given hereunder by one party hereto to
the other party, in any capacity (a “Notice”) will be in writing
and will be deemed to have been given if mailed by prepaid registered mail
return receipt requested, faxed or delivered to the address of the other party
set out below: 

If to the Optionor: 

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

Facsimile:      866-910-6114

Attention:     David Kaleniuk

email:            
dkaleniul@gmail.com 

If to the Optionee: 

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

Facsimile:     604-732-0284

Attention:    Peter Hughes

email:            
petehughes@me.com

- 33 -

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

Waiver of Right of Partition

17.4                 
Each party waives the benefit of all provisions of law as now in effect or as
enacted in future relating to actions of partition of real and personal property
and agrees that for so long as this Agreement is in effect it will not resort to
any action in law or in equity to partition the Property or any other real or
personal property subject to this Agreement. 

Interpretation

17.5                 
For purposes of this Agreement, headings are for convenience of reference only
and are not intended to interpret, define or limit the scope of this Agreement
or any provision hereof. The singular of any term includes the plural and vice
versa, and use of any term is generally applicable to either gender and where
applicable, a body corporate, firm or other entity. The word “including” is not
limiting whether or not non-limiting language (such as “without limitation” or
“but not limited to” or words of similar import) is used with reference thereto.
Unless otherwise indicated, all dollar references are to American dollars. 

Further Assurances

17.6                 
The parties hereto will from time to time do such further acts and things and
execute such further documents and instruments as may be reasonably required in
order to carry out and implement this Agreement. 

Amendments

17.7                 
No modification, variation or amendment of this Agreement will be effective
unless evidenced in writing, executed by both of the parties. 

Severance

17.8                 
If any provision of this Agreement will be invalid, illegal or unenforceable in
any respect under any applicable law, such provision may be severed from this
Agreement, and the validity, legality and enforceability of the remaining
provisions hereof will not be affected or impaired by reason thereof. 

Time

17.9                 
Time will be of the essence of this Agreement.

Governing Law

17.10               
This Agreement will be governed by and interpreted and enforced in accordance
with the laws in force in the Province of British Columbia (excluding any
conflict of laws rule or principle which might refer such construction to the laws of
another jurisdiction) and the applicable federal laws of Canada. Each party
irrevocably submits to the non-exclusive jurisdiction of the courts of British
Columbia with respect to any matter arising hereunder or relating hereto. 

- 34 -

Entire Agreement

17.11               
This Agreement contains the entire understanding between the parties hereto
dealing with the subject matter hereof and supersedes and replaces all
negotiations, correspondence and prior agreements or understandings relating
thereto. 

Enurement

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

Counterparts

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

Rule Against Perpetuities

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

Resale Restrictions

17.15               
All Shares issued by the Optionee to the Optionor pursuant to this Agreement
will be subject to such resale restrictions as may be imposed by applicable
securities law and the Exchange. 

Change in Capitalization

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

- 35 - 

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

LAKE VICTORIA MINING COMPANY, INC. 

Per:      /s/ David Kalenuik
            
Authorized
Signatory 
            
Name: David Kalenuik

            
Title: President

OTTERBURN VENTURES INC. 

Per:       /s/ Peter Hughes

            
Authorized
Signatory 
            
Name: Peter Hughes

            
Title: CEO

I, _____________________ Advocate have gone through this
agreement in the presence of Ahmed Abukakar Magoma. I have read the contents of
the agreement to Ahmed Abukakar Magoma and explained the contents of this
agreement to him and he acknowledged that he agreed to and accepted the
terms of this agreement and he now, in my presence set his hand to acknowledge
and accept the terms and conditions of the agreement. 

	Signed, Sealed and Delivered at the city of Dar 	) 	 
	Es-Salaam, Tanzania by AHMED 	) 	 
	ABUBAKAR MAGOMA who is known to me 	) 	 
	personally and identified by me this ______ day 	) 	 
	of ____________, 2011: 	) 	 
	 	) 	AHMED ABUBAKAR
      MAGOMA 
	 	) 	 
	 	) 	 
	COMMISSIONER FOR OATHS 	) 	 
	TANZANIA 	) 	 
	 	) 	 
	 	) 	 
	 	) 	 
	 	) 	 
	 	) 	 
	 	) 	 
	 	) 	 

- 36 - 

SCHEDULE “A” 
THE PROPERTY

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

	PML Number 	Due Date 	Recorded Owner
      - Percentage 
	PML0017530 	2011-May-26 	100 %
      
Optionor 
	PML0012266 	2012-Jan-20 	100 %
      
Optionor 
	PML0006939 	2012-Feb-25 	100 %
      
Optionor 
	PML0006868 	2012-Feb-25 	100 %
      
Optionor 
	PML0006876 	2011-Apr-18 	100 %
      
Optionor 
	PML0015839 	2012-Jan-26 	100 %
      
Optionor 
	PML0011665 	2011-Nov-19 	100 %
      
Optionor 
	PML0011666 	2012-Feb-25 	100 %
      
Optionor 
	PML0011667 	2012-Feb-25 	100 %
      
Optionor 
	PML0011668 	2011-May-26 	100 %
      
Optionor 
	PML0008130 	2011-May-26 	100 %
      
Optionor 
	PML0008131 	2011-May-26 	100 %
      
Optionor 
	PML0019226 	2011-May-26 	100 %
      
Optionor 
	PML0017558 	2011-May-22 	100 %
      
Optionor 
	PML0017556 	2011-Dec-25 	100 %
      
Optionor 
	PML0017557 	2011-Sep-21 	100 %
      
Optionor 
	PML0007985 	2011-Sep-21 	100 %
      
Optionor 
	PML0017321 	2011-Sep-21 	100 %
      
Optionor 
	PML0017322 	2011-Sep-21 	100 %
      
Optionor 
	PML0017323 	2011-Sep-21 	100 %
      
Optionor 
	PML0018823 	2011-Sep-21 	100 %
      
Optionor 
	PML0018824 	2011-Sep-21 	100 %
      
Optionor 
	PML0015288 	2011-Sep-21 	100 % 
Limbu
      Magambo Nyoda & Partners 
	PML0015289 	2011-Sep-21 	100 % 
Limbu
      Magambo Nyoda & Partners 
	PML0015290 	2011-Sep-21 	100 % 
Limbu
      Magambo Nyoda & Partners 
	PML0012360 	2011-Oct-22 	100 % 
Limbu
      Magambo Nyoda & Partners 
	PML0006837 	2011-Jul-22 	100 % 
Limbu
      Magambo Nyoda & Partners 
	PML0006836 	2011-Jul-22 	100 % 
Limbu
      Magambo Nyoda & Partners 

- 37 - 

	PML Number 	Due Date 	Recorded Owner
      - Percentage 
	PML0006851 	2011-Mar-17 	100 % 
Maswi
      Marwa & Partners 
	PML0006852 	2011-Mar-17 	100 % 
Maswi
      Marwa & Partners 
	PML0006853 	2011-Mar-17 	100 % 
Maswi
      Marwa & Partners 
	PML0006828 	2011-Mar-17 	100 % 
Maswi
      Marwa & Partners 
	PML0006826 	2011-Mar-17 	100 % 
Maswi
      Marwa & Partners 
	PML0006827 	2011-Mar-17 	100 % 
Maswi
      Marwa & Partners 
	PML0006829 	2011-Mar-17 	100 % 
Maswi
      Marwa & Partners 
	PML0006830 	2011-Mar-17 	100 % 
Maswi
      Marwa & Partners 
	PML0006839 	2011-May-22 	100 % 
John
      Bina & Partners 
	PML0006838 	2011-May-22 	100 % 
John
      Bina & Partners 
	PML0006840 	2011-Mar-17 	100 % 
John
      Bina & Partners 
	PML0014652 	2011-Mar-17 	100 % 
John
      Bina & Partners 
	PML0014653 	2011-Mar-17 	100 % 
John
      Bina & Partners 
	PML0015291 	2011-Mar-17 	100 % 
Lucas
      Mmary & Partners 
	PML0015292 	2011-Feb-23 	100 % 
Lucas
      Mmary & Partners 
	PML0015293 	2011-Dec-04 	100 % 
Lucas
      Mmary & Partners 
	PML0015322 	2011-Dec-04 	100 % 
Lucas
      Mmary & Partners 
	PML0006850 	2011-Dec-04 	100 % 
Mustafa
      Idd Kaombwe 
	PML0006849 	2011-Dec-04 	100 % 
Mustafa
      Idd Kaombwe 
	PML0006848 	2011-Dec-04 	100 % 
Mustafa
      Idd Kaombwe 
	PML0006847 	2011-Dec-04 	100 % 
Mustafa
      Idd Kaombwe 
	PML0019461 	2011-Dec-04 	100 % 
Mustafa
      Idd Kaombwe 
	PML0019462 	2011-Dec-04 	100 % 
Mustafa
      Idd Kaombwe 
	PML0006869 	2011-Dec-04 	100 % 
Mustafa
      Idd Kaombwe 
	PML0006866 	2011-Dec-04 	100 %
      
Ramadhan Lyanga & Partners 
	PML0006867 	2011-Dec-04 	100 %
      
Ramadhan Lyanga & Partners 
	PML0006944 	2011-Dec-04 	100 %
      
Elizabeth Shango 
	PML0006951 	2011-Dec-04 	100 % 
Robert
      Malando & Partners 
	PML0006952 	2011-Dec-04 	100 % 
Robert
      Malando & Partners 
	PML0006953 	2011-Dec-04 	100 % 
Robert
      Malando & Partners 
	PML0006954 	2011-Dec-04 	100 % 
Robert
      Malando & Partners 
	PML0017936 	2011-Dec-04 	100 % 
Robert
      Malando & Partners 

EXECUTION VERSION

SCHEDULE “B”
PROPERTY MAP

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

SCHEDULE “C”

  PML OPTION PAYMENTS

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

	PML 
No(s) 	Name 	70% of Second Payment
      
8/9/2011 	Final Payment 
2/8/2013 	Final Payment 
3/9/2013
  
	0006851 
0006852 
0006853 	Maswi Marwa In Partnership with
      Robert 
Malando, Andrew Julius Marando and 
Mathew Melania 	

105,000,000 	

600,000,000 	

	0006944 	Elizabeth Shango 	8,750,000 	35,000,000 	  
	0006951 
0006952 
0006953 
0006954
      
0017936 	

Robert malando In
      partnership with 
Benidict Mitti, Maswi Marwa Marwa 
Marwa and Fred
      Muongo 	

43,750,000 	

	

1,500,000,000 
	
0014652 
0014653 	John Bina Wambura in Partnership
      with 
Bosco Sevelin Chaila; Plus Game; 
Saimon Jonga 	

68,833,334 	

	

266,666,666 
	
0006838 
0006839 
0006840 	John Bina Wambura in Partnership
      with 
Jumanne Mtemi; Anton Gidion; Bosco 
Sevelin Chaila; Plus Game;
      Saimon 
Jonga 	

103,250,001 	

	

399,999,999 
	0006836 
0006837 
0015288 
0015289
      
0015290 	

Limbu Magambo in
      Partnership with 
Pous GamI and Shambuli Sumbuka 	

66,500,000 	

	

500,000,000 
	0015291 
0015292 
0015293 
0015322
    	Lukas Mmary in Partnership with
      Henry 
Pajero, John Bina, Massanja Game, 
Mwajuma Joseph, Mwita
      Magita and 
Plus Game 	

127,750,001 	

	

533,333,332 
	0006826 
0006827 
0006828 
0006829
      
0006830 	

Maswi Marwa In
      Partnership with 
Shagida malando; Marwa Marwa; 
Benidict Mitti and
      Fred Mgongo 	

175,000,000 	

	

1,200,000,000 
	0006847 
0006848 
0006849 
0006850
      
0019461 
0019462 	

Mustafa IDD
      Kaombwe 	

210,000,000 	

	

999,999,996 
	

0006869 	Mustafa IDD Kaombwe in
      Partnership 
with Mahega Malugoyi; Julias Kamana; 
Ramadhani Lyanga
      and Abas Mustafa 	

35,000,000 	

	

200,000,000 
	
0006866 
0006867 	Ramadhani Mohamed Lyanga In
      
partnership With Mustafa Kaombwe and 
Bethod Njega 	

35,000,000 	

	

200,000,000 
	  	Total (TZS) 	978,833,335 	635,000,000 	5,799,999,993 
	  	  	0.00066 	0.00066 	0.00066 
	  	USD Approx.(Estimated) 	$646,030.00 	$419,100.00 	$3,828,000.00 

- 2 - 

SCHEDULE “D” 
NET SMELTER RETURN

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

	1. 	
      The Royalty Interest which may be payable to the Optionor
      s (the "Payee") by the Optionee (the "Payor") pursuant to Subsection 9.12
      of the Agreement will be two (2%) percent of the Net Smelter Revenue (as
      hereinafter defined) and will be calculated and paid to the Payee by the
      Payor in accordance with the terms of this Schedule "C". Terms having
      defined meanings in the Agreement and used herein will have the same
      meanings in this Schedule as assigned to them in the Agreement unless
      otherwise specified or the context otherwise requires.

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

	 	 	 	 
	3. 	
      The following words will have the following
    meanings:

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

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

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

	 	 	 	 
			(iii) 	
      any proceeds of insurance on Product; and

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

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

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

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

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

- 3 -

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

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

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

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

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

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

- 4 -

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

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

- 5 - 

SCHEDULE “E”
LVMC REPRESENTATION LETTER

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

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

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

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

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

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

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

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

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

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

- 6 -

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

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

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

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

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

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

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

- 7 -

(i)      
 the sale is to Pubco; 

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

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

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

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

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

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

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

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

- 8 -

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

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

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

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

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

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

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

Exhibit “1” to Schedule E 
U.S. Representation
Letter of Optionor 

  FORM OF DECLARATION FOR REMOVAL OF U.S. LEGEND 

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

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

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

	  	 	(please print) 

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

- 2 - 

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

__________________________________________________
Name of
Firm 

By:      
____________________________________________
            
Authorized officer 

- 3 -

SCHEDULE “F”
OPTIONEE REPRESENTATION LETTER

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

Optionee Representation Letter

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

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

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

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

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

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

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

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

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

- 4 -

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

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

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

OTTERBURN VENTURES INC

Per: 

_______________________
Authorized
Signatory 

Appendix “I” to Schedule F 

  Extract from Nevada Revised Statutes, Chapter 90 

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

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

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

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

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

          (d)      One
of the following conditions is satisfied: 

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

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

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