Document:

REGISTRATION RIGHTS AGREEMENT

      THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made as of the
_____ day of __________, 2006 (the "Effective Date"), by and among Tornado Gold
International Corp., a Nevada corporation (the "Company"), and the individuals
and entities who have executed this Agreement and are identified on the
signature page hereto (each, a "Holder," and collectively, the "Holders").

                                    Recitals

      WHEREAS, in connection with the issuance of an aggregate of __________
shares of the Company's Common Stock to the Holders (the "Shares") and warrants
exercisable for an equivalent number of shares (the "Warrants") pursuant to
Subscription Agreements dated as of the date hereof by and between the Company
and each of the Holders, the Holders have requested, and the Company has agreed
to grant, registration rights in respect of the Shares and the shares issuable
upon the exercise of the Warrants (the "Warrant Shares"), as more specifically
set forth herein below.

      NOW, THEREFORE, the parties agree as follows:

                                    Agreement

      1. Registration Rights. The Company covenants and agrees as follows:

            1.1   Definitions.  For purposes of this Section 1:

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

                  (b) The term "Common Stock" means the common stock, par value
$0.001, of the Company.

                  (c) The term "1934 Act" means the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated thereunder.

                  (d) The term "Filing Deadline" has the meaning set forth in
Section 1.3(a) herein.

                  (e) The terms "register," "registered," and "registration"
refer to a registration effected by preparing and filing a registration
statement or similar document in compliance with the 1933 Act, and the
declaration or ordering of effectiveness of such registration statement or
document.

                  (f) The term "Registrable Securities" means (i) the Shares and
the Warrant Shares (subject to appropriate adjustment for stock splits, stock
dividends, combinations, and other recapitalizations after the date hereof
(collectively, a "Recapitalization")) and (ii) any Common Stock issued as a
dividend or other distribution with respect to, or in exchange for, or in
replacement of the shares referenced in (i) above, excluding in all cases,
however, any Registrable Securities that have been sold by a person privately,
pursuant to the provisions of Rule 144, or pursuant to a registration statement
under the 1933 Act covering such Registrable Securities that has been declared
effective by the SEC.

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<PAGE>

                  (g) The number of shares of "Registrable Securities then
outstanding" shall be determined by the number of shares of Common Stock
outstanding that are Registrable Securities.

                  (h) The term "SEC" means the Securities and Exchange
Commission or any successor thereto.

            1.2 Information Under the 1934 Act. With a view to making available
to the Holders the benefits of Rule 144 promulgated under the 1933 Act and any
other rule or regulation of the SEC that may at any time permit the Holders to
sell the Registrable Securities without registration, the Company agrees, for so
long as the Holders own any Registrable Securities not transferable pursuant to
paragraph (k) of Rule 144, to:

                   (a) Make and keep public information available, as those
terms are understood and defined in SEC Rule 144;

                   (b) File with the SEC in a timely manner all reports and
other documents required of the Company under the 1934 Act or deliver to the
Company's market-makers all current information required of the Company under
Section 15c2-11 of the 1934 Act and to make all financial statements of the
Company available to its stockholders; and

                   (c) Furnish to the Holders upon request (i) a written
statement by the Company that it has complied with the reporting requirements of
SEC Rule 144 and the 1934 Act, and (ii) such other information as may be
reasonably requested in availing the Holders of any rule or regulation of the
SEC which permits the selling of any such securities without registration or
pursuant to such form.

            1.3 Mandatory Registration. The Company shall (a) file with the SEC
a registration statement on Form SB-2 (or, if Form SB-2 is not then available to
the Company, on such form of registration statement as is then available to
effect a registration for resale of the Registrable Securities) (the
"Registration Statement"), registering all of the Registrable Securities for
resale within 120 days of the Effective Date (the "Filing Deadline"); and (b)
use commercially reasonable efforts to cause the Registration Statement to be
declared effective by the SEC as soon as possible thereafter; but, in any event
not later than the earlier of (a)(i) 180 days following the date of this
Agreement, and (ii) the fifth trading day following the date on which the
Company is notified by the SEC that the Registration Statement will not be
reviewed or is no longer subject to further review and comments (the
"Effectiveness Deadline").

            If a registration statement covering the Registrable Securities is
not filed with the SEC on or prior to the Filing Deadline or declared effective
by the SEC on or prior to the Effectiveness Deadline, the Company will make pro
rata payments to each Holder, as liquidated damages and not as a penalty, in an
amount in cash equal to 1.0% of the aggregate amount invested by such Holder for
each 30-day period or pro rata for any portion thereof following the date by
which such registration statement should have been filed or declared effective,
as applicable, with respect to the Registrable Securities. Such payments shall
be in partial compensation to the Holders and shall not constitute the Holders'
exclusive remedy for such events. Such payments shall be made to each Holder in
cash.

            1.4 Obligations of the Company. Whenever required under this Section
1 to effect the registration of any Registrable Securities, the Company, at its
expense, shall, as expeditiously as reasonably possible:

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<PAGE>

                  (a) Prepare and file with the SEC a registration statement
with respect to such Registrable Securities and use its reasonable best efforts
to cause such registration statement to become effective and, subject to the
proviso in this Section 1.4(a), keep such registration statement effective for a
period of up to ninety (90) days or until the distribution contemplated in the
Registration Statement has been completed; provided, however, that applicable
rules under the 1933 Act governing the obligation to file a post-effective
amendment permit, in lieu of filing a post-effective amendment that (i) includes
any prospectus required by Section 10(a)(3) of the 1933 Act, or (ii) reflects
facts or events representing a material or fundamental change in the information
set forth in the registration statement, the incorporation by reference of
information required to be included in (i) and (ii) above to be contained in
periodic reports filed pursuant to Section 13 or 15(d) of the 1934 Act in the
registration statement.

                  (b) Prepare and file with the SEC such amendments and
supplements to such registration statement and the prospectus provided by
Company in connection with such registration statement as may be necessary to
comply with the provisions of the 1933 Act with respect to the disposition of
all securities covered by such registration statement.

                  (c) Furnish to the Holders such numbers of copies of a
prospectus in conformity with the requirements of the 1933 Act, and such other
documents as the Holders may reasonably request from time to time in order to
facilitate the disposition of Registrable Securities owned by it.

                  (d) Use its best efforts to register and qualify the
securities covered by such registration statement under such other securities or
Blue Sky laws of such jurisdictions as shall be reasonably requested by the
Holders; provided that the Company shall not be required in connection therewith
or as a condition thereto to qualify to do business or to file a general consent
to service of process in any such states or jurisdictions, unless the Company is
already required to qualify to do business or subject to service in such
jurisdiction and except as may be required by the 1933 Act.

                  (e) In the event of any underwritten public offering, enter
into and perform its obligations under an underwriting agreement, in usual and
customary form, with the managing underwriter of such offering. As a
pre-condition to a Holder's Registrable Securities being included in such
registration and underwriting, such Holder shall also enter into and perform his
obligations under such an underwriting agreement.

                  (f) Notify each Holder of Registrable Securities covered by
such registration statement at any time when a prospectus relating thereto is
required to be delivered under the 1933 Act of the happening of any event as a
result of which the prospectus included in such registration statement, as then
in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing, and, at
the request of a Holder, prepare and furnish to such Holder a reasonable number
of supplements to, or amendment of, such prospectus as may be necessary so that,
as thereafter delivered to the purchasers of such share, such prospectus shall
not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading or incomplete in light of the circumstances then existing.

                  (g) Use its reasonable best efforts to cause all such
Registrable Securities registered pursuant hereunder to be listed on each
securities exchange on which similar securities issued by the Company are then
listed.

                                      -3-
<PAGE>

                  (h) Provide a transfer agent and registrar for all Registrable
Securities registered pursuant hereunder and a CUSIP number for all such
Registrable Securities, in each case not later than the effective date of such
registration.

                  (i) Make available for inspection by any underwriter
participating in any disposition pursuant to such registration, and any attorney
or accountant retained by the underwriter, all financial and other records,
pertinent corporate documents and properties of the Company, and cause the
Company's officers and directors to supply all information reasonably requested
by the underwriter, attorney or accountant in connection with such registration
statement; provided, however, that the underwriter, attorney or accountant shall
agree to hold in confidence and trust all information so provided.

                  (j) Make available to each Holder participating in such
registration, upon the request of such Holder:

                        (i) in the case of an underwritten public offering, a
copy of any opinion of counsel for the Company provided to the underwriters
participating in such offering, dated the date such shares are delivered to such
underwriters for sale in connection with the registration statement;

                        (ii) in the case of an underwritten public offering, a
copy of any "comfort" letters provided to the underwriters participating in such
offering and signed by the Company's independent public accountants who have
examined and reported on the Company's financial statements included in the
registration statement, to the extent permitted by the standards of the AICPA or
other relevant authorities; and

                        (iii) a copy of all documents filed with and all
correspondence from or to the SEC in connection with any such offering other
than non-substantive cover letters and the like.

                  (k) otherwise use its reasonable best efforts to comply with
all applicable rules and regulations of the SEC, and timely make available to
its security holders an earnings statement covering the period of at least 12
months, but not more than 18 months, beginning with the first month after the
effective date of the registration statement, which earnings statement shall
satisfy the provisions of Section 11(a) of the 1933 Act.

            1.5 Furnish Information. It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this Section 1 with
respect to Registrable Securities of any selling Holder that such Holder shall
furnish to the Company such information regarding itself, its affiliates, the
Registrable Securities held by it, and the intended method of disposition of
such securities as shall be required to effect the registration of such Holder's
Registrable Securities.

            1.6 Expenses of Company Registration. The Company shall bear and pay
all expenses incurred by it in connection with any registration, filing or
qualification of Registrable Securities with respect to the registration
pursuant to Section 1.3 for the Holders and compliance with the terms hereof,
including (without limitation) all registration, filing, and qualification fees,
printers and accounting fees relating or apportionable thereto and the fees and
disbursements of counsel for the Company, but excluding underwriting discounts
and commissions relating to Registrable Securities.

                                      -4-
<PAGE>

            1.7 Reductions of Registrable Securities to be Included. In
connection with any offering involving an underwriting of shares of the
Company's capital stock, the Company shall not be required under Section 1.3 to
include a Holder's securities in such underwriting unless such Holder accepts
the terms of the underwriting as agreed upon between the Company and the
underwriters selected by the Company and then only in such quantity as the
underwriters determine in their sole discretion will not jeopardize the success
of the offering by the Company. If the total amount of securities, including
Registrable Securities, requested by stockholders to be included in such
offering exceeds the amount of securities sold other than by the Company that
the underwriters determine in their sole discretion is compatible with the
success of the offering, then the Company shall be required to include in the
offering only that number of such securities, including Registrable Securities,
which the underwriters determine in their sole discretion will not jeopardize
the success of the offering (the securities so included to be apportioned pro
rata among the selling stockholders according to the total amount of securities
entitled to be included therein owned by each selling stockholder or in such
other proportions as shall mutually be agreed to by such selling stockholders).

            1.8 Delay of Registration. The Holders shall not have any right to
obtain or seek an injunction restraining or otherwise delaying any such
registration as the result of any controversy that might arise with respect to
the interpretation or implementation of this Section 1.

            1.9 Indemnification. In the event any Registrable Securities are
included in a registration statement under this Section 1:

                  (a) To the extent permitted by law, the Company will indemnify
and hold harmless the Holders, each officer and director of the Holders, any
underwriter (as defined in the 1933 Act) of the Holders and each person, if any,
who controls the Holders or underwriter within the meaning of the 1933 Act or
the 1934 Act, against any losses, claims, damages, or liabilities (joint or
several) to which they may become subject under the 1933 Act, the 1934 Act or
other federal or state law, insofar as such losses, claims, damages, or
liabilities (or actions in respect thereof) arise out of or are based upon any
of the following statements, omissions or violations (collectively, a
"Violation"): (i) any untrue statement or alleged untrue statement of a material
fact contained in such registration statement, including any preliminary
prospectus or final prospectus contained therein or any amendments or
supplements thereto; (ii) the omission or alleged omission to state therein a
material fact required to be stated therein, or necessary to make the statements
therein not misleading; or (iii) any violation or alleged violation by the
Company of the 1933 Act, the 1934 Act, any state securities law or any rule or
regulation promulgated under the 1933 Act, the 1934 Act or any state securities
law; and the Company will pay to the Holders, underwriter or controlling person
any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability, or action;
provided, however, that the indemnity agreement contained in this Section 1.9(a)
shall not apply to (1) a Holder if he is either an officer or director of the
Company at the time of the statement, omission or violation (a "Management
Holder") unless such Management Holder has sold shares included in the
registration statement, (2) amounts paid in settlement of any such loss, claim,
damage, liability, or action if such settlement is effected without the consent
of the Company (which consent shall not be unreasonably withheld), or (3) any
such loss, claim, damage, liability, or action to the extent that it arises out
of or is based upon a Violation which occurs in reliance upon and in conformity
with written information furnished expressly for use in connection with such
registration by a Holder (including each officer and director of such Holder),
underwriter or controlling person.

                                      -5-
<PAGE>

                  (b) To the extent permitted by law, the selling Holders will
indemnify and hold harmless the Company, each of its directors, each of its
officers who has signed the registration statement, each person, if any, who
controls the Company within the meaning of the 1933 Act, any underwriter and any
controlling person of any such underwriter, against any losses, claims, damages,
or liabilities (joint or several) to which any of the foregoing persons may
become subject, under the 1933 Act, the 1934 Act or other federal or state law,
insofar as such losses, claims, damages, or liabilities (or actions in respect
thereto) arise out of or are based upon any Violation, in each case to the
extent (and only to the extent) that such Violation occurs in reliance upon and
in conformity with written information furnished by the Holder, or by an officer
or director of the Holders expressly for use in connection with such
registration; and the Holders will pay any legal or other expenses reasonably
incurred by any person intended to be indemnified pursuant to this Section
1.9(b) in connection with any actual loss, claim, damage, liability, or action
based on a final judgment or settlement; provided, however, that the indemnity
agreement contained in this Section 1.9(b) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Holder, which consent shall
not be unreasonably withheld; provided, further, that in no event shall any
indemnity under this Section 1.9(b) exceed the gross proceeds from the offering
received by the Holders net of underwriters' commissions and discounts.

                  (c) Promptly after obtaining actual knowledge of any third
party claim or action as to which it may seek indemnification under this Section
1.9, an indemnified party will, if a claim in respect thereof is to be made
against any indemnifying party under this Section 1.9, deliver to the
indemnifying party a written notice thereof and the indemnifying party shall
have the right to participate in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly noticed, to assume
the defense thereof with counsel mutually satisfactory to the parties; provided,
however, that an indemnified party (together with all other indemnified parties
which may be represented without conflict by one counsel) shall have the right
to retain one separate counsel, with the fees and expenses to be paid by the
indemnifying party, if representation of such indemnified party by the counsel
retained by the indemnifying party would be inappropriate due to actual or
potential differing interests between such indemnified party and any other party
represented by such counsel in such proceeding. The failure to deliver written
notice to the indemnifying party within a reasonable time of the commencement of
any such action shall relieve such indemnifying party of any liability to the
indemnified party under this Section 1.9, if, and to the extent that, such
failure is prejudicial to such indemnifying party's ability to defend such
action, but the omission so to deliver written notice to the indemnifying party
will not relieve it of any liability that it may have to any indemnified party
otherwise than under this Section 1.9.

                  (d) If the indemnification provided for in this Section 1.9 is
held by a court of competent jurisdiction to be unavailable to an indemnified
party with respect to any loss, liability, claim, damage, or expense referred to
therein, then the indemnifying party, in lieu of indemnifying such indemnified
party hereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, claim, damage, or expense
(including, without limitation, legal and other expenses incurred by such
indemnified party in investigating or defending any such action or claim) in
such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other in
connection with the statements or omissions that resulted in such loss,
liability, claim, damage, or expense as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge, access to information, and opportunity to correct or prevent such
statement or omission. Notwithstanding the provisions of this Section 1.9, the
Holders shall not be required to contribute any amount or make any other
payments under this Agreement which in the aggregate exceed the net proceeds
received by the Holders from the offering covered by the applicable registration
statement.

                                      -6-
<PAGE>

                  (e) Notwithstanding the foregoing, to the extent that the
provisions on indemnification and contribution contained in the underwriting
agreement entered into in connection with the underwritten public offering are
in conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control.

                  (f) The obligations of the Company and Holders under this
Section 1.9 shall survive the completion of any offering of Registrable
Securities in a registration statement under this Section 1, and otherwise.

            1.10 Transfer of Registration Rights. The rights to cause the
Company to register Registrable Securities pursuant to this Section 1 may be
transferred only to any person or entity that is a relative or an affiliate of
the transferring Holder in connection with a permitted transfer of the
Registrable Securities exempt from registration under the 1933 Act.

            1.11 "Market Stand-Off" Agreement. Each Holder hereby agrees that,
during the period of duration specified by the Company and an underwriter of
common stock or other securities of the Company, following the effective date of
a registration statement of the Company filed under the 1933 Act, it shall not,
to the extent requested by the Company and such underwriter, directly or
indirectly sell, offer to sell, contract to sell (including, without limitation,
any short sale), grant any option to purchase or otherwise transfer or dispose
of (other than to donees who agree to be similarly bound) any securities of the
Company held by him or her any time during such period except common stock
included in such registration; provided, however, that:

                  (a) Such agreement shall be applicable only to the first two
such registration statements of the Company which covers common stock (or other
securities) to be sold on its behalf to the public in an underwritten offering
in excess of $10,000,000;

                  (b) Such market stand-off time period shall not exceed 180
days; and

                  (c) All officers and directors of the Company and holders of
record of not less than three percent of the Company's common stock enter into
similar agreements.

      In order to enforce the foregoing covenant, the Company may impose
stop-transfer instructions with respect to the Registrable Securities of each
Holder (and the shares or securities of every other person subject to the
foregoing restriction) until the end of such period.

      Notwithstanding the foregoing, the obligations described in this Section
1.11 shall not apply to a registration relating solely to employee benefit plans
on Form S-1 or Form S-8 or similar forms which may be promulgated in the future,
or a registration relating solely to a Commission Rule 145 transaction on Form
S-4 or similar forms which may be promulgated in the future.

      2.    Miscellaneous.

            2.1 Successors and Assigns. Except as otherwise provided herein, the
terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective successors and assigns of the parties (including
transferees of any shares of Registrable Securities). Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.

            2.2 Governing Law. This Agreement shall be governed by and construed
under the laws of the State of Nevada as applied to agreements among Nevada
residents entered into and to be performed entirely within Nevada.

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<PAGE>

            2.3 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

            2.4 Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

            2.5 Notices. Any notice required or permitted under this Agreement
shall be given in writing and shall be deemed effectively given upon personal
delivery to the party to be notified or by telex or confirmed facsimile, or one
delivery day after deposit with a recognized overnight express delivery service
or courier (for FedEx Express Overnight or equivalent delivery to and from an
address within the United States of America) or three delivery days after
deposit with a recognized overnight express delivery service or courier (for
FedEx Express International Priority or equivalent delivery to and from an
address outside the United States of America), and addressed to the party to be
notified at the address indicated for such party below, or at such other address
as such party may designate by ten days' advance written notice to the other
party:

                  (a) If to the Company:

                        Tornado Gold International Corp.
                        Attention: Chief Executive Officer
                        8600 Technology Way, Suite 118
                        Reno, Nevada  89521
                        Fax number:  775-853-8921

                        with a copy to:
                        (which shall not constitute notice)

                        Bryan Cave LLP
                        Attention: Randolf W. Katz
                        2020 Main Street, Suite 600
                        Irvine, California 92614-8226
                        Fax number: (949) 223-7100

                  (b) If to a Holder:

                        See signature page to this Agreement

                        with a copy to:
                        (which shall not constitute notice)

                        See signature page to this Agreement

or to such other person or address as any party shall specify by notice in
writing to each of the other parties. All such notices, requests, demands,
waivers, and communications shall be deemed to have been received on the date of
delivery if the date of transmission is electronically endorsed automatically on
the media or evidenced by courier service documentation. If notice is mailed or
transmitted in a manner in which date of delivery cannot be ascertained from the
media used or courier service records, notice shall be deemed given on the fifth
business day after the mailing or other transmission or delivery thereof. A
notice of a change of address shall be effective only upon receipt.

                                      -8-
<PAGE>

            2.6 Expenses. If any action at law or in equity is necessary to
enforce or interpret the terms of this Agreement, the prevailing party shall be
entitled to reasonable attorneys' fees, costs, and necessary disbursements in
addition to any other relief to which such party may be entitled.

            2.7 Amendments and Waivers. Any term of this Agreement may be
amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or
prospectively), only with the written consent of the Company and the holders
representing a majority of the Registrable Securities then outstanding. Any
amendment or waiver effected in accordance with this Section 2.7 shall be
binding upon each holder of any Registrable Securities then outstanding, each
future holder of all such Registrable Securities, and the Company; provided
that, without the consent of the Company and holders representing a majority of
the Registrable Securities then outstanding, no amendment to this Agreement may
be made that (i) modifies this Section 2.7, or (ii) would affect the holders of
the Registrable Securities in a disproportionate manner (other than any
disproportionate results that are due to a difference in the relative stock
ownership in the Company).

            2.8 Severability. If one or more provisions of this Agreement are
held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of the Agreement shall be interpreted as if
such provision were so excluded and shall be enforceable in accordance with its
terms.

            2.9 Aggregation of Stock. All shares of Registrable Securities held
or acquired by affiliated entities or persons shall be aggregated together for
the purpose of determining the availability of any rights under this Agreement.

            2.10 Entire Agreement. This Agreement constitutes the full and
entire understanding and agreement between the parties regarding the matters set
forth herein. Except as otherwise expressly provided herein, the provisions
hereof shall inure to the benefit of, and be binding upon the successors,
assigns, heirs, executors, and administrators of the parties hereto.

            2.11 Further Assurances. At any time, and from time to time, each
party will execute such additional instruments and take such action as may be
reasonably requested by any other party to carry out the intent and purposes of
this Agreement.

            2.12 Choice of Law; Forum. Notwithstanding the place where this
Agreement or any counterpart hereof may be executed by any of the parties
hereto, the parties expressly agree that all the terms and provisions hereof
shall be construed under the laws of the State of Nevada and that any actions
related hereto shall be brought in a court of competent jurisdiction located in
the County of Clark, State of Nevada.

                 [BALANCE OF PAGE INTENTIONALLY LEFT BLANK.]

                                      -9-
<PAGE>

      IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

TORNADO GOLD INTERNATIONAL CORP.

By:_______________________________________
      Earl W. Abbott, President and CEO

HOLDERS:

____________________________________      ____________________________________
[name]                                                  [street]

                                          ____________________________________
                                           [city, state, postal code, country]

                                          ____________________________________
                                                      [fax number]

2.5(b)      Copy of Notice.

________________________
________________________
Attention:____________________
Fax number:___________________

____________________________________      ____________________________________
[name]                                                  [street]

                                          ____________________________________
                                           [city, state, postal code, country]

                                          ____________________________________
                                                      [fax number]

________________________
________________________
Attention:____________________
Fax number:___________________

                                      -10THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR QUALIFIED UNDER ANY
APPLICABLE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND QUALIFICATION UNDER SUCH STATE SECURITIES
LAWS OR AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE COMPANY THAT
SUCH REGISTRATION AND/OR QUALIFICATION IS NOT REQUIRED.

                        TORNADO GOLD INTERNATIONAL CORP.

              SPECIAL WARRANT TO ACQUIRE SHARES OF COMMON STOCK

No. SW-00001                                                       July 14, 2006

                                           5,000,000 Special Warrants to Acquire
                                                          Shares of Common Stock

      FOR VALUE RECEIVED, Tornado Gold International Corp., a Nevada corporation
with its principal office located at 8600 Technology Way, Suite 118, Reno,
Nevada 89521 (the "Company"), hereby certifies that Credit Suisse Client Nominee
(UK) Limited, its successor or permitted assigns (the "Holder"), holds that
number of Special Warrants set forth above and is entitled, subject to the
provisions of this Special Warrant certificate, to acquire from the Company, at
the times specified herein and without payment of additional consideration, one
(1) fully paid and non-assessable share of Common Stock of the Company, par
value $.001 per share (the "Common Stock"), for each Special Warrant, subject to
adjustments as set forth herein.

      Notwithstanding anything contained herein to the contrary, the Warrant
represented by this certificate shall not be exercisable by the Holder, in whole
or in part, and the Company shall not give effect to any such exercise of the
Warrant, if, after giving effect to such exercise, the Holder, together with any
Affiliate of the Holder (including any person or company acting jointly or in
concert with the Holder) would in the aggregate beneficially own, or exercise
control or direction over that number of voting securities of the Company which
is 9.99% or greater of the total issued and outstanding voting securities of the
Company, immediately after giving effect to such exercise; provided, however,
that upon a holder of this Warrant providing the Company with sixty-one (61)
days notice (the "Waiver Notice") that such Holder would like to waive this
paragraph with regard to any or all shares of Common Stock issuable upon
exercise of this Warrant, this paragraph will be of no force or effect with
regard to all or a portion of the Warrant referenced in the Waiver Notice. For
the purposes of this paragraph, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as
amended.

      1. Definitions. (a) The following terms, as used herein, have the
following meanings:

      "Affiliate" shall have the meaning given to such term in Rule 12b-2
promulgated under the Securities and Exchange Act of 1934, as amended.

      "Business Day" means any day except a Saturday, Sunday or other day on
which commercial banks in the City of Reno, Nevada, are authorized by law to
close.

      "Common Stock" means the Common Stock, par value $.001 per share, of the
Company.

<PAGE>

      "Duly Endorsed" means duly endorsed in blank by the Person or Persons in
which whose name a stock certificate is registered or accompanied by a duly
executed stock assignment separate from the certificate with the signatures(s)
thereon guaranteed by a commercial bank or trust company or a member of a
national securities exchange act or of the National Association of Securities
Dealers, Inc.

      "Exercise Date" means the date a Warrant Exercise Notice is delivered to
the Company in the manner provided in Section 8 below.

      "Expiry Date" is July 14, 2016.

      "Initial Warrant Exercise Date" means the date hereof.

      "Person" means an individual, partnership, corporation, trust, joint stock
company, association, joint venture, or any other entity or organization,
including a government or political subdivision or an agency or instrumentality
thereof.

      "Principal Market" means the National Association of Securities Dealers
electronic over-the-counter bulletin board ("OTCBB"), or if not quoted on the
OTCBB, the primary securities exchanges or market on which such security may at
the time be listed or quoted for trading.

      "Securities Act" means the Securities Act of 1933, as amended.

      "Subscription Agreement" means the Subscription Agreement dated July 13,
2006, between the original holder of this Warrant and the Company.

      "Warrant Shares" means the shares of Common Stock deliverable upon
exercise of this Warrant, as adjusted from time to time.

      2. Exercise of Special Warrant.

            (a) Voluntary Exercise. The Holder is entitled to exercise these
Special Warrants in whole or in part at any time on or after the Initial Warrant
Exercise Date until the Expiration Date. To exercise this Warrant, the Holder
shall execute and deliver to the Company a Warrant Exercise Notice substantially
in the form annexed hereto. No earlier than five (5) days after delivery of the
Warrant Exercise Notice, the Holder shall deliver to the Company this Warrant
Certificate, including the Warrant Exercise Subscription Form forming a part
hereof duly executed by the Holder, together with payment of the applicable
Exercise Price. Upon such delivery and payment, the Holder shall be deemed to be
the holder of record of the Warrant Shares subject to such exercise,
notwithstanding that the stock transfer books of the Company shall then be
closed or that certificates representing such Warrant Shares shall not then be
actually delivered to the Holder.

            (b) Mandatory Exercise. If any Special Warrants have not been
voluntarily exercised by the holders thereof prior to the Expiry Time, then such
Special Warrants will be deemed to have been exercised, delivered and
surrendered by the holder thereof immediately prior to the Expiry Time without
any further action on the part of the holder. The Company shall issue Warrant
Shares upon such deemed exercise without notice or surrender of this Warrant
Certificate.

            (c) If the Holder exercises this Warrant in part, this Warrant
Certificate shall be surrendered by the Holder to the Company and a new Warrant
Certificate of the same tenor and for the unexercised number of Warrant Shares
shall be executed by the Company. The Company shall register the new Warrant
Certificate in the name of the Holder or in such name or names of its transferee
pursuant to paragraph 5 hereof as may be directed in writing by the Holder and
deliver the new Warrant Certificate to the Person or Persons entitled to receive
the same.

                                      -2-
<PAGE>

            (d) In the event of any exercise of the rights represented by these
Special Warrants in accordance with and subject to the terms and conditions
hereof, certificates for the shares of Warrant Shares so purchased shall be
dated the date of such exercise and delivered to the Holder hereof within a
reasonable time, not exceeding three (3) Trading Days after such exercise (the
"Delivery Date").

            (e) Upon surrender of this Warrant Certificate in conformity with
the foregoing provisions, the Company shall transfer to the Holder of this
Warrant Certificate appropriate evidence of ownership of the shares of Warrant
Shares or other securities or property to which the Holder is entitled,
registered or otherwise placed in, or payable to the order of, the name or names
of the Holder or such transferee as may be directed in writing by the Holder,
and shall deliver such evidence of ownership and any other securities or
property to the Person or Persons entitled to receive the same.

        3. Restrictive Legend and Registration.

            (a) Certificates representing shares of Common Stock issued pursuant
to this Warrant shall bear a legend substantially in the form of the legend set
forth on the first page of this Warrant Certificate to the extent that and for
so long as such legend is required pursuant to applicable law.

            (b) The Company agrees to reissue these Special Warrants or
certificates representing any of the Warrant Shares, without the legend if at
such time, prior to making any transfer of any such securities, the Holder shall
give written notice to the Company upon the occurrence of: (a) either (i) the
Company has received an opinion of counsel reasonably satisfactory to the
Company, to the effect that the registration of such securities under the
Securities Act is not required in connection with such proposed transfer, (ii) a
registration statement under the Securities Act covering such proposed
disposition has been filed by the Company with the Securities and Exchange
Commission and has become effective under the Securities Act, (iii) the Company
has received other evidence reasonably satisfactory to the Company that such
registration and qualification under the Securities Act and state securities
laws are not required, or (iv) the Holder provides the Company with reasonable
assurances that such security can be sold pursuant to Rule 144 under the
Securities Act; and (b) either (i) the Company has received an opinion of
counsel reasonably satisfactory to the Company, to the effect that registration
or qualification under the securities or "blue sky" laws of any state is not
required in connection with such proposed disposition, or (ii) compliance with
applicable state securities or "blue sky" laws has been effected or a valid
exemption exists with respect thereto. The Company will respond to any such
notice from a holder within three (3) business days. In the case of any proposed
transfer under this Section 3(b), the Company will use reasonable efforts to
comply with any such applicable state securities or "blue sky" laws, but shall
in no event be required, (x) to qualify to do business in any state where it is
not then qualified, (y) to take any action that would subject it to tax or to
the general service of process in any state where it is not then subject, or (z)
to comply with state securities or "blue sky" laws of any state for which
registration by coordination is unavailable to the Company. The restrictions on
transfer contained in this Section 3(b) shall be in addition to, and not by way
of limitation of, any other restrictions on transfer contained in any other
section of this Warrant Certificate.

        4. Covenants of the Company.

                                      -3-
<PAGE>

            (a) The Company hereby agrees that at all times there shall be
reserved for issuance and delivery upon exercise of these Special Warrants such
number of its authorized but unissued shares of Common Stock or other securities
of the Company from time to time issuable upon exercise of these Special
Warrants as will be sufficient to permit the exercise in full of these Special
Warrants. All such shares shall be duly authorized and, when issued upon such
exercise, shall be validly issued, fully paid and non-assessable, free and clear
of all liens, security interests, charges and other encumbrances or restrictions
on sale and free and clear of all preemptive rights.

            (b) The Company shall not by any action, including, without
limitation, amending its articles of incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of these Special Warrants, but
will at all times in good faith assist in the carrying out of all such terms and
in the taking of all such actions as may be necessary or appropriate to protect
the rights of Holder against impairment. Without limiting the generality of the
foregoing, the Company will (i) take all such action as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid
and nonassessable shares of Common Stock upon the exercise of these Special
Warrants and (ii) use its best efforts to obtain all such authorizations,
exemptions or consents from any public regulatory body having jurisdiction
thereof as may be necessary to enable the Company to perform its obligations
under these Special Warrants.

            (c) Before taking any action which would result in an adjustment in
the number of shares of Common Stock for which these Special Warrants are
exercisable or in the Exercise Price, the Company shall obtain all such
authorizations or exemptions thereof, or consents thereto, as may be necessary
from any public regulatory body or bodies having jurisdiction thereof.

            (d) The Company covenants that during the period these Special
Warrants is outstanding, it will use its best efforts to comply with any and all
reporting obligations under the Securities Exchange Act of 1934, as amended.

            (e) The Company will take all such reasonable action as may be
necessary (i) to maintain a Principal Market for its Common Shares in the United
States and (ii) to assure that such Warrant Stock may be issued as provided
herein without violation of any applicable law or regulation, or of any
requirements of the Principal Market upon which the Common Stock may be listed.

            (f) The Company shall preserve and maintain its corporate existence
and all licenses and permits that are material to the proper conduct of its
business and it shall refrain from changing its name.

            (g) The Company will not close its shareholder books or records in
any manner which prevents the timely exercise of these Special Warrants.

        5. Exchange, Transfer or Assignment of Warrant; Registration

            (a) Each taker and holder of this Warrant Certificate by taking or
holding the same, consents and agrees that the registered holder hereof may be
treated by the Company and all other persons dealing with this Warrant
Certificate as the absolute owner hereof for any purpose and as the person
entitled to exercise the rights represented hereby.

                                      -4-
<PAGE>

            (b) The Holder agrees that it will not transfer, hypothecate, sell,
assign, pledge or encumber any Special Warrants or Warrant Shares unless such
securities are registered under the Securities Act and registered or qualified
under any applicable state securities laws or such transfer is effected pursuant
to an available exemption from registration.

            (c) The Holder of these Special Warrants has been granted certain
registration rights by the Company. The registration rights are set forth in
that certain Subscription Agreement; the terms of the Subscription Agreement are
incorporated herein by this reference. A copy of the Subscription Agreement is
available for inspection at the principal offices of the Company upon written
request.

      6. Anti-Dilution Provisions. The Exercise Price in effect at any time and
the number and kind of securities purchasable upon the exercise of these Special
Warrants shall be subject to adjustment from time to time upon the happening of
certain events as follows:

            (a) In case the Company shall (i) declare a dividend or make a
distribution on its outstanding shares of Common Stock in shares of Common
Stock, (ii) subdivide or reclassify its outstanding shares of Common Stock into
a greater number of shares, or (iii) combine or reclassify its outstanding
shares of Common Stock into a smaller number of shares, the number of Warrant
Shares shall be proportionately adjusted to reflect such dividend, distribution,
subdivision, reclassification or combination. For example, if the Company
declares a 2-for-1 stock split and the number of Warrant Shares immediately
prior to such event was 200,000, the number of Warrant Shares immediately after
such event would be 400,000. Such adjustment shall be made successively whenever
any event listed above shall occur.

            (b) In the event that at any time, as a result of an adjustment made
pursuant to this Section 6, the Holder of these Special Warrants thereafter
shall become entitled to receive any shares of the Company, other than Common
Stock, thereafter the number of such other shares so receivable upon exercise of
these Special Warrants shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with
respect to the Common Stock contained in this Section 6.

            (c) Irrespective of any adjustments in the Exercise Price or the
number or kind of shares purchasable upon exercise of these Special Warrants,
Special Warrants theretofore or thereafter issued may continue to express the
same number and kind of shares as are stated in this Warrant Certificate.

            (d) In case at any time or from time to time conditions arise by
reasons of action taken by the Company, which in the reasonable opinion of its
Board of Directors, are not adequately covered by the provisions of Section 6
hereof, and which might materially and adversely affect the exercise rights of
the Holder hereof, the Board of Directors shall appoint a firm of independent
certified public accountants, which may be the firm regularly retained by the
Company, which will give their opinion upon the adjustment, if any, on a basis
consistent with the standards established in the other provisions of Section 6
necessary with respect to the number of shares of Common Stock for which these
Special Warrants are exercisable, so as to preserve, without dilution, the
exercise rights of the Holder. Upon receipt of such opinion, the Board of
Directors shall forthwith make the adjustments described therein.

      7. Loss or Destruction of Special Warrant. Upon receipt by the Company of
evidence satisfactory to it (in the exercise of its reasonable discretion) of
the loss, theft, destruction or mutilation of this Warrant Certificate, and (in
the case of loss, theft or destruction) of reasonably satisfactory
indemnification, and upon surrender and cancellation of this Warrant
Certificate, if mutilated, the Company shall execute and deliver a new Warrant
Certificate of like tenor and date.

                                      -5-
<PAGE>

      8. Notices. Any notice, demand or delivery authorized by this Warrant
Certificate shall be in writing and shall be given to the Holder or the Company,
as the case may be, at its address (or fax number) set forth below, or such
other address (or fax number) as shall have been furnished to the party giving
or making such notice, demand or delivery:

                  If to the Company:

                         Tornado Gold International Corp.
                         Attention: Chief Executive Officer
                         8600 Technology Way, Suite 118
                         Reno, Nevada  89521
                         Fax number: 775-853-8921

                         with a copy to:
                         (which shall not constitute notice)

                         Bryan Cave LLP
                         Attention: Randolf W. Katz
                         1900 Main Street, Suite 700
                         Irvine, California 92614
                         Fax number: 949-223-7100

                  If to the Holder:

                        RAB Special Situations (Master) Fund Limited
                        RAB Special Situations LP
                        c/o RAB Capital Limited
                        No. 1 Adam Street
                        London W2CN 6LE
                        United Kingdom

                        with a copy to:
                        (which shall not constitute notice)

                        Dorsey & Whitney LLP
                        Attention:  Kenneth Sam
                        Republic Plaza Building, Suite 4700
                        370 Seventeenth Street
                        Denver, Colorado 80202-5647
                        Fax number:  303-629-3450

Each such notice, demand or delivery shall be effective (i) if given by
telecopy, when such telecopy is transmitted to the telecopy number specified
herein and the intended recipient confirms the receipt of such telecopy or (ii)
if given by any other means, when received at the address specified herein.

      9. Rights of the Holder. Prior to exercise of any of these Special
Warrants, the Holder shall not, by virtue hereof, be entitled to any rights of a
shareholder of the Company, including, without limitation, the right to vote, to
receive dividends or other distributions, to exercise any preemptive right or
any notice of any proceedings of the Company except as may be specifically
provided for herein.

                                      -6-
<PAGE>

      10. GOVERNING LAW. THIS WARRANT CERTIFICATE AND ALL RIGHTS ARISING
HEREUNDER SHALL BE CONSTRUED AND DETERMINED IN ACCORDANCE WITH THE INTERNAL LAWS
OF THE STATE OF NEVADA, AND THE PERFORMANCE THEREOF SHALL BE GOVERNED AND
ENFORCED IN ACCORDANCE WITH SUCH LAWS.

      11. Amendments; Waivers. Any provision of this Warrant Certificate may be
amended or waived if, and only if, such amendment or waiver is in writing and
signed, bin the case of an amendment, by the Holder and the Company, or in the
case of a waiver, by the party against whom the waiver is to be effective. No
failure or delay by either party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. The rights and remedies herein provided
shall be cumulative and not exclusive of any rights or remedies provided by law.

      12. Company Reorganization. In the even of any sale of substantially all
the assets of the Company or any reorganization, reclassification, merger or
consolidation of the Company where the Company is not the surviving entity, then
as a condition to the Company entering into such transaction, the entity
acquiring such assets or the surviving entity, as the case may be, shall agree
to assume the Company's obligations hereunder.

                                      -7-
<PAGE>

      IN WITNESS WHEREOF, the Company has duly caused these Special Warrants to
be signed by its duly authorized officer and to be dated as of July 14, 2006.

                                    TORNADO GOLD INTERNATIONAL CORP.

                                    By:
                                          ------------------------------------
                                          Earl Abbott, Chief Executive Officer

                                      -8-
<PAGE>

                          SPECIAL WARRANT EXERCISE FORM

              (To be delivered prior to exercise of the Warrant
           by execution of the Warrant Exercise Subscription Form)

To:  Tornado Gold International Corp.

      The undersigned hereby tenders for exercise ___________ Special Warrants
to acquire shares of Common Stock, par value $.0001 per share, of Tornado Gold
International Corp.

Date:____________________

                                    --------------------------------
                                    (Signature of Owner)

                                    --------------------------------
                                    (Street Address)

                                    --------------------------------
                                    (City) (State) (Zip Code)

Securities to be issued to:
                           ---------------------------------------------------

Please insert social security or identifying number:
                                                    --------------------------

Name:
     -------------------------------------------------------------------------

Street Address:
               ---------------------------------------------------------------

City, State and Zip Code:
                         -----------------------------------------------------

Any unexercised portion of the Special Warrants evidenced by the within Warrant
Certificate to be issued to:
                            --------------------------------------------------

Please insert social security or identifying number:

Name:
     -------------------------------------------------------------------------

Street Address:
               ---------------------------------------------------------------

City, State and Zip Code:
                         -----------------------------------------------------

                                      -9-
<PAGE>

                         SPECIAL WARRANT ASSIGNMENT FORM

                              Dated ___________ ___, _____

      FOR VALUE RECEIVED, _______________________ hereby sells, assigns and
transfers unto                                         (the "Assignee"),
              ----------------------------------------
               (please type or print in block letters)

------------------------------------------------------------------------------
(insert address)

its right to purchase up to shares of Common Stock represented by this Warrant
Certificate and does hereby irrevocably constitute and appoint
_______________________ Attorney, to transfer the same on the books of the
Company, with full power of substitution in the premises.

                                    Signature:______________________________

                                      -10-
<PAGE>

Holder Information

--------------------------------------------------------------------------------
Holder Information                            Registration Information

 RAB Special Situations (Master) Fund     Registration of the certificates
               Limited                    representing the Securities should be
         c/o RAB Capital Plc              made exactly as follows (if space is
            1 Adam Street                 insufficient, attach a list):
           London WC2N 6LE                Credit Suisse Client Nominees (UK)
            United Kingdom                              Limited
        Phone: 44 20 7389 7000                     One Cabot Square
         Fax: 44 20 7389 7057                   London, United Kingdom
       email: legal@rabcap.com                          E14 4QJ
--------------------------------------------------------------------------------

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

                            Delivery of Certificates

      The certificates representing the Securities are to be delivered as
follows (if different from the address(es) set forth above):

                               -------------------------------------------------
                                                 Martin Feast
Street Address:                           Prime Brokerage Settlements
City, State, Postal/Zip Code:                 CSFB (Europe) Ltd.
Contact Name/Phone No.:                        One Cabot Square
                                                London E14 4QJ
                                                United Kingdom
                                            Phone: 44 20 7888 1187
                                             Fax: 44 20 7458 8245
--------------------------------------------------------------------------------
Notation:                        RAB Special Situations (Master) Fund Limited
--------------------------------------------------------------------------------

Copy of Notices to:

Dorsey & Whitney LLP
4700 Republic Plaza
370 Seventeenth St.
Denver, Colorado 80202
Attention:  Kenneth G. Sam
Fax number:  303-629-3450

                                      -11-

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