Document:

EXECUTION
COPY

 

 

 

CONVERTIBLE
PREFERRED NOTE PURCHASE

AND INVESTMENT AGREEMENT

 

among

 

CRH
MEZZANINE PTE. LTD.

 

and

 

CRH
FUNDING II PTE. LTD.

 

and

 

GOLD
TORRENT, INC.

 

February
9, 2017

 

 

 

    	 	 	 

    

    

 

TABLE
OF CONTENTS

 

	SECTION 1.	 	PURCHASE
    AND SALE OF SECURITIES.	2
	1.1.	 	Total
    Commitment.	2
	1.2.	 	Issue
    and Sale.	3
	1.3.	 	Closing.	3
	1.4.	 	Company
    Closing Deliveries.	3
	1.5.	 	Investor
    Closing Deliveries.	4
	SECTION 2.	 	REPRESENTATIONS
    AND WARRANTIES OF THE COMPANY.	4
	2.1.	 	Corporate
    Organization.	4
	2.2.	 	Subsidiaries.	5
	2.3.	 	Capitalization.	5
	2.4.	 	Corporate
    Proceedings, etc.	6
	2.5.	 	Consents
    and Approvals.	7
	2.6.	 	Absence
    of Defaults, Conflicts, etc.	7
	2.7.	 	Financial
    Statements.	7
	2.8.	 	Absence
    of Certain Developments.	7
	2.9.	 	Compliance
    with Law.	8
	2.10.	 	Litigation.	9
	2.11.	 	Material
    Contracts.	10
	2.12.	 	Absence
    of Undisclosed Liabilities.	10
	2.13.	 	Employees.	11
	2.14.	 	Tax
    Matters.	12
	2.15.	 	Employee
    Benefit Plans.	12
	2.16.	 	Intellectual
    Property.	12
	2.17.	 	Title
    to Personal Property.	13
	2.18.	 	Condition
    of Properties.	13
	2.19.	 	Insurance.	13
	2.20.	 	Transactions
    with Related Parties.	13
	2.21.	 	Registration
    Rights.	13
	2.22.	 	SEC
    Reporting and Corporate Governance.	14
	2.23.	 	Private
    Offering.	15
	2.24.	 	Brokerage.	16
	2.25.	 	Illegal
    or Unauthorized Payments; Political Contributions.	16
	2.26.	 	Minute
    Books.	17
	2.27.	 	Real
    Property.	17
	2.28.	 	Mining
    Operations.	17
	2.29.	 	Mining
    Rights.	18
	2.30.	 	Mining
    Practice.	19
	2.31.	 	Technical
    Reports.	19
	2.32.	 	Environmental
    and Safety Laws.	19
	2.33.	 	Material
    Facts.	20
	2.34.	 	Interest
    in Competitors.	21

 

    	 	 	 

    

    

 

	SECTION 3.	 	REPRESENTATIONS
    AND WARRANTIES OF EACH INVESTOR	21
	SECTION 4.	 	ADDITIONAL
    COVENANTS OF THE PARTIES	22
	4.1.	 	Resale
    of Securities.	22
	4.2.	 	Covenants
    Pending Closing.	23
	4.3.	 	Exchange
    Act Filings.	23
	4.4.	 	Securities
    Laws Filings..	24
	4.5.	 	Further
    Assurance.	24
	SECTION 5.	 	INVESTOR’S
    CLOSING CONDITIONS	24
	5.1.	 	Closing.	24
	SECTION 6.	 	COMPANY
    CLOSING CONDITIONS	26
	6.1.	 	Representations
    and Warranties.	26
	6.2.	 	Compliance
    with Agreements.	26
	6.3.	 	Officer’s
    Certificate.	26
	6.4.	 	Injunction.	26
	SECTION 7.	 	COVENANTS	27
	7.1.	 	Use
    of Proceeds.	27
	7.2.	 	Lost,
    etc. Certificates Evidencing Shares (or shares of Common Stock); Exchange.	27
	7.3.	 	Reservation
    of Common Stock.	27
	SECTION 8.	 	INTERPRETATION
    OF THIS AGREEMENT	27
	8.1.	 	Terms
    Defined.	27
	8.2.	 	Rules
    of Construction.	32
	8.3.	 	Accounting
    Principles.	32
	8.4.	 	Directly
    or Indirectly.	33
	8.5.	 	Governing
    Law.	33
	8.6.	 	Paragraph
    and Section Headings.	33
	SECTION 9.	 	MISCELLANEOUS	33
	9.1.	 	Notices.	33
	9.2.	 	Expenses
    and Taxes.	34
	9.3.	 	Reproduction
    of Documents.	34
	9.4.	 	Survival;
    Indemnification.	35
	9.5.	 	Public
    Communications	36
	9.6.	 	Successors
    and Assigns; No Third Party Beneficiaries.	36
	9.7.	 	Entire
    Agreement; Amendment and Waiver.	36
	9.8.	 	Severability.	37
	9.9.	 	Limitation
    on Enforcement of Remedies.	37
	9.10.	 	WAIVER
    OF JURY TRIAL.	37
	9.11.	 	Counterparts.	37

 

    	 	 	 

    

    

 

Exhibits

 

EXHIBIT
A – JV Agreement

 

EXHIBIT
B – Preferred Note

 

EXHIBIT
C – Security Agreement

 

EXHIBIT
D – Streaming Agreement

 

EXHIBIT
E – JV Security Agreement

 

EXHIBIT
F – Guarantee

 

EXHIBIT
G – Warrants

 

EXHIBIT
H – Investor Rights Agreement

 

EXHIBIT
I – Indemnity Agreement

 

EXHIBIT
J – Certificate of Officer

 

EXHIBIT
K – Secretary’s Certificate

 

EXHIBIT
L – Investor Certificate

 

EXHIBIT
M – Use of Proceeds Budget

 

    	 	 	 

    

    

 

CONVERTIBLE
PREFERRED NOTE PURCHASE

AND INVESTMENT AGREEMENT

 

THIS
CONVERTIBLE PREFERRED NOTE PURCHASE AND INVESTMENT AGREEMENT dated as of February 9, 2017, (this “Agreement”),
is by and among GOLD TORRENT, INC., a Nevada corporation (the “Company”); CRH MEZZANINE PTE. LTD., a Singapore
private limited company (the “Preferred Note Investor”); CRH FUNDING II PTE. LTD., a Singapore private limited
company (the “Stream Investor”); (collectively, the “Investors”, and individually, an “Investor”).
Unless otherwise defined, capitalized terms used in this Agreement are defined in Section 8.1.

 

WHEREAS,
the Company and each of the Investors are each executing and delivering this Agreement in reliance upon the exemption from registration
afforded by Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D as promulgated by the SEC under the Securities
Act (“Regulation D”);

 

WHEREAS,
the Company is party to an Exploration and Option to Enter Joint Venture Agreement with Miranda U.S.A., Inc. (“Miranda”),
under which the Company owns a seventy percent (70%) undivided interest in the Lucky Shot Project (as defined herein) and concurrent
with the closing of the funding of the Preferred Debt Transaction will execute and deliver a limited liability company operating
agreement, in substantially the form attached as Exhibit A (the “JV Agreement”) with Miranda to form
Alaska Gold Torrent LLC, a joint venture Nevada limited liability company (“JV Co”).

 

WHEREAS,
under the terms of this Agreement the Company intends to raise an aggregate of up to $13,250,000 to fund development of the Lucky
Shot Project by:

 

	 	(a)	borrowing
    $2,000,000 from the Preferred Note Investor (the “Preferred Debt Transaction”), which debt will be evidenced
    by convertible preferred note(s), in substantially the form attached as Exhibit B (each, a “Preferred Note”),
    which will convert into 15% of the shares of common stock of the Company on a post-money basis on the earlier of: (i) a Canadian
    Going Public Transaction or (ii) funding of the Streaming Arrangement and following an equity raise by the Company of $5,000,000
    or more (of which $2,000,000 will be the conversion of the Preferred Notes). The obligations under the Preferred Notes will
    be secured by a first priority security interest in all of the assets of the Company pursuant to the terms of a security and
    pledge agreement, in substantially the form attached as Exhibit C (the “Security Agreement”); and
	 	 	 
	 	(b)	entering into a
    Gold and Silver Payment Agreement among the Stream Investor, the Company, Miranda and JV Co, in substantially the form attached
    as Exhibit D (the “Streaming Agreement”), under which the Stream Investor will invest up to US$11,250,000
    as follows (the “Streaming Arrangement”):

 

	 	(i)	US$6,500,000
    upon satisfaction of the Tranche 1 Streaming Conditions (as defined herein)(the “Tranche 1 Funding”); and
	 	 	 
	 	(ii)	US$4,750,000 upon
    satisfaction of the Tranche 2 Streaming Conditions (as defined herein)(the “Tranche 2 Funding”).

 

    	 	 	 

    

    

 

The
obligations of JV Co under the Streaming Agreement will be secured by a deed of trust, in substantially the form attached as Exhibit
E (the “JV Security Agreement”) and guaranteed by the Company, in substantially the form attached as Exhibit
F (the “Guarantee”).

 

WHEREAS,
the Company and the Investors have agreed in consideration for the commitments under this Agreement and subject to (a) successful
funding of the Preferred Debt Transaction, and (b) execution and delivery of the Streaming Agreement, the Company will issue the
Preferred Note Investor or its designee share purchase warrants, in substantially the form attached as Exhibit G (the “Warrants”),
exercisable to acquire two million shares of common stock of the Company at an exercise price of US$0.50 per share for a period
of three (3) years from the date of issuance; and

 

WHEREAS,
contemporaneously with the consummation of the Preferred Debt Transaction and the execution and delivery of the Streaming Agreement,
the Company, the Preferred Note Investor, and/or the other Parties, as applicable, will enter into (a) an Investor Rights Agreement,
in substantially the form attached as Exhibit H (the “Investor Rights Agreement”) and (b) an Indemnity
Agreement, in substantially the form attached as Exhibit I (the “Indemnity Agreement”).

 

NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants and agreements set forth herein and for other good and valuable consideration,
the receipt and sufficiency of which hereby are acknowledged, the Company and the Investors agree as follows:

 

SECTION
1.PURCHASE AND SALE OF SECURITIES.

 

1.1.       Total
Commitment.

 

Subject
to the terms and conditions herein and in reliance upon the applicable representations, warranties, conditions and covenants contained
herein, the parties hereby agree as follows: (a) the Preferred Note Investor will loan Two Million Dollars (US$2,000,000) to the
Company in the Preferred Debt Transaction and (b) the Stream Investor will advance JV Co up to Eleven Million Two Hundred Fifty
Thousand Dollars (US$11,250,000) under the terms and conditions set forth in the Stream Agreement, for an aggregate investment
of up to Thirteen Million Two Hundred Fifty Thousand Dollars (US$13,250,000) (the “Total Commitment”). The
Total Commitment will be funded as follows:

 

(a)       subject
to the satisfaction of the conditions set forth in Section 5.1, the Preferred Note Investor will loan Two Million Dollars
(US$2,000,000) to the Company (the “Closing”);

 

(b)       upon
execution of the Streaming Agreement and subject to the satisfaction of the conditions set forth therein, the Stream Investor
will advance JV Co up to US$6,500,000 upon satisfaction of the conditions set forth in the Streaming Agreement (the “Tranche
1 Streaming Conditions”).

 

    	-2- 

    

    

 

(c)       subject
to the satisfaction of the conditions set forth in the Streaming Agreement, the Stream Investor will advance JV Co up to US$4,750,000
upon satisfaction of the conditions set forth in the Streaming Agreement (the “Tranche 2 Streaming Conditions”).

 

The
parties hereto hereby agree that the Total Commitment will be funded by the Preferred Note Investor with respect to the Preferred
Debt Transaction and the Stream Investor with respect to the Streaming Agreement. The Company and the Preferred Note Investor
agree that the proceeds from the Preferred Note Transaction shall be used in accordance with the amounts and schedule set forth
in the Use of Proceeds Budget attached hereto as Exhibit M or an amended and revised budget that has been duly approved and adopted
by all of the members of the Board of Directors.

 

1.2.       Issue
and Sale.

 

At
the Closing, the Company shall:

 

(a)       borrow
from the Preferred Note Investor the principal amount of Two Million Dollars (US$2,000,000) (the “Loan Amount”),
in accordance with Section 1.1, and deliver the Preferred Note in the Loan Amount to the Preferred Note Investor; the Preferred
Note shall be duly registered and originally executed, against delivery by the Preferred Note Investor to the Company of the Loan
Amount payable by the Preferred Note Investor by wire transfer of immediately available funds as set forth in Section 1.5(a)
hereto; and

 

(b)       issue
to the Preferred Note Investor or its designee Warrants exercisable to acquire two million (2,000,000) shares of Common Stock
of the Company at an exercise price of US$0.50 per share for a period of three (3) years from the date of issuance; provided,
that all of the conditions precedent thereto set forth shall have been fulfilled or (to the extent permitted by applicable law)
waived.

 

1.3.       Closing.

 

(a)       The
Closing will take place within three (3) Business Days of the satisfaction or waiver of the conditions to Closing set forth in
Section 5.1 (the “Closing Date”).

 

(b)       The
Closing shall take place at 10:00 am (Mountain Time) at the offices of Dorsey & Whitney LLP, 1400 Wewatta Street, Suite 400,
Denver, CO 80202 in accordance with the terms and conditions set forth herein.

 

1.4.       Company
Closing Deliveries.

 

At
the Closing, the Company will deliver or cause to be delivered to the Investor:

 

(a)       one
or more originally executed Preferred Note(s) evidencing the Loan Amount for such Closing, duly registered and executed in the
name of the Preferred Note Investor;

 

    	-3- 

    

    

 

(b)       one
or more originally executed Warrant, exercisable to acquire two million shares of Common Stock of the Company at an exercise price
of US$0.50 per share for a period of three (3) years from the date of issuance, duly registered and executed in the name of the
Preferred Note Investor or its designee; and

 

(c)       a
certificate of an officer of the Company (“Certificate of Officer”), dated as of such Closing Date, in the
form attached hereto as Exhibit J;

 

(d)       a
certificate of the Secretary of the Company, dated the Closing Date (the “Secretary’s Certificate”),
in the form attached hereto as Exhibit K;

 

(e)       opinion
letters of the Company’s legal counsel in the form attached hereto as Exhibit N; and

 

(f)       duly
executed copies of each of the documents set forth in Section 5.1(g), 5.1(h), 5.1(i), 5.1(j), 5.1(k),
5.1(m), 5.1(n), and 5.1(o) of this Agreement.

 

1.5.       Investor
Closing Deliveries.

 

At
the Closing:

 

(a)       subject
to Section 9.2(a), the Preferred Note Investor will deliver, or cause to be delivered, to the Company the Loan Amount in
respect of the Preferred Notes that the Preferred Note Investor is purchasing at Closing, in immediately available funds, by wire
transfer to an account designated in writing by the Company for such purpose at least one Business Day prior to Closing.

 

(b)       the
Preferred Note Investor will deliver, or cause to be delivered to the Company a certificate of an officer of the Investor, dated
the Closing Date (the “Investor Certificate”), in the form attached hereto as Exhibit L.

 

SECTION
2.REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The
Company represents and warrants to the Investors that, except as set forth on the correspondingly numbered section of the Disclosure
Schedule delivered to the Investors in connection herewith:

 

2.1.       Corporate
Organization.

 

(a)       The
Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada. The Company
has provided the Investors with true and complete copies of the Articles of Incorporation and Bylaws of the Company, each as amended
through the date hereof (collectively, the “Organizational Documents”). The Organizational Documents contain
all amendments through the date hereof.

 

(b)       The
Company and each of its Affiliates have all requisite corporate power and authority and have all necessary material approvals,
licenses, permits and authorizations to own its properties and to carry on its business as now conducted, including the current
Mining Activities. The Company has all requisite corporate power and authority to (i) execute and deliver the Transaction Documents
to which it is a party and to perform its obligations hereunder and thereunder; (ii) borrow the applicable Loan Amount and issue
the Preferred Note hereunder; (iii) issue the Warrants hereunder; (iv) issue the shares of the common stock of the Company, par
value $0.001 per share (the “Common Stock”), issuable upon conversion of the Preferred Note and exercise of
the Warrants, as applicable; and (v) grant the security interests and pledge its interest in JV Co as contemplated in the Security
Agreement.

 

    	-4- 

    

    

 

(c)       Schedule
2.1(c) sets forth (i) each jurisdiction in which the Company conducts business, and (ii) each jurisdiction in which the Company
is qualified to do business as a foreign corporation.

 

(d)       The
Company has filed all necessary documents to qualify to do business as a foreign corporation in, and the Company is in good standing
under the laws of each jurisdiction in which the conduct of the Company’s business as now conducted and as presently contemplated
to be conducted or the nature of the property owned requires such qualification, except where the failure to so qualify has not
had and would not be expected to have a Material Adverse Effect.

 

2.2.       Subsidiaries.

 

The
Company has no subsidiaries and does not directly or indirectly own, or hold any rights to acquire, any capital stock or any other
securities or interests in any other Person, other than JV Co.

 

2.3.       Capitalization.

 

(a)       As
of September 30, 2016, (i) the authorized capital stock of the Company consists of 200,000,000 shares of Common Stock and (ii)
the issued and outstanding shares of capital stock of the Company shall be as set forth on the capitalization table attached on
Schedule 2.3(a) hereto.

 

(b)       All
the outstanding shares of capital stock of the Company have been duly and validly issued and are fully paid and non-assessable,
and were issued in accordance with the registration or qualification requirements of the Securities Act and any relevant foreign
and state securities laws or pursuant to valid exemptions therefrom. Upon issuance, sale and delivery as contemplated by this
Agreement, shares of Common Stock issuable upon conversion of the Preferred Note and upon exercise of the Warrants, as applicable,
will be duly authorized, validly issued, fully paid and non-assessable shares of the Company, free of all preemptive or similar
rights, and entitled to the rights therein described. Upon issuance, sale and delivery as contemplated by this Agreement, the
Preferred Note will be duly authorized and shall constitute the valid and binding obligation of the Company, enforceable against
the Company in accordance with its terms, except that such enforcement may be subject to bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect relating to creditors’ rights and general principles of equity.

 

    	-5- 

    

    

 

(c)       Except
for the conversion rights which attach to the Preferred Notes and the Warrants, on the Closing Date there will be no shares of
Common Stock or any other equity security of the Company issuable upon conversion or exchange of any security of the Company nor,
except to the extent otherwise provided for in the Articles of Incorporation or the Transaction Documents, will there be any rights,
options or warrants outstanding or other agreements to acquire shares of Common Stock or any other equity security nor will the
Company be contractually obligated to purchase, redeem or otherwise acquire any of its outstanding shares. Except to the extent
otherwise provided for in the Investor Rights Agreement, no stockholder of the Company or other Person is entitled to any preemptive
or similar rights or stock options to subscribe for shares of capital stock of the Company. Except as set forth on Schedule
2.3(c), the Company has not made any representations or promises regarding equity incentives to any officer, employee, director,
consultant or any other Person.

 

(d)       Except
as contemplated in this Agreement, there are no outstanding bonds, debentures, loans, notes or other debt obligations or debt
instruments. The Company does not have any indebtedness for borrowed money and has not guaranteed any other Person’s indebtedness
for borrowed money.

 

(e)       Except
as provided in the Articles of Incorporation and the Investor Rights Agreement, there are no agreements, understandings, trusts,
or other collaborative arrangements or understandings concerning the voting of voting stock of the Company.

 

2.4.       Corporate
Proceedings, etc.

 

The
Company has authorized the execution, delivery, and performance of (i) the Transaction Documents to which it is a party and each
of the transactions and agreements contemplated hereby and thereby; (ii) the issuance and delivery of the Preferred Notes and
Warrants (and the shares of Common Stock issuable upon conversion of the Preferred Notes and/or issuable upon exercise of the
Warrants, as applicable); (iii) the Preferred Debt Transaction borrowings; (iv) the grant of the security interest in all of the
assets and pledge of the Company’s interests in JV Co; and (v) the execution and delivery of the JV Agreement and performance
thereunder. No other corporate action is necessary to authorize such execution, delivery and performance of (i) the Transaction
Documents to which it is a party and each of the transactions and agreements contemplated hereby and thereby; (ii) the issuance
and delivery of the Preferred Notes and Warrants (and the shares of Common Stock issuable upon conversion of the Preferred Notes
and/or issuable upon exercise of the Warrants, as applicable); (iii) the Preferred Debt Transaction borrowings; (iv) the grant
of the security interest in all of the assets and pledge of the Company’s interests in JV Co; and (v) the execution and
delivery of the JV Agreement and performance thereunder. When executed and delivered by the Company, each of the Transaction Documents
to which the Company is a party shall constitute the valid and binding obligation of the Company, enforceable against the Company
in accordance with its terms, except that such enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium
or other similar laws now or hereafter in effect relating to creditors’ rights and general principles of equity. The Company
has reserved for issuance and has authorized the issuance and delivery of the shares of Common Stock issuable upon conversion
of the Preferred Notes and exercise of the Warrants, as applicable.

 

    	-6- 

    

    

 

2.5.       Consents
and Approvals.

 

The
execution and delivery by the Company of the Transaction Documents to which the Company is a party, the performance by the Company
of its obligations hereunder and thereunder, the consummation by the Company of the transactions contemplated hereby and thereby
(including the sale, issuance and delivery of the Preferred Notes and Warrants (and the shares of Common Stock issuable upon conversion
of the Preferred Notes and/or issuable upon exercise of the Warrants, as applicable), do not require the Company to obtain any
consent, approval or action of, or make any filing with or give any notice to, any corporation, Person or firm, or any public,
governmental or judicial authority.

 

2.6.       Absence
of Defaults, Conflicts, etc.

 

The
execution and delivery of the Transaction Documents to which the Company is a party and the issuance and delivery of the Preferred
Notes and Warrants (and the shares of Common Stock issuable upon conversion of the Preferred Notes and/or issuable upon exercise
of the Warrants, as applicable) will not, result in a breach of any of the material terms, conditions or provisions of, or constitute
a default under, or permit the acceleration of rights under or termination of, any material indenture, mortgage, deed of trust,
note or other evidence of indebtedness, or other material agreement or contract of the Company (collectively, the “Key
Agreements and Instruments”), or the Organizational Documents, or any material rule or regulation of any court or federal,
state or foreign regulatory board or body or administrative agency having jurisdiction over the Company or its properties or businesses.
No event has occurred and no conditions exist which, upon notice or the passage of time (or both), would constitute a material
default under any such Key Agreements and Instruments or in any material license, permit or authorization to which the Company
is a party or by which it may be bound.

 

2.7.       Financial
Statements.

 

Except
as set forth in Schedule 2.7, the unaudited balance sheet of the Company as of September 30, 2016, fairly presents the
financial position of the Company as at such date, and the related statement of income, retained earnings and changes in financial
position for the fiscal period ended on such date fairly presents the results of operations and changes in financial position
of the Company for such period. All such financial statements including the schedules and notes thereto, which are collectively
referred to as the “Financial Statements”, were prepared in accordance with United States generally accepted
accounting principles (“U.S. GAAP”) applied consistently throughout the periods involved. The books and accounts
of the Company are correct in all material respects and fairly reflect all of the transactions, items of income and expense and
all assets and liabilities of the Company.

 

2.8.       Absence
of Certain Developments.

 

Except
as provided in Schedule 2.8, since September 30, 2016, none of the following have occurred with respect to the Company:

 

(a)       any
event, state of facts, circumstance, development, change or effect that, individually or in the aggregate with all other events,
states of fact, circumstances, developments, changes and effects has had or would be reasonably expected to have a Material Adverse
Effect;

 

    	-7- 

    

    

 

(b)       any
declaration, setting aside or payment of any dividend or other distribution with respect to the capital stock of the Company;

 

(c)       any
issuance of capital stock or options, warrants or rights to acquire capital stock;

 

(d)       any
material loss, destruction or damage to any property of the Company, whether or not insured;

 

(e)       any
acceleration or prepayment of any material indebtedness for borrowed money or the refunding of any such indebtedness;

 

(f)       any
labor related event, state of facts, circumstance, development, change or effect involving the Company or any material change
in the Company’s personnel or the terms and conditions of employment that would reasonably be expected to have a Material
Adverse Effect;

 

(g)       any
waiver of any valuable right or material debt, whether by contract or otherwise;

 

(h)       any
loan or extension of credit to any officer or employee of the Company;

 

(i)       any
change in accounting methods, principles or practices used in preparing the Company’s financial statements;

 

(j)       any
change or amendment to a Material Contract or arrangement by which the Company or any of its assets or properties is bound or
subject;

 

(k)       any
resignation or termination of employment of any key officer, key employee or key consultant of the Company;

 

(l)       any
acquisition or disposition of any material assets (or any contract or arrangement therefor), or any other material transaction
by the Company otherwise than for fair value in the ordinary course of business.

 

2.9.       Compliance
with Law.

 

(a)       Neither
the Company nor its Affiliates has been or is in material violation of any laws, ordinances, governmental rules or regulations
to which it is subject, including laws or regulations relating to the environment, securities laws, occupational health and safety
or money laundering, and no material expenditures are or will be required in order to cause its current operations or properties
to comply with any such laws, ordinances, governmental rules or regulations.

 

    	-8- 

    

    

 

(b)       Except
as set forth in Schedule 2.9, the Company has all material licenses, permits, franchises or other governmental authorizations
necessary to the ownership of its property or to the conduct of its businesses as now conducted and as presently contemplated
to be conducted, including with respect to the Mining Activities. The Company has not been denied any application for any such
licenses, permits, franchises or other governmental authorizations necessary to its business as now conducted and as presently
contemplated to be conducted. The Company is not in material default under any of such licenses, permits, franchises or other
governmental authorizations.

 

(c)       The
Company has not been notified, nor does it have reason to believe it will be notified, by any state agency that it is (i) ineligible
to receive additional surface or subsurface mining permits; or (ii) is under investigation to determine whether its eligibility
to receive such permits should be revoked, i.e., “permit blocked”.

 

(d)       Neither
the Company nor any Person acting on the Company’s behalf has, directly or indirectly, at any time within the past six months,
made any offer or sale of any security or solicitation of any offer to buy any security under circumstances that would eliminate
the availability of the exemption from registration under Regulation D in connection with the offer and sale by the Company of
the Preferred Notes, Warrants and the shares of Common Stock issuable upon conversion of the Preferred Notes and/or issuable upon
exercise of the Warrants, as applicable, as contemplated hereby. Assuming the accuracy of the representations and warranties of
the Investors set forth in Section 3, no registration under the Securities Act is required for the offer and sale of the
Preferred Notes or Warrants by the Company to the Investors as contemplated hereby. The sale and issuance of the Preferred Notes,
Warrants and the shares of Common Stock issuable upon conversion of the Preferred Notes and/or issuable upon exercise of the Warrants,
as applicable, hereunder does not contravene the rules and regulations of any market on which any equity securities of any the
Company is listed or quoted. The Company is not required to be registered as, and is not an Affiliate of, an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

 

(e)       No
“bad actor” disqualifying event described in Rule 506(d)(1)(i)−(viii) of Regulation D under the Securities Act,
except for an event to which Rule 506(d)(2)(ii−iv) or (d)(3) of Regulation D is applicable, applies to the Company or, to
the Company’s Knowledge, any Company Affiliate.

 

2.10.       Litigation.

 

There
are no material private or governmental (whether federal, state, local or foreign) claims, complaints, actions, suits, proceedings,
arbitrations or investigations pending or, to the Company’s Knowledge, threatened or verdicts or judgments entered (i) against
the Company and its Affiliates, their properties, or, to the Company’s Knowledge, against any key employee, independent
contractor, consultant, officer or director thereof, in each case with respect to such individual’s employment or engagement
by, service to or ownership interest in the Company or its Affiliates, or (ii) that questions the validity of this Agreement or
the Transaction Documents to which the Company is a party or the right of the Company to enter into any of such agreements, or
to consummate the transactions contemplated hereby or thereby before any court, governmental agency or tribunal, domestic or foreign.
The foregoing includes any action, suit, proceeding, claim, arbitration or investigation pending or currently threatened (or to
the Company’s Knowledge, any basis therefor) involving the prior employment of any of the Company’s current or former
employees, consultants, officers or directors, their use in connection with the Company’s business of any information or
techniques allegedly proprietary to any of its former employers or their obligations under any agreements with prior employers.
Neither the Company nor its Affiliates are subject to any order, writ, judgment, injunction, decree, determination or award of
any court or of any governmental agency or instrumentality (whether federal, state, local or foreign).

 

    	-9- 

    

    

 

2.11.       Material
Contracts.

 

Schedule
2.11 sets forth a true and complete list of the following contracts, agreements, instruments, commitments and other arrangements
to which the Company is a party: (i) employment, severance or consulting agreements; (ii) any shareholder agreement or agreement
relating to the issuance, voting, repurchase or transfer of any securities of the Company or the granting of any registrations
rights with respect thereto to which the Company is a party; (iii) loan, bridge loan, credit or security agreements; (iv) joint
venture agreements, supply and distribution agreements; (v) any contract, agreement or understanding limiting or restraining the
Company from engaging or competing in any lines of business or with any Person; (vi) any contract, agreement or arrangement granting
the other party or any third Person “most favored nation” status; (vii) any contract, agreement, understanding or
arrangement requiring payments to or by the Company of more than $75,000 in any year or $250,000 over the initial term of any
such contract, agreement, understanding or arrangement; (viii) any agreement or other arrangement for the sale or purchase of
any material assets, property or rights, or for the grant of any options or preferential rights to purchase any material assets,
property or rights; (ix) any binding contract or agreement relating to the acquisition of any securities of the Company except
stock options or other compensatory grants of securities; and (x) any other contracts, agreements, instruments, commitments and
other arrangements that are material to the Company (each, a “Material Contract”). Each Material Contract is
valid, binding and enforceable against the Company and, to the Company’s Knowledge, the other parties thereto, in accordance
with its terms, and in full force and effect on the date hereof. The Company is not in default or breach under any of the Material
Contracts, nor is any other party thereto in default or breach thereunder, nor are there facts or circumstances which have occurred
which, with or without the giving of notice or the passage of time or both, would constitute a material default or breach under
any of the Material Contracts.

 

2.12.       Absence
of Undisclosed Liabilities.

 

Except
as set forth in the Financial Statements or Schedule 2.12, the Company does not have any material debt, obligation or liability
(whether accrued, absolute, contingent, liquidated or otherwise, whether due or to become due, whether or not known to the Company)
arising out of any transaction entered into at or prior to each Closing, or any act or omission at or prior to each Closing, or
any state of facts existing at or prior to each Closing, including taxes with respect to or based upon the transactions or events
occurring at or prior to each Closing, and including unfunded past service liabilities under any pension, profit sharing or similar
plan, except current liabilities incurred and obligations under agreements entered into, in the usual and ordinary course of business,
none of which (individually or in the aggregate) are material.

 

    	-10- 

    

    

 

2.13.       Employees.

 

(a)       The
Company is in compliance in all material respects with all laws regarding employment, wages, hours, equal opportunity, collective
bargaining and payment of social security and other taxes. The Company is not engaged in any unfair labor practice or discriminatory
employment practice and no complaint of any such practice against the Company has been filed or, to the Company’s Knowledge,
threatened to be filed with or by the National Labor Relations Board, the Equal Employment Opportunity Commission or any other
administrative agency, federal or state, that regulates labor or employment practices, nor is any grievance filed or, to the Company’s
Knowledge, threatened to be filed, against the Company by any employee pursuant to any collective bargaining or other employment
agreement to which the Company is a party or is bound. The Company is in compliance in all material respects with all applicable
foreign, federal, state and local laws and regulations regarding occupational safety and health standards, and has received no
complaints from any foreign, federal, state or local agency or regulatory body alleging violations of any such laws and regulations.

 

(b)       Except
as set forth in Schedule 2.13(b), the employment of all Persons and officers employed by the Company is terminable at will
without any penalty or severance obligation of any kind on the part of the employer, except as may be required under applicable
federal, state and local laws applicable to all employees. All sums due for employee compensation and benefits and all vacation
time owing to any employees of the Company have been duly and adequately accrued on the accounting records of the Company. All
employees of the Company are either U.S. citizens or resident aliens specifically authorized to engage in employment in the United
States in accordance with all applicable laws.

 

(c)       The
Company is not aware that any of its employees is obligated under any contract (including licenses, covenants or commitments of
any nature) or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would
interfere with the use of such employee’s best efforts to promote the interests of the Company or that would conflict with
the Company’s business as proposed to be conducted.

 

(d)       The
Company is not aware that any officer, key employee or key consultant or that any group of officers, key employees or key consultants,
intends to terminate their employment with the Company, nor does the Company have a present intention to terminate the employment
of any of the foregoing.

 

(e)       Schedule
2.13(e) sets forth each of the Company’s effective employment contracts, deferred compensation agreements, bonus plans,
incentive plans, profit sharing plans, retirement agreements or other employee compensation agreements.

 

(f)       The
Company is not aware that any current or former employee of the Company is or was, as the case may be, in violation of any term
of any employment contract or any other contract or agreement relating to the relationship of such employee with the Company or
any other party because of the nature of the business conducted or proposed to be conducted by the Company.

 

    	-11- 

    

    

 

2.14.       Tax
Matters.

 

There
are no material federal, state, county, local or foreign taxes due and payable by the Company which have not been timely paid.
The provisions for taxes reflected in the Financial Statements are sufficient for the payment of all accrued and unpaid federal,
state, county, local and foreign taxes of the Company whether or not assessed or disputed as of the respective dates of such Financial
Statements. There have been no examinations or audits of any tax returns or reports of the Company by any applicable federal,
state, local or foreign governmental agency. The Company has duly and timely filed all federal, state, county, local and foreign
tax returns required to have been filed by it in accordance with all applicable legal requirements and there are in effect no
waivers of applicable statutes of limitations with respect to taxes for any year. All material taxes required to be withheld or
paid by the Company (including in connection with amounts paid or owing to any employee or other service provider, stockholder
or other third party) have been duly and timely withheld or paid, and any such withheld taxes have been duly and timely paid to
the proper government agency or taxing authority in accordance with applicable legal requirements. The Company has no material
liability for the taxes of any other Person, as a transferee or successor, by contract or otherwise. The Company is not subject
to tax in any country other than its country of incorporation or formation by virtue of having a permanent establishment or other
place of business in that country.

 

2.15.       Employee
Benefit Plans.

 

Except
as set forth in Schedule 2.15, all “employee benefit plans” (as defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended) and all other employee benefits and all other employee benefit arrangements, policies
or payroll practices, including any arrangement, policy or payroll practices providing severance pay, bonuses, commissions, profit-sharing,
savings, incentive, change of control, parachute, stock purchase, stock options, insurance, deferred compensation, or other similar
fringe or employee benefits covering former or current employees of the Company or under which the Company has any obligation
or liability (each, a “Benefit Arrangement”), are and have been maintained and administered in all material
respects in accordance with their express terms and with the requirements of applicable law. Schedule 2.15 lists all Benefit
Arrangements. The Company has provided or made available true and complete copies of all Benefit Arrangements to the Investors
prior to the date hereof. The Company’s payments to current or former employees, pursuant to the Benefit Arrangements are
and have been fully deductible under the Code.

 

2.16.       Intellectual
Property.

 

(a)       Schedule
2.16(a) sets forth a complete and current list of registrations, patents or applications, licenses or other agreements pertaining
to the intellectual property that is material to the Company’s business. The Company has the right to use all of the material
intellectual property used by it in connection with its businesses, and such intellectual property rights are all those necessary
to the conduct of the business as now conducted and presently contemplated. The Company is in compliance in all material respects
with all contractual obligations relating to such of the intellectual property as used pursuant to license or other agreement.
There are no conflicts with or infringements of any intellectual property by any third party. There is no claim, suit, action
or proceeding pending or, to the Company’s Knowledge, threatened against the Company: (i) alleging any such conflict or
infringement with any third party’s proprietary rights; or (ii) challenging the Company’s ownership or use of, or
the validity or enforceability of any intellectual property; nor is there any legitimate basis for any such claim.

 

    	-12- 

    

    

 

2.17.       Title
to Personal Property.

 

The
Company has good and marketable title to the material tangible personal property owned by the Company, in each case subject to
no mortgage, pledge, lien, security interest, lease, encumbrance or charge, and (ii) with respect to the material tangible personal
property it leases, the Company is in compliance in all material respects with the applicable lease and holds a valid leasehold
interest free of any liens, security interest, claims or encumbrances.

 

2.18.       Condition
of Properties.

 

All
material facilities, machinery, equipment, fixtures, vehicles and other properties owned, leased or used by the Company are in
good operating condition and repair, are reasonably fit and usable for the purposes for which they are being used and are presently
contemplated to be used, and are adequate and sufficient for the Company’s business as now conducted and as presently contemplated
to be conducted.

 

2.19.       Insurance.

 

The
Company and its respective properties are insured in such amounts, against such losses and with such insurers as are customary
when considered in light of the nature of the properties and businesses of the Company as now conducted and as presently contemplated
to be conducted. Schedule 2.19 sets forth a true and complete listing of the insurance policies of the Company as in effect
on the date hereof, including in each case the applicable coverage limits, deductibles and the policy expiration dates. No notice
of any termination or threatened termination of any of such policies has been received and such policies are in full force and
effect.

 

2.20.       Transactions
with Related Parties.

 

Except
as set forth on Schedule 2.20, (i) the Company is not party to any agreement with any of the Company’s directors,
officers or shareholders or any Affiliate or family member of any of the foregoing and (ii) the Company does not employ as an
employee or engage as a consultant any family member of any of the Company’s directors, officers or shareholders. Except
as set forth in the Investor Rights Agreement, to the Company’s Knowledge, there exist no agreements among shareholders
of the Company to act in concert with respect to their voting or holding of Company securities.

 

2.21.       Registration
Rights.

 

As
of the date hereof and except as provided in the Investor Rights Agreement, the Company will not, as of each Closing Date, be
under any obligation to register any of its presently outstanding securities (or any of its securities which may hereafter be
issued) under the Securities Act or any other securities laws.

 

    	-13- 

    

    

 

2.22.       SEC
Reporting and Corporate Governance.

 

(a)       Exchange
Act Registration. The Company’s class of Common Stock is registered pursuant to Section 12(g) of the Exchange Act, the
Common Stock is quoted for trading on the OTCQB, and the Company has taken no action designed to, or likely to have the effect
of, terminating the registration of the Common Stock under the Exchange Act, or ending quotations of the Common Shares on the
OTCQB. The Company has not received any notification that the SEC is contemplating terminating the Company’s Exchange Act
registration or that the OTC Markets Group, Inc. is contemplating terminating its quotation or listing on the OTCQB.

 

(b)       Exchange
Act Reporting. The Corporation has filed in a timely manner all reports required to be filed pursuant to Sections 13(a), 13(e),
14 and 15(d) of the Exchange Act during the preceding twelve (12) months (collectively, the “SEC Reports”).

 

(c)       Disclosure
Controls and Procedures. Except as otherwise disclosed in the SEC Reports, the Company has established and maintains disclosure
controls and procedures (as such term is defined in Rule 13a-15 and 15d-15 under the Exchange Act), that (A) are designed to ensure
that material information required to be disclosed by the Company in the reports it files and submits under the Exchange Act is
accumulated and communicated to the management of the Company, including its principal executive officer and its principal financial
officer, as appropriate, to allow timely decisions regarding required disclosure to be made; (B) provide for the periodic evaluation
of the effectiveness of such disclosure controls and procedures as of the end of the period covered by the Company’s most
recent annual or quarterly report filed with the Commission; and (C) are effective in all material respects to perform the functions
for which they were established.

 

(a)       Internal
Control Over Financial Reporting and Internal Accounting Controls. Except as otherwise disclosed in the SEC Reports, the Company
maintains (i) “effective internal control over financial reporting” as defined in, and in compliance with, Rules 13a-15
and 15d-15 under the Exchange Act, and (ii) a system of internal accounting controls sufficient to provide reasonable assurance
that (A) transactions are executed in accordance with management’s general or specific authorizations; (B) transactions
are recorded as necessary to permit preparation of financial statements in conformity with U.S. GAAP and to maintain asset accountability;
(C) access to assets is permitted only in accordance with management’s general or specific authorization; and (D) the recorded
accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect
to any differences.

 

(b)       No
Material Weakness in Internal Controls. Except as otherwise disclosed in the SEC Reports, the Company is not aware of (i)
any material weakness in the Company’s internal control over financial reporting (whether or not remediated); (ii) any change
in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially
affect, the Company’s internal control over financial reporting; or (iii) any fraud, whether or not material, that involves
management or other employees who have a significant role in the Company’s internal controls.

 

    	-14- 

    

    

 

(d)       Off-Balance
Sheet Transactions. There are no material off-balance sheet transactions (including, without limitation, transactions related
to, and the existence of, “variable interest entities” within the meaning of Financial Accounting Standards Board
Accounting Standards Codification Topic 810), arrangements, obligations (including, without limitation, contingent obligations),
or any other relationships with unconsolidated entities or other persons, that may have a material current or future effect on
the Company’s financial condition, changes in financial condition, results of operations, liquidity, capital expenditures,
capital resources, or significant components of revenues or expenses.

 

(e)       Audit
Committee. Except as otherwise disclosed in the SEC Reports, the Company’s Board of Directors has validly appointed
an audit committee whose composition satisfies the requirements of Section 10A of, and Rule 10A-3 under, the Exchange Act, and
the Board of Directors and/or the audit committee has adopted a charter that satisfies the requirements of Section 10A of, and
Rule 10A-3 under, the Exchange Act. As of the date of this Agreement, neither the Board of Directors nor the audit committee has
been informed, nor is any director of the Company aware, of (i) any significant deficiency in the design or operation of the Company’s
internal control over financial reporting which is reasonably likely to adversely affect the Company’s ability to record,
process, summarize and report financial data or any material weakness in the Company’s internal controls; or (ii) any fraud,
whether or not material, that involves management or other employees of the Company who have a significant role in the Company’s
internal controls.

 

(f)       Sarbanes-Oxley.
The Company is in compliance in all material respects with all applicable effective provisions of the Sarbanes-Oxley Act of
2002 and the rules and regulations of the Commission promulgated thereunder.

 

2.23.       Private
Offering.

 

Except
as set forth on Schedule 2.23, neither the Company nor any Person acting on the Company’s behalf (i) has sold or
has offered any of the Preferred Notes or Warrants for sale to, or solicited offers to buy from, or otherwise approached or negotiated
with respect thereto with, any prospective purchaser, other than the Investors, or (ii) shall offer the Preferred Notes or Warrants
for issue or sale to, or solicit any offer to acquire any of the same from, anyone so as to bring the issuance and sale of such
Preferred Notes, Warrants or shares of Common Stock issuable upon conversion of the Preferred Notes or exercise of the Warrants,
as applicable, or any part thereof, within the provisions of Section 5 of the Securities Act. Based upon the representations of
the Investors set forth in Section 3 hereof, the offer, issuance and sale of the Preferred Notes, Warrants and the shares
of Common Stock issuable upon conversion of the Preferred Notes or exercise of the Warrants, as applicable, are and will be exempt
from the registration and prospectus delivery requirements of the Securities Act, and have been registered or qualified (or are
exempt from registration and qualification) under the registration, permit or qualification requirements of all applicable state
securities laws.

 

    	-15- 

    

    

 

2.24.       Brokerage.

 

Except
as set forth on Schedule 2.24, there are no claims for brokerage commissions or finder’s fees or similar compensation
in connection with the transactions contemplated by this Agreement based on any arrangement made by or on behalf of the Company.

 

2.25.       Illegal
or Unauthorized Payments; Political Contributions.

 

(a)       No
Unlawful Contributions or Payments. Neither the Company nor, to the knowledge of the Company, any director, officer, agent,
employee or representative of the Company or other Person associated with or acting on behalf of the Company, has (i) used any
corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii)
made or taken an act in furtherance of an offer, promise or authorization of any direct or indirect unlawful payment of corporate
funds or benefit to any foreign or domestic government or regulatory official or employee, including, without limitation, of any
government-owned or controlled entity or of a public international organization, or any person acting in an official capacity
for or on behalf of any of the foregoing, or any political party or party official or candidate for political office; (iii) violated
or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, the U.K. Bribery Act 2010,
or any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International
Business Transactions, or committed an offense under any other applicable anti-bribery or anti-corruption laws; or (iv) made,
offered, agreed, requested or taken an act in furtherance of any unlawful bribe or other unlawful benefit, including, without
limitation, any rebate, payoff, influence payment, kickback or other unlawful or improper payment or benefit. The Company has
instituted, maintained and enforced, and will continue to maintain and enforce policies and procedures designed to promote and
ensure compliance with all applicable anti-bribery and anti-corruption laws.

 

(b)       Compliance
with Anti-Money Laundering Laws. The operations of the Company are and have been conducted at all times in compliance with
applicable financial recordkeeping and reporting requirements, including those of the Currency and Foreign Transactions Reporting
Act of 1970, as amended, those of the Bank Secrecy Act, as amended by Title III of the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “PATRIOT Act”), and the applicable
money laundering statutes of all jurisdictions in which the Company conducts business, the rules and regulations thereunder and
any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental or regulatory agency
(collectively, the “Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental
agency, authority or body or any arbitrator involving the Company with respect to the Money Laundering Laws is pending or, to
the knowledge of the Company, threatened.

 

(c)       No
Conflicts with Sanctions Laws. Neither the Company nor any director or executive officer of the Company, nor, to the knowledge
of the Company, any director, officer, agent, employee or representative of the Company, Affiliates or other Person associated
with or acting on behalf of the Company is currently the subject or target of any sanctions administered or enforced by the U.S.
government (including, without limitation, the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”)
or the U.S. Department of State and including, without limitation, the designation as a “specially designated national”
or “blocked person”), the United Nations Security Council, the European Union, Her Majesty’s Treasury or other
relevant sanctions authority (collectively, “Sanctions”), nor is the Company located, organized or resident
in a country or territory that is the subject or the target of Sanctions, including, without limitation, Cuba, Iran, North Korea,
Sudan, Syria and Crimea (each, a “Sanctioned Country”); and the Company will not directly or indirectly use
the proceeds of the offering of the Shares hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary,
joint venture partner or other person or entity (i) to fund or facilitate any activities of or business with any person that,
at the time of such funding or facilitation, is the subject or the target of Sanctions, (ii) to fund or facilitate any activities
of or business in any Sanctioned Country or (iii) in any other manner that will result in a violation by any person (including
any person participating in the transaction, whether as agent, principal, advisor, investor or otherwise) of Sanctions. For the
past five years, the Company has not knowingly engaged in, is not now knowingly engaged in, and will not engage in, any dealings
or transactions with any Person that at the time of the dealing or transaction is or was the subject or the target of Sanctions
or with any Sanctioned Country.

 

    	-16- 

    

    

 

2.26.       Minute
Books.

 

The
minute books of the Company, which have been provided to the Investor and its legal counsel prior to the date hereof, contain
a complete summary of all meetings of directors and stockholders since the date of the Company’s incorporation and reflect
all transactions referred to in such minutes accurately in all material respects.

 

2.27.       Real
Property.

 

The
Company does not own a fee interest in any real property. Each parcel of real property leased or subleased by the Company (the
“Leased Real Property”), and the lease agreements relating to such Leased Real Property (the “Real
Property Leases”) are set forth in Schedule 2.27. Except as disclosed in Schedule 2.27, there are no material
liens on the estate or interest created by the Real Property Leases. Each Real Property Lease constitutes a valid and binding
obligation of the Company and is in full force and effect.

 

2.28.       Mining
Operations.

 

(a)       The
Company has made available to the Investors and their representatives all material proprietary geological data, reserve data,
existing mine maps, surveys, title insurance policies, title insurance, abstracts and other evidence of measurements, samples,
lithologic data, reserve calculations or reports, mine plans, mining permit applications and supporting data, engineering studies
and information, maps, reports and data relating to or affecting the Mining Activities requested by the Investor.

 

(b)       Except
as set forth in Schedule 2.28(b), the material mineral reserves mined, owned or leased by the Company or any Affiliates
are not subject to any mining rights of any other Person to mine, process, develop or conduct other, similar activities with respect
to gold, gold-bearing ore, and any other precious and base metal-bearing materials.

 

    	-17- 

    

    

 

2.29.       Mining
Rights.

 

(a)       The
Lucky Shot Project constitutes all of the Company’s material properties in which the Company has an interest (the “Material
Properties”).

 

(b)       The
Company, holds an interest in fee or freehold title, mining leases, mining concessions, mining claims, exploration permits, prospecting
permits, participant interests, conventional property agreements, or proprietary interests or rights, recognized in the jurisdiction
in which the Material Properties are located, in respect of the ore bodies and minerals located on the Material Properties in
which the Company) has an interest under valid, subsisting and enforceable title documents or other recognized and enforceable
agreements, contracts, arrangements or understandings, sufficient to permit the Company to explore for and exploit the minerals
relating thereto, and all such agreements, contracts, arrangements or understandings in connection with the Material Properties
are valid and subsisting and enforceable in accordance with their terms.

 

(c)       All
material concessions, leases, property agreements and contracts, claims and permits relating to the Material Properties in which
the Company (has an interest or right have been validly granted, located, approved, executed and recorded or filed in accordance
with all applicable laws and are valid, subsisting and enforceable.

 

(d)       The
Company has all necessary surface rights, access rights and other necessary rights and interests relating to the Material Property
in which the Company has an interest granting the Company the right and ability to explore for and exploit minerals, ore and metals
for development and production purposes as are appropriate in view of the rights and interest therein of the Company or the applicable
subsidiary, with only such exceptions as do not materially interfere with the current use made by the Company or the applicable
subsidiary of the rights or interest so held, and each of the proprietary interests or rights and each of the agreements, contracts,
arrangements or understandings and obligations relating thereto referred to above is currently in good standing in all material
respects in the name of the Company or the applicable subsidiary.

 

(e)       The
Company does not have any responsibility or obligation to pay any commission, royalty, license, fee, assessment or similar payment
to any person with respect to the property rights thereof, except where such fee or payment would not reasonably be expected to
have a Material Adverse Effect, either individually or in the aggregate.

 

(f)       The
Company has identified all the material permits, certificates, and approvals (collectively, the “Permits”)
which are or will be required for the exploration, development and eventual or actual operation of the Material Properties, which
Permits include but are not limited to mine and reclamation permits, access and use grants and permits, environmental assessment
certificates, water appropriation and use permits, licenses and applications, land tenures, rezoning or zoning variances and other
necessary local, provincial, state and federal approvals; and the appropriate Permits have either been received, applied for,
or the processes to obtain such Permits have been or will in due course be initiated by the Company; and the Company know of any
issue or reason why the Permits should not be approved and obtained in the ordinary course.

 

    	-18- 

    

    

 

(g)       All
assessments or other work required to be performed in relation to the material mining claims and mining rights of the Company
and the applicable subsidiary in order to maintain their respective interests therein, if any, have been performed to date and
the Company, JV Co and the applicable subsidiary have complied in all material respects with all applicable laws in this regard
as well as with regard to legal and contractual obligations to third parties in this regard except in respect of mining claims
and mining rights that the Company and the applicable subsidiary intend to abandon or relinquish and except for any non-compliance
which would not either individually or in the aggregate have a Material Adverse Effect.

 

2.30.       Mining
Practice.

 

All
mining operations by the Company) on the Material Properties have for the past five years been conducted with the exercise of
reasonable diligence, skill, care and prudence for mining operations in similar locations under similar circumstances.

 

2.31.       Technical
Reports.

 

Schedule
2.31 sets out each applicable technical report relating to the Material Properties (the “Reports”). Each
Report was at the time of filing compliant, in all material respects, with the requirements of the provisions of NI 43-101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”). All scientific and technical information disclosed:
(i) is based upon information prepared by or under the supervision of, or approved by, a “qualified person” (as such
term is defined in NI 43-101) and (ii) was true, complete and accurate in all material respects at the time of filing. The Company
made available to the respective authors thereof prior to the issuance of all of the Reports, for the purpose of preparing the
Reports, as applicable, all information requested, and no such information contained any misrepresentation as at the time the
relevant information was made available. The Reports, as of their respective dates, accurately and completely set forth all material
facts relating to the Material Properties, and as of the date hereof and the date of the Prospectus, there is no new material
scientific or technical information concerning any of the Material Properties not included in the Reports.

 

2.32.       Environmental
and Safety Laws.

 

Except
as set forth in Schedule 2.32, neither the Company nor JV Co are in violation in any material respect of any applicable state
or federal law or regulation relating to the environment or occupational health and safety or Mining Activities, and no material
expenditures are or will be required in order to comply in all material respects with any such existing statute, law or regulation.
Furthermore:

 

(a)       Each
of the Company and JV Co, as applicable, is in compliance in all material respects with all applicable federal, provincial, state,
municipal and local laws, statutes, ordinances, regulations and orders, directives and decisions rendered by any ministry, department
or administrative or regulatory agency, whether domestic or foreign, in each case, relating to the protection of the environment,
the processing, use, treatment, storage, disposal, discharge, transport or handling of any pollutants, contaminants, chemicals,
substances or industrial wastes classified as toxic or hazardous to human health or the environment (the “Hazardous Substances”),
or with respect to Hazardous Substances, occupational health and safety (collectively, the “Environmental Laws”);

 

    	-19- 

    

    

 

(b)       Each
of the Company and JV Co, as applicable, has all permits, licenses, authorizations and approvals required under any applicable
Environmental Law (“Environmental Permits”) and are in compliance with all terms and conditions of each Environmental
Permit;

 

(c)       there
are no pending or, to the Company’s knowledge, threatened administrative, regulatory or judicial actions, suits, demands,
claims, liens, investigation or proceedings against either the Company or JV Co, as applicable, relating to any alleged violation
of or liability under Environmental Law;

 

(d)       Neither
of the Company nor JV Co have failed to report to the proper governmental authority the occurrence of any event which is required
to be so reported by any Environmental Laws;

 

(e)       Neither
of the Company nor JV Co are subject to (A) any Environmental Laws that require or may require any material work, repairs, construction,
change in business practices or operations, or any expenditures, including capital expenditures, for facility upgrades to mitigate,
control, or limit releases of Hazardous Substances into the environment, environmental investigation and remediation, or corrective
actions, except with respect to any remediation obligations required as part of mine reclamation and covered under existing reclamation
surety bonds or pursuant to or in accordance with Environmental Permits; (B) any written demand, written notice of default, summons,
notice of judgment or commencement of proceedings with respect to any alleged violation of or liability arising under Environmental
Laws; or (C) any outstanding obligations to remedy, pay compensation, or make any payment in the nature of a fine in relation
to any violation of Environmental Laws; and

 

(f)       there
are no events or circumstances that would reasonably be expected to form the basis of an order for clean-up or remediation, or
an action, suit or proceeding by any private party or governmental body or agency, against or affecting the Company pursuant to
any Environmental Laws.

 

2.33.       Material
Facts.

 

This
Agreement, the schedules furnished contemporaneously herewith, and the other written agreements, documents, certificates or statements
furnished or to be furnished to the Investor through each Closing Date by or on behalf of the Company in connection with the transactions
contemplated hereby taken as a whole, do not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements contained therein or herein, in light of the circumstances in which they were made, not misleading.
In addition, there is no fact which is known to the Company and which has not been disclosed herein or otherwise by the Company
to the Investors which would reasonably be expected to have a Material Adverse Effect. The materials, information and projections
presented to the Investors have been prepared in a good faith effort by the Company to describe the Company’s present and
proposed products, and projected growth and do not contain any materially misleading statement or omissions therein. While such
projections were made by management in good faith based on factual assumptions believed to be true, no representations are made
in respect to the accuracy or reliability of such projections.

 

    	-20- 

    

    

 

2.34.       Interest
in Competitors.

 

Except
as set forth in Schedule 2.34, none of the Company, its Affiliates or any of their respective directors, officers or shareholders,
has any interest, either by way of contract or by way of investment or otherwise, directly or indirectly, in any Person other
than the Company and its Affiliates that (i) provides any services or designs, produces or sells any product or product lines
or engages in any activity similar to or competitive with any activity currently conducted or proposed to be conducted by the
Company and its Affiliates or (ii) has any direct or indirect interest in any asset or property, real or personal, tangible or
intangible, of the Company or any of its Affiliates.

 

SECTION
3.REPRESENTATIONS AND WARRANTIES OF EACH INVESTOR

 

The
Investor represents and warrants to the Company as follows:

 

(a)       It
is acquiring the Preferred Note and the Warrants (and will acquire the Common Stock issuable upon conversion of the Preferred
Note or exercise of the Warrants, as applicable), as applicable, for its own account for investment and not with a present view
towards the resale, transfer or distribution thereof, nor with any present intention of distributing the Preferred Notes and/or
Warrants (and will acquire the Common Stock issuable upon conversion of the Preferred Notes or exercise of the Warrants, as applicable),
as applicable, but subject, nevertheless, to any requirement of law that the disposition of the Investor’s property shall
at all times be within the Investor’s control, and without prejudice to the Investor’s right at all times to sell
or otherwise dispose of all or any part of such securities under a registration under the Securities Act or under an exemption
from said registration available under the Securities Act.

 

(b)       It
has all requisite power and authority to execute and deliver the Transaction Documents to which it is a party and to perform its
obligations hereunder.

 

(c)       It
is a validly existing private limited company duly organized and in good standing under the laws of its jurisdiction of organization.

 

(d)       It
has taken all action necessary for the authorization, execution, delivery, and performance of the Transaction Documents to which
it is a party and its obligations thereunder. No other action is necessary to authorize such execution, delivery and performance
of the Transaction Documents to which it is a party. When executed and delivered by the Investor, each of the Transaction Documents
to which the Investor is a party shall constitute the valid and binding obligation of the Investor, enforceable against the Investor
in accordance with its terms, except that such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium
or other similar laws now or hereafter in effect relating to creditors’ rights and general principles of equity.

 

    	-21- 

    

    

 

(e)       It
is an “accredited investor” within the meaning of Rule 501(a) under the Securities Act. It has such knowledge and
experience in financial and business matters that it is capable of evaluating the merits and risks of its investment in the Company
as contemplated by this Agreement, and is able to bear the economic risk of such investment for an indefinite period of time.
It has been furnished access to such information and documents as it has requested and has been afforded an opportunity to ask
questions of and receive answers from representatives of the Company concerning the terms and conditions of this Agreement and
the purchase of the Preferred Notes contemplated hereby.

 

(f)       The
Investor understands that the Preferred Notes (and the Common Stock issuable upon conversion of the Preferred Notes, if applicable)
and the Warrants (and the Common Stock issuable upon exercise of the Warrants), as applicable, are “restricted securities”
under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Investor must hold the Preferred
Notes (and the Common Stock issuable upon conversion of the Preferred Notes, if applicable) and the Warrants (and the Common Stock
issuable upon exercise of the Warrants), as applicable, indefinitely unless they are registered with the SEC and qualified by
state authorities, or an exemption from such registration and qualification requirements is available.

 

(g)       The
Investor acknowledges that the funds representing the Loan Amount, as applicable, will not represent proceeds of crime for the
purposes of the PATRIOT Act and the Investor acknowledges that the Company may in the future be required by law to disclose the
Investor’s purchase of Preferred Notes hereunder, on a confidential basis, pursuant to the PATRIOT Act. No portion of any
Purchase Price or Loan Amount, as applicable, to be provided by the Investor (i) has been or will be derived from or related to
any activity that is deemed criminal under the laws of the United States of America, or any other jurisdiction, or (ii) is being
tendered on behalf of a person or entity who has not been identified to or by the Investor, and it shall promptly notify the Company
if the Investor discovers that any of such representations ceases to be true and provide the Company with the appropriate information
in connection therewith.

 

SECTION
4.ADDITIONAL COVENANTS OF THE PARTIES

 

4.1.       Resale
of Securities.

 

(a)       Each
Investor covenants that it will not sell or otherwise transfer the Preferred Notes and/or Warrants (and will acquire the Common
Stock issuable upon conversion of the Preferred Notes or exercise of the Warrants, as applicable), except in accordance with the
Investor Rights Agreement and pursuant to an effective registration under the Securities Act or in a transaction which qualifies
as an exempt transaction under the Securities Act and, in each case, in accordance with any applicable state securities laws.

 

(b)       The
certificates evidencing the Preferred Notes and/or Warrants (and will acquire the Common Stock issuable upon conversion of the
Preferred Notes or exercise of the Warrants, as applicable) will bear a legend in substantially the following form reflecting
the foregoing restrictions on the transfer of such securities:

 

    	-22- 

    

    

 

 

“NEITHER
THIS PROMISSORY NOTE NOR THE SECURITIES ISSUABLE UPON CONVERSION OF THIS PROMISSORY NOTE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (“SECURITIES ACT”), OR ANY STATE SECURITIES LAW. EXCEPT AS EXPRESSLY PROVIDED HEREIN, NEITHER
THIS PROMISSORY NOTE NOR ANY PORTION HEREOF OR INTEREST HEREIN (OR THE SECURITIES ISSUABLE UPON CONVERSION OF THIS PROMISSORY
NOTE) MAY BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS THE SAME IS REGISTERED UNDER THE SECURITIES
ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE AND THE COMPANY HAS RECEIVED
EVIDENCE OF SUCH EXEMPTION IN THE FORM OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO COMPANY.”

 

4.2.       Covenants
Pending Closing.

 

After
the date hereof and prior to the Closing, the Company will not, without the Investors’ prior written consent, take any action
which would result in any of the representations or warranties contained in this Agreement not being true at and as of the time
immediately after such action, or in any of the covenants contained in this Agreement becoming incapable of performance. The Company
will promptly advise the Investors of any action or event of which it becomes aware which has the effect of making incorrect any
of such representations or warranties or which has the effect of rendering any of such covenants incapable of performance. The
Company has or will have duly authorized and reserved for issuance, and covenants to continue to so reserve once reserved for
issuance, free of all preemptive and other similar rights, at all times, the requisite aggregate number of authorized but unissued
shares of its Common Stock to timely effect the issuance, sale and delivery in full to the applicable holder of Preferred Notes
and/or Warrants issuable upon conversion of the Preferred Notes or exercise of the Warrants, as applicable.

 

4.3.       Exchange
Act Filings.

 

(a)       Generally.
The Company shall make all filings, notices, petitions, statements, registrations, submissions of information, applications or
other documents required by the Exchange Act , in connection with the transactions contemplated in the Transaction Documents and
shall respond to any requests from the Securities and Exchange Commission (“SEC”) for additional information
(the “Filings”). The Company shall use commercially reasonable efforts to cause all documents that it is responsible
for filing with the SEC under this Section 4.3(a) to comply in all material respects with all requirements of the Exchange
Act. Notwithstanding anything to the contrary contained in this Agreement, all fees, charges and other costs associated with the
Filings shall be borne by the Company.

 

(b)       Exchange
of Information. The Company shall promptly supply the Investors with any information which may be required in connection with
the Filings. The Company shall permit the Investors to review and comment on any Filing. In connection with such collaboration,
each Investor shall promptly provide any information reasonably requested by the SEC relating to such Investor and such Investor
shall act reasonably and as promptly as practicable but in any event such Investor shall provide any comments on Filings and shall
respond to any requests for information as soon as practicable and in any event within two (2) Business Days of being provided
with the Filings or requests for additional information.

 

    	-23- 

    

    

 

(a)       Notification.
The Company shall notify the Investors promptly upon the receipt of: (i) any written or oral comments from the SEC in connection
with any Filings and (ii) any written or oral request by the SEC for amendments or supplements to any Filings or information provided
to comply with the Exchange Act requirements.

 

4.4.       Securities
Laws Filings. The Company shall make all filings and reports relating to the offer and sale of the Preferred Notes and Warrants
required under applicable securities or “Blue Sky” laws of the states of the United States following the Closing Date,
including a Form D with respect to the Preferred Notes and Warrants, as required under Regulation D. The Company shall provide
a copy of all such filings and reports to the Investors promptly after such filing or report is filed or lodged with the applicable
Person.

 

4.5.       Further
Assurance.

 

Each
of the parties shall execute such documents and take such further actions as may be reasonably required or desirable to carry
out the provisions hereof and the transactions contemplated hereby. Each such party shall use its reasonable efforts to fulfill
or obtain the fulfillment of the conditions to each Closing as promptly as practicable.

 

SECTION
5.INVESTOR’S CLOSING CONDITIONS

 

5.1.       Closing.

 

The
obligation of the Investors to purchase and pay for the Preferred Notes on the Closing Date, as provided in Section 1 hereof,
shall be subject to the performance by the Company of its agreements theretofore to be performed hereunder and to the satisfaction
or waiver, prior thereto or concurrently therewith, of the following further conditions:

 

(a)       Representations
and Warranties. The representations and warranties of the Company contained in this Agreement shall be true on and as of the
Closing Date as though such warranties and representations were made at and as of such date.

 

(b)       Compliance
with Agreements. The Company shall have performed and complied with all agreements, covenants and conditions contained in
this Agreement which are required to be performed or complied with by the Company prior to or on the Closing Date.

 

(c)       Officer’s
Certificate. The Investors shall have received the Certificate of Officer and Secretary’s Certificate.

 

(d)       Injunction.
There shall be no effective injunction, writ, preliminary restraining order or any order of any nature issued by a court of competent
jurisdiction directing that the transactions provided for herein or any of them not be consummated as herein provided.

 

    	-24- 

    

    

 

(e)       Form
D; Blue Sky Laws. The Company shall have, on or before the Closing Date, taken such actions as the Company shall have reasonably
determined are necessary in order to obtain an exemption for or to qualify the Preferred Notes and Warrants for sale to the Investors
at each Closing pursuant to this Agreement under applicable securities or “Blue Sky” laws of the states of the United
States (or to obtain an exemption from such qualification), and shall have provided evidence of any such action so taken to the
Investors on or prior to the Closing Date.

 

(f)       Adverse
Developments. There shall have been no event, state of facts, circumstance, development, change or effect that, individually
or in the aggregate with all other events, states of fact, circumstances, developments, changes and effects has had or would be
reasonably expected to have a Material Adverse Effect.

 

(g)       JV
Agreement. The Company and Miranda shall have executed and delivered the JV Agreement.

 

(h)       Streaming
Agreement. The Company, Miranda, JV Co and the Stream Investor shall have executed and delivered the Streaming Agreement.

 

(i)       JV
Security Agreement. JV Co shall have executed and delivered the JV Security Agreement.

 

(j)       Guarantee.
The Company shall have executed and delivered the Guarantee.

 

(k)       Preferred
Note. The Company shall have delivered the Preferred Note(s).

 

(l)       Security
Agreement. The Company shall have executed and delivered the Security Agreement.

 

(m)       Investor
Rights Agreement. The Company, the Preferred Note Investor and Warrant holders shall have executed and delivered the Investor
Rights Agreement.

 

(n)       Appointment
of Directors. Patrick Okita shall have been appointed to the Board of Directors, effective upon completion of the Closing.

 

(o)       Indemnification
Agreement. The Company shall have executed the Indemnification Agreement.

 

(p)       Opinion
Letter. The Preferred Note Investor shall have received an opinion letter of the Company’s legal counsel in the form
attached hereto as Exhibit N.

 

    	-25- 

    

    

 

SECTION
6.COMPANY CLOSING CONDITIONS

 

The
obligation of the Company to issue and deliver the Preferred Notes and the Warrants on the Closing Date, as provided in Section
1 hereof, shall be subject to the performance by the Investor of its agreements theretofore to be performed hereunder and
to the satisfaction, prior thereto or concurrently therewith, of the following further conditions:

 

6.1.       Representations
and Warranties.

 

The
representations and warranties of the Investors contained in this Agreement shall be true on and as of such Closing Date as though
such representations and warranties were made at and as of such date in all material respects.

 

6.2.       Compliance
with Agreements.

 

The
Investors shall have performed and complied with all agreements, covenants and conditions contained in this Agreement which are
required to be performed or complied with by it prior to or on such Closing Date.

 

6.3.       Officer’s
Certificate.

 

The
Company shall have received a certificate, dated as of the such Closing Date, signed by a duly appointed officer of each Investor,
certifying that the conditions specified in Sections 6.1, and 6.2, hereof have been fulfilled and to the receipt
of all required approvals of this Agreement, the Transaction Documents to which the Investor is a party and the transactions contemplated
hereby and thereby.

 

6.4.       Injunction.

 

There
shall be no effective injunction, writ, preliminary restraining order or any order of any nature issued by a court of competent
jurisdiction directing that the transactions provided for herein or any of them not be consummated as herein provided.

 

SECTION
7.COVENANTS

 

7.1.       Use
of Proceeds.

 

The
Company agrees to use the proceeds from such Closing of the Preferred Note Transaction (“Proceeds”) only as
set forth in the budget attached hereto as Exhibit M (the “Use of Proceeds Budget”).

 

7.2.       Lost,
etc. Certificates Evidencing Shares (or shares of Common Stock); Exchange.

 

Upon
receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of any certificate
evidencing any Preferred Notes or Warrants (or shares of Common Stock, if applicable) owned by an Investor, and (in the case of
loss, theft or destruction) of an unsecured indemnity satisfactory to it, and upon reimbursement to the Company of all reasonable
expenses incidental thereto, and upon surrender and cancellation of such certificate, if mutilated, the Company will make and
deliver in lieu of such certificate a new certificate of like tenor and for the number of shares evidenced by such certificate
which remain outstanding. The Investors’ agreement of indemnity shall constitute indemnity satisfactory to the Company for
purposes of this Section 7.2. Upon surrender of any certificate representing any Preferred Notes or Warrants (or shares
of Common Stock) for exchange at the office of the Company, the Company at its expense will cause to be issued in exchange therefor
new certificates in such denomination or denominations as may be requested for the same aggregate number of Preferred Notes, Warrants
or shares of Common Stock, as the case may be, represented by the certificate so surrendered and registered as such holder may
request. The Company will also pay the cost of all deliveries of certificates for such shares or note to the office of the Investor
(including the cost of insurance against loss or theft in an amount satisfactory to the holders) upon any exchange provided for
in this Section 7.2.

 

    	-26- 

    

    

 

7.3.       Reservation
of Common Stock.

 

The
Company will at all times reserve and keep available solely a sufficient number of shares of Common Stock for issuance and delivery
upon the conversion of the Preferred Notes or exercise of the Warrants, which such number shall be equitably and proportionally
adjusted or substituted in the event of changes in the capital structure of the Company by reason of stock dividends, stock splits,
reverse stock splits, recapitalizations, reorganizations, mergers, consolidations, combinations, exchanges, or other relevant
changes in capitalization occurring after the date hereof.

 

SECTION
8.INTERPRETATION OF THIS AGREEMENT

 

8.1.       Terms
Defined.

 

As
used in this Agreement, the following terms have the respective meanings set forth below or set forth in the Section hereof following
such term:

 

Affiliate:
shall have the meaning specified in Rule 12b-2 under the Exchange Act; provided that no Holder shall be deemed an Affiliate
of the Company or its Subsidiaries for purposes of this Agreement; provided further that neither portfolio companies (as
such term is commonly used in the private equity industry) of the Investors nor limited partners, non-managing members or other
similar direct or indirect investors shall be deemed to be Affiliates of the Investors. The term “Affiliated”
has a correlative meaning.

 

Agreement:
shall have the meaning set forth in the Preamble.

 

Benefit
Arrangement: shall have the meaning set forth in Section 2.15.

 

Board
of Directors: shall mean the board of directors of the Company.

 

Business
Day: shall mean any day other than a Saturday, Sunday or a day on which commercial banks located in New York, New York are
required or authorized by law or executive order to be closed.

 

    	-27- 

    

    

 

Canadian
Exchange: shall mean the Toronto Stock Exchange or the TSX Venture Exchange.

 

Canadian
Going Public Transaction: shall mean the completion by the Company of each of the items listed under either (i) or (ii) below:

 

i.       an
initial public offering by the Company of its Common Stock with a concurrent listing on a Canadian Exchange (“Canadian
Public Offering”); or

 

ii.       obtaining
a listing of the Common Stock on a Canadian Exchange whether by means of a reverse take-over, merger, amalgamation, arrangement,
take-over bid, insider bid, reorganization, joint venture, sale of all or substantially all assets, exchange of assets or similar
transaction or other combination with a public corporation.

 

Closing:
shall have the meaning set forth in Section 1.1(a).

 

Closing
Date: shall have the meaning set forth in Section 1.3(a).

 

Code:
shall mean the Internal Revenue Code of 1986, as amended.

 

Common
Stock: shall have the meaning set forth in Section 2.1(b).

 

Common
Stock Equivalent shall mean securities exercisable, exchangeable or convertible into Common Shares.

 

Company:
shall have the meaning set forth in the Preamble.

 

Company’s
Knowledge: shall mean the actual or reasonably imputed knowledge of each member of the Board of Directors and each officer
of the Company following due inquiry by such individual into the applicable matter.

 

Environmental
Laws: shall have the meaning set forth in Section 2.32(a).

 

Environmental
Permits: shall have the meaning set forth in Section 2.32(b).

 

Exchange
Act: shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

Filings:
shall have the meaning set forth in Section 4.3(a).

 

Financial
Statements: shall have the meaning set forth in Section 2.7.

 

Hazardous
Substances: shall have the meaning set forth in Section 2.32(a).

 

Indemnification
Agreement: shall have the meaning set forth in Section 5.1(o).

 

Investors:
shall have the meaning set forth in the Preamble.

 

    	-28- 

    

    

 

Investor
Certificate: shall have the meaning set forth in Section 1.5(b).

 

Investor
Rights Agreement: shall have the meaning set forth in Section 5.1(n).

 

JV
Security Agreement: shall have the meaning set forth in the Recitals.

 

Key
Agreements and Instruments: shall have the meaning set forth in Section 2.6.

 

Leased
Real Property: shall have the meaning set forth in Section 2.27.

 

Loan
Amount: shall have the meaning set forth in Section 1.2(a).

 

Losses:
shall mean any damage, claim, disbursement, expense, tax, cost, liability, loss, deficiency, obligation, penalty or commercially
reasonable settlement, payable to third parties, whether foreseeable or unforeseeable, including (a) interest or other carrying
costs, penalties, legal, accounting and other professional fees and expenses reasonably incurred in the investigation, collection,
prosecution and defense of claims and amounts paid in settlement, that may be imposed on or otherwise incurred or suffered by
such indemnitee and (b) any taxes that may be payable by such indemnitee as a result of the indemnification of any Loss hereunder.
Notwithstanding the foregoing, in no event shall any warrantor be liable to any indemnitee for any punitive, incidental, special
or indirect damages, including loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement,
or any damages based on any type of multiple, to the extent that any of the foregoing losses were not the reasonably foreseeable
consequence of the applicable breach.

 

Lucky
Shot Project: shall mean the “Project” as defined in the Streaming Agreement.

 

Material
Adverse Effect: shall mean a material adverse effect on the business, properties, assets, liabilities, profits, results of
operations or condition (financial or otherwise) of the Company taken as a whole.

 

Material
Contract: shall have the meaning set forth in Section 2.11.

 

Material
Property: shall have the meaning set forth in Section 2.29(a).

 

Mining
Activities: shall mean those activities of the Company or its Affiliates that involve or are related to any type of exploration,
evaluation, development of resources and/or reserves, mining, processing, sale or transporting of gold, gold-bearing ore, and
any other precious and base metal-bearing materials and related activities, and the providing of services related thereto, the
Lucky Shot Project, including (i) financing activities, general administrative management and operational activities to advance
the financing and development of the Lucky Shot Project and (ii) activities set out in the JV Agreement.

 

Money
Laundering Laws: shall have the meaning set forth in Section 2.25(b).

 

OFAC:
shall have the meaning set forth in Section 2.25(c).

 

    	-29- 

    

    

 

Organizational
Documents: shall have the meaning set forth in Section 2.1(a).

 

PATRIOT
Act: shall have the meaning set forth in Section 2.25(b).

 

Permits:
shall have the meaning set forth in Section 2.29(f).

 

Person:
shall mean any individual, partnership, corporation, limited liability company, private limited company, unincorporated organization,
trust or joint venture, or a governmental agency or political subdivision thereof or any other entity.

 

Preferred
Note: shall have the meaning set forth in the Recitals.

 

Proceeds:
shall have the meaning set forth in Section 7.1.

 

Proceeding:
shall mean an action, claim, suit, investigation or proceeding (including a partial proceeding, such as a deposition or other
discovery activity), in any judicial, administrative, arbitral or regulatory forum, whether commenced or threatened in writing.

 

Properties:
shall have the meaning forth in the Streaming Agreement.

 

Real
Property Leases: shall have the meaning set forth in Section 2.27.

 

Regulation
D: shall have the meaning set forth in the Recitals.

 

SEC:
shall mean the United States Securities and Exchange Commission or any other federal agency at the time administering the Securities
Act.

 

Sanctions:
shall have the meaning set forth in Section 2.25(c).

 

Sanctioned
Country: shall have the meaning set forth in Section 2.25(c).

 

Secretary’s
Certificate: shall have the meaning set forth in Section 1.4(d).

 

Securities
Act: shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

Security
Agreement: shall have the meaning set forth in the Recitals.

 

Streaming
Agreement: shall have the meaning set forth in the Recitals.

 

Subsidiaries:
shall mean, with respect to any Person, any entity of which (i) a majority of the total voting power of shares of stock or equivalent
ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers,
trustees or other members of the applicable governing body thereof is at the time owned or controlled, directly or indirectly,
by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if no such governing
body exists at such entity, a majority of the total voting power of shares of stock or equivalent ownership interests of the entity
is at the time owned or controlled, directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination
thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability
company, partnership, association or other business entity if such Person or Persons shall be allocated a majority of limited
liability company, partnership, association or other business entity gains or losses or shall be or control the managing member
or general partner of such limited liability company, partnership, association or other business entity.

 

    	-30- 

    

    

 

Transaction
Documents: shall mean this Agreement, the Security Agreement, the Investor Rights Agreement, the Preferred Notes, the JV Security
Agreement, , the Indemnity Agreement, and any other agreements entered into in connection with the transactions contemplated by
this Agreement.

 

Total
Commitment: shall have the meaning set forth in Section 1.1.

 

Trading
Day: shall mean a Business Day whereby Common Shares is listed or quoted as reported by Bloomberg L.P. and generally encompasses
from 9:30 a.m. (Eastern Time) to 4:02 p.m. (Eastern Time).

 

Tranche
1 Funding: shall have the meaning set forth in the Recitals.

 

Tranche
2 Funding: shall have the meaning set forth in the Recitals.

 

Underlying
Lease: shall have the meaning set forth in the Streaming Agreement.

 

US$
or $: shall mean United States dollars. Unless otherwise provided, all references to dollars ($) refer to United States dollars.

 

U.S.
GAAP: shall have the meaning set forth in Section 2.7.

 

Use
of Proceeds Budget: shall have the meaning set forth in Section 7.1.

 

8.2.       Rules
of Construction.

 

The
headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party. This Agreement shall be construed
as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue
of the authorship of any provisions of this Agreement or any of the Transaction Documents. The words “hereof”, “herein”
and “hereunder” and words of like import used in this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement. References to Articles, Sections, Exhibits and Schedules are to Articles, Sections,
Exhibits and Schedules of this Agreement unless otherwise specified. All Exhibits and Schedules annexed hereto or referred to
herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized terms used
in any Exhibit or Schedule but not otherwise defined therein, shall have the meaning set forth in this Agreement. Any singular
term in this Agreement shall be deemed to include the plural, and any plural term the singular. Whenever the words “include”,
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words
“, but not limited to,”, whether or not they are in fact followed by those words or words of like import. Except as
the context may otherwise require, references to any agreement or contract are to that agreement or contract as amended or supplemented
from time to time in accordance with the terms hereof and thereof; provided, however, that with respect to any agreement or contract
listed on any Schedules hereto, all such amendments or supplements must also be listed in the appropriate Schedule. References
to a statute shall be to such statute, as amended from time to time, and to the rules and regulations promulgated thereunder;
provided, however, that for the purposes of the representations and warranties set forth herein, with respect to any violation
or alleged violation of any statute, the reference to such statute means such statute as in effect at the time of such violation
or alleged violation. References to any Person include the successors and permitted assigns of that Person. References from or
through any date mean, unless otherwise specified, from and including or through and including, respectively

 

    	-31- 

    

    

 

8.3.       Accounting
Principles.

 

Where
the character or amount of any asset or liability or item of income or expense is required to be determined or any consolidation
or other accounting computation is required to be made for the purposes of this Agreement, this shall be done in accordance with
IFRS at the time in effect, to the extent applicable, except where such principles are inconsistent with the requirements of this
Agreement.

 

8.4.       Directly
or Indirectly.

 

Where
any provision in this Agreement refers to action to be taken by any Person, or which such Person is prohibited from taking, such
provision shall be applicable whether such action is taken directly or indirectly by such Person.

 

8.5.       Governing
Law.

 

THIS
AGREEMENT IS TO BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO PRINCIPLES
OF CONFLICTS OF LAW. AT THE OPTION OF THE HOLDER, THIS NOTE MAY BE ENFORCED IN ANY FEDERAL COURT OR ANY NEW YORK STATE COURT SITTING
IN NEW YORK COUNTY, NEW YORK; AND THE COMPANY CONSENTS TO THE JURISDICTION AND
VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT THE VENUE IN SUCH FORUMS IS NOT CONVENIENT. IF THE COMPANY COMMENCES ANY
ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP
CREATED BY THIS NOTE, THE HOLDER AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS AND
VENUES ABOVE-DESCRIBED, OR, IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE DISMISSED WITHOUT
PREJUDICE.

 

    	-32- 

    

    

 

8.6.       Paragraph
and Section Headings.

 

The
headings of the sections and subsections of this Agreement are inserted for convenience only and shall not be deemed to constitute
a part thereof.

 

SECTION
9.MISCELLANEOUS

 

9.1.       Notices.

 

(a)       All
communications under this Agreement shall be in writing and shall be delivered by hand, email or facsimile or mailed by overnight
courier or by registered mail or certified mail, postage prepaid:

 

(1)       if
to the Preferred Note Investor, at CRH MEZZANINE PTE. LTD., 10 Changi Business Park Central 2, #05-01 HansaPoint, Singapore 486030.
In New York, c/o Cartesian Capital Group, LLC, 505 Fifth Avenue, 15th Floor, New York, NY 10017, Attn: Peter Yu with a copy (which
shall not constitute notice), to Dorsey & Whitney LLP, 1400 Wewatta Street, Suite 400, Denver, CO 80202, Attn: Kenneth Sam;

 

(2)       if
to the Stream Investor, at CRH FUNDING II PTE. LTD., 10 Changi Business Park Central 2, #05-01 HansaPoint, Singapore 486030. In
New York, c/o Cartesian Capital Group, LLC, 505 Fifth Avenue, 15th Floor, New York, NY 10017, Attn: Peter Yu with a copy (which
shall not constitute notice), to Dorsey & Whitney LLP, 1400 Wewatta Street, Suite 400, Denver, CO 80202, Attn: Kenneth Sam;
and

 

(3)       if
to the Company, at: 960 Broadway, Suite 530, Boise, ID 83706, Attn: Daniel Kunz, CEO, with a copy (which shall not constitute
notice), to Kane Kessler P.C., 666 Third Avenue New York, NY 10017-4041, Attn: Peter Campitiello.

 

(b)       Any
notice so addressed shall be deemed to be given: if delivered by email, hand or facsimile, on the date of such delivery; if mailed
by overnight courier, on the date of delivery; and if mailed by registered or certified mail, on the third Business Day after
the date of such mailing.

 

9.2.       Expenses
and Taxes.

 

(a)       The
Company agrees to pay the fees, expenses and disbursements of (i) the Preferred Note Investor and its agents, advisors (including
the fees and disbursements of Dorsey & Whitney LLP) and consultants (in the amount of $100,000 in the aggregate for all such
fees, expenses and disbursements at Closing), incurred in connection with the negotiation, preparation, execution and delivery
of the Transaction Documents, and (ii) the Company and its agents, advisors, consultants, accountants and auditors incurred in
connection with the negotiation, preparation, execution and delivery of the Transaction Documents, in accordance and subject to
the Use of Proceeds Budget. Notwithstanding anything to the foregoing herein, the Loan Amount to be delivered (or caused to be
delivered) by the Preferred Note Investor to the Company at Closing shall be net of any amounts payable by the Company to such
Investor pursuant to Section 9.2(a)(i) as of such Closing.

 

    	-33- 

    

    

 

(b)       The
Company will pay, and save and hold the Investors harmless from any and all liabilities (including interest and penalties) with
respect to, or resulting from any delay or failure in paying, stamp and other taxes (other than income taxes), if any, which may
be payable or determined to be payable by the parties hereto on the execution and delivery or acquisition of the Preferred Notes
or the shares of Common Stock issuable upon conversion of the Preferred Notes, as applicable.

 

9.3.       Reproduction
of Documents.

 

This
Agreement and all documents relating thereto, including (a) consents, waivers and modifications which may hereafter be executed,
(b) documents received by the Investor on any Closing Date (except for certificates evidencing the Preferred Notes and Warrants
themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to the Investor,
may be reproduced by the Investor by any photographic, photostatic, microfilm, micro-card, miniature photographic or other similar
process and the Investor may destroy any original document so reproduced. All parties hereto agree and stipulate that any such
reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not
the original is in existence and whether or not such reproduction was made by the Investor in the regular course of business)
and that any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.

 

9.4.       Survival;
Indemnification.

 

(a)       For
a period of 18 months following the Closing Date, all representations, warranties and covenants made by each Investor and the
Company herein or in any certificate or other instrument delivered by each Investor or the Company under this Agreement shall
be considered to have been relied upon by the Company or the Investors, as the case may be, and shall survive all deliveries to
the Investor of the Preferred Notes, or payment to the Company for such Preferred Notes, regardless of any investigation made
by the Company or the Investor, as the case may be, or on the Company’s or the Investor’s behalf. Notwithstanding
the foregoing or anything to contrary herein, the following representations and warranties shall survive such delivery and payment
indefinitely: Sections 2.1 (Corporation Organization), 2.2 (Subsidiaries), 2.3 (Capitalization), 2.4
(Corporate Proceedings, etc.), 2.28 (Mining Practice), 2.344 (Interest in Competitors), and Sections 3(b),
3(c), 3(d), 3(f) and 3(g).

 

(b)       The
Company and its Affiliates shall, notwithstanding any termination of this Agreement, indemnify and hold harmless, jointly and
severally, each of the Investors and each of their respective managers, members, stockholders, partners, other equity owners,
officers, directors, successors, assigns, agents, attorneys and employees, to the fullest extent permitted by applicable law,
from and against any and all Losses, as incurred, arising out of or based on (i) any misrepresentation or breach of any representation
or warranty made by the Company in any Transaction Document or any other certificate, instrument or document contemplated hereby
or thereby or (ii) any breach of any agreement or obligation by the Company of any Transaction Document, or (iii) any Proceeding
in connection with, arising out of, or related to, any of the transactions contemplated by any Transaction Document. The Company
will not be liable to the Investors under this Section 9.4(b) to the extent, but only to the extent, that a Loss is attributable
to an Investor’s breach of any of the representations, warranties, covenants or agreements made by an Investor under the
Transaction Documents or any violations by an Investor of applicable law or any conduct by an Investor which constitutes fraud,
willful misconduct or malfeasance.

 

    	-34- 

    

    

 

(c)       The
Investors shall, notwithstanding any termination of this Agreement, indemnify and hold harmless, severally and not jointly, the
Company, the Company’s managers, members, stockholders, partners, other equity owners, officers, directors, successors,
assigns, agents, attorneys and employees, to the fullest extent permitted by applicable law, from and against any and all Losses,
as incurred, arising out of or based on (i) any misrepresentation or breach of any representation or warranty made by an Investor
in any Transaction Document or any other certificate, instrument or document contemplated hereby or thereby, (ii) (ii) any breach
of any agreement or obligation by the Company of any Transaction Document or (iii) any breach of any agreement or obligation by
the Investors of any Transaction Document. An Investor will not be liable to the Company under this Section 9.4(c) to the
extent, but only to the extent that a Loss is attributable to the Company’s breach of any of the representations, warranties,
covenants or agreements made by the Company under the Transaction Documents or any violations by the Company of applicable law
or any conduct by the Company which constitutes fraud, willful misconduct or malfeasance.

 

9.5.       Public
Communications.

 

No
press release or public announcement related to this Agreement or the transactions contemplated hereby shall be issued or made
without the joint approval of the Investors and the Company, unless required by law or the rules or regulations of the SEC, in
which case the Investors and the Company, as applicable, shall have the right to review and comment on such press release or announcement
prior to such issuance or making so long as the disseminating party receives comments from the reviewing party as soon as practicable
and in any event within two (2) Business Days following the disseminating party providing such press release or public announcement
to the reviewing party for review and comment. Notwithstanding the foregoing, with respect to press releases or public announcements
required by law related to this Agreement or the transactions contemplated hereby required by law, the Investors’ right
to comment on the information contained therein shall be limited to the information not required by applicable law as reasonably
determined by the parties’ counsel. Any disclosure contained in a press release or public announcement related to this Agreement
or the transaction contemplated hereby previously approved by the Investors shall not require re-approval by the Investors.

 

9.6.       Successors
and Assigns; No Third Party Beneficiaries.

 

This
Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties hereto,
provided, however, upon notice to the Company that the Investors may assign its rights and obligations under this Agreement to
any Affiliate without the consent of any other party hereto and, provided, further, however, such Affiliate executes (i) documents
provided by the Company which state the Person agrees to be bound by the terms of any applicable Transaction Documents and (ii)
such other documents and instruments as may be reasonably requested by the Company. Nothing in this Agreement shall confer upon
any Person not a party to this Agreement any rights or remedies of any nature or kind whatsoever under or by reason of this Agreement.

 

    	-35- 

    

    

 

9.7.       Entire
Agreement; Amendment and Waiver.

 

This
Agreement and the agreements attached as Exhibits hereto together with the Transaction Documents constitute the entire understandings
of the parties hereto and supersede all prior agreements or understandings with respect to the subject matter hereof and thereof
among such parties. The Company has made no representations or promises whatsoever except
those contained herein and no information or knowledge obtained by the Investors shall
affect or be deemed to modify any representation or warranty contained herein, the covenants or agreements of the parties hereto
or the conditions to the obligations of the parties hereto under this Agreement. Any provision of this Agreement may be (a) amended
with (and only with) the written consent duly executed by the Company and the Investors, and (b) waived by (and only by) a written
instrument duly executed by the party that is waiving a right hereunder.

 

9.8.       Severability.

 

In
the event that any part or parts of this Agreement shall be held illegal or unenforceable by any court or administrative body
of competent jurisdiction, such determination shall not affect the remaining provisions of this Agreement which shall remain in
full force and effect.

 

9.9.       Limitation
on Enforcement of Remedies.

 

The
Company hereby agrees that it will not assert against the limited partners of the Investors any claim it may have under this Agreement
by reason of any failure or alleged failure by an Investor to meet its obligations hereunder.

 

9.10.       Waiver
of Jury Trial.

 

Each
party acknowledges and agrees that any controversy which may arise under this Agreement is likely to involve complicated and difficult
issues and, therefore, each such party irrevocably and unconditionally waives any right it may have to a trial by jury in respect
of any actions, suits, demand letters, judicial, administrative or regulatory proceedings, or hearings, notices of violation or
investigations arising out of or relating to this Agreement. Each party to this Agreement certifies and acknowledges that (a)
such party has considered the implications of this waiver and (b) such party makes this waiver voluntarily.

 

9.11.       Counterparts.

 

This
Agreement may be executed in two or more counterparts (including by facsimile or email), each of which shall be deemed an original
and all of which together shall be considered one and the same agreement. Delivery of an executed counterpart of a signature page
to this Agreement by facsimile or email shall be effective as delivery of a manually executed counterpart of this Agreement.

 

[Remainder
of Page Intentionally Left Blank]

 

    	-36- 

    

    

 

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

 

	 	COMPANY:
	 	 	 
	 	GOLD TORRENT, INC.
	 	 	 
	 	By:	 
	 	Name: 	 
	 	Title:	 

 

    	 

    

    

 

	 	PREFERRED NOTE INVESTOR:
	 	 
	 	CRH MEZZANINE PTE. LTD.
	 	 	 
	 	By:	 
	 	Name: 	Peter Yu
	 	Title:	Director
	 	 	 
	 	STREAM INVESTOR:
	 	 
	 	CRH FUNDING II PTE. LTD.
	 	 	 
	 	By:	 
	 	Name:	 Peter Yu
	 	Title: 	Director

 

    	 

    

    

 

EXHIBIT
A

 

JV
Agreement

 

    	 

    

    

 

EXHIBIT
B

 

Preferred
Note

 

    	 

    

    

 

Exhibit
C

 

Security
Agreement

 

    	 

    

    

 

Exhibit
D

 

Streaming
Agreement

 

    	 

    

    

 

Exhibit
E

 

JV
Security Agreement

 

    	 

    

    

 

Exhibit
F

 

Guarantee

 

    	 

    

    

 

Exhibit
G

 

Warrants

 

    	 

    

    

 

Exhibit
H

 

Investor
Rights Agreement

 

    	 

    

    

 

Exhibit
I

 

Indemnity
Agreement

 

    	 

    

    

 

Exhibit
J

 

Certificate
of Officer

 

    	 

    

    

 

Exhibit
K

 

Secretary’s
Certificate

 

    	 

    

    

 

Exhibit
L

 

Investor’s
Certificate

 

    	 

    

    

 

Exhibit
M

 

Use
of Proceeds Budget

 

    	 

    

    

 

Exhibit
N

 

Form
of Opinions

 

1.       The
Corporation is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation
and has full corporate power and authority to conduct all the activities conducted by it, to own, lease and operate all the assets
owned or leased by it and to conduct its business as described in the Corporation’s filings (the “SEC Reports”)
with the United States Securities and Exchange Commission (“SEC”) under the Securities Exchange Act of 1934,
as amended (the “U.S. Exchange Act”).

 

2.       The
Corporation is duly qualified as a foreign corporation to transact business and is in good standing in each jurisdiction in which
the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the
failure to be so qualified or be in good standing would not have a material adverse effect on the Corporation.

 

3.       All
of the issued shares of capital stock of the Corporation have been duly and validly authorized and issued, are fully paid and
non-assessable and are free and clear of all liens, encumbrances, equities or claims.

 

4.       The
Promissory Note constitutes a valid debt obligation of the Corporation and the Warrants have been validly authorized and issued,
are fully paid and non-assessable. The shares of common stock issuable upon conversion of the Promissory Note and exercise of
the Warrants have been reserved and upon conversion of the Promissory Note and exercise of the Warrants will be validly authorized
and issued, fully paid and non-assessable shares of common stock of the Corporation, free and clear of all liens, encumbrances,
equities or claims.

 

5.       The
Corporation has obtained each consent, approval, authorization or waiver in connection with the execution, delivery and performance
of the Purchase Agreement and the agreements contemplated thereunder (collectively, the “Transaction Agreements”)
by the Corporation.

 

6.       The
Corporation has full corporate power and authority to enter into and perform its obligations under the Transaction Agreements,
and the Transaction Agreements have been duly authorized, executed and delivered by the Corporation and each of the Transaction
Agreements in which it is a party constitutes the valid, binding and enforceable obligation of the Corporation.

 

7.       The
execution and delivery by the Corporation of, and the performance by the Corporation of its agreements in the Transaction Agreements
to which it is a party do not and will not (i) violate the certificate of incorporation or by-laws of the Corporation, or (ii)
result in the creation or imposition of any lien, charge or encumbrance upon any of the assets of the Corporation or any Subsidary
pursuant to the terms or provisions of, or result in a breach or violation of any of the terms or provisions of, or constitute
a default under, or give any other party a right to terminate any of its obligations under, or result in the acceleration of any
obligation under, any Material Contract.

 

    	 

    

    

 

DISCLOSURE
SCHEDULE

 

This
Disclosure Schedule (this “Disclosure Schedule”) is made and given pursuant to Section 2 of the Convertible
Preferred Note Purchase and Investment Agreement, dated February 9, 2017 (the “Agreement”), by and among GOLD
TORRENT, INC., a Nevada corporation (the “Company”); CRH MEZZANINE PTE. LTD., a Singapore private limited company
(the “Preferred Note Investor”); CRH FUNDING II PTE. LTD., a Singapore private limited company (the “Stream
Investor”); (collectively, the “Investors”, and individually, an “Investor”).
Each section of the Disclosure Schedule set forth herein shall be construed with and as an integral part of the Agreement to the
same extent as if they were set forth verbatim therein. Information set forth in each section of the Disclosure Schedule specifically
refers to the article and section of the Agreement to which such information is responsive, provided, however, disclosure of an
item in response to one section of the Agreement shall constitute disclosure and response to every reasonably relevant section
of the Agreement, notwithstanding the fact that no express cross-reference is made, provided, further, however, the information
provided on the section of the Disclosure Schedule on which information is disclosed is meaningful and not misleading in the context
deemed disclosed for other purposes.

 

Matters
set forth in the Disclosure Schedule are not necessarily limited to matters required by the Agreement to be reflected in the Disclosure
Schedule. Such additional matters are set forth for informational purposes, and the Disclosure Schedule does not necessarily include
other matters of a similar nature. Inclusion of a matter in the Disclosure Schedule shall expressly not be deemed to constitute
an admission by the Company, or otherwise imply that any such matter is material or creates a measure for materiality for purposes
of this Agreement or of any obligation or liability to any third party.

 

Capitalized
terms used herein, unless otherwise defined herein, shall have the meanings ascribed to them in the Agreement.EXECUTION
COPY

 

SECURED
CONVERTIBLE PREFERRED NOTE

 

NEITHER
THIS PROMISSORY NOTE NOR THE SECURITIES ISSUABLE UPON CONVERSION OF THIS PROMISSORY NOTE HAVE BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (“SECURITIES ACT”), OR ANY STATE SECURITIES LAW. EXCEPT AS EXPRESSLY PROVIDED HEREIN, NEITHER
THIS PROMISSORY NOTE NOR ANY PORTION HEREOF OR INTEREST HEREIN (OR THE SECURITIES ISSUABLE UPON CONVERSION OF THIS PROMISSORY
NOTE) MAY BE SOLD, ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF UNLESS THE SAME IS REGISTERED UNDER THE SECURITIES
ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE AND THE COMPANY HAS RECEIVED
EVIDENCE OF SUCH EXEMPTION IN THE FORM OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO COMPANY.

 

Gold
Torrent, Inc.

 

Secured
Convertible Preferred Note

 

	Issuance
    Date: February 9, 2017	Principal:
    U.S. $2,000,000          

 

FOR
VALUE RECEIVED, GOLD TORRENT, INC., a Nevada corporation (the “Company”), hereby promises to pay to CRH
MEZZANINE PTE. LTD., a Singapore private limited company, or its designee (the “Holder”) the amount of Two
Million Dollars and no cents (US$2,000,000)(as such amount may be increased or reduced from time to time pursuant to the terms
hereof, whether through the payment of PIK Interest (as defined below) or through redemption, conversion or otherwise, the “Principal”)
when due, whether upon the Maturity Date (as defined below), acceleration, redemption or otherwise (in each case, in accordance
with the terms hereof) and to pay Interest (as defined below) on the outstanding Principal at the rates, in the manner and at
the times set forth herein. This Secured Convertible Preferred Note (including all Secured Convertible Preferred Notes issued
in exchange, transfer or replacement hereof, this “Note”) is one of an issue of Secured Convertible Preferred
Notes issued pursuant to the Securities Purchase Agreement (as defined below)(collectively, the “Notes”). Certain
capitalized terms used herein are defined in Section 26. Capitalized terms used herein but not defined shall have the meaning
given to such terms in the Securities Purchase Agreement.

 

(1) PAYMENTS
OF PRINCIPAL. On the Maturity Date, the Holder shall surrender this Note to the Company and the Company shall pay to the Holder
in cash an amount equal to the outstanding Principal (if any) and accrued and unpaid Interest thereon. The “Maturity
Date” shall be February 9, 2019.

 

(2) INTEREST.
Simple interest (“Interest”) shall accrue on the outstanding Principal at the Interest Rate from and including
the date set forth above opposite the caption “Issuance Date” (the “Issuance Date”) until the Principal
is paid in full, shall be computed on a monthly basis and, subject to the right of the Holder to include accrued and unpaid Interest
in the Conversion Amount (as defined below) in accordance with Section 3(b)(i) below, shall be payable in arrears for each
Interest Period no later than the date that is five (5) Business Days after the last day of the applicable Interest Period (each,
an “Interest Payment Date”).

 

    	 	 	 

    	 		 

    

 

(a) Payment
of Interest. Interest shall be payable on each Interest Payment Date to the record holder of this Note as of the last day
of the applicable Interest Period, subject to Section 2(b), (i) in cash (“Cash Interest”) or (ii) prior
to the Mandatory Conversion Eligibility Date, (as defined below) the Company shall instead pay such Interest through the addition
of the amount of such Interest to the then outstanding Principal (any Interest paid in such manner, “PIK Interest”),
provided that the there is no Event of Default (as defined below).

 

(b) PIK
Interest Payments. Notwithstanding the foregoing, Interest that is paid in the form of PIK Interest shall be considered paid
or duly provided for, for all purposes under this Note, and shall not be considered overdue. The Company shall pay any and all
taxes that may be payable by the Holder with respect to PIK Interest; provided that the Company shall not be required to
pay any tax that may be payable in respect of PIK Interest to any Person other than the Holder or with respect to any income tax
due by the Holder with respect to such PIK Interest. Notwithstanding the foregoing, unless the Holder otherwise agree in writing,
the Company shall not be entitled to pay PIK Interest and shall instead, subject to Section 2(a)(ii), be required to pay
all accrued and unpaid Interest in the form of Cash Interest on the applicable Interest Payment Date if, on the applicable Interest
Payment Date there is an Event of Default.

 

(c) Maximum
Rate. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to this Note, together
with all fees, charges and other amounts that are treated as interest on this Note under applicable law (collectively, the “Charges”),
shall exceed the maximum lawful rate (the “Maximum Rate”) that may be contracted for, charged, taken, received
or reserved by the Holder in accordance with applicable law, the rate of interest payable in respect hereof, together with all
Charges payable in respect thereof, shall be limited to the Maximum Rate.

 

(3) CONVERSION
OF NOTES. This Note shall be convertible into shares of the Company’s common stock, par value $0.001 per share (the
“Common Stock”), on the terms and conditions set forth in this Section 3.

 

(a) Conversion
Right. The Holder shall be entitled to convert any portion of the outstanding Principal and accrued and unpaid Interest thereon,
in multiples of $1,000 (or, if less, any remaining Principal and accrued and unpaid Interest thereon), into fully paid and non-assessable
shares of Common Stock in accordance with Section 3. The Company shall not issue any fraction of a share of Common Stock
upon any conversion. If the issuance would otherwise result in the issuance of a fraction of a share of Common Stock, the Company
shall round such fraction of a share of Common Stock up to the nearest whole share. The Company shall pay any and all taxes that
may be payable by the Company with respect to the issuance and delivery of Common Stock upon conversion of any Conversion Amount;
provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved
in the issue and delivery of Common Stock to any Person other than the Holder or with respect to any income tax due by the Holder
with respect to such Common Stock issued upon conversion.

 

    	 	 2	 

    	 		 

    

 

(b) Conversion
Rate. The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to Section 3(a)
shall be determined by dividing (i) such Conversion Amount by (ii) the Conversion Price (as defined below) (the “Conversion
Rate”).

 

	 	A.	“Conversion
    Amount” means the sum of (1) the portion of the Principal to be converted, redeemed or otherwise with respect to
    which this determination is being made, and (2) accrued and unpaid Interest, including any PIK Interest, with respect to such
    portion of the Principal.
	 	 	 
	 	B.	“Conversion
    Price” means, subject to adjustment as provided herein and Section 8 of this Note, the conversion price per
    share calculated as follows:

 

X
= $2,000,000

        (A/B)
- A

 

Where:

 

	 	X =	Conversion Price
	 	 	 
	 	A =	Number of issued and outstanding shares of Common Stock on a fully-diluted basis on the Conversion Date (as defined below).*
	 	 	 
	 	B =	0.85

 

	 	* 	Fully diluted for the purposes of this calculation means the number of issued and outstanding shares of Common Stock, including any shares issuable in connection with a financing, restructuring, acquisition, going public or other transaction plus any shares of Common Stock issuable upon exercise or conversion of any Common Stock Equivalents, ratchet, true up or similar rights or obligations of the Company without payment of additional consideration by the holder thereof.

 

(c) Mechanics
of Conversion.

 

	 	(i)	Optional
    Conversion. The Holder, at its sole option, shall be entitled at any time to convert any portion of the outstanding Principal
    and accrued and unpaid Interest thereon, in multiples of $1,000 (or, if less, any remaining Principal and accrued and unpaid
    Interest thereon), into fully paid and non-assessable shares of Common Stock. To convert any Conversion Amount into shares
    of Common Stock on any date (a “Conversion Date”), the Holder shall: (1) transmit by facsimile (or otherwise
    deliver), for receipt on or prior to 5:00 p.m., Eastern Time, on such date, a copy of an executed notice of conversion in
    the form attached hereto as Exhibit I (the “Conversion Notice”) to the Company and (2) if required
    by Section 3(c)(iv), surrender this Note to a common carrier for delivery to the Company as soon as practicable on
    or following such date (or an indemnification undertaking with respect to this Note in the case of its loss, theft or destruction).
    On or before the second (2nd) Business Day following the date of receipt of a Conversion Notice, the Company shall
    transmit by facsimile a confirmation of receipt of such Conversion Notice to the Holder and the Transfer Agent. On or before
    the third (3rd) Business Day following the date of receipt of a Conversion Notice (the “Share Delivery
    Date”), the Company shall issue and deliver to the address as specified in the Conversion Notice, a certificate,
    registered in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder shall be
    entitled. If this Note is physically surrendered for conversion as required by Section 3(c)(iii) and the outstanding
    Principal of this Note is greater than the portion of the Conversion Amount constituting principal, then the Company shall
    as soon as practicable and in no event later than three (3) Business Days after receipt of this Note (the “Note Delivery
    Date”) and at its own expense, issue and deliver to the holder a new Note (in accordance with Section 16(d))
    representing the outstanding Principal not converted. The Person or Persons entitled to receive the shares of Common Stock
    issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares of
    Common Stock on the Conversion Date to the extent permitted by applicable law. 

 

    	 	 3	 

    	 		 

    

 

	 	(ii)	Mandatory
    Conversion. If at any time from and after (A) the Company completes an equity raise of at least US$5,000,000 (which shall
    include the conversion of the Notes under this Section 3(c)(ii) for the purposes of the calculation) and (B) the earlier
    of: (the “Mandatory Conversion Eligibility Date”) of: (1) the date the Company completes a Canadian Going
    Public Transaction or (2) the date on which the Streaming Transaction is fully funded under the terms of the Streaming Agreement,
    and subject to the Equity Conditions having been satisfied (or waived in writing by the Holder), during the period commencing
    on the Mandatory Conversion Eligibility Date through the applicable Mandatory Conversion Date (as defined below), the Company
    shall have the right to require the Holder to convert all, but not less than all, of the Conversion Amount then remaining
    under this Note as designated in the Mandatory Conversion Notice (as defined below) into fully paid, validly issued and non-assessable
    shares of Common Stock in accordance with this Section 3(c)(ii) at the Conversion Rate as of the Mandatory Conversion
    Date (as defined below) (a “Mandatory Conversion”). The Company may exercise its right to require conversion
    under this Section 3(c)(ii), by delivering to Holder, not less than five (5) or more than ten (10) Company Trading
    Days prior to the Mandatory Conversion Date, a written notice thereof by facsimile and overnight courier to the Holder of
    the Note and the Transfer Agent (the “Mandatory Conversion Notice” and the date the Holder received such
    notice by facsimile is referred to as the “Mandatory Conversion Notice Date”). The Mandatory Conversion
    Notice shall be irrevocable. The Mandatory Conversion Notice shall state (i) the Company Trading Day selected for the Mandatory
    Conversion in accordance with Section 3(c)(iii), which Company Trading Day shall be at least five (5) Company Trading
    Days but not more than ten (10) Company Trading Days following the Mandatory Conversion Notice Date (the “Mandatory
    Conversion Date”), (ii) the Conversion Amount of the Note subject to mandatory conversion from the Holder of the
    Note pursuant to this Section 3(c)(ii) and (iii) the number of shares of Common Stock to be issued to the Holder on
    the Mandatory Conversion Date.

 

    	 	 4	 

    	 		 

    

 

	 	(iii)	Company’s
    Failure to Timely Convert. If the Company shall fail to issue a certificate to the Holder for the number of shares of
    Common Stock to which the Holder is entitled upon conversion of any Conversion Amount on or prior to the date which is five
    (5) Business Days after the Conversion Date (a “Conversion Failure”), then (A) the Company shall pay damages
    in cash to the Holder for each date of such Conversion Failure in an amount equal to 1.25% of the product of (I) the sum of
    the number of shares of Common Stock not issued to the Holder on or prior to the Share Delivery Date and to which the Holder
    is entitled, and (II) the Closing Sale Price of the Common Stock on the Share Delivery Date and (B) the Holder, upon written
    notice to the Company, may void its Conversion Notice with respect to, and retain or have returned, as the case may be, any
    portion of this Note that has not been converted pursuant to such Conversion Notice; provided that the voiding of a Conversion
    Notice shall not affect the Company’s obligations to make any payments which have accrued prior to the date of such
    notice pursuant to this Section 3(c)(iii) or otherwise. At the Holder’s option in lieu of the foregoing, if within
    three (3) Company Trading Days after the Company’s receipt of the facsimile copy of a Conversion Notice the Company
    shall fail to issue and deliver a certificate to the Holder for the number of shares of Common Stock to which the Holder is
    entitled upon such holder’s conversion of any Conversion Amount, and if on or after such Trading Day the Holder purchases
    (in an open market transaction or otherwise) Common Stock to deliver in satisfaction of a sale by the Holder of Common Stock
    issuable upon such conversion that the Holder anticipated receiving from the Company (a “Common Stock Buy-In”),
    then the Company shall, within three (3) Business Days after the Holder’s request (which shall include written evidence
    of a Common Stock Buy-In) and in the Holder’s discretion, either (i) pay cash to the Holder in an amount equal to the
    Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased
    (the “Common Stock Buy-In Price”), at which point the Company’s obligation to deliver such certificate
    (and to issue such Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a certificate
    or certificates representing such Common Stock and pay cash to the Holder in an amount equal to the excess (if any) of the
    Common Stock Buy-In Price over the product of (A) such number of shares of Common Stock, times (B) the Closing Bid Price on
    the Conversion Date.

 

    	 	 5	 

    	 		 

    

 

	 	(iv)	Book-Entry.
    Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Note in accordance with
    the terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless (A) the full Principal
    represented by this Note is being converted, together with all accrued and unpaid Interest thereon, or (B) the Holder has
    provided the Company with prior written notice (which notice may be included in a Conversion Notice) requesting reissuance
    of this Note upon physical surrender of this Note. The Holder and the Company shall maintain records showing the portion of
    Principal and Interest converted and the dates of such conversions or shall use such other method, reasonably satisfactory
    to the Holder and the Company, so as not to require physical surrender of this Note upon conversion.

 

(4) Holder’s
conversion Limitations. The Company shall
not effect any conversion of this Note, and the Holder shall not have the right to convert any portion of this Note, pursuant
to Section 3 or otherwise, to the extent that after giving effect to such issuance after conversion as set forth on the
applicable Conversion Notice or Mandatory Conversion Notice, the Holder (together with the Holder’s Affiliates, and any
other Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess
of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of Common Shares
beneficially owned by the Holder and its Affiliates shall include the number of Common Shares issuable upon conversion of this
Note with respect to which such determination is being made, but shall exclude the number of Common Shares which would be issuable
upon (i) convert of the remaining, non-converted portion of this Note beneficially owned by the Holder or any of its Affiliates
and (ii) exercise or conversion of the unexercised or non-converted portion of any other securities of the Company (including,
without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation
contained herein beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for
purposes of this Section 4, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act
and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing
to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible
for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section
4 applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder together
with any Affiliates) and of which portion of this Note is convertible shall be in the sole discretion of the Holder, and the submission
of a Conversion Notice or Mandatory Conversion Notice shall be deemed to be the Holder’s determination of whether this Note
is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this
Note is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to
verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above
shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.
For purposes of this Section 4, in determining the number of outstanding Common Shares, the Holder may rely on the number
of outstanding Common Shares as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission,
as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or
the Transfer Agent setting forth the number of Common Shares outstanding. Upon the written or oral request of the Holder, the
Company shall within two Trading Days confirm orally and in writing to the Holder the number of Common Shares then outstanding.
In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of
securities of the Company, including this Note, by the Holder or its Affiliates since the date as of which such number of outstanding
Common Shares was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of the Common
Shares outstanding immediately after giving effect to the issuance of Common Shares issuable upon conversion of this Note. The
Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section
4, provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of the Common Shares outstanding
immediately after giving effect to the issuance of Common Shares upon conversion of this Note held by the Holder and the provisions
of this Section 4 shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until
the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and
implemented in a manner otherwise than in strict conformity with the terms of this Section 4 to correct this paragraph
(or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained
or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained
in this paragraph shall apply to a successor holder of this Note.

 

    	 	 6	 

    	 		 

    

 

(5) EVENTS
OF DEFAULT; RIGHTS UPON EVENT OF DEFAULT.

 

(a) Events
of Default. Each of the following events (so long as it is continuing) shall constitute an “Event of Default”:

 

	 	(i)	the
    Company’s (A) failure to cure a Conversion Failure with respect to any of the Notes by delivery of the required number
    of shares of Common Stock within ten (10) Business Days after the applicable Conversion Date or (B) notice, written or oral,
    to any holder of the Notes, including by way of public announcement or through any of its agents, at any time, of its intention
    not to comply with a request for conversion of any Notes into shares of Common Stock that is tendered for conversion in compliance
    with the provisions of the Notes and applicable securities laws;
	 	 	 
	 	(ii)	the
    Company’s failure to pay to the Holder any amount of Principal, premium (if any), Interest, or other amounts when and
    as due under this Note (including, without limitation, the Company’s failure to pay any redemption payments hereunder),
    any other Transaction Document or any other agreement, document, certificate or other instrument delivered in connection with
    the transactions contemplated hereby and thereby to which the Holder is a party, provided, that in the case of a failure to
    pay Interest when and as due, such failure shall constitute an Event of Default only if such failure continues for a period
    of at least five (5) Business Days;

 

    	 	 7	 

    	 		 

    

 

	 	(iii)	any
    event of default under, redemption of or acceleration prior to maturity of any Indebtedness of the Company or any of its Subsidiaries
    (as defined in the Securities Purchase Agreement) (other than the Notes) in an aggregate principal amount in excess of $250,000;
	 	 	 
	 	(iv)	the
    Company or any of its Subsidiaries (as defined in the Securities Purchase Agreement) pursuant to or within the meaning of
    Title 11, U.S. Code, or any similar Federal, foreign or state law for the relief of debtors (collectively, “Bankruptcy
    Law”), (A) commences a voluntary case, (B) consents to the entry of an order for relief against it in an involuntary
    case, (C) consents to the appointment of a receiver, trustee, assignee, liquidator or similar official (a “Custodian”),
    (D) makes a general assignment for the benefit of its creditors or (E) admits in writing that it is generally unable to pay
    its debts as they become due;

 

	 	(v)	a
    court of competent jurisdiction enters an order or decree under any Bankruptcy Law that (A) is for relief against the Company
    or any of its Subsidiaries in an involuntary case, (B) appoints a Custodian of the Company or any of its Subsidiaries or (C)
    orders the liquidation of the Company or any of its Subsidiaries;
	 	 	 
	 	(vi)	a
    final judgment or judgments for the payment of money aggregating in excess of $100,000 are rendered against the Company or
    any of its Subsidiaries and which judgments are not, within sixty (60) days after the entry thereof, bonded, discharged or
    stayed pending appeal, or are not discharged within sixty (60) days after the expiration of such stay; provided, however,
    that any judgment which is covered by insurance or an indemnity from a creditworthy party shall not be included in calculating
    the $100,000 amount set forth above so long as the Company provides the Holder with a written statement from such insurer
    or indemnity provider (which written statement shall be reasonably satisfactory to the Holder) to the effect that such judgment
    is covered by insurance or an indemnity and the Company will receive the proceeds of such insurance or indemnity within thirty
    (30) days of the issuance of such judgment or such later date as provided by the terms of such insurance policy;

 

    	 	 8	 

    	 		 

    

 

	 	(vii)	any
    representation or warranty made by the Company in any Transaction Document shall prove to be materially false or misleading
    as of the date made or deemed made;
	 	 	 
	 	(viii)	the
    Company shall breach any covenant or other term or condition of any Transaction Document and, in the case of a breach of a
    covenant or term or condition which is curable, such breach continues for a period of at least ten (10) consecutive Business
    Days; 
	 	 	 
	 	(ix)	any
    material provision of any Transaction Document ceases to be of full force and effect other than by its terms, or the Company
    contests in writing (or supports any other Person in contesting) the validity or enforceability of any provision of any Transaction
    Document;
	 	 	 
	 	(x)	the
    Security Agreement shall for any reason (other than pursuant to the terms thereof) cease to create a valid and perfected lien,
    with the priority required by the Security Agreement, on, and security interest in, any material portion of the Collateral
    purported to be covered thereby, subject to Permitted Liens; or 
	 	 	 
	 	(xi)	any
    breach of the Streaming Agreement by JV Co or the Company. 

 

(b) Redemption
Right. Upon (i) the occurrence and during the continuance of an Event of Default or (ii) a Streaming Transaction Condition
Failure on or before January 9, 2018, the Holder may take either or both of the following actions: (A) declare all or any part
of the outstanding Principal, accrued and unpaid Interest and any other amounts outstanding under this Note (the aggregate of
such amounts, the “Outstanding Note Obligations”) to be immediately due and payable, in each case together
with the Event of Default Premium; provided, however, that if an Event of Default shall occur under either clause (iv)
or clause (v) of Section 5(a), the outstanding Principal, accrued and unpaid Interest and any other amounts outstanding
under the Notes shall automatically become immediately due and payable, and (B) exercise of all rights and remedies available
to it under the Security Agreement, the other Transaction Documents and applicable law. Notwithstanding the foregoing, to the
extent that the Holder declares the Notes to be immediately due and payable (or the Notes become due and payable following an
Event of Default under clauses (iv) or (v) of Section 5(a)) and the (x) the sum of the Outstanding Note Obligations plus
the Event of Default Premium (if any) (the sum of such amounts, the “Event of Default Redemption Price”)
is less than (y) the product of (1) the Conversion Rate that would have been applicable to the Outstanding Note Obligations if
the Holder’s Note had been submitted for conversion into shares of Common Stock on the date immediately preceding such Event
of Default and (2) the Closing Sale Price of the Common Stock on the date immediately preceding such Event of Default (the product
of such amounts, the “Alternative Event of Default Redemption Price”), the Company shall pay to the Holder
in cash, in lieu of the Event of Default Redemption Price, the Alternative Event of Default Redemption Price. The Company shall
pay the Event of Default Redemption Price or the Alternative Event of Default Redemption Price, as applicable, to the Holder within
five (5) Business Days after the date that the Outstanding Note Obligations are declared due and payable, and upon full payment,
the Notes shall be extinguished.

 

    	 	 9	 

    	 		 

    

 

(6) RIGHTS
UPON FUNDAMENTAL TRANSACTION AND CHANGE OF CONTROL.

 

(a) Assumption.
The Company shall not enter into or be party to a Fundamental Transaction unless (i) the Successor Entity assumes in writing all
of the obligations of the Company under this Note and the other Transaction Documents in accordance with the provisions of this
Section 6(a) pursuant to written agreements in form and substance satisfactory to the Holder and approved by the Holder
(such approval not to be unreasonably withheld or delayed) prior to such Fundamental Transaction, including agreements to deliver
to the Holder in exchange for this Note a security of the Successor Entity evidenced by a written instrument substantially similar
in form and substance to this Note, including, without limitation, having a principal amount and interest rate equal to the principal
amount and the interest rate of this Note and having similar ranking to this Note, and satisfactory to the Holder (any such approval
not to be unreasonably withheld or delayed) and (ii) the Successor Entity (including its Parent Entity) is a publicly traded corporation
whose common stock is quoted on or listed for trading on an Eligible Market. Upon the occurrence of any Fundamental Transaction,
the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction,
the provisions of this Note referring to the “Company” shall refer instead to the Successor Entity), and may exercise
every right and power of the Company and shall assume all of the obligations of the Company under this Note with the same effect
as if such Successor Entity had been named as the Company herein. Upon consummation of the Fundamental Transaction, the Successor
Entity shall deliver to the Holder confirmation that there shall be issued upon conversion or redemption of this Note at any time
after the consummation of the Fundamental Transaction, in lieu of the shares of the Common Stock (or other securities, cash, assets
or other property) purchasable upon the conversion or redemption of this Note prior to such Fundamental Transaction, such shares
of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights)
which the Holder would have been entitled to receive upon the happening of such Fundamental Transaction had this Note been converted
immediately prior to such Fundamental Transaction, as adjusted in accordance with the provisions of this Note. The provisions
of this Section 6(a) shall apply similarly and equally to successive Fundamental Transactions and shall be applied without
regard to any limitations on the conversion or redemption of this Note.

 

(b) Holder
Redemption Right. No later than ten (10) days prior to the consummation of a Change of Control, the Company shall deliver
written notice thereof via facsimile and overnight courier to the Holder (a “Change of Control Notice”). At
any time during the period beginning after the Holder’s receipt of a Change of Control Notice and ending on the date of
the consummation of such Change of Control (or, in the event a Change of Control Notice is not delivered at least ten (10) days
prior to a Change of Control, at any time on or after the date which is ten (10) days prior to a Change of Control and ending
ten (10) days after the consummation of such Change of Control), the Holder may require the Company to redeem all or any portion
of this Note in cash by delivering written notice thereof (“Holder Change of Control Redemption Notice”) to
the Company, which Holder Change of Control Redemption Notice shall indicate the Conversion Amount the Holder is electing to redeem.
The portion of this Note subject to redemption pursuant to this Section 6 shall be redeemed by the Company at a price equal
to the greater of (i) the product of (x) the Conversion Amount being redeemed and (y) the quotient determined by dividing (A)
the Closing Sale Price of the Common Stock immediately following the public announcement of such proposed Change of Control by
(B) the Conversion Price and (ii) 110% of the Conversion Amount being redeemed (the “Holder Change of Control Redemption
Price”). Redemptions required by this Section 6(b) shall be made in accordance with the provisions of Section
12 and shall have priority to payments to common stockholders in connection with a Change of Control. Notwithstanding anything
to the contrary in this Section 6(b), until the Holder Change of Control Redemption Price (together with any interest thereon)
is paid in full, the Conversion Amount submitted for redemption under this Section 6(b) (together with any interest thereon)
may be converted, in whole or in part, by the Holder into Common Stock pursuant to Section 3.

 

    	 	 10	 

    	 		 

    

 

(7) RIGHTS
UPON ISSUANCE OF PURCHASE RIGHTS AND OTHER CORPORATE EVENTS. Subject to Section 6(a) hereof, in addition to and not
in substitution for any other rights hereunder, prior to the consummation of any Fundamental Transaction pursuant to which holders
of shares of Common Stock are entitled to receive securities or other assets with respect to or in exchange for shares of Common
Stock (a “Corporate Event”), the Company shall make appropriate provision to ensure that the Holder will thereafter
have the right to receive upon a conversion of this Note, (i) in addition to the shares of Common Stock receivable upon such conversion,
such securities or other assets to which the Holder would have been entitled with respect to such shares of Common Stock had such
shares of Common Stock been held by the Holder upon the consummation of such Corporate Event (without taking into account any
limitations or restrictions on the convertibility of this Note) or (ii) in lieu of the shares of Common Stock otherwise receivable
upon such conversion, such securities or other assets received by the holders of shares of Common Stock in connection with the
consummation of such Corporate Event in such amounts as the Holder would have been entitled to receive had this Note initially
been issued with conversion rights for the form of such consideration (as opposed to shares of Common Stock) at a conversion rate
for such consideration commensurate with the Conversion Rate. Provision made pursuant to the preceding sentence shall be in a
form and substance satisfactory to the Holder. The provisions of this Section 7 shall apply similarly and equally to successive
Corporate Events and shall be applied without regard to any limitations on the conversion or redemption of this Note.

 

(8) RIGHTS
UPON ISSUANCE OF OTHER SECURITIES.

 

(a) Pro
Rata Distributions. If the Company, at any time while this Note is outstanding, distributes to all holders of Common Stock
(i) evidences of its indebtedness, (ii) any security (other than a distribution of Shares covered by the preceding paragraph),
(iii) rights or warrants to subscribe for or purchase any security, or (iv) any other asset (in each case “Distributed
Property”), then, unless taken into account pursuant to Section 8(b) below, upon any conversion of this Note
that occurs after such record date, the Holder shall be entitled to receive, in addition to the shares of Common Stock otherwise
issuable upon such conversion, the Distributed Property that the Holder would have been entitled to receive in respect of such
number of shares of Common Stock immediately prior to such record date.

 

    	 	 11	 

    	 		 

    

 

(b) Adjustment
of Conversion Price upon Subdivision or Combination of Common Stock. If the Company at any time on or after the Issuance Date
subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of
Common Stock into a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately
reduced. If the Company at any time on or after the Issuance Date combines (by combination, reverse stock split or otherwise)
one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect
immediately prior to such combination will be proportionately increased.

 

(c) Adjustment
of Conversion Price upon Lower Price Issuance. If the Company at any time on or after the Issuance Date issues or agrees to
issue additional shares of Common Stock or rights, warrants, options or other securities or debt convertible, exercisable or exchangeable
for shares of Common Stock or otherwise entitling any Person to acquire shares of Common Stock (or modify any of the foregoing
which may be outstanding) to any Person or entity at an effective price per share or conversion or exercise price per share that
is less than the Conversion Price in effect at such time, then the Conversion Price shall automatically be reduced to such other
lower price. For purposes of the issuance and adjustment described in this section the issuance of any security of the Corporation
carrying the right to convert such security into shares of Common Stock or of any warrant, right or option to purchase Common
Stock shall result in the adjustments described above upon the sooner of the agreement to issue or actual issuance of such convertible
security, warrant, right or option and again at any time upon any subsequent issuances of shares of Common Stock upon exercise
of such conversion or purchase rights if such issuance is at a price lower than the Conversion Price in effect upon such issuance.

 

(9)
COLLATERAL. The indebtedness evidenced
by this Note is secured by the Security Agreement by and between the Company, certain other grantors party thereto, and the Holder,
which creates legal and valid encumbrances on an assignment of all of the Collateral (as defined in the Security Agreement). The
Holder shall have such rights with respect to the Collateral as set forth in the Security Agreement.

 

(10) NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Articles of Incorporation, Bylaws or through
any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, 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 this Note, and will
at all times in good faith carry out all of the provisions of this Note and take all action as may be required to protect the
rights of the Holder of this Note.

 

    	 	 12	 

    	 		 

    

 

(11) RESERVATION
OF AUTHORIZED SHARES. The Company shall reserve out of its authorized and unissued Common Stock a number of shares of Common
Stock for each of the Notes equal to 100% of the number of shares of Common Stock as shall be necessary to effect the conversion
of all of the Notes then outstanding as of the Issuance Date at the Conversion Price and any other shares issuable under the Transaction
Documents (the “Required Reserve Amount”). So long as any of the Notes are outstanding, the Company shall take
all action necessary to reserve and keep available out of its authorized and unissued Common Stock, solely for the purpose of
effecting the conversion of the Notes, 100% of the number of shares of Common Stock as shall from time to time be necessary to
effect the conversion of all of the Notes then outstanding The initial number of shares of Common Stock reserved for conversions
of the Notes and each increase in the number of shares so reserved shall be allocated pro rata among the holders of the Notes
based on the principal amount of the Notes held by each holder at the Initial Closing Date or increase in the number of reserved
shares, as the case may be (the “Authorized Share Allocation”). In the event that the Holder shall sell or
otherwise transfer any of such Holder’s Notes, each transferee shall be allocated a pro rata portion of the Holder’s
Authorized Share Allocation. Any shares of Common Stock reserved and allocated to any Person which ceases to hold any Notes shall
be allocated to the remaining holders of Notes, pro rata based on the principal amount of the Notes then held by such holders.

 

(12) HOLDER
REDEMPTIONS. If the Holder has submitted a Holder Change of Control Redemption Notice in accordance with Section 6(b),
the Company shall deliver the Holder Change of Control Redemption Price to the Holder, concurrently with the consummation of such
Change of Control if such notice is received by the Company at least five (5) Business Days prior to the consummation of such
Change of Control and within seven (7) Business Days after the Company’s receipt of such notice otherwise. In the event
of a redemption of less than the entire Principal of this Note, the Company shall promptly cause to be issued and delivered to
the Holder (after such original Note has been delivered to the Company) a new Note (in accordance with Section 16(d)) representing
the outstanding Principal which has not been redeemed. In the event that the Company does not pay the Holder Change of Control
Redemption Price to the Holder within the time period required, at any time thereafter and until the Company pays such unpaid
Holder Change of Control Redemption Price in full, the Holder shall have the option, in lieu of redemption, to require the Company
to promptly return to the Holder all or any portion of this Note representing the Conversion Amount that was submitted for redemption
and for which the Holder Change of Control Redemption Price has not been paid. Upon the Company’s receipt of such notice,
(x) the Holder Change of Control Redemption Notice shall be null and void with respect to such Conversion Amount and (y) the Company
shall immediately return this Note, or issue a new Note (in accordance with Section 16(d)) to the Holder representing such
Conversion Amount.

 

(13) RIGHTS.
Except as otherwise provided for herein, the Holder shall have no rights as a stockholder of the Company as a result of being
a holder of this Note, except as required by law, including, but not limited to, the Nevada Corporations Act, and as expressly
provided in this Note.

 

    	 	 13	 

    	 		 

    

 

(14) COVENANTS.

 

(a) Incurrence
of Indebtedness. So long as this Note is outstanding, the Company shall not, and the Company shall not permit any of its Subsidiaries
to, directly or indirectly, incur or Guarantee, assume or suffer to exist any Indebtedness, other than (i) the Indebtedness evidenced
by this Note, and (ii) Permitted Indebtedness, as defined herein.

 

(b) Existence
of Liens. So long as this Note is outstanding, the Company shall not, and the Company shall not permit any of its Subsidiaries
to, directly or indirectly, allow or suffer to exist any mortgage, lien, pledge, charge, security interest or other similar encumbrance
upon or in any property or assets (including accounts and contract rights) owned by the Company or any of its Subsidiaries (collectively
“Liens”) other than Permitted Liens, as defined herein.

 

(c) Restricted
Payments. The Company shall not, and the Company shall not permit any of its Subsidiaries to, directly or indirectly, redeem,
defease, repurchase, repay or make any payments in respect of, by the payment of cash or cash equivalents (in whole or in part,
whether by way of open market purchases, tender offers, private transactions or otherwise), all or any portion of any Indebtedness
described in clause (A) of the definition of “Permitted Indebtedness”, whether by way of payment in respect
of principal of (or premium, if any) or interest on such Indebtedness if at the time such payment is due or is otherwise made
or, after giving effect to such payment, an event constituting, or that with the passage of time and without being cured would
constitute, an Event of Default has occurred and is continuing.

 

(15) VOTE
TO ISSUE, OR CHANGE THE TERMS OF, NOTES. The written consent of the Holder shall be required for any amendment or waiver to
this Note or to the Security Agreement (including, to release all or substantially all of the Collateral, in any transaction or
series of related transactions); provided that no such amendment or waiver shall:

 

(a) postpone
(i) the Maturity Date or (ii) any Interest Payment Date, in each case without the consent of the Holder (it being understood that
the Holder may waive any increase in the Interest Rate that would otherwise take effect during the continuance of an Event of
Default);

 

(b) reduce
the Principal of, or the Interest Rate or any premiums specified herein on, the Note, or any other amounts payable hereunder or
under any other instrument or agreement with the Holder, without the consent of the Holder; only the consent of the Holder shall
be necessary to alter the amount by which the Interest Rate may be increased during the continuance of an Event of Default or
to waive any of the obligation of the Company to pay such increased rate during the continuance of an Event of Default); or

 

(c) change
any provision of this Section 15, waive or otherwise modify any rights hereunder or to make any determination or grant
any consent hereunder, without the consent of the Holder, to the extent adversely affected thereby; and

 

(d) provided
further that no amendment, waiver or consent shall, unless in writing and signed by the Holder of Notes required above, affect
the rights or duties of the Holder under this Note or any other Transaction Document.

 

    	 	 14	 

    	 		 

    

 

(16) REISSUANCE
OF THIS NOTE.

 

(a) Transfer.
If this Note is transferred, the Holder shall surrender this Note to the Company, whereupon the Company will forthwith issue and
deliver upon the order of the Holder a new Note (in accordance with Section 16(d)), registered as the Holder may request,
representing the outstanding Principal being transferred by the Holder and, if less than the entire outstanding Principal is being
transferred, a new Note (in accordance with Section 16(d)) to the Holder representing the outstanding Principal not being
transferred. The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions
of Section 3(c)(iii), following conversion or redemption of any portion of this Note, the outstanding Principal represented
by this Note may be less than the Principal stated on the face of this Note.

 

(b) Lost,
Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of an indemnification undertaking by the
Holder to the Company, in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company
shall execute and deliver to the Holder a new Note (in accordance with Section 16(d)) representing the outstanding Principal.

 

(c) Note
Exchangeable for Different Denominations. This Note is exchangeable, upon the surrender hereof by the Holder at the principal
office of the Company, for a new Note or Notes (in accordance with Section 16(d) and in principal amounts of at least $1,000)
representing in the aggregate the outstanding Principal of this Note, and each such new Note will represent such portion of such
outstanding Principal as is designated by the Holder at the time of such surrender.

 

(d) Issuance
of New Notes. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall
be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the Principal remaining outstanding
(or in the case of a new Note being issued pursuant to Section 16(a) or Section 16(c), the Principal designated
by the Holder which, when added to the principal represented by the other new Notes issued in connection with such issuance, does
not exceed the Principal remaining outstanding under this Note immediately prior to such issuance of new Notes), (iii) shall have
an issuance date, as indicated on the face of such new Note which is the same as the Issuance Date of this Note, (iv) shall have
the same rights and conditions as this Note, and (v) shall represent accrued and unpaid Interest of this Note from the Issuance
Date.

 

    	 	 15	 

    	 		 

    

 

(17) REMEDIES,
CHARACTERIZATIONS, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF.

 

(a) The
remedies provided in this Note shall be cumulative and in addition to all other remedies available under this Note and any of
the other Transaction Documents, at law or in equity (including a decree of specific performance and/or other injunctive relief),
and, nothing herein shall limit the Holder’s right to pursue monetary damages for any failure by the Company to comply with
the terms of this Note. Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation
thereof) shall be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any
other obligation of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company
therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all
other available remedies, to an injunction restraining any breach, without the necessity of showing economic loss and without
any bond or other security being required.

 

(b) The
right of the Holder to receive payment of Principal, premium, if any, and Interest on the Note, on or after the respective due
dates set forth herein (including in connection with a Change of Control), or convert any portion of the Note into shares of Common
Stock on the terms and conditions set forth herein, or to bring suit for the enforcement of any such right to payment or conversion,
shall not be impaired or affected without the consent of the Holder.

 

(18) PAYMENT
OF COLLECTION, ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in the hands of an attorney for collection or enforcement
or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this
Note or to enforce the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company
or other proceedings affecting Company creditors’ rights and involving a claim under this Note, then the Company shall pay
the costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization,
receivership or other proceeding, including, but not limited to, reasonable attorneys’ fees and disbursements.

 

(19) Registered
Obligation. The Company shall establish and
maintain a record of ownership (the “Register”) in which it will register by book entry the interest of the
initial Holder and of each subsequent assignee in this Note, and in the right to receive any payments of principal and interest
or any other payments hereunder, and any assignment of any such interest. Notwithstanding anything herein to the contrary, this
Note is intended to be treated as a registered obligation for federal income tax purposes and the right, title, and interest of
the Holder and its assignees in and to payments under this Note shall be transferable only upon notation of such transfer in the
Register. This Section 19 shall be construed so that the Note is at all times maintained in “registered form”
within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Internal Revenue Code (the “Code”) and
any related regulations (or any successor provisions of the Code or such regulations).

 

    	 	 16	 

    	 		 

    

 

(20) FAILURE
OR INDULGENCE NOT WAIVER. No failure or delay on the part of the Holder of this Note in exercising any power or right under
this Note shall operate as a waiver thereof, nor shall any single or partial exercise of any such power or right preclude any
other or further exercise thereof of the exercise of any other power or right. No notice to the Company in any case shall entitle
the Company to any notice in similar or other circumstances. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law.

 

(21) DISPUTE
RESOLUTION. In the case of a dispute as to the determination of the Redemption Price or the arithmetic calculation of the
Conversion Rate or the Redemption Price, the Company shall submit the disputed determinations or arithmetic calculations via facsimile
within one (1) Business Day of receipt, or deemed receipt, of the Conversion Notice or the Holder Change of Control Redemption
Notice or other event giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable
to agree upon such determination or calculation of the Redemption Price or the Conversion Rate, as applicable, within one (1)
Business Day of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company and the
Holder shall, within one (1) Business Day thereafter submit via facsimile the disputed arithmetic calculation of the Conversion
Rate or the Redemption Price to the Company’s independent, outside investment bank or accountant. The Company, at the Company’s
expense, shall cause the investment bank or the accountant, as the case may be, to perform the determinations or calculations
and notify the Company and the Holder of the results no later than five (5) Business Days from the time it receives the disputed
determinations or calculations. Such accountant’s determination or calculation, as the case may be, shall be binding upon
all parties absent demonstrable error. To the extent of a good faith dispute by the Company, any related penalty payments due
hereunder shall not be made unless and until such dispute is resolved against the Company.

 

(22) NOTICES;
PAYMENTS.

 

(a) Notices.
The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Note, including in reasonable
detail a description of such action and the reason therefore. Without limiting the generality of the foregoing, the Company will
give written notice to the Holder (i) within one (1) Business Day upon any adjustment of the Conversion Price, setting forth in
reasonable detail, and certifying, the calculation of such adjustment and (ii) at least fifteen (15) days prior to the date on
which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the Common Stock, (B)
with respect to any pro rata subscription offer to holders of Common Stock or (C) for determining rights to vote with respect
to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to
the public prior to or in conjunction with such notice being provided to the Holder.

 

    	 	 17	 

    	 		 

    

 

All
communications under this Note shall be in writing and shall be delivered by hand, email or facsimile or mailed by overnight courier
or by registered or certified mail, postage prepaid:

 

	 	(i)	if
    to the Company: 
	 	 	 
	 	 	Gold
    Torrent, Inc.
	 	 	960
    Broadway, Suite 530
	 	 	Boise,
    ID 83706
	 	 	Attn:
    Daniel Kunz, CEO
	 	 	 
	 	 	with
    a copy (which shall not constitute notice), to: 
	 	 	 
	 	 	Kane
    Kessler P.C.
	 	 	666
    Third Avenue 
	 	 	New
    York, NY 10017-4041
	 	 	Attn:
    Peter Campitiello
	 	 	Email:
    pcampitiello@kanekessler.com
	 	 	 
	 	(ii)	if
    to the Holder
	 	 	 
	 	 	CRH
    MEZZANINE PTE. LTD. 
	 	 	10
    Changi Business Park Central 2
	 	 	#05-01
    HansaPoint
	 	 	Singapore
    486030
	 	 	Attn:
    Andrew Wehrley
	 	 	Email:
    andrew.wehrley@cartesianroyalty.com
	 	 	 
	 	 	with
    a copy (which shall not constitute notice)
	 	 	 
	 	 	Cartesian
    Capital Group, LLC 
	 	 	505
    Fifth Avenue, 15th Floor 
	 	 	New
    York, NY 10017
	 	 	Attn:
    Peter Yu
	 	 	Email:
    peter.yu@cartesiangroup.com
	 	 	 
	 	 	with
    a copy (which shall not constitute notice), to: 
	 	 	 
	 	 	Dorsey
    & Whitney LLP
	 	 	1400
    Wewatta Street
	 	 	Suite
    400 
	 	 	Denver,
    CO 80202 
	 	 	Attn:
    Kenneth G. Sam 
	 	 	Email:
    sam.kenneth@dorsey.com

 

Any
notice so addressed shall be deemed to be given: if delivered by hand, email or facsimile or other electronic transmission, on
the date of such delivery if a Business Day and delivered during regular business hours, otherwise the first (1st )
Business Day thereafter; if mailed by overnight courier, on the first Business Day following the date of such mailing; and if
mailed by registered or certified mail, on the third (3rd) Business Day after the date of such mailing.

 

    	 	 18	 

    	 		 

    

 

(b)
Payments. Whenever any payment of cash is to be made by the Company to any Person pursuant to this Note, such payment shall
be made in lawful money of the United States of America by a check drawn on the account of the Company and sent via overnight
courier service to such Person at such address as previously provided to the Company in writing; provided that the Holder may
elect to receive a payment of cash via wire transfer of immediately available funds by providing the Company with prior written
notice setting out such request and the Holder’s wire transfer instructions. Whenever any amount expressed to be due by
the terms of this Note is due on any day which is not a Business Day, the same shall instead be due on the next succeeding day
which is a Business Day.

 

(c) Withholding
Taxes. All payments made by the Company hereunder shall be made without withholding for or on account of any present or future
taxes (other than overall net income taxes imposed on the Holder). If any such withholding is so required, the Company agrees
to pay by way of a tax gross-up, fifty percent (50%) the total amount of the withholding tax payable by the Holder (the “Tax
Gross-Up”). The Company shall pay the Tax Gross-Up to the appropriate authority before penalties attach thereto or interest
accrues thereon and pay to the recipient such additional amount as may be necessary to ensure that the net amount actually received
by the recipient free and clear of such taxes (including taxes on such additional amount) is equal to the amount that the recipient
would have received had such withholding not been made. If the recipient is required to pay any such taxes, penalties or interest,
the Company shall reimburse the recipient for that payment on demand. If the Company pays any Tax Gross-Up or any other taxes,
penalties or interest in accordance with this Section 22(c), it shall deliver official tax receipts or other evidence of payment
to the recipient on whose account such withholding was made on or before the thirtieth day after payment. The Holder agrees to
provide, promptly following the Company’s request therefore, such forms or certifications as it is legally able to provide
to establish an exemption from, or a reduction in, any withholding taxes that might otherwise apply.

 

(23) CANCELLATION.
After all Principal, accrued Interest and other amounts at any time owed on this Note have been paid in full, this Note shall
automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued.

 

(24) WAIVER
OF NOTICE. To the extent permitted by law, the Company hereby waives demand, notice, protest and all other demands and notices
in connection with the delivery, acceptance, performance, default or enforcement of this Note and the Securities Purchase Agreement.

 

(25) GOVERNING
LAW; WAIVER OF JURY TRIAL. THIS NOTE IS TO BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW. AT THE OPTION OF THE HOLDER, THIS NOTE MAY BE ENFORCED IN ANY FEDERAL
COURT OR ANY NEW YORK STATE COURT SITTING IN NEW YORK COUNTY, NEW YORK; AND THE
COMPANY CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT THE VENUE IN SUCH FORUMS IS NOT
CONVENIENT. IF THE COMPANY COMMENCES ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY
OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS NOTE, THE HOLDER AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED
TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-DESCRIBED, OR, IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE
SUCH CASE DISMISSED WITHOUT PREJUDICE.

 

    	 	 19	 

    	 		 

    

 

THE
PARTIES IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

(26) CERTAIN
DEFINITIONS. For purposes of this Note, the following terms shall have the following meanings:

 

(a) “Affiliate”
has the meaning specified in Rule 12b-2 under the Exchange Act; provided that no Holder shall be deemed an Affiliate of
the Company or its Subsidiaries for purposes of this Agreement; provided further that neither portfolio companies (as such
term is commonly used in the private equity industry) of a Holder nor limited partners, non-managing members or other similar
direct or indirect investors in an Investor shall be deemed to be Affiliates of such Investor. The term “Affiliated”
has a correlative meaning.

 

(b) “Articles
of Incorporation” means the Company’s Articles of Incorporation filed with the Nevada Secretary of State, and
as may be amended from time to time.

 

(c)
“Bloomberg” means Bloomberg Financial Markets.

 

(d) “Bylaws”
means the Company’s bylaws, an as may be amended, from time to time.

 

(e) “Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York are authorized
or required by law to remain closed.

 

(f) “Canadian
Exchange” means the Toronto Stock Exchange or the TSX Venture Exchange.

 

(g) “Canadian
Going Public Transaction” means the completion by the Company of each of the items listed under either (i) or (ii) below:

 

	 	(i)	an
    initial public offering by the Company of its Common Stock with a concurrent listing on a Canadian Exchange (“Canadian
    Public Offering”); or
	 	 	 
	 	(ii)
    	obtaining
    a listing of the Common Stock on a Canadian Exchange whether by means of a reverse take-over, merger, amalgamation, arrangement,
    take-over bid, insider bid, reorganization, joint venture, sale of all or substantially all assets, exchange of assets or
    similar transaction or other combination with a public corporation. 

 

    	 	 20	 

    	 		 

    

 

(h)
“Change of Control” means any Fundamental Transaction other than (A) a Fundamental Transaction in which holders
of the Company’s voting power immediately prior to the Fundamental Transaction continue after the Fundamental Transaction
to hold publicly traded securities and, directly or indirectly, the voting power of the surviving entity or entities necessary
to elect a majority of the members of the board of directors (or their equivalent if other than a corporation) of such entity
or entities, (B) a Fundamental Transaction with the Holder, any Affiliate or any Person otherwise related to or associated with
the Holder, or (C) pursuant to a migratory merger effected solely for the purpose of changing the jurisdiction of incorporation
of the Company.

 

(i) “Closing
Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid
price and last closing trade price, respectively, for such security, as reported by Bloomberg (whether or not such security is
trading on an Eligible Market at such time), or, if the market on which the security is trading begins to operate on an extended
hours basis and does not designate the closing bid price or the closing trade price, as the case may be, then the last bid price
or last trade price, respectively, of such security prior to 4:00 p.m., New York Time, as reported by Bloomberg, or, if the market
on which the security is trading is not the principal securities exchange or trading market for such security, the last closing
bid price or last trade price, respectively, of such security on the principal securities exchange or trading market where such
security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing bid price or last trade
price, respectively, of such security in the over-the-counter market on the electronic bulletin board for such security as reported
by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security by Bloomberg, the average
of the bid prices, or the ask prices, respectively, of any market makers for such security as reported in the “pink sheets”
by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Bid Price or the Closing Sale Price cannot be
calculated for a security on a particular date on any of the foregoing bases, the Closing Bid Price or the Closing Sale Price,
as the case may be, of such security on such date shall be the fair market value as mutually determined by the Company and the
Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then such dispute shall
be resolved pursuant to Section 21. All such determinations to be appropriately adjusted for any stock dividend, stock
split, stock combination or other similar transaction during the applicable calculation period.

 

(j) “Closing
Date” shall have the meaning set forth in the Securities Purchase Agreement, which date is the date the Company initially
issued Notes pursuant to the terms of the Securities Purchase Agreement.

 

(k) “Collateral”
has the meaning given to such term in the Security Agreement.

 

    	 	 21	 

    	 		 

    

 

(l) “Common
Stock” means the shares of the Company’s common stock, $0.001 par value.

 

(m)
“Common Stock Equivalents” means any Convertible Securities, ratchet rights, true up rights or similar rights
or obligations of the Company, which are directly or indirectly convertible into or exercisable or exchangeable for Common Stock
without payment of additional consideration.

 

(n)
“Company Trading Day” means any day on which the Common Stock is traded on the principal securities exchange
or securities market on which the Common Stock is then traded; provided that “Company Trading Day” shall not include
any day on which the Common Stock is scheduled to trade on such exchange or market for less than 4.5 hours or any day that the
Common Stock is suspended from trading during the final hour of trading on such exchange or market (or if such exchange or market
does not designate in advance the closing time of trading on such exchange or market, then during the hour ending at 4:00 p.m.,
New York Time).

 

(o) “Contractual
Obligation” means, with respect to any Person, any written contract, agreement, deed, mortgage, lease, sublease, license,
sublicense or other legally enforceable commitment, promise, undertaking, obligation, arrangement, instrument or understanding,
to which or by which such Person is a party or otherwise subject or bound or to which or by which any property, business, operation
or right of such Person is subject or bound.

 

(p)
“Convertible Securities” means with respect to any issuer, any stock or securities (other than Options) directly
or indirectly convertible into or exercisable or exchangeable for such issuer’s common stock.

 

(q) “Distribution”
means (i) any payment or distribution made by the Company on account of the Note, whether in the form of cash, securities or other
property, by setoff or otherwise, or (ii) any redemption, purchase or other acquisition by the Company of all or a portion of
the Note, in each of cases (i) and (ii), other than a payment, distribution, redemption, purchase or other acquisition (x) made
through the conversion or exchange of all or a portion of the Note into or for (I) equity securities of the Company (including
pursuant to the terms hereof) or (II) debt securities of the Company or (y) made through the accrual and addition to principal
of capitalized interest in the amounts and at the times specified in this Note.

 

(r)
“Eligible Market” means a national security exchange that has registered with the SEC under Section 6 of the
Exchange Act or a Canadian Exchange.

 

(s) “Equity
Conditions” means each of the following conditions: (i) during the period beginning fifteen (15) Company Trading Days
prior to the applicable date of determination and ending on and including the applicable date of determination (the “Equity
Conditions Measuring Period”), the Company shall have delivered Conversion Shares upon conversion of the Notes on a
timely basis as set forth in Section 3(c)(i) hereof; (ii) on each day during the Equity Conditions Measuring Period, any
applicable shares of Common Stock to be issued in connection with the event requiring determination may be issued in full without
violating the rules or regulations of the applicable Eligible Market, if applicable; (iii) during the Equity Conditions Measuring
Period, the Company shall not have failed to timely make any payments within five (5) Business Days of when such payment is due
pursuant to any Transaction Document; (iv) during the Equity Conditions Measuring Period, there shall not have occurred either
(A) the public announcement of a pending, proposed or intended Fundamental Transaction which has not been abandoned, terminated
or consummated, or (B) an Event of Default; (v) during the period commencing on the Interest Election Date or the Mandatory Conversion
Notice Date, as applicable, and ending on the Interest Payment Date or the Mandatory Conversion Date, as applicable, an event
that with the passage of time or giving of notice would constitute an Event of Default; (vi) during the Equity Conditions Measuring
Period, the Company shall have no knowledge of any fact that would cause any shares of Common Stock issuable upon conversion of
the Notes not to be eligible for resale without restriction pursuant to Rule 144 and any applicable state securities laws; (vii)
during the Equity Conditions Measuring Period, the Company otherwise shall have been in compliance with and shall not have breached
any provision, covenant, representation or warranty of any Transaction Document to the extent that such breach would have a Material
Adverse Effect (as defined in the Securities Purchase Agreement);; (viii) prior to the Mandatory Conversion Eligibility Date the
Company shall have timely filed each of its required reports under the Exchange Act; and (x) prior to the Mandatory Conversion
Eligibility Date any shares required for the Mandatory Conversion have been duly authorized and shall be upon issuance fully-paid
and validly issued.

 

    	 	 22	 

    	 		 

    

 

(t) “Event
of Default Premium” means 10% of the Outstanding Note Obligations.

 

(u) “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(v)
“Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more related transactions,
(i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person, or (ii) sell,
assign, transfer, convey or otherwise dispose of all or substantially all of the assets of the Company to another Person, or (iii)
allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than the 50% of the
outstanding shares of Common Stock (not including any shares of Common Stock held by the Person or Persons making or party to,
or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv) consummate
a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off
or scheme of arrangement) with another Person whereby such other Person acquires more than the 50% of the outstanding shares of
Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated
or affiliated with the other Persons making or party to, such stock purchase agreement or other business combination), or (v)
reorganize, recapitalize or reclassify its Common Stock. Notwithstanding anything to the contrary set forth herein, a Fundamental
Transaction shall not include any of the following (i)any transaction with the Holder, any Affiliate of the Holder, or any Person
otherwise related to or associated with the Holder; (ii) any transaction or series of related transactions pursuant to which a
Canadian Going Public Transaction may be completed; or (iii) any transaction effected pursuant to any Transaction Document.

 

    	 	 23	 

    	 		 

    

 

(w) “GAAP”
means United States generally acceptable accounting principles.

 

(x) “Guarantee”
means, with respect to any Person, (a) any guarantee of the payment or performance of, or any contingent obligation in respect
of, any Indebtedness or other Liability of any other Person, (b) any other arrangement whereby credit is extended to any obligor
(other than such Person) on the basis of any promise or undertaking of such Person (i) to pay the Indebtedness or other Liability
of such obligor, (ii) to purchase any obligation owed by such obligor, (iii) to purchase or lease assets under circumstances that
are designed to enable such obligor to discharge one or more of its obligations or (iv) to maintain the capital, working capital,
solvency or general financial condition of such obligor and (c) any liability as a general partner of a partnership or as a venturer
in a joint venture in respect of Indebtedness or other Liabilities of such partnership or venture.

 

(y)
“Indebtedness” means, with respect to any Person, and without duplication, all Liabilities, including all obligations
in respect of principal, accrued interest, penalties, fees and premiums, of such Person (a) for borrowed money (including amounts
outstanding under overdraft facilities), (b) evidenced by notes, bonds, debentures or other similar Contractual Obligations, (c)
in respect of “earn-out” obligations and other obligations for the deferred purchase price of property, goods or services
(other than trade payables or accruals incurred in the ordinary course of business), (d) for the capitalized liability under all
capital leases of such Person (determined in accordance with GAAP), (e) in respect of letters of credit and bankers’ acceptances,
(f) for Contractual Obligations relating to interest rate protection, swap agreements and collar agreements, in each case, to
the extent payable if such Contractual Obligation is terminated at the Closing, and (g) in the nature of Guarantees of the obligations
described in clauses (a) through (f) above of any other Person.

 

(z)
“Interest Period” means, initially, the period beginning on and including the Issuance Date and ending on and
including February 28, 2017 and each successive month for each year until the Maturity Date.

 

(aa) “Interest
Rate” means ten percent (10.0%) per annum; provided that upon the occurrence and during the continuance of an
Event of Default, the Interest Rate shall be increased to fifteen percent (15.0%) per annum. In the event that such Event of Default
is subsequently cured or waived, the Interest Rate shall be reduced to ten percent (10.0%) per annum as of the date of such cure
or waiver, it being understood, however, that unless the Holder otherwise agree in writing, such reduction shall not apply retroactively
to the period when such Event of Default was continuing.

 

(bb) “Investor
Rights Agreement” means the Investors Rights Agreement by and among the Company, the Holder, and CRH FUNDING II PTE.
LTD., a Singapore private limited company, (the “Stream Investor”) dated February 9, 2017.

 

(cc) “Issuance
Date” has the meaning set forth in Section 2 hereof.

 

(dd) “JV
Co” means Alaska Gold Torrent, LLC, an Alaska limited liability company;

 

    	 	 24	 

    	 		 

    

 

(ee) “Liability”
means, with respect to any Person, any liability or obligation of such Person whether known or unknown, whether asserted or unasserted,
whether determined, determinable or otherwise, whether absolute or contingent, whether accrued or unaccrued, whether liquidated
or unliquidated, whether directly incurred or consequential, whether due or to become due and whether or not required under GAAP
to be accrued on the financial statements of such Person.

 

(ff)
“Options” means with respect to any issuer, any rights, warrants or options to subscribe for or purchase such
issuer’s common stock or such issuer’s Convertible Securities.

 

(gg) “Outstanding
Note Obligations” shall have the meaning given to such term in Section 5(b).

 

(hh) “Parent
Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock
or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity,
the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

 

(ii)
 “Permitted Indebtedness” means (A) Indebtedness secured by Permitted Liens, (B) Indebtedness to trade creditors
or for professional services incurred in the ordinary course of business, (C) Indebtedness outstanding as of the date hereof,
and (D) extensions, refinancings and renewals of any items of Permitted Indebtedness described in clauses (A) through (C) above,
provided that the principal amount is not increased or the terms modified to impose more burdensome terms upon the Company or
its Subsidiary, as the case may be.

 

(jj)
 “Permitted Liens” means (i) any Lien for taxes not yet due or delinquent or being contested in good faith
by appropriate proceedings for which adequate reserves have been established in accordance with GAAP, (ii) any statutory Lien
arising in the ordinary course of business by operation of law with respect to a liability that is not yet due or delinquent,
(iii) any Lien created by operation of law, such as materialmen’s liens, mechanics’ liens and other similar liens,
arising in the ordinary course of business with respect to a liability that is not yet due or delinquent or that are being contested
in good faith by appropriate proceedings, (iv) Liens securing the Company’s obligations under the Notes, (v) Liens (A) upon
or in any equipment acquired or held by the Company or any of its Subsidiaries to secure the purchase price of such equipment
or indebtedness incurred solely for the purpose of financing the acquisition or lease of such equipment, or (B) existing on such
equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired and improvements
thereon, and the proceeds of such equipment, (vi) Liens incurred in connection with the extension, renewal or refinancing of the
indebtedness secured by Liens of the type described in clauses (i) through (v) above, provided that any extension, renewal or
replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the Indebtedness
being extended, renewed or refinanced does not increase, (vii) leases or subleases and licenses and sublicenses granted to others
in the ordinary course of the Company’s business, not interfering in any material respect with the business of the Company
and its Subsidiaries taken as a whole, (viii) Liens in favor of customs and revenue authorities arising as a matter of law to
secure payments of custom duties in connection with the importation of goods, and (ix) Liens arising from judgments, decrees or
attachments in circumstances not constituting an Event of Default under Section 5(a)(vi).

 

    	 	 25	 

    	 		 

    

 

(kk)
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a
trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

 

(ll)
 “Proceeding” means any voluntary or involuntary insolvency, bankruptcy, receivership, custodianship, liquidation,
dissolution, reorganization, assignment for the benefit of creditors, appointment of a custodian, receiver, trustee or other officer
with similar powers or any other proceeding for the liquidation, dissolution or other winding up of a Person.

 

(mm) “Project”
has the meaning set forth in the Streaming Agreement.

 

(nn) “Redemption
Price” means any of an Event of Default Redemption Price, Alternative Event of Default Redemption Price or Holder Change
of Control Redemption Price.

 

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

 

(pp) “Security
Agreement” means that certain Security and Pledge Agreement by and among the Company, the Holder, and the Stream Investor
dated February 9, 2017 entered into pursuant to the Securities Purchase Agreement.

 

(qq) “Securities
Purchase Agreement” means that certain Convertible Preferred Note and Investment Agreement by and among the Company,
the Holder, and the Stream Investor dated February 9, 2017 pursuant to which the Company issued the Notes and Warrants.

 

(rr)
 “Streaming Agreement” means that certain Gold and Silver Prepayment Agreement by and among the JV Co, the
Company, Miranda U.S.A. Corp., and the Stream Investor dated February 9, 2017 pursuant to which Stream Investor agreed to advance
up to US$11,250,000 to fund development of the Project.

 

(ss)
 “Streaming Transaction” means the transactions contemplated under the Streaming Agreement.

 

(tt)
 “Streaming Transaction Condition Failure” means that the Streaming Transaction is not fully funded due
to the Company’s or JV Co’s failure to meet all conditions precedent in the Streaming Agreement.

 

(uu)
“Successor Entity” means the Person, which may be the Company, formed by, resulting from or surviving any Fundamental
Transaction or the Person with which such Fundamental Transaction shall have been made, provided that if such Person is not a
publicly traded entity whose common stock or equivalent equity security is quoted or listed for trading on an Eligible Market,
Successor Entity shall mean such Person’s Parent Entity.

 

    	 	 26	 

    	 		 

    

 

(vv) “Transaction
Documents” has the meaning ascribed to such term in the Securities Purchase Agreement.

 

(ww) “Transfer
Agent” means Island Capital Management, LLC dba Island Stock Transfer.

 

(xx) “Tax
Gross-Up” has the meaning ascribed to such term in Section 22(c).

 

(yy)
“Warrants” shall mean those warrants, exercisable until February 9, 2020 to acquire shares of Common Stock
of the Company at US$0.50 per share, subject to adjustment, issued to the Holder or its designees under the terms the Securities
Purchase Agreement, and shall include all warrants issued in exchange therefor or replacement thereof.

 

(27) Indemnity.
Company agrees to indemnify, pay, defend, and hold Holder, its officers, directors, members, partners, shareholders, employees,
agents, successors and assigns, including any subsequent holder of the Note, (collectively, the “Indemnitees”)
harmless from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, causes of action,
suits, claims, tax liabilities, broker’s or finders’ fees (to the extent claiming through Company or any affiliate
thereof), costs, expenses, and disbursements of any kind or nature whatsoever (including the reasonable fees and disbursements
of counsel for such Indemnitees in connection with any investigative, administrative, or judicial proceeding commenced or threatened,
whether or not such Indemnitee shall be designated a party thereto) that may be imposed on, incurred by, or asserted against that
Indemnitee, in any manner arising out of or relating to the Note (including enforcement thereof), except for any such liabilities,
obligations, losses, claims, etc. arising from the gross negligence, willful misconduct or fraud of Holder.

 

(28) Successors
and Assigns. This Note shall (a) be binding
upon the Company and its successors and assigns, and (b) inure, together with the rights and remedies of the Holder hereunder,
to the benefit of, and be enforceable by, the Holder and its successors, heirs, transferees and assigns. Notwithstanding anything
to the contrary, (a) the Company may not assign its rights or delegate its obligations hereunder without the prior written consent
of the Holder and (b) the Holder may at any time sell, assign, transfer, grant participations in, or otherwise dispose of any
portion of its rights or obligations under this Note to any Person or entity.

 

(29) CONSTRUCTION;
HEADINGS. This Note shall be deemed to be jointly drafted by the Company and the Holder and shall not be construed against
any person as the drafter hereof. The headings of this Note are for convenience of reference and shall not form part of, or affect
the interpretation of, this Note.

 

[Signature
Page Follows]

 

    	 	 27	 

    	 		 

    

 

IN
WITNESS WHEREOF, the Company has caused this Note to be duly executed as of the Issuance Date set out above.

 

	 	GOLD
    TORRENT, INC.
	 	 
	 	By:
    	       
	 	Name:
    	 
	 	Title:
    	 

 

    	 	 28	 

    	 		 

    

 

EXHIBIT
I

 

GOLD
TORRENT, INC.

CONVERSION NOTICE

 

TO
BE EXECUTED BY THE REGISTERED HOLDER TO CONVERT THIS NOTE INTO COMMON STOCK

 

Reference
is made to the Secured Convertible Preferred Note (the “Note”) issued to the undersigned by Gold Torrent, Inc.
(the “Company”). In accordance with and pursuant to the Note, the undersigned hereby elects to convert the
Conversion Amount (as defined in the Note) of the Note indicated below into shares of Common Stock, par value $0.001 per share
(the “Common Stock”), of the Company as of the date specified below. The undersigned hereby makes the representations
and warranties set forth in Section 3 of the Convertible Note Purchase and Investment Agreement.

 

	 	Date
    of Conversion:	 

 

	 	Aggregate
    Conversion Amount to be converted:	 

 

Please
confirm the following information:

 

	 	Conversion
    Price:	 

 

	 	Number
    of shares of Common Stock to be issued:	 

 

Please
issue the Common Stock into which the Note is being converted in the following name and to the following address:

 

	 	Issue
    to:	 
	 	 	 
	 	 	 

 

	 	Facsimile
    Number:	 

 

	 	Authorization:	 

 

	 	By:
    	 
	 	 	 
	 	Title:	 

 

	Dated:	 

 

	 	Account
    Number:	       
	 	  (if
    electronic book entry transfer)

 

	 	Transaction
    Code Number:	      
	 	  (if
    electronic book entry transfer)

 

    	 	 	 

    	 		 

    

 

ACKNOWLEDGMENT

 

The
Company hereby acknowledges this Conversion Notice and hereby directs Island Capital Management, LLC dba Island Stock Transfer
(“Island Stock Transfer”) to issue the above indicated number of shares of Common Stock in accordance with the Transfer
Agent Instructions dated ________ ___, 20__ from the Company and acknowledged and agreed to by Island Stock Transfer.

 

	 	GOLD
    TORRENT, INC.
	 	 	 
	 	By:
    	        
	 	Name:	 
	 	Title:

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