Document:

EXHIBIT 4.1
                                                                     -----------

                               TLC VENTURES CORP.
                         700 - 900 West Hastings Street
                              Vancouver, BC V6C 1E5

February 13, 2004

BY ELECTRONIC MAIL

Rubicon Minerals Corporation
888 - 1100 Melville Street
Vancouver, BC
V6E 4A6

ATTENTION:        DAVID ADAMSON, PRESIDENT AND CEO
                  MIKE GRAY, VICE PRESIDENT, EXPLORATION

Dear Sirs:

                  POINT LEAMINGTON MINING LEASE IN NEWFOUNDLAND
                  ---------------------------------------------

We are writing to set forth the terms and conditions of the agreement among TLC
Ventures Corp. (the "Company") and Rubicon Minerals Corporation ("Rubicon") in
respect of the Point Leamington property in Newfoundland (the "Property") which
is more particularly described on Schedule "A". For valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, we agree as follows:

         1.       Rubicon grants to the Company the exclusive and irrevocable
                  option to acquire an undivided 100% interest in the Property,
                  free and clear of all liens, charges, encumbrances, claims or
                  rights of others by:

                  (a)      the Company paying to Rubicon a total of $250,000
                           (the "Cash Consideration") as follows:

                           (i)      subject to the TSX Venture Exchange (the
                                    "Exchange") providing the Company with
                                    written notice of its acceptance of this
                                    Agreement (the "Acceptance Date" ), $125,000
                                    on the Acceptance Date;

                           (ii)     a further $50,000 on or before the first
                                    anniversary of the Acceptance Date; and

                           (iii)    a further $75,000 on or before the second
                                    anniversary of the Acceptance Date;

                  (b)      subject to the Exchange providing the Company with
                           written notice of its acceptance of this Agreement,
                           the Company will issue Rubicon a total of 300,000
                           fully paid and non-.. assessable common shares (the
                           "Shares) without par value in the capital of the
                           Company (the "Share Consideration") as follows:

                           (i)      150,000 Shares will be issued on the
                                    Acceptance Date;

                           (ii)     a further 75,000 Shares will be issued on or
                                    before the first anniversary of the
                                    Acceptance Date; and

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February 13, 2004
Page 2

                           (iii)    a further 75,000 Shares will be issued on or
                                    before the second anniversary 0 f the
                                    Acceptance Date.

                  At the sole election of the Company, the Cash Consideration
                  and Share Consideration schedules as outlined in (a) and (b)
                  above may be accelerated with the outlined tranches paid in
                  advance. In this event, and in any event, once the Company has
                  paid Rubicon $250,000 and 300,000 Shares, the Company will
                  have fully paid for the undivided 100% interest in the
                  Property.

         2.       In the event that the Company is unable to fulfill any of the
                  requirements set out in paragraph 1 above within the time
                  limits specified therein due to an act (the "Event) beyond its
                  reasonable control (Force Majeure only), all time limits
                  imposed by this Agreement will be extended by a period of time
                  equal to the period of delay resulting from such Event to a
                  maximum of 120 days.

         3.       Rubicon reserves unto itself the Right of First Refusal on the
                  purchase of Noranda's 1.5% net smelter returns royalty (the
                  "NSR") in respect of the Property (Schedule B) and the option
                  to purchase the additional 0.5% NSR held by MFC Bancorp
                  (Schedule C).

         4.       Except for firm commitments outlined above, this Agreement
                  provides the Company with an option only and all payments of
                  Cash Consideration, issuances of Share Consideration and any
                  other cash payments are optional to the Company in its sole
                  discretion and nothing in this Agreement obligates the Company
                  to make any payments of Cash Consideration, issue any of the
                  Shares as Share Consideration or make any other cash payments.
                  If the Company does not make any payments of the Cash
                  Consideration or issue any of the Share Consideration set
                  forth in paragraph 1 when due (as such time limits may be
                  extended under the term of this Agreement), then the sole
                  result will be that the Company will forfeit all of its rights
                  under this Agreement.

         5.       If, prior to the Company paying to Rubicon $250,000 and
                  300,000 Shares, the Company sells a 100% interest in the
                  Property to an arms-length third party then Rubicon shall
                  receive 50% of the gross sale proceeds of such sale less the
                  total Cash Consideration and Share Consideration paid to
                  Rubicon pursuant to this Agreement prior to the date of sale.
                  The cash equivalent value of the Share Consideration shall be
                  deemed to be the number of Shares issued to Rubicon under this
                  Agreement prior to the date of sale multiplied by the dollar
                  value per Share calculated as the average of the closing price
                  of the Shares on the TSX Venture Exchange or its primary
                  trading market for the 10 trading days prior to the
                  announcement of the sale of the Property.

         6.       There shall be a 1.5km mutual area of interest from the border
                  of the Property (the "AOI") with respect to unstaked and
                  staked claims. For greater certainty, should the Company or
                  Rubicon currently hold an interest in staked claims or mining
                  leases within the AOI, or, should the Company or Rubicon
                  acquire by staking or by application additional claims or
                  mining leases within the AOI, these new properties will form
                  part of this Agreement and be subject to the terms and
                  conditions as set out in this Agreement.

         7.       Upon the payment of $125,000 and the issuance of 150,000
                  Shares, Rubicon will deliver to the Company transfer documents
                  in recordable form sufficient to transfer to the Company an
                  undivided 100% interest in the Property free and clear of all
                  liens, charges, encumbrances, claims or rights of others
                  except for the NSR provided for in paragraph 3 and the Company
                  is entitled to record such transfer documents in the
                  appropriate office in the jurisdiction in which the Property
                  is located but will hold such interest in the Property
                  pursuant to the terms of this Agreement.

         8.       The Company will have possession of the Property and be the
                  operator. Provided it has paid to the Cash Consideration and
                  the Share Consideration for any period, the Company shall pay
                  all costs associated with maintaining the Property in good
                  standing including the mining lease payment of approximately
                  $21,000.

<PAGE>
February 13, 2004
Page 3

         9.       Rubicon acknowledges that any Shares to be issued under this
                  Agreement will be issued under exemptions from the
                  registration and prospectus requirements of the Securities Act
                  (British Columbia) (the "Act") and accordingly, the resale of
                  such Shares will be subject to restrictions imposed by the Act
                  and the share certificates representing the Shares to be
                  issued under this Agreement may bear a legend in respect of
                  such resale restrictions.

         10.      Whenever Rubicon proposes to sell any or all of the Shares
                  received as Share Consideration to a third party, other than
                  an affiliate, whether through the facilities of the TSX
                  Venture Exchange or via private sale, Rubicon shall first
                  offer to the Company the right to purchase such Shares on the
                  terms and conditions set out in a written notice delivered to
                  the Company. The Company or its nominee will have 10 days from
                  the receipt of the written notice to exercise its right to
                  purchase the Shares. If the Company or its nominee does not
                  purchase the Shares, Rubicon may sell the Shares to a third
                  party on the same terms and conditions as were set out in the
                  written notice.

         11.      Rubicon represents and warrants to the Company that:

                  (a)      Rubicon is the beneficial and recorded owner of an
                           undivided 100% right, title and interest in and to
                           the Property, free and clear of any liens, charges,
                           encumbrances or surface rights restrictions
                           whatsoever;

                  (b)      Rubicon has the full right, power and authority to
                           enter into this Agreement and carry out all the terms
                           hereof, and the entering into of this Agreement does
                           not conflict with any agreement or other commitment
                           to which Rubicon is a party;

                  (c)      there are no outstanding agreements or options to
                           acquire any interest in the Property or any part
                           thereof of any interest therein other than the NSR
                           referred to in paragraph 3;

                  (d)      all of the claims comprising the Property are valid
                           and properly located and staked and recorded under
                           the laws of Newfoundland;

                  (e)      all of the claims comprising the Property are
                           subsisting and assignable and in good standing
                           pursuant to all applicable laws and all taxes,
                           charges and assessments with respect thereto have
                           been paid in full as of the date hereof;

                  (f)      Rubicon has not caused, permitted or allowed any
                           contaminants, pollutants, wastes or toxic substances
                           (collectively, the "Hazardous Substances") to be
                           released, placed, escaped, leached or disposed of on,
                           into, under or through the Property or nearby areas
                           and no Hazardous Substances or underground storage
                           tanks are contained, harboured or otherwise present
                           in or upon the Property or nearby areas;

                  (g)      there are no actions, suits, investigations or
                           proceedings before any court, arbitrator,
                           administrative agency or other tribunal or
                           governmental authority, whether current, pending or
                           threatened, which directly or indirectly relate to or
                           affect the Property nor is Rubicon aware of any facts
                           which would suggest that the same might be initiated
                           or threatened;

                  (h)      the execution of this Agreement and the performance
                           of its terms have been duly authorized by all
                           necessary actions;

                  (i)      there are no additional fees, annual assessment
                           commitments or site work required to maintain the
                           Property in good standing other than the annual
                           mining lease payment totalling approximately $21,000;

<PAGE>
February 13, 2004
Page 4

                  (j)      there are no `Rights of First Refusal" with respect
                           to Rubicon selling its ownership interest in the
                           Property;

                  (k)      Rubicon does not own or control an interest in any
                           claims or mining leases located within the AOI; and

                  (1)      on or before the Acceptance Date, Rubicon will
                           deliver to the Company all reports, drill logs, assay
                           information, metallurgical data and digital files it
                           has in its possession with respect to the Property.

         12.      The Company represents and warrants to Rubicon that:

                  (a)      the Company is a valid and subsisting corporation
                           incorporated and in good standing under the laws of
                           the Province of British Columbia;

                  (b)      the Company is duly registered and licensed to carry
                           on business in the jurisdictions in which it carries
                           on business or owns property where required under the
                           laws of that jurisdiction;

                  (c)      the Company has conducted and is conducting its
                           business in material compliance with all applicable
                           laws, rules and regulations and all other
                           requirements of any governmental or regulatory bodies
                           applicable to the Company or its assets;

                  (d)      the Company is not a party to any actions, suits,
                           proceedings or inquiries, at law or in equity or
                           before or by any federal, provincial, municipal or
                           other governmental department, commission, board,
                           bureau, agency or instrumentality which could
                           materially affect its business, operations or
                           financial condition, and to its knowledge no such
                           actions, suits or proceedings are contemplated or
                           have been threatened;

                  (e)      the Company has all requisite power and authority to
                           carry out its obligations under this Agreement;

                  (f)      the execution and delivery of this Agreement, the
                           performance by the Company of its obligations
                           hereunder, the consummation of the transactions
                           contemplated in this Agreement and the allotment and
                           issuance of the Share Consideration does not and will
                           not conflict with and does not and will not result in
                           a breach of any of the terms, conditions, or
                           provisions of, or constitute a default under,
                           (whether after notice or lapse of time or both):

                           (i) the constating documents of the Company,

                           (ii)     any statute, rule or regulation applicable
                                    to the Company,

                           (iii)    any judgement, decree or order binding on
                                    the Company or any interests or assets of
                                    the Company, or

                           (iv)     any agreement, document or instrument to
                                    which the Company is a party or by which its
                                    interests or assets are affected;

                  (g)      the Company will reserve or set aside sufficient
                           shares in its treasury to issue the Share
                           Consideration and upon their issuance the Share
                           Consideration will be duly and validly allotted and
                           issued as fully paid and non-assessable. The Share
                           Consideration will be subject to a minimum 4 month
                           hold period from date of issuance or such additional
                           restrictions as dictated by the TSX Venture Exchange;

<PAGE>
February 13, 2004
Page 5

                  (h)      the authorized capital of the Issuer consists of
                           25,000,000 common shares, of which 13,709,000 common
                           shares are duly and validly issued as fully-paid and
                           non-assessable;

                  (i)      there are no securities convertible or exchangeable
                           into common shares of the Company, nor does any
                           person have or hold any agreement (other than this
                           Agreement), right, warrant, option, privilege
                           (whether pre-emptive or contractual) being or capable
                           of becoming an agreement, warrant, option or right
                           for the purchase of any unissued shares in the
                           capital of the Company except for incentive stock
                           options to purchase a total of 1,055,000 common
                           shares at an exercise price of$0.25 per share;

                  (j)      the Company is a "reporting issuer" in the
                           jurisdictions of British Columbia and Alberta and is
                           not in default of any requirements of the Securities
                           Act (British Columbia) and the Securities Act
                           (Alberta) (collectively the "Acts") or of any of the
                           by-laws, rules or policies of the Exchange;

                  (k)      at the Closing, every consent, approval,
                           authorization, order or agreement from or with the
                           Exchange that is required for the transactions herein
                           contemplated to occur at Closing to be valid will
                           have been obtained and will be in effect;

                  (1)      the Company will use its best efforts to:

                           (i)      maintain its status as a reporting issuer
                                    under the Acts,

                           (ii)     comply with the requirements of and not be
                                    in default under the provisions of the Acts
                                    and the rules and policies of the Exchange
                                    and maintain the listing of the Shares on
                                    the Exchange;

                  (o)      it is the Company's responsibility to ensure any
                           related party costs including, without limitation,
                           third party reports, if required, are at the sole
                           cost of the Company. Any costs required for third
                           party waivers or assignments of the Agreement or the
                           NSR's will be at the Company's cost; and

                  (p)      the Company does not currently own or control an
                           interest in any claims or mining leases within the
                           AOI.

          13.     This Agreement may be terminated by the Company at any time by
                  30 days notice in writing to Rubicon. If the Company elects to
                  terminate this Agreement, the Company will transfer the
                  Property back to Rubicon in good standing and will deliver to
                  Rubicon all reports obtained or prepared for or by the Company
                  in respect of the Property. Failure to make payments and
                  failure to remedy default within 60 days as notified in
                  writing from Rubicon will cause the Property to irrevocably be
                  transferred back to Rubicon.

         14.      This Agreement is subject to:

                  (a) the acceptance of the Exchange; and

                  (b) the approval of the Board of Directors of the Company.

         15.      The issuance of the Shares described in paragraph 1(b) are
                  subject to such issuances being in compliance with all
                  applicable laws and rules and policies of applicable
                  regulatory bodies.

         16.      This Agreement will constitute a binding agreement among the
                  parties.

<PAGE>
February 13, 2004
Page 6

         17.      This Agreement may be executed in as many counterparts as may
                  be necessary and by facsimile, each of such counterparts so
                  executed wi1l be deemed to be an original and such
                  counterparts together will constitute one and the same
                  instrument and notwithstanding the date of execution will be
                  deemed to bear the date as of the day and year first above
                  written.

         18.      This Agreement will be interpreted in accordance with the laws
                  of the Province of British Columbia and will enure to the
                  benefit of and be binding upon the parties hereto and their
                  respective successors and permitted assigns.

If the foregoing is acceptable to you, please indicate your agreement by signing
and returning this letter.

Yours very truly,

TLC Ventures Corp.

By:              /s/
    -----------------------------
    Ed Farrauto, President

The foregoing is accepted and agreed to this 6th day of February 2004 by Rubicon
Minerals Corporation:

----------------------------
Authorized Signatory

<PAGE>

                                  SCHEDULE" A"
                                  ------------

                      POINT LEAMINGTON MINING LEASE DETAILS
                      -------------------------------------

PROPERTY NAME                     MINING DIVISION                   MINING LEASE
-------------                     ---------------                   ------------

                                  Green Bay, NF                     136 (2655)
Point Leamington

<PAGE>

                                  SCHEDULE "B"
                                  ------------

                                  NORANDA'S NSR
                                  -------------

                  [Letterhead of Rubicon Minerals Corporation]

VIA FACSIMILE

May 14, 1999

NORANDA INC.
2800 Park Place
666 Burrard Street
Vancouver, BC V6C 227

Dear Sirs:

RE:      POINT LEAMINGTON PROPERTY, NEWFOUNDLAND

Further to the letter agreement dated August 26, 1998 between Rubicon Minerals
Corporation ("Rubicon") and Noranda Mining and Exploration Inc. (the
"Optionor"), this letter will serve to confirm and document our formal agreement
(the "Agreement") with respect to the mineral interests described in Schedule
"A" attached hereto. The mineral interests described therein are hereinafter
referred to as the "Property".

The terms of our Agreement are as follows:

1. The Optionor represents and warrants to Rubicon that:

         (a)      the Optionor has the sole and exclusive right to a 75%
                  undivided right, title and interest in the Property and,
                  without limiting the generality of the foregoing,

                  (i)      pursuant to an agreement (the "Nalco Agreement") made
                           as of March 1, 1975 and entered into on April 18,
                           1977 between Newfoundland and Labrador Corporation
                           Limited ("Nalco") and the Optionor, the Optionor
                           acquired a 75% undivided ownership interest in the
                           Jointly Owned Assets (as such term was defined in the
                           Nalco Agreement);

                  (ii)     pursuant to a letter agreement dated November 25,
                           1988 between Nalco and the Optionor, the Optionor
                           consented to the transfer of a portion of Nalco's
                           interest in the property described in Schedule "A" to
                           the Nalco Agreement (the "Point Leamington Property")
                           to two companies in which Nalcap Holdings Inc. either
                           directly or indirectly owned significant
                           shareholdings; and

                  (iii)    pursuant to an amendment agreement (the "Amendment
                           Agreement") dated June 27, 1989 between Nalco, the
                           Optionor, Vincent Resources Ltd. ("Vincent") and
                           Dominion Jubilee Corporation Limited ("Jubilee"), the
                           Optionor consented to an assignment of a partial
                           interest in the Point Leamington Property and the
                           Frozen Ocean Property (as such ____ was defined in
                           the Amendment Agreement) by Nalco to each of Vincent
                           and Jubilee;

                  (iv)     pursuant to the Declaration of Trust dated August 21,
                           1990, the Optionor agreed to hold all mining leases
<PAGE>

                           or licences acquired with respect to the Property in
                           trust for Nalco to the extent of Nalco' s interest
                           therein as determined pursuant to the Nalco Agreement
                           and the Amendment Agreement;

         (b)      the Property is properly and accurately described in Schedule
                  "A" attached hereto;

         (c)      the mining lease comprising the Property (the "Mining Lease")
                  has been properly registered by the mineral claims recorder
                  under the Mineral Act (Newfoundland) (the "Mineral Act");

         (d)      the Optionor has the right to carry on business in the
                  Province of Newfoundland and Labrador and has the full right
                  and authority to enter into this Agreement;

         (e)      except for the agreement (the "MFC Agreement") dated as of
                  September 2, 1998 between Rubicon and MFC Merchant Bank S.A.
                  ("MFC ") and the agreement between Rubicon and LA Telco
                  International Inc. ("LA Telco ") with respect to the remaining
                  25% interest in the Property, to the best of the knowledge of
                  the Optionor, there are no adverse interests or other
                  agreements affecting the Optionor's 75% undivided right, title
                  and interest in the Property, including, but not limited to,
                  with respect to the payment of any royalties or other payments
                  in the nature of rent or royalties relating to the Property or
                  production therefrom, and no consents are required from MFC,
                  LA Telco or any other third party in order for the Optionor to
                  enter into this Agreement;

         (f)      as of the date hereof,

                  (i) the Mining Lease is in good standing;

                  (ii)     all terms, conditions and obligations contained in
                           the Mining Lease to be discharged, satisfied or met
                           to the date hereof, have been discharged, satisfied
                           or met by the Optionor or its predecessors in title,
                           or, to the best of the knowledge of each of the
                           Optionor, MFC, LATelco or its predecessors in title;

                  (iii)    the Mining Lease has not been amended or modified;

                  (iv)     the current expiry date of the Mining Lease is August
                           29, 2015; and

                  (v)      the Optionor has made, and the Newfoundland
                           Government has received and issued a receipt for, the
                           Mining Lease payment of $21,032.80 to the
                           Newfoundland Government which was due on August 31,
                           1998 in order to keep the Property in good standing.

         (g)      to the best of the knowledge of the Optionor, except as
                  described herein, the Property is free and clear of all liens,
                  charges and encumbrances, recorded or unrecorded;

         (h)      to the best of the knowledge of the Optionor, there are no
                  outstanding or pending actions, suits or claims affecting all
                  or any part of the Property; and

         (i)      the Optionor is not a non-resident within the meaning of
                  Section 116 of the Income Tax Act (Canada).

The Optionor acknowledges and agrees that Rubicon is entering into this
Agreement relying upon the representations and warranties made to Rubicon herein
and the correctness of each such representation and warranty is a condition upon
which Rubicon is entering into this Agreement, each of which condition may be
waived in whole or in part solely by Rubicon, and all such representations and
warranties shall survive the execution and delivery of this Agreement and the
transactions contemplated hereby and the Optionor shall save and hold Rubicon
harmless from all loss, damage, costs, actions or suits arising out of or in
connection with a breach of any representation or warranty contained herein.

<PAGE>

2.       Rubicon represents and warrants to (and, where applicable, covenants
         with) the Optionor that:

         (a)      Rubicon is a company duly incorporated and validly existing
                  under the laws of British Columbia and has the corporate power
                  and authority to own or lease its properties and to carry on
                  the business now carried on by it;
         (b)      Rubicon has the full corporate power and authority to enter
                  into this Agreement and to perform all of its obligations
                  under this Agreement;
         (c)      the Rubicon Shares (as defined in subsection 4(b)) will be
                  duly authorized and validly issued and outstanding as fully
                  paid and non-assessable shares in the capital of Rubicon as at
                  the date of issuance thereof, free and clear of all
                  encumbrances other than restrictions imposed by applicable
                  securities laws and by the policies of the Vancouver Stock
                  Exchange (the "VSE"); and
         (d)      the common shares of Rubicon are listed and posted for trading
                  on the VSE, and following the issuance thereof as contemplated
                  by this Agreement, the Rubicon Shares will form part of such
                  class of common shares listed and posted for trading on the
                  VSE.

Rubicon acknowledges and agrees that the Optionor is entering into this
Agreement relying upon the representations and warranties made to the Optionor
herein and the correctness of each such representation and warranty is a
condition upon which the Optionor is entering into this Agreement, each of which
condition may be waived in whole or in part solely by the Optionor, and all such
representations and warranties shall survive the execution and delivery of this
Agreement and the transactions contemplated hereby and Rubicon shall save and
hold the Optionor harmless from all loss, damage, costs, actions or suits
arising out of or in connection with a breach of any representation or warranty
contained herein.

3.       The Optionor hereby grants to Rubicon the exclusive right and option to
         earn the Optionor's 75% undivided right, title and interest in the
         Property in accordance with the provisions hereof.

4.       To maintain the option granted hereunder in good standing and earn the
         Optionor's 75% undivided right, title and interest in the Property,
         Rubicon shall:

         (a)      make a one-time payment (the "Cash Payment") to the Optionor
                  in the amount of $21,032.80 on or before August 31, 1998
                  (which Cash Payment was made on August 28, 1998, the receipt
                  of which is hereby acknowledged by the Optionor), provided
                  that if the Newfoundland Government does not issue a receipt
                  for the Mining Lease payment referred to at subclause 1(f)(v),
                  the Cash Payment shall be refundable to Rubicon forthwith; and
         (b)      provided the receipt referred to in subsection 4(a) hereof has
                  been issued for the Mining Lease, issue a total of 100,000
                  common shares in the capital of Rubicon ("Rubicon Shares") to
                  the Optionor in five tranches (subject to the approval of the
                  VSE) in accordance with the following schedule:

                  (i)      12,500 Rubicon Shares on December 31, 1998 (which
                           shares have been issued, receipt of which is hereby
                           acknowledged by the Optionor;
                  (ii)     12,500 Rubicon Shares on August 31,1999;
                  (iii)    25,000 Rubicon Shares on August 31,2000;
                  (iv)     25,000 Rubicon Shares on August 31,2001 and
                  (v)      25,000 Rubicon Shares on August 31, 2002;

         (c)      provided that such payments may be accelerated at any time in
                  the sole discretion of Rubicon. The Rubicon Shares will be
                  issued pursuant to the exemption set out in subsection
                  74(2)(18) of the Securities Act (British Columbia) (the
                  "BCSA") and will be subject to the applicable trading
                  restrictions contained in the BCSA, and the Rules and
                  Regulations promulgated pursuant thereto.

5.       Once Rubicon has earned the Optionor's 75% undivided right, title and
         interest in the Property in accordance with the foregoing subsections
         4(a) and (b), the Optionor's only remaining rights under this Agreement

<PAGE>

         will be to the Net Smelter Returns Royalty ("NSR") set out in Section
         11, the Right of First Refusal set out in Section 16, and the indemnity
         set out in Section 17.

6.       In the event that the authorized capital of Rubicon as constituted on
         the date hereof is consolidated into a lesser number of shares or
         subdivided into a greater number of shares, the number of Rubicon
         Shares required to be issued pursuant to subsection 4(b) hereof shall
         be correspondingly decreased, in the case of a consolidation, or
         increased, in the case of a subdivision, as applicable. In the event
         that Rubicon shall amalgamate or merge with any other company or
         companies whether by way of statutory amalgamation, sale of its assets
         and undertaking, or otherwise, prior to having issued all of the
         Rubicon Shares required to be issued pursuant to subsection 4(b), then
         in each such event, the number of Rubicon Shares resulting from such
         amalgamation or merger required to be issued to the Optionor pursuant
         to subsection 4(b) shall be such number of Rubicon Shares in Rubicon as
         would have been acquired by the Optionor pursuant to the amalgamation
         or merger had the shares been issued to the Optionor immediately prior
         to the date of such amalgamation or merger.

7.       With the exception of dispositions of Rubicon Shares related to an
         issuer bid or a take-over bid (as such terms are defined in the
         Securities Act (Ontario) (the "OSA") for the Rubicon Shares, if the
         Optionor wishes to dispose of any of the Rubicon Shares which Rubicon
         has issued to the Optionor, the Optionor may only do so after providing
         not less than fifteen (15) days' prior written notice to Rubicon which
         notice shall contain, if applicable, the proposed sale price, whereupon
         Rubicon will have the right, during such fifteen (15) day period, to
         find a buyer for the Rubicon Shares proposed to be disposed of by the
         Optionor to be purchased by such buyer at prevailing market prices or
         at the proposed sale price, whichever is greater. If Rubicon identifies
         such a buyer, the Optionor will sell the relevant portion of the
         Rubicon Shares to the buyer located by Rubicon. If Rubicon fails to
         identify a buyer within such fifteen (15) day period, or if the buyer
         identified by Rubicon fails to complete this purchase of the relevant
         Rubicon Shares within five business days of the expiry of the.
         above-mentioned fifteen (15) day period, the Optionor shall thereafter
         be entitled to dispose of the relevant portion of the Rubicon Shares to
         such persons and on such terms as it may in its sole discretion
         determine.

8.       If Rubicon fulfills the requirements (the "Option Requirements ") set
         forth in subsections 4(a) and (b), Rubicon shall have exercised the
         Option and shall have purchased the Optionor's undivided 75% undivided
         right, title and interest in the Property in accordance with the
         provisions hereof. On the date on which Rubicon shall have fulfilled
         the Option Requirements, the Optionor shall forthwith assign, transfer
         and set over to Rubicon all of its right, title and interest in and to
         the Property, including, without limitation, its rights in and to the
         Mining Lease and shall execute and deliver to Rubicon all such
         transfers, assignments, consents and other documents as are necessary
         to assign and transfer to Rubicon all of the right, title and interest
         of the Optionor in and to the Property.

9.       On issuance of the first tranche of Rubicon Shares pursuant to
         subclause 4(b)(i) and provided that the Newfoundland Government has
         received and issued a receipt for the Mining Lease Payment referred to
         at subclause l(f)(v), the Optionor shall, if requested by Rubicon,
         execute and deliver transfers of the Property in registrable form to
         Rubicon, and Rubicon may record such transfers and hold the Property in
         trust for the parties during the currency of this Agreement provided
         that, in such event, "reverse" bills of sale (or other acceptable
         instruments of transfer) transferring the Property back to the Optionor
         will be delivered to a mutually acceptable escrow agent, such
         instruments of transfer to be released to the Optionor if the option is
         terminated. Each of the parties shall be entitled to record this
         Agreement as evidence of its beneficial interest in the Property from
         time to time during the currency of this Agreement, and each party
         agrees to execute and deliver all necessary documents to facilitate
         such recordings from time to time in order to comply with Section 6 of
         the Mineral Act.

10.      This Agreement may be terminated at any time by Rubicon giving 60 days'
         notice to that effect to the Optionor in accordance with this Section
         10, provided that prior to termination Rubicon will provide the
         Optionor with a report of Rubicon's activities related to the Property
         (including one set of copies of assay plans and diamond drill records)
         30 days prior to the termination date. All additional share issuances

<PAGE>

         required to be made pursuant to subclause 4(b) hereof are optional at
         the sole discretion of Rubicon. If Rubicon fails to make each of the
         share issuances in accordance with the schedule described in subclause
         4(b), the Optionor may at any time give thirty business days' notice of
         termination to Rubicon and, in such case unless such share issuance is
         made within such thirty day period, or if Rubicon gives notice of
         termination in accordance with this Section 10, this Agreement shall
         terminate and Rubicon shall return the Property free and clear of all
         liens and encumbrances which may have arisen and attached to the
         Property subsequent to the effective date of this Agreement as a result
         of the activities conducted hereunder by Rubicon and Rubicon shall
         ensure that the Property will be in good standing for a period of at
         least one year following the date of termination. The termination of
         this Agreement shall not relieve Rubicon of any obligation or liability
         incurred up to the effective date of termination, provided that nothing
         in this Agreement shall commit Rubicon to incur any expenditures or
         make any share issuances, except for the Cash Payment described in
         subsection 4(a).

11.      If there is any production from the Property such that any product is
         extracted nom ore mined from the Property, a 1.5% Net Smelter Returns
         Royalty ("NSR") will be payable from Rubicon to the Optionor in
         accordance with the provisions of Schedule "B" attached hereto. The
         Optionor acknowledges and agrees that, pursuant to the MFC Agreement
         and in . consideration for MFC's interest in the Property, a 0.5% NSR
         will be payable from Rubicon to MFC also in accordance with the
         provisions of Schedule "B".

12.      The Optionor agrees that during the term of this Agreement, prior to
         Rubicon having earned its interest in the Property as contemplated by
         Section 4, Rubicon shall, subject to Section 14, have the exclusive
         right to conduct exploration and development work on the Property,
         including, without limitation, the full right to sample, examine,
         diamond drill, and develop or mine the Property in such manner as
         Rubicon in its sale discretion may deem necessary and proper, provided
         that in the event that Rubicon removes or mines and sells any mineral
         products derived from the Property during such period, all proceeds
         therefrom received by Rubicon (after deduction of any costs incurred by
         Rubicon in removing, mining and disposing of such mineral products)
         shall be paid to the Optionor. In addition, Rubicon shall have the full
         right to erect, bring and install thereon all such buildings,
         machinery, equipment and supplies as Rubicon shall deem necessary and
         proper. In the event of termination of this Agreement for any reason,
         all buildings, plant, equipment, machinery, tools, appliances and
         supplies which have been brought on the Property by Rubicon during the
         term of this Agreement shall be removed by Rubicon not later than six
         (6) months after the termination of this Agreement. Upon termination,
         Rubicon shall comply with all reclamation and other environmental
         requirements imposed or prescribed by applicable law with respect to
         its activities on the Property.

13.      Prior to earning its interest in the Property as contemplated by
         Section 4, all work done by Rubicon on the Property shall be done in
         accordance with good mining practice and in compliance with applicable
         laws and regulations.

14.      Prior to Rubicon earning its interest in the Property as contemplated
         by Section 4, the Optionor and its authorized representatives shall
         have reasonable access to the Property at their sole risk and expense
         to review work being carried out thereon and also shall have access at
         all reasonable times to the records of Rubicon respecting exploration
         and development work carried out on the Property and the results
         obtained therefrom, provided however, that this shall not unduly
         interfere with or disrupt the activities of Rubicon. Rubicon shall
         provide the Optionor with quarterly reports indicating the status of
         the exploration work being conducted on the Property. The Optionor
         agrees that all data and information with respect to the Property
         provided to or received by the Optionor shall be treated as
         confidential and shall not be disclosed to any other person, except as
         required by any regulatory authority having jurisdiction to do so,
         without the prior written consent of Rubicon, which consent shall not
         be unreasonably withheld.

15.      On execution of this Agreement, the Optionor will deliver to Rubicon
         copies of all technical and historical data (including interpretive
         data) which is in the Optionor's possession relating to the Property
         (to the extent that any such data has not already been delivered to
         Rubicon). In addition to the foregoing, the Optionor will ensure that
         Rubicon has access to all diamond drill core from the Property which
         drill core is

<PAGE>

         either in the Optionor's possession or is in the possession of the
         Government of Newfoundland and Labrador pursuant to Sections 6 and 15
         of the Mineral Act.

16.      (a)      In the event that the Property is placed into Commercial
                  Production, the Optionor shall have a Right of First Refusal
                  to purchase concentrates produced from the Property. In the
                  event that Rubicon arranges for the sale of all or part of
                  concentrates produced from the Property, through a bona fide
                  offer from an independent third party (the "Proposed Purchaser
                  ") which offer Rubicon desires to accept, Rubicon shall first
                  offer (the "Offer ") such concentrates in writing to the
                  Optionor upon terms no less favorable than those offered by
                  the Proposed Purchaser. The Offer shall specify price, terms,
                  quantity and conditions of such sale. If, within fifteen (15)
                  business days of receipt of the Offer, the Optionor informs
                  Rubicon that it will accept the Offer, Rubicon shall be bound
                  to sell the concentrates on the terms and conditions of such
                  Offer, failing which Rubicon will then be able to sell the
                  concentrates to a third party and will then be under no
                  obligation to present further offers to the Optionor with
                  respect to the concentrates specified in the original Offer.
                  Payment for the concentrates shall be received by Rubicon no
                  later than specified in the Offer. Failure to pay within the
                  time specified in the Offer shall render the Offer and the
                  exercise by the Optionor null and void and Rubicon will then
                  be under no obligation to present further offers to the
                  Optionor with respect to the concentrates specified in the
                  original Offer.

         (b)      For the purposes of this Section 8, "Commercial Production"
                  shall mean the commercial operation of the Property, or a
                  portion thereof, but does not include milling or other
                  treatment for the purposes of testing or milling or leaching
                  by a pilot plant during the initial tune-up period of a plant.
                  Commercial Production will be deemed to have commenced:

                  (i)      if a plant is located on the Property, or a portion
                           thereof, on the first day of the month following the
                           first period of 30 consecutive days during which
                           mineral products or other concentrates from the
                           Property, or a portion thereof, have been processed
                           through such plant for not less than 15 days at an
                           average rate of not less than 66?% of the initial
                           rated capacity of such plant; or
                  (ii)     if no plant is located on the Property or a portion
                           thereof, on the first day of the month following the
                           first period of 30 consecutive days during which are
                           or other concentrates from the Property, or a portion
                           thereof, have been shipped from the Property, or a
                           portion thereof, on a reasonably regular basis for
                           the purpose of earning revenue.

         (c)      Rubicon has no obligation to put the Property, or a portion
                  thereof, into Commercial Production and any decision to place
                  the Property, or a portion thereof, into Commercial Production
                  shall be at the sole discretion of Rubicon and this Agreement
                  shall not be construed as creating an obligation upon Rubicon
                  to put the Property, or a portion thereof, into Commercial
                  Production. In the event that the Property, or a portion
                  thereof, is put into Commercial Production, Rubicon shall be
                  entitled in its sole discretion to suspend, curtail or
                  terminate Commercial Production at any time.

17.      Rubicon shall indemnify and save harmless the Optionor from any and all
         claims arising out of the operations which Rubicon or its agents may
         conduct upon the Property from August 28, 1998 to the date of
         termination of this Agreement and any and all claims arising with
         respect to the remaining 25% interest in the Property, including those
         arising as a result of the transfer by to the Optionor to Rubicon of
         the Mining Lease as contemplated by Sections 8 and 9 of this Agreement.
         The Optionor shall indemnify and save harmless Rubicon from and against
         any and all claims arising from or in relation to the Property or
         operations or activities carried out upon the Property prior to August
         28, 1998 as a result of the Optionor's previous activities on the
         Property, including but not limited to liability for environmental
         reclamation or rehabilitation that may be required. Notwithstanding the
         foregoing, the obligations of the Optionor under this Section 17 shall
         terminate on the earlier of:

<PAGE>

         (a)      the date upon which Rubicon exercises the option granted
                  hereunder and acquires the Optionor's 75% undivided right,
                  title and interest in the Property;

         (b)      August 31, 2002; or

         (c)      the date of termination of this Agreement.

18.      (a)      Until the date that Rubicon has issued the 100,000 Rubicon
                  Shares as contemplated by subsection 4(b), neither party
                  shall, except as permitted in this Section 18, sell or assign
                  the whole or any part of its rights or interest in the
                  Property or this Agreement, without the prior written consent
                  of the other party not to be unreasonably withheld, provided
                  that it is understood that it shall not be unreasonable for a
                  party to withhold its consent on the basis that the proposed
                  purchaser, assignee or transferee lacks sufficient financial
                  capacity or technical expertise with which to carry out its
                  obligations hereunder;

         (b)      nothing in this Section 18 shall prevent:

                  (i)      a sale or assignment by a party of all or any portion
                           of its rights or interest, in the Property or this
                           Agreement to an Affiliated Company (as such term is
                           defined in subsection 1(2) of the OSA), provided that
                           the Affiliated Company remains as such for a period
                           of not less than one (1) year after such sale or
                           assignment, failing which the other party shall have
                           the right to require that its consent shall be
                           necessary for such sale or assignment to remain
                           valid; or
                  (ii)     a party from entering into an amalgamation or
                           corporate reorganization which will have the effect
                           in law of the amalgamated or surviving company
                           possessing all of the property, rights and interests
                           and being subject to all the debts, liabilities, and
                           obligations of each amalgamating or predecessor
                           company;

         (c)      before the completion of any sale or assignment by a party of
                  the whole or any part of its rights or interest in the
                  Property or this Agreement to an Affiliated Company or
                  otherwise, the purchasing party shall, at the election of the
                  party not selling, enter into an agreement with the party not
                  selling on the same terms and conditions as set out in this
                  Agreement; and

         (d)      for greater certainty, once Rubicon has issued the 100,000
                  Rubicon Shares in its capital as contemplated by subsection
                  4(b) hereof, Rubicon shall have a right of first refusal with
                  respect to the Optionor's 1.5% NSR. In the event that the
                  Optionor elects to assign or transfer all or a part of its
                  interest with respect to its 1.5% NSR, the Optionor shall
                  first offer (the "Offer") such interest (the Offered
                  Interest") to Rubicon, by notice in writing, for acquisition
                  by Rubicon. Rubicon shall have a period of fourteen (14)
                  business days to accept the Offer, failing which the Optionor
                  shall be free to sell, transfer or otherwise deal with the
                  Offered Interest.

19.      Nothing contained in this Agreement shall be deemed to constitute a
         party an agent or legal representative of the other party or to create
         any fiduciary relationship for any purpose whatsoever. Except as
         otherwise specifically provided in this Agreement, a party shall not
         have any authority to act for, or to assume any obligation or
         responsibility on behalf of any other party. Except as expressly
         provided in this Agreement, each party shall have the free and
         unrestricted right independently to engage in and receive the full
         benefits of any and all business endeavors of any sort whatsoever not
         related to the Property, whether or not competitive with the endeavors
         contemplated herein, without consulting or inviting or allowing the
         other any interest therein. No party shall be under any fiduciary or
         other duty to the other which will prevent it from engaging in or
         enjoying the benefits of competing endeavors within the general scope
         of the endeavors contemplated by this Agreement. The legal doctrines of
         "corporate opportunity" or "business opportunity" sometimes applied to
         joint ventures or other fiduciaries shall not apply in the case of any
         other endeavour of a party.

20.      The parties agree that this Agreement shall be interpreted and governed
         according to the laws of the Province of British Columbia and the laws
         of Canada applicable therein.

<PAGE>

21.      Any notice or election permitted or required to be given hereunder
         shall be in writing and shall be effective if delivered by hand or
         facsimile or if mailed postage prepaid to the address of a party
         written below or to such other address as a party shall inform the
         others by like notice:

Rubicon Minerals Corporation          Noranda Inc.
Suite 888, 1100 Melville Street       Suite 2700, 1 Adelaide Street East
Vancouver, BC                         Toronto, ON
V6E 4A3                               M5C 2Z5

Tel: (604) 623-3333                   Attention: Director, Canadian Exploration
Fax: (604) 623-3355                   Tel: (416) 982-7111
                                      Fax: (416) 982-3525

22.      Any such notice will, if delivered by hand or facsimile be deemed to
         have been given and received on the day it was delivered by hand or
         facsimile and if mailed, be deemed to have been given and received on
         the fifth business day following the day of mailing, except in the
         event of a disruption of postal service, in which case notice if mailed
         will be deemed to be received on the seventh day following he
         resumption of normal postal service.

23.      No party hereto shall be liable to the others and no party hereto shall
         be deemed in default under this Agreement for any failure or delay to
         perform any of its covenants and agreements caused or arising out of
         any act not within the control of the party, excluding lack of funds
         but including, without limitation, acts of God, strikes, lockouts, or
         other industrial disputes, acts of the public enemy, riots, fire,
         storm, flood or other natural disaster, explosion, government
         restriction, failure to obtain any approvals required from regulatory
         authorities, including environmental protection agencies,
         unavailability of equipment, interference of environmentalists or
         native rights pressure groups or other causes whether of the kind
         enumerated above or otherwise which are not reasonably within the
         control of the party. No right of a party shall be affected for failure
         or delay of the party to meet any condition of this Agreement, which
         failure or delay is caused by one of the events above referred to, and
         all times provided for in this Agreement shall be extended for a period
         commensurate with the period of the delay caused by the events above
         referred to, provided however, that nothing contained in this Section
         23 shall require any party to settle any industrial dispute or to test
         the constitutionality of any law enacted by any Province or the Federal
         Government of Canada. Any party relying on the provisions of this
         Section 23 shall forthwith give notice to the other party of the
         commencement of such event and of its end.

24.      This Agreement shall be binding upon the parties hereto and their
         respective successors and permitted assigns.

25.      Time shall be of the essence hereof.

26.      This Agreement including schedules attached hereto, constitutes the
         entire agreement between Rubicon and the Optionor pertaining to the
         Optionor's 75% undivided right, title and interest in the Property and
         supersedes all prior agreements, understandings, negotiations and
         discussions, whether oral or written between Rubicon and the Optionor,
         and there are no warranties, representations or other agreements
         between Rubicon and the Operator in connection with the Property except
         as specifically set forth herein.

27.      This Agreement shall be effective from and as of August 28, 1998.

28.      This Agreement is subject to receipt by the VSE for filing and to the
         condition that all regulatory consents required for the carrying out of
         this Agreement shall have been obtained.

29.      The parties consent to the recording of this Agreement with the
         Registry of Confidential Agreements, Mineral Claims Recorders Office,
         Department of Mines & Energy, Government of Newfoundland to comply with
         the provisions of the Mineral Act.

<PAGE>

30.      This Agreement may be executed in counterparts, all of which taken
         together shall constitute one and the same instrument and anyone of the
         parties may .execute this Agreement by signing and delivering same by
         facsimile, telegraph, cable or otherwise in writing, each delivery by
         any means to be deemed to be "in writing" for the purpose of this
         Agreement.

         If the foregoing terms and conditions reflect our agreement, please
execute and return the enclosed duplicate copies of this letter and we shall
consider it to be a binding agreement.

                                          Yours very truly,

                                          RUBICON MATERIALS CORPORATION

                                          Per:            /s/
                                               --------------------------
                                               Authorized Signatory

Acknowledged and agreed to as of the ____ day of _______, 1999.

NORANDA INC.

Per:           /s/
     -------------------------
     Authorized Signatory

Per:           /s/
     -------------------------
     Authorized Signatory

<PAGE>

PROVINCE OF       )      IN THE MATTER
ONTARIO           )      OF AN
TO WIT:           )      AGREEMENT

                             AFFIDAVIT OF EXECUTION

         I, Hillar Pinna, of 23 Munford Crescent, the City of Toronto, Province
of Ontario, MAKE OATH AND SAY THAT:

1. I was presently present and did see the annexed Agreement duly executed by
Noranda Inc. under its corporate seal and the hands of David Stevens and David
Gower, on the 7th day of June, 1999;

2. I know the said parties and know the said parties to be V.P. -- Exploration
and Director -- Canadian Exploration of Noranda Inc.;

3. The signatures "David Stevens" and "David Gower" subscribed to the said
Agreement are the proper handwriting of the said David Stevens and David Gower
respectively and the seal attached thereto is the corporate seal of Noranda Inc.

SWORN BEFORE ME at the City of                            )
Toronto, in the Province of Ontario, this                 )
28th day of June, 1999                                    )
                                                          )
/s/                                                       )    /s/
------------------------------------------------------    )    -----------------
A Notary Public for and within the Province of Ontario    )

PROVINCE OF           )      IN THE MATTER
BRITISH COLUMBIA      )      OF AN
TO WIT:               )      AGREEMENT

                             AFFIDAVIT OF EXECUTION

         I, Sandra Miller, of 1040 - 1055 West Hastings Street, Vancouver,
British Columbia, MAKE OATH AND SAY THAT:

1. I was presently present and did see the annexed Agreement duly executed by
Rubicon Minerals Corporation under its corporate seal and the hand of Michael
Gray, a director, on the 7th day of June, 1999;

2. I know the said party and know the said party to be a director of Rubicon
Minerals Corporation;

3. The signature "Michael J. Gray" subscribed to the said Agreement is the
proper handwriting of the said Michael Gray and the seal attached thereto is the
corporate seal of Noranda Inc.

SWORN BEFORE ME at the City of                            )
Vancouver, in the Province of British Columbia,           )
this 17th day of June, 1999                               )
                                                          )
/s/                                                       )   /s/
-----------------------------------------------           )   ------------------
A Notary Public for and within the Province of            )
British Columbia

<PAGE>

                      SCHEDULE "A" TO THE OPTION AGREEMENT
                         DATED THE 14TH DAY OF MAY, 1999
                                     BETWEEN
                        RUBICON MINERALS CORPORATION AND
                                  NORANDA INC.

PROPERTY NAME                   MINING DIVISION                     MINING LEASE

Point Leamington                Green Bay, NF                        136 (2655)

<PAGE>

                      SCHEDULE "B" TO THE OPTION AGREEMENT
                         DATED THE 14TH DAY OF MAY, 1999
                                     BETWEEN
                        RUBICON MINERALS CORPORATION AND
                                  NORANDA INC.

1. Net Smelter Returns shall mean any and all amounts received, from time to
time, by the party obligated to pay the royalty (the "Owner") for product
extracted from ore mined from the Property, deducting therefrom all expenses
relating to the treatment of such product at any smelter, refinery or mint,
including all costs and charges for the treatment, tolling, smelting, refining
or minting of such product and all costs and charges associated therewith, such
as costs and charges in respect of transportation, insurance, handling,
weighing, sampling, assaying and marketing, as well as penalties, representation
charges, referee's fees and expenses, import taxes and export taxes; that is to
say, Net Smelter Returns shall mean the net amount received by the Owner from a
smelter, refinery or mint, as the case may be, less all costs and charges
associated with marketing, selling and delivering the product to the smelter,
refinery or mint, as the case may be.

2. If the product is treated at a smelter, refinery or mint owned, operated or
controlled by the Owner or an affiliate of it, all costs and charges referred to
in paragraph 1 hereof shall be equivalent to the prevailing competitive rates
charges by similar smelters, refineries or mints, as the case may be, in arm's
length transactions for the treatment of like quantities and quality of product.

3. Net Smelter Returns shall be calculated by the Owner at the end of the
calendar quarter in which the ores or concentrates from the Property were sold
or otherwise deemed disposed of and payment to the party entitled to receive
such payment (the "Royalty Holder") shall be made by the Owner within 45 days
after the end of each quarter.

4. The Owner shall provide the Royalty Holder with an annual statement of the
Net Smelter Returns as of the end of each December 31st on or before the 31st
day of March following such 31st day of December. The Owner shall maintain
adequate records which shall be made available to the Royalty Holder for a
period of eight (8) months following the delivery of such annual statement by
the Owner so as to enable the Royalty Holder to verify the correctness of its
determination of Net Smelter Returns. The determination of whether an entry has
been properly categorized or calculated shall be finally made by an independent
auditor to be appointed by the Owner if the parties cannot agree between
themselves, provided, however, that after the eighth month following the
delivery of an annual statement, such annual statement shall be deemed to be
correct and the Royalty Holder shall waive all of its rights to challenge same.

5. For the purposes of determining whether an amount received by the Owner is
properly received on account of "product extracted from ore mined from the
Property", as defined in paragraph 1 hereof, the parties agree that all amounts
received by the Owner on account of future sales contracts, hedging programs or
other commodity arrangements which relate to product extracted (or to be
extracted) from ore mined (or to be mined) from the Property shall be deemed to
be subject to the Net Smelter Returns Royalty and the Royalty Holder shall be
entitled to receive payments in respect thereof.

<PAGE>

                                  SCHEDULE "C"
                                  ------------

                                MFC BANCORP'S NSR
                                -----------------

                  [Letterhead of Rubicon Minerals Corporation]

May 14, 1999

MFC Bancorp Ltd.
6 Cours de Rive
P.O. Box 3540
1211 Geneva 3, Switzerland

Attention: Mr. Michael Smith
----------------------------

Dear Sirs:

RE:      POINT LEAMINGTON PROPERTY, NEWFOUNDLAND

Further to the letter agreement (the "Letter Agreement") made as of September 2,
1998 between MFC Merchant Bank S.A. and Rubicon Minerals corporation
("Rubicon"), Rubicon hereby writes this letter to set forth the terms of our
agreement with respect to the purchase, to be effective today, of the 22.5%
beneficial interest in certain mineral properties located in Newfoundland known
as the Point Leamington Property and more particularly described in Schedule "A"
attached hereto (hereinafter referred to as the "Property") formerly held by MFC
Bancorp S. A. and now held by MFC Bancorp Ltd. (collectively, with the MFC
Merchant Bank S.A., referred to herein as "MFC").

The terms of our Agreement are as follows:

TERMINATION OF LETTER AGREEMENT

1. The parties acknowledge that the Letter Agreement pursuant to which MFC
agreed to sell to Rubicon and Rubicon agreed to purchase a 25% beneficial
interest in the Property is hereby terminated and for greater certainty this
Agreement, including schedules attached hereto, constitutes the entire agreement
between Rubicon and MFC pertaining to MFC's interest in the Property and
supersedes all prior agreements, understandings, negotiations and discussions,
whether oral or written between Rubicon and MFC, and there are no warranties,
representations or other agreements between Rubicon and MFC in connection with
the Property except as specifically set forth herein.

PURCHASE AND SALE

2. At the Closing Time (as defined below), subject to the terms and conditions
set forth in this Agreement, MFC hereby agrees to sell and forever transfer to
Rubicon and Rubicon hereby agrees to purchase from MFC, the 22.5% beneficial
interest of MFC in the Property for and in consideration of Rubicon paying to
MFC the amount of $10,000.

CLOSING

3. The closing of the purchase and sale contemplated by Section 2 above shall
occur at 10:00 a.m. (Vancouver time) on the first business day after the date
this Agreement is executed or such other date as is mutually agreeable to the
parties (the "Closing Time"). At the Closing Time:

         (a)      MFC shall deliver to Rubicon all such documentation as is
                  reasonably available to MFC or in MFC's possession; and

         (b)      Rubicon shall deliver to MFC all such documentation as is
                  reasonably required by MFC.

<PAGE>

NET SMELTER RETURNS ROYALTY

4. If there is any production from the Property such that product is extracted
from ore mined from the Property, 0.5% net smelter returns royalty ("NSR") will
be payable from Rubicon to MFC with respect to 22.5% beneficial interest in the
Property held by MFC in accordance with the provision of Schedule "B" attached
hereto. Once Rubicon has acquired MFC's 22.5% beneficial interest in the
Property in accordance with Section 2 above, MFC shall have no remaining rights
with respect to the Property apart from the 0.5% NSR described in this Section
4. Notwithstanding the foregoing, Rubicon may purchase from MFC the 0.5% NSR at
any time in consideration of the payment by Ruicon to MFC of $500,000.

REGISTRATION

5. Rubicon shall be entitled to record this Agreement as evidence of its
interest in the Property and each party agrees to execute and deliver all
necessary documents to facilitate such recordings from time to time in order to
comply with Section 6 of the MINERAL ACT (Newfoundland) (the "Mineral Act").

ACKNOWLEDGMENT AND COVENANTS

6. The parties hereby acknowledge that the due diligence review with respect to
MFC's 22.5% beneficial interest in the Property has not been completed to date.
Accordingly, notwithstanding any other provision contained herein, the parties
acknowledge that MFC is making no representation or warranty including with
respect to its interest in the Property. For greater certainty, MFC shall in no
way be liable to Rubicon whatsoever in the event that MFC's beneficial interest
in the Property is, as a result of the due diligence review contemplated hereby,
determined to be less than 22.5%.

GENERAL

7. The parties agree that this Agreement shall be interpreted and governed
according to the laws of the Province of British Columbia and the laws of Canada
applicable therein.

8. This Agreement shall enure to the benefit of and be binding upon the parties
hereto and their respective successors and assigns.

9. All references to dollar amounts in this Agreement are to Canadian dollars
unless expressly stated otherwise.

10. The parties hereto agree to do all such things, carry out all such acts and
to execute and deliver all such documents, including further agreements, notices
and other instruments as may be necessary or useful for the purpose of giving
full effect to this Agreement.

11. This Agreement shall be effective from and as of September 2, 1998.

12. The parties consent to the recording of this Agreement with the Registry of
Confidential Agreements, Mineral Claims Recorders Office, Department of Mines &
Energy, Government of Newfoundland to comply with the provision of the Mineral
Act.

13. This Agreement may be executed in several counterparts, each of which taken
together shall constitute one and the same instrument, and anyone of the parties
may execute this Agreement by signing and delivering same by facsimile,
telegraph, cable or otherwise in writing, each delivery by any means to be
deemed "in writing" for the purpose of this Agreement.

If the foregoing terms and conditions reflect our agreement, please execute and
return a copy of this letter and we shall consider it to be a binding agreement.

<PAGE>

Yours very truly,

RUBICON MINERALS CORPORATION

Per: /s/
     ------------------------
     Authorized Signatory

Accepted and agreed to as of the 14th day of May, 1999.

MFC BANCORP LTD

Per: /s/
     ------------------------
     Authorized Signatory

<PAGE>

PROVINCE OF       )        IN THE MATTER
BRITISH COLUMBIA  )        OF AN
TO WIT:           )        AGREEMENT

                             AFFIDAVIT OF EXECUTION

         I, Warren Brown, of 2436 W 7 Ave., Vancouver, British Columbia, MAKE
OATH AND SAY THAT:

1. I was presently present and did see the annexed Agreement duly executed by
Rubicon Minerals Corporation under its corporate seal and the hand of Douglas
Forster, a director, on the 14th day of May, 1999;

2. I know the said party and know the said party to be a director of Rubicon
Minerals Corporation;

3. The signature "Douglas Forster" subscribed to the said Agreement is the
proper handwriting of the said Douglas Forster and the seal attached thereto is
the corporate seal of Rubicon Minerals Corporation.

SWORN BEFORE ME at the City of                            )
Vancouver, in the Province of British Columbia,           )
this 14th day of May, 1999                                )
                                                          )
/s/                                                       )   /s/
---------------------------------------------------       )   ------------------
A Notary Public for and within the Province of            )
British Columbia

IN THE CITY OF VANCOUVER                    )      IN THE MATTER
B.C.                                        )      OF AN
TO WIT:                                     )      AGREEMENT

                             AFFIDAVIT OF EXECUTION

         I, Warren Brown, of 2436 W 7 Ave., in the City of Vancouver, Province
of British Columbia, MAKE OATH AND SAY THAT:

1. I was presently present and did see the annexed Agreement duly executed by
MFC Bancorp Ltd. under its corporate seal and the hand of James Carter, a Vice
President, on the 14th day of May, 1999;

2. I know the said party and know the said party to be a Vice President of MFC
Bancorp Ltd.;

3. The signature "James Carter" subscribed to the said Agreement is the proper
handwriting of the said James Carter and the seal attached thereto is the
corporate seal of MFC Bancorp Ltd.

SWORN BEFORE ME at the City of                            )
Vancouver, in the Province of British Columbia,           )
this 14th day of May, 1999                                )
                                                          )
/s/                                                       )   /s/
------------------------------------------------          )   ------------------
A Notary Public for and within the Province of            )
British Columbia

<PAGE>

                          SCHEDULE "A" TO THE AGREEMENT
                         DATED THE 14TH DAY OF MAY, 1999
                                     BETWEEN
                        RUBICON MINERALS CORPORATION AND
                                MFC BANCORP LTD.

PROPERTY NAME                    MINING DIVISION                    MINING LEASE
-------------                    ---------------                    ------------

Point Leamington                 Green Bay, NF                      136(2655)

<PAGE>

                          SCHEDULE "B" TO THE AGREEMENT
                         DATED THE 14TH DAY OF MAY, 1999
                                     BETWEEN
                        RUBICON MINERALS CORPORATION AND
                                MFC BANCORP LTD.

1. Net Smelter Returns shall mean any and all amounts received, from time to
time, by the party obligated to pay the royalty (the "Owner") for product
extracted from ore mined from the Property, deducting therefrom all expenses
relating to the treatment of such product at any smelter, refinery or mint,
including all costs -and charges for the treatment, tolling, smelting, refining
or minting of such product and all costs and charges associated therewith, such
as costs and charges in respect of transportation, insurance, handling,
weighing, sampling, assaying and marketing, as well as penalties, representation
charges, referee's fees and expenses, import taxes and export taxes; that is to
say, Net Smelter Returns shall mean the net amount received by the Owner from a
smelter, refinery or mint, as the case may be, less all costs and charges
associated with marketing, selling and delivering the product to the smelter,
refinery or mint, as the case may be.

2. If the product is treated at a smelter, refinery or mint owned, operated or
controlled by the Owner or an affiliate of it, all costs and charges referred to
in paragraph 1 hereof shall be equivalent to the prevailing competitive rates
charges by similar smelters, refineries or mints, as the case may be, in arm's
length transactions for the treatment of like quantities and quality of product

3. Net Smelter Returns shall be calculated by the Owner at the end of the
calendar quarter in which the ores or concentrates from the Property were sold
or otherwise deemed disposed of and payment to the party entitled to receive
such payment (the "Royalty Holder") shall be made by the Owner within 45 days
after the end of each quarter.

4. The Owner shall provide the Royalty Holder with an annual statement of the
Net Smelter Returns as of the end of each December 31st on or before the 31st
day of March following such 31st day of December. The Owner shall maintain
adequate records which shall be made available to the Royalty Holder for a
period of eight (8) months following the delivery of such annual statement by
the Owner so as to enable the Royalty Holder to verify the correctness of its
determination of Net Smelter Returns. The determination of whether an entry has
been properly categorized or calculated shall be finally made by an independent
auditor to be appointed by the Owner if the parties cannot agree between
themselves, provided, however, that after the eighth month following the
delivery of an annual statement, such annual statement shall be deemed to be
correct and the Royalty Holder shall waive all of its rights to challenge same.

5. For the purposes of determining whether an amount received by the Owner is
properly received on account of "product extracted from ore mined from the
Property", as defined in paragraph 1 hereof, the parties agree that all amounts
received by the Owner on account of future sales contracts, hedging programs or
other commodity arrangements which relate to product extracted (or to be
extracted) from are mined (or to be mined) from the Property shall be deemed to
be subject to the Net Smelter Returns Royalty and the Royalty Holder shall be
entitled to receive payments in respect thereof.EXHIBIT 4.2
                                                                     -----------

                                     FORM 5D

                                ESCROW AGREEMENT
                                 VALUE SECURITY

THIS AGREEMENT is made as of the 7th day of May, 2004

AMONG:

         TLC Ventures Corp.
         700 - 900 West Hastings Street
         Vancouver, BC
         V6C 1E5
         (the "ISSUER")

AND:

         Pacific Corporate Trust Company
         10th Floor, 625 Howe Street
         Vancouver, BC
         V6C 3B8
         (the "ESCROW AGENT")

AND:

         EACH OF THE UNDERSIGNED SECURITYHOLDERS OF THE ISSUER
         (a "SECURITYHOLDER" or "YOU")

(collectively, the "PARTIES")

THIS AGREEMENT is being entered into by the Parties under Exchange POLICY 5.4 -
ESCROW, VENDOR CONSIDERATION AND RESALE RESTRICTIONS (the POLICY) in connection
with a transaction. The Issuer is a Tier 2 Issuer as described in POLICY 2.1 -
MINIMUM LISTING REQUIREMENTS.

FOR GOOD AND VALUABLE CONSIDERATION, the Parties agree as follows:

PART 1   ESCROW

1.1      APPOINTMENT OF ESCROW AGENT. The Issuer and the Securityholders appoint
         the Escrow Agent to act as escrow agent under this Agreement. The
         Escrow Agent accepts the appointment.

1.2      DEPOSIT OF ESCROW SECURITIES IN ESCROW

(1)      You are depositing the securities (ESCROW SECURITIES) listed opposite
         your name in Schedule "A" with the Escrow Agent to be held in escrow
         under this Agreement. You will immediately deliver or cause to be
         delivered to the Escrow Agent any share certificates or other evidence
         of these securities which you have or which you may later receive.

(2)      If you receive any other securities (ADDITIONAL ESCROW SECURITIES):

         (a)      as a dividend or other distribution on escrow securities;
         (b)      on the exercise of a right of purchase, conversion or exchange
                  attaching to escrow securities, including securities received
                  on conversion of special warrants;
         (c)      on a subdivision, or compulsory or automatic conversion or
                  exchange of escrow securities; or

<PAGE>

         (d)      from a successor issuer in a business combination, if Part 6
                  of this Agreement applies,

         you will deposit them in escrow with the Escrow Agent. You will deliver
         or cause to be delivered to the Escrow Agent any share certificates or
         other evidence of those additional escrow securities. When this
         Agreement refers to ESCROW SECURITIES, it includes additional escrow
         securities.

(3)      You will immediately deliver to the Escrow Agent any replacement share
         certificates or other evidence of additional escrow securities issued
         to you.

1.3      DIRECTION TO ESCROW AGENT. The Issuer and the Securityholders direct
         the Escrow Agent to hold the escrow securities in escrow until they are
         released from escrow under this Agreement.

PART 2   RELEASE OF ESCROW SECURITIES

2.1      RELEASE PROVISIONS. The provisions of Schedule B(2) is incorporated
         into and form part of this Agreement.

2.2      ADDITIONAL ESCROW SECURITIES. If you acquire additional escrow
         securities in connection with the transaction to which this agreement
         relates, those securities will be added to the securities already in
         escrow, to increase the number of remaining escrow securities. After
         that, all of the escrow securities will be released in accordance with
         the applicable release schedule.

2.3      ADDITIONAL REQUIREMENTS FOR TIER 2 SURPLUS ESCROW SECURITIES. Where
         securities are subject to a Tier 2 Surplus Security Escrow Agreement
         [Schedule B(4)], the following additional conditions apply:

(1)      The escrow securities will be cancelled if the asset, property,
         business or interest therein in consideration of which the securities
         were issued, is lost, or abandoned, or the operations or development of
         such asset, property or business is discontinued.

(2)      The Escrow Agent will not release escrow securities from escrow under
         schedule B(4) unless the Escrow Agent has received, within the 15 days
         prior to the release date, a certificate from the Issuer that:

         (a)      is signed by two directors or officers of the Issuer;
         (b)      is dated not more than 30 days prior to the release date;
         (c)      states that the assets for which the escrow securities were
                  issued (the "Assets") were included as assets on the balance
                  sheet of the Issuer in the most recent financial statements
                  filed by the Issuer with the Exchange; and
         (d)      states that the Issuer has no reasonable knowledge that the
                  Assets will not be included as assets on the balance sheet of
                  the Issuer in the next financial statements to be filed by the
                  Issuer with the Exchange.

(3)      If, at any time during the term of this Agreement, the Escrow Agent is
         prohibited from releasing escrow securities on a release date specified
         schedule B(4) as a result of section 2.3(2) above, then the Escrow
         Agent will not release any further escrow securities from escrow
         without the written consent of the Exchange.

(4)      If as a result of this section 2.3, the Escrow Agent does not release
         escrow securities from escrow for a period of five years, then:

         (a)      the Escrow Agent will deliver a notice to the Issuer, and will
                  include with the notice any certificates that the Escrow Agent
                  holds which evidence the escrow securities; and
         (b)      the Issuer and the Escrow Agent will take such action as is
                  necessary to cancel the escrow securities.

(5)      For the purposes of cancellation of escrow securities under this
         section, each Securityholder irrevocably appoints the Escrow Agent as
         his or her attorney, with authority to appoint substitute attorneys, as
         necessary.

                                        2
<PAGE>

2.4      DELIVERY OF SHARE CERTIFICATES FOR ESCROW SECURITIES. The Escrow Agent
         will send to each Securityholder any share certificates or other
         evidence of that Securityholder's escrow securities in the possession
         of the Escrow Agent released from escrow as soon as reasonably
         practicable after the release.

2.5      REPLACEMENT CERTIFICATES. If, on the date a Securityholder's escrow
         securities are to be released, the Escrow Agent holds a share
         certificate or other evidence representing more escrow securities than
         are to be released, the Escrow Agent will deliver the share certificate
         or other evidence to the Issuer or its transfer agent and request
         replacement share certificates or other evidence. The Issuer will cause
         replacement share certificates or other evidence to be prepared and
         delivered to the Escrow Agent. After the Escrow Agent receives the
         replacement share certificates or other evidence, the Escrow Agent will
         send to the Securityholder or at the Securityholder's direction, the
         replacement share certificate or other evidence of the escrow
         securities released. The Escrow Agent and Issuer will act as soon as
         reasonably practicable.

2.6      RELEASE UPON DEATH

(1)      If a Securityholder dies, the Securityholder's escrow securities will
         be released from escrow. The Escrow Agent will deliver any share
         certificates or other evidence of the escrow securities in the
         possession of the Escrow Agent to the Securityholder's legal
         representative provided that:

         (a)      the legal representative of the deceased Securityholder
                  provides written notice to the Exchange of the intent to
                  release the escrow securities as at a specified date which is
                  at least 10 business days and not more than 30 business days
                  prior to the proposed release; and
         (b)      the Exchange does not provide notice of its objection to the
                  Escrow Agent prior to 10:00 a.m. (Vancouver time) or 11:00
                  a.m. (Calgary time) on such specified date.

(2)      Prior to delivery the Escrow Agent must receive:

         (a)      a certified copy of the death certificate; and
         (b)      any evidence of the legal representative's status that the
                  Escrow Agent may reasonably require.

2.7      EXCHANGE DISCRETION TO TERMINATE. If the Escrow Agent receives a
         request from the Exchange to halt or terminate the release of escrow
         securities from escrow, then the Escrow Agent will comply with that
         request, and will not release any escrow securities from escrow until
         it receives the written consent of the Exchange.

2.8      DISCRETIONARY APPLICATIONS. The Exchange may consent to the release
         from escrow of escrow securities in other circumstances and on terms
         and on conditions it deems appropriate. Securities may be released from
         escrow provided that the Escrow Agent receives written notice from the
         Exchange.

PART 3   EARLY RELEASE ON CHANGE OF ISSUER STATUS

3.1      EARLY RELEASE - GRADUATION TO TIER 1

(1)      When a Tier 2 Issuer becomes a Tier 1 Issuer, the release schedule for
         its escrow securities changes.

(2)      If the Issuer reasonably believes that it meets the Minimum Listing
         Requirements of a Tier 1 Issuer as described in POLICY 2.1 - MINIMUM
         LISTING REQUIREMENTS, the Issuer may make application to the Exchange
         to be listed as a Tier 1 Issuer. The Issuer must also concurrently
         provide notice to the Escrow Agent that it is making such an
         application.

(3)      If the graduation to Tier 1 is accepted by the Exchange, the Exchange
         will issue an Exchange Bulletin confirming final acceptance for listing
         of the Issuer on Tier 1. Upon issuance of this Bulletin the Issuer must
         immediately:

                                        3
<PAGE>

         (a)      issue a news release:

                  (i)      disclosing that it has been accepted for graduation
                           to Tier 1; and
                  (ii)     disclosing the number of escrow securities to be
                           released and the dates of release under the new
                           schedule; and

         (b)      provide the news release, together with a copy of the Exchange
                  Bulletin, to the Escrow Agent.

(4)      Upon completion of the steps in section 3.1(3) above, the Issuer's
         release schedule will be replaced as follows:

------------------------------------     -------------------------------------
APPLICABLE SCHEDULE PRE-GRADUATION       APPLICABLE SCHEDULE POST-GRADUATION
------------------------------------     -------------------------------------
Schedule B(2)                            Schedule B(1)
------------------------------------     -------------------------------------
Schedule B(4)                            Schedule B(3)
------------------------------------     -------------------------------------

(5)      Within 10 days of the Exchange Bulletin confirming the Issuer's listing
         on Tier 1, the Escrow Agent must release any escrow securities from
         escrow securities which under the new release schedule would have been
         releasable at a date prior to the Exchange Bulletin.

PART 4   DEALING WITH ESCROW SECURITIES

4.1      RESTRICTION ON TRANSFER, ETC. Unless it is expressly permitted in this
         Agreement, you will not sell, transfer, assign, mortgage, enter into a
         derivative transaction concerning, or otherwise deal in any way with
         your escrow securities or any related share certificates or other
         evidence of the escrow securities. If a Securityholder is a private
         company controlled by one or more Principals of the Issuer, the
         Securityholder may not participate in a transaction that results in a
         change of its control or a change in the economic exposure of the
         Principals to the risks of holding escrow securities.

4.2      PLEDGE, MORTGAGE OR CHARGE AS COLLATERAL FOR A LOAN. Subject to
         Exchange acceptance, you may pledge, mortgage or charge your escrow
         securities to a financial institution as collateral for a loan,
         provided that no escrow securities or any share certificates or other
         evidence of escrow securities will be transferred or delivered by the
         Escrow Agent to the financial institution for this purpose. The loan
         agreement must provide that the escrow securities will remain in escrow
         if the lender realizes on the escrow securities to satisfy the loan.

4.3      VOTING OF ESCROW SECURITIES. Although you may exercise voting rights
         attached to your escrow securities, you may not, while your securities
         are held in escrow, exercise voting rights attached to any securities
         (whether in escrow or not) in support of one or more arrangements that
         would result in the repayment of capital being made on the escrow
         securities prior to a winding up of the Issuer.

4.4      DIVIDENDS ON ESCROW SECURITIES. You may receive a dividend or other
         distribution on your escrow securities, and elect the manner of payment
         from the standard options offered by the Issuer. If the Escrow Agent
         receives a dividend or other distribution on your escrow securities,
         other than additional escrow securities, the Escrow Agent will pay the
         dividend or other distribution to you on receipt.

4.5      EXERCISE OF OTHER RIGHTS ATTACHING TO ESCROW SECURITIES. You may
         exercise your rights to exchange or convert your escrow securities in
         accordance with this agreement.

PART 5   PERMITTED TRANSFERS WITHIN ESCROW

5.1      TRANSFER TO DIRECTORS AND SENIOR OFFICERS

(1)      You may transfer escrow securities within escrow to existing or, upon
         their appointment, incoming directors or senior officers of the Issuer
         or any of its material operating subsidiaries, if the Issuer's board of
         directors has approved the transfer and provided that:

                                        4
<PAGE>

         (a)      you make application to transfer under the Policy at least 10
                  business days and not more than 30 business days prior to the
                  date of the proposed transfer; and
         (b)      the Exchange does not provide notice of its objection to the
                  Escrow Agent prior to 10:00 a.m. (Vancouver time) or 11:00
                  a.m. (Calgary time) on such specified date.

(2)      Prior to the transfer the Escrow Agent must receive:

         (a)      a certified copy of the resolution of the board of directors
                  of the Issuer approving the transfer;
         (b)      a certificate signed by a director or officer of the Issuer
                  authorized to sign, stating that the transfer is to a director
                  or senior officer of the Issuer or a material operating
                  subsidiary and that any required acceptance from the Exchange
                  the Issuer is listed on has been received;
         (c)      an acknowledgment in the form of Form 5E signed by the
                  transferee; and
         (d)      a transfer power of attorney, completed and executed by the
                  transferor in accordance with the requirements of the Issuer's
                  transfer agent.

5.2      TRANSFER TO OTHER PRINCIPALS

(1)      You may transfer escrow securities within escrow:

         (a)      to a person or company that before the proposed transfer holds
                  more than 20% of the voting rights attached to the Issuer's
                  outstanding securities; or
         (b) to a person or company that after the proposed transfer

                  (i)      will hold more than 10% of the voting rights attached
                           to the Issuer's outstanding securities, and
                  (ii)     has the right to elect or appoint one or more
                           directors or senior officers of the Issuer or any of
                           its material operating subsidiaries,

                           provided that:

         (c)      you make an application to transfer under the Policy at least
                  10 business days and not more than 30 business days prior to
                  the date of the proposed transfer; and
         (d)      the Exchange does not provide notice of its objection to the
                  Escrow Agent prior to 10:00 a.m. (Vancouver time) or 11:00
                  a.m. (Calgary time) on such specified date.

(2)      Prior to the transfer the Escrow Agent must receive:

         (a)      a certificate signed by a director or officer of the Issuer
                  authorized to sign, stating that:

                  (i)      the transfer is to a person or company that the
                           officer believes, after reasonable investigation,
                           holds more than 20% of the voting rights attached to
                           the Issuer's outstanding securities before the
                           proposed transfer; or
                  (ii)     the transfer is to a person or company that:

                           (A)      the officer believes, after reasonable
                                    investigation, will hold more than 10% of
                                    the voting rights attached to the Issuer's
                                    outstanding securities; and
                           (B)      has the right to elect or appoint one or
                                    more directors or senior officers of the
                                    Issuer or any of its material operating
                                    subsidiaries

                           after the proposed transfer; and

                  (iii)    any required approval from the Exchange or any other
                           exchange on which the Issuer is listed has been
                           received;

         (b)      an acknowledgment in the form of Form 5E signed by the
                  transferee; and

                                        5
<PAGE>

         (c)      a transfer power of attorney, completed and executed by the
                  transferor in accordance with the requirements of the Issuer's
                  transfer agent.

5.3      TRANSFER UPON BANKRUPTCY

(1)      You may transfer escrow securities within escrow to a trustee in
         bankruptcy or another person or company entitled to escrow securities
         on bankruptcy provided that:

         (a)      you make application to transfer under the Policy at least 10
                  business days and not more than 30 business days prior to the
                  date of the proposed transfer; and
         (b)      the Exchange does not provide notice of its objection to the
                  Escrow Agent prior to 10:00 a.m. (Vancouver time) or 11:00
                  a.m. (Calgary time) on such specified date.

(2)      Prior to the transfer, the Escrow Agent must receive:

         (a)      a certified copy of either

                  (i)      the assignment in bankruptcy filed with the
                           Superintendent of Bankruptcy, or
                  (ii)     the receiving order adjudging the Securityholder
                           bankrupt;

         (b)      a certified copy of a certificate of appointment of the
                  trustee in bankruptcy;
         (c)      a transfer power of attorney, duly completed and executed by
                  the transferor in accordance with the requirements of the
                  Issuer's transfer agent; and
         (d)      an acknowledgment in the form of Form 5E signed by

                  (i)      the trustee in bankruptcy or
                  (ii)     on direction from the trustee, with evidence of that
                           direction attached to the acknowledgement form,
                           another person or company legally entitled to the
                           escrow securities.

5.4      TRANSFER UPON REALIZATION OF PLEDGED, MORTGAGED OR CHARGED ESCROW
         SECURITIES

(1)      You may transfer escrow securities you have pledged, mortgaged or
         charged under section 4.2 to a financial institution as collateral for
         a loan within escrow to the lender on realization provided that:

         (a)      you make application to transfer under the Policy at least 10
                  business days and not more than 30 business days prior to the
                  date of the proposed transfer; and
         (b)      the Exchange does not provide notice of its objection to the
                  Escrow Agent prior to 10:00 a.m. (Vancouver time) or 11:00
                  a.m. (Calgary time) on such specified date.

(2)      Prior to the transfer the Escrow Agent must receive:

         (a)      a statutory declaration of an officer of the financial
                  institution that the financial institution is legally entitled
                  to the escrow securities;
         (b)      evidence that the Exchange has accepted the pledge, mortgage
                  or charge of escrow securities to the financial institution;
         (c)      a transfer power of attorney, executed by the transferor in
                  accordance with the requirements of the Issuer's transfer
                  agent; and
         (d)      an acknowledgement in the form of Form 5E signed by the
                  financial institution.

5.5      TRANSFER TO CERTAIN PLANS AND FUNDS

(1)      You may transfer escrow securities within escrow to or between a
         registered retirement savings plan (RRSP), registered retirement income
         fund (RRIF) or other similar registered plan or fund with a trustee,
         where the beneficiaries of the plan or fund are limited to you and your
         spouse, children and parents provided that:

                                        6
<PAGE>

         (a)      you make application to transfer under the Policy at least 10
                  business days and not more than 30 business days prior to the
                  date of the proposed transfer; and
         (b)      the Exchange does not provide notice of its objection to the
                  Escrow Agent prior to 10:00 a.m. (Vancouver time) or 11:00
                  a.m. (Calgary time) on such specified date.

(2)      Prior to the transfer the Escrow Agent must receive:

         (a)      evidence from the trustee of the transferee plan or fund, or
                  the trustee's agent, stating that, to the best of the
                  trustee's knowledge, the annuitant of the RRSP or RRIF or the
                  beneficiaries of the other registered plan or fund do not
                  include any person or company other than you and your spouse,
                  children and parents;
         (b)      a transfer power of attorney, executed by the transferor in
                  accordance with the requirements of the Issuer's transfer
                  agent; and
         (c)      an acknowledgement in the form of Form 5E signed by the
                  trustee of the plan or fund.

5.6      EFFECT OF TRANSFER WITHIN ESCROW. After the transfer of escrow
         securities within escrow, the escrow securities will remain in escrow
         and released from escrow under this Agreement as if no transfer has
         occurred, on the same terms that applied before the transfer. The
         Escrow Agent will not deliver any share certificates or other evidence
         of the escrow securities to transferees under this Part 5.

5.7      DISCRETIONARY APPLICATIONS. The Exchange may consent to the transfer
         within escrow of escrow securities in other circumstances and on such
         terms and conditions as it deems appropriate.

PART 6   BUSINESS COMBINATIONS

6.1      BUSINESS COMBINATIONS

This Part applies to the following (BUSINESS COMBINATIONS):

         (a)      a formal take-over bid for all outstanding securities of the
                  Issuer or which, if successful, would result in a change of
                  control of the Issuer
         (b)      a formal issuer bid for all outstanding equity securities of
                  the Issuer
         (c)      a statutory arrangement
         (d)      an amalgamation
         (e)      a merger
         (f)      a reorganization that has an effect similar to an amalgamation
                  or merger

6.2      DELIVERY TO ESCROW AGENT

(1)      You may tender your escrow securities to a person or company in a
         business combination. At least five business days prior to the date the
         escrow securities must be tendered under the business combination, you
         must deliver to the Escrow Agent:

         (a)      a written direction signed by you that directs the Escrow
                  Agent to deliver to the depositary under the business
                  combination any share certificates or other evidence of the
                  escrow securities and a completed and executed cover letter or
                  similar document and, where required, transfer power of
                  attorney completed and executed for transfer in accordance
                  with the requirements of the Issuer's depository, and any
                  other documentation specified or provided by you and required
                  to be delivered to the depositary under the business
                  combination;
         (b)      written consent of the Exchange; and
         (c)      any other information concerning the business combination as
                  the Escrow Agent may reasonably require.

                                        7
<PAGE>

6.3      DELIVERY TO DEPOSITARY

(1)      As soon as reasonably practicable, and in any event no later than three
         business days after the Escrow Agent receives the documents and
         information required under section 6.2, the Escrow Agent will deliver
         to the depositary, in accordance with the direction, any share
         certificates or other evidence of the escrow securities, and a letter
         addressed to the depositary that

         (a)      identifies the escrow securities that are being tendered;
         (b)      states that the escrow securities are held in escrow;
         (c)      states that the escrow securities are delivered only for the
                  purposes of the business combination and that they will be
                  released from escrow only after the Escrow Agent receives the
                  information described in section 6.4;
         (d)      if any share certificates or other evidence of the escrow
                  securities have been delivered to the depositary, requires the
                  depositary to return to the Escrow Agent, as soon as
                  practicable, the share certificates or other evidence of
                  escrow securities that are not released from escrow into the
                  business combination; and
         (e)      where applicable, requires the depositary to deliver or cause
                  to be delivered to the Escrow Agent, as soon as practicable,
                  share certificates or other evidence of additional escrow
                  securities that you acquire under the business combination.

6.4      RELEASE OF ESCROW SECURITIES TO DEPOSITARY

(1)      The Escrow Agent will release from escrow the tendered escrow
         securities provided that:

         (a)      you or the Issuer make application to release the tendered
                  securities under the Policy on a date at least 10 business
                  days and not more than 30 business days prior to the date of
                  the proposed release date; and
         (b)      the Exchange does not provide notice of its objection to the
                  Escrow Agent prior to 10:00 a.m. (Vancouver time) or 11:00
                  a.m. (Calgary time) on such specified date;
         (c)      the Escrow Agent receives a declaration signed by the
                  depositary or, if the direction identifies the depositary as
                  acting on behalf of another person or company in respect of
                  the business combination, by that other person or company,
                  that

                  (i)      the terms and conditions of the business combination
                           have been met or waived; and
                  (ii)     the escrow securities have either been taken up and
                           paid for or are subject to an unconditional
                           obligation to be taken up and paid for under the
                           business combination.

6.5      ESCROW OF NEW SECURITIES

(1)      If you receive securities (NEW SECURITIES) of another issuer (SUCCESSOR
         ISSUER) in exchange for your escrow securities, the new securities will
         be subject to escrow in substitution for the tendered escrow
         securities, unless, immediately after completion of the business
         combination,

         (a)      the successor issuer is an exempt issuer as defined in the
                  National Policy;
         (b)      the escrow holder was subject to a Value Security Escrow
                  Agreement and is not a Principal of the successor issuer; and
         (c)      the escrow holder holds less than 1% of the voting rights
                  attached to the successor issuer's outstanding securities. (In
                  calculating this percentage, include securities that may be
                  issued to the escrow holder under outstanding convertible
                  securities in both the escrow holders securities and the total
                  securities outstanding.)

6.6      RELEASE FROM ESCROW OF NEW SECURITIES

(1)      The Escrow Agent will send to a Securityholder share certificates or
         other evidence of the Securityholder's new securities as soon as
         reasonably practicable after the Escrow Agent receives

         (a)      a certificate from the successor issuer signed by a director
                  or officer of the successor issuer authorized to sign

                                        8
<PAGE>

                  (i)      stating that it is a successor issuer to the Issuer
                           as a result of a business combination;
                  (ii)     containing a list of the securityholders whose new
                           securities are subject to escrow under section 6.5;
                  (iii)    containing a list of the securityholders whose new
                           securities are not subject to escrow under section
                           6.5;

         (b)      written confirmation from the Exchange that it has accepted
                  the list of Securityholders whose new securities are not
                  subject to escrow under section 6.5; and

(2)      The escrow securities of the Securityholders whose securities are not
         subject to escrow under section 6.5, will be released, and the Escrow
         Agent will send any share certificates or other evidence of the escrow
         securities in the possession of the Escrow Agent in accordance with
         section 2.4.

(3)      If your new securities are subject to escrow, unless subsection (4)
         applies, the Escrow Agent will hold your new securities in escrow on
         the same terms and conditions, including release dates, as applied to
         the escrow securities that you exchanged.

(4)      If the Issuer is a Tier 2 Issuer and the successor issuer is a Tier 1
         Issuer, the release provisions in section 3.1(4) relating to graduation
         will apply. .

PART 7   RESIGNATION OF ESCROW AGENT

7.1      RESIGNATION OF ESCROW AGENT

(1)      If the Escrow Agent wishes to resign as escrow agent, the Escrow Agent
         will give written notice to the Issuer and the Exchange.

(2)      If the Issuer wishes to terminate the Escrow Agent as escrow agent, the
         Issuer will give written notice to the Escrow Agent and the Exchange.

(3)      If the Escrow Agent resigns or is terminated, the Issuer will be
         responsible for ensuring that the Escrow Agent is replaced not later
         than the resignation or termination date by another escrow agent that
         is acceptable to the Exchange and that has accepted such appointment,
         which appointment will be binding on the Issuer and the
         Securityholders.

(4)      The resignation or termination of the Escrow Agent will be effective,
         and the Escrow Agent will cease to be bound by this Agreement, on the
         date that is 60 days after the date of receipt of the notices referred
         to above by the Escrow Agent or Issuer, as applicable, or on such other
         date as the Escrow Agent and the Issuer may agree upon (the
         "resignation or termination date"), provided that the resignation or
         termination date will not be less than 10 business days before a
         release date.

(5)      If the Issuer has not appointed a successor escrow agent within 60 days
         of the resignation or termination date, the Escrow Agent will apply, at
         the Issuer's expense, to a court of competent jurisdiction for the
         appointment of a successor escrow agent, and the duties and
         responsibilities of the Escrow Agent will cease immediately upon such
         appointment.

(6)      On any new appointment under this section, the successor Escrow Agent
         will be vested with the same powers, rights, duties and obligations as
         if it had been originally named herein as Escrow Agent, without any
         further assurance, conveyance, act or deed. The predecessor Escrow
         Agent, upon receipt of payment for any outstanding account for its
         services and expenses then unpaid, will transfer, deliver and pay over
         to the successor Escrow Agent, who will be entitled to receive, all
         securities, records or other property on deposit with the predecessor
         Escrow Agent in relation to this Agreement and the predecessor Escrow
         Agent will thereupon be discharged as Escrow Agent.

(7)      If any changes are made to Part 8 of this Agreement as a result of the
         appointment of the successor Escrow Agent, those changes must not be
         inconsistent with the Policy and the terms of this Agreement and the
         Issuer to this Agreement will fie a copy of the new Agreement with the
         Exchange.

                                        9
<PAGE>

PART 8   OTHER CONTRACTUAL ARRANGEMENTS

8.1      ESCROW AGENT NOT A TRUSTEE. The Escrow Agent accepts duties and
         responsibilities under this Agreement, and the escrow securities and
         any share certificates or other evidence of these securities, solely as
         a custodian, bailee and agent. No trust is intended to be, or is or
         will be, created hereby and the Escrow Agent shall owe no duties
         hereunder as a trustee.

8.2      ESCROW AGENT NOT RESPONSIBLE FOR GENUINENESS. The Escrow Agent will not
         be responsible or liable in any manner whatever for the sufficiency,
         correctness, genuineness or validity of any escrow security deposited
         with it.

8.3      ESCROW AGENT NOT RESPONSIBLE FOR FURNISHED INFORMATION. The Escrow
         Agent will have no responsibility for seeking, obtaining, compiling,
         preparing or determining the accuracy of any information or document,
         including the representative capacity in which a party purports to act,
         that the Escrow Agent receives as a condition to a release from escrow
         or a transfer of escrow securities within escrow under this Agreement.

8.4      ESCROW AGENT NOT RESPONSIBLE AFTER RELEASE. The Escrow Agent will have
         no responsibility for escrow securities that it has released to a
         Securityholder or at a Securityholder's direction according to this
         Agreement.

8.5      INDEMNIFICATION OF ESCROW AGENT. The Issuer and each Securityholder
         hereby jointly and severally agree to indemnify and hold harmless the
         Escrow Agent, its affiliates, and their current and former directors,
         officers, employees and agents from and against any and all claims,
         demands, losses, penalties, costs, expenses, fees and liabilities,
         including, without limitation, legal fees and expenses, directly or
         indirectly arising out of, in connection with, or in respect of, this
         Agreement, except where same result directly and principally from gross
         negligence, wilful misconduct or bad faith on the part of the Escrow
         Agent. This indemnity survives the release of the escrow securities,
         the resignation or termination of the Escrow Agreement and the
         termination of this Agreement.

8.6      ADDITIONAL PROVISIONS

(1) The Escrow Agent will be protected in acting and relying reasonably upon any
notice, direction, instruction, order, certificate, confirmation, request,
waiver, consent, receipt, statutory declaration or other paper or document
(collectively referred to as "Documents") furnished to it and purportedly signed
by any officer or person required to or entitled to execute and deliver to the
Escrow Agent any such Document in connection with this Agreement, not only as to
its due execution and the validity and effectiveness of its provisions, but also
as to the truth or accuracy of any information therein contained, which it in
good faith believes to be genuine.

(2) The Escrow Agent will not be bound by any notice of a claim or demand with
respect thereto, or any waiver, modification, amendment, termination or
rescission of this Agreement unless received by it in writing, and signed by the
other Parties and approved by the Exchange, and, if the duties or
indemnification of the Escrow Agent in this Agreement are affected, unless it
has given its prior written consent.

(3) The Escrow Agent may consult with or retain such legal counsel and advisors
as it may reasonably require for the purpose of discharging its duties or
determining its rights under this Agreement and may rely and act upon the advice
of such counsel or advisor. The Escrow Agent will give written notice to the
Issuer as soon as practicable that it has retained legal counsel or other
advisors. The Issuer will pay or reimburse the Escrow Agent for any reasonable
fees, expenses and disbursements of such counsel or advisors.

(4) In the event of any disagreement arising under the terms of this Agreement,
the Escrow Agent will be entitled, at its option, to refuse to comply with any
and all demands whatsoever until the dispute is settled either by a written
agreement among the Parties or by a court of competent jurisdiction.

                                       10
<PAGE>

(5) The Escrow Agent will have no duties or responsibilities except as expressly
provided in this Agreement and will have no duty or responsibility under the
Policy or arising under any other agreement, including any agreement referred to
in this Agreement, to which the Escrow Agent is not a party.

(6) The Escrow Agent will have the right not to act and will not be liable for
refusing to act unless it has received clear and reasonable documentation that
complies with the terms of this Agreement. Such documentation must not require
the exercise of any discretion or independent judgment.

(7) The Escrow Agent is authorized to cancel any share certificate delivered to
it and hold such Securityholder's escrow securities in electronic, or
uncertificated form only, pending release of such securities from escrow.

(8) The Escrow Agent will have no responsibility with respect to any escrow
securities in respect of which no share certificate or other evidence or
electronic or uncertificated form of these securities has been delivered to it,
or otherwise received by it.

8.7      LIMITATION OF LIABILITY OF ESCROW AGENT. The Escrow Agent will not be
         liable to any of the Parties hereunder for any action taken or omitted
         to be taken by it under or in connection with this Agreement, except
         for losses directly, principally and immediately caused by its bad
         faith, wilful misconduct or gross negligence. Under no circumstances
         will the Escrow Agent be liable for any special, indirect, incidental,
         consequential, exemplary, aggravated or punitive losses or damages
         hereunder, including any loss of profits, whether foreseeable or
         unforeseeable. Notwithstanding the foregoing or any other provision of
         this Agreement, in no event will the collective liability of the Escrow
         Agent under or in connection with this Agreement to any one or more
         Parties, except for losses directly caused by its bad faith or willful
         misconduct, exceed the amount of its annual fees under this Agreement
         or the amount of three thousand dollars ($3,000.00), whichever amount
         shall be greater.

8.8      REMUNERATION OF ESCROW AGENT. The Issuer will pay the Escrow Agent
         reasonable remuneration for its services under this Agreement, which
         fees are subject to revision from time to time on 30 days' written
         notice. The Issuer will reimburse the Escrow Agent for its expenses and
         disbursements. Any amount due under this section and unpaid 30 days
         after request for such payment, will bear interest from the expiration
         of such period at a rate per annum equal to the then current rate
         charged by the Escrow Agent, payable on demand.

PART 9   INDEMNIFICATION OF THE EXCHANGE

9.1      INDEMNIFICATION

(1)      The Issuer and each Securityholder jointly and severally:

         (a)      release, indemnify and save harmless the Exchange from all
                  costs (including legal cost, expenses and disbursements),
                  charges, claims, demands, damages, liabilities, losses and
                  expenses incurred by the Exchange;
         (b)      agree not to make or bring a claim or demand, or commence any
                  action, against the Exchange; and
         (c)      agree to indemnify and save harmless the Exchange from all
                  costs (including legal costs) and damages that the Exchange
                  incurs or is required by law to pay as a result of any
                  person's claim, demand or action,

         arising from any and every act or omission committed or omitted by the
         Exchange, in connection with this Agreement, even if said act or
         omission was negligent, or constituted a breach of the terms of this
         Agreement.

(2)      This indemnity survives the release of the escrow securities and the
         termination of this Agreement.

                                       11
<PAGE>

PART 10  NOTICES

10.1     NOTICE TO ESCROW AGENT. Documents will be considered to have been
         delivered to the Escrow Agent on the next business day following the
         date of transmission, if delivered by fax, the date of delivery, if
         delivered by hand during normal business hours or by prepaid courier,
         or 5 business days after the date of mailing, if delivered by mail, to
         the following:

         Pacific Corporate Trust Company
         10th Floor, 625 Howe Street
         Vancouver, BC  V6C 3B8
         Attention: Manager, Corporate Trust
         Fax: 604-689-8144

10.2     NOTICE TO ISSUER. Documents will be considered to have been delivered
         to the Issuer on the next business day following the date of
         transmission, if delivered by fax, the date of delivery, if delivered
         by hand or by prepaid courier, or 5 business days after the date of
         mailing, if delivered by mail, to the following:

         TLC Ventures Corp.
         700 - 900 West Hastings Street
         Vancouver, BC
         V6C 1E5
         Contact Person:  Ed Farrauto
         Fax Number:

10.3     DELIVERIES TO SECURITYHOLDERS. Documents will be considered to have
         been delivered to a Securityholder on the date of delivery, if
         delivered by hand or by prepaid courier, or 5 business days after the
         date of mailing, if delivered by mail, to the address on the Issuer's
         share register.

         Any share certificates or other evidence of a Securityholder's escrow
         securities will be sent to the Securityholder's address on the Issuer's
         share register unless the Securityholder has advised the Escrow Agent
         in writing otherwise at least ten business days before the escrow
         securities are released from escrow. The Issuer will provide the Escrow
         Agent with each Securityholder's address as listed on the Issuer's
         share register.

10.4     CHANGE OF ADDRESS

(1)      The Escrow Agent may change its address for delivery by delivering
         notice of the change of address to the Issuer and to each
         Securityholder.

(2)      The Issuer may change its address for delivery by delivering notice of
         the change of address to the Escrow Agent and to each Securityholder.

(3)      A Securityholder may change that Securityholder's address for delivery
         by delivering notice of the change of address to the Issuer and to the
         Escrow Agent.

10.5     POSTAL INTERRUPTION. A party to this Agreement will not mail a Document
         if the party is aware of an actual or impending disruption of postal
         service.

PART 11  GENERAL

11.1     INTERPRETATION - "HOLDING SECURITIES". Unless the context otherwise
         requires, all capitalized terms that are not otherwise defined in this
         Agreement, shall have the meanings as defined in POLICY 1.1 -
         INTERPRETATION or in POLICY 5.4 - ESCROW, VENDOR CONSIDERATION AND
         RESALE RESTRICTIONS.

         When this Agreement refers to securities that a Securityholder "holds",
         it means that the Securityholder has direct or indirect beneficial
         ownership of or control or direction over the securities.

                                       12
<PAGE>

11.2     ENFORCEMENT BY THIRD PARTIES. The Issuer enters this Agreement both on
         its own behalf and as trustee for the Exchange and the Securityholders
         of the Issuer, and this Agreement may be enforced by either the
         Exchange, or the Securityholders of the Issuer, or both.

11.3     TERMINATION, AMENDMENT, AND WAIVER OF AGREEMENT

(1)      Subject to subsection 11.3(3), this Agreement shall only terminate:

         (a)      with respect to all the Parties:

                  (i)      as specifically provided in this Agreement;
                  (ii)     subject to subsection 11.3(2), upon the agreement of
                           all Parties; or
                  (iii)    when the Securities of all Securityholders have been
                           released from escrow pursuant to this Agreement; and

         (b)      with respect to a Party:

                  (i)      as specifically provided in this Agreement; or
                  (ii)     if the Party is a Securityholder, when all of the
                           Securityholder's Securities have been released from
                           escrow pursuant to this Agreement.

(2)      An agreement to terminate this Agreement pursuant to section
         11.3(1)(a)(ii) shall not be effective unless and until the agreement to
         terminate

         (a)      is evidenced by a memorandum in writing signed by all Parties;
         (b)      has been consented to in writing by the Exchange; and
         (c)      has been approved by a majority of securityholders of the
                  Issuer who are not Securityholders.

(3)      Notwithstanding any other provision in this Agreement, the obligations
         set forth in section 9.1 shall survive the termination of this
         Agreement and the resignation or removal of the Escrow Agent.

(4)      No amendment or waiver of this Agreement or any part of this Agreement
         shall be effective unless the amendment or waiver:

         (a)      is evidenced by a memorandum in writing signed by all Parties;
         (b)      has been approved in writing by the Exchange; and
         (c)      has been approved by a majority of securityholders of the
                  Issuer who are not Securityholders.

(5)      No waiver of any of the provisions of this Agreement shall be deemed or
         shall constitute a waiver of any other provision (whether similar or
         not), nor shall any waiver constitute a continuing waiver, unless
         expressly provided.

11.4     SEVERANCE OF ILLEGAL PROVISION. Any provision or part of a provision of
         this Agreement determined by a court of competent jurisdiction to be
         invalid, illegal or unenforceable shall be deemed stricken to the
         extent necessary to eliminate any invalidity, illegality or
         unenforceability, and the rest of the Agreement and all other
         provisions and parts thereof shall remain in full force and effect and
         be binding upon the parties hereto as though the said illegal and/or
         unenforceable provision or part thereof had never been included in this
         Agreement.

11.5     FURTHER ASSURANCES. The Parties will execute and deliver any further
         documents and perform any further acts reasonably requested by any of
         the Parties to this agreement which are necessary to carry out the
         intent of this Agreement.

11.6     TIME.  Time is of the essence of this Agreement.

                                       13
<PAGE>

11.7     CONSENT OF EXCHANGE TO AMENDMENT. The Exchange must approve any
         amendment to this Agreement.

11.8     ADDITIONAL ESCROW REQUIREMENTS. A Canadian exchange may impose escrow
         terms or conditions in addition to those set out in this Agreement.

11.9     GOVERNING LAWS. The laws of British Columbia and the applicable laws of
         Canada will govern this Agreement.

11.10    COUNTERPARTS. The Parties may execute this Agreement by fax and in
         counterparts, each of which will be considered an original and all of
         which will be one agreement.

11.11    SINGULAR AND PLURAL. Wherever a singular expression is used in this
         Agreement, that expression is considered as including the plural or the
         body corporate where required by the context.

11.12    LANGUAGE. This Agreement has been drawn up in the English language at
         the request of all parties. Cet acte a ete redige en anglais a la
         demande de toutes les parties.

11.13    BENEFIT AND BINDING EFFECT. This Agreement will benefit and bind the
         Parties and their heirs, executors, administrators, successors and
         permitted assigns and all persons claiming through them as if they had
         been a Party to this Agreement.

11.14    ENTIRE AGREEMENT. This is the entire agreement among the Parties
         concerning the subject matter set out in this Agreement and supersedes
         any and all prior understandings and agreements.

11.15    SUCCESSOR TO ESCROW AGENT. Any corporation with which the Escrow Agent
         may be amalgamated, merged or consolidated, or any corporation
         succeeding to the business of the Escrow Agent will be the successor of
         the Escrow Agent under this Agreement without any further act on its
         part or on the part or any of the Parties, provided that the successor
         is recognized by the Exchange.

The Parties have executed and delivered this Agreement as of the date set out
above.

PACIFIC CORPORATE TRUST COMPANY

/s/_________________________________________
Authorized signatory

/s/_________________________________________
Authorized signatory

TLC VENTURES CORP.

/s/_________________________________________
Authorized signatory

/s/_________________________________________
Authorized signatory

If the Securityholder is an individual:

/s/_________________________________________
Ed Farrauto

/s/_________________________________________
Richard Henley

                                       14
<PAGE>

SCHEDULE "A" TO ESCROW AGREEMENT

SECURITYHOLDER

NAME: ED FARRAUTO

SIGNATURE:  /s/ Ed Farrauto

ADDRESS FOR NOTICE: 700 - 900 West Hastings Street
                    Vancouver, B.C.  V6C 1E5

SECURITIES:

----------------------------------- ----------- --------------------------------
CLASS AND TYPE                      NUMBER      CERTIFICATE(S) (IF APPLICABLE)
(I.E. VALUE SECURITIES OR SURPLUS
SECURITIES
----------------------------------- ----------- --------------------------------
Value                               440,000

SECURITYHOLDER

NAME: RICHARD HENLEY

SIGNATURE:  /S/ RICHARD HENLEY

ADDRESS FOR NOTICE: 700 - 900 West Hastings Street
                    Vancouver, B.C.  V6C 1E5

SECURITIES:

----------------------------------- ----------- --------------------------------
CLASS AND TYPE                      NUMBER      CERTIFICATE(S) (IF APPLICABLE)
(I.E. VALUE SECURITIES OR SURPLUS
SECURITIES
----------------------------------- ----------- --------------------------------
Value                               250,000

                                       15
<PAGE>

             SCHEDULE B(1) - TIER 1 VALUE SECURITY ESCROW AGREEMENT

                              RELEASE OF SECURITIES

TIMED RELEASE
<TABLE><CAPTION>
---------------------------------  -----------------------------  --------------------------------------
                                   PERCENTAGE OF TOTAL ESCROWED   TOTAL NUMBER OF ESCROWED SECURITIES TO
          RELEASE DATES              SECURITIES TO BE RELEASED                  BE RELEASED
---------------------------------  -----------------------------  --------------------------------------
<S>                                <C>                            <C>
[INSERT DATE OF EXCHANGE BULLETIN  1/4 OF YOUR ESCROW SECURITIES
            FOR A RTO]
---------------------------------  -----------------------------  --------------------------------------
 [INSERT DATE 6 MONTHS FOLLOWING   1/3 OF YOUR REMAINING ESCROW
   EXCHANGE BULLETIN FOR A RTO]             SECURITIES
---------------------------------  -----------------------------  --------------------------------------
 [INSERT DATE 12 MONTHS FOLLOWING  1/2 OF YOUR REMAINING ESCROW
   EXCHANGE BULLETIN FOR A RTO]             SECURITIES
---------------------------------  -----------------------------  --------------------------------------
 [INSERT DATE 18 MONTHS FOLLOWING  ALL OF YOUR REMAINING ESCROW
   EXCHANGE BULLETIN FOR A RTO]             SECURITIES
---------------------------------  -----------------------------  --------------------------------------
              TOTAL                            100%
---------------------------------  -----------------------------  --------------------------------------
</TABLE>

*In the simplest case where there are no changes to the escrow securities
initially deposited and no additional escrow securities, then the release
schedule outlined above results in the escrow securities being released in equal
tranches of 25%.

                                       16
<PAGE>

             SCHEDULE B(2) - TIER 2 VALUE SECURITY ESCROW AGREEMENT

                              RELEASE OF SECURITIES

TIMED RELEASE
<TABLE><CAPTION>
---------------------------------  --------------------------------  -----------------------------------
                                     PERCENTAGE OF TOTAL ESCROWED    TOTAL NUMBER OF ESCROWED SECURITIES
          RELEASE DATES               SECURITIES TO BE RELEASED                 TO BE RELEASED
---------------------------------  --------------------------------  -----------------------------------
<S>                                <C>                               <C>
[INSERT DATE OF EXCHANGE BULLETIN  1/10 OF YOUR ESCROWED SECURITIES
            FOR A RTO]
---------------------------------  --------------------------------  -----------------------------------
 [INSERT DATE 6 MONTHS FOLLOWING     1/6 OF YOUR REMAINING ESCROW
   EXCHANGE BULLETIN FOR A RTO]               SECURITIES
---------------------------------  --------------------------------  -----------------------------------
 [INSERT DATE 12 MONTHS FOLLOWING    1/5 OF YOUR REMAINING ESCROW
   EXCHANGE BULLETIN FOR A RTO]               SECURITIES
---------------------------------  --------------------------------  -----------------------------------
 [INSERT DATE 18 MONTHS FOLLOWING    1/4 OF YOUR REMAINING ESCROW
   EXCHANGE BULLETIN FOR A RTO]               SECURITIES
---------------------------------  --------------------------------  -----------------------------------
 [INSERT DATE 24 MONTHS FOLLOWING    1/3 OF YOUR REMAINING ESCROW
   EXCHANGE BULLETIN FOR A RTO]               SECURITIES
---------------------------------  --------------------------------  -----------------------------------
 [INSERT DATE 30 MONTHS FOLLOWING    1/2 OF YOUR REMAINING ESCROW
   EXCHANGE BULLETIN FOR A RTO]               SECURITIES
---------------------------------  --------------------------------  -----------------------------------
 [INSERT DATE 36 MONTHS FOLLOWING    ALL OF YOUR REMAINING ESCROW
   EXCHANGE BULLETIN FOR A RTO]               SECURITIES
---------------------------------  --------------------------------  -----------------------------------
              TOTAL                              100%
---------------------------------  --------------------------------  -----------------------------------
</TABLE>

*In the simplest case where there are no changes to the escrow securities
initially deposited and no additional escrow securities, the release schedule
outlined above results in the escrow securities being released in equal tranches
of 15% after completion of the release on the date of the Exchange Bulletin.

                                       17
<PAGE>

            SCHEDULE B(3) - TIER 1 SURPLUS SECURITY ESCROW AGREEMENT

                              RELEASE OF SECURITIES

TIMED RELEASE
<TABLE><CAPTION>
---------------------------------  ---------------------------------------  -----------------------------------
                                   PERCENTAGE OF TOTAL ESCROWED SECURITIES  TOTAL NUMBER OF ESCROWED SECURITIES
          RELEASE DATES                         TO BE RELEASED                         TO BE RELEASED
---------------------------------  ---------------------------------------  -----------------------------------
<S>                                <C>                                      <C>
[INSERT DATE OF EXCHANGE BULLETIN       1/10 OF YOUR ESCROW SECURITIES
            FOR A RTO]
---------------------------------  ---------------------------------------  -----------------------------------
 [INSERT DATE 6 MONTHS FOLLOWING   1/6 OF YOUR REMAINING ESCROW SECURITIES
   EXCHANGE BULLETIN FOR A RTO]
---------------------------------  ---------------------------------------  -----------------------------------
 [INSERT DATE 12 MONTHS FOLLOWING  1/5 OF YOUR REMAINING ESCROW SECURITIES
   EXCHANGE BULLETIN FOR A RTO]
---------------------------------  ---------------------------------------  -----------------------------------
 [INSERT DATE 18 MONTHS FOLLOWING  1/4 OF YOUR REMAINING ESCROW SECURITIES
   EXCHANGE BULLETIN FOR A RTO]
---------------------------------  ---------------------------------------  -----------------------------------
 [INSERT DATE 24 MONTHS FOLLOWING  1/3 OF YOUR REMAINING ESCROW SECURITIES
   EXCHANGE BULLETIN FOR A RTO]
---------------------------------  ---------------------------------------  -----------------------------------
 [INSERT DATE 30 MONTHS FOLLOWING  1/2 OF YOUR REMAINING ESCROW SECURITIES
   EXCHANGE BULLETIN FOR A RTO]
---------------------------------  ---------------------------------------  -----------------------------------
 [INSERT DATE 36 MONTHS FOLLOWING  ALL OF YOUR REMAINING ESCROW SECURITIES
   EXCHANGE BULLETIN FOR A RTO]
---------------------------------  ---------------------------------------  -----------------------------------
              TOTAL                                  100%
---------------------------------  ---------------------------------------  -----------------------------------
</TABLE>

*In the simplest case where there are no changes to the escrow securities
initially deposited and no additional escrow securities, the release schedule
outlined above results in the escrow securities being released in equal tranches
of 15% after completion of the release on the date of the Exchange Bulletin.

                                       18
<PAGE>

            SCHEDULE B(4) - TIER 2 SURPLUS SECURITY ESCROW AGREEMENT

                              RELEASE OF SECURITIES

TIMED RELEASE
<TABLE><CAPTION>
-----------------------------------------  ---------------------------------  -------------------------
                                               PERCENTAGE OF TOTAL ESCROWED   TOTAL NUMBER OF ESCROWED
              RELEASE DATES                      SECURITIES TO BE RELEASED    SECURITIES TO BE RELEASED
-----------------------------------------  ---------------------------------  -------------------------
<S>                                        <C>                                <C>
 [INSERT DATE OF EXCHANGE BULLETIN FOR A                NO RELEASE
                   RTO]
-----------------------------------------  ---------------------------------  -------------------------
 [INSERT DATE 6 MONTHS FOLLOWING EXCHANGE     1/20 OF YOUR ESCROW SECURITIES
           BULLETIN FOR A RTO]
-----------------------------------------  ---------------------------------  -------------------------
[INSERT DATE 12 MONTHS FOLLOWING EXCHANGE      1/19 OF YOUR REMAINING ESCROW
           BULLETIN FOR A RTO]                          SECURITIES
-----------------------------------------  ---------------------------------  -------------------------
[INSERT DATE 18 MONTHS FOLLOWING EXCHANGE      1/18 OF YOUR REMAINING ESCROW
           BULLETIN FOR A RTO]                          SECURITIES
-----------------------------------------  ---------------------------------  -------------------------
[INSERT DATE 24 MONTHS FOLLOWING EXCHANGE      1/17 OF YOUR REMAINING ESCROW
           BULLETIN FOR A RTO]                          SECURITIES
-----------------------------------------  ---------------------------------  -------------------------
[INSERT DATE 30 MONTHS FOLLOWING EXCHANGE      1/8 OF YOUR REMAINING ESCROW
           BULLETIN FOR A RTO]                          SECURITIES
-----------------------------------------  ---------------------------------  -------------------------
[INSERT DATE 36 MONTHS FOLLOWING EXCHANGE      1/7 OF YOUR REMAINING ESCROW
           BULLETIN FOR A RTO]                          SECURITIES
-----------------------------------------  ---------------------------------  -------------------------
[INSERT DATE 42 MONTHS FOLLOWING EXCHANGE      1/6 OF YOUR REMAINING ESCROW
           BULLETIN FOR A RTO]                          SECURITIES
-----------------------------------------  ---------------------------------  -------------------------
[INSERT DATE 48 MONTHS FOLLOWING EXCHANGE      1/5 OF YOUR REMAINING ESCROW
           BULLETIN FOR A RTO]                          SECURITIES
-----------------------------------------  ---------------------------------  -------------------------
[INSERT DATE 54 MONTHS FOLLOWING EXCHANGE      1/4 OF YOUR REMAINING ESCROW
           BULLETIN FOR A RTO]                          SECURITIES
-----------------------------------------  ---------------------------------  -------------------------
[INSERT DATE 60 MONTHS FOLLOWING EXCHANGE      1/3 OF YOUR REMAINING ESCROW
           BULLETIN FOR A RTO]                          SECURITIES
-----------------------------------------  ---------------------------------  -------------------------
[INSERT DATE 66 MONTHS FOLLOWING EXCHANGE      1/2 OF YOUR REMAINING ESCROW
           BULLETIN FOR A RTO]                          SECURITIES
-----------------------------------------  ---------------------------------  -------------------------
[INSERT DATE 72 MONTHS FOLLOWING EXCHANGE      ALL OF YOUR REMAINING ESCROW
           BULLETIN FOR A RTO]                          SECURITIES
-----------------------------------------  ---------------------------------  -------------------------
                  TOTAL                                    100%
-----------------------------------------  ---------------------------------  -------------------------
</TABLE>

                                       19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00083-of-00352.parquet"}]]