Document:

EXHIBIT 10.3

 

LOCK-UP AGREEMENT

 

This lock-up agreement (the “Agreement”)  dated as of July 15,
2010 sets out the agreement between Thompson Creek Metals Company Inc. (the “Purchaser”) and the undersigned (the “Consenting
Securityholder”), regarding the proposed acquisition transaction
between Terrane Metals Corp. (the “Company”) and
Purchaser, as more fully described in the arrangement agreement attached hereto
as Schedule “A” (the “Arrangement Agreement”,
with the terms agreed to and set out therein being the “Arrangement
Terms”).

 

A.            WHEREAS the Company and Purchaser intend to enter into the
Arrangement Agreement, which is the basis of the plan of arrangement attached
as an exhibit to the Arrangement Agreement (the “Plan”), and related transactions (the “Transaction”)
involving the acquisition by Purchaser of all of the Company Share Capital (as
defined in the Arrangement Agreement) by way of proceedings (the “Arrangement Proceedings”) under the Business Corporations Act (British
Columbia);

 

B.            AND
WHEREAS the Consenting
Securityholder wishes to support the Transaction subject to the terms and
conditions contained herein and in the Arrangement Agreement;

 

C.            AND
WHEREAS the Parties have agreed to
enter into this Agreement to provide for the support by the Consenting
Securityholder of the Transaction;

 

NOW THEREFORE this Agreement witnesses that, in consideration of the premises and the
covenants and agreement herein contained, the Parties hereto agree as follows:

 

1.                                      Interpretation

 

(a)                                  Capitalized
terms used herein and not otherwise defined shall have the meaning ascribed
thereto in the Arrangement Agreement.

 

(b)                                 The
Consenting Securityholder and Purchaser are collectively referred to as the “Parties”
and each a “Party”.

 

(c)                                  The
headings in this Agreement are for reference only and shall not affect the
meaning or interpretation of this Agreement.

 

(d)                                 Unless
the context otherwise requires, words importing the singular shall include the
plural and vice versa and words importing any gender shall include all genders.

 

(e)                                  Unless
otherwise specifically indicated, all sums of money referred to in this
Agreement are expressed in lawful money of Canada.

 

2.                                      Representations and Warranties of
Consenting Securityholder

 

The Consenting Securityholder hereby represents
and warrants to the Purchaser (and acknowledges that the Purchaser is relying
upon such representations and warranties) that:

 

 

(a)                                  Consenting Securityholder is the legal and beneficial owner, directly
or indirectly, of or exercises control or direction over securities in the
capital of the Company, including: (i) Company Common Shares; (ii) Company
Preferred Shares; (iii) Company Warrants; and (iv) Company
Options, in
each case, in the principal amount(s) set forth in Schedule B (the “Relevant Securities”);

 

(b)                                 The
Relevant Securities set forth in Schedule B are the only securities in the
capital of the Company which such Consenting Securityholder has legal or
beneficial ownership, directly or indirectly, or exercises control or direction
over, including without limitation any securities convertible or exchangeable
into securities in the capital of the Company and the Relevant Securities are
free and clear from all Encumbrances;

 

(c)                                  No
person has any agreement or option, or any right or privilege (whether by law,
pre-emptive or contractual) capable of becoming an agreement or option, for the
purchase, acquisition or transfer of any of the Relevant Securities, or any
interest therein or right thereto, except pursuant to this Agreement, and none
of the Relevant Securities are subject to any proxy, voting trust, vote pooling
or other agreement with respect to the right to vote the Relevant Securities,
call meetings of holders of the Company Common Shares or give consents or
approvals of any kind;

 

(d)                                 (i) Consenting Securityholder has the authority
and capacity to vote or direct the voting of the Relevant Securities, to give a
proxy for the Relevant Securities in connection with the Company Meeting and
any class meeting of holders of Relevant Securities, and has the power to
dispose of the entire legal and beneficial interest in the Relevant Securities;
(ii) Consenting Securityholder is a sophisticated party with sufficient knowledge
and experience to evaluate properly the terms and conditions of this Agreement;
(iii) Consenting Securityholder has conducted its own analysis and made its
own decision to enter in this Agreement and has obtained such independent
advice in this regard as it deemed appropriate; and (iv) Consenting
Securityholder has not relied on such analysis or decision on any Person other
than its own independent advisors;

 

(e)                                  This
Agreement has been duly executed and delivered by Consenting Securityholder, and, assuming the due authorization, execution
and delivery by the Purchaser, this Agreement constitutes the legal, valid and
binding obligation of the Consenting Securityholder, enforceable in accordance
with its terms, subject to laws of general application and bankruptcy,
insolvency and other similar laws affecting creditors’ rights generally and
general principles of equity;

 

(f)                                    The execution and delivery
of this Agreement by Consenting
Securityholder and the performance by Consenting
Securityholder of its obligations
contemplated herein do not and will not: (i) violate or conflict with any judgment, order,
notice, decree, statute, law, ordinance, rule or regulation applicable to
the Consenting Securityholder or any of its properties or assets, or (ii) constitute
a default, violation or breach under any contract, commitment, agreement,
arrangement, understanding or restriction, except such violations, conflicts,
defaults or breaches

 

2

 

which
could not, individually or in the aggregate, impair the ability of the
Consenting Securityholder to perform its obligations under this Agreement;

 

(g)                                 Neither the Consenting
Securityholder nor any Person with which the Consenting Securityholder, to the
best of its knowledge after due enquiry, does not deal at arm’s length (as
defined for the purposes of the Income Tax Act (Canada) (the “Tax Act”), has not, since it became aware
of the intention to complete the Transaction, acquired: (i) any warrants
or options to acquire shares issued by the Company; (ii) any securities
that are convertible or exchangeable into shares of the Company (iii) any
debt or shares of the Purchasers (other than shares issued pursuant to the
Plan); or (iv) any warrants or options to acquire, or any securities that
are convertible or exchangeable into, shares of the Purchaser; and

 

(h)                                 To
the best of its knowledge, there is no proceeding, claim or investigation
pending before any Governmental Authority, or threatened against the Consenting
Securityholder or any of its properties that, individually or in the aggregate,
could reasonably be expected to have an adverse effect on the Consenting
Securityholder’s ability to execute and deliver this Agreement and to perform
its obligations contemplated by this Agreement.

 

3.                                      Purchaser’s Representations and
Warranties

 

Purchaser hereby represents and warrants to the
Consenting Securityholder (and acknowledges that the Consenting Securityholder
is relying upon such representations and warranties) that:

 

(a)                                  Purchaser
is a company duly incorporated and validly existing under the laws of its
jurisdiction of incorporation;

 

(b)                                 Purchaser
has all necessary power and authority to execute and deliver this Agreement;

 

(c)                                  The
Agreement has been duly executed and delivered by Purchaser, and, assuming the
due authorization, execution and delivery by the Consenting Securityholder,
this Agreement constitutes the legal, valid and binding obligation of
Purchaser, enforceable in accordance with its terms, subject to laws of general
application and bankruptcy, insolvency and other similar laws affecting
creditors’ rights generally and general principles of equity;

 

(d)                                 The execution and delivery
of this Agreement by Purchaser
and the performance by Purchaser
of its obligations contemplated herein
do not and will not: (i) violate or conflict with any judgment, order, notice, decree, statute, law,
ordinance, rule or regulation applicable to Purchaser or any of its
properties or assets; or (ii) constitute a default, violation or breach
under any contract, commitment, agreement, arrangement, understanding or
restriction, except such violations, conflicts, defaults or breaches, which
could not, individually or in the aggregate, impair the ability of Purchaser to
perform its obligations under this Agreement; and

 

3

 

(e)                                  To the best of its knowledge, there is no proceeding,
claim or investigation pending before any Governmental Authority, or threatened
against Purchaser or any of its properties that, individually or in the
aggregate, could reasonably be expected to have an adverse effect on Purchaser’s
ability to execute and deliver this Agreement and to perform its obligations
contemplated by this Agreement.

 

4.                                      Consenting Securityholder Covenants

 

(a)                                  Except
as contemplated in this Agreement, the Consenting Securityholder agrees with
the Purchaser that it shall not, directly or indirectly, in any manner:

 

(i)                                     sell, transfer, gift,
assign, pledge, hypothecate, encumber, convert or otherwise dispose of any of
the Relevant Securities or any interest therein or enter into any agreement,
arrangement or understanding in connection therewith (it being understood that
the conversion of any Company Preferred Shares into Company Common Shares is
not a violation of this Section 4(a)(i)); or

 

(ii)                                  deposit any of the Relevant
Securities into a voting trust, or grant (or permit to be granted) any proxies
or powers of attorney or attorney in fact, or enter into a voting agreement,
understanding or arrangement, with respect to the voting of its Relevant
Securities,

 

in each case, without
having first obtained the prior written consent of Purchaser, which consent is
within the sole discretion of Purchaser and may be unreasonably withheld.

 

(b)                                 The
Consenting Securityholder agrees that it shall not, and it shall cause its affiliates and its or their directors, officers,
employees, agents, advisors or other representatives (including, without
limitation, financial advisors, financing sources, counsel and accountants) not
to, directly
or indirectly:

 

(i)                                     solicit, initiate, encourage
or facilitate (including by way of furnishing non-public information of the
Company or the Consenting Securityholder) any Acquisition Proposal;

 

(ii)                                  (A) participate in any
discussions, conversations, negotiations or other communications with any
Person with respect to an Acquisition Proposal; (B) furnish any
information to any Person in connection with an Acquisition Proposal; or (C) otherwise
assist, facilitate or encourage the making of, or cooperate in any way
regarding, any Acquisition Proposal;

 

(iii)                               continue any existing
negotiations, discussions, conversations or other communications with respect
to any Acquisition Proposal;

 

(iv)                              otherwise cooperate in or
knowingly facilitate any effort or attempt to make, implement or accept any
proposal or offer that constitutes, or may reasonably be expected to lead to,
any Acquisition Proposal; or

 

4

 

(v)                                 accept or enter into or
propose publicly to accept or enter into a Contract with any Person relating to
an Acquisition Proposal.

 

(c)                                  The
Consenting Securityholder hereby irrevocably covenants, undertakes and agrees
that it shall:

 

(i)                                     vote (or cause to be voted)
all of the Relevant Securities:

 

(A)                              in favour of the approval,
consent, ratification and adoption of the Arrangement Agreement and the Plan
(and any actions required in furtherance thereof), and not withdraw any proxies
or change its vote in respect thereof;

 

(B)                                against any resolution or
action by the Company or any other person that may in any way adversely affect or reduce the likelihood of the
successful completion of the Arrangement or the Transaction, or delay or
interfere with, the completion of the Arrangement or the Transaction;

 

(C)                                any action that would result
in any breach of any representation, warranty, covenant or agreement or any
other obligation of the Company in the Arrangement Agreement or the Plan; and

 

(D)                               will not vote or grant to
any person other than the Purchaser a proxy to vote or enter into any voting
trust, vote pooling or other agreement with respect to the right to vote the
Relevant Securities (and will cause such Shares Relevant Securities not to be
voted) in favour of any Acquisition Proposal.

 

(ii)                                  deliver, or cause to be
delivered, to the Company’s transfer agent, or as otherwise directed by the
Company, after receipt of proxy materials for, and no later than ten (10) days
before the date of, the Company Meeting or any other meeting of holders of
Company Share Capital called for the purpose of approving the Transaction, a
duly executed proxy directing that the Relevant Securities be voted at such
meeting in favour of the Transaction and all related matters in the form
attached as Schedule “C”.  The Consenting
Securityholder hereby revokes any and all previous proxies granted that may
conflict or be inconsistent with the matters set forth in this letter agreement
and the Consenting Securityholder agrees not to, directly or indirectly, grant
any proxy or power of attorney with respect to the matters set forth in this
Agreement.  The Consenting Securityholder
hereby appoints the Purchaser as attorney in fact for the term of this
Agreement (which appointment is unconditional, irrevocable and is coupled with
an interest) for and on its behalf to execute a proxy appointing such person
designated by the Purchaser to attend and act on behalf of the Consenting
Securityholder at any meeting of shareholders in

 

5

 

respect
of any of the matters referred to in this Agreement, including without
limitation the Company Meeting, and to act on behalf of the Consenting
Securityholder on every action or approval by written consent of Company
Securityholders in respect of such matters;

 

(iii)                               support the approval of the
Plan as promptly as practicable by the Court;

 

(iv)                              not support any action that
is intended or would reasonably be expected to impede, interfere with, delay,
postpone or discourage the Transaction or the Plan;

 

(v)                                 not do anything to frustrate
or hinder the consummation of the Transaction or the Plan;

 

(vi)                              consent (on its own behalf)
to any reasonable requests by a Party for a waiver of any default of Purchaser
under the Arrangement Agreement pending implementation of the Plan;

 

(vii)                           cease and cause to be
terminated any existing discussions or negotiations, directly or indirectly, by
or on behalf of the Consenting Securityholder with any person with respect to
any Acquisition Proposal;

 

(viii)                        immediately (and in any
event within twenty-four (24) hours of receipt by the Consenting
Securityholder) notify the Purchaser, at first orally and then in writing, of
any Acquisition Proposal, of which it becomes aware, and shall provide the
Purchaser with a description of the material terms of any such Acquisition
Proposal, and shall provide the identity of the person making any such
Acquisition Proposal and such other details as the Purchaser may reasonably
request; and

 

(ix)                                execute any and all
documents and perform any and all commercially reasonable acts required by this
Agreement to satisfy all of its obligations hereunder.

 

(d)                                 The
Consenting Shareholder shall not, and hereby agrees not to:

 

(i)                                     assert or exercise any
dissent rights and waives any rights of appraisal, or rights to dissent from
the Arrangement or the Transaction that the Consenting Securityholder may have;
or

 

(ii)                                  commence or participate in,
and shall, and hereby agrees to, take all actions necessary to opt out of any
class in any class action with respect to, any claim, derivative or otherwise,
against the Company or the Purchaser or any of their subsidiaries (or any of
their respective successors) relating to the negotiation, execution and
delivery of the Arrangement Agreement or the consummation of the Transactions.

 

(e)                                  The
Consenting Securityholder further agrees:

 

6

 

(i)                                     to the existence and factual
details of this Agreement being set out in any public disclosure, including,
without limitation, press releases and court materials, produced by the Company
or Purchaser, at the discretion of the Company or Purchaser, in connection with
the Transaction and the Plan; and

 

(ii)                                  to this Agreement being
filed and/or available for inspection by the public to the extent required by
law or stock exchange rules.

 

5.                                      Change in Nature of Transaction

 

(a)                                  In
the event that: (i) the Company,
with the agreement of Purchaser, determines in its good faith judgment that it
is necessary or desirable to proceed with an alternative transaction structure,
including, without limitation, a takeover bid or asset purchase, in conjunction
with or instead of the Plan; (ii) such
alternative transaction provides the same, or better, financial treatment to
all affected parties and the financial implications (including tax) for the
Consenting Securityholder are the same or better and the alternative
transaction is on terms that are not more adverse than those contained in the
Arrangement Agreement; and (iii) such
alternative transaction is initiated on or before November 30, 2010 (as
described in each of the foregoing clauses (i), (ii) and (iii), a “Revised Transaction”), the Consenting
Securityholder shall support the completion of the Revised Transaction in the
same manner and to the same extent that it has agreed to support the
Transaction and the Plan under this Agreement.

 

(b)                                 In
the event of any proposed Revised Transaction, the references in this Agreement
to the Transaction shall be deemed to be changed to “Revised Transaction” and
all terms, covenants, representations and warranties of this Agreement shall be
and shall be deemed to have been made in the context of the Revised
Transaction.

 

6.                                      Termination

 

This Agreement and the obligations of the
Parties to this Agreement shall terminate upon the earliest to occur of:

 

(a)                                  the
termination of the Arrangement Agreement in accordance with its terms;

 

(b)                                 at
any time, by mutual agreement in writing executed by the Parties; or

 

(c)                                  the
Effective Time of the Transaction.

 

Each Party shall be responsible and shall
remain liable for any breach of this Agreement by such Party occurring prior to
the termination of this Agreement.

 

7

 

7.                                      Miscellaneous

 

(a)                                  Nothing
in this Agreement is intended to preclude the Consenting Securityholder from
engaging in any securities transactions, subject to the agreements set forth in
Section 4 with respect to the Relevant Securities.

 

(b)                                 If
the Consenting Securityholder acquires additional Company Share Capital or
other securities of the Company (“Additional
Shares”) after the date hereof, any and all rights and claims
obtained by the Consenting Securityholder with respect to, on account of or
pursuant to any Additional Shares shall automatically be subject to this
Agreement.

 

(c)                                  This
Agreement (including the schedules attached to this Agreement) constitutes the entire
agreement and supersede all prior agreements and understandings, both oral and
written, among the Parties with respect to the subject matter hereof.

 

(d)                                 Any
provision in this Agreement may be amended or waived if, and only if, such
amendment or waiver is in writing and signed, in the case of an amendment, by
the Consenting Securityholder, and the Purchaser, or in the case of a waiver,
by the Party against whom the waiver is to be effective.  No failure or delay by any Party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise.

 

(e)                                  Any
date, time or period referred to in this Agreement shall be of the essence
except to the extent to which the Parties agree in writing to vary any date,
time or period, in which event the varied date, time or period shall be of the
essence.

 

(f)                                    Except
as otherwise provided in this Agreement each of the Parties shall bear its own
expenses incurred in connection with this Agreement and the transactions
contemplated hereby.

 

(g)                                 All
notices and other communications which may be or are required to be given
pursuant to any provision of this Agreement shall be given or made in writing
and shall be deemed to be validly given if served personally or by facsimile
transmission, in each case addressed to the particular Party:

 

(i)                                     If to the Purchaser, at:

 

Thompson Creek Metals Company Inc.

Suite 810 - 26 West Dry Creek Circle

Littleton, CO, 80120

Attn: Dale Huffman

 

Main: (303) 761-8801

Fax: (303) 761-7420

 

(ii)                                  If to the Consenting
Securityholder, at:

 

	
   ”Paul Hosford”

  	
  (name)

  

c/o Terrane Metals Corp.

 

8

 

Suite 1500 - 999 West Hastings

Vancouver BC V6C 2W2

 

Main: (604) 681-9903

Fax: (604) 630-2090

 

or at such other address of which any Party
may, from time to time, advise the other Parties by notice in writing given in
accordance with the foregoing.  The date
of receipt of any such notice shall be deemed to be the date of delivery or
transmission thereof.

 

(h)                                 If
any term or other provision of this Agreement is invalid, illegal or incapable
of being enforced by any rule of law or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full
force and effect.  Upon such
determination that any term or other provision is invalid, illegal or incapable
of being enforced, the Parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the Parties as closely as
possible in a mutually acceptable manner in order that the terms of this
Agreement remain as originally contemplated to the fullest extent possible.

 

(i)                                     The
provisions of this Agreement shall be binding upon and enure to the benefit of the
Parties hereto and their respective successors and permitted assigns, provided
that no Party may assign, delegate or otherwise transfer any of its rights,
interests or obligations under this Agreement without the prior written consent
of the other Party hereto, except that the Purchaser may assign this Agreement
to an affiliate, without reducing its own obligations hereunder, without the
consent of the Consenting Securityholder.

 

(j)                                     This
Agreement is governed by the laws of the Province of British Columbia and the
federal laws of Canada applicable therein. 
Each Party submits to the jurisdiction of the courts of competent
jurisdiction in the Province of British Columbia in respect of any action or
proceeding relating to this Agreement. 
The Parties shall not raise any objection to the venue of any
proceedings in any such court, including the objection that the proceedings
have been brought in an inconvenient forum.

 

(k)                                  The
Parties waive any right to trial by jury in any proceeding arising out of or
relating to this Agreement or any of the transactions contemplated by this
Agreement, present or future, and whether sounding in contract, tort or
otherwise.  Any Party may file a copy of
this provision with any court as written evidence of the knowing, voluntary and
bargained for agreement between the Parties irrevocably to waive trial by jury,
and that any proceeding whatsoever between them relating to this Agreement or
any of the transactions contemplated by this Agreement shall instead be tried
by a judge or judges sitting without a jury.

 

(l)                                     Subject
to Applicable Law, the Consenting Securityholder agrees that it shall not make
any public announcement or statement with respect to this Agreement, the
Arrangement Agreement, the Plan or the Transaction without the prior written

 

9

 

approval of the Company and Purchaser, unless such
announcement or statement shall be required to meet timely disclosure or early
warning obligations of the Consenting Securityholder under securities laws
and/or stock exchange rules.

 

(m)                             The
Consenting Securityholder recognizes and acknowledges that this Agreement is an
integral part of the Transaction, that the Purchaser would not enter into the
Arrangement Agreement and the Plan unless this Agreement was executed, and
accordingly acknowledges and agrees that a breach by the Consenting
Securityholder of any covenants or other commitments contained in this
Agreement will cause the Purchaser to sustain injury for which they may not
have an adequate remedy at law for monetary damages.  Therefore, the Parties agree that in the
event of any such breach the Purchaser shall be entitled to the remedy of
specific performance of such covenants or commitments and preliminary and
permanent injunctive and other equitable relief in addition to any other remedy
to which it may be entitled, at law or in equity, and the Parties further agree
to waive any requirement for the securing or posting of any bond in connection
with the obtaining of any such injunctive or other equitable relief.

 

(n)                                 The
Parties confirm that it is their wish that this Agreement, as well as any other
documents relating to this Agreement, including notices, schedules and
authorizations, have been and shall be drawn up in the English language only.

 

(o)                                 This
Agreement may be executed by facsimile or other electronic means and in one or
more counterparts, all of which shall be considered one and the same agreement.

 

This Agreement has been agreed and accepted on
the date first written above.

 

	
   

  	
  THOMPSON CREEK METALS COMPANY
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  “Kevin Loughrey”

  
	
   

  	
   

  	
  Name:

  	
  Kevin Loughrey

  
	
   

  	
   

  	
  Title:

  	
  Chairman, Chief Executive Officer and
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Signed: “Paul Hosford”

  
	
   

  	
  Please Print Name:

  
	
   

  	
  Paul Hosford

  

 

10

 

SCHEDULE A

 

ARRANGEMENT AGREEMENT

 

See Exhibit 2.1 to Purchaser’s Current
Report on Form 8-K filed with the Securities and Exchange Commission on July 21,
2010

 

 

SCHEDULE B

 

RELEVANT SECURITIES

 

	
  Class of Securities

  	
   

  	
  Number of Securities Held

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Company Common
  Shares

  	
   

  	
  45,700

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Company Preferred
  Shares

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2007 Warrants

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010 Warrants

  	
   

  	
  20,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Company Options

  	
   

  	
  625,000

  	
   

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCHEDULE C

 

PROXY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Terrane
Metals Corp.

 

Suite 1500
- 999 West Hastings Vancouver BC V6C 2W2

 

Tel: (604)
681-9903       Fax: (604) 630-2090

 

P R O X Y

 

This proxy is solicited by the management of TERRANE METALS
CORP. (the “Corporation”) for the Special Meeting of its shareholders and
optionholders (the “Meeting”) to be held on September ·, 2010.

 

The undersigned hereby appoints, ·, Chief Executive Officer
of the Corporation, or failing him, ·, Chief Financial Officer
of the Corporation, or instead of either of the foregoing, (insert name)                                                       ,
as nominee of the undersigned, with full power of substitution, to attend and
vote on behalf of the undersigned at the Meeting to be held in ·, Vancouver, British
Columbia, on September ·, 2010 at 10:00 am
(Vancouver time), and at any adjournments thereof, and directs the nominee to
vote or abstain from voting the shares and options of the undersigned in the
manner indicated below:

 

1.                                       TERRANE ARRANGEMENT RESOLUTION

 

To consider and, if thought appropriate, pass a
special resolution authorizing and approving, the arrangement with Thompson
Creek Metals Company Inc. under Section 288 of the Business Corporations
Act (British Columbia) as more particularly described in the
accompanying Management Information Circular.

 

FOR o    AGAINST o

 

2.                                       To transact any other business as may properly come before the Meeting or
at any adjournment thereof.

 

3.                                       Upon any permitted amendment to or variation of any matter identified in
the Notice of Meeting.

 

THE UNDERSIGNED HEREBY REVOKES ANY PRIOR PROXY OR
PROXIES.

 

DATED:                                                        ,
2010.

 

	
   

  	
   

  
	
   

  	
   

  
	
  Signature of Securityholder

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Please print name here)

  	
   

  

 

 

Note: If not dated, this
proxy is deemed to be dated on the day sent by the Corporation.

 

 

Affix label here

Name of Shareholder

Address of Shareholder

 

 

(Please advise the
Corporation of any change of address)

 

 

NOTES:

 

A proxy will not be valid unless the completed, signed and
dated form of proxy is faxed to Attention: Proxy Department 1  604 661 9549 or delivered
by mail or by hand to 510 Burrard Street, 2nd Floor, Vancouver, British
Columbia, V6C 3B9, or 100 University Avenue, 9th
Floor, Toronto, Ontario, M5J 2Y1, not less than 48 hours (excluding Saturdays and holidays) before the time
at which the Meeting is to be held, or any adjournment thereof.

 

Any one of the joint holders of a share may sign a
form of proxy in respect of the security but, if more than one of them is
present at the Meeting or represented by proxyholder, that one of them whose
name appears first in the register of members in respect of the security, or
that one’s proxyholder, will alone be entitled to vote in respect thereof.  Where the form of proxy is signed by a
corporation, either its corporate seal must be affixed or the form should be
signed by the corporation under the hand of an officer or attorney duly
authorized in writing.

 

A securityholder has the right to appoint a person, who need
not be a securityholder, other than either of the nominees designated in this
form of proxy to attend and act for the securityholder and on the
securityholder’s behalf at the Meeting, and may do so by inserting the name of
that other person in the blank  space
provided for that purpose in this form of proxy or by completing another
suitable form of proxy.

 

The securities represented by the proxy will be
voted or withheld from voting in accordance with the instructions of the
securityholder on any ballot, and where a choice with respect to a matter to be
acted on is specified the shares will be voted on a ballot in accordance with
that specification.  This proxy confers
discretionary authority with respect to matters identified or referred to in
the accompanying Notice of Meeting for which no instruction is given, and with
respect to other matters that may properly come before the Meeting.

 

IN RESPECT OF A MATTER SO IDENTIFIED OR REFERRED TO FOR WHICH
NO INSTRUCTION IS GIVEN, THE NOMINEES NAMED IN THIS PROXY WILL VOTE SECURITIES
REPRESENTED THEREBY FOR THE APPROVAL OF SUCH MATTER.EXHIBIT 10.4

 

LOCK-UP AGREEMENT

 

This lock-up agreement (the “Agreement”)  dated as of July 15,
2010 sets out the agreement between Thompson Creek Metals Company Inc. (the “Purchaser”) and the undersigned (the “Consenting
Securityholder”), regarding the proposed acquisition transaction
between Terrane Metals Corp. (the “Company”) and
Purchaser, as more fully described in the arrangement agreement attached hereto
as Schedule “A” (the “Arrangement Agreement”,
with the terms agreed to and set out therein being the “Arrangement
Terms”).

 

A.                                   WHEREAS the Company and Purchaser intend to enter into the
Arrangement Agreement, which is the basis of the plan of arrangement attached
as an exhibit to the Arrangement Agreement (the “Plan”), and related transactions (the “Transaction”)
involving the acquisition by Purchaser of all of the Company Share Capital (as
defined in the Arrangement Agreement) by way of proceedings (the “Arrangement Proceedings”) under the Business Corporations Act (British
Columbia);

 

B.                                     AND WHEREAS the Consenting Securityholder wishes to support the
Transaction subject to the terms and conditions contained herein and in the
Arrangement Agreement;

 

C.                                     AND WHEREAS the Parties have agreed to enter into this Agreement
to provide for the support by the Consenting Securityholder of the Transaction;

 

NOW THEREFORE this Agreement witnesses that, in consideration of the premises and the
covenants and agreement herein contained, the Parties hereto agree as follows:

 

1.                                      Interpretation

 

(a)                                  Capitalized
terms used herein and not otherwise defined shall have the meaning ascribed
thereto in the Arrangement Agreement.

 

(b)                                 The
Consenting Securityholder and Purchaser are collectively referred to as the “Parties”
and each a “Party”.

 

(c)                                  The
headings in this Agreement are for reference only and shall not affect the
meaning or interpretation of this Agreement.

 

(d)                                 Unless
the context otherwise requires, words importing the singular shall include the
plural and vice versa and words importing any gender shall include all genders.

 

(e)                                  Unless
otherwise specifically indicated, all sums of money referred to in this
Agreement are expressed in lawful money of Canada.

 

2.                                      Representations and Warranties of
Consenting Securityholder

 

The Consenting Securityholder hereby represents
and warrants to the Purchaser (and acknowledges that the Purchaser is relying
upon such representations and warranties) that:

 

 

(a)                                  Consenting Securityholder is the legal and beneficial owner, directly
or indirectly, of or exercises control or direction over securities in the
capital of the Company, including: (i) Company Common Shares; (ii) Company
Preferred Shares; (iii) Company Warrants; and (iv) Company
Options, in
each case, in the principal amount(s) set forth in Schedule B (the “Relevant Securities”);

 

(b)                                 The
Relevant Securities set forth in Schedule B are the only securities in the
capital of the Company which such Consenting Securityholder has legal or
beneficial ownership, directly or indirectly, or exercises control or direction
over, including without limitation any securities convertible or exchangeable
into securities in the capital of the Company and the Relevant Securities are
free and clear from all Encumbrances;

 

(c)                                  No
person has any agreement or option, or any right or privilege (whether by law,
pre-emptive or contractual) capable of becoming an agreement or option, for the
purchase, acquisition or transfer of any of the Relevant Securities, or any
interest therein or right thereto, except pursuant to this Agreement, and none
of the Relevant Securities are subject to any proxy, voting trust, vote pooling
or other agreement with respect to the right to vote the Relevant Securities,
call meetings of holders of the Company Common Shares or give consents or
approvals of any kind;

 

(d)                                 (i) Consenting Securityholder has the authority
and capacity to vote or direct the voting of the Relevant Securities, to give a
proxy for the Relevant Securities in connection with the Company Meeting and
any class meeting of holders of Relevant Securities, and has the power to
dispose of the entire legal and beneficial interest in the Relevant Securities;
(ii) Consenting Securityholder is a sophisticated party with sufficient knowledge
and experience to evaluate properly the terms and conditions of this Agreement;
(iii) Consenting Securityholder has conducted its own analysis and made its
own decision to enter in this Agreement and has obtained such independent
advice in this regard as it deemed appropriate; and (iv) Consenting
Securityholder has not relied on such analysis or decision on any Person other
than its own independent advisors;

 

(e)                                  This
Agreement has been duly executed and delivered by Consenting Securityholder, and, assuming the due authorization, execution
and delivery by the Purchaser, this Agreement constitutes the legal, valid and
binding obligation of the Consenting Securityholder, enforceable in accordance
with its terms, subject to laws of general application and bankruptcy,
insolvency and other similar laws affecting creditors’ rights generally and
general principles of equity;

 

(f)                                    The execution and delivery
of this Agreement by Consenting
Securityholder and the performance by Consenting
Securityholder of its obligations
contemplated herein do not and will not: (i) violate or conflict with any judgment, order,
notice, decree, statute, law, ordinance, rule or regulation applicable to
the Consenting Securityholder or any of its properties or assets, or (ii) constitute
a default, violation or breach under any contract, commitment, agreement,
arrangement, understanding or restriction, except such violations, conflicts,
defaults or breaches 

 

2

 

which
could not, individually or in the aggregate, impair the ability of the
Consenting Securityholder to perform its obligations under this Agreement;

 

(g)                                 Neither the Consenting
Securityholder nor any Person with which the Consenting Securityholder, to the
best of its knowledge after due enquiry, does not deal at arm’s length (as
defined for the purposes of the Income Tax Act (Canada) (the “Tax Act”), has not, since it became aware
of the intention to complete the Transaction, acquired: (i) any warrants
or options to acquire shares issued by the Company; (ii) any securities
that are convertible or exchangeable into shares of the Company (iii) any
debt or shares of the Purchasers (other than shares issued pursuant to the
Plan); or (iv) any warrants or options to acquire, or any securities that
are convertible or exchangeable into, shares of the Purchaser; and

 

(h)                                 To
the best of its knowledge, there is no proceeding, claim or investigation
pending before any Governmental Authority, or threatened against the Consenting
Securityholder or any of its properties that, individually or in the aggregate,
could reasonably be expected to have an adverse effect on the Consenting
Securityholder’s ability to execute and deliver this Agreement and to perform
its obligations contemplated by this Agreement.

 

3.                                      Purchaser’s Representations and
Warranties

 

Purchaser hereby represents and warrants to the
Consenting Securityholder (and acknowledges that the Consenting Securityholder
is relying upon such representations and warranties) that:

 

(a)                                  Purchaser
is a company duly incorporated and validly existing under the laws of its
jurisdiction of incorporation;

 

(b)                                 Purchaser
has all necessary power and authority to execute and deliver this Agreement;

 

(c)                                  The
Agreement has been duly executed and delivered by Purchaser, and, assuming the
due authorization, execution and delivery by the Consenting Securityholder,
this Agreement constitutes the legal, valid and binding obligation of
Purchaser, enforceable in accordance with its terms, subject to laws of general
application and bankruptcy, insolvency and other similar laws affecting
creditors’ rights generally and general principles of equity;

 

(d)                                 The execution and delivery
of this Agreement by Purchaser
and the performance by Purchaser
of its obligations contemplated herein
do not and will not: (i) violate or conflict with any judgment, order, notice, decree, statute, law,
ordinance, rule or regulation applicable to Purchaser or any of its
properties or assets; or (ii) constitute a default, violation or breach
under any contract, commitment, agreement, arrangement, understanding or
restriction, except such violations, conflicts, defaults or breaches, which
could not, individually or in the aggregate, impair the ability of Purchaser to
perform its obligations under this Agreement; and

 

3

 

(e)                                  To the best of its knowledge, there is no proceeding,
claim or investigation pending before any Governmental Authority, or threatened
against Purchaser or any of its properties that, individually or in the
aggregate, could reasonably be expected to have an adverse effect on Purchaser’s
ability to execute and deliver this Agreement and to perform its obligations
contemplated by this Agreement.

 

4.                                      Consenting Securityholder Covenants

 

(a)                                  Except
as contemplated in this Agreement, the Consenting Securityholder agrees with
the Purchaser that it shall not, directly or indirectly, in any manner:

 

(i)                                     sell, transfer, gift,
assign, pledge, hypothecate, encumber, convert or otherwise dispose of any of
the Relevant Securities or any interest therein or enter into any agreement,
arrangement or understanding in connection therewith (it being understood that
the conversion of any Company Preferred Shares into Company Common Shares is
not a violation of this Section 4(a)(i)); or

 

(ii)                                  deposit any of the Relevant
Securities into a voting trust, or grant (or permit to be granted) any proxies
or powers of attorney or attorney in fact, or enter into a voting agreement,
understanding or arrangement, with respect to the voting of its Relevant
Securities,

 

in each case, without
having first obtained the prior written consent of Purchaser, which consent is
within the sole discretion of Purchaser and may be unreasonably withheld.

 

(b)                                 The
Consenting Securityholder agrees that it shall not, and it shall cause its affiliates and its or their directors, officers,
employees, agents, advisors or other representatives (including, without
limitation, financial advisors, financing sources, counsel and accountants) not
to, directly
or indirectly:

 

(i)                                     solicit, initiate, encourage
or facilitate (including by way of furnishing non-public information of the
Company or the Consenting Securityholder) any Acquisition Proposal;

 

(ii)                                  (A) participate in any
discussions, conversations, negotiations or other communications with any
Person with respect to an Acquisition Proposal; (B) furnish any
information to any Person in connection with an Acquisition Proposal; or (C) otherwise
assist, facilitate or encourage the making of, or cooperate in any way
regarding, any Acquisition Proposal;

 

(iii)                               continue any existing
negotiations, discussions, conversations or other communications with respect
to any Acquisition Proposal;

 

(iv)                              otherwise cooperate in or
knowingly facilitate any effort or attempt to make, implement or accept any
proposal or offer that constitutes, or may reasonably be expected to lead to,
any Acquisition Proposal; or

 

4

 

(v)                                 accept or enter into or
propose publicly to accept or enter into a Contract with any Person relating to
an Acquisition Proposal.

 

(c)                                  The
Consenting Securityholder hereby irrevocably covenants, undertakes and agrees
that it shall:

 

(i)                                     vote (or cause to be voted)
all of the Relevant Securities:

 

(A)                              in favour of the approval,
consent, ratification and adoption of the Arrangement Agreement and the Plan
(and any actions required in furtherance thereof), and not withdraw any proxies
or change its vote in respect thereof;

 

(B)                                against any resolution or
action by the Company or any other person that may in any way adversely affect or reduce the likelihood of the
successful completion of the Arrangement or the Transaction, or delay or
interfere with, the completion of the Arrangement or the Transaction;

 

(C)                                any action that would result
in any breach of any representation, warranty, covenant or agreement or any
other obligation of the Company in the Arrangement Agreement or the Plan; and

 

(D)                               will not vote or grant to
any person other than the Purchaser a proxy to vote or enter into any voting
trust, vote pooling or other agreement with respect to the right to vote the
Relevant Securities (and will cause such Shares Relevant Securities not to be
voted) in favour of any Acquisition Proposal.

 

(ii)                                  deliver, or cause to be
delivered, to the Company’s transfer agent, or as otherwise directed by the
Company, after receipt of proxy materials for, and no later than ten (10) days
before the date of, the Company Meeting or any other meeting of holders of
Company Share Capital called for the purpose of approving the Transaction, a
duly executed proxy directing that the Relevant Securities be voted at such
meeting in favour of the Transaction and all related matters in the form
attached as Schedule “C”.  The Consenting
Securityholder hereby revokes any and all previous proxies granted that may
conflict or be inconsistent with the matters set forth in this letter agreement
and the Consenting Securityholder agrees not to, directly or indirectly, grant
any proxy or power of attorney with respect to the matters set forth in this
Agreement.  The Consenting Securityholder
hereby appoints the Purchaser as attorney in fact for the term of this
Agreement (which appointment is unconditional, irrevocable and is coupled with
an interest) for and on its behalf to execute a proxy appointing such person
designated by the Purchaser to attend and act on behalf of the Consenting
Securityholder at any meeting of shareholders in 

 

5

 

respect
of any of the matters referred to in this Agreement, including without
limitation the Company Meeting, and to act on behalf of the Consenting
Securityholder on every action or approval by written consent of Company
Securityholders in respect of such matters;

 

(iii)                               support the approval of the
Plan as promptly as practicable by the Court;

 

(iv)                              not support any action that is intended or would
reasonably be expected to impede, interfere with, delay, postpone or discourage
the Transaction or the Plan;

 

(v)                                 not do anything to frustrate
or hinder the consummation of the Transaction or the Plan;

 

(vi)                              consent (on its own behalf)
to any reasonable requests by a Party for a waiver of any default of Purchaser
under the Arrangement Agreement pending implementation of the Plan;

 

(vii)                           cease and cause to be
terminated any existing discussions or negotiations, directly or indirectly, by
or on behalf of the Consenting Securityholder with any person with respect to
any Acquisition Proposal;

 

(viii)                        immediately (and in any
event within twenty-four (24) hours of receipt by the Consenting
Securityholder) notify the Purchaser, at first orally and then in writing, of
any Acquisition Proposal, of which it becomes aware, and shall provide the
Purchaser with a description of the material terms of any such Acquisition
Proposal, and shall provide the identity of the person making any such
Acquisition Proposal and such other details as the Purchaser may reasonably
request; and

 

(ix)                                execute any and all
documents and perform any and all commercially reasonable acts required by this
Agreement to satisfy all of its obligations hereunder.

 

(d)                                 The
Consenting Shareholder shall not, and hereby agrees not to:

 

(i)                                     assert or exercise any
dissent rights and waives any rights of appraisal, or rights to dissent from
the Arrangement or the Transaction that the Consenting Securityholder may have;
or

 

(ii)                                  commence or participate in,
and shall, and hereby agrees to, take all actions necessary to opt out of any
class in any class action with respect to, any claim, derivative or otherwise,
against the Company or the Purchaser or any of their subsidiaries (or any of
their respective successors) relating to the negotiation, execution and
delivery of the Arrangement Agreement or the consummation of the Transactions.

 

(e)                                  The
Consenting Securityholder further agrees:

 

6

 

(i)                                     to the existence and factual
details of this Agreement being set out in any public disclosure, including,
without limitation, press releases and court materials, produced by the Company
or Purchaser, at the discretion of the Company or Purchaser, in connection with
the Transaction and the Plan; and

 

(ii)                                  to this Agreement being
filed and/or available for inspection by the public to the extent required by
law or stock exchange rules.

 

5.                                      Change in Nature of Transaction

 

(a)                                  In
the event that: (i) the Company,
with the agreement of Purchaser, determines in its good faith judgment that it
is necessary or desirable to proceed with an alternative transaction structure,
including, without limitation, a takeover bid or asset purchase, in conjunction
with or instead of the Plan; (ii) such
alternative transaction provides the same, or better, financial treatment to
all affected parties and the financial implications (including tax) for the
Consenting Securityholder are the same or better and the alternative
transaction is on terms that are not more adverse than those contained in the
Arrangement Agreement; and (iii) such
alternative transaction is initiated on or before November 30, 2010 (as
described in each of the foregoing clauses (i), (ii) and (iii), a “Revised Transaction”), the Consenting
Securityholder shall support the completion of the Revised Transaction in the
same manner and to the same extent that it has agreed to support the
Transaction and the Plan under this Agreement.

 

(b)                                 In
the event of any proposed Revised Transaction, the references in this Agreement
to the Transaction shall be deemed to be changed to “Revised Transaction” and
all terms, covenants, representations and warranties of this Agreement shall be
and shall be deemed to have been made in the context of the Revised
Transaction.

 

6.                                      Termination

 

This Agreement and the obligations of the
Parties to this Agreement shall terminate upon the earliest to occur of:

 

(a)                                  the
termination of the Arrangement Agreement in accordance with its terms;

 

(b)                                 at
any time, by mutual agreement in writing executed by the Parties; or

 

(c)                                  the
Effective Time of the Transaction.

 

Each Party shall be responsible and shall
remain liable for any breach of this Agreement by such Party occurring prior to
the termination of this Agreement.

 

7

 

7.                                      Miscellaneous

 

(a)                                  Nothing
in this Agreement is intended to preclude the Consenting Securityholder from
engaging in any securities transactions, subject to the agreements set forth in
Section 4 with respect to the Relevant Securities.

 

(b)                                 If
the Consenting Securityholder acquires additional Company Share Capital or
other securities of the Company (“Additional
Shares”) after the date hereof, any and all rights and claims
obtained by the Consenting Securityholder with respect to, on account of or
pursuant to any Additional Shares shall automatically be subject to this
Agreement.

 

(c)                                  This
Agreement (including the schedules attached to this Agreement) constitutes the
entire agreement and supersede all prior agreements and understandings, both
oral and written, among the Parties with respect to the subject matter hereof.

 

(d)                                 Any
provision in this Agreement may be amended or waived if, and only if, such
amendment or waiver is in writing and signed, in the case of an amendment, by
the Consenting Securityholder, and the Purchaser, or in the case of a waiver,
by the Party against whom the waiver is to be effective.  No failure or delay by any Party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise.

 

(e)                                  Any
date, time or period referred to in this Agreement shall be of the essence
except to the extent to which the Parties agree in writing to vary any date,
time or period, in which event the varied date, time or period shall be of the
essence.

 

(f)                                    Except
as otherwise provided in this Agreement each of the Parties shall bear its own
expenses incurred in connection with this Agreement and the transactions
contemplated hereby.

 

(g)                                 All
notices and other communications which may be or are required to be given
pursuant to any provision of this Agreement shall be given or made in writing
and shall be deemed to be validly given if served personally or by facsimile
transmission, in each case addressed to the particular Party:

 

(i)                                     If to the Purchaser, at:

 

Thompson Creek Metals Company Inc.

Suite 810 - 26 West Dry Creek Circle

Littleton, CO, 80120

Attn: Dale Huffman

 

Main: (303) 761-8801

Fax: (303) 761-7420

 

(ii)                                  If to the Consenting
Securityholder, at:

 

	
   “Basil Huxham”

  	
  (name)

  

c/o Terrane Metals Corp.

 

8

 

Suite 1500 - 999 West Hastings

Vancouver BC V6C 2W2

 

Main: (604) 681-9903

Fax: (604) 630-2090

 

or at such other address of which any Party
may, from time to time, advise the other Parties by notice in writing given in
accordance with the foregoing.  The date
of receipt of any such notice shall be deemed to be the date of delivery or
transmission thereof.

 

(h)                                 If
any term or other provision of this Agreement is invalid, illegal or incapable
of being enforced by any rule of law or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full
force and effect.  Upon such
determination that any term or other provision is invalid, illegal or incapable
of being enforced, the Parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the Parties as closely as
possible in a mutually acceptable manner in order that the terms of this
Agreement remain as originally contemplated to the fullest extent possible.

 

(i)                                     The
provisions of this Agreement shall be binding upon and enure to the benefit of
the Parties hereto and their respective successors and permitted assigns,
provided that no Party may assign, delegate or otherwise transfer any of its
rights, interests or obligations under this Agreement without the prior written
consent of the other Party hereto, except that the Purchaser may assign this
Agreement to an affiliate, without reducing its own obligations hereunder,
without the consent of the Consenting Securityholder.

 

(j)                                     This
Agreement is governed by the laws of the Province of British Columbia and the
federal laws of Canada applicable therein. 
Each Party submits to the jurisdiction of the courts of competent
jurisdiction in the Province of British Columbia in respect of any action or
proceeding relating to this Agreement. 
The Parties shall not raise any objection to the venue of any
proceedings in any such court, including the objection that the proceedings
have been brought in an inconvenient forum.

 

(k)                                  The
Parties waive any right to trial by jury in any proceeding arising out of or relating
to this Agreement or any of the transactions contemplated by this Agreement,
present or future, and whether sounding in contract, tort or otherwise.  Any Party may file a copy of this provision
with any court as written evidence of the knowing, voluntary and bargained for
agreement between the Parties irrevocably to waive trial by jury, and that any
proceeding whatsoever between them relating to this Agreement or any of the
transactions contemplated by this Agreement shall instead be tried by a judge
or judges sitting without a jury.

 

(l)                                     Subject
to Applicable Law, the Consenting Securityholder agrees that it shall not make
any public announcement or statement with respect to this Agreement, the
Arrangement Agreement, the Plan or the Transaction without the prior written 

 

9

 

approval of the Company and Purchaser, unless such
announcement or statement shall be required to meet timely disclosure or early
warning obligations of the Consenting Securityholder under securities laws
and/or stock exchange rules.

 

(m)                               The
Consenting Securityholder recognizes and acknowledges that this Agreement is an
integral part of the Transaction, that the Purchaser would not enter into the
Arrangement Agreement and the Plan unless this Agreement was executed, and
accordingly acknowledges and agrees that a breach by the Consenting
Securityholder of any covenants or other commitments contained in this
Agreement will cause the Purchaser to sustain injury for which they may not have
an adequate remedy at law for monetary damages. 
Therefore, the Parties agree that in the event of any such breach the
Purchaser shall be entitled to the remedy of specific performance of such
covenants or commitments and preliminary and permanent injunctive and other
equitable relief in addition to any other remedy to which it may be entitled,
at law or in equity, and the Parties further agree to waive any requirement for
the securing or posting of any bond in connection with the obtaining of any
such injunctive or other equitable relief.

 

(n)                                 The
Parties confirm that it is their wish that this Agreement, as well as any other
documents relating to this Agreement, including notices, schedules and
authorizations, have been and shall be drawn up in the English language only.

 

(o)                                 This
Agreement may be executed by facsimile or other electronic means and in one or
more counterparts, all of which shall be considered one and the same agreement.

 

This Agreement has been agreed and accepted on
the date first written above.

 

 

	
   

  	
   

  	
  THOMPSON CREEK METALS COMPANY
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  “Kevin Loughrey”

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Kevin Loughrey

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Chairman, Chief Executive Officer and
  Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signed: “Basil Huxham”

  
	
   

  	
   

  	
  Please Print Name:

  
	
   

  	
   

  	
  Basil Huxham

  

 

10

 

SCHEDULE A

 

ARRANGEMENT AGREEMENT

 

See Exhibit 2.1 to Purchaser’s Current
Report on Form 8-K filed with the Securities and Exchange Commission on July 21,
2010

 

 

 

SCHEDULE B

 

RELEVANT SECURITIES

 

	
  Class of Securities

  	
   

  	
  Number of Securities Held

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Company Common Shares

  	
   

  	
  25,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Company Preferred Shares

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2007 Warrants

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2010 Warrants

  	
   

  	
  12,500

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Company Options

  	
   

  	
  600,000

  	
   

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCHEDULE C

 

PROXY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Terrane
Metals Corp.

 

Suite 1500
- 999 West Hastings Vancouver BC V6C 2W2

 

Tel: (604)
681-9903       Fax: (604) 630-2090

 

P R O X Y

 

This proxy is solicited by the management of TERRANE METALS
CORP. (the “Corporation”) for the Special Meeting of its shareholders and
optionholders (the “Meeting”) to be held on September ·, 2010.

 

The undersigned hereby appoints, ·, Chief Executive Officer
of the Corporation, or failing him, ·, Chief Financial Officer
of the Corporation, or instead of either of the foregoing, (insert name)                                                       ,
as nominee of the undersigned, with full power of substitution, to attend and
vote on behalf of the undersigned at the Meeting to be held in ·, Vancouver, British
Columbia, on September ·, 2010 at 10:00 am
(Vancouver time), and at any adjournments thereof, and directs the nominee to
vote or abstain from voting the shares and options of the undersigned in the
manner indicated below:

 

1.                                       TERRANE ARRANGEMENT RESOLUTION

 

To consider and, if thought appropriate, pass a
special resolution authorizing and approving, the arrangement with Thompson
Creek Metals Company Inc. under Section 288 of the Business Corporations
Act (British Columbia) as more particularly described in the
accompanying Management Information Circular.

 

FOR o    AGAINST o

 

2.                                       To transact any other business as may properly come before the Meeting or
at any adjournment thereof.

 

3.                                       Upon any permitted amendment to or variation of any matter identified in
the Notice of Meeting.

 

THE UNDERSIGNED HEREBY REVOKES ANY PRIOR PROXY OR
PROXIES.

 

DATED:                                                        ,
2010.

 

	
   

  	
   

  
	
   

  	
   

  
	
  Signature of Securityholder

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Please print name here)

  	
   

  

 

 

Note: If not dated, this
proxy is deemed to be dated on the day sent by the Corporation.

 

 

Affix label here

Name of Shareholder

Address of Shareholder

 

 

(Please advise the
Corporation of any change of address)

 

 

NOTES:

 

A proxy will not be valid unless the completed, signed and
dated form of proxy is faxed to Attention: Proxy Department 1  604 661 9549 or delivered
by mail or by hand to 510 Burrard Street, 2nd Floor, Vancouver, British
Columbia, V6C 3B9, or 100 University Avenue, 9th
Floor, Toronto, Ontario, M5J 2Y1, not less than 48 hours (excluding Saturdays and holidays) before the time
at which the Meeting is to be held, or any adjournment thereof.

 

Any one of the joint holders of a share may sign a
form of proxy in respect of the security but, if more than one of them is
present at the Meeting or represented by proxyholder, that one of them whose
name appears first in the register of members in respect of the security, or
that one’s proxyholder, will alone be entitled to vote in respect thereof.  Where the form of proxy is signed by a
corporation, either its corporate seal must be affixed or the form should be
signed by the corporation under the hand of an officer or attorney duly
authorized in writing.

 

A securityholder has the right to appoint a person, who need
not be a securityholder, other than either of the nominees designated in this
form of proxy to attend and act for the securityholder and on the
securityholder’s behalf at the Meeting, and may do so by inserting the name of
that other person in the blank  space
provided for that purpose in this form of proxy or by completing another
suitable form of proxy.

 

The securities represented by the proxy will be
voted or withheld from voting in accordance with the instructions of the
securityholder on any ballot, and where a choice with respect to a matter to be
acted on is specified the shares will be voted on a ballot in accordance with
that specification.  This proxy confers
discretionary authority with respect to matters identified or referred to in
the accompanying Notice of Meeting for which no instruction is given, and with
respect to other matters that may properly come before the Meeting.

 

IN RESPECT OF A MATTER SO IDENTIFIED OR REFERRED TO FOR WHICH
NO INSTRUCTION IS GIVEN, THE NOMINEES NAMED IN THIS PROXY WILL VOTE SECURITIES
REPRESENTED THEREBY FOR THE APPROVAL OF SUCH MATTER.

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