Document:

EXHIBIT
      10.36

    

    WITS
      BASIN PRECIOUS MINERALS INC.

    SUBSCRIPTION
      AGREEMENT AND INVESTMENT REPRESENTATION

    

    UNITS
      OF COMMON STOCK AND WARRANTS

    

    Wits
      Basin Precious Minerals Inc.

    800
      Nicollet Mall, Suite 2690

    Minneapolis,
      MN 55402

    

    Ladies
      and Gentlemen:

    

    The
      undersigned represents that, if an individual, he/she is of legal age, and
      hereby subscribes for _________________ “Units,” each Unit consisting of One (1)
      share of common stock, par value $.01 per share (the “Common Stock”) of
      Wits
      Basin Precious Minerals Inc., a Minnesota corporation (the “Company”), and
      one-half of a (1) one-year warrant to purchase one share of common stock at
      a
      price of $0.75 per share (the “Warrants” and together with the Units, the
“Securities”). The aggregate purchase price of the Securities shall be
      $_________ (the “Purchase Price”). The shares of Common Stock underlying the
      Units shall be referred to herein as the “Shares.” Details of this Offering are
      in the Term Sheet, attached herewith as Exhibit A. The undersigned acknowledges
      that this Subscription Agreement and Letter of Investment Representations is
      contingent upon the acceptance in whole or in part by the Company. 

    

    THE
      UNDERSIGNED ACKNOWLEDGES THAT AN INVESTMENT IN THE COMPANY IS HIGHLY
      SPECULATIVE, INVOLVES A HIGH DEGREE OF RISK AND IMMEDIATE DILUTION AND IS
      SUITABLE ONLY FOR PERSONS WHO CAN AFFORD TO LOSE THEIR ENTIRE
      INVESTMENT.

    

    This
      subscription is made in connection with the Company’s offering (the “Offering”)
      of a minimum of 5,000,000 Units (the “Minimum”) and a maximum of 7,000,000 Units
      (the “Maximum”) and is subject to the following terms and
      conditions:

    

    1.  Right
      of Rejection.
      This
      subscription is made subject to the right of the Company to reject any
      subscription in whole or in part.

     

    2.  Purchase
      Price.
      In
      payment for the Units, the undersigned hereby delivers the sum equal to the
      number of Units purchased multiplied by $0.25 (the “Purchase Price”).

    

    3.    
      Payment
      Instructions: 

    

    Method
      of Payment for Canadian Purchasers:

     

    Payment
      for the Units shall be made by bank wire transfer, certified cheque, or bank
      draft (without deduction of bank service charges or otherwise)
      payable to “IBK
      Capital Corp., US Trust Account #1”.
      The
      entire subscription price for all Units must be paid at the time of
      subscription. In the case of a bank wire transfer, funds should be wired
      to:

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
              ACCOUNT
                NAME:

            	
              IBK
                CAPITAL CORP, US TRUST ACCOUNT #1

            
	
              Bank:

            	
              TD
                Canada Trust

            
	 	
              Toronto
                Dominion Centre Branch

            
	 	
              55
                King Street West

            
	 	
              Toronto,
                Ontario, Canada M5K 1A2

            
	
              TD’s
                Swift Code:

            	
              TDOMCATT
                TOR

            
	
              Transit
                #:

            	
              10202-004

            
	
              Account
                Name Beneficiary:

            	
              IBK
                Capital Corp., US Trust Account #1

            
	
              US
                Trust Account #:

            	
              XXXXXXXXXXXXX

            

    

     

     

    Method
      of Payment for Non-Canadian Purchasers:

    
    

    
      
        Payment
          for the Units shall be made by bank wire transfer, certified cheque, or
          bank
          draft (without deduction of bank service charges or otherwise)
          payable to “Maslon
          Edelman Borman & Brand”.
          The
          entire subscription price for all Units must be paid at the time of
          subscription. In the case of a bank wire transfer, funds should be wired
          to:

      

    

     

    
      	
              Bank
                Name:

            	
              US
                Bank, N.A., 800 Nicollet Mall, Minneapolis, MN 55402

            
	
              Routing
                #:

            	
              091000022

            
	
              Account
                #:

            	
              XXXXXXXXXXXXX

            
	
              Account
                Name:

            	
              Maslon
                Edelman Borman & Brand Trust Account

            
	
              Attention:

            	
              WITS
                BASIN

            

    

     

    4. Registration
      Instructions: 

    
    

    
      
        The
          undersigned hereby directs that the certificates representing the Units
          shall be
          delivered as indicated above at the time of the closing and shall be registered
          as follows:

      

    

    

    
      	
               

            
	
               (Name)

            

    

     

    
      

      
        	
                 

              
	
                 (Address,
                  City, Postal Code,
                  Country)

              

      

       

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    5. Delivery
      Instructions. The
      Company is authorized to deliver the Units to:

    

    
      

      
        	
                 

              
	
                 (Name)

              

      

       

      
        

        
          	
                   

                
	
                   (Address,
                    City, Postal Code,
                    Country)

                

        

         

      

    

    
      
        	 Attention: 	 
	
                  (Contact
                  and Phone
                  Number)

              

      

    

     

    6.  Representations
      and Warranties of Subscriber.
      The
      undersigned acknowledges, warrants, and represents as follows:

    

    
      	(a)        
                	
              I
                have, either alone or with the assistance of my professional advisor,
                sufficient knowledge and experience in financial and business matters
                that
                I believe myself capable of evaluating the merits and risks of the
                prospective investment in the
                Units.

            

    

    

    
      	 	
              (c)

            	
              I
                have obtained, to the extent I deem necessary, professional advice
                with
                respect to the risks inherent in investment in the Units, the suitability
                of the investment in light of my financial condition and investment
                needs,
                and legal, tax and accounting
                matters.

            

    

    

    
      	 	
              (d)

            	
              I
                have been given access to full and complete information regarding
                the
                Company, including without limitation, , (i) the Company’s Annual Report
                on Form 10-K for the year ended December 31, 2002 filed with the
                Securities and Exchange Commission (the “SEC”) on March 31, 2003, (ii) the
                Company’s Quarterly Report on Form 10-Q for the quarter ended March 31,
                2003 (the “First Quarter 10-Q”), and (iii) the Company’s Amendment to
                Current Report on Form 8-K/A dated March 14, 2003 and filed on
                May 27, 2003, and (iv) the Company’s Current Report on Form 8-K dated
                June 26, 2003 and filed on July 1, 2003; and have utilized such access
                to
                my satisfaction to verify any information I may have sought relating
                to
                the Company and relevant to my investment decision. I have been given
                the
                opportunity to discuss all material aspects of this transaction with
                representatives of the Company and any questions asked have been
                answered
                to my full satisfaction.

            

    

    

    
      	 	
              (e)

            	
              I
                recognize that investment in the Units involves a high degree of
                risk,
                that the purchase of the Units is a long-term investment, that
                transferability and sale of the Units are restricted in many ways,
                and
                that I could sustain a total loss of my investment. I have carefully
                reviewed the Risk Factors in the Company’s Annual Report on Form 10-K, the
                Company’s First Quarter 10-Q and those additional Risk Factors attached
                hereto as Exhibit B.

            

    

    

    
      	 	
              (f)

            	
              I
                am an “Accredited Investor” as defined in Rule 501(a) of Regulation D
                promulgated under the Securities Act of 1933, as amended (the “Securities
                Act”). This representation is based on the following (check one or more,
                as applicable):

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    
      	 	
              ___

            	
              (1)

            	
              I
                have had an individual income in excess of $200,000 in each of the
                two
                most recent years or joint income with my spouse in excess of $300,000
                in
                each of the two most recent fiscal years and reasonably expect reaching
                the same income level in the current year;
                or

            

    

    

    
      	 	
              ___

            	
              (2)

            	
              As
                of the date hereof, I (either individually or with my spouse) have
                a net
                worth in excess of $1,000,000; or

            

      	 	 	 	 

      	 	___	
              (3)

            	
              I
                am a director or executive officer of the Company;
                or

            

    

     

    
      	 	
              ___

            	
              (4)

            	
              The
                undersigned is a corporation or partnership not formed for the specific
                purpose of acquiring the Units and has total assets in excess of
                $5,000,000. 

            

    

    

    
      	 	
              ___

            	
              (5)

            	
              The
                undersigned, if not an individual, is an entity all of whose equity
                owners
                meet one of the tests set forth in (1) through (4) above (if relying
                on
                this category alone, each equity owner must complete a separate copy
                of
                this Agreement).

            

    

    

    
      	 	
              (g)

            	
              I
                have ____/have not _____ used the services of a purchaser representative
                in connection with this investment. If I have used a purchaser
                representative I have received a fully completed and executed Purchaser
                Representative Questionnaire.

            

    

    

    
      	 	
              (h)

            	
              I
                am not relying upon the Company with respect to the economic
                considerations involved in determining to make an investment in the
                Units.

            

    

    

    
      	 	
              (i)

            	
              I
                have no need for immediate liquidity with respect to my investments
                and
                have sufficient income to meet my current and anticipated obligations.
                The
                total loss of the Purchase Price being paid herewith would not cause
                financial hardship to me and would not adversely affect my current
                standard of living. In addition, my overall commitment to investments
                which are not readily marketable is not disproportionate to my net
                worth
                and my investment in the Units will not cause such overall commitment
                to
                become excessive.

            

    

    

    7. Investment
      Purpose of Subscriber.
      I
      represent and warrant that it is my intention to acquire the Units for my own
      account for investment purposes and not with a view to resale in connection
      with
      any distribution thereof.

    

    In
      order
      to assure the Company that I have no present intention to resell or dispose
      of
      the Units, I hereby represent and warrant the following facts:

    

    
      	 	
              (a)

            	
              I
                am domiciled in the State of _____________ or Country of ______________
                and intend to receive and hold the Units for my personal
                account.

            

    

    

    
      	 	
              (b)

            	
              I
                have no contract, undertaking, agreement or arrangement with any
                person or
                company to sell or transfer the Units to any such person or company
                or to
                have any such person or company sell the Units on my
                behalf.

            

    

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
 

    
      	 	
              (c)

            	
              I
                am not aware of any occurrence, event, or circumstance upon the happening
                of which I intend to transfer or sell the Units and I do not have
                any
                present intention to transfer or sell the Units after a lapse of
                any
                particular period of time.

            

    

    

    
      	 	
              (d)

            	
              I
                have been informed that in the view of some state securities commissions,
                a purchase now with an intent to resell, by reason of any foreseeable
                specific contingency or anticipated change in market values, or any
                change
                in the condition of the Company, or that of the industry, or in connection
                with a contemplated liquidation or settlement of any loan obtained
                for the
                acquisition of the Units, would represent a purchase with an intent
                inconsistent with the representations set forth above, and that such
                state
                securities commissions might regard such sale or disposition as a
                deferred
                sale with regard to which an exemption from registration is not
                available.

            

    

    

    
      	 	
              (e)

            	
              I
                further represent and agree that if, contrary to the foregoing
                representations and warranties, I should later desire to dispose
                of or
                transfer any of the Units in any manner, I shall not do so without
                first
                obtaining an opinion of counsel satisfactory to the Company that
                such
                proposed disposition or transfer may be made lawfully without the
                registration of the Units pursuant to the Securities Act and applicable
                state laws.

            

    

    

    8. Registration
      Status of Securities.
      I
      understand that the Units to be issued hereunder have not been registered under
      the Securities Act or under applicable state securities acts, on the grounds
      that the Units are being issued in a transaction involving a limited group
      of
      knowledgeable investors fully familiar with the affairs and proposed operations
      of the Company and not involving a public offering and that, consequently,
      such
      transaction is exempt from registration under the Securities Act and state
      securities acts.

    

    In
      that
      regard, I understand that the Units may not be sold, transferred or otherwise
      disposed of except pursuant to an effective registration statement or
      appropriate exemption from registration under applicable state law and, as
      a
      result, I may be required to hold the Units for an indefinite period of time.
      Except as described above, I understand that the Company has not agreed to
      register the Units for distribution in accordance with the provisions of the
      Act
      or state law, and that the Company has not agreed to comply with any exemption
      under the Act or state law for the resale of the Units.

    

    I
      understand that the Units have not been approved or disapproved by the
      Securities and Exchange Commission or any state securities commission.

    

    I
      acknowledge that the Company will rely on my representations herein as a basis
      for the exemption from registration. I agree to indemnify the Company for and
      from any claim, liability, cost or expense, including reasonable attorneys’
fees, arising from any unlawful sale by me or offer by me to sell or transfer
      any of the Units subscribed for hereby.

    

    I
      understand that no assurance can be made that any of the Units can be resold
      at
      any price. I understand that no representations or warranties of any kind are
      intended nor should any be inferred with respect to the economic viability
      of
      this investment or with respect to any benefits which may accrue to investment
      in the Company. I understand that the Company, its directors, officers and
      employees, do not in any way represent, guarantee or warrant any economic gain
      or profit with regard to the business or that favorable income tax consequences
      will flow therefrom. 

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    9. Legend
      on Certificates to be Issued.
      I
      understand and acknowledge that the certificates representing the Shares and
      Warrants subscribed for hereby and to be issued by the Company upon acceptance
      of this Subscription Agreement, will contain substantially the following
      legend:

    

    “The
      Shares represented by this Certificate has not been registered under the
      Securities Act of 1933, as amended, or any state Blue Sky law. Such Shares
      have
      been acquired by the registered holder hereof for his or her own account for
      investment purposes and may not be sold, transferred or otherwise disposed
      of
      for value, except pursuant to registration under all applicable securities
      laws
      or the receipt by the Company of an opinion of counsel, satisfactory in form
      and
      substance to the Company, that registration is not required under such
      securities laws.”

    

    10.  Registration
      Rights.
      The
      Company agrees to file a “resale” registration statement (the "Registration
      Statement") with the United States Securities and Exchange Commission (“SEC”) on
      an appropriate form and to include therein the Common Stock included in the
      Units and the Common Stock purchasable by the undersigned upon the exercise
      of
      the Warrant, to allow the resale of such Securities by the undersigned, and
      to
      use its best efforts to cause the Registration Statement to become effective
      within ninety (90) days from the date of issuance of the Securities. In the
      event the Registration Statement has not been declared effective by the SEC
      within one hundred twenty (120) days following the termination of the Offering
      by the Company, the Company shall be obligated to promptly pay the undersigned
      a
      penalty equal to 1/5 of a share of Common Stock for each Unit purchased
      hereby. The
      Company shall bear all expenses and fees incurred in connection with the
      preparation, filing, and amendment of the Registration Statement with the
      Commission, except that the undersigned shall pay all fees, disbursements and
      expenses of any counsel or expert retained by the undersigned and all
      underwriting discounts and commissions, filing fees and any transfer or other
      taxes relating to the Securities included in the Registration Statement. The
      undersigned agrees to cooperate with the Company in the preparation and filing
      of any Registration Statement, and in the furnishing of information concerning
      the undersigned for inclusion therein, or in any efforts by the Company to
      establish that the proposed sale is exempt under the 1933 Act as to any proposed
      distribution. The undersigned understands that if the Company has not received
      such information requested by the Company in the Registration Notice within
      20
      days after undersigned’s receipt thereof, the Company shall have no obligation
      to include any of undersigned’s Securities in the Registration
      Statement.

    

    11.  Redemption
      -
      The
Warrant
      shall be redeemable in whole at the option of the Corporation for [$.01 per
      share] in the event that (i) the average of the high and low trading prices
      is
      equal to or greater than $1.50 for at least 10 consecutive trading days during
      the term of the Warrant; and (ii) a registration statement enabling the resale
      of the Shares (as described in paragraph 8 above) has been declared effective
      by
      the Securities and Exchange Commission. The Corporation shall give the
      undersigned at least ten days prior written notice of its intent to redeem
      the
      Warrant, at the address of the undersigned as last recorded on the Corporation’s
      records, which notice shall state the record date fixed for the redemption
      and
      the place designated for the surrender of the Warrant. Following any such
      redemption, the Warrant, unless previously exercised, shall be null and
      void.

    

    12. Additional
      Information Available.
      I
      acknowledge that the Company has provided me with access to such other
      information as I have deemed necessary or important in my evaluation of the
      investment in the Units.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    13. Binding
      Effect.
      This
      Agreement shall be binding upon and shall inure to the benefit of the parties
      hereto and to the successors and assigns of the Company and to the personal
      and
      legal representatives, heirs, guardians, successors, and permitted assignees
      of
      the undersigned.

    

    14. Entire
      Agreement.
      This
      instrument contains the entire agreement of the parties, and there are no
      representations, covenants or other agreements except as stated or referred
      to
      herein.

    

    15. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Minnesota.

    

    I
      further
      acknowledge that I have determined that an investment in the Units is
      appropriate for me, in view of my overall financial condition.

    

    Dated:
      ______________, 2003. 

    

    

    
      	 	 	 
	
              
Signature	 	
              
Signature
	 	 	 

    

     

    
      
        	 	 	 
	
                
Name
                Typed or Printed 	 	
                
Name
                Typed or Printed
	 	 	 

      

    

    
 

    ACCEPTANCE

    

    On
      behalf
      of Wits Basin Precious Minerals Inc., the undersigned authorized officer hereby
      accepts this Subscription and agrees to issue a certificate representing
      _____________ Units consisting of Shares of Common Stock and Warrants to the
      foregoing subscriber.

    

    Dated:
      __________________, 2003.

     

    
      WITS
        BASIN PRECIOUS MINERALS
        INC.

    

    

    
      	 	 	 	 
	By 	 	 	 
	
              
                

              

            	 	 	
            
	
              Name

            	 	 	 
	
              
                
 

            	 	 	 
	 Title	 	 	 
	
              
                
 

            	 	 	
            

    

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    SUBSCRIBER
      INFORMATION

    

    
      	 

              

              Name 

            	 	 

              

              Name 

            
	
               

              
                
                  

                

                
                  Tax
                    Identification or Social Security Number

                

              

            	 	
               

              
                
                  

                

                
                  Tax
                    Identification or Social Security Number

                

              

            
	
               

            	 	
               

            
	 

              

              

              

              Residence
                Address

            	 	 
	
               

            	 	 
	
               

              
                

                

                

              

              Mailing
                Address (for registration on
                books of the Company)

            	 	 

    

    

    

    Type
      of Ownership (Check One):

     

    
      	
              o

            	
              Individual
                Ownership

            	 	
              o

            	
              Joint
                Tenants with right of Survivorship

            
	 	 	 	 	 
	
              o

            	
              Trust
                or Estate (Describe, and enclose authority)

            	 	
              o

            	
              Tenants-in-Common
                (both parties must sign)

            
	 	 	 	 	 
	
              o

            	
              Other
                (explain):________________

            	 	 	 
	 	
              ____________________________

            	 	 	 

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    TERM
      SHEET 

    

    No
      securities commission or other similar regulatory authority has passed on the
      merits of the securities offered herein nor has it reviewed this Term Sheet
      and
      any representation to the contrary is an offence. This Term Sheet is not, and
      under no circumstances is to be interpreted as, a prospectus, public information
      or advertisement of the securities described herein. Reference should be made
      to
      the subscription agreement, which terms shall govern.

    

    
      	
               Private
                Placement 

            	
               September
                4,
                2003

            

    

           

    WITS
      BASIN PRECIOUS MINERALS INC.

    

    PRIVATE
      PLACEMENT OF UNITS

    

    Minimum
      Offering - US $1,250,000

    Maximum
      Offering - US $1,750,000

    

     

    
      	
              Issuer:

            	 	
              Wits
                Basin Precious Minerals Inc. (the “Company”)

            
	 	 	 
	
              Issue:

            	 	
              The
                Company intends to raise a minimum of US$1,250,000 and a maximum
                of
                US$1,750,000 from the issuance of Units of the Company at a price
                of
                US$0.25 per Unit, each Unit consisting of one common share and one-half
                of
                one common share purchase warrant. Each whole common share purchase
                warrant (a “Warrant”) is exercisable on or before August 31, 2004 for one
                common share upon payment of US$0.75 per common share. 

            
	
               

            	 	 
	
              Outstanding
                Share Capital:

            	 	
              The
                Company currently has 17,057,181 common shares issued and outstanding.
                It
                has reserved 7,000,000 common shares for issuance of the Units, and
                a
                further 3,750,000 common shares for issuance upon exercise of the
                Warrants
                attached to the units. In addition, there are currently 16,733,594
                common
                shares reserved for issuance on the exercise of outstanding stock
                options
                and/or warrants.

            
	 	 	 
	
              Use
                of Proceeds:

            	 	
              Proceeds
                from the issuance of the Units will be used to fund exploration on
                the
                Company’s FSC Farm-In Project with Kwagga Gold (Proprietary) Limited and
                for general working capital purposes including general and administrative
                expenses.

            
	 	 	 
	
              Commission:

            	 	
              The
                Company may engage registered securities dealers or finders (“Agents”) to
                distribute the Units. The total amount of commission payable to the
                Agents
                will not exceed 10%. The commission may be paid in cash from the
                Company’s
                working capital or common shares of the Company priced at US$0.25
                per
                share or any combination of the above, subject to regulatory
                approval.

            

    

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	
              Offering
                Jurisdictions:

            	 	
              The
                Units are being offered to residents of such jurisdictions as the
                Company
                may approve (collectively, the “Qualifying
                Jurisdictions”).

            
	 	 	 
	
              Qualification
                for Subscription:

            	 	
              Subscribers
                must qualify as exempt purchasers pursuant to the exemptions from
                prospectus and/or registration requirements of their respective
                jurisdictions of residence. The Company reserves the right to reject
                any
                subscriptions at its sole discretion.

            
	 	 	 
	
              Resale
                Restrictions:

            	 	
              The
                Units will be issued pursuant to exemptions from prospectus requirements
                and will be subject to resale restrictions under the securities laws
                of
                the Qualifying Jurisdictions. 

            
	 	 	 
	
              Registration
                Rights

            	 	
              The
                Company will use its best efforts to cause the shares and the shares
                underlying the warrants to be registered for resale within 90 days
                from
                the Closing. The Company will pay each Subscriber a penalty equal
                to 1/5
                of a share for each Unit purchased in the event such registration
                has not
                occurred within 120 days of the final termination of the
                Offering.

            
	 	 	 
	
              Costs
                and Expenses:

            	 	
              Whether
                or not the Offering is completed, offering costs and expenses are
                to be
                borne by the Company, including the fees and disbursements of its
                designated legal counsel, payable on Closing.

            
	 	 	 
	
              Closing
                Date:

            	 	
              All
                subscriptions must be received by September 19, 2003, or such later
                date
                as the Company determines and the closing will take place on or before
                September 24, 2003 or such other date(s) as may be determined by
                the
                Company.

            
	 	 	 
	
              Regulatory
                Approval:

            	 	
              All
                terms contained herein are subject to regulatory approvals where
                necessary.

            

    

    

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

    

    ADDITIONAL
      RISK FACTORS 

    

    An
      investment in the Units involves certain risks. The following risk factors,
      as
      well as the other information contained in the Term Sheet and in the documents
      incorporated by reference herein, should be considered carefully by prospective
      investors. 

    

    Fluctuations
      in Gold Prices 

    

    The
      Corporation’s development efforts and the profitability of the Corporation's
      operations once commenced, will be significantly affected by changes in the
      market price of gold. Mine production and the willingness of third parties
      such
      as central banks to sell or lease gold affect the supply of gold. Demand for
      gold can be influenced by economic conditions, attractiveness as an investment
      vehicle and the relative strength of the US dollar and local investment
      currencies. Other factors include the level of interest rates, exchange rates,
      inflation and political stability. The aggregate effect of these factors is
      impossible to predict with accuracy. Gold prices are also affected by worldwide
      production levels. In addition, the price of gold has on occasion been subject
      to very rapid short-term changes due to speculative activities. Fluctuations
      in
      gold prices may adversely affect the Corporation's financial performance and
      results of operations. 

    

    Uncertainty
      of Reserve and Mineral Resource Estimates 

    

    The
      figures for proved and probable ore reserves and mineral resources presented
      by
      the Corporation are estimates and no assurance can be given that the anticipated
      tonnages and grades will be achieved or that the indicated level of recovery
      will be realized. The ore grade actually recovered by the Corporation may differ
      from the estimated grades of the reserves and mineral resources. Such figures
      have been determined based upon assumed gold prices and operating costs. Future
      production could differ dramatically from ore reserve estimates for, among
      others, the following reasons: 

    

    
      	·  	
              mineralization
                or formations could be different from those predicted by drilling,
                sampling and similar examinations; 

            

    

    
      	 	 

      	·  	
              increases
                in operating mining costs and processing costs could adversely affect
                ore
                reserves; 

            

    

    
      	 	 

      	·  	
              the
                grade of the ore reserves may vary significantly from time to time
                and
                there is no assurance that any particular level of gold may be recovered
                from the ore reserves; and 

            

    

    
      	 	 

      	·  	
              declines
                in the market price of gold may render the mining of some or all
                of the
                Corporation's ore reserves uneconomic.

            

    

    

    Any
      of
      these factors may require the Corporation to reduce its ore reserves estimates
      or increase its costs. Short term factors, such as the need for the additional
      development of a deposit or the processing of new different grades, may impair
      the Corporation's profitability. Should the market price of gold fall, the
      Corporation could be required to materially write down its investment in mining
      properties or delay or discontinue production or the development of new
      projects. 

    

    Nature
      of Mineral Exploration and Mining 

    

    The
      exploration for and development of mineral deposits involves significant
      financial risks which even a combination of careful evaluation, experience
      and
      knowledge may not eliminate. While the discovery of an ore body may result
      in
      substantial rewards, few properties which are explored are ultimately developed
      into producing mines. Major expenses may be required to establish ore reserves,
      to develop metallurgical processes and to construct mining and processing
      facilities at a site. It is impossible to ensure that the current programs
      planned for the Corporation will result in a profitable commercial mining
      operation.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    The
      Corporation's operations are subject to all of the hazards and risks normally
      incident to exploration, development and production of gold, any of which could
      result in damage to life or property, environmental damage and possible legal
      liability for any or all damage. The Corporation's activities may be subject
      to
      prolonged disruptions due to weather conditions depending on the location of
      operations in which the Corporation has interests. Hazards, such as unusual
      or
      unexpected formations, rock bursts, pressures, cave-in, flooding or other
      conditions may be encountered in the drilling and removal of material. While
      the
      Corporation may obtain insurance against certain risks in such amounts as it
      considers adequate, the nature of these risks are such that liabilities could
      exceed policy limits or could be excluded from coverage. There are also risks
      against which the Corporation cannot insure or against which it may elect not
      to
      insure. The potential costs which could be associated with any liabilities
      not
      covered by insurance or in excess of insurance coverage or compliance with
      applicable laws and regulations may cause substantial delays and require
      significant capital outlays, adversely affecting the Corporation's earnings
      and
      competitive position in the future and, potentially, its financial position
      and
      results of operation. 

    

    Whether
      a
      gold deposit will be commercially viable depends on a number of factors, some
      of
      which are the particular attributes of the deposit, such as its size and grade,
      proximity to infrastructure, financing costs and governmental regulations,
      including regulations relating to prices, taxes, royalties, infrastructure,
      land
      use, importing and exporting of gold and environmental protection. The effect
      of
      these factors cannot be accurately predicted, but the combination of these
      factors may result in the Corporation not receiving an adequate return on
      invested capital. 

    

    Capital
      Investment

    

    Mining
      exploration involves financial risk and capital investment. The Corporation's
      only means of acquiring investment capital will be by the sale of equity shares
      or the rights to acquire equity shares. It will have no source of funds to
      engage in additional exploration and development which may be necessary to
      exploit its properties other than interest earned on its short-term investments,
      and further financing.

    

    Additional
      Financing Needed for Joint Venture Investment

    

    To
      maintain the Corporation’s interest in the Joint Venture, additional financing
      in excess of USD$2,000,000 will be required. If the additional financing cannot
      be obtained, the Corporation will lose its initial investment and any future
      investment. No assurance can be made that the Corporation will be able to obtain
      such additional financing. 

    

    The
      Corporation's activities will be initially directed to the search for and the
      development of new mineral deposits, and significant capital investment will
      be
      required to achieve commercial production from successful exploration efforts.
      There is no assurance that the Corporation will have, or be able to raise,
      the
      required funds to continue these activities.

    

    

    
      
        
        

      

      
        12EXHIBIT
        10.37

      SUPPLEMENT
        TO

      WITS
        BASIN PRECIOUS MINERALS INC.

      SUBSCRIPTION
        AGREEMENT AND INVESTMENT REPRESENTATION

      

      UNITS
        OF COMMON STOCK AND WARRANTS

       

      Wits
        Basin Precious Minerals Inc.

      800
        Nicollet Mall, Suite 2690

      Minneapolis,
        MN 55402

      

      Ladies
        and Gentlemen:

      

      This
        letter serves to supplement that certain Subscription Agreement and Investment
        Representation between Wits Basin Precious Minerals Inc. (the “Company”) and the
        undersigned, relating to the purchase of units consisting of common stock
        and
        warrants of the Company (as heretofore amended or supplemented, the
“Subscription Agreement”). Capitalized terms used herein and not otherwise
        defined shall have the meanings ascribed in the Subscription
        Agreement.

       

      1.
        Change
        in Offering Size and Purchase Price.
        The
        undersigned investor hereby acknowledges and confirms that (i) the Maximum
        number of Units available for sale in the Offering is 10,000,000, increased
        from
        7,000,000, and (ii) the Purchase Price is $0.25 per Unit. 

       

      2.
        Amendment
        of Registration Rights.
        The
        undersigned investor further understands that in the event the Registration
        Statement (referred to in Paragraph 8 of the Subscription Agreement) is not
        declared effective by the United States Securities and Exchange Commission
        within one hundred twenty (120) days following the termination of the Offering
        by the Company (following the final closing of the sale of the Units), the
        Company shall be obligated to promptly pay the undersigned a penalty equal
        to
        one-fifth (1/5) of a share of Common Stock for each Unit purchased.

       

      The
        undersigned investor understands that, except as expressly modified by this
        Supplement, all other terms and provisions of the Subscription Agreement
        remain
        in full force and effect.

       

      Dated:
        _____________, 2003

       

      
        	 	 	 	 
	 	 	 	 
	
                
Signature	 	 	
                
Signature
	 	 	 	 
	
                
                  

                
Name Typed or Printed	 	 	
                

                Name Typed or Printed

      

            

      ACCEPTANCE

      

      On
        behalf
        of Wits Basin Precious Minerals Inc., the undersigned authorized officer
        hereby
        accepts this Supplement to the Subscription Agreement. 

      

      Dated:
        __________________, 2003.

      

      WITS
        BASIN PRECIOUS MINERALS INC.

      

      
        	 	 	 	 
	By	 	 	
              
	
                
                  

                
Name:	 	 	
              
	
                
                  

                

                Title:

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