Document:

Form of Warrant

 Exhibit 10.3 
 UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (i) JANUARY 18, 2007, AND (ii) THE DATE THE ISSUER BECAME A
REPORTING ISSUER IN ANY PROVINCE OR TERRITORY. 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND SUCH
LAWS COVERING SUCH SECURITIES, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY STATING THAT SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE SECURITIES ACT
AND SUCH LAWS. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE SECURITIES ACT. 
 SERIES “A” COMMON STOCK PURCHASE WARRANT 
 STERLING MINING COMPANY

  

			
	 Warrants:
                    
	  	Initial Issuance Date: January 18, 2007

 THIS SERIES A COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for
value received,                      (the “Holder”), is entitled, upon the terms and subject to the limitations on exercise
and the conditions hereinafter set forth, at any time on or after the Initial Issuance Date and on or prior to the close of business on the two year anniversary of the Initial Issuance Date (the “Termination Date”) but not
thereafter, to subscribe for and purchase from Sterling Mining Company, an Idaho corporation (the “Company”), up to
                     shares (the “Warrant Shares”) of common stock, par value $.05 per share, of the Company (the
“Common Stock”). The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). 
 Section 1. Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain
Subscription Agreement (the “Subscription Agreement”), dated January 18, 2007, among the Company and the purchasers signatory thereto. 
 Section 2. Exercise. 
 a) Exercise of Warrant. Exercise of the
purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or before the Termination Date by delivery to the Company of a duly executed facsimile copy of the 

  

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Notice of Exercise Form annexed hereto (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at
the address of such Holder appearing on the books of the Company); and, within three Business Days of the date said Notice of Exercise is delivered to the Company, the Company shall have received payment of the aggregate Exercise Price of the shares
thereby purchased by wire transfer or cashier’s check drawn on a United States or Canadian bank. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the
Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three Business Days of the date the final
Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant
Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall
deliver any objection to any Notice of Exercise Form within one Business Day of receipt of such notice. In the event of any dispute or discrepancy, the records of the Company shall be controlling and determinative in the absence of manifest error.
The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for
purchase hereunder at any given time may be less than the amount stated on the face hereof. 
 b) Exercise Price. The
exercise price per share of the Common Stock under this Warrant shall be U.S.$4.25, subject to adjustment hereunder (the “Exercise Price”). 
 c) Cashless Exercise. If at any time after a Registration Statement covering the Warrant Shares has been declared effective by the
Securities and Exchange Commission (the “Commission”) there is no effective Registration Statement registering, or no current prospectus available for, the resale of the Warrant Shares by the Holder, then this Warrant may also be exercised
at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a certificate for the number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where: 
  

	 	(A)  =	the daily volume weighted average price of the Common Stock on the Business Day immediately preceding the date of such election on the trading market on which the Common Stock is
then listed or quoted, based on a Business Day from 9:30 a.m. New York City time to 4:02 p.m. New York City time (“VWAP); 

  

	 	(B)  =	the Exercise Price of this Warrant, as adjusted; and 

  

	 	(X)  =	the number of Warrant Shares issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of a cash exercise rather than a cashless exercise.

  

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 d) Exercise Limitations. The Company shall not effect any exercise of this
Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2(c) or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of
Exercise, such Holder (together with such Holder’s Affiliates (as such term is defined under Rule 144 of the Securities Act), and any other person or entity acting as a group together with such Holder or any of such Holder’s Affiliates),
as set forth on the applicable Notice of Exercise, would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by such
Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be
issuable upon (A) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by such Holder or any of its Affiliates and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities
of the Company (including, without limitation, any other Warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by such Holder or any of its Affiliates. Except as set forth in
the preceding sentence, for purposes of this Section 2(d)(i), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by a
Holder that the Company is not representing to such Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and such Holder is solely responsible for any schedules required to be filed in accordance therewith. To
the extent that the limitation contained in this Section 2(d) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by such Holder together with any Affiliates) and of which a portion of this
Warrant is exercisable shall be in the sole discretion of a Holder, and the submission of a Notice of Exercise shall be deemed to be each Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by
such Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to such aggregate percentage limitation, and the Company shall have no obligation to verify or confirm the accuracy of such
determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this
Section 2(d), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (x) the Company’s most recent Form 10-Q or Form 10-K, as the case may
be, (y) a more recent public announcement by the Company or (z) any other notice by the Company or the Company’s transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a
Holder, the Company shall within two Business Days confirm orally and in writing to such Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving
effect to the conversion or exercise of securities of the Company, including this Warrant, by such Holder or its Affiliates since 

  

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the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of
the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Beneficial Ownership Limitation provisions of this Section 2(d)(i) may be
waived by such Holder, at the election of such Holder, upon not less than 61 days’ prior notice to the Company to change the Beneficial Ownership Limitation to 9.99% of the number of shares of the Common Stock outstanding immediately after
giving effect to the issuance of shares of Common Stock upon exercise of this Warrant, and the provisions of this Section 2(d) shall continue to apply. Upon such a change by a Holder of the Beneficial Ownership Limitation from such 4.99%
limitation to such 9.99% limitation, the Beneficial Ownership Limitation may not be further waived by such Holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of
this Section 2(d)(i) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to
properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant. 
 e) Mechanics of Exercise. 
 i. Authorization of Warrant Shares. The Company
covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant, be duly authorized, validly issued, fully paid and
nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). 
 ii. Delivery of Certificates Upon Exercise. Certificates for shares purchased hereunder shall be delivered by the transfer agent of
the Company to the Holder to the address specified by the Holder in the Notice of Exercise within 3 Business Days from the delivery to the Company of the Notice of Exercise Form, surrender of this Warrant (if required) and payment of the aggregate
Exercise Price as set forth above (“Warrant Share Delivery Date”). This Warrant shall be deemed to have been exercised on the date the Exercise Price is received by the Company. The Warrant Shares shall be deemed to have been
issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised by payment to the Company of the Exercise Price
(or by cashless exercise, if permitted) and all taxes required to be paid by the Holder, if any, pursuant to Section 2(e)(vii) prior to the issuance of such shares, have been paid. 
  

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 iii. Delivery of New Warrants Upon Exercise. If this Warrant shall have been
exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the
rights of Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. 
 iv. Rescission Rights. If the Company fails to cause its transfer agent to transmit to the Holder a certificate or certificates
representing the Warrant Shares pursuant to this Section 2(e)(iv) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise. 
 v. Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other rights available to
the Holder, if the Company fails to cause its transfer agent to transmit to the Holder a certificate or certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the
Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which
the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (1) pay in cash to the Holder the amount by which (x) the Holder’s total purchase price (including brokerage commissions, if
any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times
(B) the price at which the sell order giving rise to such purchase obligation was executed, and (2) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise
was not honored or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having
a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (1) of the immediately preceding
sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of
such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the
Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof. 
  

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 vi. No Fractional Shares or Scrip. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which Holder would otherwise be entitled to purchase upon such exercise, the Company shall at its election, either pay a cash adjustment in respect of
such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share. 
 vii. Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of
which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for
Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder; and the Company may require, as a
condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. 
 viii.
Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof. 
 ix. Exercise Mechanics if Registration Statement Not Effective: Notwithstanding any provision to the contrary contained
herein, if the issuance of Warrant Shares upon the exercise of Warrants requires the maintenance of an effective Registration Statement, with respect to such Warrant Shares under the Securities Act, in no event shall such Warrant Shares be issued
unless the Warrant Shares are registered under the Securities Act pursuant to an effective Registration Statement; provided, however, that if the Registration Statement ceases to be effective, prior to the Termination Date and for so long as the
Registration Statement is not effective, subject to applicable law, a holder of any Warrant may only exercise the right to purchase Warrant Shares issuable upon the exercise of the Warrants the circumstances noted below: 
  

	 	A.	 exercise such Warrants, if the holder is a purchaser who is not (A) a resident of the United States or (B) a U.S. Person (a “U.S. Purchaser”)
and the holder delivers a duly completed and executed Notice of Exercise (If Registration Statement Not Effective) certifying that the holder: (A)(1) is not in the United States; (2) is not a U.S. Person and is 

  

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not exercising the Warrants for, or on behalf or benefit of, a U.S. Person or person in the United States; (3) did not execute or deliver the Warrant
exercise form in the United States; (4) agrees not to engage in hedging transactions with regard to the Common Shares prior to the expiration of the one-year distribution compliance period set forth in Rule 903(b)(3) of Regulation S under the
Securities Act (“Regulation S”); (5) acknowledges that the Warrant Shares issuable upon exercise of the Warrants are “restricted securities” as defined in Rule 144 of the Securities Act and upon the issuance thereof, and
until such time as the same is no longer required under the applicable requirements of the Securities Act or applicable U.S. state laws and regulations, the certificates representing the Warrant Shares will bear a restrictive legend; and
(6) acknowledges that the Company shall refuse to register any transfer of the Warrant Shares not made in accordance with the provisions of Regulation S, pursuant to registration under the Securities Act, or pursuant to an available exemption
from registration under the 1933 Act; and (B) neither the Corporation nor the holder has engaged in any “directed selling efforts” (as defined in Regulation S) in the United States; or 

  

	 	B.	exercise such Warrants in a transaction that does not require registration under the Securities Act or any applicable U.S. state laws and regulations and the holder has
(A) delivered a duly completed and executed Notice of Exercise (If Registration Statement Not Effective) certifying that the holder is exercising the Warrants pursuant to such exemptions and (B) furnished to the Company, prior to such
exercise, an opinion of counsel of recognized standing in form and substance satisfactory to the Company to such effect. 

 x. Legending if Registration Statement Not Effective: Unless the Warrant is exercised pursuant to an effective Registration Statement, the certificate representing the Warrant Shares is issued upon
exercise of the Warrant will bear legends restricting the transfer without registration under the U.S. Securities Act and applicable state securities laws and restricting transfer under the Toronto Stock Exchange, substantially in the form set forth
below: 
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”) OR APPLICABLE STATE SECURITIES 

  

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LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES
ACT AND SUCH LAWS COVERING SUCH SECURITIES, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY STATING THAT SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE
SECURITIES ACT AND SUCH LAWS. THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE SECURITIES ACT.” 
 If the Common Shares are also then listed on the Toronto Stock Exchange or the TSX Venture Exchange certificates representing the Common Shares will also
bear the following legend 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE LISTED ON THE [TORONTO STOCK EXCHANGE
(“TSX”)][TSX VENTURE EXCHANGE (“TSX-V”)]; HOWEVER, THE SAID SECURITIES CANNOT BE TRADED THROUGH THE FACILITIES OF [TSX][TSX-V] SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY ANY CERTIFICATE REPRESENTING SUCH SECURITIES
IS NOT “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON [TSX][TSX-V].” 
 xi. Suspensions of Registration
Statement, etc,...: If any Warrant Shares issuable upon the exercise of Warrants require the maintenance of a current Registration Statement, with respect to such Warrant Shares under the Securities Act, the Company shall have the
authority to suspend the exercise of any or all Warrants while such registration statement is not current. Similarly, a Holder residing in a state where a required registration or governmental approval of issuance of the Warrant Shares is not in
effect as of or has not been obtained within a reasonable time after the surrender date of the Warrant Certificate for exercise shall not be entitled to exercise Warrants, unless in the opinion of counsel to the Company such registration or approval
in such state shall not be required or the Company otherwise authorizes the issuance. In such event, the Holder shall be entitled to transfer the Warrants to others, but only prior to the Termination Date for the Warrants being transferred. If no
Registration Statement is effective at any time when any Warrant is exercised, such Holder shall be notified forthwith by the transfer agent that such Holder is entitled, at his or her option, to exercise the Warrant only in 

  

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accordance with the conditions set forth in Sections 2(e)(ix)(A) and (B) and upon delivery of a Notice of Exercise (If Registration Statement Not
Effective) to the Company. 
 Section 3. Certain Adjustments. 
 a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (A) pays a stock dividend or
otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued
by the Company upon exercise of this Warrant), (B) subdivides outstanding shares of Common Stock into a larger number of shares, (C) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller
number of shares, or (D) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of
shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event and the number of shares
issuable upon exercise of this Warrant shall be proportionately adjusted. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such
dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification. 
 b) Subsequent Equity Sales. If the Company, at any time while this Warrant is outstanding, shall sell or grant any option to purchase, or sell or grant any right to reprice its securities, or otherwise dispose
of or issue (or announce any offer, sale, grant or any option to purchase or other disposition) any Common Stock or equivalent securities (“Common Stock Equivalents”) entitling any Person to acquire shares of Common Stock (the
“Additional Shares”), at an effective price per share less than the then Exercise Price (such lower price, the “Base Share Price” and such issuances collectively, a “Dilutive Issuance”) (if the holder of
the Common Stock or Common Stock Equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per
share which are issued in connection with such issuance, be entitled to receive shares of Common Stock at an effective price per share which is less than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise
Price on such date of the Dilutive Issuance), then the Exercise Price shall be reduced to a price determined by multiplying the Exercise Price then in effect by a fraction (i) the numerator of which shall be (A) the number of Common Shares
deemed outstanding (as determined below) immediately prior to such issue or sale, plus (B) the number of Common Shares that the aggregate Base Share Price amount received by the Company for the total number of Additional Shares of Common Stock
so issued would purchase at such Exercise Price, and (ii) the denominator of which shall be the number of Common Shares deemed outstanding (as defined below) immediately prior to such issue or sale plus the total number of Additional Shares of

  

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Common Stock so issued. Such adjustment shall be made whenever such Additional Shares are issued. Notwithstanding the foregoing, no adjustments shall be
made, paid or issued under this Section 3(b) in respect of any issuance under or pursuant to: (i) shares of Common Stock or options issued to employees, officers or directors of the Company pursuant to the Company’s 2006 Equity
Incentive Plan and 2006 Employee Stock Purchase Plan adopted by the Board of Directors on September 28, 2006, and pursuant to any other stock or option plan duly adopted for such purpose by a majority of the non-employee members of the Board of
Directors of the Company or a majority of the members of a committee of non-employee directors, (ii) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities exercisable or
exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement to increase the number of such securities or to
decrease the exercise, exchange or conversion price of such securities, (iii) securities issuable upon obligations or instruments outstanding on the date of this Agreement, and (iv) securities issued pursuant to acquisitions or strategic
transactions approved by a majority of the disinterested directors of the Company, provided any such issuance shall only be to a Person which is, itself or through its subsidiaries, a company in a business synergistic with the business of the
Company and in which the Company receives benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary
business is investing in securities. The Company shall notify the Holder in writing, no later than the Business Day following the issuance of any Additional Shares subject to this Section 3(b), indicating therein the applicable issuance price,
or applicable reset price, exchange price, conversion price and other pricing terms (such notice the “Dilutive Issuance Notice”). Upon the expiration or other termination without being exercised, exchanged, or converted of Common
Stock Equivalents that triggered any adjustment under this Section 3(b), the number of Common Shares deemed to be outstanding pursuant to this Section 3(b) shall be reduced by the number of shares as to which the Common Stock Equivalents
shall have expired or terminated unexercised, and the Exercise Price then in effect shall forthwith be readjusted and thereafter be the price that it would have been had adjustment been made on the basis of the issuance only of the Common Shares
actually issued. For purposes of this Section 3(b), the number of Common Shares deemed to be outstanding as of a given date shall be the sum of (x) the number of Common Shares actually outstanding, (y) the number of Common Shares for
which this Warrant could be exercised on the day immediately preceding the given date, and (z) the number of Common Shares which could be obtained through the exercise or conversion of all other rights, options and convertible securities
outstanding on the day immediately preceding the given date. 
 c) Pro Rata Distributions. If the Company, at any time
prior to the Termination Date, shall distribute to all holders of Common Stock (and not to Holders of the Warrants) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any
security other than the Common Stock (which shall be subject to Section 3(a) or 3(b) as applicable), then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record date
fixed for determination of stockholders entitled to 

  

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receive such distribution by a fraction of which the denominator shall be the VWAP as of the Business Day immediately prior to the record date mentioned
above, and of which the numerator shall be such VWAP as of the Business Day immediately prior to such record date less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed
applicable to one outstanding share of the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of
indebtedness so distributed or such subscription rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above.

 d) Fundamental Transaction. If, at any time while this Warrant is outstanding, (A) the Company effects any
merger or consolidation of the Company with or into another Person, (B) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (C) any tender offer or exchange offer (whether by
the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (D) the Company effects any reclassification of the Common Stock
or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental Transaction”), then, upon any subsequent
exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder,
(a) upon exercise of this Warrant, the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate
Consideration”) receivable upon or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by a Holder of the number of shares of Common Stock for which this Warrant is exercisable immediately
prior to such event or (b) if the Company is acquired in an all cash transaction, cash equal to the value of this Warrant as determined in accordance with the Black-Scholes option pricing formula. For purposes of any such exercise, the
determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the
Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the
securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. To the
extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new warrant consistent with the foregoing provisions and evidencing the
Holder’s right to exercise such warrant into Alternate Consideration. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the

  

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provisions of this Section 3(e) and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent
transaction analogous to a Fundamental Transaction. 
 e) Calculations. All calculations under this Section 3
shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number
of shares of Common Stock (excluding treasury shares, if any) issued and outstanding. 
 f) Voluntary Adjustment By
Company. The Company may at any time during the term of this Warrant reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company. 
 g) Notice to Holder. 
 i. Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment
and setting forth a brief statement of the facts requiring such adjustment. 
 ii. Notice to Allow Exercise by Holder. If (A) the
Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock; (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock; (C) the Company shall authorize
the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights; (D) the approval of any stockholders of the Company shall be required in connection with
any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, of any compulsory share exchange whereby the Common Stock is
converted into other securities, cash or property; (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company; then, in each case, the Company shall cause to be mailed to
the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to
be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption,
rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of
the Common Stock of record shall be entitled to 

  

 - 12 - 

 
exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale,
transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice. The Holder is entitled to
exercise this Warrant during the 20-day period commencing on the date of such notice to the effective date of the event triggering such notice. 
 Section 4. Transfer of Warrant. 
 a) Transferability. Subject to compliance with any
applicable securities laws and the conditions set forth in Section 4(d) hereof, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant
at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees and in the denomination or
denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. A Warrant, if properly assigned, may be
exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued. 
 b) New Warrants.
This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the
Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice. 
 c) Warrant Register. The Company shall register
this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as
the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary. 
 d) Transfer Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the
transfer of this Warrant shall not be registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws, the Company may require, as a condition of allowing such transfer, that
(i) the Holder or transferee of this Warrant, as the case may be, furnish to the Company a written opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable 

  

 - 13 - 

 
transactions) to the effect that such transfer may be made without registration under the Securities Act and under applicable state securities or blue sky
laws, and (ii) the Holder or transferee execute and deliver to the Company an investment letter in form and substance acceptable to the Company, and (iii) the transferee be an “accredited investor” as defined in Rule 501(a)(1),
(a)(2), (a)(3) and (a)(7) promulgated under the Securities Act. 
 Section 5. Miscellaneous. 
 a) No Rights as Shareholder Until Exercise. This Warrant does not entitle the Holder to any voting rights or other rights as a
shareholder of the Company prior to the exercise hereof as set forth in Section 2(e)(ii). 
 b) Loss, Theft,
Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant
Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock
certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate. 
 c) Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right
required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day. 
 d) Authorized Shares. 
 The Company covenants that during the period the Warrant
remains outstanding it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further
covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the
purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any
requirements of the trading market upon which the Common Stock may be listed. 
 Except and to the extent as waived or
consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of
securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such

  

 - 14 - 

 
actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality
of the foregoing, the Company will (a) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (b) take all such action as may be necessary or
appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant, and (c) use commercially reasonable efforts to obtain all such authorizations, exemptions or
consents from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant. 
 Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in
the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof. 
 e) Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be
determined in accordance with the provisions of the Subscription Agreement. 
 f) Restrictions. The Holder acknowledges
that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state, provincial and federal securities laws. 
 g) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall
operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding the fact that all rights hereunder terminate on the Termination Date. If the Company willfully and knowingly fails to comply with any
provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder. 
 h) Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall
be delivered in accordance with the notice provisions of the Subscription Agreement. 
 i) Limitation of Liability. No
provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for the purchase
price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company. 
  

 - 15 - 

 j) Remedies. Holder, in addition to being entitled to exercise all rights granted
by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the
provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate. 
 k) Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby
shall inure to the benefit of and be binding upon the successors of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of all Holders from time to time of this Warrant
and shall be enforceable by any such Holder or holder of Warrant Shares. 
 l) Amendment. This Warrant may be modified
or amended or the provisions hereof waived with the written consent of the Company and the Holder. 
 m) Severability.
Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant. 
 n) Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed
a part of this Warrant. 
 o) Counterparts and Facsimile. This Warrant may be executed in any number of counterparts
and by facsimile, each of which so executed shall constitute an original and all of which taken together shall form one and the same Warrant. 
 ******************** 
 REMAINDER OF PAGE LEFT INTENTIONALLY BLANK 
  

 - 16 - 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the
date first above indicated. 
  

			
	STERLING MINING COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	

  

 - 17 - 

 NOTICE OF EXERCISE 
 TO: STERLING MINING COMPANY 
 (1) The undersigned hereby elects to purchase
            Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any. 
 (2) Payment shall take the form of (check applicable box): 
  ̈ in lawful money of the United States; or

  ̈ [if permitted] the cancellation
of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set
forth in subsection 2(c). 
 (3) Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned
or in such other name as is specified below: 
  

	 	

 The Warrant Shares shall be delivered by physical delivery of a certificate to:

  

	 	

  

	 	

  

	 	

 (4) Accredited Investor. The undersigned is an
“accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended. 
  

			
	[SIGNATURE OF HOLDER]	 	  
		
	Name of Investing Entity:	 	  

	Signature of Authorized Signatory of Investing Entity:	 	  

	Name of Authorized Signatory:	 	  

	Title of Authorized Signatory:	 	  

	Date:     	 	  

 NOTICE OF EXERCISE 
 (If Registration Statement Not Effective) 
  

	TO:	STERLING MINING COMPANY 

 The undersigned holder of the
within Warrant Certificate, hereby exercises certain Warrants (the “Exercised Warrants”) evidenced thereby and hereby subscribes for a number of Common Shares of Sterling Mining Company equal to such number of Common Shares or number or
amount of other securities or property, or combination thereof, to which such exercise entitles him under the provisions of the Warrant at an aggregate price equal to the product of the Exercise Price and the number of Exercised Warrants, and on the
terms specified in such Warrant Certificate, and in payment therefor, delivers herewith a bank draft, certified cheque or money order payable to Sterling Mining Company. Capitalized terms not defined herein shall have the definitions set forth
in the Agency Agreement. 
 The undersigned represents that it (A) has had access to such current public information concerning Sterling
Mining Company as it considered necessary in connection with its investment decision and (B) understands that the securities issuable upon exercise hereof have not been registered under the United States Securities Act of 1933, as amended (the
“1933 Act”). 
 The undersigned represents and warrants that it: [CHECK ONE ONLY] 
 A. is not a U.S. Purchaser and it (1) is not in the United States; (2) is not a U.S. Person and is not exercising the Warrants for, or on behalf
or benefit of, a U.S. Person or person in the United States; (3) did not execute or deliver the Subscription Form in the United States; (4) agrees not to engage in hedging transactions with regard to the Common Shares prior to the
expiration of the one-year distribution compliance period set forth in Rule 903(b)(3) of Regulation S; (5) acknowledges that the Common Shares issuable upon exercise of the Warrants are “restricted securities” as defined in Rule 144
of the 1933 Act and upon the issuance thereof, and until such time as the same is no longer required under the applicable requirements of the 1933 Act or applicable U.S. state laws and regulations, the certificates representing the Common Shares
will bear a restrictive legend; and (6) acknowledges that the Company shall refuse to register any transfer of the Common Shares not made in accordance with the provisions of Regulation S, pursuant to registration under the 1933 Act, or
pursuant to an available exemption from registration under the 1933 Act; and (B) it holder has not engaged in any “directed selling efforts” (as defined in Regulation S) in the United States. 
 B. the undersigned is delivering a written opinion of United States counsel or a written confirmation from the Company to the effect that the Common
Shares to be delivered upon exercise hereof have been registered under the 1933 Act or are exempt from registration thereunder. 
 C. the
undersigned elects to exercise its the “cashless” exercise right in accordance with the terms hereof and Section 2(c) of the Warrant Certificate with respect to
            Warrants. The undersigned receive that number of Common Shares equal to quotient obtained by dividing [(A-B) (X)] by (A), where: 

 (A) = the daily volume weighted average price of the Common Stock on the Business Day immediately
preceding the date of such election on the trading market on which the Common Stock is then listed or quoted, based on a Business Day from 9:30 a.m. New York City time to 4:02 p.m. New York City time (“VWAP); 
 (B) = the Exercise Price of this Warrant, as adjusted; and 
 (X) = the number of Warrant Shares issuable upon exercise of this Warrant in accordance with the terms of this Warrant by means of a cash exercise rather than a cashless exercise. 
 Unless Box C above is checked, the undersigned holder understands that the certificate representing the Company’s Common Shares is issued upon
exercise of this Warrant will bear a legend restricting the transfer without registration under the U.S. Securities Act and applicable state securities laws substantially the form set forth in Section 2(e)(x) of the Warrant certificate.

 If the holder has checked Box C above, upon exercise of the Warrants pursuant to the cashless exercise provision in Section 2(c) of
the Warrant Certificate, the holder must tender the original warrant certificate; the exercise form and this Notice of Exercise directly to Sterling Mining Company. 
 Name: 
 Please print or type name and address (including postal code) 
 Address: 
 Number of Warrants being
Exercised: 
 DATED this      day of
                    ,          
 Signature guaranteed by: 
 Name of registered
holder (please print) 
  

	
	  

	Signature of or on behalf of registered holder

	
	  

	Office, Title or other Authorization (if holder not an individual)

 ASSIGNMENT FORM 
 (To assign the foregoing warrant, execute 
 this form and supply required information. 
 Do not use this form to exercise the warrant.) 
 FOR VALUE RECEIVED, [            ] all of or [            ] shares of the foregoing Warrant and all rights
evidenced thereby are hereby assigned to 
  

			
	                                       
                                        
               whose address is

	.
	  

	  

	  
 Dated:                     ,             

		
	 Holder’s Signature:
	 	  

		
	Holder’s Address:  	 	  

		
		 	  

 Signature Guaranteed:
                                        
                             
 NOTE: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust
company. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.Form of Subscription Agreement

 Exhibit 10.4 
 STERLING MINING COMPANY 
 SUBSCRIPTION AGREEMENT FOR UNITS 
  

			
	TO:	  	STERLING MINING COMPANY
	AND TO:	  	BLACKMONT CAPITAL INC.
	AND TO:	  	TD SECURITIES INC.
	AND TO:	  	BLACKMONT CAPITAL CORP. AND TD SECURITIES (USA) LLC

 The Subscriber (as hereinafter defined) hereby irrevocably subscribes for and agrees to purchase from Sterling
Mining Company (the “Company”) that number of units of the Company (the “Units”) set out below at a price of US$2.30 per Unit. Each Unit is comprised of one share of the Company’s common stock, par value $0.05
per share (the “Common Shares”) and one Series A Common Share purchase warrant (the “Warrants”). Each Warrant is exercisable for one Common Share at an exercise price of US$4.25 for 24 months following the Closing
Date. The Subscriber agrees to be bound by the terms and conditions set forth in the attached “Terms and Conditions of Subscription for Units” including, without limitation, the representations, warranties and covenants set forth in the
applicable schedules attached thereto. The Subscriber further agrees, without limitation, that the Company and the Agents may rely upon the Subscriber’s representations, warranties and covenants contained in such documents. 
 SUBSCRIPTION AND SUBSCRIBER INFORMATION 
 Please print all information (other than signatures), as applicable, in the space provided below 
  
  

 (Name of Subscriber) 
 Account Reference (if applicable):                             

 By:
                                        
                                      
 Authorized Signature 
  

 (Official Capacity or Title – if the Subscriber is not an individual) 
  

 (Name of individual whose signature
appears above if 
 different than the name of the subscriber printed above.) 
  

 (Subscriber’s Address, including
Municipality and 
 Province/State) 
  

  

 (Telephone Number)                         (Email Address) 
  
 Account Registration Information: 
  

 (Name) 
  

 (Account Reference, if applicable)

  

 (Address, including
Postal or Zip Code) 
 Number and kind of securities of the Company held, directly or 
 indirectly, if any: 
  

  

  

 Number of Units:                                  
       xUS$2.30 
 Aggregate Subscription Cost:
                                      
 (the “Subscription Amount”) 
  
 Please complete if purchasing as Agents or trustee for a principal (beneficial purchaser) (a “Disclosed Principal”) and not purchasing as trustee or Agents
for accounts fully managed by it. 
  

 (Name of Disclosed Principal) 
  

 (Address of Disclosed Principal) 
  

 (Account Reference, if applicable) 
  
 Delivery Instructions as set forth below: 
  

 (Name) 
  

 (Account Reference, if applicable) 
  

 (Address) 
  

 (Contact
Name)                            (Telephone Number) 

 TERMS AND CONDITIONS OF SUBSCRIPTION FOR 
 UNITS 
 ARTICLE 1 - INTERPRETATION 
  

	1.1	Definitions 

 Whenever used in this Subscription
Agreement, unless there is something in the subject matter or context inconsistent therewith, the following words and phrases shall have the respective meanings ascribed to them as follows: 
 “Agents” means Blackmont Capital Inc., TD Securities Inc., Blackmont Capital Corp. and TD Securities (USA) LLC collectively. 
 “Agency Agreement” means the agency agreement to be entered into between the Company on the one hand and the Agents on the other, to be dated as of the
Closing Date, in respect of the Offering. 
 “Blue Sky Laws” means the securities laws of any State. 
 “Business Day” means a day other than a Saturday, Sunday or any other day on which the principal chartered banks located in the City of Toronto are not
open for business. 
 “Closing” shall have the meaning ascribed to such term in Section 4.1. 
 “Closing Date” shall have the meaning ascribed to such term in Section 4.1. 
 “Closing Time” shall have the meaning ascribed to such term in Section 4.1. 
 “Common
Shares” means shares of common stock in the capital of the Company. 
 “Compensation Options” shall have the meaning ascribed to
such term in Section 8.1. 
 “Company” means Sterling Mining Company and includes any successor corporations to or of the Company.

 “Disclosed Principal” shall have the meaning ascribed to such term on the face page of this Subscription Agreement. 
 “Exchange Act” means the United States Securities Exchange Act of 1934, as amended. 
 “Final Receipt” means the final receipt for the Prospectus issued by the securities regulatory authorities in all Jurisdictions. 
 “Insider” means (a) a director or senior officer of the Company (or a subsidiary of the Company), (b) any person who beneficially owns, directly or indirectly, voting securities of the
Company or who exercises control or direction over voting securities of the Company or a combination of both carrying more than 10% of the voting rights attached to all voting securities of the Company for the time being outstanding or (c) an
insider of a person described in (a) or (b) above. 
 “Institutional Accredited Investor” means an “accredited
investor”, as defined in Rule 501(a)(1), (2), (3) and (7) of the U.S. Securities Act. 
 “Jurisdiction” means all provinces
of Canada where the Subscribers reside. 

 “NI 45-106” means National Instrument 45-106 - Prospectus and Registration Exemptions of the
Canadian Securities Administrators. 
 “Offering” means the offering of Units pursuant to this Subscription Agreement and the Agency
Agreement. 
 “person” means any individual (whether acting as an executor, trustee, administrator, legal representative or otherwise),
corporation, firm, partnership, sole proprietorship, syndicate, joint venture, trustee, trust, unincorporated organization or association, and every other form of legal or business entity of whatever nature or kind, and pronouns have a similar
extended meaning. 
 “Prospectus” means the (final) non-offering prospectus of the Company to be filed in the Jurisdictions to qualify the
Common Shares and Warrants comprising the Units and the Units issuable upon the exercise of the Compensation Options. 
 “Public Record”
means the Company’s annual report on Form 10-K for the year ended December 31, 2005, as amended, the quarterly reports filed on Form 10-Q for the quarters ended March 31, 2006, June 30, 2006 and September 30, 2006, as
amended, and the current reports filed on Form 8-K since January 1, 2006. 
 “Registration Statement” means the registration statement
or statements of the Company that may be filed with the SEC in order to register the Registerable Securities. 
 “Registerable Securities”
means the Common Shares comprising part of the Units and the Warrant Shares underlying the Warrants and the Common Shares and Warrants comprising the Units underlying the Compensation Options. 
 “Regulation D” means Regulation D under the U.S. Securities Act. 
 “Regulation S” means Regulation S under the U.S. Securities Act. 
 “Rule 144” means Rule 144 under the U.S.
Securities Act. 
 “Rule 144A” means Rule 144A under the U.S. Securities Act. 
 “SEC” means the United States Securities and Exchange Commission. 
 “Securities Laws”
means, as applicable, the securities laws, regulations, rules, rulings and orders in the Jurisdictions, the applicable policy statements issued by the securities regulators in the Jurisdictions, the securities laws of the United States, any
applicable States and any jurisdictions outside of Canada and the United States, the regulations and rules thereunder and the forms prescribed thereby and the rules of any applicable stock exchange. 
 “State” means any one of the 50 states of the United States of America or the District of Columbia. 
 “Subscriber” means the person purchasing the Units as set out on the face page of this Subscription Agreement and includes, as applicable, each
Disclosed Principal for whom it is acting. 
 “Subscription Agreement” means this subscription agreement (including any schedules hereto)
and any instrument amending this Subscription Agreement. 
 “Subscription Amount” shall have the meaning ascribed to such term on the face
page of this Subscription Agreement. 
 “Term Sheet” means the term sheet attached hereto as Schedule “A”. 
  

 –3– 

 “United States” means the United States of America, its territories and possessions, any State of the
United States and the District of Columbia. 
 “Units” shall have the meaning ascribed to such term on the face page of this Subscription
Agreement. 
 “U.S. Institutional Accredited Investor Status Certificate” means the certificate attached hereto as Schedule “C”
which is required to be completed by a Subscriber who is resident in the United States 
 “U.S. Person” has the meaning set forth in Rule
902(k) of Regulation S under the U.S. Securities Act. 
 “U.S. Securities Act” means the United States Securities Act of 1933, as amended.

 “Warrants” means the common share purchase warrants of the Company that partly comprise the Units, as described on the face page hereof.

 “Warrant Shares” means the Common Shares of the Company issuable upon exercise of the Warrants. 
  

	1.2	Gender and Number 

 Words importing the singular
number only shall include the plural and vice versa, words importing the masculine gender shall include the feminine gender and words importing persons shall include firms and corporations and vice versa. 
  

	1.3	Currency 

 Unless otherwise specified, all dollar
amounts in this Subscription Agreement, including the symbol “$”, are expressed in U.S. dollars. 
  

	1.4	Subdivisions and Headings 

 The division of this
Subscription Agreement into Articles, Sections, Schedules and other subdivisions and the inclusion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Subscription Agreement. The headings
in this Subscription Agreement are not intended to be full or precise descriptions of the text to which they refer. Unless something in the subject matter or context is inconsistent therewith, references herein to an Article, Section, Subsection,
paragraph, clause or Schedule are to the applicable article, section, subsection, paragraph, clause or schedule of this Subscription Agreement. 
 ARTICLE 2 - SCHEDULES 
  

	2.1	Description of Schedules 

 The following are the
Schedules attached to and incorporated in this Subscription Agreement by reference and deemed to be a part hereof: 
  

					
	Schedule “A”	  	-	  	Term Sheet
	Schedule “B”	  	-	  	Accredited Investor Status Certificate
	Schedule “C”	  	-	  	 U.S. Institutional Accredited Investor Status Certificate

  

 –4– 

 ARTICLE 3- SUBSCRIPTION AND DESCRIPTION OF UNITS 
  

	3.1	Subscription for Units 

 The Subscriber hereby
confirms its subscription for and offer to purchase the Units from the Company, on and subject to the terms and conditions set out in this Subscription Agreement, for the Subscription Amount, which is payable as described in Article 4 hereto.

  

	3.2	Creation and Issuance of Units 

 The Units shall be
created and issued by the Company and evidenced by unit certificates to be dated as of the Closing Date. The Term Sheet, a copy of which is attached hereto as Schedule “A”, summarizes the terms of the Units. 
 The Company will file a Prospectus to qualify the Common Shares in Canada within 120 days of Closing. The Company will file a resale Registration
Statement and use its best efforts to have such registration statement declared effective by the SEC within 180 days of Closing to register the resale of the Common Shares and the Common Shares underlying the Warrants. 
 If the Company does not file a Prospectus to qualify the Common Shares in Canada and a resale Registration Statement to register the resale of the Common
Shares and the Common Shares underlying the Warrants in the United States within 180 days of Closing, the Company shall thereafter pay each Subscriber 1% of the Subscription Amount per month to a maximum of 12%, on a pro-rata basis, payable
quarterly. 
  

	3.3	Acceptance and Rejection of Subscription by the Company 

 The Subscriber acknowledges and agrees that the Company reserves the right, in its absolute discretion, to reject this subscription for Units, in whole or in part, at any time prior to the Closing Time. If this subscription is rejected in
whole, any cheques or other forms of payment delivered to the Agents representing the Subscription Amount will be promptly returned to the Subscriber without interest or deduction. If this subscription is accepted only in part, a cheque representing
any refund of the Subscription Amount for that portion of the subscription for the Units which is not accepted, will be promptly delivered to the Subscriber without interest or deduction. 
 ARTICLE 4 - CLOSING 
  

	4.1	Closing 

 Delivery and sale of the Units and payment
of the Subscription Amount will be completed (the “Closing”) at the offices of the Company’s counsel, Cassels Brock & Blackwell LLP in Toronto, Ontario at 10:00 a.m. (Toronto time) (the “Closing Time”)
on January 18, 2007 or such other place, date or time as the Company and the Agents may agree (the “Closing Date”). If, prior to the Closing Time, the terms and conditions contained in this Subscription Agreement and the Agency
Agreement have been complied with to the satisfaction of the Agents, or waived by the Agents, the Agents shall (i) deliver to the Company at the Closing Time all completed Subscription Agreements, including this Subscription Agreement; and
(ii) deliver to the Company the aggregate Subscription Amount for the Units sold pursuant to the Agency Agreement against delivery by the Company of certificates representing the Common Shares and Warrants comprising the Units and such other
documentation as may be required pursuant to the Subscription Agreement and the Agency Agreement. 
 If, prior to the Closing Time, the terms
and conditions contained in this Subscription Agreement (other than delivery by the Company, as applicable, to the Subscriber of certificates representing the Common Shares and Warrants comprising the Units) and the Agency Agreement have not been
complied with to the satisfaction of the Agents, or waived by the Agents, the Agents, the Company and the Subscriber will have no further obligations under this Subscription Agreement. 
  

 –5– 

	4.2	Conditions of Closing 

 The Subscriber acknowledges
and agrees that the obligations of the Company hereunder are conditional on the accuracy of the representations and warranties of the Subscriber contained in this Subscription Agreement as of the date of this Subscription Agreement, and as of the
Closing Time as if made at and as of the Closing Time, and the fulfillment of the following additional conditions as soon as possible and in any event not later than the Closing Time: 
  

	 	(a)	payment by the Subscriber of the Subscription Amount by certified cheque or bank draft in United States dollars payable to one of the Agents; 

  

	 	(b)	the Subscriber having properly completed, signed and delivered this Subscription Agreement to: 

 Blackmont Capital Inc. 
 BCE Place, 181 Bay St. 
 Suite 900 
 Toronto, Ontario M5J 2T3 
 Attention: Chad Williams 
 Fax: (416) 864-9151 
  

	 	(c)	the Subscriber having properly completed, signed and delivered Schedule “B” or Schedule “C” hereto, as applicable: 

  

	4.3	Authorization of the Agents 

 The Subscriber
irrevocably authorizes the Agents in their discretion, to act as the Subscriber’s representative at the Closing, and hereby appoints the Agents, with full power of substitution, as its true and lawful attorney with full power and authority in
the Subscriber’s place and stead: 
  

	 	(a)	to receive certificates representing the Common Shares and Warrants comprising the Units, to execute in the Subscriber’s name and on its behalf all closing receipts and
required documents, to complete and correct any errors or omissions in any form or document provided by the Subscriber, including this Subscription Agreement and the Schedules hereto, in connection with the subscription for the Units and to exercise
any rights of termination contained in the Agency Agreement; 

  

	 	(b)	to approve any opinion, certificate or other document addressed to the Subscriber; 

  

	 	(c)	to extend such time periods and to waive, in whole or in part, any representations, warranties, covenants or conditions for the Subscriber’s benefit contained in this
Subscription Agreement and the Agency Agreement or any ancillary or related document; 

  

	 	(d)	to terminate this Subscription Agreement if any condition precedent is not satisfied, in such manner and on such terms and conditions as the Agents in their sole discretion may
determine; and 

  

	 	(e)	without limiting the generality of the foregoing, to negotiate, settle, execute, deliver and amend the Agency Agreement. 

  

 –6– 

 ARTICLE 5 - REPRESENTATIONS AND WARRANTIES OF 
 THE COMPANY 
  

	5.1	Representations, Warranties and Covenants of the Company 

 The Subscriber shall have the benefit of the representations, warranties and covenants made by the Company to the Agents and set forth in the Agency Agreement. Such representations and warranties shall form an integral part of this
Subscription Agreement and shall survive the closing of the purchase and sale of the Units and shall continue in full force and effect for the benefit of the Subscriber in accordance with the Agency Agreement. 
 The Company will file a Prospectus to qualify the Common Shares in Canada within 120 days of closing. The Company will file a resale Registration
Statement and use its best efforts to have such registration statement declared effective by the SEC within 180 days of Closing to register the resale of the Common Shares and the Common Shares underlying the Warrants. 
 ARTICLE 6 - ACKNOWLEDGEMENTS, COVENANTS, REPRESENTATIONS AND WARRANTIES 
 OF THE SUBSCRIBER 
  

	6.1	Acknowledgements, Representations, Warranties and Covenants of the Subscriber 

 The Subscriber, on its own behalf and, if applicable, on behalf of others for whom it is acting hereunder, hereby represents and warrants to, and covenants with, the Company and the Agents as follows and acknowledges
that the Company and the Agents are relying on such representations and warranties in connection with the transactions contemplated herein: 
  

	 	(a)	The Subscriber certifies that it is resident in the jurisdiction set out on the face page of this Subscription Agreement. Such address was not created and is not used solely for the
purpose of acquiring the Units and the Subscriber was solicited to purchase in such jurisdiction. 

  

	 	(b)	If the Subscriber is not a person in the United States or a U.S. Person, or not purchasing the Units on behalf of a person in the United States or a U.S. Person:

  

	 	(i)	the Subscriber has properly completed, executed and delivered to the Company Schedule “B” hereto (dated as of the date hereof), as applicable and the information contained
therein is true and correct; 

  

	 	(ii)	the representations, warranties and covenants contained in Schedule “B” will be true and correct both as of the date of execution of this Subscription Agreement and as of
the Closing Time; 

  

	 	(iii)	neither the Subscriber nor any Disclosed Principal is a U.S. Person nor subscribing for the Units for the account of a U.S. Person or for resale in the United States and the
Subscriber confirms that the Units have not been offered to the Subscriber in the United States and that this Subscription Agreement has not been signed in the United States; 

  

	 	(iv)	the Subscriber acknowledges that the Common Shares and the Warrants comprising the Units and the Common Shares issuable upon the exercise of the Warrants have not been registered
under the U.S. Securities Act and may not be offered or sold in the United States or to a U.S. Person unless the securities are registered under the U.S. Securities Act and all applicable State securities laws or an exemption from such registration
requirements is available, and further agrees that hedging transactions involving such securities may not be conducted unless in compliance with the U.S. Securities Act; 

  

 –7– 

	 	(v)	the Subscriber and if applicable, the Disclosed Principal for whom the Subscriber is acting, understands that the Company is the seller of the Units and underlying securities and
that, for purposes of Regulation S, a “distributor” is any underwriter, dealer or other person who participates, pursuant to a contractual arrangement in the distribution of securities sold in reliance on Regulation S and that an
“affiliate” is any partner, officer, director or any person directly or indirectly controlling, controlled by or under common control with any person in question. Except as otherwise permitted by Regulation S, the Subscriber and if
applicable, the Disclosed Principal for whom the Subscriber is acting, agrees that it will not, during a one year distribution compliance period, act as a distributor, either directly or through any affiliate, or sell, transfer, hypothecate or
otherwise convey the Units or underlying securities other than to a non-U.S. Person; 

  

	 	(vi)	the Subscriber and if applicable, the Disclosed Principal for whom the Subscriber is acting, acknowledges and understands that in the event the Units or underlying securities are
offered, sold or otherwise transferred by the Subscriber or if applicable, the Disclosed Principal for whom the Subscriber is acting, to a non-U.S. Person prior to the expiration of a one year distribution compliance period, the purchaser or
transferee must agree not to resell such securities except in accordance with the provisions of Regulation S, pursuant to registration under the U.S. Securities Act, or pursuant to an available exemption from registration; and must further agree not
to engage in hedging transactions with regard to such securities unless in compliance with the U.S. Securities Act; and 

  

	 	(vii)	neither the Subscriber nor any Disclosed Principal will offer, sell or otherwise dispose of the Common Shares and Warrants comprising the Units or the Warrant Shares in the United
States or to a U.S. Person unless the Company has consented to such offer, sale or disposition and such offer, sale or disposition is made in accordance with an exemption from the registration requirements under the U.S. Securities Act and the
securities laws of all applicable states of the United States or the SEC has declared effective a registration statement in respect of such securities. 

  

	 	(c)	If the Subscriber is a person in the United States or a U.S. Person, or is purchasing the Units on behalf of a person in the United States or a U.S. Person, the Subscriber:

  

	 	(i)	or each beneficial purchaser as to which the Subscriber exercises sole investment discretion for whom it is purchasing, is acquiring the Units to be held for investment purposes
only and not with a view to resale, distribution or other disposition of the Common Shares and Warrants comprising the Units, and the Warrant Shares, or any portion thereof, and without any present intention of selling, offering to sell or otherwise
disposing of or distributing such securities, or any portion thereof, in any transaction other than a transaction complying with the registration requirements of the U.S. Securities Act and applicable Blue Sky Laws, or pursuant to an exemption
therefrom; 

  

	 	(ii)	 is aware that the Common Shares and Warrants comprising the Units have not been registered under the U.S. Securities Act and the sale contemplated hereby 

  

 –8– 

	 	 
is being made in reliance on a private placement exemption to Institutional Accredited Investors; or each beneficial purchaser as to which the Subscriber
exercises sole investment discretion for whom it is purchasing, satisfies one or more of the categories set out in Schedule “C” hereto; 

  

	 	(iii)	acknowledges that the representations, warranties and covenants contained in Schedule “C” will be true and correct both as of the date of execution of this Subscription
Agreement and as of the Closing Time; 

  

	 	(iv)	is not purchasing the Units as a result of any “general solicitation or general advertising” (as such term is defined in Regulation D), including any advertisement,
article, notice or other communication published in any newspaper, magazine, or similar media or broadcast over television or radio, or any seminar or meeting where the attendees have been invited by general solicitation or general advertising;

  

	 	(v)	understands that, unless the Registration Statement has become effective, the Warrants comprising part of the Units may not be sold or transferred in the United States or by or on
behalf of a U.S. Person unless an exemption is available from the registration requirements of the U.S. Securities Act and applicable state securities laws; 

  

	 	(vi)	acknowledges that any person who exercises a Warrant will be required to provide to the Company one of the following: 

  

	 	(A)	a written certification that the holder (1) at the time of exercise of the Warrant is not in the United States, (2) is not a U.S. Person and is not exercising the Warrant
on behalf of a U.S. Person or a person in the United States, and (3) did not execute or deliver the exercise form for the Warrant in the United States; 

  

	 	(B)	a written certification that the holder (1) purchased the Unit, from which the Warrant was converted, directly from the Company pursuant to a written Subscription Agreement for
the purchase of the Units, (2) is exercising the Warrant solely for its own account and not on behalf of any other person, and (3) is an Institutional Accredited Investor, both on the date the Units were purchased by the Subscriber from
the Company and on the date of the exercise of the Warrant; or 

  

	 	(C)	a written opinion of counsel of recognized standing in form and substance satisfactory to the Company to the effect that an exemption from the registration requirements of the U.S.
Securities Act and applicable state securities laws is available for the issuance of the Warrant Shares; 

 and understands
that unless the holder provides a written certification pursuant to paragraph (c)(vii)(A) above, the certificates representing the Warrant Shares issued upon exercise of the Warrants prior to the applicable Registration Statement becoming effective
will bear a legend restricting transfer without registration under the U.S. Securities Act and applicable state securities laws unless an exemption from registration is available; 
  

 –9– 

	 	(vii)	understands that if it decides to offer, sell, pledge or otherwise transfer the Units, and, prior to the applicable Registration Statement becoming effective, the Common Shares
comprising the Units and the Warrant Shares, such securities may be offered, sold or otherwise transferred only: (A) to the Company; (B) in compliance with Rule 904 under Regulation S, (C) in accordance with Rule 144 or Rule 144A
under the U.S. Securities Act, if available, and in compliance with applicable local laws and regulations, or (D) in a transaction that does not otherwise require registration under the U.S. Securities Act or any applicable state securities
laws if an opinion of counsel, of recognized standing reasonably satisfactory to the Company, has been provided to the Company to that effect; and 

  

	 	(viii)	consents to the Company making a notation on its records or giving instructions to any transfer agent of the Company in order to implement the restrictions on transfers set forth
and described herein, and the Subscriber understands and acknowledges that the Company may instruct the registrar and transfer agent of the Company not to record a transfer without first being notified by the Company that it is satisfied that such
transfer is exempt from or not subject to registration under the U.S. Securities Act. 

  

	 	(d)	If the Subscriber or any Disclosed Principal is not a person described in paragraphs 6.1(b) or 6.1(c) above, the subscription for the Units by the Subscriber does not contravene any
of the applicable securities legislation in the jurisdiction in which the Subscriber resides and does not give rise to any obligation of the Company or the Agents to prepare and file a prospectus or similar document or to register the Units or to be
registered with, or to file any report or notice with, any governmental or regulatory authority. 

  

	 	(e)	The execution and delivery of this Subscription Agreement, the performance and compliance with the terms hereof, the subscription for the Units and the completion of the
transactions described herein by the Subscriber will not result in any material breach of, or be in conflict with, or constitute a material default under, or create a state of facts that, after notice or lapse of time, or both, would constitute a
material default under any term or provision of the constating documents, by-laws or resolutions of the Subscriber, the Securities Laws or any other laws applicable to the Subscriber, any agreement to which the Subscriber is a party, or any
judgment, decree, order, statute, rule or regulation applicable to the Subscriber. 

  

	 	(f)	The Subscriber is subscribing for the Units as principal for its own account and not for the benefit of any other person (within the meaning of applicable Securities Laws). If it is
subscribing as Agents for a Disclosed Principal, it has disclosed the name of the Disclosed Principal on the face page of this Subscription Agreement and acknowledges that the Company may be required by law to disclose to certain regulatory
authorities the identity of each Disclosed Principal for whom the Subscriber is acting. 

  

	 	(g)	In the case of a subscription for the Units by the Subscriber acting as trustee or Agents for a fully managed account or as Agents for a Disclosed Principal, the Subscriber is duly
authorized to execute and deliver this Subscription Agreement and all other necessary documentation in connection with such subscription on behalf of the fully managed account or Disclosed Principal, as applicable and this Subscription Agreement has
been duly authorized, executed and delivered by or on behalf of and constitutes a legal, valid and binding agreement of, the fully managed account or Disclosed Principal, as applicable. 

  

 –10– 

	 	(h)	In the case of a subscription for the Units by the Subscriber acting as principal, this Subscription Agreement has been duly authorized, executed and delivered by, and constitutes a
legal, valid and binding agreement of, the Subscriber. This Subscription Agreement is enforceable in accordance with its terms against the Subscriber. 

  

	 	(i)	If the Subscriber is: 

  

	 	(i)	a corporation, the Subscriber is duly incorporated and is validly subsisting under the laws of its jurisdiction of incorporation and has all requisite legal and corporate power and
authority to execute and deliver this Subscription Agreement, to subscribe for the Units as contemplated herein and to carry out and perform its obligations under the terms of this Subscription Agreement; 

  

	 	(ii)	a partnership, syndicate or other form of unincorporated organization, the Subscriber has the necessary legal capacity and authority to execute and deliver this Subscription
Agreement and to observe and perform its covenants and obligations hereunder and has obtained all necessary approvals in respect thereof; or 

  

	 	(iii)	an individual, the Subscriber is of the full age of majority and is legally competent to execute this Subscription Agreement and to observe and perform his or her covenants and
obligations hereunder. 

  

	 	(j)	Other than the Agents, there is no person acting or purporting to act in connection with the transactions contemplated herein who is entitled to any brokerage or finder’s fee.
If any person establishes a claim that any fee or other compensation is payable in connection with this subscription for the Units, the Subscriber covenants to indemnify and hold harmless the Company and the Agents with respect thereto and with
respect to all costs reasonably incurred in the defence thereof. 

  

	 	(k)	The Subscriber is not, with respect to the Company or any of its affiliates, a “control person” as defined under the Securities Laws and the purchase of the Units
hereunder and the exercise or deemed exercise of the Units will not result in the Subscriber becoming a control person. 

  

	 	(l)	If required by applicable Securities Laws or the Company, the Subscriber will execute, deliver and file, or assist the Company in filing, such reports, undertakings and other
documents with respect to the issue and/or sale of the Units as may be required by any securities commission, stock exchange or other regulatory authority. 

  

	 	(m)	The Subscriber has been advised to consult its own legal advisors with respect to trading in the Common Shares and Warrants comprising the Units and the Warrant Shares and with
respect to the resale restrictions imposed by the Securities Laws of the jurisdiction in which the Subscriber resides and other applicable securities laws, and acknowledges that no representation has been made respecting the applicable hold periods
imposed by the Securities Laws or other resale restrictions applicable to such securities that restrict the ability of the Subscriber (or others for whom it is contracting hereunder) to resell such securities, that the Subscriber (or others for whom
it is contracting hereunder) is solely responsible to find out what these restrictions are and the Subscriber is solely responsible (and neither the Company nor the Agents are in any way responsible) for compliance with applicable resale
restrictions and the Subscriber is aware that it (or beneficial persons for whom it is contracting hereunder) may not be able to resell such securities except in accordance with limited exemptions under the Securities Laws and other applicable
securities laws. 

  

 –11– 

	 	(n)	The Subscriber has not received or been provided with a prospectus, registration statement or offering memorandum, within the meaning of the Securities Laws, and the
Subscriber’s decision to subscribe for the Units was not based upon, and the Subscriber has not relied upon, any verbal or written representations as to facts made by or on behalf of the Company or the Agents. The Subscriber has had access to
and has reviewed, to the extent it deems necessary, the Public Record and the Subscriber’s decision to subscribe for the Units was based solely upon this Subscription Agreement, the Term Sheet attached hereto as Schedule “A” and the
Public Record (any such information having been obtained by the Subscriber without independent investigation or verification by the Agents). 

  

	 	(o)	The Subscriber is not purchasing Units with knowledge of material information concerning the Company that has not been generally disclosed. 

  

	 	(p)	No person has made any written or oral representations: 

  

	 	(i)	that any person will resell or repurchase the Common Shares, Warrants comprising the Units or the Warrant Shares; 

  

	 	(ii)	that any person will refund the Subscription Amount; or 

  

	 	(iii)	as to the future price or value of the Units or common shares in the capital of the Company. 

  

	 	(q)	There are risks associated with the purchase of and investment in the Units and the Subscriber has such knowledge and experience that it is capable of evaluating the merits and
risks of an investment in the Common Shares, Warrants and Warrant Shares and fully understands the restrictions on resale of the Common Shares, Warrants and Warrant Shares and is capable of bearing the economic risk of the investment.

  

	 	(r)	The funds representing the Subscription Amount that will be advanced by the Subscriber to the Company hereunder, as applicable, will not represent proceeds of crime for the purposes
of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (the “PCMLTFA”) and the Subscriber acknowledges that the Company may in the future be required by law to disclose the Subscriber’s name and
other information relating to this Subscription Agreement and the Subscriber’s subscription hereunder, on a confidential basis, pursuant to the PCMLTFA. To the best of its knowledge (a) none of the Subscription Amount to be provided by the
Subscriber (i) has been or will be derived from or related to any activity that is deemed criminal under the law of Canada, the United States of America, or any other jurisdiction, or (ii) is being tendered on behalf of a person or entity
who has not been identified to the Subscriber, and (b) it shall promptly notify the Company if the Subscriber discovers that any of such representations ceases to be true, and to provide the Company with appropriate information in connection
therewith. 

  

	6.2	Additional Acknowledgments and Covenants of the Subscriber 

 The Subscriber, on its own behalf and, if applicable, on behalf of others for whom it is acting hereunder, hereby acknowledges, covenants and agrees as follows: 
  

 –12– 

	 	(a)	It has received and reviewed a copy of the Term Sheet setting out the principal terms of the Offering. 

  

	 	(b)	No securities commission, agency, governmental authority, regulatory body, stock exchange or other regulatory body or similar regulatory authority has reviewed or passed on the
merits of the Units, the Common Shares, Warrants, or Warrant Shares. 

  

	 	(c)	The Units shall be subject to statutory resale restrictions under the securities laws of the jurisdiction in which the Subscriber resides and under other applicable securities laws,
and the Subscriber covenants that it will not resell the Common Shares or Warrants comprising the Units except in compliance with such laws and the Subscriber acknowledges that it is solely responsible (and neither the Company nor the Agents are in
any way responsible) for such compliance. 

  

	 	(d)	The ability to transfer the Units is limited by, among other things, applicable Securities Laws and the Company shall refuse, and shall instruct its transfer agents to refuse, to
register any transfer that does not comply with the Securities Laws. 

  

	 	(e)	The certificates representing the Common Shares, Warrants and Warrant Shares, if issued prior to receipt of the Final Receipt, will bear a legend substantially in the following form
and with the necessary information inserted: 

 “UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS
SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS FOUR MONTHS AND ONE DAY AFTER THE LATER OF (i) [THE CLOSING DATE]; AND (ii) THE DATE THAT THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY.” 

The certificates representing the Common Shares, Warrants and Warrant Shares will bear a legend substantially in the following form: 
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND SUCH LAWS COVERING SUCH SECURITIES, OR THE
COMPANY RECEIVES AN OPINION OF COUNSEL ACCEPTABLE TO THE COMPANY STATING THAT SUCH OFFER, SALE, PLEDGE OR OTHER TRANSFER IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF THE SECURITIES ACT AND SUCH LAWS.” 

 

	 	(f)	The Agents and/or their directors, officers, employees, agents and representatives assume no responsibility or liability of any nature whatsoever for the accuracy or adequacy of any
such publicly available information concerning the Company or as to whether all information concerning the Company that is required to be disclosed or filed by the Company under the Securities Laws has been so disclosed or filed.

  

	 	(g)	 The Company and the Agents are relying on the representations, warranties and covenants contained herein and in the applicable Schedules attached hereto to
determine the Subscriber’s eligibility to subscribe for the Units under applicable 

  

 –13– 

	 	 
Securities Laws and the Subscriber agrees to indemnify the Company, the Agents and each of their directors, officers and agents against all losses, claims,
costs, expenses, damages or liabilities that any of them may suffer or incur as a result of or arising from reliance thereon. The Subscriber undertakes to immediately notify the Company of any change in any statement or other information relating to
the Subscriber set forth in such applicable Schedules which takes place prior to the Closing Time. 

  

	 	(h)	The Company is relying on an exemption from the requirement to provide the Subscriber with a prospectus or registration statement under the Securities Laws and, as a consequence of
acquiring the Units pursuant to such exemption, certain protections, rights and remedies provided by the Securities Laws, including statutory rights of rescission or damages, will not be available to the Subscriber. 

  

	 	(i)	The Subscriber is responsible for obtaining such legal and tax advice as it considers appropriate in connection with the execution, delivery and performance of this Subscription
Agreement and the transactions contemplated under this Subscription Agreement. 

  

	 	(j)	There is no government guaranty or insurance covering the Warrants or Common Shares. 

  

	 	(k)	There are risks associated with the purchase of the Units and the Subscriber may lose his, her or its entire investment. 

  

	 	(l)	This Subscription Agreement and the schedules hereto require the Subscriber to provide certain personal information to the Company. Such information is being collected by the
Company for the purposes of completing the Offering, which includes, without limitation, determining the Subscriber’s eligibility to purchase the Units under the Securities Laws and other applicable securities laws, preparing and registering
certificates representing Units to be issued to the Subscriber and completing filings required by any stock exchange or securities regulatory authority. The Subscriber’s personal information may be disclosed by the Company, the Agents, and
their respective advisors to: (a) stock exchanges or securities regulatory authorities, (b) the tax authorities, and (c) any of the other parties involved in the Offering, including legal counsel and may be included in record books in
connection with the Offering. By executing this Subscription Agreement, the Subscriber is deemed to be consenting to the foregoing collection, use and disclosure of the Subscriber’s personal information. The Subscriber also consents to the
filing of copies or originals of any of the Subscriber’s documents described in section 6.1(l) hereof as may be required to be filed with any stock exchange or securities regulatory authority in connection with the transactions contemplated
hereby. The Subscriber represents and warrants that it has the authority to provide the consents and acknowledgements set out in this paragraph on behalf of each Disclosed Principal. 

  

	 	(m)	If the Company obtains approval for the listing of the Common Shares on a Canadian stock exchange, prior to the effectiveness of the Registration Statement, such securities may
trade on such Canadian stock exchange on a restricted basis. No Canadian broker-dealer would be permitted, under the U.S. Securities Act, to execute a transaction in those securities on a Canadian stock exchange if that member knows that the
purchaser is in the United States or a U.S. Person or is acting for the account or benefit of a U.S. Person. Also, the Canadian broker-dealer must make reasonable efforts to ascertain whether a purchaser is in the United States or is a U.S. Person
or is acting for the account or benefit of a U.S. Person and implement measures designed to assure reasonable compliance with this requirement. 

  

 –14– 

	 	(n)	If the Subscriber is resident in or otherwise subject to the Securities Laws applicable in the Province of Ontario, the information provided by the Subscriber on the face page of
this Subscription Agreement identifying the name, address and telephone number of the Subscriber, the number of Units being purchased hereunder and the total purchase price as well as the Closing Date and the exemption that the Company is relying on
in selling the Units to the Subscriber will be disclosed to the Ontario Securities Commission, and such information is being indirectly collected by the Ontario Securities Commission under the authority granted to it under securities legislation.
This information is being collected for the purposes of the administration and enforcement of the securities legislation of the Province of Ontario. Each Subscriber (for certainty including each Disclosed Principal) hereby authorizes the indirect
collection of such information by the Ontario Securities Commission. In the event the Subscriber has any questions with respect to the indirect collection of such information by the Ontario Securities Commission, the Subscriber should contact the
Ontario Securities Commission, Administrative Assistant to the Director of Corporate Finance at (416) 593-8086 or in person or writing at Suite 1900, Box 55, 20 Queen Street West, Toronto, Ontario M5H 3S8. 

 ARTICLE 7 - SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS 
  

	7.1	Survival of Representations, Warranties and Covenants of the Company 

 The representations, warranties and covenants of the Company contained in this Subscription Agreement shall survive the Closing and, notwithstanding such Closing or any investigation made by or on behalf of the
Subscriber with respect thereto, shall continue in full force and effect for the benefit of the Subscriber and the Agents. 
  

	7.2	Survival of Representations, Warranties and Covenants of the Subscriber 

 The representations, warranties and covenants of the Subscriber contained in this Subscription Agreement shall survive the Closing and, notwithstanding such Closing or any investigation made by or on behalf of the
Company or the Agents with respect thereto and notwithstanding any subsequent disposition by the Subscriber of any of the Common Shares and Warrants comprising the Units, or the Warrant Shares issuable upon exercise of the Warrants, and shall
continue in full force and effect for the benefit of the Company and the Agents. 
 ARTICLE 8 - COMMISSION 
  

	8.1	Commission to the Agents 

 The Subscriber
understands that, in connection with the issue and sale of the Units pursuant to the Offering, the Agents will receive from the Company on Closing, a cash commission equal to 7.0% of the gross proceeds from the Offering. The Company will also issue
to the Agents compensation options (the “Compensation Options”) exercisable, without payment of additional consideration, to acquire Units in the amount that is equal to 7% of the number of Securities sold pursuant to the Offering.
Each Compensation Option will entitle the holder to acquire one Unit for US$2.30 for a period of eighteen months following Closing. 
  

 –15– 

 ARTICLE 9 - MISCELLANEOUS 
  

	9.1	Further Assurances 

 Each of the parties hereto upon
the request of each of the other parties hereto, whether before or after the Closing Time, shall do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered all such further acts, deeds, documents, assignments,
transfers, conveyances, powers of attorney and assurances as may reasonably be necessary or desirable to complete the transactions contemplated herein. 
  

	9.2	Notices 

  

	 	(a)	Any notice, direction or other instrument required or permitted to be given to any party hereto shall be in writing and shall be sufficiently given if delivered personally, or
transmitted by facsimile tested prior to transmission to such party, as follows: 

  

	 	(i)	in the case of the Company, to: 

 Sterling Mining Company
2201 Government Way 
 Suite E, Coeur d’Alene ID 
 83814 USA 
 Attention: Raymond De Motte 
 Fax: (208) 676-1629 
 with a copy to
(which shall not constitute notice): 
 Cassels Brock & Blackwell LLP 
 2100 Scotia Plaza 
 40 King Street West

 Toronto, Ontario M5H 3C2 
 Attention: David Poynton 
 Fax: (416) 644-9348 
 and to: 
 Parsons Behle & Latimer 
 201 South Main Street 
 Suite 1800

 Salt Lake City, Utah 84111 
 Attention: Mark Lehman 
 Fax: (801) 536-6111 
  

	 	(ii)	in the case of the Subscriber, at the address specified on the face page hereof, with a copy to the Agents at: 

 Blackmont Capital Inc. 
 BCE Place, 181 Bay
St. 
 Suite 900 
 Toronto,
Ontario M5J 2T3 
 Attention: Chad Williams 
 Fax: (416) 864-9151 
  

 –16– 

 with a copy to (which shall not constitute notice): 
 TD Securities Inc. 
 Toronto-Dominion Tower

 66 Wellington Street W., 9th Floor 
 Toronto, Ontario M5K 1A2 
 Attention: Gorden Glen 
 Fax: (416) 983-3176 
 and to: 
 Fraser Milner Casgrain LLP

 1 First Canadian Place 
 39th Floor 
 100 King Street West 
 Toronto, Ontario M5X 1B2 
 Attention: John Sabine 
 Fax:
(416) 863-4374 
 and to: 
 Dorsey & Whitney LLP 
 Canada Trust Tower, BCE Place 
 Suite 4310 
 161 Bay Street 
 Toronto, ON M5J 2S1 
 Attention: Gil
Cornblum 
 Fax: (416) 367-7371 
  

	 	(b)	Any such notice, direction or other instrument, if delivered personally, shall be deemed to have been given and received on the day on which it was delivered, provided that if such
day is not a Business Day then the notice, direction or other instrument shall be deemed to have been given and received on the first Business Day following such day and if transmitted by fax, shall be deemed to have been given and received on the
day of its transmission, provided that if such day is not a Business Day or if it is transmitted or received after the end of normal business hours then the notice, direction or other instrument shall be deemed to have been given and received on the
first Business Day following the day of such transmission. 

  

	 	(c)	Any party hereto may change its address for service from time to time by notice given to each of the other parties hereto in accordance with the foregoing provisions.

  

	9.3	Time of the Essence 

 Time shall be of the essence
of this Subscription Agreement and every part hereof. 
  

 –17– 

	9.4	Costs and Expenses 

 All costs and expenses
(including, without limitation, the fees and disbursements of legal counsel) incurred in connection with this Subscription Agreement and the transactions herein contemplated shall be paid and borne by the party incurring such costs and expenses.

  

	9.5	Applicable Law 

 This Subscription Agreement shall
be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of the Province of Ontario and the laws of Canada applicable therein. Any and all disputes arising under this Subscription Agreement, whether
as to interpretation, performance or otherwise, shall be subject to the non-exclusive jurisdiction of the courts of the Province of Ontario and each of the parties hereto hereby irrevocably attorns to the jurisdiction of the courts of such province.

  

	9.6	Entire Agreement 

 This Subscription Agreement,
including the Schedules hereto, constitutes the entire agreement between the parties with respect to the transactions contemplated herein and cancels and supersedes any prior understandings, agreements, negotiations and discussions between the
parties. There are no representations, warranties, terms, conditions, undertakings or collateral agreements or understandings, express or implied, between the parties hereto other than those expressly set forth in this Subscription Agreement or in
any such agreement, certificate, affidavit, statutory declaration or other document as aforesaid. This Subscription Agreement may not be amended or modified in any respect except by written instrument executed by each of the parties hereto.

  

	9.7	Counterparts 

 This Subscription Agreement may be
executed in two or more counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same Subscription Agreement. Counterparts may be delivered either in original or faxed form and the parties
adopt any signature received by a receiving fax machine as original signatures of the parties. 
  

	9.8	Assignment 

 This Subscription Agreement may not be
assigned by either party except with the prior written consent of the other parties hereto. 
  

	9.9	Enurement 

 This Subscription Agreement shall enure
to the benefit of and be binding upon the parties hereto and their respective heirs, executors, successors (including any successor by reason of the amalgamation or merger of any party), administrators and permitted assigns. 
  

 –18– 

	9.10	Language 

 It is the express wish of the Subscriber
that the Subscription Agreement and any related documentation be drawn up in English. Il est de la volonté expressed du souscripteur que la convention de souscription ainsi que tout document connexe soient rédigés en langue
anglaise. 
 The Company hereby accepts the subscription for Units as set forth on the face page of this Subscription Agreement on the terms
and conditions contained in the Subscription Agreement (including all applicable schedules) this          day of
                    , 2007. 
  

			
	STERLING MINING COMPANY
		
	Per:	 	 
		 	Authorized Signing Officer

  

 –19– 

 SCHEDULE A – STERLING MINING COMPANY 
 UNIT TERM SHEET 
  

			
	Issuer:	 	Sterling Mining Company (“Sterling” or “Company”)
		
	Offering:	 	3,.695,000 Units.Each Unit will consist of one Common Share and one Common Share purchase warrant.
		
	Warrants:	 	Each Warrant is exercisable into one Common Share of the Company at US$4.25 for 24 months following Closing.
		
	Price:	 	US$2.30 per unit
		
	Amount:	 	US$8,498,500
		
	Use of Proceeds:	 	The proceeds from the sale of the Units will be used to develop the Company’s Sunshine Mine in Idaho, working capital and general corporate purposes.
		
	Type of Offering:	 	Best efforts private placement.
		
	Minimum
Subscription:	 	$10,000 or such other amount determined at the sole discretion of the Agent.
		
	Selling
Jurisdictions:	 	The Private Placement will be marketed to qualified investors in each of the Provinces of Ontario, Manitoba, Québec, Alberta, Nova Scotia, British Columbia and Saskatchewan and the Units
only may also be offered in certain foreign jurisdictions under applicable exemptions and in the United States on a private placement basis to institutions that are “accredited investors” (as contemplated in Regulation D under the US
Securities Act), as the Company and the Agent shall mutually agree . Subscribers in the various provinces of Canada must be “accredited investors” (as defined under applicable securities laws, rules or policies in such
provinces).
		
	Resale
Restrictions:	 	The Company is not currently a reporting issuer in Canada and the four month seasoning period (pursuant to Multilateral Instrument 45-102) will not commence until the Company has become a
reporting issuer in Ontario. Resales in the United States may be made pursuant to Rule 144. The Company has agreed to file one or more resale registration statements with respect to the Common Shares and the Common Shares underlying the
Warrants.
		
	Liquidity
Incentive:	 	If the Company does not file a Non-Offering Prospectus to qualify the Common Shares in Canada and a resale Registration Statement to register the resale of the Common Shares and the Common
Shares underlying the Warrants in the United States is not declared effective, within 180 days of Closing the Company shall pay each subscriber 1% of the total subscription amount paid by each subscriber to a maximum of 12%, on a pro-rata basis,
payable quarterly.
		
	Listing:	 	The Company is an SEC registrant and its Common Shares are quoted on the OTC Bulletin Board under the symbol “SRLM”. The Company shall make application to the TSX Exchange or the TSX
Venture Exchange to list the Common Shares issuable hereunder on the TSX Exchange. The Warrants will not be listed on any exchange.

  

 –20– 

			
		
		  	The Company will file a Non-Offering Prospectus to qualify the Common Shares in Canada within 120 days of Closing. The Company will file a resale Registration Statement and use its best efforts
to have such registration statement declared effective by the SEC within 180 days of Closing to register the resale of the Common Shares and the Common Shares underlying the Warrants.
		
	Eligibility:	  	Counsel for the Company and the Agents have not expressed any opinion regarding the eligibility of the Units, however, investors are cautioned that the Units will probably not be eligible for
RRSPs, RRIFs, RESPs, and DPSPs.
	Commission:	  	Cash commission of 7% of the gross proceeds raised pursuant to the Private Placement. The Agent will also be granted non-transferable options (“Agents’ Compensation Options”) to
acquire Units in the amount that is equal to 7% of the number of Securities sold pursuant to the Private Placement. Each Agents’ Compensation Option will entitle the holder to acquire one Unit at US$2.30 per Unit for a period of 18 months
following Closing.
		
	Closing:	  	On or about January 18, 2007
		
	Lead Agents:	  	Blackmont Capital Inc., TD Securities Inc.

  

 –21– 

 SCHEDULE “B” 
 ACCREDITED INVESTOR STATUS CERTIFICATE 
 TO BE COMPLETED BY BRITISH COLUMBIA, ALBERTA,
SASKATCHEWAN, MANITOBA, ONTARIO, NEWFOUNDLAND AND LABRADOR, NOVA SCOTIA, NEW BRUNSWICK AND PRINCE EDWARD ISLAND ACCREDITED INVESTORS 
 The categories
listed herein contain certain specifically defined terms. If you are unsure as to the meanings of those terms, or are unsure as to the applicability of any category below, please contact your broker and/or legal advisor before completing this
certificate. 
  

	TO:	Sterling Mining Company (the “Company”) 

 In
connection with the purchase by the undersigned Subscriber of the Units, the Subscriber, on its own behalf and on behalf of each Disclosed Principal for whom the Subscriber is acting (collectively, the “Subscriber”), hereby
represents, warrants, covenants and certifies to the Company (and acknowledges that the Company and its counsel are relying thereon) that: 
  

			
		
		  	 (a)    the Subscriber is resident in or otherwise subject to the securities laws of one of the provinces of British
Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick or Prince Edward Island;

		
		  	 (b)    the Subscriber is purchasing the Units as principal for its own account and not for the benefit of any other
person;

		
		  	 (c)    the Subscriber is an “accredited investor” within the meaning of NI 45-106 on the basis that the
undersigned fits within one of the categories of an “accredited investor” reproduced below beside which the undersigned has indicated the undersigned belongs to such category;

		
		  	 (d)    the Subscriber was not created or used solely to purchase or hold securities as an accredited investor as described
in paragraph (m) below; and

		
		  	 (e)    upon execution of this Schedule B by the Subscriber, this Schedule B shall be incorporated into and form a part
of the Subscription Agreement.

	
	(PLEASE CHECK THE BOX OF THE APPLICABLE CATEGORY OF ACCREDITED INVESTOR)
		
	 ̈	  	 (a)    a Canadian financial institution, or a Schedule III bank;

		
	 ̈	  	 (b)    the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act
(Canada);

		
	 ̈	  	 (c)    a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities
of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary;

		
	 ̈	  	 (d)    a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer, other
than a person registered solely as a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador);

		
	 ̈	  	 (e)    an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as
a representative of a person referred to in paragraph (d);

		
	 ̈	  	 (f)     the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned
entity of the Government of Canada or a jurisdiction of Canada;

  

 –22– 

			
	  ̈
	  	 (g)    a municipality, public board or commission in Canada and a metropolitan community, school board, the
Comité de gestion de la taxe scolaire de l’île de Montréal or an intermunicipal management board in Québec;

		
	  ̈
	  	 (h)    any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction,
or any agency of that government;

		
	  ̈
	  	 (i)     a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions
(Canada) or a pension commission or similar regulatory authority of a jurisdiction of Canada;

		
	  ̈
	  	 (j)     an individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial
assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000;

		
	  ̈
	  	 (k)    an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or
whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar
year;

		
	  ̈
	  	 (l)     an individual who, either alone or with a spouse, has net assets of at least
$5,000,000;

		
	  ̈
	  	 (m)   a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most
recently prepared financial statements;

		
	  ̈
	  	 (n)    an investment fund that distributes or has distributed its securities only to (i) a person that is or was an
accredited investor at the time of the distribution, (ii) a person that acquires or acquired securities in the circumstances referred to in sections 2.10 [Minimum amount investment] and 2.19 [Additional investment in investment funds]
of NI 45-106, or (iii) a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 [Investment fund reinvestment] of NI 45-106;

		
	  ̈
	  	 (o)    an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada
for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt;

		
	  ̈
	  	 (p)    a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan
Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be;

		
	  ̈
	  	 (q)    a person acting on behalf of a fully managed account managed by that person, if that person (i) is registered or
authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction, and (ii) in Ontario, is purchasing a security that is not a security of an investment
fund;

		
	  ̈
	  	 (r)     a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained
advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded;

		
	  ̈
	  	 (s)    an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs
(a) to (d) or paragraph (i) in form and function;

		
	  ̈
	  	 (t)     a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the
voting securities required by law to be owned by directors, are persons that are accredited investors;

  

 –23– 

			
	  ̈
	  	 (u)    an investment fund that is advised by a person registered as an adviser or a person that is exempt from
registration as an adviser, or

	  ̈
	  	 (v)    a person that is recognized or designated by the securities regulatory authority or, except in Ontario and
Québec, the regulator as (i) an accredited investor, or (ii) an exempt purchaser in Alberta or British Columbia.

 For the purposes hereof, the following definitions are included for convenience: 
  

	 	(a)	“Canadian financial institution” means (i) an association governed by the Cooperative Credit Associations Act (Canada) or a central cooperative credit society
for which an order has been made under section 473(1) of that Act, or (ii) a bank, loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative, or league
that, in each case, is authorized by an enactment of Canada or a jurisdiction of Canada to carry on business in Canada or a jurisdiction of Canada; 

  

	 	(b)	“control person” has the same meaning as in securities legislation except in Manitoba, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario,
Prince Edward Island and Québec where control person means any person that holds or is one of a combination of persons that holds (i) a sufficient number of any of the securities of an issuer so as to affect materially the control of the
issuer, or (ii) more than 20% of the outstanding voting securities of an issuer except where there is evidence showing that the holding of those securities does not affect materially the control of the issuer; 

  

	 	(c)	“entity” means a company, syndicate, partnership, trust or unincorporated organization; 

  

	 	(d)	“financial assets” means cash, securities, or any a contract of insurance, a deposit or an evidence of a deposit that is not a security for the purposes of securities
legislation; 

  

	 	(e)	“founder” means, in respect of an issuer, a person who, (i) acting alone, in conjunction, or in concert with one or more persons, directly or indirectly, takes the
initiative in founding, organizing or substantially reorganizing the business of the issuer, and (ii) at the time of the trade is actively involved in the business of the issuer; 

  

	 	(f)	“fully managed account” means an account of a client for which a person makes the investment decisions if that person has full discretion to trade in securities for the
account without requiring the client’s express consent to a transaction; 

  

	 	(g)	“investment fund” means a mutual fund or a non-redeemable investment fund, and, for greater certainty in British Columbia, includes an employee venture capital corporation
that does not have a restricted constitution, and is registered under Part 2 of the Employee Investment Act (British Columbia), R.S.B.C. 1996 c. 112, and whose business objective is making multiple investments and a venture capital
corporation registered under Part 1 of the Small Business Venture Capital Act (British Columbia), R.S.B.C. 1996 c. 429 whose business objective is making multiple investments; 

  

	 	(h)	“mutual fund” means an issuer whose primary purpose is to invest money provided by its security holders and whose securities entitle the holder to receive on demand, or
within a specified period after demand, an amount computed by reference to the value of a proportionate interest in the whole or in part of the net assets, including a separate fund or trust account, of the issuer; 

  

	 	(i)	“non-redeemable investment fund” means an issuer, 

 (A) whose primary purpose is to invest money provided by its securityholders, 
 (B) that does not invest, 
 (i) for the purpose of exercising or seeking to exercise control of an issuer, other than an issuer that is a mutual fund or a non-redeemable investment
fund, or 
  

 –24– 

 (ii) for the purpose of being actively involved in the management of any issuer in which it invests,
other than an issuer that is a mutual fund or a non-redeemable investment fund, and 
 (C) that is not a mutual fund; 
  

	 	(j)	“related liabilities” means liabilities incurred or assumed for the purpose of financing the acquisition or ownership of financial assets and liabilities that are secured
by financial assets; 

  

	 	(k)	“Schedule III bank” means an authorized foreign bank named in Schedule III of the Bank Act (Canada); 

  

	 	(l)	“spouse” means an individual who (i) is married to another individual and is not living separate and apart within the meaning of the Divorce Act (Canada), from
the other individual, (ii) is living with another individual in a marriage-like relationship, including a marriage-like relationship between individuals of the same gender, or (iii) in Alberta, is an individual referred to in paragraph
(i) or (ii), or is an adult interdependent partner within the meaning of the Adult Interdependent Relationships Act (Alberta); and 

  

	 	(m)	“subsidiary” means an issuer that is controlled directly or indirectly by another issuer and includes a subsidiary of that subsidiary. 

 In NI 45-106 a person or company is an affiliate of another person or company if one of them is a subsidiary of the other, or if each of them is controlled by the same
person. 
 In NI 45-106 a person (first person) is considered to control another person (second person) if (a) the first person, directly or indirectly,
beneficially owns or exercises control or direction over securities of the second person carrying votes which, if exercised, would entitle the first person to elect a majority of the directors of the second person, unless that first person holds the
voting securities only to secure an obligation, (b) the second person is a partnership, other than a limited partnership, and the first person holds more than 50% of the interests of the partnership, or (c) the second person is a limited
partnership and the general partner of the limited partnership is the first person. 
 The foregoing representations contained in this certificate are true
and accurate as of the date of this certificate and will be true and accurate as of the Closing Time. If any such representations shall not be true and accurate prior to the Closing Time, the undersigned shall give immediate written notice of such
fact to the Company prior to the Closing Time. 
  

							
	Dated:	 	 	  	Signed:	  	 
		
	 	  	 
	Witness (If Subscriber is an Individual)	  	Print the name of Subscriber
		
	 	  	 
	Print Name of Witness	  	If Subscriber is a corporation, print name and title of Authorized
Signing Officer

  

 –25– 

 SCHEDULE C 
 UNITED STATES INSTITUTIONAL ACCREDITED INVESTOR CERTIFICATE 
  

	TO:	Sterling Mining Company (the “Company”) 

 CERTIFICATE 
 Capitalized terms not otherwise defined herein shall have the meanings attributed thereto in the Subscription Agreement
to which this certificate was attached. 
 In connection with the purchase of Units (the “Units”) of Sterling Mining Company (the
“Company”), the undersigned hereby represents, warrants and certifies that: 
  

	1.	the Subscriber (or if the Subscriber is acting on behalf of a principal, then for the principal for whom the Subscriber is acting) satisfies one or more of the following categories
of “accredited investor” as that term is defined in Rule 501(a) of the Securities Act of 1933, as amended (the “U.S. Securities Act”), by virtue of the Subscriber being: 

 [please check one] 

			
	         Category 1.	 	Any bank as defined in Section 3(a)(2) of the U.S. Securities Act, or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the U.S.
Securities Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to Section 15 of the United States Securities Exchange Act of 1934; any insurance company as defined in Section 2(a)(13) of the
U.S. Securities Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small
Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political
subdivisions, for the benefit of its employees, if such plan has total assets in excess of US$5,000,000; or any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 (“ERISA”), if the
investment decision is made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets
in excess of US$5,000,000, or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors
		
	         Category 2.	 	A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940
		
	         Category 3.	 	An organization described in Section 501(c)(3) of the United States Internal Revenue Code, a corporation, a Massachusetts or similar business trust, or partnership, not formed for the
specific purpose of acquiring the Units, with total assets in excess of US$5,000,000
		
	         Category 4.	 	A trust that: (a) has total assets in excess of US$5,000,000, (b) was not formed for the specific purpose of acquiring the Units, and (c) is directed in its purchases of
securities by a person who has such knowledge and experience in financial and business matters that he/she is capable of evaluating the merits and risks of an investment in the Units
		
	         Category 5.	 	An entity in which all of the equity owners satisfy the requirements of one or more of the foregoing categories

  

	2.	(a) if the undersigned is the Subscriber, he or she is making the above statement based on personal knowledge of his or her financial situation and has reviewed personal financial
documentation with an accountant, financial advisor or other financial professional, if necessary, to determine that the above statement is true; or (b) if the undersigned is other than the Subscriber, he or she is making the above statement
based on a review, if necessary, of the financial statements of the Subscriber for the most recently completed financial year and any interim financial statements prepared since the end of such financial year and has undertaken such other review and
due diligence necessary to determine and certify that the Subscriber is an “accredited investor” as that term is defined in Rule 501(a) of the U.S. Securities Act; and 

	3.	the Subscriber understands that the Company is relying on this certificate as evidence of the Subscriber’s status as an “accredited investor” in accordance with Rule
501(a) of the U.S. Securities Act. 

 The foregoing representations contained in this certificate are true and accurate as of the date of this
certificate and will be true and accurate as of the Closing Time. If any such representations shall not be true and accurate prior to the Closing Time, the undersigned shall give immediate written notice of such fact to the Company prior to the
Closing Time. 
  

							
	Dated:	 	 	  	Signed:	  	 
		
	 	  	 
	Witness (If Subscriber is an Individual)	  	Print the name of Subscriber
		
	 	  	 
	Print Name of Witness	  	If Subscriber is a corporation, print name and title of Authorized
Signing Officer

  

 –27–

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