Document:

EXECUTION
VERSION

     

    PURCHASE
AGREEMENT

     

    among

     

    Elkhorn
Goldfields, LLC

     

    Calais
Resources, Inc.

     

    Calais
Resources Colorado, Inc.

     

    and

     

    Apollo
Gold, Inc.

     

    made
as of

     

    February
1, 2010

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Table
of Contents

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  I.
      Definitions

                                	
                                  1

                                
	 	 
	
                                  II.
      Purchase and Sale and Closing

                                	
                                  8

                                
	
                                  2.1

                                	 	
                                  Purchase
      and Sale

                                	
                                  8

                                
	
                                  2.2

                                	 	
                                  The
      Closing

                                	
                                  8

                                
	
                                  2.3

                                	 	
                                  Further
      Assurances

                                	
                                  10

                                
	 	 
	
                                  III.
      Representations and Warranties of Seller

                                	
                                  10

                                
	
                                  3.1

                                	 	
                                  Title
      to Shares

                                	
                                  10

                                
	
                                  3.2

                                	 	
                                  Incorporation;
      Power and Authority

                                	
                                  10

                                
	
                                  3.3

                                	 	
                                  Valid
      and Binding Agreement

                                	
                                  10

                                
	 	 
	
                                  IV.
      Representations and Warranties Regarding the Company

                                	
                                  11

                                
	
                                  4.1

                                	 	
                                  Incorporation;
      Power and Authority

                                	
                                  11

                                
	
                                  4.2

                                	 	
                                  No
      Breach; Consents

                                	
                                  11

                                
	
                                  4.3

                                	 	
                                  Capitalization

                                	
                                  11

                                
	
                                  4.4

                                	 	
                                  Subsidiaries

                                	
                                  11

                                
	
                                  4.5

                                	 	
                                  Brokerage

                                	
                                  12

                                
	
                                  4.6

                                	 	
                                  Disclaimer
      of Certain Representations or Warranties

                                	
                                  12

                                
	 	 
	
                                  V.
      Representations and Warranties of Buyer

                                	
                                  12

                                
	
                                  5.1

                                	 	
                                  Incorporation;
      Power and Authority

                                	
                                  12

                                
	
                                  5.2

                                	 	
                                  Valid
      and Binding Agreement

                                	
                                  12

                                
	
                                  5.3

                                	 	
                                  No
      Breach; Consents

                                	
                                  12

                                
	
                                  5.4

                                	 	
                                  No
      Other Representations; Suitability

                                	
                                  13

                                
	
                                  5.5

                                	 	
                                  Investment
      Intent

                                	
                                  13

                                
	
                                  5.6

                                	 	
                                  Brokerage

                                	
                                  13

                                
	
                                  5.7

                                	 	
                                  Loan
      Property

                                	
                                  13

                                
	
                                  5.8

                                	 	
                                  Litigation

                                	
                                  14

                                
	
                                  5.9

                                	 	
                                  No
      Other Representations

                                	
                                  14

                                
	 	 
	
                                  VI.
      Representations and Warranties of Calais

                                	
                                  15

                                
	
                                  6.1

                                	 	
                                  Incorporation;
      Power and Authority

                                	
                                  15

                                
	
                                  6.2

                                	 	
                                  Valid
      and Binding Agreement

                                	
                                  15

                                
	
                                  6.3

                                	 	
                                  No
      Breach; Consents

                                	
                                  15

                                
	
                                  6.4

                                	 	
                                  Loan
      Property

                                	
                                  15

                                
	
                                  6.5

                                	 	
                                  Litigation

                                	
                                  17

                                
	 	 
	
                                  VII.
      Further Agreements

                                	
                                  17

                                
	
                                  7.1

                                	 	
                                  Confidentiality

                                	
                                  17

                                
	
                                  7.2

                                	 	
                                  Release

                                	
                                  17

                                
	
                                  7.3

                                	 	
                                  Employee
      Benefits

                                	
                                  18

                                
	
                                  7.4

                                	 	
                                  Insurance

                                	
                                  20

                                
	
                                  7.5

                                	 	
                                  Bonding

                                	
                                  20

                                
	
                                  7.6

                                	 	
                                  Use
      of Seller’s Name

                                	
                                  20

                                
	
                                  7.7

                                	 	
                                  Post-Closing
      Access

                                	
                                  20

                                
	
                                  7.8

                                	 	
                                  Back-in
      Right to Caribou Property and Other Properties

                                	
                                  21

                                
	
                                  7.9

                                	 	
                                  Additional
      Unsecured Note; Replacement Notes

                                	
                                  21

                                

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

    
      
        
          
            
              
                
                  
                    	
                            7.10

                          	 	
                            Filings;
      Other Action

                          	
                            22

                          
	 	 
	
                            VIII.
      Conditions to Closing

                          	
                            22

                          
	
                            8.1

                          	 	
                            Conditions
      to Buyer’s Obligations

                          	
                            22

                          
	
                            8.2

                          	 	
                            Conditions
      to Seller’s Obligations

                          	
                            23

                          
	 	 
	
                            IX.
      Termination

                          	
                            24

                          
	
                            9.1

                          	 	
                            Termination

                          	
                            24

                          
	
                            9.2

                          	 	
                            Effect
      of Termination

                          	
                            25

                          
	 	 
	
                            X.
      Indemnification

                          	
                            26

                          
	
                            10.1

                          	 	
                            Indemnification
      by Seller

                          	
                            26

                          
	
                            10.2

                          	 	
                            Indemnification
      by Buyer

                          	
                            26

                          
	
                            10.3

                          	 	
                            Notice
      of Claims

                          	
                            26

                          
	
                            10.4

                          	 	
                            Third
      Person Claims

                          	
                            27

                          
	
                            10.5

                          	 	
                            Sole
      and Exclusive Remedy

                          	
                            27

                          
	
                            10.6

                          	 	
                            Tax
      Adjustment

                          	
                            28

                          
	 	 
	
                            XI.
      Allocation of Taxes; Tax Return

                          	
                            28

                          
	
                            11.1

                          	 	
                            Tax
      Return

                          	
                            28

                          
	
                            11.2

                          	 	
                            Cooperation

                          	
                            28

                          
	
                            11.3

                          	 	
                            Tax
      Sharing Agreements

                          	
                            28

                          
	
                            11.4

                          	 	
                            Tax
      Indemnification of Seller

                          	
                            28

                          
	
                            11.5

                          	 	
                            Tax
      Indemnification of Buyer

                          	
                            29

                          
	 	 
	
                            XII.
      General

                          	
                            29

                          
	
                            12.1

                          	 	
                            Press
      Releases and Announcements

                          	
                            29

                          
	
                            12.2

                          	 	
                            Expenses

                          	
                            29

                          
	
                            12.3

                          	 	
                            Amendment
      and Waiver

                          	
                            29

                          
	
                            12.4

                          	 	
                            Notices

                          	
                            30

                          
	
                            12.5

                          	 	
                            Assignment

                          	
                            31

                          
	
                            12.6

                          	 	
                            No
      Third-Party Beneficiaries

                          	
                            31

                          
	
                            12.7

                          	 	
                            No
      Partnership and No Corporate Opportunity

                          	
                            31

                          
	
                            12.8

                          	 	
                            Severability

                          	
                            32

                          
	
                            12.9

                          	 	
                            Complete
      Agreement

                          	
                            32

                          
	
                            12.10

                          	 	
                            Signatures;
      Counterparts

                          	
                            32

                          
	
                            12.11

                          	 	
                            Governing
      Law

                          	
                            32

                          
	
                            12.12

                          	 	
                            Specific
      Performance

                          	
                            32

                          
	
                            12.13

                          	 	
                            Jurisdiction

                          	
                            32

                          
	
                            12.14

                          	 	
                            Waiver
      of Jury Trial

                          	
                            33

                          
	
                            12.15

                          	 	
                            Construction

                          	
                            33

                          
	
                            12.16

                          	 	
                            Currency

                          	
                            33

                          
	
                            12.17

                          	 	
                            Time
      of Essence

                          	
                            33

                          
	
                            12.18

                          	 	
                            Consequential
      or Special Damages

                          	
                            34

                          

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

     

    Exhibit A – Caribou and Cross
Properties

    Exhibit B – Congo Property

    Exhibit C – Cross-Caribou Deeds of
Trust

    Exhibit D – Congo Deed of Trust

    Exhibit E – Instrument of Assignment

    Exhibit F – Endorsement

    Exhibit G – Letter Agreement, dated October 21, 2009,
between Apollo Gold Corporation and Elkhorn Goldfields Inc.

     

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    PURCHASE
AGREEMENT

     

    This
PURCHASE AGREEMENT (this
“Agreement”) among
Elkhorn Goldfields, LLC, a Delaware limited liability company (“Buyer”), Apollo Gold, Inc., a
Delaware corporation (“Seller”), Calais Resources
Colorado, Inc., a Nevada corporation (“Calais Colorado”), and Calais
Resources, Inc., a corporation organized under the laws of British Columbia
(“Calais Resources”
and, together with Calais Colorado, “Calais”), is made as of
February 1, 2010 (the “Effective
Date”).

     

    Recitals

     

    WHEREAS, Seller owns all of
the outstanding capital stock of Montana Tunnels Mining, Inc., a Delaware
corporation (the “Company”);

     

    WHEREAS, Buyer and/or the
Lenders (as defined below) own the Loan Property (as defined below);
and

     

    WHEREAS, subject to the terms
and conditions contained in this Agreement, (a) Seller desires to sell, and
Buyer desires to buy, all of the outstanding capital stock of the Company, on
the terms and subject to the conditions set forth in this Agreement, and (b) in
consideration therefor, Buyer shall transfer to Seller all of its rights, title
and interest in and to the Loan Property.

     

    NOW, THEREFORE, in
consideration of the foregoing premises and the mutual representations,
warranties and agreements contained in this Agreement, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

     

    I.   Definitions

     

    “Aardvark” has the meaning set
forth in the definition of Loan Property.

     

    “Additional Unsecured Loan”
has the meaning set forth in the definition of Loan Property.

     

    “Additional Unsecured Note”
means a promissory note, in a form acceptable to Seller, to be executed and
delivered by Calais to Seller at Closing and representing the Additional
Unsecured Loan.

     

     “Affiliate” has the meaning
set forth in Rule 12b-2 under the Exchange Act.

     

    “Agreement” has the meaning
set forth in the first paragraph of this Agreement.

     

    “Ancillary Agreements” means
the Instrument of Assignment, the Endorsement, the Additional Unsecured Note and
all other agreements, documents, certificates or instruments executed hereunder
or in connection herewith.

     

    “Borrowers” has the meaning
set forth in the definition of Loan Property.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Business Day” means any day
other than a Saturday, a Sunday, a United States federal holiday or a Colorado
state banking holiday.

     

    “Buyer” has the meaning set
forth in the first paragraph of this Agreement.

     

    “Buyer Group Member” means
Buyer and its Affiliates, directors, officers, employees, agents, attorneys and
consultants and their respective successors and assigns.

     

    “Buyer’s Cafeteria Plan”
means the Elkhorn Goldfields, LLC Cafeteria Plan.

     

    “Buyer’s 401(k) Plan” means
the Elkhorn Goldfields, LLC 401(k) Plan.

     

    “Calais” has the meaning set
forth in the first paragraph of this Agreement.

     

    “Calais Colorado” has the
meaning set forth in the first paragraph of this Agreement.

     

    “Calais JV Interest” has the
meaning set forth in Section 7.8.

     

    “Calais Resources” has the
meaning set forth in the first paragraph of this Agreement.

     

    “Caribou Property” means the
real property set forth on Part 2 of Exhibit A.

     

    “Claim Notice” has the meaning
set forth in Section 10.3(a).

     

    “Closing” has the meaning set
forth in Section 2.2(a).

     

    “Closing Date” has the meaning
set forth in Section 2.2(a).

     

    “COBRA” has the meaning set
forth in Section 7.3(d).

     

    “COBRA Continuee” means each
of the employees set forth on Schedule 7.3(e).

     

    “Code” means the Internal
Revenue Code of 1986, as amended.

     

    “Company” means Montana
Tunnels Mining, Inc., a Delaware corporation.

     

    “Company Common Stock” has the
meaning set forth in Section 2.1.

     

    “Company Shares” has the
meaning set forth in Section 2.1.

     

    “Confidential Information”
means:

     

    (a)           the
terms of this Agreement and any and all written
materials that a party hereto (the “Disclosing Party”) provides
or shares with any other party (each a “Recipient”) in connection
with the transactions set forth in this Agreement or the Ancillary
Agreements;

     

    (b)           the
intellectual property associated with this Agreement;

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (c)           any
oral explanations, discussions, and other discourse involving the Disclosing
Party and any Recipient concerning this Agreement or the Ancillary Agreements;
and

     

    (d)           information
supplied in connection with the transactions contemplated under this Agreement
or the Ancillary Agreements relating to the business, financial condition,
operations, assets, and liabilities of any of the parties hereto, their
Affiliates and their Subsidiaries;

     

    but does
not include information that:

     

    (x)           is
or becomes generally available to the public other than as a result of
disclosure of such information by any Recipient or any of its representatives in
breach of any covenant contained in this Agreement;

     

    (y)          can
be demonstrated to have been developed independently by a Recipient which has
not had any access to any information that would otherwise be deemed to be
“Confidential Information” pursuant to this definition; or

     

    (z)           becomes
available to the Recipient on a non-confidential basis from a source other than
the Disclosing Party; provided, that such source is not bound by a
confidentiality or other similar agreement, or by any other legal, contractual
or fiduciary obligation that prohibits disclosure of such information to any
Recipient.

     

    “Congo Deed of Trust” has the
meaning set forth in the definition of Loan Property.

     

    “Congo Loan” has the meaning
set forth in the definition of Loan Property.

     

    “Congo Note” has the meaning
set forth in the definition of Loan Property.

     

    “Congo Property” means the
real property set forth on Exhibit B.

     

    “Consent” means any
authorization, consent, approval, filing, waiver, exemption or other action by
or notice to any Person.

     

    “Contract” means a contract,
agreement, lease, commitment or binding understanding, whether oral or written,
that is in effect as of the date of this Agreement or any time after the date of
this Agreement.

     

    “Cross-Caribou Deeds of Trust”
has the meaning set forth in the definition of Loan Property.

     

    “Cross Property” means the
real property set forth on Part 1 of Exhibit A.

     

    “Cure Period” has the meaning
set forth in Section 9.1(b)(i).

     

    “Deeds of Trust” has the
meaning set forth in the definition of Loan Property.

     

    “Disclosing Party” has the
meaning set forth in the definition of Confidential
Information.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Disclosure Schedule” means
the schedule delivered by Seller to Buyer on or prior to the date of this
Agreement.

     

    “Effective Date” has the
meaning set forth in the first paragraph of this Agreement.

     

    “Elkhorn Release Claims” has
the meaning set forth in Section 7.2.

     

    “Employee Leasing Agreement”
means the Employee Leasing Agreement, dated the Closing Date, among Buyer, the
Company and Apollo Gold Corporation.

     

    “Endorsement” has the meaning
set forth in Section 2.2(b)(ii)(C).

     

    “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended.

     

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

     

    “Governmental Authorization”
means any approval, consent, license, permit, waiver, registration or other
authorization issued, granted, given, made available or otherwise required by
any Governmental Entity or pursuant to Law.

     

    “Governmental Entity” means
any federal, state, local, foreign, international or multinational entity or
authority exercising executive, legislative, judicial, regulatory,
administrative or taxing functions of or pertaining to government.

     

    “Governmental Order” means any
judgment, injunction, writ, order, ruling, award or decree by any Governmental
Entity or arbitrator.

     

    “Indemnified Party” has the
meaning set forth in Section 10.3(a).

     

    “Indemnitor” has the meaning
set forth in Section 10.3(a).

     

    “Instrument of Assignment” has
the meaning set forth in Section 2.2(b)(ii)(B).

     

    “IRS” means the United States
Internal Revenue Service.

     

    “Joint Venture” means that
certain joint venture relationship between Buyer and the Company governed by
that certain Mine Development and Operating Agreement, dated July 28, 2006,
between the Company and Elkhorn Tunnels, LLC, as amended from time to
time.

     

    “Law” means any law,
ordinance, regulation, statute or treaty of any Governmental
Entity.

     

    “Lenders” has the meaning set
forth in the definition of Loan Property.

     

    “Letter of Intent” means the
Letter of Intent, dated December 9, 2009, among Buyer, Apollo Gold Corporation
and Calais.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    “Liability” means any
liability or obligation whether accrued, absolute, contingent, unliquidated or
otherwise, whether due or to become due, and regardless of when asserted,
including all reclamation, restoration and cleanup activities associated with or
arising out of conducting exploration and mining activities.

     

    “Litigation” means any claim,
action, arbitration, mediation, audit, hearing, investigation, proceeding,
litigation or suit (whether civil, criminal, administrative, investigative or
informal) commenced, brought, conducted or heard by or before, or otherwise
involving, any Governmental Entity or arbitrator or mediator.

     

    “Loans” has the meaning set
forth in the definition of Loan Property.

     

    “Loan Policies” has the
meaning set forth in Section 2.2(b)(ii)(E).

     

    “Loan Property” shall mean,
collectively:

     

    (a)           that
certain loan made to Calais and Aardvark Agencies, Inc. (“Aardvark” and together with
Calais, the “Borrowers”) in the principal
amount of $5,222,095.88 (the “Original Caribou Loan”),
evidenced by a promissory note dated August 1, 2003 from Borrowers in favor
of the note holders listed therein, as amended by allonges dated
December 15, 2005 and December 15, 2006 (collectively, and together with
any replacements or amendments thereto or thereof, the “Original Caribou Notes”),
issued pursuant to that certain loan agreement, dated August 1, 2003, among
Borrowers and the lenders set forth therein and a letter agreement dated
December 15, 2005 among the Borrowers and MFPI Partners, LLC and secured in part
by those deeds of trust (the “Cross-Caribou Deeds of Trust”) listed on
Exhibit C (the
beneficiaries of the Cross-Caribou Deeds of Trust being referred to herein
collectively as the “Lenders”) recorded against the
Caribou Property and the Cross Property, respectively, on September 5, 2003 in
the Clerk and Recorder’s Office of Boulder County, Colorado;

     

    (b)           that
certain loan of $1,458,582 from MFPI Partners, LLC to Calais (and subsequently
assigned to Buyer) which is not currently represented by a promissory note or
related security documentation, which amount has been expended on the Cross
Property (the “Additional
Unsecured Loan”);

     

    (c)           that
certain loan in the original principal amount of $258,956.40 from MFPI Partners,
LLC to Calais Resources (the “Congo Loan” and, together
with the Original Caribou Loan and the Additional Unsecured Loan, the “Loans”) pursuant to an
unsecured promissory note (the “Congo Note”), such Congo Loan
having been used by Calais to purchase the Congo Property which is located in
the Consolidated Caribou Mines District, and secured in part by that deed of
trust (the “Congo Deed of Trust” and, together
with the Cross-Caribou Deeds of Trust, the “Deeds of Trust”) listed on
Exhibit D recorded
against the Congo Property on December 20, 2005 at Reception No. 02745592, in
the Clerk and Recorder’s Office of Boulder County, Colorado;

     

    (d)           all
extensions, amendments and other modifications related to the foregoing and all
interest, fees, penalties and other expenses owed by the Borrowers
under  under any of the foregoing; and

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (e)           all
other documents or instruments related to the foregoing including loan
agreements and security documents related thereto.

     

    “Loss” means any Litigation,
Governmental Order, complaint, claim, demand, damage, deficiency, penalty, fine,
cost, amount paid in settlement, liability, obligation, Tax, encumbrance, loss,
expense or fee, including court costs and reasonable attorneys’ fees and
expenses.

     

    “Notes” means the Original
Caribou Notes and the Congo Note.

     

    “Organizational Documents”
means (i) the articles or certificate of incorporation and the bylaws of a
corporation, (ii) the partnership agreement and any statement of partnership of
a general partnership, (iii) the limited partnership agreement and the
certificate of limited partnership of a limited partnership, (iv) the limited
liability company agreement and articles or certificate of formation of a
limited liability company, (v) any charter or similar document adopted or filed
in connection with the creation, formation or organization of a Person and (vi)
any amendment to any of the foregoing.

     

    “Original Caribou Loan” has
the meaning set forth in the definition of Loan Property.

     

    “Original Caribou Notes” has
the meaning set forth in the definition of Loan Property.

     

    “Person” means any individual,
corporation (including any non-profit corporation), general or limited
partnership, limited liability company, joint venture, estate, trust,
association, organization, labor union, Governmental Entity or other
entity.

     

    “Plan” means every plan, fund,
Contract, program and arrangement (whether written or not) for the benefit of
present or former Company employees, including those intended to provide (i)
medical, surgical, health care, hospitalization, dental, vision, life insurance,
death, disability, legal services, severance, sickness or accident benefits
(whether or not defined in Section 3(1) of ERISA), (ii) pension, profit sharing,
stock bonus, retirement, supplemental retirement or deferred compensation
benefits (whether or not tax qualified and whether or not defined in Section
3(2) of ERISA) or (iii) salary continuation, unemployment, supplemental
unemployment, severance, termination pay, change-in-control, vacation or holiday
benefits (whether or not defined in Section 3(3) of ERISA), (w) that is
maintained or contributed to by the Company, (x) that the Company has committed
to implement, establish, adopt or contribute to in the future, (y) for which the
Company is or may be financially liable as a result of the direct sponsor’s
affiliation with the Company, or the Company’s shareholders (whether or not such
affiliation exists at the date of this Agreement and notwithstanding that the
Plan is not maintained by the Company for the benefit of its employees or former
employees) or (z) for or with respect to which the Company is or may become
liable under any common law successor doctrine, express successor liability
provisions of Law, provisions of a collective bargaining agreement, labor or
employment Law or agreement with a predecessor employer.  Plan does
not include any arrangement that has been terminated and completely wound up
prior to the date of this Agreement and for which the Company has no present or
potential liability.

     

    “Public Filings” has the
meaning set forth in Article III.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    “Real Property” means the real
property securing the Loan Property including the Caribou Property, the Cross
Property and the Congo Property.

     

    “Re-acquisition Agreements”
has the meaning set forth in Section 6.4(c).

     

    “Recipient” has the meaning
set forth in the definition of Confidential Information.

     

    “Remedies Exception,” when
used with respect to any Person, means except to the extent enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting the enforcement of creditors’ rights generally and by
general equitable principles.

     

    “Replacement Original Caribou
Note” means a promissory note, in a form acceptable to Seller, to be
executed and delivered by Calais to Seller at the request of Seller and
replacing the Original Caribou Notes.

     

    “Replacement Congo Note” means
a promissory note, in a form acceptable to Seller, to be executed and delivered
by Calais to Seller at the request of Seller and replacing the Congo
Note.

     

    “Required Insurance” has the
meaning set forth in Section 7.4.

     

     “Required Surety” has the
meaning set forth in Section 7.5.

     

    “Retained Employees” has the
meaning set forth in Section 7.3(a).

     

    “Return” means any return,
declaration, report, estimate, information return and statement pertaining to
any Taxes.

     

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

     

    “Secondary Lien” has the
meaning set forth in Section 7.8.

     

    “Securities Act” means the
Securities Act of 1933, as amended.

     

    “Seller” has the meaning set
forth in the first paragraph of this Agreement.

     

    “Seller Cure Period” has the
meaning set forth in Section 9.1(c)(i).

     

    “Seller Group Member” means
Seller and its Affiliates, directors, officers, employees, agents, attorneys and
consultants and their respective successors and assigns.

     

    “Seller’s Cafeteria Plan”
means the Apollo Gold, Inc. Cafeteria Plan.

     

    “Seller’s 401(k) Plan” means
the Apollo Gold, Inc. Employee Savings Plan.

     

    “Senior Lenders” means
Macquarie Bank Limited, RMB Australia Holdings Limited and RMB Resources
Inc.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    “Stub Period” has the meaning
set forth in Section 7.6.

     

    “Subsidiary” means any Person
in which a controlling ownership interest is owned, directly or indirectly, by
another Person.

     

    “Taxes” means all taxes,
charges, fees, levies or other assessments, including all net income, gross
income, gross receipts, sales, use, ad valorem, transfer, franchise, profits,
license, withholding, payroll, employment, social security, unemployment,
excise, estimated, severance, stamp, occupation, property or other taxes,
customs duties, fees, assessments or charges of any kind whatsoever, including
all interest and penalties thereon, and additions to tax or additional amounts
imposed by any Governmental Entity upon the Company.  For purposes of
this Agreement, “Taxes” also includes any obligations under any agreements or
arrangements with any Person with respect to the liability for, or sharing of,
Taxes (including pursuant to Treasury Regulation Section 1.1502-6 or comparable
provisions of state, local or foreign Tax Law) and including any liability for
Taxes as a transferee or successor, by Contract or otherwise.

     

    “Treasury Regulations” means
the rules and regulations under the Code.

     

    II.   Purchase
and Sale and Closing

     

    2.1  Purchase and
Sale.  At
the Closing and pursuant to the terms and subject to the conditions set forth in
this Agreement, (a) Seller agrees to sell to Buyer, and Buyer agrees to buy from
Seller, all of the issued and outstanding shares (the “Company Shares”) of common
stock, par value $0.001 per share, of the Company (“Company Common Stock”) and
(b) in consideration and payment therefor, Buyer shall assign, convey and
deliver to Seller all of Buyer’s right, title and interest in and to the Loan
Property.

     

    2.2  The
Closing.

     

    (a)           The
closing of the transactions contemplated by this Agreement (the “Closing”) will take place at
the offices of Davis Graham & Stubbs LLP, Suite 500, 1550 Seventeenth
Street, Denver, Colorado 80202, at 9:00 a.m. (Denver time) on February 1, 2010
or as soon thereafter as reasonably possible following satisfaction of the
conditions set forth in Article VIII (the “Closing Date”) or at such
other place and on such other date as may be mutually agreed by Buyer and
Seller, in which case Closing Date means the date so agreed.  The
failure of the Closing will not ipso facto result in
termination of this Agreement and will not relieve any party of any obligation
under this Agreement.  The Closing will be effective as of 12:00 a.m.
(Denver time) on the Closing Date.

     

    (b)           Subject
to the conditions set forth in this Agreement, on the Closing Date:

     

    (i)           Seller
will deliver to Buyer:

     

    (A)           certificates
representing all of the Company Shares, free and clear of all encumbrances, duly
endorsed or accompanied by duly executed stock powers;

     

    (B)           a
certificate of an appropriate officer of Seller dated the Closing Date stating
that the conditions set forth in Section 8.1 have been satisfied;
and

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    (C)           the
Employee Leasing Agreement, duly executed by Apollo Gold
Corporation.

     

    (ii)           Buyer
will deliver or cause to be delivered to Seller:

     

    (A)           Evidence
satisfactory to Seller in its sole discretion that Buyer is the sole owner of
the Notes and the Deeds of Trust and that no other party, including the Lenders,
shall have any rights in respect thereof;

     

    (B)           a
duly executed and acknowledged (by each party requested by Seller) Assignment of
Promissory Note and Deed of Trust with respect to each of the Loans in the form
attached hereto as Exhibit E, including the
recordable Assignment of Deed of Trust attached thereto (the “Instrument of Assignment”)
along with any affidavit or other instrument reasonably requested by the issuer
of the Loan Policies in order to issue the endorsement described in Section
8.2(j);

     

    (C)           a
duly executed endorsement (by each party requested by Seller)  to the
Original Caribou Notes, the Additional Unsecured Note and the Congo Note without
recourse evidencing each of the Original Caribou Loan and the Congo Loan,
respectively, in the form attached hereto as Exhibit F (the “Endorsement”);

     

    (D)           the
Additional Unsecured Note, duly executed by Calais and satisfactory, in the sole
discretion of Seller, to evidence that the Additional Unsecured Loan is a valid,
binding obligation enforceable against Calais (in favor of Seller) in accordance
with the terms set forth therein;

     

    (E)           the
executed originals of the Original Caribou Notes and the Congo Note and copies
of all related documents, instruments and files related to the Loans and the
Notes, if not previously delivered to Seller;

     

    (F)           the
original of Buyer’s current lender’s title policies with respect to the Real
Property to the extent not previously delivered (the “Loan Policies”);

     

    (G)           copies
of all existing and proposed easements, covenants, restrictions, agreements,
leases or other documents which affect title to the Real Property that are known
by Buyer and that are not disclosed by the Loan Policies;

     

    (H)           a
duly executed notice to the Borrowers that the Loans have been transferred to
Seller and directing Borrowers to make all future payments under the Loans to
Seller;

     

    (I)          
 any other recorded closing documents as are customary for transactions of
this type and reasonably requested by Seller;

     

    (J)          
 a certificate of an appropriate officer of Buyer dated the Closing Date
stating that the conditions set forth in Section 8.2 have been
satisfied;

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    (K)           evidence
reasonably satisfactory to Seller that the Required Insurance and the Required
Surety are in place and effective; and

     

    (L)           the
Employee Leasing Agreement, duly executed by the Company and Buyer.

     

    All
actions to be taken by Buyer in connection with consummation of the transactions
contemplated by this Agreement and all certificates, opinions, instruments and
other documents required to be delivered by Buyer to effect the transactions
contemplated by this Agreement and the Ancillary Agreements will be in form and
substance reasonably satisfactory to Seller and its counsel.

     

    (c)           All
items delivered by the parties at the Closing will be deemed to have been
delivered simultaneously, and no items will be deemed delivered or waived until
all have been delivered.

     

    2.3  Further
Assurances.  After
the Closing Date, each of Calais, Buyer and Seller will take, and will cause
each of their Affiliates to take, all appropriate action and execute any
documents, instruments or conveyances of any kind that may be reasonably
requested by another party to carry out any of the provisions of this Agreement
and the Ancillary Agreements, including as may be required to evidence the Loans
or any security interest thereunder and executing and delivering a Replacement
Original Caribou Note and/or a Replacement Congo Note if requested by Seller or
any of its Affiliates.

     

    III.   Representations
and Warranties of Seller

     

    Seller
represents and warrants to Buyer that, except as described in the Disclosure
Schedule or in the reports, schedules, forms, statements and other documents
filed with or furnished to the SEC or with the securities regulatory authorities
in Canada by Apollo Gold Corporation (the “Public
Filings”):

     

    3.1  Title to
Shares.  Seller
owns, of record and beneficially, the Company Shares free and clear of
encumbrances.

     

    3.2  Incorporation; Power and
Authority.  Seller
is duly organized, validly existing and in good standing under the Laws of the
jurisdiction of its organization.  Seller has all necessary corporate
power and authority to execute, deliver and perform this Agreement and the
Ancillary Agreements to which it is a party.

     

    3.3  Valid and Binding
Agreement.  The
execution, delivery and performance of this Agreement and the Ancillary
Agreements to which Seller is a party have been duly and validly authorized by
Seller by all necessary corporate or equivalent action.  This
Agreement and the Ancillary Agreements to which it is a party have been duly
executed and delivered by Seller and constitute the valid and binding
obligations of Seller, enforceable against it in accordance with their
respective terms, subject to the Remedies Exception.

    
      
         

      

      
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    IV.   Representations
and Warranties Regarding the Company

     

    Seller
represents and warrants to Buyer that, except as described in the
Disclosure Schedule or in the Public Filings:

     

    4.1  Incorporation; Power and
Authority. The
Company is a legal entity duly organized, validly existing and in good standing
under the Laws of the jurisdiction of its organization.  The Company
is duly qualified to do business as a foreign corporation in the State of
Montana.  The Company is in compliance in all material respects with
all provisions of its Organizational Documents.

     

    4.2  No Breach;
Consents.  Except
as set forth on Schedule
4.2, the execution, delivery and performance of this Agreement and the
Ancillary Agreements to which the Company is a party by the Company will not (a)
contravene any provision of the Organizational Documents of the Company; (b)
violate or conflict with any Law, Governmental Order or Governmental
Authorization; (c) conflict with, result in any breach of any of the provisions
of, constitute a default (or any event that would, with the passage of time or
the giving of notice or both, constitute a default) under, result in a violation
of, increase the burdens under, result in the termination, amendment,
suspension, modification, abandonment or acceleration of payment (or any right
to terminate) or require a Consent under any Contract that is either binding
upon or enforceable against the Company or any Governmental Authorization that
is held by the Company; (d) result in the creation of any encumbrance upon the
Company or any of the assets of the Company or (e) require any Governmental
Authorization, except, in the case of clauses (b), (c), (d) or (e), any such
violations, conflicts, defaults, burdens, terminations, amendments, suspensions,
modifications, abandonments, accelerations, Consents, challenges or remedies
that would not, individually or in the aggregate, reasonably be likely to have a
material adverse effect on the Company or prevent the consummation of the
transactions contemplated hereby.

     

    4.3  Capitalization.  The
authorized capital stock of the Company consists of one hundred thousand
(100,000) shares of Company Common Stock, of which one hundred (100) shares of
Company Common Stock are issued and outstanding and no shares of Company Common
Stock are held in treasury.  All issued and outstanding shares of
Company Common Stock are duly authorized, validly issued, fully paid and
nonassessable, free of preemptive rights, are in certificated form, and have
been offered, sold and issued by the Company in compliance with applicable
securities Laws.  The Company is not obligated to issue, exchange,
transfer, sell, repurchase, redeem or otherwise acquire any capital stock of the
Company nor is it obligated to grant, extend, accelerate the vesting of or enter
into any option, warrant, call, subscription, convertible security, or similar
arrangement in respect of the capital stock of the Company.  Except
for this Agreement and under applicable securities Laws, there are no
registration rights agreements, no voting trust, proxy and no restrictions on
transfer with respect to any capital stock of the Company.

     

    4.4  Subsidiaries.  The
Company does not own any Subsidiary or have any ownership interest in any other
Person, directly or indirectly, except for the Company’s interest in the Joint
Venture.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    4.5  Brokerage.  Other
than Haywood Securities Inc., no Person will be entitled to receive any
brokerage commission, finder’s fee, fee for financial advisory services or
similar compensation in connection with the transactions contemplated by this
Agreement based on any Contract made by or on behalf of the Company for which
Buyer or the Company is or could become liable or obligated.

     

    4.6  Disclaimer of Certain
Representations or Warranties.  THE
PARTIES HERETO ACKNOWLEDGE AND AGREE THAT EXCEPT AS SPECIFICALLY PROVIDED IN
THIS AGREEMENT, NONE OF SELLER OR THE COMPANY (OR ANY OTHER PERSON) MAKES ANY
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, (AND EACH OF SELLER AND THE
COMPANY HEREBY DISCLAIM ANY SUCH REPRESENTATIONS OR WARRANTIES) WITH RESPECT TO
(A) THE QUANTITY, QUALITY, SUITABILITY FOR MINING, AMENABILITY TO PROCESSING, OR
COSTS OF MINING OF ANY MINERAL RESOURCES IN THE REAL PROPERTY CURRENTLY OWNED,
LEASED, CONTROLLED OR OCCUPIED BY THE COMPANY OR (B) THE MERCHANTABILITY OR
SUITABILITY FOR A PARTICULAR PURPOSE OF ANY OF THE EQUIPMENT, FIXTURES, SUPPLIES
OR OTHER PERSONAL PROPERTY OWNED BY THE COMPANY, OR OTHERWISE.

     

    V.   Representations
and Warranties of Buyer

     

    Buyer
represents and warrants to Seller that:

     

    5.1  Incorporation; Power and
Authority.  Buyer
is a corporation duly organized, validly existing and in good standing under the
Laws of its jurisdiction of organization, with all necessary power and authority
to execute, deliver and perform this Agreement and the Ancillary Agreements to
which it is a party.

     

    5.2  Valid and Binding
Agreement.  The
execution, delivery and performance of this Agreement and the Ancillary
Agreements to which Buyer is a party have been duly and validly authorized by
Buyer by all necessary corporate action.  This Agreement and the
Ancillary Agreements to which Buyer is a party have been duly executed and
delivered by Buyer and constitute the valid and binding obligations of Buyer,
enforceable against it in accordance with their respective terms, subject to the
Remedies Exception.

     

    5.3  No Breach;
Consents.  The
execution, delivery and performance of this Agreement and the Ancillary
Agreements to which Buyer is a party by Buyer will not (a) contravene any
provision of the Organizational Documents of Buyer; (b) violate or conflict with
any Law, Governmental Order or Governmental Authorization; (c) conflict with,
result in any breach of any of the provisions of, constitute a default (or any
event that would, with the passage of time or the giving of notice or both,
constitute a default) under, result in a violation of, increase the burdens
under, result in the termination, amendment, suspension, modification,
abandonment or acceleration of payment (or any right to terminate) or require a
Consent, including any Consent under the Notes or any Contract or Governmental
Authorization that is either binding upon or enforceable against Buyer; (d)
result in the creation of any encumbrance upon the Loan Property; or (e) require
any Governmental Authorization.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    5.4  No Other Representations;
Suitability.  Buyer
is an “accredited investor”, as defined in Rule 501(a) under the Securities Act,
and has such knowledge in financial and business affairs as to be capable of
evaluating the merits and risks of its investment and is able to bear the
economic risk of loss of its investment for an indefinite period of time, and
can afford to suffer the complete loss thereof.  Buyer acknowledges
that Seller has given Buyer access to the documents and facilities of the
Company.  Buyer acknowledges that Seller makes no representation or
warranty with respect to the accuracy, reliability or completeness of the
conclusions set forth in any projections, estimates or budgets delivered to or
made available to Buyer regarding the future revenues, future liabilities,
future results of operations (or any component thereof), future cash flows or
future financial condition (or any component thereof) of the Company or the
future business and operations of the Company.  Buyer acknowledges
that the Company Shares have not been registered under the Securities Act or any
state securities laws and are being offered and sold in reliance upon exemptions
provided in the Securities Act and state securities laws for transactions not
involving any public offering and, therefore, cannot be resold or transferred
unless they are subsequently registered under the Securities Act (which neither
Seller nor any of its Affiliates has any obligation or intention to do) and such
applicable state securities laws or unless an exemption from such registration
is available.  Buyer further acknowledges that there is no public
market for the Company Shares and, because of the substantial restrictions on
the transferability of the Company Shares, it may not be possible for Buyer to
readily liquidate its investment in the Company Shares, even in the case of an
emergency.  Buyer has evaluated the risks involved in investing in the
Company Shares and has determined that the Company Shares are a suitable
investment.

     

    5.5  Investment
Intent.  Buyer
is acquiring the Company Shares for its own account for investment purposes, and
not with a view to the distribution thereof.  Buyer has no Contract
with any Person to sell, transfer or pledge any of the Company Shares and has no
plans to enter into any such Contract or arrangement.

     

    5.6  Brokerage.  No
Person will be entitled to receive any brokerage commission, finder’s fee, fee
for financial advisory services or similar compensation in connection with the
transactions contemplated by this Agreement based on any Contract made by or on
behalf of Buyer for which Seller or any of its Affiliates is or could become
liable or obligated.

     

    5.7  Loan Property Set forth
on Schedule 5.7(a) is a
true, correct and complete list of all Contracts or other documents relating to
the Loan Property, true, correct and complete copies (or, in the case of oral
Contracts, summaries of the materials terms thereof) of which have been provided
to Seller.

     

    (b)           Buyer
is the sole, absolute owner of the Loan Property and the security interests in
the Real Property granted thereby, free and clear of liens and encumbrances
created by, through or under Buyer, with full right and title to assign the same
and the income and profits due or to become due thereunder;

     

    (c)           The
Contracts and documents constituting the Loan Property are binding, valid and in
full force and effect and are enforceable in accordance with their terms,
subject to the Remedies Exception.  The Contracts and documents
constituting the Loan Property have not been modified or amended except as
stated on Schedule
5.7(a);

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    (d)           The
lien of the Deeds of Trusts constituting a portion of the Loan Property are each
valid, perfected and first priority liens (except as otherwise reflected in the
Loan Policies);

     

    (e)           The
assignment of the Loan Property will, when executed and delivered, transfer good
title to all of the same to Seller, free and clear of all liens and
encumbrances;

     

    (f)        
   There is no outstanding assignment or pledge by Buyer of the
Loan Property or of the payments of principal and interest, income and profits
due or to become due thereunder;

     

    (g)           Except
for the fact that the Notes are past due, there are no existing defaults by the
Borrowers or Buyer under the terms of the documents constituting the Loan
Property;

     

    (h)           Borrowers
have no present defenses, set-offs, or counterclaims against the Buyer (or any
predecessor-in-interest thereto) in respect of the Loan Property;

     

    (i)           
Buyer has not affirmatively waived any right under any of the documents
constituting the Loan Property; and

     

    (j)           
The outstanding balance of each of the Loans, including accrued interest through
the Effective Date, are as described on Schedule 5.7(j).

     

    5.8  Litigation.  There
is no Litigation pending or, to Buyer’s knowledge, threatened against or
affecting Buyer at law or in equity, or before any Governmental Entity, which
seeks to delay or question the validity of this Agreement, the Ancillary
Agreements or the transactions contemplated hereby or thereby or would otherwise
have a material adverse effect on the Loan Property or the Real
Property.

     

    5.9  No Other
Representations.  Buyer
is an informed and sophisticated purchaser, experienced in the evaluation and
purchase of companies such as the Company as contemplated
hereunder.  As a member of the Joint Venture, Buyer is fully informed
regarding the business, operations, assets, liabilities, prospects and financial
condition of the Company.  Buyer has undertaken such investigation and
has been provided with and has evaluated such documents and information as it
has deemed necessary to enable it to make an informed and intelligent decision
with respect to the execution, delivery and performance of this Agreement and
the Ancillary Agreements.  Buyer acknowledges that the Company has
given Buyer access to the documents and facilities of the Company, both as a
member of the Joint Venture and in connection with negotiation and execution of
this Agreement.  Except for the representations and warranties
contained herein, Buyer has not relied upon any written, electronic or oral
information or statements concerning the operations of the Company made or
provided by the Company, Seller or any of their respective Affiliates,
employees, directors, agents or other representatives, or any estimates or
forecasts by such Persons concerning any mineral reserves or resources of the
Company or concerning the nature, quantity or quality or costs of mining
thereof, or upon any estimates of such Persons regarding the cost of
remediation, reclamation or closure associated with the operations of the
Company; and with respect to such matters and other matters concerning the
operations of the Company which are not addressed by the Company’s or Seller’s
representations and warranties in this Agreement, Buyer has relied exclusively
upon its due diligence investigation of the operations of the Company, including
the advice of its own experts or consultants as Buyer has determined to be
necessary or desirable in its sole discretion.  Buyer acknowledges
that Seller’s records and files concerning the operations of the Company which
have been made available for inspection to Buyer may contain evaluative and
interpretive reports, studies and other material, and that Buyer has not relied
upon such reports, studies or other material in electing to purchase the
Company, but has undertaken such independent analysis and other due diligence
inquiries concerning the Company as it has determined to be necessary or
desirable in its sole discretion.  Buyer acknowledges that none of the
Company, Seller or any of their respective Affiliates make any representation or
warranty with respect to (i) any projections, estimates or budgets delivered to
or made available to Buyer of future revenues, future results of operations (or
any component thereof), future cash flows, future liabilities or remediation
reserves or future financial condition (or any component thereof) of the Company
or the future business and operations of the Company or (ii) any other
information or documents made available to Buyer or its counsel, accountants,
representatives or advisors with respect to the Company or its businesses or
operations, except as expressly set forth in this Agreement.

    
      
         

      

      
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    VI.   Representations
and Warranties of Calais

     

    Calais
represents and warrants to Seller that:

     

    6.1  Incorporation; Power and
Authority.  Calais
is a corporation duly organized, validly existing and in good standing under the
Laws of its jurisdiction of organization, with all necessary power and authority
to execute, deliver and perform this Agreement and the Ancillary Agreements to
which it is a party.

     

    6.2  Valid and Binding
Agreement.  The
execution, delivery and performance of this Agreement and the Ancillary
Agreements to which Calais is a party have been duly and validly authorized by
Calais by all necessary corporate action.  This Agreement and the
Ancillary Agreements to which Calais is a party have been duly executed and
delivered by Calais and this Agreement the Ancillary Agreements to which Calais
is a party constitute, and when executed and delivered at Closing will
constitute, the valid and binding obligations of Calais, enforceable against it
in accordance with their respective terms, subject to the Remedies
Exception.

     

    6.3  No Breach;
Consents.  The
execution, delivery and performance of this Agreement and the Ancillary
Agreements to which Calais is a party by Calais do not and will not (a)
contravene any provision of the Organizational Documents of Calais; (b) violate
or conflict with any Law, Governmental Order or Governmental Authorization; (c)
conflict with, result in any breach of any of the provisions of, constitute a
default (or any event that would, with the passage of time or the giving of
notice or both, constitute a default) under, result in a violation of, increase
the burdens under, result in the termination, amendment, suspension,
modification, abandonment or acceleration of payment (or any right to terminate)
or require a Consent, including any Consent under the Notes or any Contract or
Governmental Authorization that is either binding upon or enforceable against
Calais; (d) result in the creation of any encumbrance upon the Real Property; or
(e) require any Governmental Authorization..

     

    6.4  Loan Property Set forth
on Schedule 6.4(a) is a
true, correct and complete list of all Contracts or other documents relating to
the Loan Property to which Calais is a party, true, correct and complete copies
(or, in the case of oral Contracts, summaries of the materials terms thereof) of
which have been provided to Seller;

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    (b)           Calais
is the sole, absolute owner of the Cross Property and the Congo Property and, to
the knowledge of Calais, Aardvark is the sole, absolute owner of the Caribou
Property.  Except as set forth on Schedule 6.4(b) and in the
Loan Policies, the Real Property is free and clear of all liens and
encumbrances;

     

    (c)           Calais
has the right to re-acquire the Caribou Property owned by Aardvark pursuant to
that certain Right to Redeem and Re-acquire Agreement, dated March 26, 1999,
between Aardvark and Calais Colorado, that certain Right to Redeem and
Re-acquire Agreement, dated July 20, 2000, between Aardvark and Calais Colorado
and that certain Settlement Agreement and Mutual General Release, dated March 9,
2004, among Calais Resources, Aardvark and the other parties thereto
(collectively, the “Re-acquisition Agreements”),
true, correct and complete copies of which have been provided to
Seller;

     

    (d)           Calais
has the full and unrestricted right to enter and conduct exploration,
development, mining and related activities on the Caribou Property owned by
Aardvark pursuant to the Re-acquisition Agreements;

     

    (e)           The
Re-acquisition Agreements are valid, binding and in full force and effect and
are enforceable against Aardvark in accordance with their terms, subject to the
Remedies Exception.  Except as stated on Schedule 6.4(e), no defaults
or alleged defaults have occurred or are existing thereunder;

     

    (f)           The
Contracts and documents constituting the Loan Property to which Calais is a
party are valid, binding and in full force and effect and are enforceable
against Calais in accordance with their terms, subject to the Remedies
Exception.  The Contracts and documents relating to the Loan Property
to which Calais is a party have not been modified or amended except as stated on
Schedule
6.4(a);

     

    (g)           Calais
intends to fully satisfy its obligations in respect of the Loans, including all
obligations arising under the Caribou Deed of Trust in the event that Calais
re-acquires the Caribou Property pursuant to the Re-Acquisition Agreements or
otherwise;

     

    (h)           The
lien of the Deeds of Trusts constituting a portion of the Loan Property are each
valid, perfected and first priority liens (except as otherwise reflected in the
Loan Policies);

     

    (i)           
Except for the fact that the Notes are past due, there are no existing defaults
by Calais or, to the knowledge of Calais, the other parties thereto under the
terms of the documents constituting the Loan Property;

     

    (j)           
Calais acknowledges and agrees that it has no defenses, set-offs, or
counterclaims against Buyer (or any other holder of the Loan Property including,
following the Closing, Seller) under any of the Loans or documents related
thereto; and

     

    (k)           The
outstanding balance of each of the Loans, including accrued interest through the
Effective Date, are as described on Schedule
5.7(j).

    
      
         

      

      
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    (l)           Calais
acknowledges and agrees that (i) no portion of the Original Caribou Loan (or any
of the other Loans) was repaid through the sale of “Broadway Stock” (as that
term is defined in the Loan Agreement, dated August 1, 2003 (the “Loan Agreement”), between
Calais, Aardvark and Broadway Mortgage Corporation), (ii) any past or future
sale of the “Broadway Stock” shall in no manner limit, alter or affect Calais’
obligation to repay in full all amounts outstanding under the Original Caribou
Loan as set forth on Schedule 5.7(j) and
(iii) it shall not raise the “Broadway Stock” (or the issuance or sale thereof)
as a defense, set-off or counterclaim to the repayment of the Original Caribou
Loan (or any of the other Loans).

     

    6.5 
Litigation.  There
is no Litigation pending or, to Calais’ knowledge, threatened against or
affecting Calais at law or in equity, or before any Governmental Entity, which
seeks to delay or question the validity of this Agreement, the Ancillary
Agreements or the transactions contemplated hereby or thereby or would otherwise
have a material adverse effect on the Loan Property or the Real
Property.

     

    VII.   Further
Agreements

     

    7.1 
Confidentiality.  Each
party hereto agrees that all documents, materials and other information which it
shall have obtained regarding the other parties during the course of the
negotiations leading to the consummation of the transactions contemplated hereby
(whether obtained before or after the date of this Agreement), the investigation
provided for in the Letter of Intent among the parties and the preparation of
this Agreement and other related documents may contain Confidential
Information.  Each party hereto shall, and shall cause each of its
representatives and Affiliates to (a) hold in strict confidence all Confidential
Information, (b) not release or disclose in any manner whatsoever to any other
Person any such Confidential Information, and (c) return all Confidential
Information to the Disclosing Party who provided such information, or destroy
such Confidential Information, including all paper and electronic copies (to the
extent feasible) of such Confidential Information, upon any termination of this
Agreement pursuant to Article IX; provided, that the foregoing provisions shall
not apply (x) to any release or disclosure made with the prior written consent
of the Disclosing Party, (y) where the Recipient is compelled to release or
disclose such Confidential Information by a Government Order; provided, that
prior written notice of such disclosure is given to the Disclosing Party and any
such disclosure is limited to only that portion of the Confidential Information
that such Recipient is compelled to disclose, or (z) to any release or
disclosure to the extent such release or disclosure is reasonably necessary to
enforce or comply with this Agreement or as required by applicable securities
Laws or stock exchange rules.  Release.  From
and after the Effective Date, Buyer and the Company for themselves, and for
their respective successors, beneficiaries, Affiliates, agents, partners,
attorneys, representatives, and assigns, does hereby voluntarily, intentionally,
and knowingly fully release and forever discharge Seller and its Affiliates,
predecessors, successors, subrogees, assigns, parents, Subsidiaries, heirs,
insurers, contractors, and each of their respective officers, directors,
shareholders, agents, attorneys, and employees, former employees, former
directors and any other related individual or entity, from any and all past or
present claims, actions, causes of action, demands, rights, liabilities, costs,
expenses, attorney fees (including any claim of entitlement for attorney fees
under any Contract or Law allowing a prevailing party or plaintiff to recover
attorney fees), damages, and controversies of every kind and nature which Buyer
or the Company may have, direct or indirect, known or unknown, foreseen or
unforeseen, through the Effective Date (the “Elkhorn Released
Claims”).  The Elkhorn Released Claims specifically include
those which arise out of, relate to, or are based upon:  (i) the
Company’s actions or omissions in its capacity as operator of the Montana
Tunnels mine or the Diamond Hill mine,  (ii) the Joint Venture, that
certain Option Agreement, dated July 28, 2006, between the Company and Elkhorn
Goldfields, Inc. and that certain Mill Operating and Option Agreement, dated
July 28, 2006, between the Company and Elkhorn Goldfields, Inc.,
(iii) statements, representations, warranties, acts, or omissions by the
Company, Seller and their Affiliates, (iv) express or implied agreements
between or among Buyer on the one hand and the Company, Seller and/or their
Affiliates on the other, (v) any relationship between or among Buyer on the
one hand and the Company, Seller and/or their Affiliates on the other,
(vi) any claims which were or could have been raised against the Company,
Seller and their Affiliates, and (vii) all other Laws.

     

    
      
        
        

      

      
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    7.3 
Employee
Benefits.References
in this Section 7.3 to Seller also mean Seller and its Affiliates.

     

    (a)         Effective
as of the Closing, (i) the employment of each of the employees of the Company
set forth on Part 1 of Schedule 7.3(a) (the “Retained Employees”) shall
terminate and (ii) each of the Retained Employees shall become employees of
Seller (or the appropriate Affiliate thereof).  In addition, following
the Closing, (i) each of the employees set forth on Part 2 of Schedule 7.3(a) shall remain
employees of the Company and shall be leased by the Company to Seller (or its
appropriate Affiliate) on the terms and in the percentages set forth in the
Employee Leasing Agreement and (ii) each of the employees set forth on Part 3 of
Schedule 7.3(a) shall
remain employees of the Company (but shall not be leased Seller (or any
affiliate thereof).

     

    (b)         Seller
will take all actions necessary to cause the Company and the Company’s employees
to cease to participate in each Plan, as of midnight on the Closing Date;
provided, however, (a) that any Company employee who is disabled on the Closing
Date will remain eligible for any benefits for which the individual is eligible,
or may become eligible in the future upon satisfying any elimination period,
under any short-term or long-term disability plan of Seller, (b) Company
employees with accounts under the Seller’s 401(k) Plan will remain as inactive
participants in such plan until the transfer of assets and liabilities
contemplated in Section 7.3(c), and (c) Company employees who participate in the
Seller’s Cafeteria Plan will remain as inactive participants in such plan until
the transfer of assets and liabilities contemplated in Section
7.3(g).

     

    (c)         Seller
will use its commercially reasonable best efforts to assist Buyer and the
Company in covering employees of the Company under Buyer’s employee benefit
programs, including providing appropriate information and documentation to
insurance companies and other providers.  Seller will deliver to the
Company as of the Closing Date all personnel files and records relating to the
employees of the Company as of the Closing Date, and which are not already held
by the Company.  Buyer will take all actions necessary to cover,
effective as of 12:01 a.m. on the day immediately following the Closing Date (or
as soon thereafter as is feasible in the case of Buyer’s 401(k) Plan and Buyer’s
Cafeteria Plan), employees of the Company under benefits provided by the
Buyer.  Subject to Section 7.3(e), the Joint Venture will pay the cost
of coverage and all eligible claims under Seller’s health plan with respect to
Company employees and dependents that are incurred on or before midnight of the
Closing Date.  Subject to Section 7.3(e), Buyer (or the Company) will
pay the cost of coverage and all eligible claims with respect to Company
employees and dependents that are incurred after midnight of the Closing Date;
such claims will not be paid under Seller’s health plan but instead submitted
and paid under Buyer’s health plan.  Nothing in this Agreement will be
construed as requiring any employee benefit plan to continue to be maintained by
the Company for any specified period after Closing.

     

    
      
        
        

      

      
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    (d)         Seller
will use its commercially reasonable best efforts to cause the spin-off of the
portion of Seller’s 401(k) Plan covering active employees of the Company (along
with any outstanding loans) to Buyer’s 401(k) Plan, such spin-off to occur as
soon as administratively feasible after Closing.

     

    (e)         Seller
will take all actions necessary to continue to provide continuation coverage, as
required under Code Section 4980B, Part 6 of Title I of ERISA or any similar
state Law (collectively, “COBRA”), following the
Closing Date to any former employee of the Company (or dependent of any employee
or former employee of the Company) whose “qualifying event” occurred on or
before the Closing Date at a time when the individual was covered by Seller’s
health plan.  The Joint Venture will pay all eligible claims under
Seller’s health plan that are incurred by COBRA Continuees, collectively, on or
before midnight of the Closing Date.  Buyer and Seller will equally
divide all eligible claims under Seller’s health plan that are incurred by COBRA
Continuees, collectively, after midnight of the Closing Date, to the extent that
such eligible claims exceed the premiums paid by such COBRA Continuees with
respect to coverage after midnight of the Closing Date and are payable by the
Seller, not the Seller’s stop-loss carrier.  The premiums paid by the
COBRA Continuees, collectively, shall be determined cumulatively from the
Closing Date without adjustment for any applicable subsidy required under the
American Recovery and Reinvestment Act of 2009.  Seller will provide
Buyer with an accounting of such claims for payment on a monthly
basis.  The first such accounting will be provided to Buyer following
the last day of the first calendar month ending on or after the Closing
Date.  Such accounting will be limited to de-identified information,
as defined under 45 Code of Federal Regulations §165.514.  The portion
of such claims that is payable by Buyer will be due and payable within fifteen
days of Buyer’s receipt of such accounting.  To the extent that any
portion of the amount due is not paid by Buyer within fifteen days of its
receipt of such accounting, the unpaid amount will accrue interest at a rate of
fifteen percent per annum, compounded daily.  If, as of midnight of
the last day when one or more COBRA Continueee is eligible for coverage under
Seller’s health plan, the premiums paid by the COBRA Continuees, collectively,
during the period beginning after midnight of the Closing Date and ending on the
last day when one or more COBRA Continuees are eligible for coverage under
Seller’s health plan (without adjustment for any applicable subsidy required
under the American Recovery and Reinvestment Act of 2009) exceed claims made by
COBRA Continuees during such period, then Buyer will be entitled to one-half of
such excess.  Buyer’s portion of such excess will be paid to Buyer
within fifteen days of the last day when one or more COBRA Continuees were
eligible for coverage under Seller’s health plan.

     

    (f)          Seller
will use its commercially reasonable best efforts to provide workers
compensation coverage following the Closing Date to any employee or former
employee of the Company which is attributable to any injury or illness that
occurred or commenced on or prior to the Closing Date.

     

    
      
        
        

      

      
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    (g)         Seller
will use its commercially reasonable best efforts to cause a spin-off of the
portion of the Seller’s Cafeteria Plan covering active employees of the Company
to Buyer’s Cafeteria Plan, such spin-off to occur as soon as administratively
feasible after Closing.  Participant elections made prior to the
Closing Date will continue to be effective on and after the Closing
Date.  Reimbursements made to participants under the Seller’s
Cafeteria Plan from January 1, 2010 until the Closing Date will be carried
forward.  Seller will transfer to Buyer an amount equal to participant
contributions to the Seller’s Cafeteria Plan from January 1, 2010 until the
Closing Date, less participant reimbursements during such period, as soon as
administratively feasible after Closing.

     

    (h)         This
Section 7.3 will not constitute an amendment to any Plan, create any third party
beneficiary rights nor will it inure to the benefit of or be enforceable by any
employee nor any Person representing the interests of employees.

     

    7.4 
Insurance.  Buyer
will secure and obtain, on or prior to the Closing Date, insurance applicable to
the Company and its business, to be effective commencing on the Closing Date
that is sufficient for compliance with all requirements of applicable Law and of
any Contract to which the Company is subject and that insures against risks of
the kind and in amounts for which the Company was insured prior to Closing (the
“Required
Insurance”).

     

    7.5 
Bonding.  Buyer
will secure and obtain, on or prior to the Closing Date, assurances acceptable
to Seller, in its sole discretion, that the Company’s existing reclamation bonds
and other surety, which are listed on Schedule 7.5, will remain in
full force and effect (at no post-Closing cost or Liability to Seller and its
Affiliates) after the Closing or will be replaced, effective as of the Closing
Date, on terms acceptable to the appropriate Governmental Entities (such bonds
or surety, as so continued or replaced, the “Required
Surety”).

     

    7.6 
Use of Seller’s
Name.  As
soon as practicable after the Closing but in no event later than 30 days after
the Closing, Buyer shall remove or cause to be removed the names, marks and
identifications used by the Company and all variations and derivatives thereof
and logos relating thereto from all of the Company’s assets, including all
documentation or records prepared after the Closing Date, to the extent it
includes the word “Apollo Gold” or “Apollo.”  At no time shall Buyer
utilize any of the foregoing names or any other tradename or trademark of the
Seller or its Affiliates in connection with its ownership and operation of the
Company.

     

    7.7 
Post-Closing
Access.  After
the Closing Date, Buyer will cause the Company to afford to Seller and its
Affiliates, their accountants and counsel, during normal business hours, upon
reasonable request, full access to the books and records of the Company in order
that Seller has a full opportunity to make such investigation and evaluation as
it reasonably desires to review, prepare and audit financial statements of or
related to the Company, the Seller or their Affiliates for periods prior to the
Closing Date.  Buyer will cause the Company to retain all financial
statements and records, including all records related to Taxes for a period of
seven (7) years from the Closing Date.

     

    
      
        
        

      

      
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    7.8 
Back-in Right to
Caribou Property and Other Properties.

     

    (a)           Seller
and its Affiliates (referred to collectively as “Seller” for this Section 7.8
only) may, in their sole discretion, engage in negotiations with Calais to
convert Seller’s interest in the Notes and the Additional Unsecured Note, in
whole or in part, into a joint venture interest with Calais for development of
the Caribou Property, the Cross Property and/or other Calais properties (any
such interest, a “Calais JV
Interest”).  Should Seller agree to so convert the Notes and
the Additional Unsecured Note as evidenced by its execution of a written
agreement or letter of intent to that effect prior to June 1, 2010, Buyer shall
have the right to acquire up to 50% of Seller’s interest in such Calais JV
Interest by making a cash payment of $8,750,000, which shall be payable as
follows:  (i) $5,000,000 to Seller by July 1, 2010 and (ii) $3,750,000
to the joint venture’s development budget (at such times specified in such
budget), such budget to be submitted to Buyer in the form approved by Seller, in
its sole discretion.  By way of example only, if Seller enters into a
joint venture on the Caribou Property such that Seller has a 60% interest and
Calais a 40% interest, Buyer shall have the right to earn 50% of Seller’s 60%
Calais JV Interest (i.e. a 30% interest in the joint venture) by making total
cash payments totaling $8,750,000 to Seller as set forth above.  Upon
Buyer exercising the option described in this Section 7.8, Buyer would be
subject to all rights and obligations of a joint venture participant as detailed
in any joint venture agreement agreed to by Seller and Calais, in their sole
discretion.  For the avoidance of doubt, nothing herein shall create
any obligation on the part of Seller or any of its Affiliates to enter into a
joint venture relationship with Calais.

     

    (b)           Should
Seller elect not to convert its interest in the Notes and the Additional
Unsecured Note into a Calais JV Interest by June 1, 2010, Buyer shall have
the option to acquire the Notes and the Additional Unsecured Note by payment to
Seller on or before July 1, 2010 of $8,750,000 plus (i) accrued interest thereon
and (ii) if acquired by Seller, the face value of the indebtedness obligation in
respect of the Secondary Lien (as defined below), regardless of the actual
amount of cash or other consideration paid by Seller to acquire that
indebtedness obligation.  Further, should Seller acquire 100% of the
issued and outstanding securities of Calais such that Calais becomes a wholly
owned Subsidiary of Seller, Buyer shall have the right to participate on the
same basis as Seller to acquire up to 50% of the acquired Calais
securities.  If additional capital is spent on the Caribou Property or
the Cross Property prior to June 1, 2010, the final purchase price payment of
$8,750,000 shall be adjusted upward on a dollar-for-dollar basis in the amount
of capital expended.In
addition to the lien represented by the Cross-Caribou Deeds of Trust, the
Caribou Property and the Cross Property are subject to a secondary lien secured
by that Deed of Trust set forth on Schedule 7.8(c) (the “Secondary Lien”) to secure a
repayment obligation of Calais (including principal and interest) of
approximately $850,000.  If (i) Seller purchases the Secondary Lien
and the indebtedness secured thereby (which Seller shall have no obligation to
do) and (ii) Buyer exercises the option described in this Section 7.8, at the
time of exercising such option, Buyer shall be required to reimburse Seller in
cash for 50% of the purchase price for the Secondary Lien.  Such
payment shall be made within one Business Day of the exercise of such option and
shall be made by wire transfer of immediately available funds to the account
designated by Seller.Additional Unsecured Note;
Replacement Notes.  Calais
hereby agrees that, concurrently with the Closing, it will execute and deliver
to Seller the Additional Unsecured Note and, in consideration therefor and the
other commitments made by Calais hereunder or in connection herewith, Seller
agrees (i) to forbear from enforcing its right to collect principal and interest
outstanding thereunder for a period of one year from the Effective Date and (ii)
that the interest rate payable under the Original Caribou Note and the Congo
Note shall be eight percent (8%) for the period commencing on the Closing Date
and ending on the first anniversary thereof and, thereafter, the interest rate
shall revert to such rate as is set forth in such notes.  In addition,
Calais hereby consents to the transfer of the Loan Property to Seller in
accordance with the terms of this Agreement.

     

    
      
        
        

      

      
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    7.10 
Filings; Other
Action.  Subject
to the terms and conditions herein provided, Buyer, Calais and Seller shall and
shall cause their respective Affiliates to: (a) use all reasonable efforts to
cooperate with one another in (i) determining which filings are required to be
made prior to the Closing with, and which Consents, approvals, permits, or
authorizations are required to be obtained prior to the Closing from, any
Governmental Entity, in connection with the execution and delivery of this
Agreement, the Ancillary Agreements and the consummation of the transactions
contemplated hereby and thereby, and (ii) timely making all such filings and
timely seeking all such Consents, approvals, permits, or authorizations; and (b)
use all reasonable efforts to take, or cause to be taken, all other action and
do, or cause to be done, all other things necessary, proper, or appropriate to
consummate and make effective the transactions contemplated by this Agreement
and the Ancillary Agreements.

     

    (b)           Buyer
will obtain, as soon as reasonably practicable after the date hereof, and in any
case, prior to Closing, evidence acceptable to Seller in its sole discretion
that Seller and its Affiliates have been released from their obligations and all
further liability under each of the Contracts set forth on Schedule
7.10(b).

     

    VIII.   Conditions
to Closing

     

    8.1 
Conditions to Buyer’s
Obligations.  The
obligation of Buyer to take the actions required to be taken by it at the
Closing is subject to the satisfaction or waiver, in whole or in part, in
Buyer’s sole discretion, of each of the following conditions at or prior to the
Closing:

     

    (a)           The
representations and warranties of Seller contained in this Agreement, such
representations and warranties being considered collectively and individually,
when read without any exception or qualification for materiality, are true and
correct as of the Effective Date and shall be true and correct on the Closing
Date as though made on the Closing Date (or on the date when made in the case of
any representation or warranty which specifically relates to an earlier date),
except for (a) changes or transactions therein permitted by this Agreement or
resulting from any change or transaction consented to in writing by Buyer and
(b) failures of representations and warranties to be true and correct which,
individually or in the aggregate, are not reasonably expected to have a material
adverse effect;

     

    (b)           Seller
will have performed and complied with each of its agreements contained in this
Agreement in all material respects;

     

    (c)           No
Law or Governmental Order will have been enacted, entered, enforced,
promulgated, issued or deemed applicable to the transactions contemplated by
this Agreement by any Governmental Entity that would have the effect
of  restraining or prohibiting the purchase and sale of the Company
Shares;

     

    (d)           The
Seller will have delivered each of the agreements, certificates, instruments and
other documents that it is obligated to deliver pursuant to Section 2.2(b)(i),
and such agreements so delivered will be in full force and effect;
and

     

    
      
        
        

      

      
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    8.2 
Conditions to Seller’s
Obligations.  The
obligation of Seller to take the actions required to be taken by it at the
Closing is subject to the satisfaction or waiver, in whole or in part, in
Seller’s sole discretion, of each of the following conditions at or prior to the
Closing:

     

    (a)           The
representations and warranties of Buyer and Calais contained in this Agreement,
such representations and warranties being considered collectively and
individually, when read without any exception or qualification for materiality,
are true and correct as of the Effective Date and shall be true and correct on
the Closing Date as though made on the Closing Date (or on the date when made in
the case of any representation or warranty which specifically relates to an
earlier date), except for changes or transactions therein permitted by this
Agreement or resulting from any change or transaction consented to in writing by
Seller;

     

    (b)           Buyer
and Calais will have performed and complied with each of its agreements
contained in this Agreement in all material respects;

     

    (c)           The
Required Insurance and Required Surety will have been obtained and be in full
force and effect and such actions as Seller may require will have been taken in
connection therewith;

     

    (d)           No
Law or Governmental Order will have been enacted, entered, enforced,
promulgated, issued or deemed applicable to the transactions contemplated by
this Agreement by any Governmental Entity that would have the effect of
restraining or prohibiting the purchase and sale of the Company
Shares;

     

    (e)           Buyer
will have delivered each of the agreements, certificates, instruments and other
documents that it is obligated to deliver pursuant to Section
2.2(b)(ii);

     

    (f)           Buyer
will have delivered to Seller evidence to the satisfaction of Seller that Buyer
is the sole, absolute owner of the Loan Property and the security interests in
the Real Property granted thereby, free and clear of liens and encumbrances
created by, through or under Buyer, with full right and title to assign the same
and the income and profits due or to become due thereunder;

     

    (g)           Calais
will have executed and delivered to Seller (i) the Additional Unsecured Note and
(ii) an estoppel certificate certifying to Seller (1) the documents evidencing
the Loans are valid, in full force and effect and are binding obligations
enforceable against Calais in accordance with their terms, (2) the current
status of payments under the Loans, (3) whether any defaults on the part of
Buyer (or any predecessor thereto) exist under the Loans and (4) such other
matters requested by Seller;

     

    (h)           Seller’s
determination that the physical condition of the Real Property shall be
substantially the same on the Closing Date as on the Effective Date, and, as of
the Closing, there shall be no Litigation of any kind whatsoever, pending or
threatened, which after Closing would reasonably be expected to materially and
adversely affect the value of the Real Property or the ability to use or operate
the Real Property in the manner in which it is currently or contemplated being
used or operated;

     

    
      
        
        

      

      
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    (i)           Seller’s
shall have received the Consent of its Senior Lenders to this Agreement and the
transactions contemplated hereby and the release by the Senior Lenders of any
and all security interest of the Senior Lenders in and to the Company Shares and
the assets of the Company;

     

    (j)           Seller’s
determination that the issuer of the Loan Policies shall be irrevocably and
unconditionally committed to issue to Seller an additional insured endorsement
and such other endorsements requested by Seller to enable Seller to acquire the
benefits of the insured under such Loan Policies; and

     

    (k)           Seller’s
determination that neither Buyer nor Calais are subject to any bankruptcy or
insolvency proceedings.

     

    (l)           Seller
shall have received evidence to its satisfaction that Seller and its Affiliates
shall have been unconditionally and fully released from their obligations and
any further liability under each of the Contracts set forth on Schedule
7.10(b).

     

    IX.   Termination

     

    9.1 
Termination.  This
Agreement may be terminated prior to the Closing:

     

    (a)           by
the mutual written consent of Buyer and Seller;

     

    (b)           by
Seller, if

     

    (i)           Buyer
or Calais, as applicable, has or will have breached any representation, warranty
or agreement contained in this Agreement such that any of the closing conditions
contained in Section 8.2 shall be incapable of being satisfied; provided,
however, that, if such breach is curable by Buyer or Calais through the exercise
of its reasonable efforts and Buyer or Calais continues to exercise such
reasonable efforts, Seller may not terminate this Agreement under this
Section 9.1(b)(i) unless such breach is not cured in a manner satisfactory
to Seller in its reasonable discretion within the Cure Period.  The
“Cure Period” shall
mean the period beginning on the date on which Seller delivers to Buyer or
Calais, as applicable, written notice setting forth in reasonable detail the
circumstances giving rise to such breach and ending on the earlier of the
10th
day thereafter or February 1, 2010;

     

    (ii)           the
transactions contemplated by this Agreement will not have been consummated on or
before February 1, 2010; provided, that Seller will not be entitled to terminate
this Agreement pursuant to this Section 9.1(b)(ii) if Seller’s failure to
comply fully with its obligations under this Agreement has prevented the
consummation of the transactions contemplated by this Agreement; or

     

    (iii)           a
Law or Governmental Order will have been enacted, entered, enforced,
promulgated, issued or deemed applicable to the transactions contemplated by
this Agreement by any Governmental Entity that would have the effect
of  restraining or prohibiting the purchase and sale of the Company
Shares.

     

    
      
        
        

      

      
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    (c)           by
Buyer, if

     

    (i)           Seller
has or will have breached any representation, warranty or agreement contained in
this Agreement such that the closing conditions contained in Section 8.1 shall
be incapable of being satisfied; provided, however, that, if such breach is
curable by Seller through the exercise of its reasonable efforts and Seller
continues to exercise such reasonable efforts, Buyer may not terminate this
Agreement under this Section 9.1(c)(i) unless such breach is not cured in a
manner satisfactory to Buyer in its reasonable discretion within the Seller Cure
Period.  The “Seller
Cure Period” shall mean the period beginning on the date on which Buyer
delivers to Seller written notice setting forth in reasonable detail the
circumstances giving rise to such breach and ending on the earlier to occur of
the 10th day
thereafter or February 1, 2010;

     

    (ii)           the
transactions contemplated by this Agreement will not have been consummated on or
before February 1, 2010; provided, that Buyer will not be entitled to terminate
this Agreement pursuant to this Section 9.1(c)(ii) if Buyer’s failure to
comply fully with its obligations under this Agreement has prevented the
consummation of the transactions contemplated by this Agreement; or

     

    (iii)           a
Law or Governmental Order will have been enacted, entered, enforced,
promulgated, issued or deemed applicable to the transactions contemplated by
this Agreement by any Governmental Entity that would have the effect
of  restraining or prohibiting the purchase and sale of the Company
Shares.

     

    9.2 
Effect of
TerminationIf Seller
terminates this Agreement pursuant to Section 9.1(a) or (b), such
termination shall be the exclusive remedy of Seller with respect to such
termination, absent fraud or willful misconduct by Buyer or Calais; provided,
however, if Seller terminates this Agreement as a result of the closing
conditions contained in Section 8.2(f) not being satisfied, then Buyer shall
reimburse Seller for all of its and its Affiliates’ costs and expenses incurred
in connection with the negotiation and preparation of this Agreement and the
Letter of Intent (including its due diligence investigation in connection
herewith and therewith).

     

    (b)           If
Buyer terminates this Agreement pursuant to Section 9.1(a) or (c), such
termination shall be the exclusive remedy of Buyer with respect to such
termination, absent fraud or willful misconduct by Seller.

     

    (c)           If
this Agreement is terminated, (i) all continuing obligations of the parties
under this Agreement will terminate except this Section 9.2, Section 7.1 and
Article XII will survive indefinitely unless sooner terminated or modified by
the parties in writing and (ii) the existing Joint Venture shall remain in full
force and effect and the parties thereto shall continue to have such rights and
remedies available therein, as supplemented by paragraph 3 of that certain
letter agreement, dated October 21, 2009, between Apollo Gold Corporation and
Elkhorn Goldfields Inc. and attached hereto as Exhibit G.

     

    
      
        
        

      

      
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    X.   Indemnification

     

    10.1 
Indemnification by
Seller.  Seller
agrees to indemnify and hold harmless each Buyer Group Member from and against
any and all Loss incurred by such Buyer Group Member in connection with or
arising from:

     

    (a)           any
breach by Seller of any of its covenants, agreements or obligations in this
Agreement or in any Ancillary Agreement; or

     

    (b)           any
breach of any warranty or the inaccuracy of any representation of Seller
contained or referred to in this Agreement or any certificate delivered by or on
behalf of Seller pursuant hereto.

     

    10.2 
Indemnification by
Buyer.  Buyer
agrees to indemnify and hold harmless each Seller Group Member from and against
any and all Loss incurred by such Seller Group Member in connection with or
arising from:

     

    (a)           any
breach by Buyer of any of its covenants, agreements or obligations in this
Agreement or in any Ancillary Agreement;

     

    (b)           any
breach of any warranty or the inaccuracy of any representation of Buyer
contained or referred to in this Agreement or in any certificate delivered by or
on behalf of Buyer pursuant hereto;

     

    (c)           any
payment obligations arising under the Employment Agreement, dated February 15,
2004, between Apollo Gold Corporation, the Company and Timothy G. Smith as a
result of the transactions contemplated hereby, including Section 6(f) of such
agreement; or

     

    (d)           the
failure to deliver the originally executed Original Caribou Notes and the Congo
Notes on or after the Closing (including any increased costs or fees in
connection with Seller’s enforcement of such notes as a result
thereof).

     

    (e)           the
operations of the Company or the Real Property on and after the Effective
Date.

     

    10.3 
Notice of
Claims

     

    (a)           Any
Buyer Group Member or Seller Group Member seeking indemnification hereunder (the
“Indemnified Party”)
shall give to the party obligated to provide indemnification to such Indemnified
Party (the “Indemnitor”) a notice (a
“Claim Notice”)
describing in reasonable detail the facts giving rise to any claim for
indemnification hereunder and shall include in such Claim Notice (if then known)
the amount or the method of computation of the amount of such claim, and a
reference to the provision of this Agreement, any Ancillary Agreement or any
other agreement, document or instrument executed hereunder or in connection
herewith upon which such claim is based; provided, that a Claim Notice with
respect to any action at law or suit in equity by or against a third Person as
to which indemnification will be sought shall be given promptly, and in no event
later than fifteen (15) Business Days after receipt by such Indemnified Party of
written notice of such third Person claims.  Thereafter, the
Indemnified Party shall deliver to the Indemnitor, within five (5) Business Days
after the Indemnified Party’s receipt thereof, copies of all notices and
documents (including court papers) received by the Indemnified Party relating to
the third Person claim.  Notwithstanding the foregoing, should a party
be physically served with a complaint with regard to a third Person claim, the
Indemnified Party must notify the Indemnitor with a copy of the complaint within
five (5) Business Days after receipt thereof and shall deliver to the Indemnitor
within seven (7) Business Days after the receipt of such complaint copies of
notices and documents (including court papers) received by the Indemnified Party
relating to such third Person claim.  Notwithstanding the foregoing
provisions of this Section 10.3, any failure to give notice or to make a
delivery required pursuant to this Section 10.3, (i) will not be deemed a waiver
of any rights of an Indemnified Party, except to the extent that the rights of
the Indemnitor are prejudiced thereby and (ii) will not relieve the Indemnitor
of its obligations under this Article X after such notice is given or such
delivery made, except to the extent that the rights of the Indemnitor are
prejudiced thereby.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    (b)           In
calculating any Loss there shall be deducted any insurance net (after deducting
the present value of premium cost) recovery in respect thereof (and no right of
subrogation shall accrue hereunder to any insurer).

     

    (c)           After
the giving of any Claim Notice pursuant hereto, the amount of indemnification to
which an Indemnified Party shall be entitled under this Article X shall be
determined: (i) by the written agreement between the Indemnified Party and the
Indemnitor; (ii) by a settlement approved by a court of competent jurisdiction;
(iii) by a final judgment or decree of a court of competent jurisdiction; or
(iv) by any other means to which the Indemnified Party and the Indemnitor shall
agree.  The judgment or decree of a court shall be deemed final when
the time for appeal, if any, shall have expired and no appeal shall have been
taken or when all appeals taken shall have been finally determined.

     

    10.4 
Third Person
Claims.  The
Indemnified Party shall have the right to conduct and control, through counsel
of its choosing, the defense, compromise or settlement of any third Person
claim, action or suit against such Indemnified Party as to which indemnification
will be sought by any Indemnified Party from any Indemnitor
hereunder.  The Indemnitor shall cooperate in connection therewith and
shall furnish such records, information and testimony and attend such
conferences, discovery proceedings, hearings, trials and appeals as may be
reasonably requested by the Indemnified Party in connection therewith; provided,
that the Indemnitor may participate, through counsel chosen by it and at its own
expense, in the defense of any such claim, action or suit as to which the
Indemnified Party has so elected to conduct and control the defense thereof;
provided, further, that to the extent the Indemnified Party elects not to defend
such proceeding, claim or demand, and the Indemnified Party defends against or
otherwise conducts any such proceeding, claim or demand, the Indemnitor may
retain counsel at the expense of the Indemnitor, and control the defense of such
proceeding.  Neither the Indemnitor nor the Indemnified Party may
settle any such proceeding which settlement (i) obligates the other party to pay
money, to perform obligations or to admit liability or (ii) which would
interfere, in any material respect, with the conduct of the Indemnified Party’s
business as currently conducted, in either case, without the consent of the
other party, such consent not to be unreasonably withheld. Sole and Exclusive
Remedy.  Prior
to or in connection with the Closing, the parties will have available to them
all remedies available at law or in equity, including specific performance or
other equitable remedies except as expressly limited elsewhere in this
Agreement.  After the Closing, except for remedies that cannot be
waived as a matter of law and injunctive and provisional relief (including
specific performance), the rights set forth in this Article X will be the
exclusive remedy of Buyer or Seller for breach of this Agreement by Buyer or
Seller, as applicable, and will be in lieu of other remedies, whether in
contract or tort.  Notwithstanding the foregoing, nothing in this
Agreement will prevent any party from bringing an action based upon fraud or
willful misconduct by the other party in connection with this
Agreement.  In the event such action is brought, the prevailing
party’s attorneys’ fees and costs will be paid by the nonprevailing
party.  In addition, as between Calais, on the one hand, and Buyer and
Seller, on the other hand, such parties will at all times (whether before or
after the Closing) have available to them all remedies available at law or in
equity, including specific performance or other equitable remedies except as
expressly limited elsewhere in this Agreement.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    10.6 
Tax
Adjustment.  Any
payment under this Article X, Section 11.4 or Section 11.5 will be,
for Tax purposes, to the extent permitted by Law, an adjustment to the Purchase
Price.  Each such payment shall be net of any Tax benefit realized by
the payer resulting from the making of the payment or the event giving rise to
the payment.

     

    XI.   Allocation
of Taxes; Tax Return

     

    11.1 
Tax
Return

     

    (a)           Seller
will include the income or loss of the Company for all Tax periods ending on or
before the Closing Date on Seller’s timely filed income Returns and will file
all such Returns when due (including extensions).

     

    11.2 
Cooperation.  After
the Closing Date, Buyer and Seller will make available to the other, as
reasonably requested, all information, records or documents (including state
apportionment information) relating to Tax liabilities or potential Tax
liabilities of the Company with respect to (i) Tax periods ending on or prior to
the Closing Date and (ii) Tax periods beginning before the Closing Date and
ending after the Closing Date, but only with respect to the portion of such
period up to and including the Closing Date.  Buyer and Seller will
preserve all such information, records and documents until the expiration of any
applicable statute of limitations thereof.  Buyer will prepare and
provide to Seller any information or documents reasonably requested by Seller
for Seller’s use in preparing or reviewing the Returns referred to in Section
11.1.  Notwithstanding any other provision hereof, each party will
bear its own expenses in complying with the foregoing provisions.

     

    11.3 
Tax Sharing
Agreements.  All
tax sharing agreements between Seller, on the one hand, and the Company, on the
other hand, will be terminated as of the Closing Date after normal
operations.

     

    11.4 
Tax Indemnification of
Seller.  Subject
to Article X, from and after the Closing Date, Seller shall protect, defend,
indemnify and hold harmless Buyer from any and all Taxes which are imposed on
the Company in respect of its income, business, property or operations or for
which the Company may otherwise be liable (A) resulting by reason of the several
liability of the Company pursuant to Treasury Regulations Section 1.1502-6 or
any analogous state, local or foreign Law or regulation or by reason of the
Company having been a member of any consolidated, combined or unitary group on
or prior to the Closing Date, and (B) resulting from the breach of the Seller’s
covenants regarding Tax matters, including those set forth in this Article
XI.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    11.5 
Tax Indemnification of
Buyer.  Subject
to Article X, from and after the Closing Date, Buyer shall protect, defend,
indemnify and hold harmless the Seller from any and all Taxes which are imposed
on the Company in respect of its income, business, property or operations or for
which the Company may otherwise be liable resulting from the breach of Buyer’s
covenants regarding Tax matters, including those set forth in this Article XI;
provided, however, Buyer shall not indemnify Seller with respect to any Taxes
for which Seller is otherwise responsible under this Agreement.

     

    XII.   General

     

    12.1 
Press Releases and
Announcements

     

    (a)           No
party hereto shall make any public disclosure or announcement relating to this
Agreement or the transactions contemplated by this Agreement without the prior
written consent of the other.  Notwithstanding the foregoing, any
party hereto may make any public disclosure required by the United States or
Canadian securities commissions or stock exchanges on which their shares are
traded, provided that the parties required to make any such disclosure shall use
reasonable efforts to provide the other parties with two Business Days’ prior
notice.

     

    12.2 
Expenses.  Except
as otherwise expressly provided for in this Agreement, each party will each pay
all expenses incurred by it in connection with the transactions contemplated by
this Agreement, including legal, accounting, investment banking and consulting
fees and expenses incurred in negotiating, executing and delivering this
Agreement and the other agreements, exhibits, documents and instruments
contemplated by this Agreement (whether the transactions contemplated by this
Agreement are consummated or not).

     

    12.3 
Amendment and
Waiver.  This
Agreement may not be amended, a provision of this Agreement or any default,
misrepresentation or breach of warranty or agreement under this Agreement may
not be waived, and a consent may not be rendered, except in a writing executed
by the party against which such action is sought to be
enforced.  Neither the failure nor any delay by any Person in
exercising any right, power or privilege under this Agreement will operate as a
waiver of such right, power or privilege, and no single or partial exercise of
any such right, power or privilege will preclude any other or further exercise
of such right, power or privilege or the exercise of any other right, power or
privilege.  In addition, no course of dealing between or among any
Persons having any interest in this Agreement will be deemed effective to modify
or amend any part of this Agreement or any rights or obligations of any Person
under or by reason of this Agreement.  The rights and remedies of the
parties to this Agreement are cumulative and not alternative.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    12.4
 Notices. All
notices, demands and other communications to be given or delivered under or by
reason of the provisions of this Agreement will be in writing and will be deemed
to have been given (i) when delivered if personally delivered by hand (with
written confirmation of receipt), (ii) when received if sent by a nationally
recognized overnight courier service (receipt requested), (iii) five Business
Days after being mailed, if sent by first class mail, return receipt requested,
or (iv) when receipt is acknowledged by an affirmative act of the party
receiving notice, if sent by facsimile, telecopy or other electronic
transmission device (provided that such an acknowledgement does not include an
acknowledgment generated automatically by a facsimile or telecopy machine or
other electronic transmission device). Notices, demands and communications to
Buyer, Seller and Calais will, unless another address is specified in writing,
be sent to the address indicated below:

     

    
      	
              If
      to Buyer:

               

              Elkhorn
      Goldfields, LLC

              c/o
      Black Diamond Financial Group LLC 

              PO
      Box 370657

              Denver,
      Colorado 80237

              Attn:  Patrick
      W.M. Imeson

              Facsimile:  303
      957 5536

               

            
	
              With
      a copy to:

               

              Christopher
      Kamper

              Carver
      Schwarz McNab & Bailey, LLC

              1600
      Stout Street, Suite 1700

              Denver,
      Colorado 80202 

               

            
	
              If
      to Calais:

               

              Dave
      Young, CEO

              8839
      West Crestline Drive

              Littleton,
      Colorado 80123

              Facsimile
      No. (720) 482-0957

               

            
	
              With
      a copies to:

               

              John
      R. Henderson

              Law
      Offices of John R. Henderson

              2960
      Diagonal Hwy. -Suite 207

              Boulder,
      Colorado 80301

              Facsimile
      No.:  720-971-7063

            

    

     

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    

    
      	
              and

               

              Thomas
      S. Hendricks

              PO
      Box 653

              425
      Caribou Rd.

              Nederland,
      Colorado 80466

               

            
	
              If
      to Seller:

               

              Apollo
      Gold Corporation

              5655
      South Yosemite Street, Suite 200

              Greenwood
      Village, Colorado  80111-3220

              Attn:  R.
      David Russell

              Facsimile
      No. (720) 482-0957

            
	 
      
	
              With
      a copy to:

               

              Davis
      Graham & Stubbs LLP

              1550
      Seventeenth Street, Suite 500

              Denver,
      Colorado  80202

              Attn:  Timothy
      D. Rampe

              Facsimile
      No. (303) 893-7413

            

    

     

    12.5 
Assignment.  Neither
this Agreement nor any of the rights, interests or obligations under this
Agreement may be assigned by any party to this Agreement without the prior
written consent of the other parties to this Agreement.  Subject to
the foregoing, this Agreement and all of the provisions of this Agreement will
be binding upon and inure to the benefit of the parties to this Agreement and
their respective successors and permitted assigns.

     

    12.6 
No Third-Party
Beneficiaries.  Nothing
expressed or referred to in this Agreement confers any rights or remedies upon
any Person that is not a party or permitted assign of a party to this
Agreement.

     

    12.7 
No Partnership and No
Corporate Opportunity.  Nothing
in this Agreement creates, or is intended to create, any partnership, joint
venture relationship, fiduciary relationship or relationship of confidence and
trust between or among the parties hereto.  Each party shall have the
right to engage in, and receive full benefits from, any independent business
activities or operations, whether or not competitive with the business
activities or operations of the other parties or the Company, without consulting
with, or obligation to, any of the other parties.  The doctrines of
corporate opportunity or business opportunity that sometimes apply to Persons
engaged in a joint venture or having a fiduciary relationship or a relationship
of confidence and trust shall not apply in the case of any of the parties to
this Agreement.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    12.8 
Severability.  Whenever
possible, each provision of this Agreement will be interpreted in such manner as
to be effective and valid under applicable Law, but if any provision of this
Agreement is held to be prohibited by or invalid under applicable Law, such
provision will be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Agreement.

     

    12.9 
Complete
Agreement.  Except
for the Joint Venture and all Contracts related thereto, this Agreement,
together with the Ancillary Agreements, contain the complete agreement between
the parties and supersede any prior understandings, agreements or
representations by or between the parties, written or oral, including the Letter
of Intent.

     

    12.10 
Signatures;
Counterparts.  This
Agreement may be executed in one or more counterparts, any one of which need not
contain the signatures of more than one party, but all such counterparts taken
together will constitute one and the same instrument.  A facsimile
signature will be considered an original signature.

     

    12.11 
Governing
Law.  THE DOMESTIC LAW, WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES, OF THE STATE OF COLORADO WILL GOVERN ALL QUESTIONS
CONCERNING THE CONSTRUCTION, VALIDITY AND INTERPRETATION OF THIS AGREEMENT AND
THE PERFORMANCE OF THE OBLIGATIONS IMPOSED BY THIS
AGREEMENT.

     

    12.12 
Specific
Performance.  Each
of the parties acknowledges and agrees that the subject matter of this
Agreement, including the business, assets and properties of the Company, is
unique, that the other parties would be damaged irreparably in the event any of
the provisions of this Agreement are not performed in accordance with their
specific terms or otherwise are breached, and that the remedies at law would not
be adequate to compensate such other parties not in default or in
breach.  Accordingly, each of the parties agrees that the other
parties will be entitled to an injunction or injunctions to prevent breaches of
the provisions of this Agreement and to enforce specifically this Agreement and
the terms and provisions of this Agreement in addition to any other remedy to
which they may be entitled, at law or in equity (without any requirement that
Buyer provide any bond or other security).  The parties waive any
defense that a remedy at law is adequate and any requirement to post bond or
provide similar security in connection with actions instituted for injunctive
relief or specific performance of this Agreement.

     

    12.13 
Jurisdiction.  Each
of the parties submits to the exclusive jurisdiction of any state or federal
court sitting in Denver, Colorado, in any action or proceeding arising out of or
relating to this Agreement and agrees that all claims in respect of the action
or proceeding may be heard and determined in any such court.  Each
party also agrees not to bring any action or proceeding arising out of or
relating to this Agreement in any other court.  Each of the parties
waives any defense of inconvenient forum to the maintenance of any action or
proceeding so brought and waives any bond, surety or other security that might
be required of any other party with respect to any such action or
proceeding.  The parties agree that either or both of them may file a
copy of this paragraph with any court as written evidence of the knowing,
voluntary and bargained agreement between the parties irrevocably to waive any
objections to venue or to convenience of forum.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    12.14 
Waiver of Jury
Trial.  EACH PARTY ACKNOWLEDGES AND AGREES
THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE
COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.  EACH
PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER, (II) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVER,
(III) IT MAKES SUCH WAIVER VOLUNTARILY AND (IV) IT HAS BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS
IN THIS SECTION 12.14.

     

    12.15 
Construction.  The
parties and their respective counsel have participated jointly in the
negotiation and drafting of this Agreement.  In addition, each of the
parties acknowledges that it is sophisticated and has been advised by
experienced counsel and, to the extent it deemed necessary, other advisors in
connection with the negotiation and drafting of this Agreement.  In
the event an ambiguity or question of intent or interpretation arises, this
Agreement will be construed as if drafted jointly by the parties and no
presumption or burden of proof will arise favoring or disfavoring any party by
virtue of the authorship of any of the provisions of this
Agreement.  Any reference to any Law will be deemed to refer to all
rules and regulations promulgated thereunder, unless the context requires
otherwise.  The headings preceding the text of articles and sections
included in this Agreement and the headings to the schedules and exhibits are
for convenience only and are not be deemed part of this Agreement or given
effect in interpreting this Agreement.  References to sections,
articles, schedules or exhibits are to the sections, articles, schedules and
exhibits contained in, referred to or attached to this Agreement, unless
otherwise specified.  The word “including” means “including without
limitation.”  When any party may take any permissive action, including
the granting of a Consent, the waiver of any provision of this Agreement or
otherwise, the decision whether to take such action is in its sole and absolute
discretion.  The use of the masculine, feminine or neuter gender or
the singular or plural form of words will not limit any provisions of this
Agreement.  A statement that an item is listed, disclosed or described
means that it is correctly listed, disclosed or described, and a statement that
a copy of an item has been delivered means a true and correct copy of the item
has been delivered.

     

    12.16 
Currency.  All
references in this Agreement to “$” are references to United States
dollars.

     

    12.17 
Time of
Essence.  With
regard to all dates and time periods set forth or referred to in this Agreement,
time is of the essence.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    12.18 
Consequential or
Special Damages.  IN
NO EVENT SHALL ANY PARTY HERETO BE LIABLE FOR ANY LOST PROFITS, BUSINESS
INTERRUPTION OR FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY
OR PUNITIVE DAMAGES ARISING OUT OF OR RELATING TO THE TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.

     

    [The
remainder of this page is intentionally left blank.]

     

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    IN WITNESS
WHEREOF, Buyer, Seller and Calais have executed this Purchase Agreement
as of the date first above written.

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                BUYER:

                              	 
      	
                                SELLER:

                              
	 	 	 
	
                                ELKHORN
      GOLDFIELDS LLC

                              	 
      	
                                APOLLO
      GOLD, INC.

                              
	 
      	 
      	 
      
	
                                By:

                              	
                                /s/ Patrick Imeson

                              	 
      	
                                By:

                              	
                                /s/
      Melvyn Williams

                              
	
                                Name:

                              	 
      	 
      	
                                Name:

                              	 
      
	
                                Title:

                              	
                                Managing Member

                              	 
      	
                                Title:

                              	
                                Chief Financial Officer

                              
	 
      	 
      	 
      
	 
      	 
      	
                                CALAIS:

                              
	 
      	 
      	 
      
	 
      	 
      	
                                CALAIS
      RESOURCES COLORADO, INC.

                              
	 
      	 
      	 
      
	 
      	 
      	
                                By:

                              	
                                /s/
      Thomas S. Hendricks

                              
	 
      	 
      	
                                Name:

                              	 
      
	 
      	 
      	
                                Title:

                              	
                                President

                              
	 
      	 
      	 
      
	 
      	 
      	
                                CALAIS
      RESOURCES, INC.

                              
	 
      	 
      	 
      
	 
      	 
      	
                                By:

                              	
                                /s/ David K. Young

                              
	 
      	 
      	
                                Name:

                              	 
      
	 
      	 
      	
                                Title:

                              	
                                President and Chief Executive
      Officer

                              

                      

                    

                  

                

              

            

          

        

      

    

     

    [Signature
Page to Purchase Agreement]

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
A

    

    CARIBOU
AND CROSS PROPERTIES

    

    Part 1 – Cross
Property

    

    7-49 LODE
(UNDIVIDED 1/3), U.S. Mineral Survey No. 16199,

    AIRSHAFT,
U.S. Mineral Survey No. 116,

    ALPINE
LODE, U.S. Mineral Survey No. 14286,

    AMANDA
LODE, U.S. Mineral Survey No. 13172,

    AMERICAN
LODE, U.S. Mineral Survey No. 14286,

    

    ANACONDA
LODE (SUBSURFACE MINERALS), U.S. Mineral Survey No. 12934,

    ANACONDA
LODE (T.S. HENDRICKS’ SURFACE), U.S. Mineral Survey No. 12934,

    APEX
LODE, U.S. Mineral Survey No. 14286,

    ARIZONA
LODE (WEST 900 FEET), U.S. Mineral Survey No.54,

    BOB TAIL
LODE (SUBSURFACE MINERALS), U.S. Mineral Survey No. 13180,

    

    BOB TAIL
LODE, SURFACE-(OWNED BY T.S. HENDRICKS), U.S. Mineral Survey No.
13180

    BROKEN
BOW LODE, (SUBSURFACE), U.S. Mineral Survey No. 13146,

    CENTRAL
LODE, U.S. Mineral Survey No. 481,

    CHIEF
LODE, U.S. Mineral Survey No. 15637,

    CONGER
LODE, U.S. Mineral Survey No. 94A,

    

    CROSS
LODE, U.S. Mineral Survey No. 518,

    CROSS
MILLSITE, U.S. Mineral Survey No. 20681B,

    CROSS NO.
2 LODE, U.S. Mineral Survey No. 20681A,

    CROWN
POINT LODE, U.S. Mineral Survey No. 6823,

    DEFIANCE
LODE, U.S. Mineral
Survey No. 5658,

    EMILIE
LODE (UNDIVIDED 1/3), U.S. Mineral Survey No. 16199

    

    GARFIELD
LODE (UNDIVIDED 3/8), U.S. Mineral Survey No. 522,

    GARFIELD
LODE (UNDIVIDED 5/8), U.S. Mineral Survey No. 522,

    GILPIN
COUNTY LODE, (SMITH TRUST MINING LEASE), U.S. Mineral Survey No.
12933,

    GOLD
COIN, U.S. Mineral Survey No. 18514,

    

    HOMESTEAD
LODE (SMITH TRUST MINING LEASE), U.S. Mineral Survey No. 13471,

    IDAHO
LODE (39/143 INT.), U.S. Mineral Survey No. 96A,

    IDAHO
MILLSITE (221/858 INT.), U.S. Mineral Survey No. 96B,

    IRON KING
(SUBSURFACE ONLY), U.S. Mineral Survey No. 16776,

    IRON KING
NO. 2, (SUBSURFACE ONLY), U.S. Mineral Survey No. 16776,

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    IRON
WONDER (SUBSURFACE ONLY), U.S. Mineral Survey No. 16776,

    ISABEL
LODE (UNDIVIDED 2/12/), U.S. Mineral Survey No. 170,

    JULIET
LODE, U.S. Mineral Survey No. 13272,

    LAFAYETTE
LODE (SUBSURFACE MINERALS), U.S. Mineral Survey No. 12934,

    LAFAYETTE
LODE (SURFACE-THOMAS S. HENDRICKS), U.S. Mineral Survey No. 12394,

    LARAMIE
COUNTY LODE (SMITH TRUST MINING LEASE), U.S. Mineral Survey No.
13471,

    LARAMIE
COUNTY NO. 2 LODE, U.S. Mineral Survey No. 13471,

    L.S. ROOT
MILLSITE, U.S. Mineral Survey No. 117,

    MAINE
LODE, U.S. Mineral Survey No. 102,

    MAMMOTH
LODE, U.S. Mineral Survey No. 13272,

    MONTICELLO
LODE, U.S. Mineral Survey No. 15637,

    NATION
LODE, U.S. Mineral Survey No. 12985,

    NATION
NO. 2 LODE, U.S. Mineral Survey No. 15637,

    NATION
NO. 3 LODE, U.S. Mineral Survey No. 15637,

    PAY ROCK
LODE, U.S. Mineral Survey No. 8480,

    PONDEROSA
LODE, U.S. Mineral Survey No. 13172,

    POTOSI
LODE, U.S. Mineral Survey No. 48,

    PROTECTION
LODE, U.S. Mineral Survey No. 13272,

    RARE
METALS LODE, U.S. Mineral Survey No. 20681A,

    RARE
METALS MILLSITE, U.S. Mineral Survey No. 20681B,

    READY
CASH LODE, U.S. Mineral Survey No. 6852,

    RICO
LODE, U.S. Mineral Survey No. 14286,

    ROBERTS
PLACER (SUBSURFACE ONLY), U.S. Mineral Survey No. 14284,

    ROMEO
LODE, U.S. Mineral Survey No. 13272,

    SILVER
BRICK LODE, U.S. Mineral Survey No. 159,

    SILVER
POINT LODE, U.S. Mineral Survey No. 39,

    SMUGGLER
LODE, U.S. Mineral Survey No. 13219,

    SUNNY
VIEW LODE, U.S. Mineral Survey No. 13471,

    SYNDICATE
LODE, U.S. Mineral Survey No. 15609,

    TACOMA
LODE, U.S. Mineral Survey No. 13272,

    TEN FORTY
LODE, U.S. Mineral Survey No. 287,

    WINDY
POINT LODE, U.S. Mineral Survey No. 16926,

    WORCESTER
LODE, U.S. Mineral Survey No. 14286,

    County of
Boulder, State of Colorado

    

    Part 2 – Caribou
Property

    

    AMERICAN
FLAG LODE, U.S. Mineral Survey No. 12790,

    ARIZONA
LODE (EAST 500 FEET), U.S. Mineral Survey No. 54,

    

    ARLET NO.
1 LODE, U.S. Mineral Survey No. 16705,

    ARLET NO.
2 LODE, U.S. Mineral Survey No. 16705,

    ARLET NO.
3 LODE, U.S. Mineral Survey No. 16705,

    ARLET NO.
4 LODE, U.S. Mineral Survey No. 16705,

    

    BARABLAS
LODE, U.S. Mineral Survey No. 15588,

    BELCHER
LODE, U.S. Mineral Survey No. 150,

    BRAZILIAN
LODE, U.S. Mineral Survey No. 13367A,

    BRAZILIAN
MILLSITE, U.S. Mineral Survey No. 13367B,

    

    CALIFORNIA
LODE, U.S. Mineral Survey No. 20483,

    CANADIAN
LODE (UNDIVIDED 3/8), U.S. Mineral Survey No. 666,

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    CANDIA
LODE, U.S. Mineral Survey No. 20483,

    CARIBOU
LODE, U.S. Mineral Survey No. 37,

    CARRY
LODE, U.S. Mineral Survey No. 660,

    

    COLUMBIA
LODE, U.S. Mineral Survey No. 167,

    COMSTOCK
LODE, U.S. Mineral Survey No. 52,

    DEVELING
LODE, U.S. Mineral Survey No. 13510,

    DOUGLAS
LODE, U.S. Mineral Survey No. 47,

    EAGLE
BIRD LODE, U.S. Mineral Survey No. 12790,

    

    EAST
IDAHO LODE (UNDIVIDED 50%), U.S. Mineral Survey No. 346,

    EAST ST.
LOUIS LODE, U.S. Mineral Survey No. 14592,

    ENTERPRISE
LODE (UNDIVIDED 50%), U.S. Mineral Survey No. 19828,

    EUREKA
LODE, U.S. Mineral Survey No. 13685,

    EXTENSION
LODE, U.S. Mineral Survey No. 92,

    

    FANNIE
LODE, U.S. Mineral Survey No. 659,

    FEDERAL
LODE, U.S. Mineral Survey No. 91,

    GOLCONDA
LODE, U.S. Mineral Survey No. 192,

    GRAND
ISLAND LODE, U.S. Mineral Survey No. 61,

    GRAND
VIEW LODE, U.S. Mineral Survey No. 297,

    

    GRANT
COUNTY LODE, U.S. Mineral Survey No. 115,

    HIDDEN
TREASURE LODE, U.S. Mineral Survey No. 105,

    ISABEL
LODE (UNDIVIDED 10/12), U.S. Mineral Survey No. 170,

    IXL LODE,
U.S. Mineral Survey No. 85,

    

    JAY LODE,
U.S. Mineral Survey No. 169,

    KALAMAZOO
LODE, U.S. Mineral Survey No. 76,

    KLONDIKE
LODE, U.S. Mineral Survey No. 14592,

    LAST
CHANCE LODE, U.S. Mineral Survey No. 14246,

    LITTLE
EDDIE LODE, U.S. Mineral Survey No. 716,

    

    LOST
LODE, U.S. Mineral Survey No. 56,

    MONADNOC
LODE, U.S. Mineral Survey No. 274,

    MONITOR
LODE, U.S. Mineral Survey No. 227,

    NATIONAL
PLACER, U.S. Mineral Survey No. 17718,

    NAUTILIS
LODE, U.S. Mineral Survey No. 452,

    

    NEW YORK
LODE, U.S. Mineral Survey No. 344A,

    NEW YORK
MILLSITE, U.S. Mineral Survey No. 344B,

    NO NAME
LODE, U.S. Mineral Survey No. 77,

    NON
PARIEL, U.S. Mineral Survey No. 6853,

    NORTH
STAR LODE, U.S. Mineral Survey No.
5269,

    

    NORTHPARK
LODE, U.S. Mineral Survey No. 20483,

    NORTHWESTERN
LODE, U.S. Mineral Survey No. 429,

    ONATRIO
LODE (SOUTHEASTERLY 500 FEET), U.S. Mineral Survey No.
55,

    ONTARIO
LODE (WEST 900 FEET), U.S. Mineral Survey No.
55,

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    OPHIR
LODE, U.S. Mineral Survey No. 587,

    

    PANDORA
#1 LODE, U.S. Mineral Survey No. 20597,

    PANDORA
#4 LODE, U.S. Mineral Survey No. 20597,

    POORMAN
LODE, U.S. Mineral Survey No. 42,

    PROMISE
LODE, U.S. Mineral Survey No. 149,

    SEVEN
THIRTY LODE, U.S. Mineral Survey No.
71,

    

    SHERMAN
LODE, U.S. Mineral Survey No. 93,

    SILVER
DOLLAR LODE, U.S. Mineral Survey No. 654, S

    OCORRO
LODE, U.S. Mineral
Survey No. 104,

    SPENCER
LODE, U.S. Mineral Survey No. 168,

    STANDARD
NO. 6 LODE, U.S. Mineral Survey No. 16705,

    

    STANDARD
NO. 8 LODE, U.S. Mineral Survey No. 16705,

    STANDARD
NO. 9 LODE, U.S. Mineral Survey No. 16705,

    STATEN
ISLAND LODE, U.S. Mineral Survey No. 124,

    TOLEDO
LODE, U.S. Mineral Survey No. 20483,

    County of
Boulder, State of Colorado

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    CONGO
PROPERTY

    

    Congo
Chief Lode Mining Claim, Survey No. 20305, embracing a portion of Sections 4 and
5, in Township 1 South, Range 73 West of the 6th P.M.,
in the Grand Island Mining District, County of Boulder, State of
Colorado.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
C

    

    CROSS-CARIBOU
DEEDS OF TRUST

    

    Deed of
Trust from Aardvark Agencies, Inc. to the Public Trustee of the County in which
property is located, for the benefit of Broadway Mortgage Corporation, Michael
E. Haws, Kemp Hanley, R. Britton Colbert, Accounts Plus, Inc and Riviera
Holdings, LLC securing an original principal indebtedness of $4,500,000.00 and
any other amounts and/or obligations, dated July 31, 2003 and recorded September
5, 2003 at Reception No. 2798812.

     

    Deed of
Trust from Calais Resources Colorado, Inc. to the Public Trustee of the County
in which property is located, for the benefit of Broadway Mortgage Corporation,
Michael E. Haws, Kemp Hanley, R. Britton Colbert, Accounts Plus, Inc and Riviera
Holdings, LLC securing an original principal indebtedness of $4,500,000.00 and
any other amounts and/or obligations, dated July 31, 2003 and recorded September
5, 2003 at Reception No. 2798813.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
D

    

    CONGO
DEED OF TRUST

    

    Deed of
Trust from Calais Resources, Inc. to the Boulder County Public Trustee, for the
benefit of MFPI Partners, LLC securing an original principal indebtedness of
$258,956.40 and any other amounts and/or obligations, dated December 16, 2005
and recorded December 20, 2005 at Reception No. 02745592.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
E

    

    INSTRUMENT
OF ASSIGNMENT

    

    After
recording, return to:

    

    Apollo
Gold, Inc.

    5655
South Yosemite Street, Suite 200

    Greenwood
Village, CO  80111-3220

    Attn:  R.
David Russell

    

    ASSIGNMENT
OF LOAN PROPERTY

    AND

    AMENDMENT
TO DEED OF TRUST

    

    THIS
ASSIGNMENT OF LOAN PROPERTY AND AMENDMENT TO DEED OF TRUST (this “Assignment”)
is made and entered into as of the 1st day of February, 2010 by (1) Elkhorn
Goldfields, LLC, a Delaware limited liability company (“Elkhorn”), and MFPI
Partners, LLC, a Delaware limited liability company (“MFPI”, and, collectively
with Elkhorn, “Assignor”), and (2) Calais Resources Colorado, Inc., a Nevada
corporation (“Grantor”), collectively for the benefit of Apollo Gold, Inc., a
Delaware corporation (“Assignee”).

    

    RECITALS

    

    This
Assignment is made with respect to the following facts:

    

    1.           Grantor,
collectively with Calais Resources, Inc., a British Columbia corporation
(“Calais Parent”), and Aardvark Agencies, Inc., a Washington corporation
(“Aardvark” and collectively with Grantor and Calais Parent, “Borrowers”), is
the borrower under a loan (the “Loan”) evidenced by (a) a Promissory Note dated
August 1, 2003, in the original principal amount of $4,500,000 (the “Original
Promissory Note”), (b) a Loan Agreement dated August 1, 2003 (the “Loan
Agreement”), and (c) related loan documents described therein (collectively with
the Original Promissory Note and the Loan Agreement, as subsequently amended and
assigned, the “Loan Property”), from Broadway Mortgage Corporation and the other
parties named therein (collectively the “Original Lenders”).

    2.           The
Loan is secured in part by (a) a Real Estate Deed of Trust (with future advance
clause) from Grantor to the Original Lenders, dated August 1, 2003, and recorded
in the Clerk and Recorder’s Office of Boulder County, Colorado (“Recorder’s
Office”), on September 5, 2003, at Reception No. 2498813 (the “Grantor Deed of
Trust”), with respect to the property described on Exhibit A attached hereto
(the “Grantor Property”); and (b) a Real Estate Deed of Trust (with future
advance clause) from Aardvark to the Original Lenders, dated August 1, 2003, and
recorded in the Recorder’s Office on September 5, 2003, at Reception No. 2498812
(the “Aardvark Deed of Trust”), with respect to the property described on
Exhibit B attached hereto (the “Aardvark Property”).

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    3.           On
or about December 15, 2005, as evidenced by multiple Assignments recorded in the
Recorder’s Office from the Original Lenders and assignees thereof, the Original
Promissory Note, the Grantor Deed of Trust, the Aardvark Deed of Trust and the
other Loan Property were assigned to Calim Private Equity, LLC, a Delaware
limited liability company (“Calim”).

    4.           The
Original Promissory Note was amended by Allonges dated December 15, 2005, and
December 15, 2006, to increase the outstanding principal balance payable
thereunder to $5,222,095.88 (collectively with the Original Promissory Note, the
“Promissory Note”), which Allonges recited MFPI, an affiliate of Calim, as the
noteholder.

    5.           On
or about December 4, 2006, as evidenced by Assignments recorded in the
Recorder’s Office at Reception Numbers 2823456 and 2823458, the Loan Property
was assigned by Calim to Elkhorn.

    6.           As
evidenced by Assignments recorded in the Recorder’s Office at Reception Numbers
2823457, 2823459, 2829907 and 2829908, Elkhorn collaterally assigned Elkhorn’s
rights in the Loan Property to the Irrevocable Trust U/W John H. Evans and the
other parties named therein (collectively, the “Elkhorn Investors”), as security
for a separate loan transaction between Elkhorn and the Elkhorn
Investors.

    7.           By
Assignment of even date herewith, the Elkhorn Investors have conveyed and
released back to Elkhorn all of the Elkhorn Investors’ right, title and interest
in and to the Loan Property.

    8.           Pursuant
to Purchase Agreement of even date herewith by and among Elkhorn, Grantor,
Calais Parent and Assignee, Assignor has agreed to assign to Assignee the Loan
Property and all rights and interests of Assignor thereunder and with respect
thereto.

    9.           MFPI
desires to join this Assignment collectively with Elkhorn as Assignor to convey
all right, title and interest MFPI may hold, if any, in and to the Loan Property
to Assignee.

    10.         Grantor
desires to (a) provide Assignee assurances on certain matters with respect to
the Loan; (b) amend the Grantor Deed of Trust; and (c) provide assurances on
certain matters with respect to the Aardvark Deed of Trust, all as more
particularly described herein.

    ASSIGNMENT

    

    NOW, THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Assignor and Grantor hereby agree
as follows:

    

    1.           Assignment.  Assignor,
as the present holder of the Promissory Note, the Grantor Deed of Trust, the
Aardvark Deed of Trust and other Loan Property, hereby assigns to Assignee the
Loan Property, to have and to hold said Loan Property subject to the terms
contained therein, together with all moneys now owing or that may hereafter
become due or owing in respect thereof, and the full benefit of all powers,
covenants and provisions contained therein.  Assignor hereby grants
and conveys to Assignee all of Assignor’s interest under the Loan Property in
the Grantor and the Aardvark Properties.  Nothing in the foregoing or
elsewhere in this Assignment is intended to alter, amend, or waive any
enforcement rights against the Grantor, the Borrowers or any other party named
in any of the loan documents constituting the Loan Property.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.           Grantor
Representations and Warranties.  In order to induce Assignee to accept
this Assignment, Grantor hereby represents and warrants to Assignee and
Assignee’s successors and assigns that (a) Grantor is the sole, absolute owner
of the Grantor Property; (b) the documents constituting the Loan Property are
each valid, binding, in full force and effect, and enforceable against Grantor
in accordance with their terms, except to the extent enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting the enforcement of creditors’ rights generally and by
general equitable principles; (c) Grantor intends to fully satisfy its
obligations in respect of the Loan Property; (d) except for the fact that the
Promissory Note is past due, there are no existing defaults by Grantor or, to
the knowledge of Grantor, the other parties thereto under the terms of the
documents constituting the Loan Property; (e) Grantor has no defenses, set-offs,
or counterclaims against Assignee (or any other holder of the Loan Property
including, after the date hereof, Assignor) under any of the documents
constituting the Loan Property; and (f) no portion of the Loan was repaid
through the sale of the “Broadway Stock” (as that term is defined in the Loan
Agreement), any past or future sale of the “Broadway Stock” shall in no manner
limit, alter or affect Grantor’s obligation to repay in full all amounts
outstanding under the Loan, and Grantor shall not raise the “Broadway Stock” (or
the issuance or sale thereof) as a defense, set-off or counterclaim to the
repayment of the Loan.

    3.           Grantor
Deed of Trust. Grantor hereby amends Section 3 of the Grantor Deed of Trust to
provide that the total principal amount secured by the Grantor Deed of Trust is
$5,222,095.88.

    4.           Aardvark
Deed of Trust. For the benefit of Assignee, Grantor hereby agrees and
acknowledges the foregoing with respect to the Aardvark Deed of
Trust:

    a.           The
Deed of Trust dated July 31, 1999, recorded on February 5, 1999, in the
Recorder’s Office at Reception No. 1902445, between Aardvark, as borrower, and
Grantor, as beneficiary, is and shall remain subject to, subordinate and junior
to the lien of the Aardvark Deed of Trust, and Grantor affirms that Assignee
shall have from and after the date hereof the full benefit and all covenants,
representations and warranties of Grantor contained in the Subordination
Agreement recorded in the Recorder’s Office on September 5, 2003, at Reception
Number 2498814.

    b.           In
the event Grantor re-acquires the Aardvark Property pursuant to the terms of the
Right to Redeem and Re-acquire Agreement, dated March 26, 1999, between Aardvark
and Grantor, the Right to Redeem and Re-acquire Agreement, dated July 20, 2000,
between Aardvark and Grantor, and the Settlement Agreement and Mutual General
Release, dated March 9, 2004, among Grantor, Aardvark and the other parties
thereto, or otherwise, Grantor shall take title subject to the lien of the
Aardvark Deed of Trust and agrees to comply with all terms thereof as if Grantor
were the original grantor thereunder.

    5.           Miscellaneous.

    a.           This
Assignment shall be governed by and construed in accordance with the internal
laws of the State of Colorado without giving effect to any choice or conflict of
law provision or rule that would cause the application of the laws of any
jurisdiction other than those of the State of Colorado.

    b.           This
Assignment may be signed in counterparts, but taken together, shall constitute
one legal instrument.

    c.           Should
any provision of this Assignment be declared or determined to be null and void,
inoperative, illegal or invalid for any reason, the validity of the remaining
parts, terms or provisions shall not be affected thereby and they shall retain
their full force and effect and said null, void, inoperative, illegal or invalid
part, term or provision, shall be deemed not to be part of this
Assignment.

    d.           The
Recitals of this Assignment are incorporated herein by this
reference.

    e.           The
provisions of this Assignment shall bind and benefit the parties hereto and
their respective successors and permitted assigns.

    

    [SIGNATURES
APPEAR ON NEXT PAGE]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, Assignor and Grantor have each executed this Assignment,
effective as of the day and year first written above.

    

    ELKHORN
GOLDFIELDS, LLC,

    a
Delaware limited liability company

    

    By:

    Name:

    Its:

    

    MFPI
PARTNERS, LLC,

    a
Delaware limited liability company

    

    By:

    Name:

    Its:

    

    CALAIS
RESOURCES COLORADO, INC.,

    a Nevada
corporation

    

    By:

    Name:

    Its:

     

    STATE OF
_____________          
    )

    )
ss.

    COUNTY OF
_____________           )

    

    The
foregoing instrument was acknowledged before me the ___ day of January, 2010, by
__________________________ as __________________ for Elkhorn Goldfields, LLC, a
Delaware limited liability company.

    

    Witness
my hand and official seal.

    My
commission expires: ___________________________

     

    Notary
Public

    

    STATE OF
_____________               )

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    )
ss.

    COUNTY OF
_____________           )

    

    The
foregoing instrument was acknowledged before me the ___ day of January, 2010, by
___________________________ as __________________ for MFPI Partners, LLC, a
Delaware limited liability company.

    

    Witness
my hand and official seal.

    My
commission expires: ___________________________

     

    Notary
Public

     

    STATE OF
_____________              
)

    )
ss.

    COUNTY OF
_____________           )

    

    The
foregoing instrument was acknowledged before me the ___ day of January, 2010, by
___________________________ as __________________ for Calais Resources Colorado,
Inc., a Nevada corporation.

    

    Witness
my hand and official seal.

    My
commission expires: ___________________________

     

    Notary
Public

     

    Exhibit
A

    

    Legal
Description of Grantor Property

    

    7-49 LODE
(UNDIVIDED 1/3), U.S. Mineral Survey No. 16199,

    AIRSHAFT,
U.S. Mineral Survey No. 116,

    ALPINE
LODE, U.S. Mineral Survey No. 14286,

    AMANDA
LODE, U.S. Mineral Survey No. 13172,

    AMERICAN
LODE, U.S. Mineral Survey No. 14286,

    

    ANACONDA
LODE (SUBSURFACE MINERALS), U.S. Mineral Survey No. 12934,

    ANACONDA
LODE (T.S. HENDRICKS’ SURFACE), U.S. Mineral Survey No. 12934,

    APEX
LODE, U.S. Mineral Survey No. 14286,

    ARIZONA
LODE (WEST 900 FEET), U.S. Mineral Survey No.54,

    BOB TAIL
LODE (SUBSURFACE MINERALS), U.S. Mineral Survey No. 13180,

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    BOB TAIL
LODE, SURFACE-(OWNED BY T.S. HENDRICKS), U.S. Mineral Survey No.
13180

    BROKEN
BOW LODE, (SUBSURFACE), U.S. Mineral Survey No. 13146,

    CENTRAL
LODE, U.S. Mineral Survey No. 481,

    CHIEF
LODE, U.S. Mineral Survey No. 15637,

    CONGER
LODE, U.S. Mineral Survey No. 94A,

    

    CROSS
LODE, U.S. Mineral Survey No. 518,

    CROSS
MILLSITE, U.S. Mineral Survey No. 20681B,

    CROSS NO.
2 LODE, U.S. Mineral Survey No. 20681A,

    CROWN
POINT LODE, U.S. Mineral Survey No. 6823,

    DEFIANCE
LODE, U.S. Mineral Survey No. 5658,

    EMILIE
LODE (UNDIVIDED 1/3), U.S. Mineral Survey No. 16199

    

    GARFIELD
LODE (UNDIVIDED 3/8), U.S. Mineral Survey No. 522,

    GARFIELD
LODE (UNDIVIDED 5/8), U.S. Mineral Survey No. 522,

    GILPIN
COUNTY LODE, (SMITH TRUST MINING LEASE), U.S. Mineral Survey No.
12933,

    GOLD
COIN, U.S. Mineral Survey No. 18514,

    

    HOMESTEAD
LODE (SMITH TRUST MINING LEASE), U.S. Mineral Survey No. 13471,

    IDAHO
LODE (39/143 INT.), U.S. Mineral Survey No. 96A,

    IDAHO
MILLSITE (221/858 INT.), U.S. Mineral Survey No. 96B,

    IRON KING
(SUBSURFACE ONLY), U.S. Mineral Survey No. 16776,

    IRON KING
NO. 2, (SUBSURFACE ONLY), U.S. Mineral Survey No. 16776,

    

    IRON
WONDER (SUBSURFACE ONLY), U.S. Mineral Survey No. 16776,

    ISABEL
LODE (UNDIVIDED 2/12/), U.S. Mineral Survey No. 170,

    JULIET
LODE, U.S. Mineral Survey No. 13272,

    LAFAYETTE
LODE (SUBSURFACE MINERALS), U.S. Mineral Survey No. 12934,

    LAFAYETTE
LODE (SURFACE-THOMAS S. HENDRICKS), U.S. Mineral Survey No. 12394,

    LARAMIE
COUNTY LODE (SMITH TRUST MINING LEASE), U.S. Mineral Survey No.
13471,

    LARAMIE
COUNTY NO. 2 LODE, U.S. Mineral Survey No. 13471,

    L.S. ROOT
MILLSITE, U.S. Mineral Survey No. 117,

    MAINE
LODE, U.S. Mineral Survey No. 102,

    MAMMOTH
LODE, U.S. Mineral Survey No. 13272,

    MONTICELLO
LODE, U.S. Mineral Survey No. 15637,

    NATION
LODE, U.S. Mineral Survey No. 12985,

    NATION
NO. 2 LODE, U.S. Mineral Survey No. 15637,

    NATION
NO. 3 LODE, U.S. Mineral Survey No. 15637,

    PAY ROCK
LODE, U.S. Mineral Survey No. 8480,

    PONDEROSA
LODE, U.S. Mineral Survey No. 13172,

    POTOSI
LODE, U.S. Mineral Survey No. 48,

    PROTECTION
LODE, U.S. Mineral Survey No. 13272,

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    RARE
METALS LODE, U.S. Mineral Survey No. 20681A,

    RARE
METALS MILLSITE, U.S. Mineral Survey No. 20681B,

    READY
CASH LODE, U.S. Mineral Survey No. 6852,

    RICO
LODE, U.S. Mineral Survey No. 14286,

    ROBERTS
PLACER (SUBSURFACE ONLY), U.S. Mineral Survey No. 14284,

    ROMEO
LODE, U.S. Mineral Survey No. 13272,

    SILVER
BRICK LODE, U.S. Mineral Survey No. 159,

    SILVER
POINT LODE, U.S. Mineral Survey No. 39,

    SMUGGLER
LODE, U.S. Mineral Survey No. 13219,

    SUNNY
VIEW LODE, U.S. Mineral Survey No. 13471,

    SYNDICATE
LODE, U.S. Mineral Survey No. 15609,

    TACOMA
LODE, U.S. Mineral Survey No. 13272,

    TEN FORTY
LODE, U.S. Mineral Survey No. 287,

    WINDY
POINT LODE, U.S. Mineral Survey No. 16926,

    WORCESTER
LODE, U.S. Mineral Survey No. 14286,

    County of
Boulder, State of Colorado

    

    Exhibit
B

    

    Legal
Description of Aardvark Property

    

    AMERICAN
FLAG LODE, U.S. Mineral Survey No. 12790,

    ARIZONA
LODE (EAST 500 FEET), U.S. Mineral Survey No. 54,

    

    ARLET NO.
1 LODE, U.S. Mineral Survey No. 16705,

    ARLET NO.
2 LODE, U.S. Mineral Survey No. 16705,

    ARLET NO.
3 LODE, U.S. Mineral Survey No. 16705,

    ARLET NO.
4 LODE, U.S. Mineral Survey No. 16705,

    

    BARABLAS
LODE, U.S. Mineral Survey No. 15588,

    BELCHER
LODE, U.S. Mineral Survey No. 150,

    BRAZILIAN
LODE, U.S. Mineral Survey No. 13367A,

    BRAZILIAN
MILLSITE, U.S. Mineral Survey No. 13367B,

    

    CALIFORNIA
LODE, U.S. Mineral Survey No. 20483,

    CANADIAN
LODE (UNDIVIDED 3/8), U.S. Mineral Survey No. 666,

    CANDIA
LODE, U.S. Mineral Survey No. 20483,

    CARIBOU
LODE, U.S. Mineral Survey No. 37,

    CARRY
LODE, U.S. Mineral Survey No. 660,

    

    COLUMBIA
LODE, U.S. Mineral Survey No. 167,

    COMSTOCK
LODE, U.S. Mineral Survey No. 52,

    DEVELING
LODE, U.S. Mineral Survey No. 13510,

    DOUGLAS
LODE, U.S. Mineral Survey No. 47,

    EAGLE
BIRD LODE, U.S. Mineral Survey No. 12790,

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EAST
IDAHO LODE (UNDIVIDED 50%), U.S. Mineral Survey No. 346,

    EAST ST.
LOUIS LODE, U.S. Mineral Survey No. 14592,

    ENTERPRISE
LODE (UNDIVIDED 50%), U.S. Mineral Survey No. 19828,

    EUREKA
LODE, U.S. Mineral Survey No. 13685,

    EXTENSION
LODE, U.S. Mineral Survey No. 92,

    

    FANNIE
LODE, U.S. Mineral Survey No. 659,

    FEDERAL
LODE, U.S. Mineral Survey No. 91,

    GOLCONDA
LODE, U.S. Mineral Survey No. 192,

    GRAND
ISLAND LODE, U.S. Mineral Survey No. 61,

    GRAND
VIEW LODE, U.S. Mineral Survey No. 297,

    

    GRANT
COUNTY LODE, U.S. Mineral Survey No. 115,

    HIDDEN
TREASURE LODE, U.S. Mineral Survey No. 105,

    ISABEL
LODE (UNDIVIDED 10/12), U.S. Mineral Survey No. 170,

    IXL LODE,
U.S. Mineral Survey No. 85,

    

    JAY LODE,
U.S. Mineral Survey No. 169,

    KALAMAZOO
LODE, U.S. Mineral Survey No. 76,

    KLONDIKE
LODE, U.S. Mineral Survey No. 14592,

    LAST
CHANCE LODE, U.S. Mineral Survey No. 14246,

    LITTLE
EDDIE LODE, U.S. Mineral Survey No. 716,

    

    LOST
LODE, U.S. Mineral Survey No. 56,

    MONADNOC
LODE, U.S. Mineral Survey No. 274,

    MONITOR
LODE, U.S. Mineral Survey No. 227,

    NATIONAL
PLACER, U.S. Mineral Survey No. 17718,

    NAUTILIS
LODE, U.S. Mineral Survey No. 452,

    

    NEW YORK
LODE, U.S. Mineral Survey No. 344A,

    NEW YORK
MILLSITE, U.S. Mineral Survey No. 344B,

    NO NAME
LODE, U.S. Mineral Survey No. 77,

    NON
PARIEL, U.S. Mineral Survey No. 6853,

    NORTH
STAR LODE, U.S. Mineral Survey No. 5269,

    

    NORTHPARK
LODE, U.S. Mineral Survey No. 20483,

    NORTHWESTERN
LODE, U.S. Mineral Survey No. 429,

    ONATRIO
LODE (SOUTHEASTERLY 500 FEET), U.S. Mineral Survey No. 55,

    ONTARIO
LODE (WEST 900 FEET), U.S. Mineral Survey No. 55,

    OPHIR
LODE, U.S. Mineral Survey No. 587,

    

    PANDORA
#1 LODE, U.S. Mineral Survey No. 20597,

    PANDORA
#4 LODE, U.S. Mineral Survey No. 20597,

    POORMAN
LODE, U.S. Mineral Survey No. 42,

    PROMISE
LODE, U.S. Mineral Survey No. 149,

    SEVEN
THIRTY LODE, U.S. Mineral Survey No. 71,

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SHERMAN
LODE, U.S. Mineral Survey No. 93,

    SILVER
DOLLAR LODE, U.S. Mineral Survey No. 654, S

    OCORRO
LODE, U.S. Mineral Survey No. 104,

    SPENCER
LODE, U.S. Mineral Survey No. 168,

    STANDARD
NO. 6 LODE, U.S. Mineral Survey No. 16705,

    

    STANDARD
NO. 8 LODE, U.S. Mineral Survey No. 16705,

    STANDARD
NO. 9 LODE, U.S. Mineral Survey No. 16705,

    STATEN
ISLAND LODE, U.S. Mineral Survey No. 124,

    TOLEDO
LODE, U.S. Mineral Survey No. 20483,

    County of
Boulder, State of Colorado

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
F

    

    ENDORSEMENT

    [Cross
Caribou Note]

    

    This Endorsement is attached to and
made a part of that certain Promissory Note dated August 1, 2003, as amended by
Allonge to Promissory Note dated December 15, 2005, and Allonge to Promissory
Note dated December 15, 2006, with a maximum outstanding principal balance of
$5,222,095.88 (collectively, the “Promissory Note”), originally
made by Calais Resources, Inc., Calais Resources Colorado, Inc., and Aardvark
Agencies, Inc. (collectively, the “Makers”) to Broadway Mortgage
Corporation, Riviera Holdings, LLC, Michael E. Haws, Kemp Hanley, R. Britton
Colbert, and Accounts Plus, Inc., and currently held by Elkhorn Goldfields, LLC,
a Delaware limited liability company (“Holder”).

    

    For valuable consideration, the receipt
and adequacy of which is hereby acknowledged, Holder hereby, unconditionally
transfers, assigns and endorses to Apollo Gold, Inc., a Delaware corporation,
all of Holder’s right, title and interest in and to the Promissory Note and all
forms of collateral and security under the Promissory Note.  This
transfer, assignment and endorsement is made without recourse to Holder,
provided nothing in the foregoing is intended to alter, amend, or waive any
enforcement rights against the Maker of the Promissory Note.

     

    ELKHORN
GOLDFIELDS, LLC,

    a
Delaware limited liability company

     

    
      
        
          
            
              	
                      By:

                    	  
      
	
                      Name:

                    	  
      
	
                      Its:

                    	  
      

            

          

        

      

    

     

    
      	STATE OF                                    	)	 
	
              COUNTY OF                                

            	
              )
      ss.

              )

            	 

    

    

    Acknowledged before me, a notary
public, this _____ day of January, 2010, by ______________________________ as
_____________________ for Elkhorn Goldfields, LLC, a Delaware limited liability
company.

    

    Witness my hand and official
seal.

    

    My Commission
Expires:_____________________.

    

    
      
        	
                ___________________________________________

              
	
                Notary
      Public

              

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Endorsement

    [Congo
Chief Note]

     

    This Endorsement is attached to and
made a part of that certain Promissory Note dated December 16, 2005, with an
original principal balance of $258,956.40 (the “Promissory Note”), made by
Calais Resources, Inc. (the “Maker”) to MFPI Partners, LLC, a Delaware limited
liability company (“Holder”).

    

    For valuable consideration, the receipt
and adequacy of which is hereby acknowledged, Holder hereby, unconditionally
transfers, assigns and endorses to Apollo Gold, Inc., a Delaware corporation,
all of Holder’s right, title and interest in and to the Promissory Note and all
forms of collateral and security under the Promissory Note.  This
transfer, assignment and endorsement is made without recourse to Holder,
provided nothing in the foregoing is intended to alter, amend, or waive any
enforcement rights against the Maker of the Promissory Note.

     

    MFPI
PARTNERS, LLC,

    a
Delaware limited liability company

     

    
      
        
          
            
              	
                      By:

                    	  
      
	
                      Name:

                    	  
      
	
                      Its:

                    	  
      

            

          

        

      

    

     

    
      	STATE OF                                    	)	 
	
              COUNTY OF                                

            	
              )
      ss.

              )

            	 

    

     

    Acknowledged before me, a notary
public, this _____ day of January, 2010, by ______________________________ as
_____________________ for MFPI Partners, LLC, a Delaware limited liability
company.

    

    Witness my hand and official
seal.

    

    My Commission
Expires:_____________________.

     

    
      
        	
                ___________________________________________

              
	
                Notary
PublicPROMISSORY
NOTE

     

    
      
        
          
            
              	$	1,458,582	 	
                      February
      1, 2010

                    

            

          

        

      

    

     

    FOR VALUE
RECEIVED, the undersigned, each of Calais Resources, Inc. and Calais Resources
Colorado, Inc. (together, “Maker”), hereby
jointly and severally promises to pay to Apollo Gold Corporation (“Holder”) the
principal amount of $1,458,582 (which
amount constitutes the principal of the Loans (as defined below) plus accrued
interest to the date of execution) to be paid together with any accrued but
unpaid interest thereon on February 1, 2011 (the “Maturity
Date”).  This Note is being delivered pursuant to Section 7.9
of the Purchase Agreement, of even date herewith, among Maker, Holder and the
other parties thereto (the “Purchase
Agreement”).

     

    From time
to time beginning on or about August 28, 2006 and continuing until on or about
August 3, 2007, MFPI Partners, LLC advanced various amounts in cash to Maker
totaling $1,170,500 (the “Loans”).  These
advances were intended as loans which were to be repaid by Maker at 8% interest,
compounded monthly.  Prior to the date hereof, MFPI Partners, LLC
assigned the Loans to Elkhorn Goldfields, LLC.  Maker is executing
this Note to evidence the principal and accrued and unpaid interest under the
Loans.  Pursuant to the Purchase Agreement, the Loans were transferred
to Holder and Maker acknowledges that the execution and delivery of this Note
was a condition precedent to the consummation of the transactions contemplated
by the Purchase Agreement and, but for the delivery of this Note, Holder would
not have consummated the transactions contemplated by the Purchase
Agreement.  In addition, Maker (i) acknowledges receipt of the cash
amount advanced in respect of the Loans, (ii) acknowledges and agrees that it
has no defenses, set-offs or counterclaims in respect of the Loans or this Note
and (iii) acknowledges and agrees that it has received good and valuable
consideration in connection with the execution and delivery of this Note and the
Loans.

     

    The
principal amount of this Note plus any interest accrued but unpaid through and
including the prepayment date may be prepaid at any time prior to the Maturity
Date without premium or penalty.

     

    The
interest rate on this Note shall be equal to eight percent (8%) per
annum.  Interest shall be computed on a three hundred sixty five day
year and shall accrue from and including the date hereof to but excluding the
date when the principal balance hereof has been paid in full.

     

    If any
payment on this Note shall become due and payable on a day that is not a
business day, such payment shall be made on the next succeeding business day and
any such extended time of the payment or interest shall be included in computing
interest at the rate this Note bears in connection with such
payment.

     

    Payments
of principal and interest with respect to this Note are to be made in lawful
money of the United States of America by wire transfer to an account maintained
by Holder with a bank located in the United States as designated in writing by
Holder.   All payments shall be applied first to the payment of
accrued interest and, after all such interest has been paid, any remainder shall
be applied to the reduction of the principal balance.

     

    If an
Event of Default (as defined below) with respect to Maker has occurred, the
entire principal amount of this Note plus all accrued and unpaid interest hereon
shall be immediately due and payable, in each and every case without
presentment, demand, protest or further notice, all of which are hereby waived
by Maker.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    The
occurrence of any one of the following shall constitute a default by Maker (an
“Event of
Default”) under this Note:

     

    (a) Maker
fails to pay principal or accrued interest on this Note on or before the
Maturity Date;

     

    (b) Maker
(i) files, or consents by answer or otherwise to the filing against it of, a
petition for relief or reorganization or arrangement or any other petition in
bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency,
reorganization, moratorium or other similar law of any jurisdiction, (ii) makes
an assignment for the benefit of its creditors, (iii) consents to the
appointment of a custodian, receiver, trustee or other officer with similar
powers with respect to it or with respect to any substantial part of its
property, (iv) is adjudicated as insolvent or to be liquidated, or (v) takes
corporate action for the purpose of any of the foregoing; or

     

    (c) a
court or governmental authority of competent jurisdiction enters an order
appointing, without consent by Maker, a custodian, receiver, trustee, or other
officer with similar powers with respect to it or with respect to any
substantial part of its property, or constituting an order for relief or
approving a petition for relief or reorganization or any other petition in
bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution,
winding-up or liquidation of Maker, or any such petition shall be filed against
Maker and such petition shall not be dismissed within 90 days.

     

    After the
occurrence of an Event of Default, Maker agrees to pay all costs and expenses
that Holder may incur, including without limitation reasonable collection costs
and reasonable attorneys’ fees with respect to legal services relating to an
Event of Default and to a determination of any rights or remedies of Holder
under this Note or under any other instrument or document made by Maker with or
in favor of Holder after the occurrence of an Event of Default, and reasonable
attorneys’ fees relating to any actions or proceedings that Holder may institute
or in which Holder may appear or participate and in any reviews or appeals
therefrom after the occurrence of an Event of Default.

     

    Maker
waives demand, presentment for payment, protest, notice of protest and notice of
nonpayment.  Maker further agrees that any modification or extension
of the terms of payment of this Note made by Holder shall not diminish or impair
Maker’s liability for the payment hereunder and that none of the terms or
provisions hereof may be waived, altered modified or amended except as Holder
may consent thereto in writing duly executed by Holder.  Holder may
delay or forego enforcing any of its rights or remedies under this Note without
losing them.

     

    This Note
shall be construed and enforced in accordance with and governed by the laws of
the State of Colorado without regard to the principles of conflict of laws
thereof, and all actions or proceedings in any way, manner or respect, arising
out of, from or related to this Note, shall be litigated in courts having situs
within the State of Colorado.  Each of Maker and Holder consents and
submits to the jurisdiction of any local, state or federal court located within
said state.

     

    Maker at
any time, and from time to time promptly will execute and deliver such further
documents and do such further acts and things as Holder reasonably may request
in order to effect fully the purposes of this Note.

     

    Delivery
of an executed signature page to this Note by facsimile shall be effective as
delivery of this Note.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      
        
          
            	
                    CALAIS
      RESOURCES, INC.

                  
	 
      	 
      
	
                    By:       

                  	
                    /s/ David K. Young

                  
	
                    Name:  David
      K. Young

                  
	
                    Title:  President
      and CEO

                  
	 
      
	
                    CALAIS
      RESOURCES COLORADO, INC.

                  
	 
	
                    By:

                  	
                    /s/ Thomas S. Hendricks

                  
	
                    Name:  Thomas
      S. Hendricks

                  
	
                    Title:  President

                  

          

        

      

    

    

    [Signature
Page to Promissory Note]

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