Document:

Peninsula Energy Limited: Exhibit 4.10 - Filed by newsfilecorp.com

 

EXECUTION VERSION 

	 	Facility
      Agreement 
	 	Dated                                                                                                                                                    2015 

Peninsula Energy Limited ABN 67 062
409 303 (“Borrower”)
Each person listed as a Guarantor in schedule 1
(“Guarantors”)
Investec Bank Plc (“Financier”)
Investec
Australia Limited ABN 77 140 381 184 (“Security Trustee”)

King & Wood Mallesons

Level 30 
QV1 Building 
250 St Georges Terrace 
Perth WA 6000

Australia 
T +61 8 9269 7000
F +61 8 9269 7999
DX 210 Perth

www.kwm.com 
NPC:RTW: 608-0010396 

Facility Agreement 
Contents 

	Details 	  	1
    
	 	 	 
	General terms 	3
    
	 	 
	Part 1 Interpretation 	3 
	  	  	  
	1 	Definitions and
      interpretation 	3 
	 	 	 
	1.1 	Definitions 	3 
	1.2 	General interpretation 	30 
	1.3 	Finance related interpretation
    	31 
	1.4 	Obligors’ rights and obligations individual 	31 
	1.5 	Security Trustee’s limitation
      of liability 	32 
	 	 	 
	Part 2 The Facilities 	32 
	 
    	  	  
	2 	Facilities 	32 
	 	 	 
	2.1 	Financier to provide financial
      accommodation 	32 
	2.2 	Purpose 	32 
	  	  	  
	3 	Using the Facilities 	32 
	 	 	 
	3.1 	Requesting a Utilisation 	32 
	3.2 	Conditions to first Utilisation
    	32 
	3.3 	Conditions to all Utilisations 	32 
	3.4 	Debt Sizing of Utilisations
      under the Trade Finance Facility 	33 
	 	 	 
	Part 3 Facilities 	33 
	  	  	  
	4 	Interest 	33 
	 	 	 
	4.1 	Interest charges 	33 
	4.2 	Notification of Interest Periods 	34 
	4.3 	When Interest Periods begin and
      end 	34 
	4.4 	Consolidation of Advances 	34 
	  	  	  
	5 	Changes to the calculation of interest
    	35 
	 	 	 
	5.1 	Absence of quotations 	35 
	5.2 	Market disruption 	35 
	5.3 	Alternative basis of interest or funding 	35 
	 	 	 
	Part 4 Repaying, prepaying and cancelling
    	36 
	  	  	  
	6 	Repaying, prepaying and cancelling 	36 
	 	 	 
	6.1 	Repayment 	36 
	6.2 	Mandatory repayments 	36 
	6.3 	Voluntary prepayment 	37 
	6.4 	Prepayment and break costs 	37 
	6.5 	Revolving facilities 	37 
	6.6 	Voluntary cancellation 	37 
	6.7 	Automatic cancellation at end of Availability
      Period 	37 
	 	 	 
	Part 5 Standard terms - all Facilities 	37

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	7 	Payments 	37 
	 	 	 
	7.1 	Manner of payment 	37 
	7.2 	Currency indemnity 	38 
	7.3 	GST 	38 
	  	  	  
	8 	Fees 	39 
	 	 	 
	8.1 	Establishment fee 	39 
	8.2 	Line fee 	39 
	  	  	  
	9 	Withholding tax 	39 
	 	 	 
	9.1 	Tax deduction and gross up of payments by
      Obligor 	39 
	9.2 	FATCA deduction and gross up by
      Obligor 	40 
	9.3 	FATCA deduction by the Finance Party 	40 
	9.4 	FATCA information 	40 
	9.5 	Tax indemnity 	41 
	9.6 	Exclusions for FATCA 	41 
	9.7 	Tax credit 	41 
	9.8 	Payments, minimisation and
      other remedies 	42 
	  	  	  
	10 	Increased costs and
      illegality 	42 
	 	 	 
	10.1 	Increased costs 	42 
	10.2 	Illegality or impossibility 	43 
	10.3 	Payments, minimisation and
      other remedies 	43 
	  	  	  
	11 	Representations and
      warranties 	43 
	 	 	 
	11.1 	General representations and
      warranties 	43 
	11.2 	Project representations and warranties 	48 
	11.3 	Repetition of representations
      and warranties 	49 
	11.4 	Reliance 	50 
	  	  	  
	12 	Undertakings 	50 
	 	 	 
	12.1 	Introduction 	50 
	12.2 	Financial Reports 	50 
	12.3 	Information undertakings 	50 
	12.4 	General undertakings 	51 
	12.5 	Negative undertakings 	53 
	12.6 	Financial undertakings 	54 
	12.7 	Project Modelling 	54 
	12.8 	LMP Variations 	55 
	12.9 	Undertakings in relation to the Project 	55 
	12.10 	Information undertakings in
      relation to the Project 	59 
	12.11 	Technical review of the Project 	60 
	12.12 	Security perfection - policies
      and steps 	60 
	12.13 	Conversion Facility 	60 
	12.14 	Undertakings are continuing
      obligations 	60 
	  	  	  
	13 	Accounts 	61 
	 	 	 
	13.1 	Proceeds Accounts 	61 
	13.2 	Deposits into Proceeds Accounts 	61 
	13.3 	Withdrawals from Proceeds
      Account 	61 
	13.4 	Notice of withdrawal 	62 
	13.5 	Effect of default 	62 

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	14 	Default 	62 
	 	 	 
	14.1 	Events of Default 	62 
	14.2 	Consequences of default 	65 
	14.3 	Investigation 	65 
	  	  	  
	15 	Review 	66 
	 	 	 
	15.1 	Review Event 	66 
	15.2 	Consequences of review 	66 
	  	  	  
	16 	Costs and indemnities
	67 
	 	 	 
	16.1 	Costs 	67 
	16.2 	Indemnity 	67 
	16.3 	Break costs 	68 
	16.4 	Independent Consultant - Project issues 	68 
	  	  	  
	17 	Interest on overdue amounts 	68 
	 	 	 
	17.1 	Obligation to pay 	68 
	17.2 	Compounding 	69 
	 	 	 
	Part 6 Guarantee 	69 
	  	  	  
	18 	Guarantee and indemnity
    	69 
	 	 	 
	18.1 	Obligations under Guarantee are
      joint and individual 	69 
	18.2 	Consideration 	69 
	18.3 	Guarantee 	69 
	18.4 	Indemnity 	69 
	18.5 	Nature of guarantee 	69 
	18.6 	Variations and replacements 	70 
	18.7 	Reinstatement of rights 	70 
	18.8 	Rights of the Finance Parties are protected 	70 
	18.9 	No merger 	71 
	18.10 	Extent of Guarantor’s obligations 	71 
	18.11 	Guarantor’s rights are
      suspended 	71 
	18.12 	Guarantor’s right of proof limited 	72 
	18.13 	No set-off against assignees
	72 
	18.14 	Suspense account 	72 
	18.15 	Right to prove 	72 
	18.16 	Ratification 	73 
	  	  	  
	19 	Compulsory release of FATCA FFIs and US Tax
      Obligors 	73 
	 	 	 
	Part 7 General 	73 
	  	  	  
	20 	Dealing with interests 	73 
	 	 	 
	20.1 	No dealing by Obligor 	73 
	20.2 	Dealings by Finance Parties 	73 
	20.3 	No additional payments by Obligors 	73 
	  	  	  
	21 	Notices and other communications 	74 
	 	 	 
	21.1 	Form - all communications 	74 
	21.2 	Form - communications sent by
      email 	74 
	21.3 	Delivery 	74 
	21.4 	When effective 	74 
	21.5 	When taken to be received 	74 
	21.6 	Receipt outside business hours
    	74

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	21.7 	Reliance on communications 	75 
	21.8 	Borrower and
      Obligors 	75 
	  	  	  	  
	22 	General 	75 
	 	 	 
	22.1 	Application to
      Finance Documents 	75 
	22.2 	Prompt performance 	75 
	22.3 	Certificates 	75 
	22.4 	Set-off 	75 
	22.5 	Discretion in
      exercising rights 	75 
	22.6 	Partial exercising of rights 	76 
	22.7 	Conditions of
      consents, approvals or waivers 	76 
	22.8 	No liability for loss 	76 
	22.9 	Conflict of interest
    	76 
	22.10 	Remedies cumulative 	76 
	22.11 	Indemnities and
      reimbursement obligations 	76 
	22.12 	Rights and obligations are unaffected
    	76 
	22.13 	Inconsistent law 	76 
	22.14 	Supervening law 	76 
	22.15 	Variation and waiver
    	77 
	22.16 	Confidentiality 	77 
	22.17 	Further steps 	77 
	22.18 	Exclusion of PPSA provisions 	78 
	22.19 	Exercise of rights by
      a Finance Party 	78 
	22.20 	No notice required unless mandatory
    	78 
	22.21 	Code of Banking
      Practice 	79 
	22.22 	Counterparts 	79 
	  	  	  	  
	23 	Governing law and jurisdiction
    	79 
	 	 	 
	23.1 	Governing law and jurisdiction 	79 
	23.2 	Serving documents 	79 
	23.3 	Appointment of Process Agent 	79 
	 	 	 
	Schedule 1 	Guarantors 	81 
	 	 	 
	Schedule 2 	Conditions to first Utilisation 	82 
	 	 	 
	Schedule 3 	Verification Certificate 	86 
	 	 	 
	Schedule 4 	Utilisation Notice 	92 
	 	 	 
	Schedule 5 	Interest Period Selection Notice 	94 
	 	 	 
	Schedule 6 	Permitted Encumbrances 	95 
	 	 	 
	Schedule 7 	Form of Compliance Certificate 	97 
	 	 	 
	Schedule 8 	Form of invoice 	98 
	 	 	 
	Schedule 9 	Project Tenements 	99 
	 	 	 
	Signing page 	  	172

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Facility Agreement 
Details 

	Date 	  	  
	 	 	 
	Parties 	Borrower, Guarantors, Financier
      and Security Trustee 
	 	 
	Borrower 	Name 	Peninsula Energy Limited 
	 	 	 
	  	ABN 	67 062 409 303 
	 	 	 
	  	Address 	Unit 17, 100 Railway Road, Subiaco, WA, 6008
  
	 	 	 
	  	Fax 	+61 8 9381 5064 
	 	 	 
	  	Telephone 	+61 8 9380 9920 
	 	 	 
	  	Email 	pminfo@pel.net.au and jdw@pel.net.au 
	 	 	 
	  	Attention 	Company Secretary 
	 	 	 
	Guarantors 	Each person listed as a Guarantor in
      schedule 1 (“Guarantors”). 
	  	Their contact details are also in
      schedule 1. 
	 	 
	Financier 	Name 	Investec Bank Plc incorporated in the
      United Kingdom
	   
	  	Address 	2 Gresham Street, London, EC2V 7QP, United
      Kingdom
	
	  	Fax 	+44 207 597 4960 
	 	 	 
	  	Email 	GLO-transaction management – 
	  	  	generallending@Investec.co.uk 
	 	 	 
	  	Attention 	Global Lending Operations 
	 	 	 
	Security 	Name 	Investec Australia Limited incorporated
      in 
	Trustee 	  	Australia and registered in New South Wales
  
	 	 	 
	  	ABN 	77 140 381 184 
	 	 	 
	  	Address 	Level 23, Chifley Tower, 2 Chifley Square,
  
	  	  	Sydney NSW 2000 
	  	  	GPO Box 4411 Sydney NSW 2001 
	 	 	 
	  	Fax 	+61 2 9293 6301 
	 	 	 
	  	Email 	aulendingoperations@investec.com.au 
	 	 	 
	  	Attention 	Lending Operations 

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	Summary of facilities 
	Warning: This is only a summary and has no
      operative effect. 
	  	  
	Revolving 	2 year US$7,500,000 revolving facility 
	Loan Facility 	  
	  	  
	Trade Finance 	2 year US$7,500,000 revolving facility. 
	Facility 	  

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Facility Agreement 

General terms 

	Part 1 Interpretation 
	 

	1 	
      Definitions and interpretation

	 	 	 
	1.1 	
      Definitions

	 	 	 
		
      These meanings apply unless the contrary intention
      appears:

	 	 	 
		
      Account Banks mean the UK Account Bank and the US
      Account Bank.

	 	 	 
		
      Advance means the outstanding principal amount of
      a Utilisation under a Facility

	 	 	 
		
      Affiliate has the meaning it has in the
      Corporations Act.

	 	 	 
		
      Air Quality Permit means the permit dated 13
      September 2013, issued by WDEQ, Division of Air Quality T authorising
      Strata to construct the Project under the terms and conditions of the
      permit, and subject to all applicable laws and regulations.

	 	 	 
		
      Amount Owing means, for an Obligor, the total of
      all amounts that at any time are payable, are owing but not payable, or
      are contingently owing, by the Obligor in connection with any Finance
      Document (including transactions in connection with them) to a Finance
      Party.

	 	 	 
		
      Argo Deposit Accounts means each account relating
      to the certificates of deposit, held by an Argo Depositary Bank held as
      cash collateral for the Argo Security.

	 	 	 
		
      Argo Depository Bank means UBS (or any other bank
      approved by the Finance Parties).

	 	 	 
		
      Argo Security means the amount held in the Argo
      Deposit Accounts pledged as security by Strata and maintained for the sole
      benefit of providing surety bonds to the WDEQ and the NRC for bonding in
      connection with the Project.

	 	 	 
		
      ASLB means the Atomic Safety Licensing
    Board.

	 	 	 
		
      Australian Obligors mean the Borrower, PM
      Prospecting and PM Energy.

	 	 	 
		
      Australian Securities means:

	 	 	 
		(a) 	
      the General Security Agreement;

	 	 	 
		(b) 	
      the Specific Security Agreement (Australian
    Shares).

	 	 	 
		
      Authorisation means any Permit, consent, authorisation,
      registration, filing, agreement, notarisation, certificate, permission,
      licence, approval, authority, exemption or right to do
something:

	 	 	 
		(a) 	
      from, by or with any Government Agency, whether granted
      following positive action by the Government Agency or arising following
      the expiry of a period of time without intervention or action by a
      Government Agency; and

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		(b) 	
      from, by or with any indigenous person or traditional
      owner in relation to any estate or interest in land used in connection
      with the Project which is held by that person or owner because that person
      is indigenous, is or claims to be a traditional owner or otherwise has a
      relationship with the land; and 

	 	  	
      

		(c) 	
      from, by or with any person in relation to any estate or
      interest in land used in connection with the Project. 

	 	  	  
	 	Authorised Officer means:
  
	 	  	  
		(a) 	
      in the case of a Finance Party, a director or secretary
      of the Finance Party, or any person who purports to be a “director”,
      “chief”, “counsel”, “executive”, “head”, “president”, “manager” or “member
      of Global Lending Operations” (or a person performing, or purporting to
      perform, the functions of any of them) of the Finance Party; and

	 	  	
      

		(b) 	
      in the case of an Obligor, a director or secretary of the
      Obligor or any other person specified by the Obligor as an Authorised
      Officer for the purposes of the Finance Documents by a notice to the
      Finance Parties accompanied by a copy of the person’s signature certified
      by a director or secretary of the Obligor (and in respect of which the
      Finance Parties have not received notice of revocation of the
      appointment). 

Availability Period means, for a
Facility, the period from the date of this document to (and including) the date
set out below. 

	Facility 	End of availability period 
	Revolving Loan Facility 	From the Financial Close Date 
to the date
      ending 1 week 
before the Maturity Date 
	Trade Finance Facility 	From the Financial Close Date 
to the date 3
      months before the 
Maturity Date 

Available Amount has the meaning
in clause 3.4 (“Debt Sizing of Utilisations under the Trade Finance
Facility”).

Available Commitment means
for:

	 	(a) 	
      the Revolving Loan Facility, the Commitment for that
      Facility less the total outstanding principal amount of all Utilisations
      under that Facility;

	 	 	 
	 	(b) 	
      the Trade Finance Facility, the Commitment for that
      Facility less the total outstanding principal amount of all Utilisations
      under that Facility.

BCFM means the most recent
monthly base case cash flow model of the Group (presented in a Microsoft Excel
format) including:

	 	(a) 	
      the Life of Mine Plan; and

	 	 	 
	 	(b) 	
      all the Cash Budget and CFADS;

	 	 	 
	 	(c) 	
      forecast opening and closing cash positions on an
      unconsolidated basis; and

	 	 	 
	 	(d) 	
      all covenant and CFADS
calculations,

in each case, over the term of the
Facilities.

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BLM means Bureau of Land
Management.>

Blocked Account Deed means:

	 	(a) 	
      the UK Account Bank Agreement; and

	 	 	 
	 	(b) 	
      the US Deposit Account Control
  Agreement.

Business Day means a day (not
being a Saturday, Sunday or public holiday in that place) on which banks are
open for general banking business in Sydney, New South Wales, Perth, Western
Australia, London.

Calculation Date means:

	 	(a) 	
      each Quarter End Date; and

	 	 	 
	 	(b) 	
      where a Default or Review Event has occurred and is
      subsisting, any other date specified by the Financier in its absolute
      discretion.

Cash Budget means a monthly cash
budget for the Group showing anticipated sources and uses of funds for the Group
over the next 12 month operating period.

CFADS means in respect of a
period, an amount equal to (without double counting):

		(a) 	
Revenue received by the Group during that period (or, in respect of a
     future period, projected by the Borrower to be received during that
     period,
      based on the prevailing spot commodity and FX price at the relevant
      Calculation Date);
 
	 	  	  
	 	plus 
	 	  	  
	 	(b) 	the Available Commitment under the Revolving
      Loan Facility; 
	 	  	  
	 	less 
	 	  	  
		(c) 	
      any repayments made or to be made under the Trade Finance
      Facility in that period; 

	 	  	
      

		(d) 	
      Project Costs paid by the Group in that period (or, in
      respect of a future period, projected by the Borrower to be paid in that
      period as contemplated in the Life of Mine Plan); 

	 	  	
      

		(e) 	
      Operating Costs paid by the Borrower and its Subsidiaries
      in that period (or, in respect of a future period, projected by the
      Borrower to be paid in that period as contemplated in the BCFM in respect
      of a future period); and 

	 	  	
      

	 	(f) 	
      any Taxes paid or to be paid by the Group.
  

Change of Control of the Borrower means where a person
not entitled to 50% or more of the voting capital of the Borrower as at the date
of this document acquires or becomes entitled to 49% or more of the voting
capital of the Borrower.

Code means the United States of America Internal Revenue
Code of 1986.

Collateral means the property secured under the Security
Documents.

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Commitment means, for a
Facility, the commitment set out below for the Facility as substituted, reduced,
or cancelled under this document.

	Facility 	Commitment 
	Revolving Loan Facility 	US$7,500,000 
	Trade Finance Facility 	US$7,500,000 

Compliance Certificate means a
certificate substantially in the form of Schedule 7 (“Form of Compliance
Certificate”) or otherwise in a form and substance satisfactory to the
Financier.

Compulsory Acquisition means an
actual or proposed compulsory acquisition, resumption, appropriation or
confiscation of, or freezing, restraining or forfeiture order in connection
with, assets under legislation or otherwise, including a restriction or order
under which compensation is payable in connection with assets. 

Contamination means the presence
of any substance at a level exceeding that naturally occurring:

	 	(a) 	
      in relation to land, in, on or under that land;
  or

	 	 	 
	 	(b) 	
      in relation to groundwater percolating through land, in
      that groundwater; or

	 	 	 
	 	(c) 	
      in relation to a river or stream, in its waters, in, on
      or under its bed or riparian land or in or on animal or plant life growing
      in its waters or on its bed; or

which is the basis of a notice, order
or requirement to clean up or take remedial or other action in relation to the
substance by any Government Agency other than in respect of Standard
Remediation. 

Controller has the meaning it
has in the Corporations Act.

Converdyn means Converdyn, a
general partnership formed under the laws of the State of Delaware in the United
States of America.

Conversion Facility means the
Converter’s uranium conversion facilities at Metropolis, Illinois in United
States of America.

Converter means Honeywell
International, Inc.

Converter Agreement means the
agreement dated 23 November 1992 between Converdyn and the Converter, under
which the Converter exclusively supplies to Converdyn the provision of
conversion services, including receiving, holding, weighing, sampling for
Converdyn’s customers at the Conversion Facility.

Converter Receipt means the
receipt issued by the Converter in respect of the amount of Product credited to
the account of either PUL or Strata, as the case may be, in connection with
their respective Uranium Agreement.

Converter Weight means the
weight (in pounds) of the Product credited to the account of either PUL or
Strata in respect of which the Converter has issued a Converter Receipt.

Corporations Act means the
Corporations Act 2001 (Cth).

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Costs includes costs, charges
and expenses, including those incurred in connection with advisers and any legal
costs on a full indemnity basis.

Deep Disposal Well Permit means
the Permit in favour of Strata granted by WDEQ for the construction, testing and
operation of Underground Injection Control (UIC) Class 1 wells at the
Project.

Default Rate means, for an
Interest Period in respect of an overdue amount, 2% per annum plus the sum of
LIBOR and the Margin for the relevant Facility.

Debt Service means for any
applicable period, the aggregate amount of scheduled principal, interest and
fees paid or, in respect of a future period, projected to be paid, in respect of
the Facilities during that period under the Finance Documents.

Offtaker 1 means nuclear power
generating utilities located in the United States.

Offtaker 1 Offtake Agreements
mean:

	 	(a) 	
      the agreement titled “Uranium Concentrate Sales
      Agreement” dated 15 February 2011 between Strata and Offtaker 1; and

	 	 	 
	 	(b) 	
      the agreement titled “Uranium Concentrate Sales
      Agreement” dated 1 December 2014 between Offtaker 1 and the Borrower.

Details means the section of
this document headed “Details”.

Offtaker 2 means nuclear power
generating utilities located in the United States.

Offtaker 2 Offtake Agreements 
mean the two agreements titled “U3O8 Purchase and Sale Agreement” dated 21
August 2015 between Offtaker 2 and PUL.

Encumbrance means any:

	 	(a) 	
      security for the payment of money or performance of
      obligations, including a mortgage, charge, lien, pledge, trust or title
      retention or flawed deposit arrangement or other security interest
      securing an obligation of any person or any other agreement or arrangement
      having a similar effect, including (without limitation) any “security
      interest” as defined in sections 12(1) or (2) of the PPSA; or

	 	 	 
	 	(b) 	
      right, interest or arrangement which has the effect of
      giving another person a preference, priority or advantage over creditors
      including any right of set-off; or

	 	 	 
	 	(c) 	
      right that a person (other than the owner) has to remove
      something from land (known as a profit à prendre), easement, public right
      of way, restrictive or positive covenant, lease, or licence to use or
      occupy; or

	 	 	 
	 	(d) 	
      third party right or interest, or any right arising as a
      consequence of the enforcement of a judgment,

or any agreement to create any of them
or allow them to exist. 

Environment means all aspects of
the surroundings of human beings including: 

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	 	(a) 	
      the physical characteristics of those surroundings such
      as the land, the waters and the atmosphere; and

	 	 	 
	 	(b) 	
      the biological characteristics of those surroundings such
      as the animals, plants and other forms of life; and

	 	 	 
	 	(c) 	
      the aesthetic characteristics of those surroundings such
      as their appearance, sounds, smells, tastes and
textures.

Environmental Approvals means
all or any consents, approvals, licences, permissions, concurrences or other
authorities or permissions of any kind required by or under any Environmental
Law relating to the Project.

Environmental Event means:

	 	(a) 	
      a proceeding, investigation or claim against an Obligor
      or Group member; or

	 	 	 
	 	(b) 	
      a requirement that an Obligor or Group member incur
      expenditure; or

	 	 	 
	 	(c) 	
      a requirement that an Obligor or Group member cease or
      change an activity carried on by it,

in connection with an Environmental Law
or Environmental Requirement where that proceeding, investigation or claim,
expenditure or requirement has had or is likely to have a Material Adverse
Effect. 

Environmental Law means a Law
relating to the Environment, including but not limited to any law relating to
land use, planning, environmental assessment, environmental heritage, relics,
water, coastal protection, water catchments, pollution of air or water, noise,
soil or ground water contamination, chemicals, hazardous substances, nuisance,
the ozone layer, waste, dangerous goods or poisons, building regulation,
occupation of buildings, fire safety, public health, occupational health and
safety, noxious trades and any aspect of protection of the Environment, or the
enforcement or administration of any of those Laws.

Event of Default means an event
or circumstance so described in clause 14 (“Default”).

Facility means a facility made
available under this document being the Revolving Loan Facility or the Trade
Finance Facility as the case may be.

FATCA means:

	 	(a) 	
      sections 1471 to 1474 of the Code or any associated
      regulations or other official guidance;

	 	 	 
	 	(b) 	
      any treaty, law, regulation or other official guidance
      enacted in any other jurisdiction, or relating to an intergovernmental
      agreement between the United States of America and any other jurisdiction,
      which (in either case) facilitates the implementation of paragraph (a)
      above; or

	 	 	 
	 	(c) 	
      any agreement under the implementation of paragraphs (a)
      or (b) above with the United States of America Internal Revenue Service,
      the United States of America government or any governmental or taxation
      authority in any other jurisdiction.

FATCA Application Date means:

	 	(a) 	
      in respect of a “withholdable payment” described in
      section 1473(1)(A)(i) of the Code (which relates to payments of interest
      and certain other payments from sources within the United States of
  America), 1 July 2014;

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	 	(b) 	
      in respect of a “withholdable payment” described in
      section 1473(1)(A)(ii) of the Code (which relates to “gross proceeds” from
      the disposition of property of a type that can produce interest from
      sources within the United States of America), 1 January 2017; or

	 	 	 
	 	(c) 	
      in respect of a “passthru payment” described in section
      1471(d)(7) of the Code not falling within paragraphs (a) or (b) above, 1
      January 2017,

or, in each case, such other date from
which such payment may become subject to a deduction or withholding required by
FATCA as a result of any change in FATCA after the date of this document. 

FATCA Deduction means a
deduction or withholding from a payment under a Finance Document required by
FATCA.

FATCA Exempt Party means a party
that is entitled to receive payments free from any FATCA Deduction.

FATCA FFI means a foreign
financial institution as defined in section 1471(d)(4) of the Code which, if the
Financier is not a FATCA Exempt Party, could be required to make a FATCA
Deduction.

FATCA Payment means either:

	 	(a) 	
      the increase in a payment made by an Obligor to the
      Financier under clause 9.2 (“FATCA deduction and gross up by Obligor”) or
      clause 9.3(a); or

	 	 	 
	 	(b) 	
      a payment under clause 9.3(b).

FATIC means First American Title
Insurance Co.

Finance Debt means any present
or future, actual or contingent liability in connection with any:

	 	(a) 	
      money borrowed or raised; or

	 	 	 
	 	(b) 	
      debit balance on any account with a financial
      institution; or

	 	 	 
	 	(c) 	
      acceptance, endorsement or discounting arrangement;
    or

	 	 	 
	 	(d) 	
      amount raised in connection with any note purchase
      facility or the issue of bonds, notes, debentures, units, loan stock or
      similar instruments; or

	 	 	 
	 	(e) 	
      derivative transaction (and, when calculating the
      liability in connection with any derivative transaction, only the marked
      to market value is taken into account unless the derivative transaction
      has been terminated or closed-out, in which case the liability is the
      termination amount or close out amount for the derivative transaction);
      or

	 	 	 
	 	(f) 	
      redeemable share or other redeemable security where the
      holder has the right, or the right in certain circumstances, to require
      redemption before the final Maturity Date; or

	 	 	 
	 	(g) 	
      receivables sold or discounted except to the extent that
      they are sold or discounted on a non-recourse basis;
or

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	 	(h) 	
      hire purchase, finance lease, capital lease or any other
      lease which has the same economic effect as a finance lease or capital
      lease; or

	 	 	 	 
	 	(i) 	
      agreement to defer payment of the consideration for an
      asset or service where payment is deferred for more than 90 days after the
      date the asset or service is supplied; or

	 	 	 	 
	 	(j) 	
      obligation to deliver assets or services paid for in
      advance by a financier or otherwise relating to a financing transaction;
      or

	 	 	 	 
	 	(k) 	
      counter-indemnity obligation in respect of a guarantee
      issued by a financier; or

	 	 	 	 
	 	(l) 	
      other transaction (including any forward sale or purchase
      agreement) which has the commercial effect of obtaining financial
      accommodation; or

	 	 	 	 
	 	(m) 	
      any guarantee of any of the above.

	 	 	 	 
	 		
      In this definition, “guarantee” includes:

	 	 	 	 
	 		(i) 	
      any guarantee, indemnity, bond, letter of credit, legally
      binding comfort letter or similar assurance against loss; or

	 	 	 	 
	 		(ii) 	
      any direct or indirect, actual or contingent obligation
      to purchase or assume any person’s liabilities, to make an investment in
      or provide financial accommodation to any person, or to purchase any
      person’s assets, in each case, where that obligation is assumed to assist
      that person to meet its liabilities; or

	 	 	 	 
	 		(iii) 	
      any other direct or indirect, actual or contingent
      obligation under which a person is, or may be, responsible for another
      person’s solvency, financial condition or
liabilities.

Finance Documents means:

	 	(a) 	
      this document;

	 	 	 
	 	(b) 	
      any Utilisation Notice;

	 	 	 
	 	(c) 	
      the Blocked Account Deeds;

	 	 	 
	 	(d) 	
      the Security Trust Deed;

	 	 	 
	 	(e) 	
      each Security Document;

	 	 	 
	 	(f) 	
      any Interest Period Selection Notice;

	 	 	 
	 	(g) 	
      each Hedge Agreement;

	 	 	 
	 	(h) 	
      any document which the Borrower and the Financier agree
      in writing is a Finance Document for the purposes of this definition;
      and

	 	 	 
	 	(i) 	
      any document entered into for the purpose of varying,
      novating, supplementing, extending, replacing or restating any of the
      above.

Finance Party means the
Financier, the Security Trustee and each Hedge Counterparty.

Financial Report means a
financial report consisting of:

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	 	(a) 	
      financial statements; and

	 	 	 
	 	(b) 	
      any notes to those financial statements; and

	 	 	 
	 	(c) 	
      any directors’ declaration about the financial statements
      and notes,

together with any reports (including
any directors’ reports) attached to any of those documents or intended to be
read with any of them. 

Financial Undertakings mean each
financial undertaking set out in clause 12.6(a) .

Fitzsimmons Title Certificate
means the certificate dated 30 October 2015 issued by Fitzsimmons, LLC in
respect of each Private Surface Lease.

Forward Annual Cover Ratio means
the ratio of:

A : B 

where

A is the budgeted CFADS for the
relevant calculation period; 

B is the sum of C and D; 

C is the amount of scheduled reductions
in the Commitment of the Revolving Loan Facility for the relevant calculation
period; and

D is the amount of interest payments
and fees scheduled to be paid under the Revolving Loan Facility for the relevant
calculation period.

General Security Agreement means
the general security agreement dated on or about the date of this document
between the Security Trustee and the Obligors.

Government Agency means any
government or government department, any governmental, semi-governmental
administrative, public, regulatory or judicial authority or person, commission,
any statutory body or authority or body exercising any administrative or
legislative function or that has legal power to require another person to act or
not to act in a particular way.

Grazing Lease means each Project
Tenement identified as a “State Grazing Lease Sublease” in Part B (Mortgaged
Leases) of Schedule 9.

Group means the Borrower and
each of its Subsidiaries.

Guarantee means the guarantee
and indemnity in clause 18 (“Guarantee and indemnity”).

Hazardous Materials means:

	 	(a) 	
      any chemical, material or substance at any time defined
      as or included in the any definition under an Environmental Law as
      “hazardous substances”, “hazardous wastes”, “hazardous materials”,
      “extremely hazardous waste”, “acutely hazardous waste”, “radioactive
      waste”, “biohazardous waste”, “pollutant”, “toxic pollutant”,
      “contaminant”, “restricted hazardous waste”, “infectious waste”, “toxic
      substances”, or any words of similar import under the Environmental Laws
      intended to define, list or classify substances by reason of properties
      harmful to the environment or human health and safety (including harmful
      properties such as ignitability corrosivity, reactivity,
      radioactivity, carcinogenicity, toxicity, reproductive toxicity, “TCLP
  toxicity” or “EP toxicity”;

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	 	(b) 	
      any oil, petroleum, petroleum fraction or petroleum
      derived substance;

	 	 	 
	 	(c) 	
      any flammable substances or explosives; or

	 	 	 
	 	(d) 	
      any asbestos-containing
materials.

Hazardous Materials Activity
means any past or current event or occurrence involving the presence, use or
release in to the environment of any Hazardous Materials, including the use,
manufacture, possession, storage, holding, presence, existence, location,
Release, threatened Release, discharge, placement, generation, transportation,
processing, construction, treatment, abatement, removal, remediation, disposal
or handling of any Hazardous Materials, and any corrective action or response
action with respect to any of the foregoing.

Hedge Agreement means each ISDA
master agreement (including the schedules to it) and all confirmations of all
transactions governed by it entered into between an Obligor and a Hedge
Counterparty. 

Hedge Counterparty means each of
IBP and IAL, as Party A under a Hedge Agreement.

IAL means Investec Australia
Limited.

IBP means Investec Bank Plc.

IFRS means the International
Financial Reporting Standards as in effect from time to time in connection with
the jurisdiction of incorporation of the relevant Obligor.

IGA means the agreement dated 12
September 2012 between the Government of the United Kingdom of Great Britain and
Northern Ireland and the Government of the United States of America to Improve
International Tax Compliance and Implement FATCA.

Indemnified Taxes means Taxes
other than a Tax: 

	 	(a) 	
      imposed on, or calculated having regard to, the net
      income of a Finance Party; or

	 	 	 
	 	(b) 	
      imposed as a result of a Finance Party being a resident
      of, or organised or doing business in, the jurisdiction imposing the
      tax,

but including a Tax: 

	 	(i) 	
      calculated solely on or by reference to any payment
      (without allowance for any deduction) derived by a Finance Party under a
      Finance Document or any other document referred to in a Finance Document;
      or

	 	 	 
	 	(ii) 	
      imposed as a result of a Finance Party being considered a
      resident of or organised or doing business in the jurisdiction imposing
      the tax, solely as a result of it being a party to a Finance Document or
      any transaction contemplated by a Finance
Document.

A person is Insolvent if:

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	 	(a) 	
      it is (or states that it is) an insolvent under
      administration or insolvent (each as defined in the Corporations Act);
      or

	 	 	 	 
	 	(b) 	
      is deemed to, or is declared to, be unable to pay its
      debts under applicable Law;

	 	 	 	 
	 	(c) 	
      or in the case of PUL only, the value of its assets is
      less than its liabilities (taking into account contingent and prospective
      liabilities but excluding any Finance Debt owed by PUL to any other
      Obligor provided that such Finance Debt is subordinated at all times to
      any Permitted Finance Debt to the satisfaction of the Financier);
  or

	 	 	 	 
	 	(d) 	
      it is in liquidation, in provisional liquidation, under
      administration or wound up or has had a Controller appointed to its
      assets; or

	 	 	 	 
	 	(e) 	
      any bankruptcy, reorganization, debt arrangement or other
      proceedings under any bankruptcy or insolvency law are instituted against
      it;

	 	 	 	 
	 	(f) 	
      it commences negotiations with one or more of its
      creditors (excluding the Finance Parties in relation to the Facility) to,
      or is subject to, any arrangement, assignment, moratorium or composition,
      protected from creditors under any statute or dissolved (in each case,
      other than to carry out a reconstruction or amalgamation while solvent on
      terms approved by the Finance Parties); or

	 	 	 	 
	 	(g) 	
      it consents, acquiesces, takes corporate action, legal
      proceedings or any other procedure or step is taken (including the making
      of an application, the presentation of a petition, the filing or service
      of a notice or the passing of a resolution) in relation to:

	 	 	 	 
	 		(i) 	
      the appointment of a custodian, trustee or receiver of it
      or for a substantial part of its property;

	 	 	 	 
	 		(ii) 	
      any dissolution or liquidation proceedings in relation to
      it;

	 	 	 	 
	 		(iii) 	
      the suspension of payments, a moratorium of any
      indebtedness, winding-up, dissolution, striking-off, administration or
      reorganisation (by way of voluntary arrangement, scheme of arrangement or
      otherwise) of it;

	 	 	 	 
	 		(iv) 	
      a composition, compromise, assignment or arrangement with
      any creditor of it;

	 	 	 	 
	 		(v) 	
      the appointment of a liquidator, supervisor, receiver,
      administrative receiver, administrator, compulsory manager, trustee or
      other similar officer in respect of it or any of its assets; or

	 	 	 	 
	 		(vi) 	
      enforcement of any Encumbrance over any assets of it;
      or

	 	 	 	 
	 	(h) 	
      an application or order has been made (and, in the case
      of an application, it is not stayed, withdrawn or dismissed within 30
      days), resolution passed or any other action taken, in each case in
      connection with that person, in respect of any of (a), (e), (f), (g) or
      (h) above; or

	 	 	 	 
	 	(i) 	
      it is taken (under section 459F(1) of the Corporations
      Act or equivalent Law under any jurisdiction) to have failed to comply
      with a statutory demand; or

	 	 	 	 
	 	(j) 	
      it is the subject of an event described in section
      459C(2)(b) or section 585 of the Corporations Act (or it makes a statement
      from which the Finance Parties reasonably deduce it is so subject)
  or equivalent Law under any jurisdiction; or

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	 	(k) 	
      it is otherwise unable or admits inability to pay its
      debts when they fall due; or

	 	 	 
	 	(l) 	
      something having a substantially similar effect to (a) to
      (l) happens in connection with that person under the law of any
      jurisdiction.

Interest Payment Date means the
last day of an Interest Period.

Interest Period means each
period selected in accordance with clause 4.2 (“Notification of Interest
Periods”).

Interest Period Selection Notice
means a notice substantially in the form set out in, and completed in
accordance with, Schedule 5 (“Interest Period Selection Notice”).

Interest Rate means, for an
Interest Period in respect of a Facility, LIBOR plus the Margin for the
Facility.

Investec means IAL, IBP or any
Related Entity or Affiliate of either IAL or IBP.

Invoice means each invoice
issued by the Borrower, PUL or Strata, as the case may be, to a Purchaser in the
form of Schedule 8 (“Invoice”) including standard settlement instructions under
which the relevant Purchaser is directed to remit all sale proceeds into the
specified Proceeds Account.

Invoice Receipt means the
written receipt provided by a Purchaser to the Borrower, PUL or Strata, as the
case may be, following the issuing of an Invoice to the Purchaser and payment of
the invoiced amount by the Purchaser in respect of the relevant Invoice.

ITE means the independent
technical expert which, as at the date of this document, is SRK, or any
replacement or supplementary independent technical expert appointed in
connection with the Project.

Law means any law, regulations,
treaty or official directive.

LIBOR means, for a period:

	 	(a) 	
      the applicable Screen Rate as of 11.00 am (local time)
      two Banking Days before the first day of that period for the offering of
      deposits in USD and for a period comparable to that period; or

	 	 	 
	 	(b) 	
      as otherwise determined pursuant to clause 5.2 (“Market
      disruption,

and if, in either case, that rate is
less than zero, LIBOR shall be deemed to be zero. 

Licence means any
licence, permit, entitlement or Authorisation (including to discharge hazardous
waste or to develop and use property) issued by any authority or other person
which allows activity to be carried out, on or in connection with
property.

Life of Mine Plan means the life
of mine plan in relation to the Project, approved by the board of directors of
the Borrower and in form and substance satisfactory to the Financier (including
incorporating any amendments recommended by the ITE appointed by the Finance
Parties from time to time), providing a summary of forecast construction and
operation of the Project and including the following details and forecasts:

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	 	(a) 	
      capital expenditure schedules and drawdown
      requirements;

	 	 	 
	 	(b) 	
      Uranium or other mineral production;

	 	 	 
	 	(c) 	
      terms of any executed sales agreement in relation to
      Uranium production;

	 	 	 
	 	(d) 	
      wellfield restoration schedule and treatment
    schedule;

	 	 	 
	 	(e) 	
      capital, production and operating costs;

	 	 	 
	 	(f) 	
      taxation, government charges and administration
    costs;

	 	 	 
	 	(g) 	
      opening tax losses;

	 	 	 
	 	(h) 	
      calculation of CFADS and the Financial Undertakings over
      the life of the mine; and

	 	 	 
	 	(i) 	
      Revenue,

in each case for the Project as
provided to the Finance Parties before the date of this agreement and as updated
and amended from time to time as required under clause 12.7(a) . The Life of
Mine Plan is to be divided into monthly periods for the first 24 months and
annually each subsequent year of the Project. 

Liquidity means the aggregate
value of available Unencumbered Cash and any Available Commitment under the
Revolving Loan Facility.

Margin means, for an Interest
Period in respect of a Facility, the margin set out below.

	Facility 	Margin % (per annum) 
	Revolving Loan Advance Facility 	3.50 
	Trade Finance Facility 	2.50 

Material Adverse Effect means a
material adverse effect on: 

	 	(a) 	
      the ability of an Obligor to comply with its obligations
      under the Finance Documents; or

	 	 	 
	 	(b) 	
      the rights and remedies of each Finance Party under the
      Finance Documents; or

	 	 	 
	 	(c) 	
      the business, operation, property, condition (financial
      or otherwise), cashflows or prospects of an Obligor; or

	 	 	 
	 	(d) 	
      the effectiveness or priority of any Encumbrance granted
      by an Obligor in connection with any Finance Document or the value of the
      property secured by any Finance Document; or

	 	 	 
	 	(e) 	
      the validity or enforceability of any Finance
      Document.

Maturity Date means the 2nd
anniversary of the date of this document.

Mines Department means the State
of Wyoming, Office of State Lands and Investments.

Mining Act means United States
General Mining Laws, WYO. STAT. ANN. §§ 36-6-101 and 36-5-101.

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Mining Information means all
exploration and mining information, documents, maps, reports, records, studies
and other written data, including all data stored on magnetic tapes, disks or
diskettes or any other computer storage media, relating to geological,
geochemical, geophysical work, metallurgical, engineering and processing
feasibility studies and other operations conducted in connection with the
Project.

Monthly Material Balance Notice
means a notice from Converdyn to Strata or PUL, under the relevant Uranium
Agreement confirming:

	 	(a) 	
      the Converter’s receipt of delivered Product during the
      month before the notice;

	 	 	 
	 	(b) 	
      assay results of delivered Product including agreed
      specification and weight during the month before the notice;

	 	 	 
	 	(c) 	
      the book transfers made on account of Strata or PUL, as
      applicable, in the Converter’s accounting system during the month before
      the notice; and

	 	 	 
	 	(d) 	
      the end of month quantity of Uranium available to Strata
      or PUL, as applicable.

Obligor means the Borrower and
each Guarantor.

NRC means the United States
Nuclear Regulatory Commission.

NRC Licence means the combined
source and by-product material licence number SUA-1601 granted by the NRC to
Strata in respect of the Project.

Offtake Agreement means:

	 	(a) 	
      the Offtaker 1 Offtake Agreement;

	 	 	 
	 	(b) 	
      the Offtaker 2 Agreements; and

	 	 	 
	 	(c) 	
      any other offtake agreement entered into between the
      Borrower, Strata, PUL and/or another Obligor and an Offtake Party for the
      sale of Product.

Offtake Party means
respectively:

	 	(a) 	
      Offtaker 1;

	 	 	 
	 	(b) 	
      Offtaker 2; and

	 	 	 
	 	(c) 	
      any other offtake counterparty under an Offtake
      Agreement,

under their respective Offtake
Agreement or any other party as agreed between a Finance Party and the
Borrower. 

Operating Costs means for any
applicable period, all costs and expenses incurred and paid (or in respect of a
future period, projected in the applicable budget to be payable) by the Borrower
and/or its Subsidiaries in the ordinary course of its business in that period,
including, without limitation:

	 	(a) 	
      corporate operating costs and expenses including routine
      maintenance costs and insurance premiums;

	 	 	 
	 	(b) 	
      wages and salary;

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	 	(c) 	
      rent and other payments under finance leases, operating
      leases and hire purchase agreements;

	 	 	 
	 	(d) 	
      advisory costs;

	 	 	 
	 	(e) 	
      information technology costs; and

	 	 	 
	 	(f) 	
      all other costs and expenses which the Borrower and the
      Financier agree are Operating Costs,

but excluding Project Costs, Debt
Service or any distributions. 

Peninsula Holdings means
Peninsula USA Holdings Inc.

Permit to Mine means the Permit
to mine no. PT802 granted in favour of Strata and approved as effective as of 12
November 2012 by WDEQ.

Permits means all material
Government Agency approvals, permits, certificates, rights, exemptions and
orders from any Government Agency and licences and includes:

	 	(a) 	
      the NRC Licence;

	 	 	 
	 	(b) 	
      the Permit to Mine;

	 	 	 
	 	(c) 	
      the Deep Disposal Well Permit;

	 	 	 
	 	(d) 	
      the Air Quality Permit; and

	 	 	 
	 	(e) 	
      any other Permit required from any other Governmental
      Agency for the running of the Project.

Permitted Disposal means any:

	 	(a) 	
      (stock-in-trade) disposals of stock-in-trade in
      the ordinary course of ordinary business; or

	 	 	 
	 	(b) 	
      (obsolete plant and equipment) disposals of worn
      out or obsolete plant and equipment no longer required to carry on the
      Obligor’s business which are made for fair value; or

	 	 	 
	 	(c) 	
      (replacement of assets) disposals of plant,
      equipment and fixed assets but only if the proceeds of disposal are used
      at or about the same time to acquire replacement plant, equipment or fixed
      assets of comparable or superior value, type and quality which are to be
      used for a similar purpose; or

	 	 	 
	 	(d) 	
      (Permitted Encumbrances) disposals which are
      Permitted Encumbrances where the aggregate book value of the assets or the
      consideration payable for the disposals is less than US$2,500,000 for any
      12 month period; or

	 	 	 
	 	(e) 	
      (other) excluding any permitted disposals set out
      in (a) to (d) above, disposals of assets where the aggregate book value of
      the assets or the consideration payable is less than US$2,500,000 for any
      12 month period.

Permitted Encumbrance means:

	 	(a) 	
      (Finance Document) an Encumbrance granted under a
      Finance Document; or

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	 	(b) 	
      (existing Encumbrances) each Encumbrance existing
      as at the date of this document and protected by the registrations listed
      in Schedule 6 (“Permitted Encumbrances”); or

	 	 	 	 
	 	(c) 	
      (Regulatory Encumbrance) an Encumbrance for the
      benefit of WDEQ, NRC or an Argo Depository Bank relating to cash which has
      been pledged or deposited in respect of the bonds or guarantees required
      by WDEQ or NRC in respect of the Project as set out in the BCFM most
      recently provided to the Finance Parties by the Borrower but only to the
      extent that such amounts are specified as cash-flow items in the BCFM and
      in the calculation of CFADS; or

	 	 	 	 
	 	(d) 	
      (supplies of goods or services) any of the
      following:

	 	 	 	 
	 		(i) 	
      (lien) a lien arising by operation of law in the
      ordinary course of ordinary business and not securing Finance Debt;
    or

	 	 	 	 
	 		(ii) 	
      (pledge) a pledge created in the ordinary course
      of ordinary business over the documents for stock-in-trade to secure the
      purchase price of that stock-in-trade on the supplier’s usual terms (or on
      terms more favourable to the relevant Obligor or Group member);
  or

	 	 	 	 
	 		(iii) 	
      (title retention) a right of title retention over
      goods acquired in the ordinary course of ordinary business on the
      supplier’s usual terms (or on terms more favourable to the relevant
      Obligor or Group member); or

	 	 	 	 
	 		(iv) 	
      (hire purchase or conditional sale arrangements)
      subject to paragraph (e) below, an Encumbrance granted under any hire
      purchase or conditional sale arrangement or any similar arrangement
      entered into in the ordinary course of ordinary business in respect of
      goods supplied to the relevant Obligor or Group member on the supplier’s
      usual terms (or on terms more favourable to the relevant Obligor or Group
      member),

	 	 	 	 
	 			
      provided the secured amount is paid when due or is being
      contested in good faith and any secured amount which remains due after
      final determination or settlement of the contest is paid promptly;
    or

	 	 	 	 
	 	(e) 	
      (finance leases) an Encumbrance granted under any
      finance or capital lease permitted under the definition of Permitted
      Finance Debt and that each Encumbrance, combined with any Permitted
      Encumbrance under paragraph (d)(iv) of this definition above, does not at
      any time in aggregate for the Group secure an amount in excess of
      US$2,000,000 (or its equivalent) in total; or

	 	 	 	 
	 	(f) 	
      (banking arrangements) a netting or set-off
      arrangement entered into in the ordinary course of banking arrangements
      for the purpose of netting or setting off debit and credit balances (but
      only if the arrangement does not permit credit balances of an Obligor to
      be netted or set off against debit balances of a Group member which is not
      an Obligor); or

	 	 	 	 
	 	(g) 	
      (Native title) any agreement between an Obligor
      and a native title holder of the land in respect to which a Tenement is
      held; or

	 	 	 	 
	 	(h) 	
      (set-off in ordinary course of ordinary business)
      a right of set-off (other than in connection with Finance Debt) arising in
      the ordinary course of ordinary business.

Permitted Finance Debt means any
Finance Debt:

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	 	(a) 	
      (Finance Documents) under a Finance Document; or
      

	 	  	
       

	 	(b) 	
      (derivative transactions) under any derivative
      transaction permitted under the Finance Documents; or 

	 	  	
       

	 	(c) 	
      (Regulatory Finance Debt) in respect of bonds or
      guarantees required by WDEQ or NRC in respect of the Project as set out in
      the BCFM most recently provided to the Finance Parties by the Borrower but
      only to the extent that such amounts are specified as cash-flow items in
      the BCFM and in the calculation of CFADS; or 

	 	  	
       

	 	(d) 	
      (trade creditors) any Finance Debt in the form of
      trade creditors and accruals in the ordinary course of ordinary business
      on arm’s length terms; or 

	 	  	
       

	 	(e) 	
      (hire purchase or conditional sale arrangements)
      subject to paragraph (f) below, hire purchase or conditional sale
      arrangement or any similar arrangement entered into in the ordinary course
      of ordinary business in respect of goods supplied to the relevant Obligor
      or Group member on the supplier’s usual terms (or on terms more favourable
      to the relevant Obligor or Group member); or 

	 	  	
       

	 	(f) 	
      (finance leases) under finance leases or capital
      leases entered into in the ordinary course of ordinary business on arm’s
      length terms as long as the capital value of all assets leased under the
      outstanding leases does not, combined with any Permitted Finance Debt
      under paragraph (e) of this definition above, at any time in aggregate for
      the Group exceed US$2,000,000 (or its equivalent) in total; or 

	 	  	
       

	 	(g) 	
      (consent) any Finance Debt which the Financier has
      given its prior written consent. 

Permitted Financial Accommodation
means:

	 	(a) 	
      (Guarantees to Obligors) guarantees granted by an
      Obligor to another Obligor;

	 	 	 	 
	 	(b) 	
      (Guarantees to non-Obligors) guarantees and
      indemnities granted by an Obligor in favour of an entity that is not an
      Obligor provided that:

	 	 	 	 
	 		(i) 	
      the guarantee is provided in the ordinary course of
      business; and

	 	 	 	 
	 		(ii) 	
      the principal amount recoverable under the guarantee does
      not exceed US$500,000 in any one instance and US$1,000,000 in
      aggregate;

	 	 	 	 
	 	(c) 	
      (loans to Obligors) Finance Debt provided by an
      Obligor to another Obligor;

	 	 	 	 
	 	(d) 	
      (loans to non-Obligors) Finance Debt provided by
      an Obligor to an entity that is not an Obligor provided that the Finance
      Debt does not exceed US$500,000 in any one instance and more than
      US$1,500,000 in aggregate over any 12 month
period.

PM Energy means P.M. Energy Pty
Ltd ACN 120 462 919.

PM Prospecting means P.M.
Prospecting Pty Ltd ABN 22 116 293 184.

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Potential Event of Default means
an event or circumstance described in clause 14.1 (“Events of Default”) which,
with the giving of notice, lapse of time or fulfilment of any condition, would
be likely to become an Event of Default.

PPSA means the Personal Property
Securities Act 2009 (Cth).

Private Mineral Lease means each
Project Tenement identified as “Private Mineral Lease” in Part C (Mineral
Estates) of Schedule 9.

Private Surface Lease means each
Tenement identified as “Private Surface Lease” in Part B (Mortgaged Leases) of
Schedule 9.

Proceeds means: 

	 	(a) 	
      moneys received from the sale of Product, including
      moneys received under any Offtake Agreement; and

	 	 	 
	 	(b) 	
      without limiting (a), moneys received by the Borrower
      under or in relation to any Hedge Agreement related to the Product;
    and

	 	 	 
	 	(c) 	
      any liquidated damages or other amounts received by the
      Borrower under any Project Document; and

	 	 	 
	 	(d) 	
      moneys received by the Borrower under any insurance
      policy relating to the Project (except to the extent required to be paid
      to third parties); and

	 	 	 
	 	(e) 	
      any other money or receipts (whether of capital or
      income) derived by the Borrower from the Project or any Project Assets
      (including proceeds of sales of assets) and for any purpose
    whatsoever.

Proceeds Accountsmeans each of
the UK Account and the US Account. 

Productmeans all Uranium oxide
concentrate derived from the Project. 

Product Valuemeans the value,
represented in US Dollars, determined by the following formula: 

A x B 

where: 

A is the Converter Weight expressed in
pounds; and 

B is the lower of: 

	 	(i) 	
      the 5-day average Uranium spot price taken from the
      website of The Ux Consulting Company LLC (or any successor or replacement
      website or provider) for the period immediately preceding the date of the
      Product Value; and

	 	 	 
	 	(ii) 	
      the average offtake price for the Product under an
      Offtake Agreement for the following 6 month
period.

Projectmeans the Uranium mining
activities at the Project Area from time to time. 

Project Area means the area
located in Crook County, Wyoming, 21.5 miles north of Moorcroft and adjacent to
the ranching community of Oshoto, Wyoming, and commonly referred to as the Ross,
Kendrick and Barber production units, collectively.

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Project Assets means all the
right, title, estate and interest both present and future of the Project,
including all right, title, estate and interest in, to, under or derived from:

	 	(a) 	
      the Project Tenements; and

	 	 	 
	 	(b) 	
      the Product; and

	 	 	 
	 	(c) 	
      the Proceeds; and

	 	 	 
	 	(d) 	
      all buildings, improvements, structures, systems,
      fixtures, plant, machinery, tools and other personal property at any time
      acquired, leased or held and used or intended for use in connection with
      or incidental to the mining, extraction or transporting of the applicable
      Product, and all associated facilities and infrastructure; and

	 	 	 
	 	(e) 	
      the Project Area; and

	 	 	 
	 	(f) 	
      each Project Document; and

	 	 	 
	 	(g) 	
      all Mining Information and other intellectual property
      forming part of or relating to the Project; and

	 	 	 
	 	(h) 	
      any other contract, agreement, permit, lease, licence,
      consent, which forms part of or relates to the design, construction,
      development, commissioning, operation or maintenance of the Project, or to
      the mining, production, transportation, storage, processing or marketing
      of the Product or for any ancillary purpose.

Project Costs means for any
applicable period, all costs and expenses incurred and paid (or in respect of a
future period, projected in the Life of Mine Plan and the applicable budget to
be payable) by the Borrower and/or its Subsidiaries in the ordinary course of
business in relation to the operation and maintenance of the Project in that
period, including, without limitation: 

	 	(a) 	
      administrative and overhead costs and charges in respect
      of the operation of the Project by the Group;

	 	 	 
	 	(b) 	
      premiums paid with respect to insurance;

	 	 	 
	 	(c) 	
      any fees or royalties paid to a government agency in
      respect of the Project (whether currently payable or levied or imposed
      after the date of this agreement) or royalties payable under the terms of
      any agreement in relation to the assets of the Project;

	 	 	 
	 	(d) 	
      operating and routine maintenance expenses;

	 	 	 
	 	(e) 	
      essential or non-discretionary capital
  expenditure;

	 	 	 
	 	(f) 	
      Taxes, including those paid to a government agency in
      respect of the Project (whether currently payable or levied or imposed
      after the date of this agreement) and rates; and

	 	 	 
	 	(g) 	
      net payments under foreign exchange and hedging
      agreements,

but excluding Operating Costs, Debt
Service and any amounts payable by way of distributions. 

Project Documents means:

	 	(a) 	
      the NRC Licence;

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	 	(b) 	
      the Permit to Mine;

	 	 	 
	 	(c) 	
      the Offtake Agreements;

	 	 	 
	 	(d) 	
      the Toll Treatment Agreement;

	 	 	 
	 	(e) 	
      each Uranium Agreement;

	 	 	 
	 	(f) 	
      each Surface Impact and Disturbance Agreement;

	 	 	 
	 	(g) 	
      each material agreement, licence or permit in respect of
      the construction of mining infrastructure in the Project Area;

	 	 	 
	 	(h) 	
      any material lease, agreement, document, instrument
      entered into by an Obligor in connection with the Project;

	 	 	 
	 	(i) 	
      any document, lease, agreement or instrument that the
      Borrower and the Financier agree to be a Project Document; and

	 	 	 
	 	(j) 	
      any other instrument collateral or supplemental to or
      connected with any of the above.

Project Tenements means:

	 	(a) 	
      the Tenements listed in Schedule 9 and Tenements derived
      from applications listed in Schedule 9, together with any extensions,
      renewals, consolidations, replacements or amendments to or grants of those
      Tenements and all rights associated with each of those tenements including
      the right to treat mineral bearing material located in the Tenements;
      and

	 	 	 
	 	(b) 	
      any mining Tenement issued in renewal or replacement of
      or issued over any part of the same ground as any of those mining
      Tenements referred to in paragraph (a) including upon a consolidation or
      subdivision of any of those mining Tenements,

each held under the United States
General Mining Laws, WYO. STAT. ANN. §§ 36-6-101 and 36-5-101, the private
leases and agreements, fee ownership, and the authorized agency permits as set
forth with particularity in Schedule 9. 

PUL means Peninsula Uranium
Limited (Companies House UK number 09473897). 

Purchaser means either: 

	 	(a) 	
      an Offtake Party in respect of a sale of Product by the
      Borrower, PUL or Strata, as the case may be, under an Offtake Agreement;
      or

	 	 	 
	 	(b) 	
      a spot purchaser in respect of the spot sale of Product
      by the Borrower, PUL or Strata, as the case may be on the spot market for
      Product.

Quarter means each three month
period starting on the day after a Quarter End Date and ending on the next
Quarter End Date. 

Quarter End Date means each 31
March, 30 June, 30 September and 31 December. 

Quotation Day means: 

	 	(a) 	
      in relation to any period for which an interest rate is
      to be determined, two Business Days before the first day of that period;
      and

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	 	(b) 	
      in relation to any Interest Period the duration of which
      is selected by the Financier pursuant to Clause 17.1 (“Obligation to
      pay”), such date as may be determined by the Financier (acting
      reasonably).

Receiver includes a receiver or
receiver and manager. 

Reference Banks means the
principal London offices of Westpac Banking Corporation, Commonwealth Bank of
Australia, National Australia Bank Limited and Australia and New Zealand Banking
Group Limited or such other banks as may be selected by the Financier in
consultation with the Borrower. 

Regulatory Change means any of
the following:

	 	(a) 	
      the introduction of any law or regulation; or

	 	 	 
	 	(b) 	
      a change in any law or regulation (including a change in
      its interpretation, application or
administration),

in each case applying for the first
time after the date of this document. However, it does not include any
imposition of, or change in the basis of, a Tax on the overall net income of a
Finance Party. 

For the purposes of this definition,
“regulation” also includes any treaty, official directive, prudential
requirement, request, guideline, policy, ruling or determination (whether or not
having the force of law) with which responsible financiers comply in carrying on
their business. It also includes any capital requirements, leverage ratio,
liquidity standards or other standards, rules or requirements under or following
any of the following published by the Basel Committee on Banking Supervision (as
amended, supplemented or restated): 

	 	(i) 	
      “Basel III: A global regulatory framework for more
      resilient banks and banking systems”, “Basel III: International framework
      for liquidity risk measurement, standards and monitoring” and “Guidance
      for national authorities operating the countercyclical capital buffer,
      published in December 2010;

	 	 	 
	 	(ii) 	
      “Globally systematically important banks: assessment
      methodology and the additional loss absorbency requirement – Rules text”,
      published in November 2011;

	 	 	 
	 	(iii) 	
      any further guidance standards relating to the above or
      known as Basel III; and

	 	 	 
	 	(iv) 	
      any publicly released draft change to, or the
      introduction of, a regulatory standard to implement any statements of
      intention or other announcements by the Basel Committee on Banking
      Supervision as a successor, amendment of or complementary to Basel
    III.

Related Entity has the meaning
it has in the Corporations Act. 

Release means any releasing,
disposing, discharging, injecting, spilling, leaking, leaching, pumping,
dumping, emitting, escaping, emptying, seeping, dispersal, migration,
transporting, placing and anything similar to them, including the moving of any
materials through, into or upon any land, soil, surface water, groundwater or
air, or otherwise entering into the Environment. 

Revenue means for any applicable
period, all revenues and other amounts in the nature of revenues, received (or
in respect of a future period, projected in the Cash Flow Budget to be received)
by the Group in that period including: 

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	 	(a) 	
      all revenues received in respect of the
Project;

	 	 	 
	 	(b) 	
      proceeds from business interruption insurance;

	 	 	 
	 	(c) 	
      any interest income; and

	 	 	 
	 	(d) 	
      net proceeds from the sale or disposal of assets
      permitted under the Finance Documents,

but excluding any insurance proceeds
(other than from business interruption insurance cover) and proceeds of Finance
Debt and equity, in each case received in that period. 

Review Event means an event or
circumstance so described in clause 15.1 (“Review Event”). 

Revolving Loan Facility means
the revolving cash advance facility described in the Details. 

Screen Rate means the London
interbank offered rate administered by ICE Benchmark Administration Limited (or
any other person which takes over the administration of that rate) for US
dollars and for the period displayed (before any correction, recalculation or
republication by the administrator) on pages LIBOR01 or LIBOR02 of the Thomson
Reuters screen (or any replacement Thomson Reuters page which displays that
rate) or on the appropriate page of such other information service which
publishes that rate from time to time in place of Thomson Reuters. 

If an entity ceases to act in the role
of administering or publishing a rate, the Screen Rate means the equivalent rate
published by a subsequently appointed administrator of the rate. 

If the agreed page is replaced, the
service ceases to be available, or the basis on which that rate is calculated or
displayed is changed and the Financier in its opinion believes that it ceases to
reflect the Financier's cost of funding for that period, the Financier may
specify another page or service displaying the appropriate rate after
consultation with the Borrower. 

Secured Money means all money
which: 

at any time; 

for any reason or circumstance in
connection with the Finance Documents (including transactions in connection with
them); 

whether arising under law or otherwise
(including liquidated or unliquidated damages for default or breach of any
obligation); and 

whether or not of a type within the
contemplation of the parties at the date of any Finance Document: 

	 	(a) 	
      an Obligor is or may become actually or contingently
      liable to pay to, or for the account of, a Finance Party; or

	 	 	 
	 	(b) 	
      a Finance Party has advanced or paid on an Obligor’s
      behalf or at an Obligor’s express or implied request; or

	 	 	 
	 	(c) 	
      a Finance Party is liable to pay by reason of any act or
      omission on an Obligor’s part, or that a Finance Party has paid or
      advanced in protecting or maintaining the Collateral or any security
      interest in a Finance Document following an act or omission on an
      Obligor’s part; or

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	 	(d) 	
      an Obligor would have been liable to pay a Finance Party
      but the amount remains unpaid by reason of the Obligor’s
  Insolvency.

This definition applies: 

	 	(i) 	
      irrespective of the capacity in which an Obligor or a
      Finance Party became entitled to, or liable in respect of, the amount
      concerned;

	 	 	 	 
	 	(ii) 	
      whether an Obligor or a Finance Party is liable as
      principal debtor, as surety, or otherwise;

	 	 	 	 
	 	(iii) 	
      whether an Obligor is liable alone, or together with
      another person;

	 	 	 	 
	 	(iv) 	
      even if an Obligor owes an amount or obligation to or for
      the account of a Finance Party because it was assigned to that Finance
      Party, whether or not:

	 	 	 	 
	 		(A) 	
      the assignment was before, at the same time as, or after
      the date of a Finance Document; or

	 	 	 	 
	 		(B) 	
      the Obligor consented to or was aware of the assignment;
      or

	 	 	 	 
	 		(C) 	
      the assigned obligation was secured or guaranteed before
      the assignment;

	 	 	 	 
	 	(v) 	
      even if a Finance Document was assigned to a Finance
      Party, whether or not:

	 	 	 	 
	 		(A) 	
      an Obligor consented to or was aware of the assignment;
      or

	 	 	 	 
	 		(B) 	
      any of the Secured Money was previously secured or
      guaranteed; or

	 	 	 	 
	 	(vi) 	
      if an Obligor is a trustee, whether or not it has a right
      of indemnity from the trust fund.

Security Document means: 

	 	(a) 	
      the Australian Security;

	 	 	 
	 	(b) 	
      the US Security;

	 	 	 
	 	(c) 	
      the UK Security;

	 	 	 
	 	(d) 	
      any other document or Encumbrance collateral to any of
      them or which secures an Obligor’s obligations under a Finance
      Document;

	 	 	 
	 	(e) 	
      any document which the Borrower and the Financier agree
      is a Security Document; and

	 	 	 
	 	(f) 	
      any document entered into for the purpose of varying,
      novating, supplementing, extending, replacing or restating any of the
      above.

Security Shares means each
share, stock or other marketable security which forms the collateral of the
Share Security.

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Security Trust Deed means the
deed dated on or about the date of this document titled “Peninsula Security
Trust Deed” between the Security Trustee, the Financier, and the Obligors. 

Share Mortgage (UK Shares) means
the share mortgage dated on or about the date of this document between the
Borrower and the Security Trustee under which the Borrower grants a share
mortgage to the Security Trustee over its shareholding in PUL. 

Share Security means each of the
following: 

	 	(a) 	
      Specific Security Agreement (Australian
Shares);

	 	 	 
	 	(b) 	
      Share Mortgage (UK Shares);

	 	 	 
	 	(c) 	
      US Share Pledge.

Special Calculation Date means
any date the Financier reasonably nominates to the Borrower as a “Special
Calculation Date”. 

Specific Security Agreement
(Australian Shares) means the specific security agreement dated on or about
the date of this document between the Borrower, PM Prospecting and the Security
Trustee under which the Borrower grants a mortgage over its shares in PM
Prospecting and PM Prospecting grants a mortgage over its shares in PM Energy.

Specified Time means 11.00 am
(London time) two Banking Days before the day of the Advance or, if applicable,
in the case of an Advance that has already been borrowed, the first day of the
relevant Interest Period for that Advance.

SRK means SRK Consulting
(Australasia) Pty Ltd. 

State Lease means each Project
Tenement identified as a “State Lease” in Schedule B (Mortgaged Leases) of the
US Mortgage. 

Standard Remediation means
remediation or rehabilitation work undertaken in connection with the ordinary
course of business of the Project. 

Strata means Strata Energy, Inc.

Strata Owned Property means each
Project Tenement identified as “Strata Owned Property” in Schedule A (Fee Lands)
of the US Mortgage. 

Subsidiaryof an entity
means another entity which: 

	 	(a) 	
      is a subsidiary of the first entity within the meaning of
      the Corporations Act; or

	 	 	 
	 	(b) 	
      is part of the consolidated entity constituted by the
      first entity and the entities it is required to include in the
      consolidated financial statements it prepares, or would be if the first
      entity was required to prepare consolidated financial
  statements.

A trust may be a subsidiary (and an
entity may be a subsidiary of a trust) if it would have been a subsidiary under
this definition if that trust were a corporation. For these purposes, a unit or
other beneficial interest in a trust is to be regarded as a share. 

Surface Impact and Disturbance
Agreement means each agreement between Strata and the respective lessee of
record of each Grazing Lease and Strata as the sub-lessee each as set out below,
under which Strata has the right to the use of the surface subject to the relevant
Grazing Lease for drilling holes for exploration, development and mining
operations or beneficiation of ores: 

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	Lease No. 	Lessee of Record 
	Lease 1	Grazier 1
	Lease 2	Grazier 2
	Lease 3	Grazier 3

Tangible Assets means all assets
other than goodwill, patents, trade marks, design rights, franchises, future tax
benefits, any revaluation increment relating to exploration and evaluation costs
carried forward, underwriting and formation expenses and any other items which
according to IFRS principles and practices are regarded as intangible assets.

Tangible Net Worth means at any
time Total Tangible Assets less Total Liabilities plus if negative or minus if
positive the balance standing to the account of the foreign currency translation
reserve (as shown in the Accounts) at that time. 

Tax Act means the Income Tax
Assessment Act 1936 (Cth) or the Income Tax Assessment Act 1997 (Cth), as the
context requires. 

Tax Consolidated Group means a
consolidated group (as defined in the Tax Act). 

Taxes means taxes, levies,
imposts, charges and duties (including stamp and transaction duties) imposed by
any authority together with any related interest, penalties, fines and expenses
in connection with them. 

Tenements means any tenement
including Private Mineral Leases, State Leases, Strata Owned Property, Grazing
Lease, Private Surface Lease, unpatented mining claims and Permits. 

Title Document means any
original, duplicate or counterpart certificate or document of title including
any real property certificate of title, certificate of units in a unit trust,
share certificate or certificate evidencing an investment instrument or
negotiable instrument (in the case of the terms 'certificate', 'investment
instrument' or 'negotiable instrument', each within the meaning of the PPSA).

Title Insurance means the title
insurance over the Strata Owned Property issued by FATIC in favour of the
Security Trustee in accordance with the Title Insurance Commitment. 

Title Insurance Commitment means
the title insurance commitment of FATIC in respect of each Strata Owned
Property. 

Toll Treatment Agreement means
the agreement titled “Resin Processing Agreement for Uranium Concentrates” dated
11 June 2015 between Strata and Uranium One Americas, Inc. 

Total Assets means, for the
Group at any time, the total assets of the Group on a consolidated basis as
shown in or determined by reference to (as applicable) the most recent Financial
Reports or management accounts (as applicable) for the Group given to the
Finance Parties. 

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Total Liabilities means at any
time the total amount shown in the Financial Reports or management accounts (as
applicable) of all external liabilities of the Group plus any contingent
liabilities of the Group in respect of money borrowed or raised by any person
after the date of this agreement, adjusted as necessary (without limitation or
duplication) by: 

	 	(a) 	
      deducting any provision for deferred income tax appearing
      as a liability in the Financial Reports or management accounts (as
      applicable);

	 	 	 
	 	(b) 	
      eliminating all inter-company balances between any
      members of the Group;

	 	 	 
	 	(c) 	
      adding the undrawn portion of the Commitments;
  and

	 	 	 
	 	(d) 	
      making any further adjustments which in the opinion of
      the Borrower's auditors are appropriate to make a proper determination of
      the Total Liabilities of the Group on a consolidated basis in accordance
      with the Corporations Act and, to the extent not inconsistent, generally
      accepted Australian accounting principles and
practices.

Total Tangible Assets means at
any time the total of the book values of all Tangible Assets of the Group shown
in the Financial Reports or management accounts (as applicable) adjusted as
necessary (without limitation or duplication) by: 

	 	(a) 	
      deducting the amount shown in the Financial Reports or
      management accounts (as applicable) of any provisions for depreciation and
      for bad and doubtful debts appearing in the books of the Borrower or any
      of its Subsidiaries;

	 	 	 
	 	(b) 	
      deducting any amount by which the book value of any asset
      (other than for exploration and evaluation costs) is written up after the
      date of this agreement in excess of its cost, except where it has been
      written up in accordance with a valuation by a qualified independent
      valuer (being a valuer who is a member of the Australian Institute of
      Valuers or a valuer approved by the Financier);

	 	 	 
	 	(c) 	
      eliminating all inter-company balances between any
      members of the Group and eliminating asset revaluations and future income
      tax benefits; and

	 	 	 
	 	(d) 	
      making any further adjustments which in the opinion of
      the Borrower's auditors are appropriate to make a proper determination of
      the Total Tangible Assets of the Group on a consolidated basis in
      accordance with the Corporations Act and, to the extent not inconsistent,
      generally accepted Australian accounting principles and
  practices.

Trade Finance Facility means the
trade finance facility described in the Details. 

Transaction Documents means each
Finance Document and each Project Document. 

UK Account means the account in
the name of PUL as set out in the UK Debenture. 

UK Account Bank means Investec
Bank plc..

UK Account Bank Agreement means
the agreement relating to the operation of the UK Account dated on or about the
date of this document between PUL, the Security Trustee and the UK Account Bank. 

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UK Debenture means the fixed and
floating all assets charge dated on or about the date of this document between
PUL and the Security Trustee.

UK Guarantor means PUL. 

UK Security means:

	 	(a) 	
      the UK Account Bank Agreement;

	 	 	 
	 	(b) 	
      the UK Debenture; and

	 	 	 
	 	(c) 	
      the Share Mortgage (UK Shares).

Unencumbered Cash means any
amount of cash held on deposit in the name of the Borrower which is free from
Encumbrance. 

Uranium means the oxide with the
chemical formula U3O8.

Uranium Agreement means each of
the following agreements: 

	 	(a) 	
      the Uranium supplier’s agreement entered into, or to be
      entered into, as the case may be, between Strata and Converdyn;
  and

	 	 	 
	 	(b) 	
      the Uranium owner’s agreement entered into, or to be
      entered into, as the case may be, between PUL and
  Converdyn.

US Account means the account in
the name of Strata as set out in the US Deposit Account Control Agreement. 

US Account Bank means a US
domiciled bank approved by the Financier. 

US Deposit Account Control Agreement
means the deed dated after the date of this document between Strata, the
Security Trustee and the US Account Bank.

US Dollar means the lawful
currency for the time being of the United States of America.

US Environmental Indemnity Agreement
means the document titled “Environmental Indemnity Agreement” dated on or
about the date of this document between the Borrower, PM Prospecting, PM Energy
and Peninsula Holdings. 

US Guarantors means: 

	 	(a) 	
      Peninsula Holdings; and

	 	 	 
	 	(b) 	
      Strata.

US Mortgage means the document
titled “Mortgage, Assignment of Lease and Rents, Security Agreement and Fixture
Filing” dated on or about the date of this document between Strata and the
Security Trustee. 

US Share Pledge Agreement means
the pledge agreement dated on or about the date of this document between PM
Energy, Peninsula Holdings and the Security Trustee under which: 

	 	(a) 	
      PM Energy grants to the Security Trustee a pledge over
      its shares in Peninsula Holdings; and

	 	 	 
	 	(b) 	
      Peninsula Holdings grants to the Security Trustee a
      pledge over its shares in Strata.

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US Security means:

	 	(a) 	
      the US Deposit Account Control Agreement;

	 	 	 
	 	(b) 	
      the US Security Agreement;

	 	 	 
	 	(c) 	
      the US Share Pledge Agreement;

	 	 	 
	 	(d) 	
      the US Environmental Indemnity Agreement; and

	 	 	 
	 	(e) 	
      the US Mortgage.

US Security Agreement means the
document titled “Security Agreement” dated on or about the date of this document
between Strata and the Security Trustee.

US Tax Obligor means: 

	 	(a) 	
      the Borrower which is resident for tax purposes in the
      United States of America; or

	 	 	 
	 	(b) 	
      an Obligor some or all of whose payments under the
      Finance Documents are from sources within the United States of America for
      United States of America federal income tax
purposes.

Utilisation means financial
accommodation provided under a Facility. 

Utilisation Date means the date
on which financial accommodation is or is to be provided under a Facility under
this document. 

Utilisation Notice means a
notice in the form set out in, and completed in accordance with, Schedule 4
(“Utilisation Notice”). 

WDEQ means the Wyoming
Department of Environmental Quality. 

	1.2 	
      General interpretation

Headings are for convenience only and
do not affect interpretation. Unless the contrary intention appears, in a
Finance Document, the following applies: 

	 	(a) 	
      the singular includes the plural and vice
versa;

	 	 	 
	 	(b) 	
      a reference to a document or an agreement (including this
      document) includes the document or agreement as varied, novated,
      supplemented, extended, replaced or restated;

	 	 	 
	 	(c) 	
      the meaning of general words is not limited by specific
      examples introduced by “including”, “for example” or “such as” or similar
      expressions;

	 	 	 
	 	(d) 	
      a reference to a particular person includes the person’s
      executors, administrators, successors, permitted substitutes (including
      persons taking by novation) and permitted assigns;

	 	 	 
	 	(e) 	
      the word “person” includes an individual, a body
      corporate, a partnership, a joint venture, an unincorporated association
      and an authority or any other entity or organisation;

	 	 	 
	 	(f) 	
      a reference to a time of day is a reference to Sydney
      Australia time;

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	 	(g) 	
      a reference to dollars, US Dollars, $, US$ or USD is a
      reference to the currency of the United States of America;

	 	 	 
	 	(h) 	
      a reference to Australian dollars, A$ or AUD is a
      reference to the currency of the Australia;

	 	 	 
	 	(i) 	
      a reference to the word “law” includes common law,
      principles of equity and legislation (including regulations);

	 	 	 
	 	(j) 	
      a reference to any legislation includes regulations under
      it and any consolidations, amendments, re-enactments or replacements of
      any of them;

	 	 	 
	 	(k) 	
      a reference to the word “regulations” includes
      instruments of a legislative character under legislation (such as
      regulations, rules, by-laws, ordinances and proclamations);

	 	 	 
	 	(l) 	
      an agreement, representation or warranty in favour of 2
      or more persons is for the benefit of them jointly and each of them
      individually;

	 	 	 
	 	(m) 	
      a reference to a group of persons is a reference to any 2
      or more of them jointly and to each of them individually;

	 	 	 
	 	(n) 	
      a reference to any thing (including an amount) is a
      reference to the whole and each part of it;

	 	 	 
	 	(o) 	
      a reference to accounting standards is a reference to
      accounting standards, principles and practices generally accepted in the
      relevant place, consistently applied;

	 	 	 
	 	(p) 	
      a reference to an accounting term in an accounting
      context is a reference to that term as it is used in relevant accounting
      standards.

	1.3 	
      Finance related
interpretation

Unless the contrary intention appears,
in a Finance Document, the following applies: 

	 	(a) 	
      a reference to “property” or “asset” includes any present
      or future, real or personal, tangible or intangible property, asset or
      undertaking and any right, interest or benefit under or arising from
      it;

	 	 	 
	 	(b) 	
      an Event of Default, Potential Event of Default or Review
      Event is “continuing” if it has occurred and has not been waived in
      writing by, or remedied to the satisfaction of, the Finance
  Parties;

	 	 	 
	 	(c) 	
      a reference to a “derivative transaction” includes any
      swap, forward agreement, option or other transaction the value of which
      depends on, or is derived from, the value of assets, liabilities, indices,
      rates, commodities or other variables, any combination of those
      transactions or any other similar arrangements;

	 	 	 
	 	(d) 	
      a reference to “know your customer checks” means any
      “know your customer” obligations or other identification check or
      procedures necessary in order to comply with any
law.

	1.4 	
      Obligors’ rights and obligations
  individual

The rights and obligations of the
Obligors under this document (other than under the Guarantee) are individual.

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	1.5 	
      Security Trustee’s limitation of
  liability

	(a) 	
      The Parties acknowledge that the Security Trustee enters
      into this document in its capacity as security trustee under the Security
      Trust Deed, and in no other capacity.

	 	 
	(b) 	
      The Security Trustee’s liability under this document is
      limited in the manner set out in clause 6.1 of the Security Trust
    Deed.

	Part 2 The Facilities 
	 

	2 	
      Facilities

	 	 	 	 
	2.1 	
      Financier to provide financial
  accommodation

	 	 	 	 
		
      The Financier agrees to provide any financial
      accommodation requested by the Borrower under a Facility in accordance
      with this document.

	 	 	 	 
	2.2 	
      Purpose

	 	 	 	 
		
      The Borrower agrees to use:

	 	 	 	 
		(a) 	
      the Revolving Loan Facility for general corporate and
      working capital purposes only; and

	 	 	 	 
		(b) 	
      the Trade Finance Facility:

	 	 	 	 
			(i) 	
      for general corporate and working capital purposes;
      and

	 	 	 	 
			(ii) 	
      as prepayment for the sale of Product to a
    Purchaser

	3 	
      Using the Facilities

	 	 
	3.1 	
      Requesting a Utilisation

	 	 
		
      The Borrower need not use any Facility.

	 	 
		
      If the Borrower requires a Utilisation, it agrees to give
      a Utilisation Notice to the Financier by 11.00 am on the third Business
      Day before the day it requires the Utilisation (or any later time agreed
      by the Financier).

	 	 
		
      A Utilisation Notice is effective when the Financier
      actually receives it in legible form. An effective Utilisation Notice is
      irrevocable.

	 	 
	3.2 	
      Conditions to first Utilisation

	 	 
		
      The Financier need not provide the first Utilisation
      until the Finance Parties have received (or waived) every item listed in
      Schedule 2 (“Conditions to first Utilisation”) in form and substance
      satisfactory to the Finance Parties. Any item required to be certified
      must be certified by a secretary or a director of the entity providing it
      as being true and complete. The Financier agrees to notify the Borrower as
      soon as practicable after the Finance Parties receive the final item in
      form and substance satisfactory to it.

	 	 
		
      Each condition under this clause is for the sole benefit
      of the Finance Parties and may only be waived by the Finance
    Parties.

	 	 
	3.3 	
      Conditions to all Utilisations

	 	 
		
      The Financier need not provide any requested Utilisation
      unless:

	 	 
		
      (a)
	 it is to be provided during the Availability Period for the
      Facility; and 

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	 	(b) 	
      the Available Commitment for the Facility would not be
      exceeded as a result of providing the Utilisation; and

	 	 	 	 
	 	(c) 	
      in respect of the Trade Finance Facility:

	 	 	 	 
	 		(i) 	
      the amount of the proposed Utilisation is equal to or
      less than the Available Amount for that Utilisation; and

	 	 	 	 
	 		(ii) 	
      the Utilisation Notice attaches the Converter Receipt,
      Invoice and Invoice Receipt in respect the proposed Utilisation;

	 	 	 	 
	 	(d) 	
      in respect of the Revolving Loan Facility only, the
      amount of a proposed Utilisation must be US$500,000 or a whole multiple of
      US$250,000, or if less, the Available Commitment for the Revolving Loan
      Facility;

	 	 	 	 
	 	(e) 	
      the Financier has received an effective Utilisation
      Notice in respect of it; and

	 	 	 	 
	 	(f) 	
      the representations and warranties in clause 11
      (“Representations and warranties”) and in the Utilisation Notice and the
      statements in the Utilisation Notice are correct and not misleading at the
      date of the Utilisation Notice and at the Utilisation Date by reference to
      the then current circumstances; and

	 	 	 	 
	 	(g) 	
      no Event of Default, Potential Event of Default or Review
      Event is continuing on the date of the Utilisation Notice and on the
      Utilisation Date, or would result from the Utilisation being
    provided.

Each condition under this clause is for
the sole benefit of the Finance Parties and may only be waived by the Finance
Parties. 

	3.4 	
      Debt Sizing of Utilisations under the Trade Finance
      Facility

The Available Amount for any
Utilisation under the Trade Finance Facility is an amount equal to the lesser of
A and B, where: 

A is the Available Commitment of
the Trade Finance Facility; and 

B is the amount determined in
accordance with the following formula: 

B = 0.9 x Reference Product Value

where: 

Reference Product Value is the
Product Value in respect of the Converter Weight set out in the relevant
Converter Receipt in respect of which the Borrower proposes to utilise the Trade
Finance Facility as attached to the applicable Utilisation Notice. 

	Part 3 Facilities 
	 

	4 	
      Interest

	 	 
	4.1 	
      Interest charges

	 	 
		
      The Borrower agrees to pay interest to the Financier on
      each Advance made to it at the Interest Rate for the applicable Interest
      Period for the relevant Facility.

Interest: 

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	 	(a) 	
      accrues daily from (and including) the first day of an
      Interest Period to (but excluding) the last day of the Interest Period;
      and

	 	 	 
	 	(b) 	
      is payable on each Interest Payment Date; and

	 	 	 
	 	(c) 	
      is calculated on actual days elapsed using a year of 360
      days.

	4.2 	
      Notification of Interest
Periods

	 	(a) 	
      An Interest Period for an Advance under the Revolving
      Loan Facility, is:

	 	 	 	 
	 		(i) 	
      for the first Interest Period, the period specified in
      the Utilisation Notice; and

	 	 	 	 
	 		(ii) 	
      for each subsequent Interest Period, the period specified
      in an Interest Period Selection Notice given by the Borrower to the
      Financier by 11 am on the third Business Day before the last day of the
      current Interest Period. An Interest Period Selection Notice is effective
      when the Financier receives it in legible form. An effective Interest
      Period Selection Notice is irrevocable.

The specified period must be 30, 60 or
90 days (or any other period agreed by the Financier).

If the Borrower does not give the
Financier an Interest Period Selection Notice by the required time, the
subsequent Interest Period is the same length as the preceding Interest Period
(or it is the period until the Maturity Date, if that is shorter than the
preceding Interest Period). 

	4.3 	
      When Interest Periods begin and
  end

An Interest Period for an Advance
begins: 

	 	(a) 	
      for the first Interest Period, on its Utilisation Date;
      and

	 	 	 
	 	(b) 	
      in respect of the Revolving Loan Facility only, for each
      subsequent Interest Period, on the day when the preceding Interest Period
      for the Advance ends.

An Interest Period which would
otherwise end on a day which is not a Business Day ends on the next Business Day
(unless that day falls in the following month, in which case the Interest Period
ends on the previous Business Day). However, an Interest Period which would
otherwise end after the Maturity Date ends on the Maturity Date. 

	4.4 	
      Consolidation of Advances

If 2 or more Interest Periods: 

	 	(a) 	
      end on the same date; and

	 	 	 
	 	(b) 	
      relate to Advances made under the Revolving Loan
      Facility,

the Borrower may request in the
Interest Period Selection Notice for the next Interest Period that those
Advances be consolidated into, and treated as, a single Advance on the last day
of the Interest Period. On and from the last day of that Interest Period the
relevant Advances will be treated as a single Advance.

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	5
    	
      Changes to the calculation of interest

	 	 	 	 
	5.1 	
      Absence of quotations

	 	 	 	 
		
      Subject to clause 5.2 (“Market disruption”), if LIBOR is
      to be determined by reference to the Reference Banks, but a Reference Bank
      does not supply a quotation by the Specified Time on the Quotation Day,
      LIBOR is to be determined on the basis of the quotations of the remaining
      Reference Banks.

	 	 	 	 
	5.2 	
      Market disruption

	 	 	 	 
		(a) 	
      If a Market Disruption Event occurs in relation to an
      Advance for any Interest Period, then the rate of interest of that Advance
      for the Interest Period shall be the rate per annum which is the sum
      of:

	 	 	 	 
			(i) 	
      the applicable Margin; and

	 	 	 	 
			(ii) 	
      the rate expressed as a percentage rate per annum that
      reflects the Financier’s cost of funding that Utilisation from whatever
      sources it may reasonably select including, at the Financier’s discretion,
      by reference the Screen Rate for LIBOR available prior to the Market
      Disruption Event for a period equal in length to the Interest Period of
      that Advance.

	 	 	 	 
		(b) 	
      In this document Market Disruption Event
    means:

	 	 	 	 
			(i) 	
      at or about noon on the day for determining the Interest
      Rate for the relevant Interest Period pages LIBOR01 or LIBOR02 of the
      Thomson Reuters screen (or any replacement Thomson Reuters page which
      displays that rate) or on the appropriate page of such other information
      service which publishes that rate from time to time in place of Thomson
      Reuters is not available or the rate displayed on the available page is
      zero or negative and none or only one of the Reference Banks supplies a
      rate to the Financier to determine LIBOR for United States Dollars for the
      relevant Interest Period; or

	 	 	 	 
			(ii) 	
      before noon on the Business Day immediately following the
      day for determining the Interest Rate for the relevant Interest Period,
      the Financier becomes aware that the cost to it of obtaining matching
      deposits in the London interbank market would be in excess of LIBOR or
      that it is unable to obtain matching deposits in the London interbank
      market.

	 	 	 	 
	5.3 	
      Alternative basis of interest or funding

	 	 	 	 
		(a) 	
      If a Market Disruption Event occurs and the Financier or
      the Borrower so requires, the Financier and the Borrower shall enter into
      negotiations (for a period of not more than thirty days) with a view to
      agreeing a substitute basis for determining the rate of
interest.

	 	 	 	 
		(b) 	
      Any alternative basis agreed pursuant to paragraph (a)
      above shall be binding on all parties to this document.

	 	 	 	 
		(c) 	
      For the avoidance of doubt, in the event that no
      substitute basis is agreed at the end of the thirty day period, the rate
      of interest shall continue to be determined in accordance with the terms
      of this document.

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	Part 4 Repaying, prepaying and cancelling
  
	 

	6 	
      Repaying, prepaying and cancelling

	 	 	 	 	 
	6.1 	
      Repayment

	 	 	 	 	 
		
      The Borrower agrees to repay the total Advances made to
      it under each Facility on the Maturity Date.

	 	 	 	 	 
	6.2 	
      Mandatory repayments

	 	 	 	 	 
		(a) 	
      Subject to the operation of clause 13.3 (“Withdrawals
      from Proceeds Account”), any amounts credited to the Proceeds Account in
      respect of Product that is sold by the Borrower, PUL or Strata will be
      applied as a mandatory repayment under the Trade Finance Facility in the
      following manner:

	 	 	 	 	 
			(i) 	
      in order of repayment of Advances under the Trade Finance
      Facility from oldest to newest Advance;

	 	 	 	 	 
			(ii) 	
      repayment of an Advance under the Trade Finance Facility
      will be determined by reference to Converter Weight funded under that
      Advance compared to the weight, in pounds, of Product sold. The repayment
      obligation is illustrated through the following worked example:

	 	 	 	 	 
				(A) 	
      Advance made on 30 June 2016 under the Trade Finance
      Facility (Advance (1)) was made in respect of a Converter Weight of 90,000
      lbs;

	 	 	 	 	 
				(B) 	
      Advance made on 31 July 2016 under the Trade Finance
      Facility (Advance (2)) has been made in respect of a Converter Weight of
      50,000 lbs;

	 	 	 	 	 
				(C) 	
      Advance (1) and (2) total 140,000 lbs of pre-funded
      Product sales;

	 	 	 	 	 
				(D) 	
      proceeds from sale of Product deposited into the Proceeds
      Account is in respect of the sale of 100,000 lbs of Product on 1 November
      2016;

	 	 	 	 	 
				(E) 	
      Advance (1) principal outstanding and any accrued and
      unpaid interest is mandatorily repaid in full;

	 	 	 	 	 
				(F) 	
      Advance (2) principal outstanding and any accrued and
      unpaid interest is mandatorily repaid to 20%. This is calculated on the
      basis that Advance (1) accounted for 90,000 lbs of the 100,000 lbs of sold
      Product, the remaining 10,000 lbs of sold Product is equal to
      10,000/50,000 (20%) of the pre-funded amount based on Converter Weight for
      Advance (2).

	 	 	 	 	 
			(iii) 	
      repayment in accordance with clause 6.2(a)(ii) must be
      made as soon as practicable after the proceeds of the sale of Product is
      credited to the Proceeds Account but no later than 5 Business Days
      following receipt of those funds into the Proceeds Account.

	 	 	 	 	 
		(b) 	
      The Borrower agrees and agrees to procure any relevant
      Group member, apply the net proceeds of any Permitted Disposal to
      mandatorily repay Advances outstanding under the
  Facilities.

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	6.3 	
      Voluntary prepayment

	 	 	 
		
      The Borrower may prepay all or part of a Utilisation as
      follows:

	 	 	 
		(a) 	
      if the Borrower is prepaying an Advance made to it under
      a Facility, the prepayment amount must be at least US$250,000 and a whole
      multiple of US$250,000 (unless the outstanding principal amount of the
      Advance is less than US$250,000); and

	 	 	 
		(b) 	
      at the same time as the Borrower prepays the Utilisation,
      the Borrower must also pay all accrued but unpaid interest and fees in
      connection with the Utilisation; and

	 	 	 
		(c) 	
      the Borrower must notify the proposed prepayment (and the
      Utilisation to which the prepayment relates) to the Financier by 11.00 am
      on the third Business Day before the prepayment (or any lesser period
      agreed by the Financier). Once given, the notice is irrevocable and the
      Borrower is obliged to prepay in accordance with the notice.

	 	 	 
	6.4 	
      Prepayment and break costs

	 	 	 
		
      If the Borrower prepays an Advance under a Facility on
      the last day of the Interest Period for the Advance, no break costs are
      payable. However, if the Borrower prepays on any other day, it may be
      liable for break costs - see clauses 16.2 (“Indemnity”) and 16.3 (“Break
      costs”).

	 	 	 
	6.5 	
      Revolving facilities

	 	 	 
		
      The Borrower may redraw an amount prepaid
under:

	 	 	 
		(a) 	
      the Revolving Loan Facility, up to the Available
      Commitment; and

	 	 	 
		(b) 	
      the Trade Finance Facility, up to the Available
      Amount.

	 	 	 
	6.6 	
      Voluntary cancellation

	 	 	 
		
      The Borrower may cancel all or part of the Available
      Commitment for a Facility by notifying the Financier on or before the
      third Business Day before the cancellation is to take effect. A partial
      cancellation must be at least US$250,000 and a whole multiple of
      US$250,000 (or an amount equal to the Available Commitment for the
      Facility). Once given, the notice is irrevocable.

	 	 	 
	6.7 	
      Automatic cancellation at end of Availability
      Period

	 	 	 
		
      At 5.00 pm on the last day of the Availability Period of
      a Facility, the Available Commitment for the Facility is cancelled
      automatically.

	Part 5 Standard terms - all Facilities 
	 

	7 	
      Payments

	 	 	 
	7.1 	
      Manner of payment

	 	 	 
		
      Each Obligor agrees to make payments (including by way of
      reimbursement) under this document:

	 	 	 
		(a) 	
      on the due date (or, if that is not a Business Day, on
      the next Business Day unless that day falls in the following month or
      after the applicable Maturity Date, in which case, on the previous
      Business Day);and

	 	 	 
		(b) 	
      not later than 10.00 am in the place for payment;
    and

	 	 	 
		(c) 	
      in US dollars in immediately available funds;
  and

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		(d) 	
      in full without set-off or counterclaim, and without any
      deduction or withholding in respect of Taxes unless prohibited by law;
      and

	 	 	 	 
		(e) 	
      to the Financier by payment into the account nominated by
      the Financier, or by payment as the Financier otherwise directs.

	 	 	 	 
	7.2 	
      Currency indemnity

	 	 	 	 
		
      Each Obligor waives any right it has in any jurisdiction
      to pay an amount other than in US Dollars. However, if a Finance Party
      receives an amount in a currency other than US Dollars:

	 	 	 	 
		(a) 	
      the Finance Party may convert the amount received into US
      Dollars on the day and at such rates (including spot rate, same day value
      rate or value tomorrow rate) as it reasonably considers appropriate. It
      may deduct its usual Costs in connection with the conversion;
and

	 	 	 	 
		(b) 	
      the Obligor satisfies its obligation to pay in US Dollars
      only to the extent of the amount of US Dollars obtained from the
      conversion after deducting the Costs of the conversion.

	 	 	 	 
		
      If a judgment, order or proof of debt for an amount in
      connection with a Finance Document is expressed in a currency other than
      US Dollars, to the extent that the rate exchange to convert into US
      Dollars used for the purpose of the judgment, order or acceptance of proof
      of debt is less than the rate of exchange used by the Finance Party under
      this clause, then each Obligor agrees to indemnify the Finance Party for
      that difference.

	 	 	 	 
		
      Each Obligor agrees to pay amounts due under this
      indemnity on demand from the Finance Party.

	 	 	 	 
	7.3 	
      GST

	 	 	 	 
		(a) 	
      Unless expressly stated otherwise in a Finance Document,
      all amounts payable or consideration to be provided under a Finance
      Document are exclusive of GST.

	 	 	 	 
		(b) 	
      If GST is payable on any supply made under a Finance
      Document, for which the consideration is not expressly stated to include
      GST, the recipient agrees to pay to the supplier an additional amount
      equal to the GST at the same time that the consideration for the supply,
      or the first part of the consideration for the supply (as the case may
      be), is to be provided. However:

	 	 	 	 
			(i) 	
      the recipient need not pay the additional amount until
      the supplier gives the recipient a tax invoice or an adjustment note;
      and

	 	 	 	 
			(ii) 	
      if an adjustment event arises in respect of the supply,
      the additional amount will must be adjusted to reflect the adjustment
      event and the recipient or the supplier (as the case may be) must make any
      payments necessary to reflect the adjustment; and

	 	 	 	 
			(iii) 	
      this clause 7.3 does not apply to the extent that the GST
      on the supply is payable by the recipient under Division 84 of the GST
      Act.

	 	 	 	 
		(c) 	
      If a party is required under a Finance Document to
      indemnify another party or pay or reimburse Costs of another party, the
      party agrees to pay the relevant amount less any input tax credits to
      which the other party (or to which the representative member for a GST group of
  which the other party is a member) is entitled.

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	 	(d) 	
      A term which has a defined meaning in the GST Law has the
      same meaning used in this clause 7.3. GST Law has the same meaning it has
      in the A New Tax System (Goods and Services Tax) Act 1999 (Cth).

	8
    	
      Fees

	 	 
	8.1 	
      Establishment fee

	 	 
		
      The Borrower agrees to pay an establishment fee for each
      Facility as set out below on the date of this
document:

	Facility name 	Establishment fee 
	Revolving Loan 	1.5% of the Commitment 
	Trade Finance Facility 	1.5% of the Commitment

	8.2 	
      Line fee

	 	 
		
      During the Availability Period for each Facility, the
      Borrower agrees to pay a line fee for each Facility as set out
    below:

	Facility name 	Line fee 
	Trade Finance Advance Facility 	2% per annum of the Commitment 
	Trade Finance Facility 	2% per annum of the Commitment

The line fee is payable on each Quarter
End Date in arrears after the date of this document and on the last day of the
Availability Period for the relevant Facility. 

If the Borrower cancels any of the
Available Commitment for a Facility, it agrees to pay the line fee in respect of
the cancelled amount up to and including the cancellation date.

The line fee accrues daily, from the
date of this document, and is calculated on actual days elapsed using a year of
360 days (as determined by reference to usual market practice for the relevant
currency). 

	9
    	
      Withholding tax

	 	 	 
	9.1 	
      Tax deduction and gross up of payments by
      Obligor

	 	 	 
		
      If an Obligor is required by law to deduct or withhold an
      amount in respect of Taxes from a payment by an Obligor to a Finance Party
      under any Finance Document, then:

	 	 	 
		(a) 	
      the Obligor agrees to deduct or withhold the amount (and
      any further amounts it is required to deduct or withhold from any
      additional amount due under clause 9.1(b)) and pay that amount to the
      relevant authority in accordance with applicable law and give the original
      receipts to the Finance Party; and

	 	 	 
		(b) 	
      if the amount deducted or withheld is in respect of
      Indemnified Taxes, the Obligor agrees to pay an additional amount so that,
      after making the deduction or withholding and further deductions or
      withholdings applicable to additional amounts payable under this clause,
      the Finance Party receives (at the time the payment is due) the amount it
      would have received if no deductions or withholdings had been
    required.

    	© King & Wood
      Mallesons 	Facility Agreement 	39 
	26683604_4 	 
    	  

	
      9.2 
	
      FATCA deduction and gross up by Obligor

	
       
	
       
	
       
	
       

		
      (a) 
	
      If an Obligor is required by FATCA to deduct or withhold
      an amount from a payment by an Obligor to a Finance Party under any
      Finance Document, then the Obligor agrees to:

	
       
	
       
	
       
	
       

			
      (i) 
	
      deduct or withhold the amount (and any further amounts it
      is required to deduct or withhold from any additional amount due under
      clause 9.2(a)(ii)) and pay that amount to the relevant authority in
      accordance with applicable law and give the original receipts to the
      Finance Party; and

	
       
	
       
	
       
	
       

			
      (ii) 
	
      pay an additional amount so that, after making the
      deduction or withholding and further deductions or withholdings applicable
      to additional amounts payable under this clause, the Finance Party
      receives (at the time the payment is due) the amount it would have
      received if no deductions or withholdings had been
  required.

The Borrower agrees to notify the
Finance Party promptly after it becomes aware that an Obligor must make such a
deduction or withholding (or that there is any change in the rate or the basis
of the deduction or withholding). The Finance Parties agree to notify the
Borrower and that Obligor if it becomes aware that such a payment is payable to
a Finance Party.

	 	(b) 	
      The Financier represents and warrants to the Obligors
      that it is a United Kingdom Financial Institution as defined under the
      IGA.

	9.3 	
      FATCA deduction by the Finance Party

	 	 	 
		(a) 	
      If a Finance Party is required by FATCA to deduct or
      withhold an amount from a payment under any Finance Document, it may make
      the deduction or withholding and any payment required in connection with
      that deduction or withholding. A Finance Party is not required to increase
      any payment in respect of which it makes such deduction or withholding or
      otherwise compensate the recipient of the payment for that deduction or
      withholding. If a Finance Party becomes aware that it must make such a
      deduction or withholding in respect of a payment to another party (or that
      there is any change in the rate or the basis of such a deduction or
      withholding) agrees to notify that party and the Borrower.

	 	 	 
		(b) 	
      The Borrower indemnifies the Finance Parties against, and
      agrees to reimburse and compensate the Finance Party for, any liability or
      loss arising from, and any Costs incurred which the Finance Party
      reasonably considers that it is or will be required to pay, deduct or
      withhold in connection with/as a result of the Finance Party making a
      deduction or withholding required by FATCA in respect of a payment due to
      it under a Finance Document. The Borrower agrees to pay amounts due under
      this indemnity on demand from the Finance Party.

	 	 	 
		(c) 	
      If the Finance Party makes, or intends to make, a claim
      under clause 9.3(b), it agrees to promptly notify the Borrower of the
      deduction or withholding under clause 9.3(b) which will give, or has
      given, rise to the claim.

	 	 	 
	9.4 	
      FATCA information

	 	 	 
		(a) 	
      If another party reasonably asks, each party agrees to do
      the following within 10 Business Days:

	 	 	 
			
      (i) 
	confirm whether or not it is a FATCA Exempt Party;
    and 	 

	© King & Wood Mallesons 	Facility
      Agreement 	40 
	26683604_4 	  	  

	 	 	
      (ii)   
	
      give all documents and other information relating to its
      status under FATCA (including its applicable “passthru payment percentage”
      or other information required under the United States of America Treasury
      Regulations or other official guidance including intergovernmental
      agreements) the other party reasonably requests for the purposes of the
      other party's compliance with FATCA. 

	 	 	 	 
		(b) 	
      If a party confirms to another party under clause
      9.4(a)(i) that it is a FATCA Exempt Party and it later becomes aware that
      it is not, or has ceased to be a FATCA Exempt Party, that party agrees to
      notify the other party promptly.

	 	 	 	 
		(c) 	
      Despite clause 9.4(a), the Financier need not do anything
      which the it reasonably considers would or may constitute a breach of any
      law, any fiduciary duty or a duty of confidentiality.

	 	 	 	 
		(d) 	
      If a party fails to confirm its status or to supply
      documents or other information requested under clause 9.4(a) (including
      where clause 9.4(c) applies), then until the party provides the
      confirmation or documents or other information:

	 	 	 	 
			(i) 	
      if the party failed to confirm whether it is (and/or
      remains) a FATCA Exempt Party, the party is taken not to be a FATCA Exempt
      Party for the purposes of the Finance Documents; and

	 	 	 	 
			(ii) 	
      if the party failed to confirm its applicable “passthru
      payment percentage”, the party’s applicable “passthru payment percentage”
      is taken to be 100% for the purposes of the Finance Documents (and
      payments made under them).

	 	 	 	 
	9.5 	
      Tax indemnity

The Borrower indemnifies each Finance
Party against, and agrees to reimburse and compensate the Finance Party for, any
liability or loss arising from, and any Costs incurred in connection with,
Indemnified Taxes that the Finance Party reasonably considers that the Finance
Party is required to pay, deduct or withhold in connection with a Finance
Document or a payment, receipt or any other transaction contemplated by any
Finance Document. 

The Borrower agrees to pay amounts due
under this indemnity on demand from the Finance Party.

	9.6 	
      Exclusions for FATCA

No amount is payable to a Finance Party
under clause 9.5 (“Tax indemnity”) to the extent the relevant liability, loss or
Cost: 

		(a) 	
      is compensated for by a payment under clause 9.2 (“FATCA
      deduction and gross up by Obligor”) or; or

	 	 	 
	 	
      (b)  
	
      is compensated for by a payment under clause
    9.3(b).

	 	 	 
	9.7 	
      Tax credit

	 	 	 
		
      This clause 9.7 applies if:

	 	 	 
		(a) 	
      an Obligor complies with clause 9.1 (“Tax deduction and
      gross up of payments by Obligor ”); or

	 	 	 
		(b) 	
      an Obligor makes a FATCA Payment;
or

	© King & Wood Mallesons 	Facility
      Agreement 	41 
	26683604_4 	  	  

	 	(c) 	
      the Borrower indemnifies the Finance Parties under clause
      9.5 (“Tax indemnity”),

and, as a result, the Finance Party
receives a tax credit, tax rebate or similar benefit for any Tax payable by it
that in the Finance Party’s opinion is referable to the amount deducted or
withheld and paid to the relevant authority or to the indemnity amount paid to
the Finance Party.

In that case, the Finance Party agrees
to reimburse to the Obligor an amount equal to the amount that the Finance Party
considers to be the proportion of the credit, rebate or benefit as will leave
the Finance Party (after the reimbursement) in no worse position than it would
have been if the circumstances had been that no deduction or withholding was
required under clauses 9.1 (“Tax deduction and gross up of payments by Obligor
”) or no FATCA Payment had been required to be made by the Obligor or no
indemnity amount was payable under clause 9.5 (“Tax indemnity”). However, the
Finance Party need pay only to the extent it can do so in its opinion without
prejudicing the retention of the amount of the credit, rebate or other benefit.
In complying with this clause, the Finance Party need not disclose to the
Obligor information about their tax affairs or order them in a particular way.

	9.8 	
      Payments, minimisation and other
remedies

	 	 	 	 
		(a) 	
      The Borrower may refuse a demand for payment under this
      clause 9 to the extent that the relevant consequences could have been
      avoided if the Finance Party had not failed to comply with clause
      10.3(b).

	 	 	 	 
		(b) 	
      If a payment is required under this clause 9, the parties
      may have other rights and obligations under clause 10.3(b).

	 	 	 	 
	10
    	
      Increased costs and illegality

	 	 	 	 
	10.1 	
      Increased costs

	 	 	 	 
		(a) 	
      (Claims for compensation) If a Finance Party
      determines that a Regulatory Change, is likely to, directly or indirectly
      (“Increased Costs”):

	 	 	 	 
			(i) 	
      increases the cost of a Facility to the Finance Party or
      any of its Related Entities; or

	 	 	 	 
			(ii) 	
      reduces any amount received or receivable by, or the
      effective return to, the Finance Party or any of its Related Entities, in
      connection with a Facility; or

	 	 	 	 
			(iii) 	
      reduces the return on capital allocated to a Facility, or
      the overall return on capital of the Finance Party, or any of its Related
      Entities,

then the Finance Party agrees to give
notice to the Borrower of such Increased Costs. The Borrower agrees to pay,
following receipt of notice of Increased Costs, from the Finance Party any
amount which the Finance Party certifies is necessary to compensate the Finance
Party or any of its Related Entities. 

	 	(b) 	
      (Amounts that cannot be claimed) This clause 10.1
      does not apply to the extent that the relevant cost or
reduction:

	 	 	 	 
	 		(i) 	
      is a deduction, withholding, liability, loss or a Cost
      described in clause 9 (“Withholding tax”);

	 	 	 	 
	 		(ii) 	
      relates to a FATCA Deduction required to be made by an
      Obligor or a Finance Party;

	© King & Wood Mallesons 	Facility
      Agreement 	42 
	26683604_4 	  	  

	 		
      (iii) 
	compensated for by clause 9.3(b). 
	 	 
	10.2 	
      Illegality or
impossibility

If a Finance Party determines that a
Regulatory Change makes it (or will make it) illegal or impossible in practice
for the Finance Party to provide, or continue to provide, financial
accommodation under the Finance Documents, the Finance Party must notify the
Borrower in writing (“Illegality Notice”). After providing an Illegality
Notice to the Borrower the Finance Party may, by further notice in writing to
the Borrower: 

	 	
      (a) 
	
      suspend or cancel all or some of the Commitments as
      specified in the notice; and

	 	
       
	
       

	 	
      (b) 
	
      require the Borrower to prepay all or part of any
      Utilisation affected by the illegality or impossibility (together with any
      accrued but unpaid interest and fees in connection with the Utilisation)
      as specified in the notice.

If the Borrower is required to make a
prepayment under this clause, the Borrower agrees to prepay the amount specified
within 30 Business Days after the Borrower receives the notice (or, if earlier,
on the date the illegality or impossibility arises).

The suspension or cancellation must
apply only to the extent necessary to avoid the illegality or impossibility and
in the case of a suspension, may continue only as long as the illegality or
impossibility continues. 

	10.3 	
      Payments, minimisation and other
remedies

	 	 	 
		(a) 	
      (Borrower cannot refuse to pay) The Borrower may
      not refuse a demand for payment under this clause 10 to the extent that
      the relevant consequences could have been avoided, unless the Finance
      Party failed to comply with paragraph (b) below.

	 	 	 
		(b) 	
      (Finance Party must try to minimise) The Finance
      Party agrees to take all reasonable steps to mitigate any circumstances
      which arise and which result in or would result in any amount becoming
      payable by an Obligor or the Borrower, or any Commitment being cancelled,
      under clause 9 (“Withholding tax”) or this clause 10 (including making the
      relevant financial accommodation available by some alternative means such
      as changing its lending office or making the financial accommodation
      available through a Related Entity). The Finance Party agrees to do this
      in consultation with the Borrower and the Borrower agrees to pay on demand
      the Finance Party’s Costs of taking any steps under this clause.

	 	 	 
	11
    	
      Representations and warranties

	 	 	 
	11.1 	
      General representations and warranties

	 	 	 
		
      Each Obligor represents and warrants (except in relation
      to matters disclosed to the Finance Parties and accepted by the Finance
      Parties in writing) that:

	 	 	 
		(a) 	
      (status) it and each of its Subsidiaries is a
      limited liability company, has been incorporated or formed in accordance
      with the laws of its place of incorporation or formation, is validly
      existing under those laws, has the power to sue and be sued in its own
      name and has power and authority to own its assets and carry on its
      business as it is now being conducted; and

	© King & Wood Mallesons 	Facility
      Agreement 	43 
	26683604_4 	  	  

	 	(b) 	
      (good standing) it is qualified to do business
      and, where relevant, is in good standing in every jurisdiction, including
      its jurisdiction of incorporation, where its assets are located and
      wherever it is necessary to carry out its business and operations;
    and

	 	 	 	 
	 	(c) 	
      (FATCA status) other than in relation to Strata
      and Peninsula Holdings, it is not a FATCA FFI or a US Tax Obligor;
    and

	 	 	 	 
	 	(d) 	
      (power) It has power to enter into the Transaction
      Documents to which it is a party, to comply with its obligations under
      them and exercise its rights under them and has taken all necessary action
      to authorise its entry into and performance of those documents and the
      transactions contemplated by those documents; and

	 	 	 	 
	 	(e) 	
      (no contravention) the entry by it into, its
      compliance with its obligations and the exercise of its rights under, the
      Transaction Documents to which it is a party do not and will not conflict
      with:

	 	 	 	 
	 		(i) 	
      its constituent documents or cause a limitation on its
      powers or the powers of its directors to be exceeded; or

	 	 	 	 
	 		(ii) 	
      any law binding on or applicable to it or its assets;
      or

	 	 	 	 
	 		(iii) 	
      any document or agreement binding on or applicable to it
      or its assets or constitute a review event, event of default, termination,
      cash cover requirement, prepayment or similar event (each however
      described) under any such document or agreement where this has had or is
      likely to have a Material Adverse Effect; and

	 	 	 	 
	 	(f) 	
      (authorisations) it has in full force and effect
      each Authorisation necessary for it to:

	 	 	 	 
	 		(i) 	
      enter into the Transaction Documents to which it is a
      party, to comply with its obligations and exercise its rights under them,
      and to allow them to be enforced; and

	 	 	 	 
	 		(ii) 	
      carry on any business it conducts to the extent that
      failure to obtain, comply with or maintain that Authorisation would be
      likely to have, a Material Adverse Effect; and

	 	 	 	 
	 	(g) 	
      (Validity of obligations and ranking)

	 	 	 	 
	 		(i) 	
      its obligations under each Transaction Document to which
      it is a party are valid and binding and are enforceable against it in
      accordance with its terms subject to any stamping and registration
      requirements, applicable equitable principles and laws generally affecting
      creditors’ rights; and

	 	 	 	 
	 		(ii) 	
      it benefits by entering into the Transaction Documents to
      which it is a party; and

	 	 	 	 
	 		(iii) 	
      the Collateral is not subject to any other Encumbrance,
      other than any Permitted Encumbrance; and

	 	 	 	 
	 		(iv) 	
      its payment obligations under the Transaction Documents
      rank at least equally with the claims of all its other unsecured and
      unsubordinated creditors (other than obligations mandatorily preferred by
      law applying to debtors generally); and

	 	 	 	 
	 	(h) 	
      (no Event of Default or
default)

	© King & Wood Mallesons 	Facility
      Agreement 	44 
	26683604_4 	  	  

	 		(i) 	
      no Event of Default is continuing or would result from
      the Utilisation being provided; and

	 	 	 	 
	 		(ii) 	
      neither it nor any of its Subsidiaries is in breach of a
      law or document or agreement binding on or applicable to any of them or
      their assets and no review event, event of default, termination, cash
      cover requirement, prepayment or similar event (each however described)
      exists under any such document or agreement, which has had, or is likely
      to have, a Material Adverse Effect; and

	 	 	 	 
	 		(iii) 	
      no person has contravened or will contravene Chapter 2E
      (related parties) or Part 2J.3 (financial assistance) of the Corporations
      Act (or any equivalent legislation in any other jurisdiction) by entering
      into any Finance Document or participating in any transaction in
      connection with a Finance Document; and

	 	 	 	 
	 	(i) 	
      (Financial Reports)

	 	 	 	 
	 		(i) 	
      its most recent Financial Report given to the Finance
      Parties complies with all applicable law and IFRS; and

	 	 	 	 
	 		(ii) 	
      that Financial Report gives a true and fair view of its
      financial position and performance and, if it is required to prepare
      consolidated financial statements, the financial position and performance
      of the consolidated entity constituted by it and the entities it is
      required to include in those statements; and

	 	 	 	 
	 		(iii) 	
      there has been no change in its financial position (or if
      it is required to prepare consolidated financial statements, in the
      financial position of the consolidated entity constituted by it and the
      entities it is required to include in those statements) since the date to
      which its most recent Financial Report given to the Finance Parties was
      prepared which has had, or is likely to have, a Material Adverse Effect;
      and

	 	 	 	 
	 	(j) 	
      (Security Shares) all of the Security Shares are
      fully paid; and

	 	 	 	 
	 	(k) 	
      (ownership of assets)

	 	 	 	 
	 		(i) 	
      it and each of its Subsidiaries is the legal and
      beneficial owner of the Collateral (or if leased or licensed, its right,
      title or interest in them) unless it is named as a trustee in Schedule 1
      (“Guarantors”), free from any Encumbrance, other than any Permitted
      Encumbrance; and

	 	 	 	 
	 		(ii) 	
      there is no Compulsory Acquisition affecting it or any of
      its Subsidiaries’ assets; and

	 	 	 	 
	 	(l) 	
      (Encumbrances) each Encumbrance in favour of the
      Security Trustee is effective over the property purported to be secured by
      it and has the priority contemplated by that Encumbrance; and

	 	 	 	 
	 	(m) 	
      (no security interests)

	 	 	 	 
	 		(i) 	
      it and each of its Subsidiaries is the only holder of,
      and has good title to (or valid leases or licences of) all assets it uses
      in carrying on its business or which it represents it owns, leases or
      licences in its most recent Financial Report, free from
  any Encumbrance, including in respect of the Security Shares other
than any Permitted Encumbrance; and 

	© King & Wood Mallesons 	Facility
      Agreement 	45 
	26683604_4 	  	  

	 		(ii) 	
      its property is not subject to any easement, restrictive
      covenant, lease, licence, right of set-off, equity, native title or other
      interest or claim other than under a Permitted Encumbrance; and

	 	 	 	 	 
	 		(iii) 	
      the Permitted Encumbrance:

	 	 	 	 	 
	 			(A) 	
      permit the Guarantors granting the guarantee and
      indemnity under clause 17 (“Interest on overdue amounts”); and

	 	 	 	 	 
	 			(B) 	
      permit the Obligor granting the relevant Encumbrance
      under the Security; and

	 	 	 	 	 
	 		(iv) 	
      subject to completing any perfection requirements and
      subject to any creditors mandatorily preferred by any law, each
      Encumbrance has the priority which it is expressed to have; and

	 	 	 	 	 
	 	(n) 	
      (own enquiries) it has relied on its own enquiries
      before entering into any Transaction Document; and

	 	 	 	 	 
	 	(o) 	
      (Laws) it has complied with all Laws applicable to
      it or its business where failure to comply is likely to have a Material
      Adverse Effect; and

	 	 	 	 	 
	 	(p) 	
      (solvency) it and each of its Subsidiaries is not
      Insolvent; and

	 	 	 	 	 
	 	(q) 	
      (litigation) there is no current, pending or (to
      its knowledge, having made due enquiry), threatened proceeding,
      investigation or claim affecting it or any of its Subsidiaries or any of
      their assets before a court, authority, commission or arbitrator in which
      a decision against it or the Subsidiary is likely and which (either alone
      or together with other decisions) would be likely to have a Material
      Adverse Effect; and

	 	 	 	 	 
	 	(r) 	
      (information)

	 	 	 	 	 
	 		(i) 	
      it has disclosed in writing to the Finance Parties all
      documents and other information relating to it and the Group, their
      assets, the Transaction Documents and anything in connection with them,
      which a reasonable person in the Obligor’s position would consider
      material to the Finance Parties’ decision to enter into the Transaction
      Documents; and

	 	 	 	 	 
	 		(ii) 	
      all documents (including any prospectus, information
      memorandum or offer document) and information (other than projections and
      forecasts) given to the Finance Parties by or on behalf of an Obligor or
      any Group member in connection with a Finance Document or any transaction
      in connection with it are complete and not misleading or deceptive, in any
      material respect (including by omission) as at the date they are given or
      as at their stated date; and

	 	 	 	 	 
	 		(iii) 	
      all financial projections and forecasts given to the
      Finance Parties by or on behalf of an Obligor or any Group member in
      connection with a Transaction Document or any transaction in connection
      with it have been prepared in good faith on the basis of recent historical
      information and on the basis of reasonable assumptions as at the date they
      are given or as at their stated date; and

	© King & Wood Mallesons 	Facility
      Agreement 	46 
	26683604_4 	  	  

	 		(iv) 	
      neither it nor any of its Subsidiaries nor any person
      acting on its or their behalf in connection with a Transaction Document,
      or any transaction in connection with it, has engaged in conduct that is
      misleading or deceptive (or likely to mislead or deceive) in any material
      respect (including by omission); and

	 	 	 	 
	 	(s) 	
      (Taxes)

	 	 	 	 
	 		(i) 	
      it has paid or procured payment of all Taxes when due and
      payable other than any Tax being contested in good faith (where payment is
      not required before the dispute is resolved and the Obligors have
      sufficient financial resources to pay promptly the relevant amount if a
      legally binding determination is made that payment is required, which
      amount has been set aside or provisioned for in the Financial Reports);
      and

	 	 	 	 
	 		(ii) 	
      no outstanding claims for Taxes not reflected in its most
      recent accounts exist, which are required to be reflected in the accounts
      under IFRS; and

	 	 	 	 
	 		(iii) 	
      it is not overdue in the filing of any Tax returns or
      other information required to be filed by it with any relevant tax
      authority to ensure that it complies with any obligation to pay Tax;
      and

	 	 	 	 
	 		(iv) 	
      it has not incurred any tax liabilities on behalf of any
      entity or person which is not an Obligor; and

	 	 	 	 
	 	(t) 	
      (not a trustee and no immunity)

	 	 	 	 
	 		(i) 	
      unless stated in Schedule 1 (“Guarantors”), it does not
      enter into any Finance Document or hold any asset as trustee;
and

	 	 	 	 
	 		(ii) 	
      neither it nor any of its Subsidiaries or their assets
      has immunity from the jurisdiction of a court or from legal process;
      and

	 	 	 	 
	 	(u) 	
      (listings in respect of the Borrower)

	 	 	 	 
	 		(i) 	
      it is listed on the official list of the ASX;
  and

	 	 	 	 
	 		(ii) 	
      it has not been removed from the official list of the
      ASX; and

	 	 	 	 
	 		(iii) 	
      no removal from the official list has been threatened by
      the ASX; and

	 	 	 	 
	 	(v) 	
      (continuous disclosure) there is no current
      failure by the Borrower to comply with its periodic and continuous
      disclosure obligations under the ASX Listing Rules (including, without
      limitation, ASX Listing Rule 3.1) and the Corporations Act; and

	 	 	 	 
	 	(w) 	
      (no reliance)

	 	 	 	 
	 		(i) 	
      it has entered into the Finance Documents to which it is
      a party without relying on any Finance Party or Related Entity of any
      Finance Party (in whatever capacity) or their advisers or on any
      representation, warranty, statement, undertaking or conduct of any kind
      made by any of them or on their behalf except as expressly set out in the
      Finance Documents; and

	 	 	 	 
	 		(ii) 	
      it has obtained its own tax and legal advice on the
      Finance Documents and the transactions in connection with
  them.

	© King & Wood Mallesons 	Facility
      Agreement 	47 
	26683604_4 	  	  

	11.2 	
      Project representations and warranties

	 	 	 	 
		
      Each Obligor represents and warrants (except in relation
      to matters disclosed to the Finance Parties and accepted by the Finance
      Parties in writing) that:

	 	 	 	 
		(a) 	
      (Environmental breaches)

	 	 	 	 
			(i) 	
      there is no pending or threatened litigation concerning
      any Environmental Approval which if adversely decided would result in a
      Material Adverse Effect; and

	 	 	 	 
			(ii) 	
      there is no existing Contamination of the Project which
      is reasonably likely to result in an Environmental Event; and

	 	 	 	 
			(iii) 	
      no remedial work, other than Standard Remediation, is
      required in connection with the Project to comply with any Environmental
      Approval or Environmental Law which is reasonably likely to have a
      Material Adverse Effect; and

	 	 	 	 
			(iv) 	
      the conditions attaching to any Environmental Approval
      are capable of implementation without any Material Adverse Effect;
    and

	 	 	 	 
		(b) 	
      (Environmental compliance)

	 	 	 	 
			(i) 	
      all Environmental Approvals which are material and
      necessary for the Project have been obtained and are in full force and
      effect; and

	 	 	 	 
			(ii) 	
      the Project complies with all Environmental Laws and
      Environmental Approvals where failure to comply is likely to have a
      Material Adverse Effect; and

	 	 	 	 
			(iii) 	
      it will provide notice of any Hazardous Materials
      Activities the existence of which have had or could reasonably be expected
      to result in an Environmental Event; and

	 	 	 	 
			(iv) 	
      any Release in respect to the Project has the benefit of
      a current Authorisation; and

	 	 	 	 
			(v) 	
      all material Authorisations to the extent then required
      under any Environmental Law or Environmental Approval to occupy, use or
      develop the Project are in full force and effect; and

	 	 	 	 
		(c) 	
      (claims) to the best of its knowledge, information
      and belief there are no caveats, native title claims or claims of any
      other nature whatsoever in respect of the Project (including any claim
      that a person, has a connection with the land) which are reasonably likely
      to have a Material Adverse Effect; and

	 	 	 	 
		(d) 	
      (Mining activity Authorisations) all mining
      tenements and Authorisations necessary and which it is possible and
      practical to obtain at the date of the making or repetition (as the case
      may be) of this representation and warranty for the carrying on of mining
      operations on the Project Tenements, the conduct of the Project, the sale
      of Product and for the entering into and performing of the obligations of
      any person under Project Documents, have been obtained and are held by the
      relevant person, are in full force and effect by the date of the making or
      repetition (as the case may be) of this representation and warranty and
      the Obligors have no reason to believe that those to be obtained in the
      future will not be granted; and

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		(e) 	
      (compliance with Project Tenements) all of the
      terms and conditions of the Project Tenements have been complied with and
      no event has occurred and no condition exists (or it may reasonably be
      anticipated by the Obligors, would exist by virtue of impending notice,
      lapse of time or the satisfaction of some other condition) which would
      permit the cancellation, termination, forfeiture or suspension of any of
      the Project Tenements and would result in a Material Adverse Effect;
      and

	 	 	 	 
		(f) 	
      (no orders) it has not received from any
      Government Agency any notice or order requiring an Obligor, Group member
      or any other person to perform or cease to perform any act in relation to
      the Project or so as to restrict the performance of the terms of any of
      the Project Documents which have been executed or the construction,
      development and operation of the Project in accordance with the Life of
      Mine Plan, the BCFM and the Project Documents; and

	 	 	 	 
		(g) 	
      (no revocation) no Obligor has received any notice
      of or is aware of any intention of any Government Agency to revoke or
      resume any of the Project Tenements or Authorisations; and

	 	 	 	 
		(h) 	
      (Project Documents)

	 	 	 	 
			(i) 	
      it has given the Finance Parties copies of all Project
      Documents and all such copies are true and complete; and

	 	 	 	 
			(ii) 	
      the copies of the Project Documents which have been
      provided to the Finance Parties contain the entire agreement of the
      parties to them and supersede all previous agreements and understandings
      between them in relation to the Project; and

	 	 	 	 
			(iii) 	
      none of the Project Documents nor any of the terms or
      conditions of the Project Documents have been materially varied,
      supplemented or replaced without being approved in writing by the Finance
      Parties; and

	 	 	 	 
			(iv) 	
      no Obligor has breached any of its obligations under the
      Project Documents and neither is aware of any act, omission or
      circumstance having occurred which would give any other party legal
      grounds to terminate, rescind or vary any Project Document;

	 	 	 	 
		(i) 	
      (Uranium Agreement) the final executed version of
      each Uranium Agreement will be substantially the same as the draft version
      of each Uranium Agreement provided to each Finance Party prior to the date
      of this document; and

	 	 	 	 
		(j) 	
      (intellectual property) each relevant Obligor is
      entitled to use, or will be entitled to use at the relevant time, all
      intellectual and commercial property rights necessary for, or intended to
      be used by that person in conjunction with the operation of the
      Project.

	 	 	 	 
	11.3 	
      Repetition of representations and
  warranties

The representations and warranties in
this clause 11 (except that in clause 11.1(r)(i) which is taken to be made only
on the date of this document) and each representation and warranty made under a
Security Documents are taken to be made on the date of this document and also
made (by reference to the then current circumstances) on:

	 	(a) 	
      the date of each Utilisation Notice and each Utilisation
      Date; and

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      Agreement 	49 
	26683604_4 	  	  

	 	(b) 	
      each date on which an Obligor acquires
  Collateral.

Any disclosure against a representation
and warranty (including in a Utilisation Notice or Interest Period Selection
Notice does not limit the Finance Parties’ rights under this document (including
under clause 14 (“Default”)). 

	11.4 	
      Reliance

Each Obligor acknowledges that the
Finance Parties have entered into the Finance Documents in reliance on the
representations and warranties in this clause 11. 

	12
    	
      Undertakings

	 	 	 
	12.1 	
      Introduction

	 	 	 
		
      Each Obligor agrees to comply with the undertakings set
      out in this clause 12 unless the Finance Parties consent in writing to the
      non-compliance.

	 	 	 
	12.2 	
      Financial Reports

	 	 	 
		
      Each Obligor agrees to give the Finance Parties the
      following:

	 	 	 
		(a) 	
      (annual Financial Report) its audited Financial
      Report for each financial year within 60 days after the end of that
      financial year; and

	 	 	 
		(b) 	
      (quarterly Financial Report) its unaudited
      non-consolidated internal Financial Report for each Quarter within 60 days
      after the end of the relevant Quarter; and

	 	 	 
		(c) 	
      (monthly operating reports) its monthly operating
      reports for the Group within 21 days of each month end.

	 	 	 
	12.3 	
      Information undertakings

	 	 	 
		
      Each Obligor agrees to give the Finance Parties the
      following:

	 	 	 
		(a) 	
      (Events of Default) full details of an Event of
      Default or Potential Event of Default, or Review Event and any step taken
      or proposed to remedy it; and

	 	 	 
		(b) 	
      (status certificates) on request from a Finance
      Party, a certificate signed by 2 of its directors which states whether an
      Event of Default or Potential Event of Default, or Review Event is
      continuing and if it is, any step taken or proposed to remedy it;
    and

	 	 	 
		(c) 	
      (litigation) full details of any current, pending
      or threatened proceeding, investigation or claim affecting it or any of
      its Subsidiaries or any of their assets before a court, authority,
      commission or arbitrator in which a decision against it or the Subsidiary
      (either alone or together with other decisions) would have, or is likely
      to have, a Material Adverse Effect; and

	 	 	 
		(d) 	
      (shareholders) a copy of any notice, circular,
      document or other written information it gives to its shareholders
      generally (or any class of them) to the extent that such documents and
      information is not available on the ASX website; and

	 	 	 
		(e) 	
      (notices or orders) a copy of any notice, order,
      summons or conviction from, or correspondence with, an authority,
      involving it which has had or is likely to have a Material Adverse Effect;
      and

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		(f) 	
      (corporate notices) a copy of any material notice
      received from a Government Agency; and

	 	 	 	 
		(g) 	
      (books of account) each Obligor will keep proper
      books of account relating to its business in accordance with IFRS, in
      which full, true and correct entries will be made of all dealings or
      transactions of or in relation to its or their business and affairs;
      and

	 	 	 	 
		(h) 	
      (Collateral) if the Security Trustee asks, the
      Obligors agree to supply the Security Trustee with any information about
      or documents affecting:

	 	 	 	 
			(i) 	
      the Collateral; or

	 	 	 	 
			(j) 	
      the Transaction Documents; or

	 	 	 	 
			(k) 	
      the financial affairs or business or the financial
      affairs or business of an Obligor or any of its Subsidiaries;
and

	 	 	 	 
		(l) 	
      (information) any document or other information
      that a Finance Party reasonably requests including any document or
      information necessary to enable the Finance Party to do any know your
      customer checks.

	 	 	 	 
	12.4 	
      General undertakings

	 	 	 	 
		
      Each Obligor agrees:

	 	 	 	 
		(a) 	
      (authorisations) to obtain, comply with and
      maintain each Authorisation necessary for:

	 	 	 	 
			(i) 	
      it to enter into the Transaction Documents to which it is
      a party, to comply with its obligations and exercise its rights under them
      and to allow them to be enforced; and

	 	 	 	 
			(ii) 	
      it to carry on its business as it is now being carried on
      to the extent that failure to do so would be likely to have, a Material
      Adverse Effect; and

	 	 	 	 
			(iii) 	
      it to ensure the timely development and operation of the
      Project in accordance with the BCFM, the Life of Mine Plan and the Project
      Documents; and

	 	 	 	 
			(iv) 	
      each Project Tenement; and

	 	 	 	 
		(b) 	
      (maintain all consents) do all things necessary to
      maintain its corporate existence in good standing and not transfer its
      jurisdiction of incorporation or enter into any merger, amalgamation or
      consolidation; and

	 	 	 	 
		(c) 	
      (comply with laws) to comply with all Laws binding
      on, or applicable to, it or its assets where failure to comply is likely
      to have a Material Adverse Effect (and the Obligor agrees to ensure that
      each person who uses or occupies its property does the same);
and

	 	 	 	 
		(d) 	
      (conduct of business and assets)

	 	 	 	 
			(i) 	
      to carry on its business in a proper, orderly and
      efficient manner and not to cease, or significantly change the general
      nature of, its business; and

	 	 	 	 
			(ii) 	
      to maintain its assets in good working order and
      condition (ordinary wear and tear excepted) and correct any defect to
      the extent that failure to do so would be likely to have a Material
Adverse Effect; and 

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	 	(e) 	
      (taxes)

	 	 	 	 
	 		(i) 	
      to pay all rates and Taxes due and payable by it, except
      those which it is contesting in good faith; and

	 	 	 	 
	 		(ii) 	
      to pay all rates and Taxes contested in good faith which
      remain due and payable by it after final determination or settlement of
      the contest; and

	 	 	 	 
	 		(iii) 	
      if it is not a member of a Tax Consolidated Group as at
      the date of this document, it agrees to only become a member of one with
      the consent of the Finance Parties; and

	 	 	 	 
	 	(f) 	
      (Title Documents) to deposit with the Security
      Trustee:

	 	 	 	 
	 		(i) 	
      all Title Documents relating to the Collateral to the
      extent such documents exist; and

	 	 	 	 
	 		(ii) 	
      any other documents the Security Trustee requests
      relating to the Collateral.

	 	 	 	 
	 		
      However, the Grantor need not deposit them if another
      person is holding them under a Permitted Encumbrance which has priority
      over this security; and

	 	 	 	 
	 	(g) 	
      (Protect title) to take all necessary steps to
      protect and enforce its title, and the Security Trustee’s Encumbrance, in
      the Collateral and keep the Collateral in good standing; and

	 	 	 	 
	 	(h) 	
      (Maintain value) not to do anything that is likely
      to materially lower the value of the Collateral; and

	 	 	 	 
	 	(i) 	
      (insurance) insure and keep insured with reputable
      insurers its assets and those of its Subsidiaries which are of an
      insurable nature in a manner and to an extent which it determines is
      reasonable and customary for a business enterprise engaged in a similar
      business and in a similar locality and for property of a similar nature;
      and

	 	 	 	 
	 	(j) 	
      (pay debts) pay or cause to be paid its financial
      obligations which are validly incurred, except those which it is
      contesting in good faith and in respect of which the relevant Obligor has
      made adequate provision if such financial obligations become payable;
      and

	 	 	 	 
	 	(k) 	
      (change of Obligor details) to notify the Security
      Trustee at least 14 days before:

	 	 	 	 
	 		(i) 	
      the Obligor (or if the Details indicate that the Obligor
      is a trust or partnership, the trust or the partnership) changes its name
      as recorded in a public register in its jurisdiction of incorporation or
      in its constituent documents; and

	 	 	 	 
	 		(ii) 	
      any ACN or ARBN allocated to the Obligor (or if the
      Details indicate that the Obligor is a trust or partnership, any ABN or
      ARSN allocated to the trust or any ABN allocated the partnership) changes,
      is cancelled or otherwise ceases to apply to it (or if it does not have
      any such applicable number, one is allocated, or otherwise starts to
      apply, to it); and

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	 	 	(iii) 	the Obligor becomes trustee of a trust, or a
      partner in a partnership, not stated in the Details; and  
	 	 	 	 
		(l) 	
      (future financing) provide the Financier with the
      first right to provide the Borrower with additional finance (subject to
      the terms and pricing offered by the Financier being comparable to other
      similar lenders) and the right to match within 28 Business Days any other
      offer made by any other financier to provide additional finance in
      connection with the Project; and

	 	 	 	 
		(m) 	
      (Corporate Services) in respect of the Borrower
      only, it agrees to consider utilising the corporate finance and equity
      capital markets advisory services of Investec during the term of the
      Facilities.

	 	 	 	 
	12.5 	
      Negative undertakings

	 	 	 	 
		
      Each Obligor agrees:

	 	 	 	 
		(a) 	
      (no Encumbrances) not to:

	 	 	 	 
			(i) 	
      create an Encumbrance or allow one to exist over any of
      its assets (or agree, attempt or take any step to do so) other than any
      Permitted Encumbrance; or

	 	 	 	 
			(ii) 	
      deposit money with a person in circumstances where the
      money is not repayable unless the Obligor, Group member or another person
      performs obligations (including to pay money) in an amount equal to or
      greater than US$250,000 individually or in total; and

	 	 	 	 
		(b) 	
      (not incur Finance Debt) not to incur any Finance
      Debt (including by entering into a deed of cross guarantee in the form
      prescribed by the Australian Securities and Investments Commission) or
      allow it to exist other than Permitted Finance Debt; and

	 	 	 	 
		(c) 	
      (not to provide Financial Accommodation) not
      provide any Finance Debt to any entity other than Permitted Financial
      Accommodation; and

	 	 	 	 
		(d) 	
      (no disposal) not to dispose of any of its assets
      or allow any interest in them to arise or be varied (or agree, attempt or
      take any step to do so) in each case whether in one or more voluntary or
      involuntary transactions (related or not) other than a Permitted Disposal
      and that the proceeds of any Permitted Disposal is required to be applied
      in accordance with clause 6.2(b); and

	 	 	 	 
		(e) 	
      (dividends) not to pay or declare any dividend or
      make any other distribution to anyone other than another Obligor
      unless:

	 	 	 	 
			(i) 	
      at the time of the proposed distribution each Financial
      Undertaking was satisfied; and

	 	 	 	 
			(ii) 	
      the Finance Parties received a satisfactory Compliance
      Certificate at least 10 days before the proposed date of distribution;
      and

	 	 	 	 
			(iii) 	
      there is no breach of any obligation under any Finance
      Document, no Event of Default, no Potential Event of Default and no Review
      Event subsisting before the proposed distribution; and

	 	 	 	 
			(iv) 	
      there will be no breach of any obligation under any
      Finance Document, no Event of Default, no Potential Event of
  Default and no Review Event as a result of the proposed distribution;
and 

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      (f) 
	
      (no transfer or reconstruction) not to transfer or
      change its jurisdiction of incorporation or formation or enter into any
      amalgamation, demerger, merger, consolidation or corporate reconstruction
      (except to carry out a reconstruction or amalgamation while solvent on
      terms approved by the Finance Parties); and 

	 	 	 
		
      (g) 
	
      (constitution) not to amend its constitution or
      constitutional documents, or permit it to be amended, in any way which
      would be likely to have a Material Adverse Effect; and 

	 	 	 
		
      (h) 
	
      (FATCA) that unless otherwise agreed by the
    Finance Parties, no Obligor becomes a FATCA FFI or a US Tax Obligor.    

	 	 	 
	
      12.6 
	
      Financial undertakings 

	 	 
		
      (a) 
	
      For so long as any amount is outstanding under a Facility
      or a Facility is available for utilisation, each Obligor undertakes to the
      Finance Parties (unless the Finance Parties agree otherwise) at all times
      to: 

	 	 	 
			
      (i) 
	
      (Minimum Liquidity): ensure that the Group has at
      least A$5,000,000 of Liquidity; and 

	 	 	 	 
			
      (ii) 
	
      (Minimum Tangible Net Worth): ensure that the
      Group’s Tangible Net Worth is not less than A$80,000,000; and 

	 	 	 	 
			
      (iii) 
	
      (Forward Annual Cover Ratio): ensure that for the
      Group, the Forward Cover Ratio (for each 24 month period ending on each
    Calculation Date or Special Calculation Date) is not less than 1.5:1.    

	 	 	 	 
		
      (b) 
	
      The Obligors agree that each Financial Undertaking will
      be tested on each Calculation Date and Special Calculation Date during the
      Availability Period (each date being a “Testing Date”). 

	 	 	 
		
      (c) 
	
      The Obligors undertakes to the Finance Parties to provide
      a Compliance Certificate within: 

	 	 	 
	
      
	
      
	
      (i) 
	
      21 days of each Calculation Date; and 

	 	 	 	 
	
      
	
      
	
      (ii) 
	
      5 days of each Special Calculation Date, 

	 	 	 	 
		
      confirming and setting out in reasonable detail
      computation’s establishing the Group’s compliance with each Financial
      Undertaking on each Testing Date. 

	 	 
	
      12.7 
	
      Project Modelling 

	 	 	 
	
      
	
      The Borrower undertakes: 

	 	 
	
      
	
      (a) 
	
      (Life of Mine Plan): in relation to the Life of
      Mine Plan that: 

	 	 	 
	
      
	
      
	
      (i) 
	
      the earlier of: 

	 	 	 	 
				
      (A) 
	
      45 days before each anniversary of the date of this
      document; and 

	 	 	 	 	 
				
      (B) 
	
      the date upon which changes to the Life of Mine Plan are
      being considered by the Group, it will provide to the Finance Parties a proposed updated Life
of Mine Plan to be review and approved by the Finance Parties (Proposed
LMP); and 

	© King & Wood Mallesons 	Facility
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	26683604_4 	  	  

	
       
	
       
	
      (ii)  
	
      Proposed LMP cannot be adopted without the written
      consent of the Finance Parties; and 

	
       
	
       
	
       
	
       

			
      (iii) 
	
      subject to clause 12.8 (“LMP Variations”), the Group will
      not modify or vary the Life of Mine Plan if such modification or variation
      would result in the forecast CFADS being reduced in any six month period
      in the BCFM by 10% or more (LMP Threshold) without the prior
      written consent of the Finance Parties; and

	
       
	
       
	
       
	
       

		
      (b) 
	
      (BCFM) in relation to the BCFM that:

	
       
	
       
	
       
	
       

			
      (i) 
	
      30 days before each anniversary of the date this
      document, it will provide to the Finance Parties a proposed updated BCFM
      to be reviewed and approved by the Finance Parties (Proposed BCFM);
      and

	
       
	
       
	
       
	
       

			
      (ii) 
	
      the Proposed BCFM cannot be adopted without the written
      consent of the Finance Parties; and

	
       
	
       
	
       
	
       

			
      (iii) 
	
      if there is any dispute between the Finance Parties and
      the Borrower in respect of assumptions proposed by the Borrower in the
      Proposed BCFM that the parties must consult in good faith to resolve such
      dispute but the decision of the Finance Parties, acting reasonably, as to
      whether to approved the Proposed BCFM is final and binding; and

	
       
	
       
	
       
	
       

		
      (c) 
	
      (Cash Budget) to provide to the Finance Parties on
      30 June and 31 December of each year a Cash Budget.

	 	 	 	 
	12.8 	
      LMP Variations

The Finance Parties acknowledge that
the Group is able to vary the Life of Mine Plan beyond the LMP Threshold without
the prior written consent of the Finance Parties if the trigger of the LMP
Threshold is solely as a result of a change in the price forecast of Uranium.

	12.9 	
      Undertakings in relation to the Project

	 	 	 	 	 
		
      The Obligors undertake:

	 	 	 	 	 
		(a) 	
      (mining business) to take or procure to be taken
      all action necessary or desirable in order to:

	 	 	 	 	 
			(i) 	
      operate the Project in accordance with the Life of Mine
      Plan (as agreed from time to time) and good mining practice; and

	 	 	 	 	 
			(ii) 	
      ensure that all material Project Assets are:

	 	 	 	 	 
				(A) 	
      maintained in good and efficient operating condition and
      working order (ordinary wear and tear excepted); and

	 	 	 	 	 
				(B) 	
      are protected from theft, loss or
  damage,

to the extent that a prudent operator
would do so and that any material defects in their condition which will or may
prejudice the development or operation of the Project are promptly rectified;
and 

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	 	(b) 	
      (Project Tenements) to ensure that it:

	 	 	 	 
	 		(i) 	
      holds and maintains its interest in the Project Tenements
      free of Encumbrances (other than Permitted Encumbrances) and the Project
      Tenements are not cancelled, suspended, reduced, abandoned and relocated,
      surrendered, defaulted against, allowed to lapse or be transferred except
      for statutory surrenders or with the prior written consent of the Finance
      Parties, and

	 	 	 	 
	 		(ii) 	
      applies for and obtains the renewal of each Project
      Tenement prior to the expiry of each Project Tenement; and

	 	 	 	 
	 		(iii) 	
      complies on time with and observes and performs all
      conditions and requirements of the Project Tenements and does whatever may
      be reasonably required to keep the Project Tenements in full force and
      effect; and

	 	 	 	 
	 		(iv) 	
      uses its best endeavours to procure the granting of
      mining tenements from mining tenement applications which are to become
      Project Tenements as soon as possible; and

	 	 	 	 
	 		(v) 	
      has rights of access to and entry upon all relevant
      freehold, leasehold and other land and rights to carry out all activities
      required for the purposes of the Project so as to enable the Project to be
      developed and carried out in accordance with the Life of Mine Plan and the
      Project Documents; and

	 	 	 	 
	 	(c) 	
      (Project Assets) to ensure that the Project Assets
      are used only for the purposes of the Project; and

	 	 	 	 
	 	(d) 	
      (Project Documents) to ensure that it:

	 	 	 	 
	 		(i) 	
      observes its obligations under each Project Document to
      which it is a party; and

	 	 	 	 
	 		(ii) 	
      takes the action that a prudent, diligent and reasonable
      person would take to cause each party to a Project Document to observe its
      obligations in connection with that Project Document and, if a party
      defaults in the performance of those obligations, the relevant Obligor
      takes the action that a prudent, diligent and reasonable person would take
      to cause that party to comply with its obligations or pay an amount equal
      to the loss and damage it suffers which is caused or contributed to by
      that default, unless the Finance Parties agree otherwise,

	 	 	 	 
	 		
      and to ensure that except with the Finance Parties’ prior
      written consent:

	 	 	 	 
	 		(iii) 	
      none of the Project Documents are assigned, novated,
      materially varied, rescinded, repudiated, cancelled, suspended or
      terminated, and no repudiation by any party is accepted by it;
  and

	 	 	 	 
	 		(iv) 	
      no Project Document or any other contract for the
      provision of mining or other services to the Project is entered into
      except in the ordinary course of business on arms-length commercial terms,
      or otherwise on terms acceptable to the Finance Parties and in every case
      with other parties who can demonstrate adequate experience and financial
      capacity to undertake successfully their respective obligations under that
      contract; and

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    (v) 
	
      it does not abandon, settle, compromise or discontinue or
      become nonsuited in respect of proceedings against any party in connection
  with a Project Document; and

	 	 	 	 
	 		
    (vi) 
	
      it does not waive any of its rights or release any person
      including a third party, from that person’s obligations in connection with
  a Project Document; and

	 	 	 	 
	 	(e) 	
      (no default) to ensure that the applicable Obligor
      is not in default under a material provision of a Law, Authorisation,
      instrument, undertaking or obligation affecting the Project or the Project
      Assets; and

	 	 	 	 
	 	(f) 	
      (operation of the Project) to ensure that the
      Project and the Project Assets are diligently operated and maintained and
      ore is diligently mined from the Project Tenements in accordance with the
      BCFM, Life of Mine Plan and the Project Documents, all applicable laws and
      Authorisations and in accordance with good business practice for a project
      of the nature of the Project; and

	 	 	 	 
	 	(g) 	
      (personnel) to retain sufficient managerial,
      financial, operational, technical mining expertise to the reasonable
      satisfaction of the Finance Parties to enable the applicable Obligor and
      the Project to be operated safely and efficiently; and

	 	 	 	 
	 	(h) 	
      (access) to take all reasonable steps to ensure
      that any representative designated by the Finance Parties is allowed at
      all reasonable times, on reasonable notice and at least once annually to
      have access to the Project Tenements and any other Collateral, and the
      books and records of the Project and the applicable Obligor, and to
      inspect or observe all or any facilities or operations of that Obligor,
      the Project or any other Collateral; and

	 	 	 	 
	 	(i) 	
      (care and maintenance) to ensure that the Project
      is not abandoned or placed on a “care and maintenance” basis without the
      prior consent of the Finance Parties; and

	 	 	 	 
	 	(j) 	
      (sales contracts) to ensure that all reasonable
      efforts are made to ensure that Product is delivered at the time and in
      the manner required by the Project Documents; and

	 	 	 	 
	 	(k) 	
      (transportation and storage of Product and
      stockpiling) to ensure that at all times:

	 	 	 	 
	 		
      (i) 
	
      all Product is adequately and safely stored, guarded and
      transported; and

	 	 	 	 
	 		
      (ii) 
	
      prior to delivery of Product at the Conversion Facility,
      all stockpiled ore derived from the Project is kept separate from any
      other ore and is identifiable as the ore of the Project; and

	 	 	 	 
	 	(l) 	
      (royalties) to ensure that no royalty, product
      payment or any other payment of interest having the same or similar effect
      is payable, is created or exists pursuant to the Project or in respect of
      the Product, other than royalties to a Government Agency or as disclosed
      to and approved by the Finance Parties; and

	 	 	 	 
	 	(m) 	
      (waste product) to ensure that the transportation,
      dealing, creation, storage or discharge to the Environment of any waste
      product in connection with the Project is in accordance with any material
      Environmental Approval for the Project, and otherwise not in violation of
      any Environmental Law, and all material Environmental
  Approvals necessary for those activities are obtained and are valid and
correct and there is no breach of those material Environmental Approvals; and

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	 	(n) 	
      (discharge of contamination) to ensure that the
      discharge of any Contamination to the Environment in connection with the
      Project is in accordance with any Environmental Approval for the Project,
      and otherwise not in violation of any Environmental Law, and all material
      Environmental Approvals necessary for such discharge are obtained and are
      valid and correct at the time of discharge and there is no breach of any
      of those material Environmental Approvals; and

	 	 	 	 
	 	(o) 	
      (no requirement for remedial work) to ensure that
      there is no Contamination of the land of any Project Tenement or adjacent
      areas which would entitle any relevant authority to issue any notice or
      direction requiring the owner or occupier of that land to undertake any
      remedial work or to require compensation other than in respect of any
      Standard Remediation and which is reasonably likely to have a Material
      Adverse Effect; and

	 	 	 	 
	 	(p) 	
      (compliance with Environmental Approvals and
      Environmental Laws) to ensure that the Project Assets and the
      occupation and use of any land for the Project complies with the material
      Environmental Approvals for the Project and all Environmental Laws;
    and

	 	 	 	 
	 		(i) 	
      all aspects of the occupation and use of land used by or
      for the Project comply with Environmental Laws; and

	 	 	 	 
	 		(ii) 	
      if there is any non-compliance with Environmental Laws
      the impact on the Environment is minimised; and

	 	 	 	 
	 		(iii) 	
      there is no material unlawful Contamination of any land
      used by or for the Project or any adjacent air, land or waters;
  and

	 	 	 	 
	 		(iv) 	
      environmental and other clean-up and rehabilitation is
      carried out in a proper and timely manner and in accordance with any
      applicable Environmental Laws and material Environmental Approvals;
    and

	 	 	 	 
	 	(q) 	
      (State Leases) to ensure that Strata will apply
      for the renewal of the lease term for each of the Specified State Leases;
      and

	 	 	 	 
	 	(r) 	
      (Air Quality Permit Conditions) ensure that the
      conditions to the Air Quality Permit required to be satisfied after the
      date of this document are satisfied; and

	 	 	 	 
	 	(s) 	
      (Additional Air Quality Permit) ensure that an
      additional permit to the Air Quality Permit is obtained by Strata from
      WDEQ after the 120 day start-up period in order to operate the Project;
      and

	 	 	 	 
	 	(t) 	
      (Aquifer Exemptions) ensure that any aquifer
      exemptions required under the Permit to Mine are obtained to the extent
      required by WDEQ; and

	 	 	 	 
	 	(u) 	
      (Filings – Grazing Leases) to ensure that notice
      is given to the State of Wyoming and the BLM, in their respective
      prescribed forms, in respect of the US Mortgage granted by Strata to the
      Security Trustee over the Grazing Leases, as soon as possible after the
      first Advance; and

	 	 	 	 
	 	(v) 	
      (Uranium Agreement) to ensure that Strata and PUL,
      respectively, enter into each respective Uranium Agreement substantially
      in the same form as the draft version of each Uranium Agreement provided to
each Finance Party prior to the date of this document. 

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	12.10 	
      Information undertakings in relation to the
      Project

	 	 	 	 
		
      Each Obligor agrees to give, or procure the delivery to,
      the Finance Parties the following:

	 	 	 	 
		(a) 	
      (Uranium Agreement) each Monthly Material Balance
      Notice as soon as possible after it has been received by Strata or PUL
      under their respective Uranium Agreement; and

	 	 	 	 
		(b) 	
      (Technical Reports) a copy of each technical or
      environmental report issued in respect of the Project as and when such
      report is issued to the relevant Obligor; and

	 	 	 	 
		(c) 	
      (expiry or surrender of tenements) to give the
      Finance Parties notice of the proposed expiry or surrender of any Project
      Tenement at least 45 days before the expiry date or proposed surrender
      date (as the case may be) or at least four weeks before lodgement of any
      surrender documentation with the Mines Department, together with
      particulars of the area which the applicable Obligor does not wish to take
      up or wishes to surrender (as the case may be); and

	 	 	 	 
		(d) 	
      (grant of tenement) to give the Finance Parties
      notice as soon as it becomes aware that a mining tenement from a mining
      tenement application has been granted, to enable the Security Trustee to
      register a mortgage or lodge a caveat over that tenement, as the case may
      be, under the terms of a Security; and

	 	 	 	 
		(e) 	
      (replacement of tenements) to give the Finance
      Parties notice as soon as it becomes aware that a mining tenement has been
      issued in replacement of or issued over any part of the same ground as any
      of the Project Tenements including upon a consolidation or subdivision of
      any of the Project Tenements to enable the Security Trustee to register a
      mortgage or lodge a caveat over that tenement, as the case may be, under
      the terms of a Security; and

	 	 	 	 
		(f) 	
      (notice of breach) to give promptly to the Finance
      Parties any notice received from any party of any breach (impending or
      otherwise) of any lease, sub-lease, licence or agreement related to the
      Project (including in relation to the Project Tenements); and

	 	 	 	 
		(g) 	
      (Invoices) in respect of the Borrower, Strata and
      PUL only, to:

	 	 	 	 
			(i) 	
      issue an Invoice to a Purchaser in respect of any sale of
      Product to a Purchaser; and

	 	 	 	 
			(ii) 	
      provide a copy to the Finance Parties of any Invoice
      issued to a Purchaser promptly after issuing the Invoice; and

	 	 	 	 
			(iii) 	
      provide a copy to the Finance Parties of each Invoice
      Receipt received within 3 Business Days of its receipt by the Borrower,
      Strata or PUL, as applicable; and

	 	 	 	 
			(iv) 	
      not amend the form of Invoice, including the standard
      settlement instructions attached to the Invoice, without the prior consent
      of the Finance Parties; and

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		(h) 	
      (other information) to give to the Finance Parties
      such other information as the Finance Parties or their solicitors may
      reasonably request concerning the Project.

	 	 	 
	12.11 	
      Technical review of the Project

	 	 	 
		
      Without limiting clause 16.4 (“Independent Consultant -
      Project issues”), each Obligor agrees to the Finance Parties having the
      right to do each of the following and will provide all reasonable
      assistance in enabling the Finance Parties to undertake the
    following:

	 	 	 
		(a) 	
      (site visit) the Finance Parties have the right,
      upon reasonable advance notice to the Borrower, to make a site visit to
      the Project by two nominated personnel of the Finance Parties at least
      once annually and as reasonably requested; and

	 	 	 
		(b) 	
      (Technical report review) the Finance Parties have
      the right to review all relevant technical reports in connection with the
      Project, including an updated ITE Report, and the Obligors will provide
      any information, including copies of those technical reports, to the
      Finance Parties following its request for them; and

	 	 	 
		(c) 	
      (other requirements) the Finance Parties have the
      right at any time to reasonably request any other information or
      requirements from the Obligors in connection with its technical review of
      the Project.

	 	 	 
	12.12 	
      Security perfection - policies and
  steps

Each Obligor agrees to promptly take
all reasonable steps which are prudent for its business in connection with the
perfection of any security interests it may have under the Law (including under
the PPSA) including doing anything reasonably requested by the Finance Parties
for that purpose. For example, it agrees to: 

	 	(a) 	
      create and implement appropriate policies and systems;
      and

	 	 	 
	 	(b) 	
      where appropriate, take reasonable steps to identify
      security interests in its favour and to perfect and protect them, with the
      highest priority reasonably available).

If a Finance Party ask, the Obligor
agrees to arrange at its expense an audit of those procedures. A Finance Party
may ask the Obligor to do this if it reasonably suspects that an Obligor is not
complying with this clause. 

	12.13 	
      Conversion Facility

	 	 	 
		(a) 	
      The Borrower acknowledges and agrees that it has entered
      into its Offtake Agreement with Offtaker 1 as the agent for Strata as its
      undisclosed principal.

	 	 	 
		(b) 	
      Strata acknowledges and agrees that from time to time the
      Borrower will direct Strata to notify and direct Converdyn to credit
      Product held at the Conversion Facility in Strata’s name to an account in
      the name of the Borrower (“PEL Direction”) in order to satisfy the
      Borrower’s obligations under its Offtake Agreement with 
      Offtaker 1.

	 	 	 
		(c) 	
      The Borrower acknowledges that at all times, including
      prior to and after a PEL Direction is issued, beneficial title to the
      Product the subject of a PEL Direction will remain with Strata.

	 	 	 
	12.14 	
      Undertakings are continuing obligations

	 	 	 
		
      Each undertaking in a Finance Document continues for so
      long as there is any Secured Money.

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	13
    	
      Accounts

	 	 	 	 
	13.1 	
      Proceeds Accounts

	 	 	 	 
		(a) 	
      The Obligors agree to ensure and procure:

	 	 	 	 
			(i) 	
      the establishment and maintenance of the UK Account by
      PUL with the UK Account Bank; and

	 	 	 	 
			(ii) 	
      the establishment and maintenance of the US Account by
      Strata with the US Account Bank.

	 	 	 	 
		(b) 	
      Deposits and withdrawals to and from the Proceeds
      Accounts may only be made in accordance with this document and as the
      Financier may otherwise from time to time agree.

	 	 	 	 
	13.2 	
      Deposits into Proceeds Accounts

	 	 	 	 
		(a) 	
      PUL and the Borrower undertake to pay or cause to be paid
      into the UK Account:

	 	 	 	 
			(i) 	
      all payments to be made to PUL or the Borrower under an
      Offtake Agreement under and in accordance with each Invoice;

	 	 	 	 
			(ii) 	
      the proceeds of all spot sales of Product under and in
      accordance with each Invoice; and

	 	 	 	 
			(iii) 	
      all interest and other earnings on the moneys standing to
      the credit of the UK Account.

	 	 	 	 
		(b) 	
      Strata undertakes to pay or cause to be paid into the US
      Account:

	 	 	 	 
			(i) 	
      all payments to be made to Strata under an Offtake
      Agreement under and in accordance with each Invoice;

	 	 	 	 
			(ii) 	
      the proceeds of all spot sales of Product under and in
      accordance with each Invoice; and

	 	 	 	 
			(iii) 	
      all interest and other earnings on the moneys standing to
      the credit of the US Account.

	 	 	 	 
		(c) 	
      PUL, the Borrower and Strata each undertakes to notify
      the Finance Parties of each deposit made into the UK Account and the US
      Account, respectively, as soon as possible and in any event no later than
      5 Business Days after payment is made into the relevant account.

	 	 	 	 
	13.3 	
      Withdrawals from Proceeds Account

	 	 	 	 
		
      Unless otherwise agreed by the Financier and subject to
      clause 13.5 (“Effect of default”), withdrawals from a Proceeds Account may
      only be made for the following purposes and in the following order of
      priority:

	 	 	 	 
		(a) 	
      firstly, to repay the Trade Finance Facility in
      accordance with clause 6.2(a)(iii); and

	 	 	 	 
		(b) 	
      secondly, to pay interest, fees and Costs under a Finance
      Document as and when they become due for payment; and

	 	 	 	 
		(c) 	
      thirdly, to reimburse the Finance Parties in accordance
      with clause 16.2 (“Indemnity”); and

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		(d) 	
      fourthly, to pay amounts payable under a Finance Document
      not referred to in paragraphs (a), (b) and (c) above; and

	 	 	 	 
		(e) 	
      fifthly, to meet Operating Costs and other operating and
      sustaining capital costs and development costs contemplated by the Life of
      Mine Plan for the Project (including Taxes, and royalties) and the cost of
      replacement and repair of assets which are to be funded from the proceeds
      of an insurance claim which have been credited to the Proceeds Accounts;
      and

	 	 	 	 
		(f) 	
      sixthly, to an account held by PUL as directed by the
      Borrower to the Financier.

	 	 	 	 
	13.4 	
      Notice of withdrawal

	 	 	 	 
		
      The Borrower agrees to notify the Finance Parties of each
      withdrawal to be made out of a Proceeds Account including details of
      proposed payment and that such payment will be in compliance with clause
      13.3 (“Withdrawals from Proceeds Account”).

	 	 	 	 
	13.5 	
      Effect of default

	 	 	 	 
		
      If an Event of Default is continuing, withdrawals from
      the Proceeds Accounts may only be made in accordance with clause 8
      (“Secured Accounts”) of the General Security Agreement.

	 	 	 	 
	14
    	
      Default

	 	 	 	 
	14.1 	
      Events of Default

	 	 	 	 
		
      Each of the following is an Event of Default:

	 	 	 	 
		(a) 	
      (non-compliance with obligations) an Obligor does
      not:

	 	 	 	 
			(i) 	
      pay when due and such default continues for a period of 3
      Business Days; or

	 	 	 	 
			(ii) 	
      comply with its obligations under clause 12.6 (“Financial
      undertakings”); or

	 	 	 	 
			(iii) 	
      comply with any other obligation under any Finance
      Document other than clause 12.9 (“Undertakings in relation to the
      Project”) and, if the non-compliance can be remedied, does not commence
      remedial action within 5 days of the non-compliance and has not remedied
      the non-compliance within 20 days of the Finance Parties notifying the
      Borrower of the non-compliance, or the Borrower or Obligor becoming aware
      of the failure to comply (whichever is the earlier); or

	 	 	 	 
			(iv) 	
      comply with any undertaking given to a Finance Party or
      its solicitors by or on behalf of the Obligor or other person in
      connection with (but not in) a Finance Document within the period
      specified in the undertaking or, where no period is specified and the
      undertaking is not an ongoing undertaking, within 10 Business Days after
      the date of the undertaking; or

	 	 	 	 
		(b) 	
      (misrepresentation) a representation, warranty or
      statement made, or taken to be made, by or on behalf of an Obligor or
      Group member in a Finance Document (or any document given by or on behalf
      of an Obligor in connection with a Finance Document) is incorrect or
      misleading when made or taken to be made and, if the circumstances giving
      rise to the misrepresentation can be remedied, the Obligor or Group member
      does not remedy them within 10 Business Days of the Finance Parties
notifying the Borrower, or the Obligor or Group member becoming aware of the
relevant circumstances (whichever is the earlier). This paragraph does not apply
to clause 11.1(c); or

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	 	(c) 	
      (cross default) any of the following occurs under
      the terms of any Finance Debt of an Obligor or any Group member for
      amounts totalling more than $500,000 (or its equivalent) in respect of the
      Borrower or any amount in respect of any Guarantor:

	 	 	 	 
	 		(i) 	
      it is not satisfied when due (or by the end of any
      original grace period); or

	 	 	 	 
	 		(ii) 	
      it is declared, is capable of being declared, or
      otherwise becomes, due before its stated maturity or expiry as a result of
      an event of default or other similar event (however described);
  or

	 	 	 	 
	 		(iii) 	
      any commitment for it is cancelled or suspended as a
      result of an event of default or other similar event (however described);
      or

	 	 	 	 
	 		(iv) 	
      an Obligor or any Group member is required to provide
      cash cover for it as a result of an event of default or other similar
      event (however described); or

	 	 	 	 
	 	(d) 	
      (insolvency and enforcement)

	 	 	 	 
	 		(i) 	
      an Obligor or any Group member becomes Insolvent;
    or

	 	 	 	 
	 		(ii) 	
      an Obligor or any Group member stops payment, ceases to
      carry on its business or a material part of it, or threatens to do either
      of those things, other than to carry out a reconstruction or amalgamation
      while solvent on terms approved by the Finance Parties; or

	 	 	 	 
	 		(iii) 	
      expropriation, attachment, sequestration, distress,
      commercial rent arrears recovery or execution, or any analogous process in
      any jurisdiction is levied or a judgment, order or Encumbrance is
      enforced, or becomes enforceable, against any asset of an Obligor or any
      Group member for amounts totalling more than US$250,000 (or its
      equivalent); or

	 	 	 	 
	 	(e) 	
      (voidable, repudiation or unlawful)

	 	 	 	 
	 		(i) 	
      a Finance Document or any transaction in connection with
      it is or becomes (or is claimed to be by anyone other than a Finance
      Party) wholly or partly void, voidable or unenforceable; or

	 	 	 	 
	 		(ii) 	
      an Obligor or any party to a Finance Document other than
      a Finance Party rescinds or repudiates a Finance Document (or an Obligor
      or another party attempts or takes any step to do so); or

	 	 	 	 
	 		(iii) 	
      it is or becomes unlawful for an Obligor to comply with
      any of its obligations under the Finance Documents; or

	 	 	 	 
	 	(f) 	
      (prior claims) a person asserts in writing that
      they have a better claim than the Security Trustee in respect of any
      property subject to an Encumbrance granted by an Obligor under the Finance
      Documents unless that claim:

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      (i) 
	
      is under a Permitted Encumbrance which is expressly
      permitted to rank ahead; or

	 	 	 	 
	 	 	(ii)  	is to the assets the subject of a Permitted
      Disposal; or  
	 	 	
      
	
	 	 	
      (iii) 
	is withdrawn or waived in writing within 30
      days; or  
	 	 	 	 
	 	(g) 	
      (reduction of capital) without the consent of the
      Finance Parties, an Obligor or any Group member takes any action to reduce
      its capital, buy back any of its shares or make any of its shares capable
      of being called up only in certain circumstances (such as by passing a
      resolution or calling a meeting to consider such a resolution)”);
  or

	 	 	 	 
	 	(h) 	
      (change of ownership) without the consent of the
      Finance Parties there is any change in the ownership of a Guarantor;
    or

	 	 	 	 
	 	(i) 	
      (Material Adverse Effect) an event occurs which
      has, or is likely to have (or a series of events occur which, together,
      have or are likely to have) a Material Adverse Effect; or

	 	 	 	 
	 	(j) 	
      (delisting) any shares of the Borrower are removed
      from the official list of ASX Limited or the NSYE, to the extent the
      Borrower has obtained dual listing on the NSYE, or suspended from listing
      for 15 consecutive trading days; or

	 	 	 	 
	 	(k) 	
      (deregistration) an Obligor is deregistered;
    or

	 	 	 	 
	 	(l) 	
      (Collateral) an Obligor ceases for any reason to
      be the legal owner of any part of its applicable Collateral, or a third
      party asserts a claim to an Obligor other than a claim which is frivolous
      or vexatious; or

	 	 	 	 
	 	(m)  	(loss of priority) an
      Encumbrance created by or purportedly created by a Security Document does
      not have or ceases to have the priority it is expressed to have under the
      relevant Finance Document or becomes ineffective to secure the payment of
      the money or compliance with the obligations which it purports to secure,
      otherwise than solely due to the fraud, negligence or misconduct of a
      Finance Party; or 
	 	 	 	 
	 	(n) 	
      (Constitution) the constitution or other
      constituent document of an Obligor is amended in manner which could have a
      Material Adverse Effect; or

	 	 	 	 
	 	(o) 	
      (breach of waiver condition) an Obligor breaches
      any condition applying to a waiver granted a Finance Party in connection
      with any Finance Documents; or

	 	 	 	 
	 	(p) 	
      (compulsory acquisition):

	 	 	 	 
	 		
      (i)
	
      all or a material part of an Obligor’s property is
      compulsorily acquired by any Government Agency; or

	 	 	 	 
	 		
      (ii) 
	
      an Obligor sells or divests itself of all or a material
      part of its property pursuant to a binding order from a Government Agency;
      or

	 	 	 	 
	 	(q) 	
      (abandonment)

	 	 	 	 
	 		(i)	
      all or any material part of the Project is abandoned or
      is placed on a care and maintenance basis;
or

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      (ii)  
	
      the budgeted processing of ore at a processing plant of a
      Project ceases for more than 21 days other than in accordance with routine
      maintenance requirements; or 

	 	 	 	 
		(r) 	
      (destruction of Collateral) all or any material
      part of the Collateral is destroyed, lost or damaged beyond repair or
      proves to be materially defective in circumstances not fully covered by
      insurance; or

	 	 	 	 
		(s) 	
      (Project Documents) termination or non-performance
      of a Project Document without the Finance Parties’ consent; or

	 	 	 	 
		(t) 	
      (Project shareholdings) an Obligor disposes of any
      part of its direct or indirect shareholding in the Project; or

	 	 	 	 
		(u) 	
      (renewal/cancellation of existing Permit) any
      current Permit is revoked or terminated (and without the consent of the
      Finance Parties, which may not be unreasonably withheld) unless it is
      replaced within 14 days by another Permit where that does not have a
      Material Adverse Effect; or

	 	 	 	 
		(v) 	
      (payment default under Offtake Agreement) an
      Offtake Party does not pay to or at the direction of the Borrower or the
      relevant Obligor amounts owing to the Borrower or the relevant Obligor
      under an Offtake Agreement (within 5 Business Days of when due) where such
      non- payment is for an amount greater than $1,500,000 and/or would result
      in a Material Adverse Effect; or

	 	 	 	 
		(w) 	
      (termination of Offtake Agreement) any Offtake
      Agreement ceases to be in full force and effect or is terminated, or any
      party takes steps to terminate, whether solely or partly as a consequence
      of a breach by an Obligor and the result of the termination does, or would
      result in a negative variation of 10% or more on CFADS over any 6 month
      period; or

	 	 	 	 
		(x) 	
      (interest in Project) the Obligors’ estate and
      interest in the Project Assets is less than 100%.

	 	 	 	 
	14.2 	
      Consequences of default

	 	 	 	 
		
      If an Event of Default is continuing, then the Financier
      may at any time:

	 	 	 	 
		(a) 	
      declare by notice to the Borrower that any of the Amount
      Owing by any Obligor under any Finance Document is either:

	 	 	 	 
			(i) 	
      payable on demand; or

	 	 	 	 
			(ii) 	
      immediately due for payment;

	 	 	 	 
		(b) 	
      declare by notice to the Borrower that the Financier’s
      obligations specified in the notice are terminated and the Commitments
      specified in the notice are cancelled.

The Financier may do any or all of
these things. The making of any declaration gives immediate effect to its
provisions. 

	14.3 	
      Investigation

	 	 	 
		
      If a Finance Party reasonably believes that an Event of
      Default or Potential Event of Default or Review Event is, or may be,
      continuing, the Finance Party may:

	 	 	 
		(a) 	
      appoint a person to investigate and report to the Finance
      Party on the affairs, financial condition and business of any Group
      member; and

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	 	(b) 	
      inspect the records of any Group member and inspect the
      assets of any Group member during normal business hours; and

	 	 	 
	 	(c) 	
      conduct all searches and enquiries that person considers
      appropriate in connection with any Group member and their
  assets.

Each Obligor agrees to co-operate with
the person and comply with every reasonable request they make (and ensure that
its officers, employees, agents and attorneys do the same). This includes giving
them access to all records and assets during normal business hours and giving
them any document or other information that they reasonably request. The
Borrower agrees to ensure that each Group member (and its officers, employees,
agents and attorneys) complies with this clause 14.3. 

The Borrower agrees, within 3 Business
Days of demand, to pay or reimburse the Finance Party its Costs in connection
with the investigation. 

	15
    	
      Review

	 	 	 
	15.1 	
      Review Event

	 	 	 
		
      Each of the following is a Review Event:

	 	 	 
		(a) 	
      (Change of Control) without the consent of the
      Finance Parties, a Change of Control occurs; or

	 	 	 
		(b) 	
      (CFADS) there is a departure from the 6 month
      forecast CFADS contained in the agreed BCFM which, in the opinion of the
      Finance Parties, may result in a Material Adverse Effect on the Group’s
      cash flows and/or the Borrower’s ability to meet its payment obligations
      in connection with Finance Debt as and when they fall due; or

	 	 	 
		(c) 	
      (Offtake Proportion) if from 31 December 2016, the
      proportion of offtake to forecast production is less than 75% for the
      rolling 12 month period from the relevant Calculation Date; or

	 	 	 
		(d) 	
      (NRC Licence) an adverse finding, as determined by
      the Finance Parties acting reasonably, is made against Strata in
      connection with any appeal or other proceedings made by a third party in
      connection with the NRC Licence.

	 	 	 
	15.2 	
      Consequences of review

If a Review Event is continuing, the
Financier may give notice to the Borrower following which the Borrower and the
Financier agree to negotiate in good faith amendments to the Finance Documents,
a refinancing or restructuring plan or any other matters which they determine
(in good faith) are appropriate as a result of the Review Event.

If the Borrower and the Financier
cannot reach agreement on any amendments, refinancing or restructuring plan or
other relevant matters within 30 days after the Financier gives notice, the
Financier may declare at any time afterwards by notice to the Borrower
(“Repayment Notice”) that: 

	 	(a) 	
      all or part of the Amount Owing by the Borrower under any
      Finance Document is:

	 	 	 	 
	 		(i) 	
      to be restructured within 30 days; or

	 	 	 	 
	 		(ii) 	
      payable within 90 days,

	 	 	 	 
	 		
      of the date of the Repayment
Notice;

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	 	(b) 	
      the Financier’s obligations specified in the notice are
      terminated and the Commitments are cancelled.

The Financier may make either or both
of these declarations. The making of either of them gives immediate effect to
its provisions. 

	16
    	
      Costs and indemnities

	 	 	 
	16.1 	
      Costs

	 	 	 
		
      The Borrower agrees, within 3 Business Days of demand, to
      pay or reimburse:

	 	 	 
		(a) 	
      (transaction costs) a Finance Party its reasonable
      Costs in connection with the preparation, negotiation, execution and
      registration of any Finance Document and giving and considering consents,
      waivers, variations, discharges and releases and producing documents and
      providing information in connection with any Finance Document and all
      reasonable Costs incurred in connection with agreed visits to the Project,
      with any expenditure greater than A$5,000 requiring the prior written
      approval of the Borrower (not to be unreasonably withheld); and

	 	 	 
		(b) 	
      (other costs) a Finance Party its Costs of
      exercising, enforcing or preserving rights, powers or remedies (or
      considering doing so) in connection with any Finance Document, or doing
      anything in connection with any enquiry by an authority involving an
      Obligor or any of its Related Entities, its assets, the Finance
      Documents or anything in connection with them; and

	 	 	 
		(c) 	
      (Taxes) stamp duty, registration and similar Taxes
      or fees paid or payable, in connection with any Finance Document or a
      payment or receipt or any other transaction contemplated by any Finance
      Document (including any fines and penalties in connection with any of
      these amounts). However, the Borrower need not pay or reimburse a fine or
      penalty to the extent that it has given the Finance Party all necessary
      documents and sufficient cleared funds in sufficient time to enable the
      Finance Party to pay those Taxes or fees by the due date.

	 	 	 
	16.2 	
      Indemnity

The Borrower agrees, within 3 Business
Days of demand, to indemnify the Finance Parties against, and to reimburse and
compensate each of them for, any liability or loss arising from, and any Costs
incurred in connection with: 

	 	(a) 	
      (no financial accommodation) financial
      accommodation requested under a Finance Document not being provided in
      accordance with the request for any reason except default of the Finance
      Party; or

	 	 	 
	 	(b) 	
      (unscheduled payments) financial accommodation or
      any other amount payable under the Finance Documents being repaid,
      discharged or made payable other than on its stated maturity or expiry or
      on a due date applicable to it or as otherwise permitted under the
      relevant Finance Documents; or

	 	 	 
	 	(c) 	
      (failure to prepay) financial accommodation not
      being prepaid in accordance with a notice of prepayment given by the
      Borrower; or

	 	 	 
	 	(d) 	
      (Finance Party acting on instructions) the Finance
      Party acting in connection with a Finance Document in good faith on fax,
      telephone, email or written instructions purporting to originate from the
      offices of an Obligor or to be given by an Authorised Officer of an
      Obligor; or

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	 	(e) 	
      (default) an Event of Default, or Review Event, an
      Obligor not complying with any of its obligations under any Finance
      Document or a representation, warranty or statement made, or taken to be
      made, by or on behalf of an Obligor or Group member in a Finance Document
      being incorrect or misleading when made or taken to be made; or

	 	 	 
	 	(f) 	
      (exercise of rights) the Finance Party exercising,
      enforcing or preserving rights, powers or remedies in connection with a
      Finance Document (or considering doing so); or

	 	 	 
	 	(g) 	
      (Collateral) the Collateral (including any
      indemnity a Finance Party gives a Controller or administrator of an
      Obligor).

The Borrower agrees to pay an amount
equal to any liability or loss and any Costs of the kind referred to in this
indemnity incurred by the Finance Party’s officers, employees, agents or
contractors or any attorney appointed by an Obligor under any Finance Document,
and any lessee, purchaser or occupier of Collateral. 

	16.3 	
      Break costs

The indemnity in clause 16.2
(“Indemnity”) covers any loss, liability or Costs a Finance Party incurs (as
calculated by any method the Finance Party reasonably chooses) because it
unwinds, terminates, changes or reverses arrangements (including by entering
into new arrangements) it has made with others to fund (or to maintain its
funding of) financial accommodation or other amounts under the Finance Documents
or hedge, fix or limit its effective cost of funding (or maintaining its funding
of) financial accommodation or other amounts under the Finance Documents. 

	16.4 	
      Independent Consultant - Project
  issues

The Finance Parties may have any aspect
of the Project including the ore reserves, mine design and scheduling, ore
treatment, environmental impact, infrastructure and capital or operating costs
reviewed, at the Borrower’s cost, by the Independent Consultant if: 

	 	(a) 	
      there has been an event or circumstance that would or
      could result in a Material Adverse Effect as reasonably determined by the
      Finance Parties after taking into consideration any information provided
      by the Borrower in respect of that event or circumstance; or

	 	 	 
	 	(b) 	
      there has been the occurrence of a Review Event,
      Potential Event of Default or an Event of
Default.

	17
    	
      Interest on overdue amounts

	 	 
	17.1 	
      Obligation to pay

If an Obligor does not pay any amount
under a Finance Document on the due date for payment, the Obligor agrees to pay
interest on that amount at the Default Rate.

The interest accrues daily from (and
including) the due date to (but excluding) the date of actual payment (both
before and after judgment as an independent obligation) and is calculated on
actual days elapsed using a year of 360 days. 

The Obligor agrees to pay interest
under this clause on demand from the Finance Party. 

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	17.2 	
      Compounding

Interest accrued but which has not been
paid under clause 17.1 (“Obligation to pay”) is added to the overdue amount at
the end of each applicable Interest Period. Interest is payable on the increased
overdue amount at the Default Rate in the manner set out in clause 17.1
(“Obligation to pay”). 

Part 6 Guarantee

	18
    	
      Guarantee and indemnity

	 	 
	18.1 	
      Obligations under Guarantee are joint and
      individual

The obligations of the Guarantors under
this clause 18 are joint and individual. 

	18.2 	
      Consideration

Each Guarantor acknowledges that the
Finance Parties are acting in reliance on the Guarantors incurring obligations
and giving rights under this Guarantee. 

	18.3 	
      Guarantee

Each Guarantor unconditionally and
irrevocably guarantees payment and performance to the Finance Parties of the
Secured Money. If an Obligor does not pay the Secured Money on the due date and
in accordance with the Finance Documents, then each Guarantor agrees to pay the
Secured Money on demand from a Finance Party. A demand may be made at any time
and from time to time and whether or not a Finance Party has made demand on
another Obligor. 

	18.4 	
      Indemnity

Each Guarantor indemnifies the Finance
Parties against, and agrees to reimburse and compensate the Finance Parties for,
any liability or loss arising, and any Costs they incur: 

	 	(a) 	
      if an Obligor does not, or is unable to, pay the Secured
      Money in accordance with the Finance Documents; or

	 	 	 
	 	(b) 	
      if an obligation the Borrower would otherwise have to pay
      the Secured Money is found to be void, voidable or unenforceable;
  or

	 	 	 
	 	(c) 	
      if an obligation a Guarantor would otherwise have under
      clause 18.3 (“Guarantee”) is found to be void, voidable or unenforceable;
      or

	 	 	 
	 	(d) 	
      if a Finance Party is obliged, or agrees, to pay an
      amount to a trustee in bankruptcy or liquidator or similar official (of an
      Insolvent person) in connection with a payment by an Obligor. (For
      example, the Finance Party may have to, or may agree to, pay interest on
      the amount); or

	 	 	 
	 	(e) 	
      if a Guarantor defaults under this Guarantee;
or

	 	 	 
	 	(f) 	
      in connection with any person exercising, or not
      exercising, rights under this Guarantee.

Each Guarantor agrees to pay amounts
due under this indemnity on demand from the Finance Party. 

	18.5 	
      Nature of guarantee

Each of the guarantee in clause 18.3
(“Guarantee”) and the indemnity in clause 18.4 (“Indemnity”) is a continuing
obligation despite any intervening payment, settlement or other thing and
extends to all of the Secured Money. 

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	18.6 	
      Variations and
replacements

Each Guarantor acknowledges that the
Finance Documents may be varied, novated, supplemented, extended, replaced or
restated from time to time. 

Each Guarantor confirms that the
Secured Money includes any amount payable under any Finance Document as varied,
novated, supplemented, extended, replaced or restated. The Guarantor confirms
that this applies regardless of: 

	 	(a) 	
      how the Finance Document is varied, novated,
      supplemented, extended, replaced or restated; and

	 	 	 
	 	(b) 	
      the reasons for the variation, novation, supplement,
      extension, replacement or restatement; and

	 	 	 
	 	(c) 	
      whether the Secured Money decreases or increases or the
      Finance Document is otherwise more onerous as a result of the variation,
      novation, supplement, extension, replacement or
  restatement.

This clause does not limit clause 18.8
(“Rights of the Finance Parties are protected”). 

	18.7 	
      Reinstatement of rights

Under law relating to Insolvency, a
person may claim that a transaction (including a payment) in connection with
this Guarantee, any Security Document or the Secured Money is void or voidable.
If a claim is made and upheld, conceded or compromised, then: 

	 	(a) 	
      the Finance Parties are immediately entitled as against
      each Guarantor to the rights in respect of the Secured Money to which they
      were entitled immediately before the transaction; and

	 	 	 
	 	(b) 	
      on request from the Finance Parties, each Guarantor
      agrees to do anything (including signing any document) to restore to the
      Security Trustee any Encumbrance (including this Guarantee and any
      Security Document) held by it from the Guarantors immediately before the
      transaction.

Each Guarantor’s obligations under this
clause are continuing obligations, independent of the Guarantor’s other
obligations under this Guarantee and continue after this Guarantee ends. 

	18.8 	
      Rights of the Finance Parties are
  protected

Each Guarantor agrees that rights given
to the Finance Parties under this Guarantee, and each Guarantor’s liabilities
under it, are not affected by any act or omission or any other thing which might
otherwise affect them under law or otherwise. For example, those rights and
liabilities are not affected by: 

	 	(a) 	
      any act or omission:

	 	 	 	 
	 		(i) 	
      varying, replacing, supplementing, extending or restating
      in any way and for any reason any agreement or arrangement under which the
      Secured Money is expressed to be owing (such as by adding, replacing or
      changing the purpose of a Facility, increasing a commitment or facility
      limit or extending the term of a Facility including in connection with a
      restructuring or refinancing of the Secured Money);

	 	 	 	 
	 		(ii) 	
      releasing an Obligor or giving any Obligor a concession
      (such as more time to pay);

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      (iii) 
	
      releasing any person who gives a guarantee or indemnity
      in connection with any of an Obligor’s obligations;

	 	 	 	 
		 	(iv)	
       releasing, losing the benefit of, or not obtaining
      or perfecting any Encumbrance or negotiable instrument;

	 	 	 	 
		 	(v)	
      by which the obligations of any person who guarantees or
      provides an Encumbrance securing any Obligor’s obligations (including
      under this Guarantee) may not be enforceable;

	 	 	 	 
		 	(vi) 	
      by which any person who was intended to guarantee any
      Obligor’s obligations does not do so, or does not do so
  effectively;

	 	 	 	 
		 	(vii) 	
      by which a person who is a co-surety or co-indemnifier
      for payment of the Secured Money is discharged under an agreement or by
      operation of law;

	 	 	 	 
		 	(viii) 	
      by which any Encumbrance which could be registered is not
      registered;

	 	 	 	 
		(b) 	
      a person dealing in any way with an Encumbrance,
      guarantee, indemnity, judgment or negotiable instrument;

	 	 	 	 
		(c) 	
      the death, mental or physical disability or Insolvency of
      any person including an Obligor;

	 	 	 	 
		(d) 	
      changes in the membership, name or business of any
      person;

	 	 	 	 
		(e) 	
      an Obligor opening an account with them;

	 	 	 	 
		(f) 	
      acquiescence or delay by a Finance Party or any other
      person; or

	 	 	 	 
		(g) 	
      any assignment or novation of rights in connection with
      the Secured Money.

	 	 	 	 
	18.9 	
      No merger

This Guarantee does not merge with or
adversely affect, and is not adversely affected by, any of the following:

	 	(a) 	
      any other guarantee, indemnity, or Encumbrance, or other
      right, power or remedy to which the Finance Party is entitled;
or

	 	 	 
	 	(b) 	
      a judgment which the Finance Party obtains against the
      Guarantors, the Borrower or any other person in connection with the
      Secured Money.

The Finance Party may still exercise
their rights under this Guarantee as well as under the judgment, guarantee,
indemnity, Encumbrance or right, power or remedy. 

	18.10 	
      Extent of Guarantor’s
obligations

If more than one person is named as
“Guarantor”, each of them is liable for all the obligations under this Guarantee
both individually and jointly with any one or more other persons named as
“Guarantor”. 

	18.11 	
      Guarantor’s rights are
suspended

As long as there is any Secured Money
(or any other amounts secured by any Encumbrance that secures amounts including
the Secured Money), a Guarantor may not, without the Finance Parties’ consent:

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	 	(a) 	
      reduce its liability under this Guarantee by claiming
      that it or the Borrower, another Obligor or any other person has a right
      of set-off or counterclaim against the Finance Parties; or

	 	 	 	 
	 	(b) 	
      claim, or exercise any right to claim, to be entitled
      (whether by way of subrogation or otherwise) to the benefit of another
      guarantee, indemnity (or another assurance against loss similar to a
      guarantee or indemnity) or Encumbrance:

	 	 	 	 
	 		(i) 	
      in connection with the Finance Documents including the
      Secured Money or any other amount payable under this Guarantee (for
      example, the Guarantor may not try to enforce or require the enforcement
      of any Encumbrance the Security Trustee has taken that secures amounts
      including the Secured Money); or

	 	 	 	 
	 		(ii) 	
      in favour of a person other than a Finance Party in
      connection with any obligations of, or any other amounts payable, by any
      Obligor to, or for the account of, that other person; or

	 	 	 	 
	 	(c) 	
      claim an amount from the Borrower, or another guarantor
      of the Secured Money (including a person who has signed this document as a
      “Guarantor”), under a right of indemnity or contribution; or

	 	 	 	 
	 	(d) 	
      claim an amount in the Insolvency of the Borrower or of
      another guarantor of the Secured Money (including a person who has signed
      this document as a “Guarantor”).

If the Financier asks, each Guarantor
agrees to notify any relevant person of the terms of this clause and other parts
of this Guarantee that may be relevant. Each Guarantor also authorises the
Financier to do so at any time in its discretion and without first asking the
Guarantor to do it. This applies despite anything else in this Guarantee. 

This clause continues after this
Guarantee ends. 

	18.12 	
      Guarantor’s right of proof
  limited

Each Guarantor agrees not to exercise a
right of proof after an event occurs relating to the Insolvency of the Borrower
or another guarantor of the Secured Money (including a person who has signed
this document as a “Guarantor”) independently of an attorney appointed under
clause 18.15 (“Right to prove”). 

	18.13 	
      No set-off against
assignees

If a Finance Party assigns or otherwise
deals with its rights under this Guarantee, a Guarantor may not claim against
any assignee (or any other person who has an interest in this Guarantee) any
right of set-off, counterclaim or other right the Guarantor has against the
Finance Party. 

	18.14 	
      Suspense account

a Finance Party may place in a suspense
account any payment they receive from a Guarantor for as long as they think
prudent and need not apply it towards satisfying the Secured Money. 

	18.15 	
      Right to prove

Each Guarantor irrevocably appoints
each Finance Party and each of their Authorised Officers individually as its
attorney and agrees to formally approve all action taken by an attorney under
this clause. 

Each attorney may: 

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	 	(a) 	
      do anything which the Guarantor may lawfully do to
      exercise its right of proof after an event relating to Insolvency occurs
      in respect of the Borrower or any other guarantor of the Borrower’s
      obligations in connection with a matter not connected with the Guarantor’s
      rights as “Guarantor” under this document. (These things may be done in
      the Guarantor’s name or the attorney’s name and they include signing and
      delivering documents, taking part in legal proceedings and receiving any
      dividend arising out of the right of proof); and

	 	 	 
	 	(b) 	
      delegate its powers (including this power) and may revoke
      a delegation; and

	 	 	 
	 	(c) 	
      exercise its powers even if this involves a conflict of
      duty and even if it has a personal interest in doing
so.

The attorney need not account to a
Guarantor for any dividend received on exercising the right of proof under
clause 18.15(a) except to the extent that any dividend remains after the Finance
Parties have received all of the Secured Money and all other amounts payable
under this Guarantee. 

	18.16 	
      Ratification

Each Obligor which holds shares in any
other Obligor ratifies and directs the execution by that other Obligor of each
Security Document to which that other Obligor is a party. Each Obligor does this
in its capacity as shareholder. 

	19
    	
      Compulsory release of FATCA FFIs and US Tax
      Obligors

If so directed by a Finance Party, the
Borrower agrees to ensure that any Obligor which is a FATCA FFI or a US Tax
Obligor ceases to be a Guarantor before the earliest FATCA Application Date
relating to any payment by that Obligor (or any payment by a Finance Party which
relates to a payment by that Obligor). 

	Part 7 General 
	  	  
	20 	   Dealing with interests
  
	 	 
	20.1 	   No dealing by Obligor
  

An Obligor may not assign or otherwise
deal with its rights under this document or allow any interest in it to arise or
be varied, in each case, without the Finance Parties’ consent. 

	20.2 	
      Dealings by Finance
Parties

The Finance Parties may assign or
otherwise deal with its rights under this document (including by assignment or
participation) without the consent of any person. 

	20.3 	
      No additional payments by
  Obligors

Despite anything else in the Finance
Documents, no Obligor is required to pay any additional amounts (including any
Costs, Taxes, fees or charges or any amounts payable under clauses 9
(“Withholding tax”) or 10 (“Increased costs and illegality”)) which arise as a
result of a dealing by a Finance Party under this clause 20. 

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	21
    	
      Notices and other communications

	 	 
	21.1 	
      Form - all communications

Unless expressly stated otherwise in
this document, all notices, certificates, consents, approvals, waivers and other
communications in connection with this document must be in writing, signed by an
Authorised Officer of the sender and marked for the attention of the person
identified to in the Details or Schedule 1 (“Guarantors”) or, if the recipient
has notified otherwise, then marked for attention in the way last notified. 

	21.2 	
      Form - communications sent by
  email

Communications sent by email need not
be marked for attention in the way stated in clause 21.1 (“Form - all
communications”). However, the email must state the first and last name of the
sender. 

Communications sent by email are taken
to be signed by the named sender.

	21.3 	
      Delivery

	 	 	 
		
      Communications must be:

	 	 	 
		(a) 	
      left at the address set out in the Details or Schedule 1
      (“Guarantors”); or

	 	 	 
		(b) 	
      sent by prepaid ordinary post (airmail, if appropriate)
      to the address set out in the Details or Schedule 1 (“Guarantors”);
    or

	 	 	 
		(c) 	
      sent by email to the address set out in the Details or
      Schedule 1 (“Guarantors”).

However, if the intended recipient has
notified a changed address or fax number, then communications must be to that
address or number. 

	21.4 	
      When effective

Communications take effect from the
time they are received or taken to be received under clause 21.5 (“When taken to
be received”) (whichever happens first) unless a later time is specified. 

	21.5 	
      When taken to be received

	 	 	 	 
		
      Communications are taken to be received:

	 	 	 	 
		(a) 	
      if sent by post, 3 days after posting (or seven days
      after posting if sent from one country to another); or

	 	 	 	 
		(b) 	
      if sent by email:

	 	 	 	 
			(i) 	
      when the sender receives an automated message confirming
      delivery; or

	 	 	 	 
			(ii) 	
      4 hours after the time sent (as recorded on the device
      from which the sender sent the email) unless the sender receives an
      automated message that the email has not been delivered,

	 	 	 	 
				
      whichever happens first.

	 	 	 	 
	21.6 	
      Receipt outside business
hours

Despite clauses 21.4 (“When effective”)
and 21.5 (“When taken to be received”), if communications are received or taken
to be received under clause 21.5 (“When taken to be received”) after 5.00 pm in
the place of receipt or on a non-Business Day, they are taken to be
received at 9.00 am on the next Business Day and take effect from that time
unless a later time is specified. 

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	21.7 	
      Reliance on communications

Any communication sent in accordance
with this clause 21 can be relied on by the recipient if the recipient
reasonably believes the communication is genuine and if it bears what appears to
be the signature (original or facsimile) of an Authorised Officer of the sender
(without the need for further enquiry or confirmation). Each party must take
reasonable care to ensure that no forged, false or unauthorised communications
are sent to another party. 

	21.8 	
      Borrower and Obligors

Each Obligor irrevocably authorises the
Borrower to give and receive communications on its behalf. Each other party may
rely on any such communication as if it was made by an Obligor, and the Obligor
is bound by it. 

	22
    	
      General

	 	 
	22.1 	
      Application to Finance
Documents

If anything in this clause 22 is
inconsistent with a provision in another Finance Document, then the provision in
the other Finance Document prevails for the purposes of that Finance Document.

	22.2 	
      Prompt performance

If a Finance Document specifies when a
party agrees to perform an obligation, the party agrees to perform it by the
time specified. Each party agrees to perform all of its other obligations
promptly. Time is of the essence in any Finance Document in respect of an
obligation of an Obligor to pay money. 

	22.3 	
      Certificates

A Finance Party may give an Obligor a
certificate about an amount payable or other matter in connection with a Finance
Document. The certificate is sufficient evidence of the amount or matter, unless
it is proved to be incorrect. 

	22.4 	
      Set-off

If an Event of Default is continuing, a
Finance Party may set off any amount owing by the Finance Party to an Obligor
(whether or not due for payment) against any amount due for payment by the
Obligor to the Finance Party in connection with a Finance Document. 

The Finance Parties may do anything
necessary to effect any set-off under this clause (including varying the date
for payment of any amount owing by the Finance Party to the Obligor and making
currency exchanges). This clause applies despite any other agreement between the
Obligor and the Finance Party.

A security interest created by this
document over any account with the Finance Party into which money is credited is
subject to the Finance Party’s rights under this clause. This clause also
applies despite any other agreement between the Obligor and the Finance Party.

	22.5 	
      Discretion in exercising
rights

The Finance Parties may exercise a
right, power or remedy or give or refuse its consent, approval or a waiver in
connection with a Finance Document in its absolute discretion (including by
imposing conditions). 

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	22.6 	
      Partial exercising of
rights

If a Finance Party does not exercise a
right, power or remedy in connection with a Finance Document fully or at a given
time, the Finance Party may still exercise it later. 

	22.7 	
      Conditions of consents, approvals or
  waivers

Each Obligor agrees to comply with all
conditions in any consent, approval or waiver given in connection with a Finance
Document. 

	22.8 	
      No liability for loss

The Finance Parties are not liable for
any loss, liability or Costs caused by the exercise or attempted exercise of,
failure to exercise, or delay in exercising, a right, power or remedy in
connection with a Finance Document. 

	22.9 	
      Conflict of interest

The Finance Parties may exercise its
rights, powers and remedies in connection with a Finance Document even if this
involves a conflict of interest or the Finance Parties have a personal interest
in their exercise. 

	22.10 	
      Remedies cumulative

The Finance Parties’ rights, powers and
remedies in connection with a Finance Document are in addition to other rights,
powers and remedies given by law independently of the Finance Document. 

	22.11 	
      Indemnities and reimbursement
  obligations

Any indemnity, reimbursement or similar
obligation in a Finance Document given by an Obligor and an obligation to make a
payment under 9 (“Withholding tax”) or 10 (“Increased costs and illegality”):

	 	(a) 	
      is a continuing obligation despite any intervening
      payment, settlement or other thing; and

	 	 	 
	 	(b) 	
      is independent of the Obligor’s other obligations under
      the Finance Document; and

	 	 	 
	 	(c) 	
      survives the termination or discharge of the Finance
      Document, the repayment of financial accommodation and the cancellation or
      expiry of the Commitments.

It is not necessary for a Finance Party
to incur expense or make payment before enforcing a right of indemnity in
connection with a Finance Document. 

	22.12 	
      Rights and obligations are
  unaffected

The Finance Parties’ rights, powers and
remedies and an Obligor’s obligations in connection with a Finance Document are
not affected by anything which might otherwise affect them at law.

	22.13 	
      Inconsistent law

To the extent permitted by law, each
Finance Document prevails to the extent it is inconsistent with any law. 

	22.14 	
      Supervening law

Any present or future law which
operates to vary an Obligor’s obligations in connection with a Finance Document
with the result that a Finance Party’s rights, powers or remedies are adversely
affected (including by way of delay or postponement) is excluded except to
the extent that its exclusion is prohibited or rendered ineffective by law. 

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	22.15 	
      Variation and waiver

A provision of a Finance Document, or
right created under it, may not be varied or waived except in writing signed by
or on behalf of the party or parties to be bound. 

	22.16 	
      Confidentiality

Each party agrees not to disclose
information provided by any other party that is not publicly available
(including the existence of or contents of any Finance Document) except: 

	 	(a) 	
      to any person in connection with an exercise of rights or
      a dealing with rights or obligations under a Finance Document in
      connection with preparatory steps such as negotiating with any potential
      transferee or sub-participant or any other person who is considering
      contracting with a Finance Party in connection with a Finance Document;
      or

	 	 	 
	 	(b) 	
      to a person considering entering into (or who enters
      into) a credit default swap with a Finance Party involving credit events
      relating to an Obligor or any of its Related Entities; or

	 	 	 
	 	(c) 	
      to officers, employees, agents, contractors, legal and
      other advisers and auditors of an Obligor or a Finance Party; or

	 	 	 
	 	(d) 	
      to any Obligor or Finance Party or any Related Entity of
      any of them, provided the recipient agrees to act consistently with this
      clause 22.16; or

	 	 	 
	 	(e) 	
      with the consent of the party who provided the
      information (such consent not to be unreasonably withheld); or

	 	 	 
	 	(f) 	
      any disclosure the disclosing party reasonably believes
      is required by any law, stock exchange or rating agency (except this
      paragraph does not permit a Finance Party to disclose any information
      under section 275(4) of the PPSA unless section 275(7) of the PPSA
      applies).

Each party consents to disclosures made
in accordance with this clause 22.16. 

	22.17 	
      Further steps

Each Obligor agrees to do anything a
Finance Party reasonably asks (such as obtaining consents, signing and producing
documents and getting documents completed and signed) to:

	 	(a) 	
      bind an Obligor and any other person intended to be bound
      under the Finance Documents; or

	 	 	 
	 	(b) 	
      enable the Security Trustee to register any power of
      attorney in this document or any similar power; or

	 	 	 
	 	(c) 	
      show whether an Obligor is complying with the Finance
      Documents; or

	 	 	 
	 	(d) 	
      if the Security Trustee determines that a Finance
      Document (or a transaction in connection with it) is or contains a
      security interest at Law (including for the purposes of the PPSA), do
      anything the Security Trustee reasonably asks
to:

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      (i)  
	ensure that the security interest is enforceable,
      perfected (including, where possible, by control in addition to
      registration) and otherwise effective; or
	 	 	 	 
			(ii) 	
      enable the Security Trustee to apply for any
      registration, or give any notification, in connection with the security
      interest so that the security interest has the priority required by the
      Security Trustee (including a registration for what whatever collateral
      class the Security Trustee thinks fit and the Obligor consents to any such
      registration or notification and agrees not to make an amendment demand);
      or

	 	 	 	 
			(iii) 	
      enable the Security Trustee to exercise rights in
      connection with the security interest.

	 	 	 	 
	22.18 	
      Exclusion of PPSA provisions

	 	 	 	 
		
      To the extent the law permits:

	 	 	 	 
		(a) 	
      for the purposes of sections 115(1) and 115(7) of the
      PPSA:

	 	 	 	 
			(i) 	
      the Security Trustee need not comply with sections 95,
      118, 121(4), 125, 130, 132(3)(d) or 132(4); and

	 	 	 	 
			(ii) 	
      sections 142 and 143 are excluded;

	 	 	 	 
		(b) 	
      for the purposes of section 115(7) of the PPSA, the
      Security Trustee need not comply with sections 132 and 137(3);

	 	 	 	 
		(c) 	
      if the PPSA is amended after the date of this document to
      permit a grantor and a secured party to agree to not comply with or to
      exclude other provisions of the PPSA, the Security Trustee may notify the
      grantor of a security interest that any of these provisions is excluded,
      or that the Security Trustee need not comply with any of these provisions
      as notified to the grantor by the Security Trustee; and

	 	 	 	 
		(d) 	
      the grantor of a security interest agrees not to exercise
      its rights to make any request of the Security Trustee under section 275
      of the PPSA, or to authorise the disclosure of any information under that
      section or to waive any duty of confidence that would otherwise permit
      non-disclosure under that section.

	 	 	 	 
	22.19 	
      Exercise of rights by a Finance
  Party

If a Finance Party exercises a right,
power or remedy in connection with a Finance Document, that exercise is taken
not to be an exercise of a right, power or remedy under the PPSA unless the
Finance Party states otherwise at the time of exercise. However, this clause
does not apply to a right, power or remedy which can only be exercised under the
PPSA. 

	22.20 	
      No notice required unless mandatory

	 	 	 	 
		
      To the extent the law permits, a grantor of a security
      interest waives:

	 	 	 	 
		(a) 	
      its rights to receive any notice that is required
    by:

	 	 	 	 
			(i) 	
      any provision of the PPSA (including a notice of a
      verification statement); or

	 	 	 	 
			(ii) 	
      any other law before a secured party or Receiver
      exercises a right, power or remedy; and

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	 	(b) 	
      any time period that must otherwise lapse under any other
      law before a secured party or Receiver exercises a right, power or
      remedy.

If the law which requires a period of
notice or a lapse of time cannot be excluded, but the law provides that the
period of notice or lapse of time may be agreed, that period or lapse is one day
or the minimum period the law allows to be agreed (whichever is the longer).

However, nothing in this clause
prohibits the Security Trustee from giving a notice under the PPSA or any other
law. 

	22.21 	
      Code of Banking Practice

The parties agree that the Code of
Banking Practice does not apply to the Finance Documents and the transactions in
connection with them. 

	22.22 	
      Counterparts

Each Finance Document may consist of a
number of copies, each signed by one or more parties to the Finance Document. If
so, the signed copies are treated as making up the one document. 

	23
    	
      Governing law and jurisdiction

	 	 
	23.1 	
      Governing law and
jurisdiction

The law in force in Western Australia
governs each Finance Document and, to the extent permitted by law, all matters
in connection with each Finance Document including any non-contractual matters
except to the extent that the validity, creation or perfection of a mortgage
lien or security interest under this or any other Finance Document, or remedies
hereunder or thereunder, in respect of any particular Collateral are mandatorily
governed by the laws of a jurisdiction other than Western Australia. The parties
submit to the non-exclusive jurisdiction of the courts of that place. To the
extent permitted by law, the law of the Commonwealth as it applies in that
jurisdiction governs a security interest provided for under the Finance
Documents.

	23.2 	
      Serving documents

Without preventing any other method of
service, any document in an action in connection with any Finance Document may
be served on a party by being delivered to or left at that party’s address for
service of notices under clause 21.3 (“Delivery”) or with its process agent.

	23.3 	
      Appointment of Process Agent

	 	 	 	 
		(a) 	
      Without prejudice to any mode of service allowed under
      any relevant law, each Obligor (other than an Obligor incorporated,
      formed, or registered as a foreign company, in Australia):

	 	 	 	 
			(i) 	
      irrevocably appoints the Borrower as its process agent to
      receive any document in an action in connection with any Finance Document;
      and

	 	 	 	 
			(ii) 	
      agrees that failure by a process agent to notify the
      relevant Obligor of any document in an action in connection with any
      Finance Document will not invalidate the action concerned.

	 	 	 	 
		(b) 	
      If for any reason the Borrower ceases to be able to act
      as process agent, each relevant Obligor must appoint another person
      acceptable to the Finance Parties (acting reasonably) as its process agent
      in the place referred to in clause 23.1 (“Governing law and jurisdiction”)
      and ensure that the replacement process agent accepts its appointment and
confirms its appointment to the Finance Parties. 

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	 	(c) 	
      The Borrower accepts its appointment as the process
      agent.

	 	 	 
	 	(d) 	
      Each relevant Obligor agrees that service of documents on
      its process agent is sufficient service on it.

EXECUTED as an agreement. 

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Facility Agreement 

Signing page 

DATED: ______________________2015 

	Borrower 	 	  
	  	 	  
	EXECUTED by PENINSULA ENERGY
      LIMITED in accordance with section 127(1) of the
      Corporations Act 2001 (Cth) by authority of its directors: 	)	
	 	)  	 
	 	)  	 
	 	)  	 
	Signature of director 	)  	Signature of director/company 
	  	)  	secretary* 
	  	)  	*delete whichever is not applicable 
	 	)  	 
		)  	 
	Name of director (block letters) 	)  	Name of director/company secretary* 
	  	)  	(block letters) 
	  	 	*delete whichever is not applicable 
	  	 	  
	  	 	  
	  	 	  
	Guarantors 	 	  
	  	 	  
	EXECUTED by PM PROSPECTING PTY LTD in accordance with
      section 127(1) of the Corporations Act 2001 (Cth) by authority of
      its directors: 	)	
		)  	 
		)  	 
	 	)  	 
	Signature of director 	)  	Signature of director/company 
	  	)  	secretary* 
	  	)  	*delete whichever is not applicable 
		)  	 
		)  	 
	Name of director (block letters)	)  	Name of director/company secretary* 
	  	)  	(block letters) 
	  	)  	*delete whichever is not applicable
  

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	26683604_4 	  	  

	
      EXECUTED by PM ENERGY PTY LTD in
      accordance with section 127(1) of the Corporations Act 2001 (Cth)
      by authority of its directors: 
	)	
		)  	 
		)  	 
	 	)  	 
	Signature of director 	)  	Signature of director/company 
	  	)  	secretary* 
	  	)  	*delete whichever is not applicable 
		)  	 
		)  	 
	Name of director (block letters) 	)  	Name of director/company secretary* 
	  	)  	(block letters) 
	  	 	*delete whichever is not applicable
  

STRATA ENERGY, INC., 
a Delaware Corporation

	By:	 
	Its 	 

PENINSULA USA HOLDINGS, INC., 
a Delaware
Corporation 

	By:	 
	Its 	 

	Executed by PENINSULA URANIUM LIMITED
  
	acting by 		
	 	and  	 
	  	  	
	  	 	Director  
	 	 	 
	  	 	  
	  	 	
	 	 	Director /
Secretary  

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	Financier 
	 
	SIGNED by 
	 
	INVESTEC BANK PLC by its authorised signatories:
      

	 	 	 
	Authorised signatory 	 	Authorised signatory 
	 	 	 
	 	 	 
	Name of Authorised signatory 	 	Name of Authorised signatory

	Security Trustee 	 	  
	  	 	  
	SIGNED by 	)	
		)	 
	as attorney for INVESTEC AUSTRALIA LIMITED under
      power of attorney dated 	)	
		)	 
	in the presence of: 	)	
	 	)	 
		)	 
	 	)	 
	Signature of witness 	)	
      By executing this agreement the attorney states that the
      attorney has received no notice of revocation of the power of attorney
    

	 	)
	Name of witness (block letters) 	)

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	26683604_4EXHIBIT 10.41

Employment Agreement dated April 20, 2007 with David Jurasek

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (this "Agreement") dated as of January 1, 2007 (the "Effective Date"), is by and between VERMONT PURE HOLDINGS, LTD., a Delaware corporation (together with any subsidiaries, the "Company"), and DAVID JURASEK (the "Executive").

The Company and the Executive agree as follows:

1.            Employment.

1.1            General.  The Company shall employ the Executive, and the Executive accepts employment, as Controller and Director of Finance of the Company, upon the terms and conditions described herein.  The Executive's employment hereunder will commence on the Effective Date and will continue for the Employment Term (as defined in Section 2.1 hereof) unless terminated sooner as herein provided.  During the Employment Term, the Executive shall devote all of his business time, attention and skills to the business and affairs of the Company, and will not undertake any commitments that would interfere with or impair his performance of his duties and responsibilities.

1.2            Duties.  The Executive shall at all times render his services at the direction of the Board of Directors (the "Board of Directors") and the Chief Executive Officer of the Company, and shall report primarily to the Chief Executive Officer and, with respect to financial matters, the Chief Financial Officer of the Company.  His duties generally will include those required for the day to day and long term planning, development, and operation of the financial administration of the Company.  The Company may assign to the Executive such other executive and financial administrative duties for the Company or any affiliate of the Company as may be determined by the Board of Directors, consistent with the Executive's status as Controller and Director of Finance.  The Executive agrees to diligently use his best efforts to promote and further the reputation and good name of the Company and perform his services well and faithfully.

2.            Term, Renewal and Termination.

2.1            Term; Renewal.  Subject to Section 2.2, the Executive's employment by the Company shall be for three years from the Effective Date, ending at 11:59 p.m., East Coast time, on December 31, 2009; provided, however, that the term of employment shall be extended automatically for periods of one year commencing on the third anniversary of the Effective Date and on each subsequent anniversary thereafter, unless either party gives written notice to the other, in each case at least 180 days prior to the end of the then current term, of such party's election not to extend the term of this Agreement.  The last day of such term, as so extended from time to time, is herein referred to as the "Expiration Date" and the period beginning on the Effective Date and ending on the Expiration Date is herein referred to as the "Employment Term."

2.2            Early Termination.  Notwithstanding anything to the contrary contained in this Agreement, the Executive's employment may be terminated prior to the end of the Employment Term only as set forth in this Section.

2.2.1            Termination Upon Resignation or Death of Executive.  The Executive's employment shall terminate upon the resignation or death of the Executive. In case of termination pursuant to this Section 2.2.1, the Company shall pay to the Executive (or, in case of his death, to his estate or his beneficiary designated in writing), the base salary earned by the Executive pursuant to Section 3, prorated through the date of resignation or death.

2.2.2            Termination Upon Disability of Executive.  The Executive's employment shall terminate by reason of the disability of the Executive.  For this purpose, "disability" shall mean the Executive's inability, by reason of accident, illness or other physical or mental disability (determined in good faith by the Board of Directors with the advice of a qualified and independent physician), to perform satisfactorily the duties required by his employment hereunder for any consecutive period of 120 calendar days.  In case of termination pursuant to this Section 2.2.2, the Executive shall continue to receive his base salary prorated through the time of such termination, less any amount the Executive receives during such period from any Company‐sponsored or Company-paid source of insurance, disability compensation or government program.

2.2.3            Termination Upon Mutual Consent.  The Executive's employment may be terminated by the mutual consent of the Company and the Executive on such terms as they may agree.

2.2.4            Termination For Cause.  The Executive's employment shall terminate immediately on notice to the Executive upon a good faith finding of the Board of Directors that the Executive has (i) willfully or repeatedly failed in any material respect to perform his duties in accordance with the provisions of this Agreement following 30 days' prior written notice to the Executive and failure of the Executive to cure such deficiency, (ii) committed a breach of any provision of Section 4 hereof, (iii) misappropriated assets or perpetrated fraud against the Company, (iv) been convicted of a crime which constitutes a felony, or (v) been engaged in the illegal use of controlled or habit forming substances. The preceding clauses (i)–(v) shall constitute "Cause" for termination of the Executive hereunder.  In the event of termination for Cause pursuant to this Section 2.2.4, the Company shall pay the Executive his base salary prorated through the date of termination.

Notwithstanding any other provision of this Agreement, the Executive shall not be terminated for Cause unless and until the Executive has had an opportunity to appear before the Board of Directors to hear and respond to the allegations of Cause for his termination.

2.2.5            Termination by Company Without Cause.  The Company may terminate the Executive's employment at any time and for any reason, without Cause, upon written notice to the Executive.  Termination of employment on the Expiration Date by reason of non-renewal as provided in the first sentence of Section 2.1 shall not be considered a termination of employment without Cause.

In the event of termination pursuant to this Section 2.2.5, the Company shall, subject to Section 2.2.7, pay or provide to the Executive the following termination benefits:  (i) an amount (the "Payout Amount") equal to the Executive's annual base salary as of the termination date, payable as follows:  50% of the Payout Amount on the six-month anniversary of the termination date, followed by 8.3333% of the Payout Amount each month for six additional months in equal regular monthly installments, in each case less income taxes and other applicable withholdings, and (ii) the Executive's Fringe Benefits (as defined below) for 12 months.

The obligation of the Company to provide "Fringe Benefits" following any termination that is or is deemed to be without Cause shall mean that the Executive's participation (including dependent coverage) in the life and health insurance plans of the Company in effect immediately prior to the termination shall be continued, or substantially equivalent benefits provided, by the Company, at a cost to the Executive no greater than his cost at the date of such termination, for the period in which the Company shall be obligated to pay the Payout Amount (but not more than 12 months).  Notwithstanding the foregoing, if the Company shall be unable to provide for the continuation of an insurance benefit (such as life insurance) because such benefit was provided pursuant to an insurance policy that does not provide for the extension of such insurance benefit following termination of the employment of the Executive, then the Executive may purchase insurance providing such insurance benefit and, whether or not the Executive so elects to purchase insurance, the Company's only obligation with respect to such insurance benefit shall be to reimburse the Executive for his premium costs, up to a maximum aggregate amount for all policies of insurance purchased by the Executive pursuant to this sentence of $12,000 per annum, prorated for partial years.  If the Company is obligated pursuant to the so-called "COBRA" law to offer the Executive the opportunity for a temporary extension of health coverage ("continuation coverage"), then the Executive shall elect continuation coverage, and the premium cost of such coverage shall be borne by the Company and the Executive as provided in the first sentence of this paragraph.  Continuation coverage provided pursuant to COBRA shall terminate in accordance with COBRA.  To the extent that any benefit required to be provided to the Executive by the Company by reason of a termination for Cause shall be provided to the Executive by any successor employer, the Company's obligation to provide that benefit to the Executive shall be correspondingly offset or shall cease, as the case may be.  Except as expressly required by COBRA, in no event shall the Company have any obligation to provide Fringe Benefits after the expiration of the 12-month period provided in this Section 2.2.5.  The Executive shall not be entitled to any other expense or benefit following the termination of his employment for any reason.

2.2.6            Termination in Connection with Change of Control.  If the employment of the Executive terminates for any reason, including termination by the Executive, within 30 days following the occurrence of a "Change of Control" (as defined in this Section 2.2.6), then the Company shall, subject to Section 2.2.7, pay or provide to the Executive the following termination benefits:  (i) an amount (the "COC Payout Amount") equal to the Executive's annual base salary as of the termination date, payable as follows:  50% of the Payout Amount on the six-month anniversary of the termination date, followed by 8.3333% of the COC Payout Amount each month for six additional months in equal regular monthly installments, in each case less income taxes and other applicable withholdings, and (ii) the Executive's Fringe Benefits (as defined below) for 12 months.

A "Change of Control" shall mean a change in control of the Company (and not any person or entity that hereafter becomes a successor to all or substantially all of the business or assets of the Company by reason of a Change of Control) and shall be deemed to have taken place if: (i) a third person, including a "group" as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, becomes the beneficial owner of shares of the capital stock of the Company having more than 50% of the total number of votes that may be cast for the election of directors of the Company, (ii) the sale or other disposition (excluding mortgage or pledge) of all or substantially all of the assets of the Company, or (iii) the merger or other business combination of the Company with or into another corporation or entity pursuant to which the Company will not survive or will survive only as a subsidiary of another corporation or entity, in either case with the stockholders of the Company prior to the merger or other business combination holding less than 50% of the voting shares of the merged or combined companies or entities after such merger or other business combination.  Notwithstanding the foregoing, the following shall not be deemed to be a Change of Control for purposes hereof:  (i) any transaction in which either (x) the Executive, any of Henry Baker, Joan Baker, Peter Baker, John Baker, or any of the other lineal descendants of Henry Baker and Joan Baker, or Ross Rapaport, in each case individually or in a fiduciary capacity (each such person, other than the Executive, referred to individually as a "Baker Stockholder" and such persons collectively referred to as the "Baker Stockholders"), is or becomes, either alone or as a member of a "group" as defined in this Section, or (y) the Baker Stockholders, together with their affiliates and considered in the aggregate as a single entity, are or become, the beneficial owner or owners of shares of the capital stock of the Company having more than 50% of the total number of votes that may be cast for the election of directors of the Company, or (ii) any transaction described in SEC Rule 13e-3(a)(3)(i) in which the Executive participates as an "affiliate" of the Company within the meaning of that Rule, without regard to whether the test in Rule 13e-3(a)(3)(ii) would be satisfied in the transaction.  The rights and obligations created by this Agreement with respect to a Change of Control shall apply only with respect to the first Change of Control after the date of execution of this Agreement, and not with respect to any subsequent transaction.

2.2.7            No Other Termination Benefits; Release.  The Executive understands and agrees that the termination payments and benefits described in Section 2.2 constitute all of the payments and benefits to which he (or his estate or beneficiary) will be or become entitled to receive in case of termination of his employment, and that such payments and benefits are in lieu of any and all other payments and benefits of every kind or description to which he may be entitled, including, without limitation, the right to receive a bonus payment or any portion thereof.  Any accrued but unpaid vacation compensation shall be payable upon termination of employment.  In addition, the Executive understands and agrees that the Company's obligation to pay or provide the termination payments and benefits described herein is conditioned upon and subject to the execution and non-revocation by the Executive of a form of release of claims against the Company, the principal terms and conditions of which shall be as set forth in Exhibit A to this Agreement.

2.2.8            No Duty to Mitigate; Termination of Benefits.  The Executive shall not be required to mitigate the amount of any compensation payable to him pursuant to Section 2 hereof, whether by seeking other employment or otherwise, nor shall any compensation earned by the Executive during the period of continuance of any payments under Section 2 hereof reduce the amount of compensation payable under Section 2.

3.            Compensation.  During the Employment Term, the Company shall pay, in full payment for all of the Executive's services rendered hereunder, the following compensation:

3.1            Base Salary.  The Company shall pay the Executive an annual base salary, less income taxes and other applicable withholdings, of $165,000 in accordance with the Company's standard payroll installments.  The Compensation Committee of the Board of Directors will review the annual base salary amount as soon as practicable after the end of each fiscal year of Company to consider whether or not it should be increased.  Such determination shall be in the sole discretion of the Committee using such criteria as the members of the Committee deem relevant, including, but not limited to, the performance of the Company and the Executive.

3.2            Bonuses.  In its sole discretion, the Compensation Committee of the Board of Directors may (but is not required to) determine that the Company shall pay a bonus to the Executive after the end of each fiscal year of the Company.  Such determination shall take place as soon as practicable after the end of the fiscal year, using such criteria as the members of the Committee shall deem relevant, including, but not limited to, the performance of the Company and the Executive.  Any bonus that is to be paid to the Executive under this Section 3.2 shall be paid within 75 days after the end of the fiscal year of the Company to which it relates.

3.3            Stock Options and Restricted Stock.  The Executive shall be eligible to receive stock options and awards of restricted stock from time to time, as determined by the Compensation Committee of the Board of the Directors of the Company.

3.4            Vacation.  The Executive shall be entitled to four (4) weeks of vacation in each 12‐month period during the Employment Term, without carryover of unused vacation time.  No more than two (2) weeks may be taken consecutively.

3.5            Executive Benefit Plans.  The Executive shall be entitled to participate in all plans or programs sponsored by the Company for employees in general, including without limitation, participation in any group health, medical reimbursement, or life insurance plans.

3.6            Expense Allowance.  The Company shall reimburse the Executive for all reasonable and necessary expenses incurred by him from time to time in the performance of his duties hereunder, against receipts therefor in accordance with the then effective policies and requirements of the Company.

3.7            Disability and Other Insurance; Automobile Allowance.  The Company shall have no obligation to provide disability insurance to the Executive.  The Company agrees to provide an allowance of up to $15,000 per year, in the aggregate, to reimburse the Executive for (i) the actual cost of premiums incurred by the Executive for disability insurance obtained by the Executive; (ii) the actual cost of premiums incurred by the Executive for any other insurance which would not be available to the Executive under the Company's customary benefit plans; and (iii) the actual cost of leasing and operating an automobile for use by the Executive during the Executive's employment with the Company.  The Executive may determine in his reasonable judgment how to allocate the allowance between disability insurance premiums, other insurance premiums and automobile leasing expense.

4.            Protection of Confidential Information; Non‐Compete.

4.1            Acknowledgements.  The Executive acknowledges that:

(a)            The Executive has obtained and, during his employment by the Company, will obtain secret and confidential information concerning the business of the Company and its affiliates, including, without limitation, customer lists and sources of supply, their needs and requirements, the nature and extent of contracts with them, and related cost, price and sales information.

(b)            The Company and its affiliates will suffer substantial and irreparable damage which will be difficult to compute if, during the period of his employment with the Company or thereafter, the Executive should enter a competitive business or should divulge secret and confidential information relating to the business of the Company and its affiliates heretofore or hereafter acquired by him in the course of his employment with the Company.

(c)            The provisions of this Agreement are reasonable and necessary for the protection of the business of the Company and its affiliates.

4.2            Confidentiality.  The Executive agrees that he will not at any time, either during the Employment Term or thereafter, divulge to any person, firm or corporation any information obtained or learned by him during the course of his employment with the Company, with regard to the operational, financial, business or other affairs of the Company and its affiliates, and their respective officers and directors, including, without limitation, trade secrets, customer lists, sources of supply, pricing policies, operational methods or technical processes, except (i) in the course of performing his authorized duties hereunder, (ii) with the Company's express written consent; (iii) to the extent that any such information is lawfully in the public domain other than as a result of the Executive's breach of any of his obligations hereunder; or (iv) where required to be disclosed by court order, subpoena or other government process. In the event that the Executive shall be required to make any disclosure pursuant to the provisions of clause (iv) of the preceding sentence, the Executive promptly, but in no event more than 48 hours after learning of such subpoena, court order, or other government process, shall notify the Company, by personal delivery or by fax, confirmed by mail, to the Company and, if the Company so elects and at the Company's expense, the Executive shall:  (a) take all reasonably necessary steps requested by the Company to defend against the enforcement of such subpoena, court order or other government process, and (b) permit the Company to intervene and participate with counsel of its choice in any proceeding relating to the enforcement thereof.

4.3            Return of Property.  Upon termination of his employment with the Company, or at any time the Company may so request, the Executive will promptly deliver to the Company all Company property, including without limitation all memoranda, notes, records, reports, manuals, drawings, blueprints, computer and peripheral software and hardware, files, databases, documentation, procedures, financial statements, employee manuals, customer and vendor lists and contracts, and product material or information, and all copies thereof, relating to the business of the Company and its affiliates, and all other property associated therewith, which he may then possess or have under this control.

4.4            Non‐Competition.  During the Employment Term and for a period equal to the time during which Executive receives severance payments for benefits pursuant to Section 2 of this Agreement or for a period of 12 months in the event the Executive is terminated without entitlement to severance benefits herein, the Executive shall not, without the prior written permission of the Company, in the United States, its territories and possessions, directly or indirectly, (i) enter into the employ of or render any services to any person, firm or corporation engaged in any Competitive Business (as defined below); (ii) engage in any Competitive Business for his own account; (iii) become associated with or interested in any Competitive Business as an individual, partner, shareholder, creditor, director, officer, principal, agent, employee, trustee, consultant, advisor or in any other relationship or capacity; (iv) employ or retain, or have or cause any other person or entity to employ or retain, any person who was employed or retained by the Company or its affiliates while the Executive was employed by the Company; or (v) solicit, interfere with, or endeavor to entice away from the Company or its affiliates any of their customers or sources of supply.  However, nothing in this Agreement shall preclude the Executive from investing his personal assets in the securities of any Competitive Business if such securities are traded on a national stock exchange or in the over‐the‐counter market and if such investment does not result in his beneficially owning, at any time, more than 4.9% of the publicly‐traded equity securities of such competitor. "Competitive Business" shall mean any business or enterprise which (a) designs, sells, manufactures, markets and/or distributes still or sparkling spring or purified bottled water products or beverages, or office refreshment products, including coffee, in the home and office market, or (b) engages in any other business in which Company or its affiliates is involved at any time during the 12‐month period immediately prior to the termination of the Executive's employment.

4.5            Enforcement.  If the Executive commits a breach, or threatens to commit a breach, of any of the provisions of Section 4, the Company shall have the right and remedy to have the provisions of this Agreement specifically enforced by any court having jurisdiction over the matter, it being acknowledged and agreed by the Executive that the services being rendered hereunder to the Company are of a special, unique and extraordinary character and that any such breach or threatened breach will cause irreparable injury to the Company and that money damages will not provide an adequate remedy to the Company.  Such right and remedy shall be in addition to, and not in lieu of, any other rights and remedies available to the Company under law or equity.

4.6            Blue Penciling.  If any provision of Section 4 is held to be unenforceable because of the scope, duration or area of its applicability, the tribunal making such determination shall have the power to modify such scope, duration or area, or all of them, and such provision or provisions shall then be applicable in such modified form.

5.            Representations of Executive.  The Executive represents and warrants to the Company that he has had an opportunity to consult his personal counsel and other advisors in connection with the preparation, execution and delivery of this Agreement, and that he understands that Company counsel represented the Company and not the Executive in this matter.  The Executive is not a party to or bound by any agreement, understanding or restriction that would or may be breached by the Executive's execution and full performance of this Agreement.  The Executive expressly undertakes and agrees that none of his acts or duties hereunder that will violate any obligations he may have to any other employer (or will impose on the Company any liability to any other employer) and that he has complied with all requirements of notice applicable to the termination of any prior employment before he commenced his employment with the Company.  The Executive further represents and warrants that he has delivered to the Company complete copies of all employment agreements, understanding and restrictions to which he has been subject at any time during the last five years.

6.            Construction of this Agreement.

6.1            Choice of Law.  This Agreement is to be construed pursuant to the laws of the State of Delaware, without regard to the laws affecting choice of law.

6.2            Invalid Agreement Provisions.  Should any provision of this Agreement become legally unenforceable, no other provision of this Agreement shall be affected, and this Agreement shall continue as if the Agreement had been executed absent the unenforceable provision.

6.3            No Other Agreements.  This Agreement represents the full agreement between the Company and the Executive with respect to the subject matter hereof and the Company and the Executive have made no agreements, representations or warranties relating to the subject matter of this Agreement that are not set forth herein.  This Agreement supersedes any and all other agreements, oral or written, that may define the employment relationship between the Executive and the Company or any affiliate of the  Company, and all of such other agreements are hereby terminated, without liability to any party thereto.  Nothing in this Agreement confers any rights or remedies on any person or entity or than the parties hereto.

6.4            Notices.  All notices provided for in this Agreement shall be in writing and shall be deemed to be given when delivered personally to the party to receive the same, when transmitted by electronic means or when mailed first class, postage prepaid by certified mail, return receipt requested, addressed to the party to receive the same at the applicable addresses set forth below or such other address as the party to receive the same shall have specified by written notice give in the manner provided for in this Section.  All notices shall be deemed to have been given as of the date of personal delivery, transmittal or mailing thereof, except that notices to the Company by facsimile or electronic transmittal that are received after 5:00 p.m., East Coast time, shall be deemed to have been received at 9:00 a.m. on the next succeeding business day.

If to the Executive:  Mr. David Jurasek, 14 Meadowbrook Road, Newtown, Connecticut, with a copy to:  Thomas M. Murtha, Esq., Maher and Murtha, LLC, 528 Clinton Avenue, Bridgeport, Connecticut 06605.

If to the Company:  Vermont Pure Holdings, Ltd., 1050 Buckingham Street, Watertown, Connecticut 06795, Attention:  Chief Executive Officer, with a copy to: Dean F. Hanley, Esq., Foley Hoag LLP, 155 Seaport Boulevard, Boston, Massachusetts 02210.

6.5            Assignment.  This Agreement shall be binding upon and inure to the benefit of the Company's successors and assigns.

6.6            Disputes and Controversies.  The parties hereto agree that in case of any dispute, controversy or claim arising out of or relating to this Agreement, other than pursuant to Sections 4 and 6 hereof, the dispute, controversy or claim shall be determined by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association.  The place of the arbitration shall be Hartford, Connecticut. Any arbitration award shall be based upon and accompanied by a written opinion containing findings of fact and conclusions of law.  The determination of the arbitrator(s) shall be conclusive and binding on the parties hereto, and any judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction.

6.7            Counterparts.  This Agreement may be executed by the parties in separate counterparts, each of which when so executed and delivered will be an original, but all of which together will constitute one and the same agreement.  In pleading or proving this Agreement, it will not be necessary to produce or account for more than one such counterpart.

6.8            Waivers; Amendments.  No waiver of any breach or default hereunder will be valid unless in a writing signed by the waiving party.  No failure or other delay by any party exercising any right, power, or privilege hereunder will be or operate as a waiver thereof, nor will any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power, or privilege.  No amendment or modification of this Agreement will be valid or binding unless in a writing signed by both the Executive and the Company.

6.9            Relationship to Prior Agreement.  This Agreement replaces and supersedes in its entirety the Employment Agreement between the Company and the Executive dated as of April __, 2005 (the "Prior Agreement").  For avoidance of doubt,  the Executive shall be entitled to (i) the appropriate EBITDA bonus that he has earned with respect to the Company's fiscal year ended October 31, 2006 (as described in Section 3.2.2(i) of the Prior Agreement) and (ii) the appropriate business goals bonus that he has earned for the fiscal quarter ended January 31, 2007 (as described in Section 3.2.2(ii) of the Prior Agreement).

IN WITNESS WHEREOF, the parties have executed this Agreement under seal on April 20, 2007, but as of the date first written above.

	
 

	
COMPANY: 

	VERMONT PURE HOLDINGS, LTD.
	
 

	
 

	
By: /s/ Peter K. Baker

	
 

	
 

	
Name: Peter K Baker

Title: CEO

	 	 	
	
 

	
EXECUTIVE: 

	/s/ David Jurasek
	
 

	
 

	DAVID JURASEK
	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

EXHIBIT A

Terms of Release

As a condition to the Company's obligation to pay or provide termination payments or benefits, the Executive irrevocably and unconditionally releases, acquits and forever discharges the Company, its affiliated and related corporations and entities, and each of their predecessors and successors, and each of their agents, directors, officers, trustees, attorneys, present and former employees, representatives, and related entities (collectively referred to as the "Released Entities") from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, damages and expenses (including attorneys' fees and costs actually incurred) arising out of or in connection with his employment with or termination from the Company, which the Executive now has, owns or holds, or claims to have, own or hold, or which at any time heretofore, had owned or held, or claimed to have owned or held, or which the Executive at any time hereafter may have, own or hold, or claim to have owned or held against the Released Entities, based upon, arising out of or in connection with his employment with or termination from the Company up to the date of this Release, including but not limited to, claims or rights under any federal, state, or local statutory and/or common law in any way regulating or affecting the employment relationship, including but not limited to Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age Discrimination in Employment Act and any other federal, state, local statutory and/or common  law regulating or affecting the employment relationship.  The Executive acknowledges and understands that the termination payment or benefits to be provided to the Executive constitute a full, fair and complete payment for the release and waiver of all of the Executive's possible claims arising out of or in connection with his employment with or termination from the Company.

The Executive acknowledges that he has been provided at least twenty-one (21) days to consider whether to sign this Release, that he has been advised to consult with an attorney of his choosing concerning this Release, and that he has executed and delivered this Release and waived any claims knowingly and willingly.  The Executive may revoke this Release within seven (7) days after it is signed, and it shall not become effective or enforceable until such seven (7) day revocation period has expired.

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