Document:

EXHIBIT 10.13

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED FOR THE REDACTED PORTIONS OF THE EXHIBIT TO THIS
AGREEMENT. THE REDACTIONS ARE INDICATED WITH THREE ASTERISKS (“***”). A
COMPLETE VERSION OF THIS AGREEMENT AND EXHIBIT HAS BEEN FILED WITH THE U.S. SECURITIES
AND EXCHANGE COMMISSION.

 

Thompson Creek Metals Company
Inc.

26 W. Dry Creek, Suite 810

Littleton, Co.   80120

 

July 15, 2010

 

Royal Gold, Inc.

1660 Wynkoop St.

Denver, CO 80202

 

Re:                             Milligan Project Gold Streaming

 

Gentlemen:

 

This letter confirms our agreement regarding the
terms and conditions under which Royal Gold, Inc. (“Royal Gold”)
will purchase Refined Gold from Terrane Metals Corp. (“Terrane”)
or an Affiliate of Thompson Creek who holds a direct interest in the Milligan
Property (the “Milligan Sub”) pursuant to a form
of Purchase and Sale Agreement between Royal Gold, a wholly owned subsidiary of
Royal Gold to be identified after the date hereof (“Royal Gold
Sub”), Milligan Sub and Thompson Creek Metals Company Inc. (“Thompson Creek”) that is attached hereto as Exhibit 1
(the “Gold Purchase Agreement”).  Each of Royal Gold and Thompson Creek are
referred to herein as a “Party,” and
collectively, the “Parties”.  All capitalized terms used in this letter not
otherwise defined herein are defined in Exhibit 1.  Thompson Creek has agreed to acquire Terrane
by means of an agreement to implement a Plan of Arrangement under law of
British Columbia, Canada (the “Acquisition Agreement”)
pursuant to which Thompson Creek will acquire all of the outstanding common
stock of Terrane (the “Acquisition”).  Upon satisfaction of the conditions set forth
in this letter agreement, the Parties hereby agree to enter into the Gold
Purchase Agreement under which Royal Gold Sub will purchase, and Milligan Sub
will sell, Refined Gold.

 

In consideration of the mutual promises,
representations, warranties, covenants, and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the Parties mutually agree as follows:

 

1.                                       Gold Purchase Agreement.  At the Closing (as defined in Section 4),
each of Royal Gold and Thompson Creek shall, and each shall cause Royal Gold
Sub and Milligan Sub, respectively, to:

 

(a)                                  enter into the Gold Purchase Agreement substantially in the form
attached as Exhibit 1 hereto; and

 

(b)                                 execute, deliver and perform the agreements, documents, acts and
undertakings to be completed on or before the Effective Date pursuant to the
Gold Purchase Agreement, including, without limitation: (i) payment of the
Initial Deposit upon execution of the Gold Purchase Agreement, and (ii) execute
and deliver any intercreditor agreements as may be required pursuant to Section 8.6(a) of
the Gold Purchase Agreement.

 

 

2.                                       Representations and Warranties.

 

2.1                               Royal
Gold. 
Royal Gold, acknowledging that Thompson Creek is entering into this
letter agreement in reliance thereon, hereby makes the representations and
warranties set forth on Schedule 1 hereto, with respect to Royal Gold.

 

2.2                               Thompson
Creek. 
Thompson Creek, acknowledging that Royal Gold is entering into this
letter agreement in reliance thereon, hereby makes the representations and
warranties set forth on Schedule 2 hereto.

 

2.3                               Terrane.  Based on the actual knowledge
of the Chief Executive Officer, Chief Financial Officer and Chief Operating
Officer on the date of this Agreement, Thompson Creek knows of no reason why it
would need to qualify, or would not be able to deliver, the representations and
warranties of Milligan Sub contained in Schedule A-1 of the Gold Purchase Agreement.

 

3.                                       Pre-Closing Covenants.

 

3.1                               Consummation
of the Acquisition.  Subject to the terms and conditions of this
letter agreement and the Acquisition Agreement, Thompson Creek will use its
commercially reasonable efforts to take, or cause to be taken, all actions and
to do, or cause to be done, all things necessary, proper or advisable, subject
to Applicable Laws, promptly to consummate the Acquisition and related
transactions contemplated by the Acquisition Agreement provided that nothing
herein restricts the ability of Thompson Creek to rely on any and all
conditions in its favor under the Acquisition Agreement in its sole
discretion.  During the period commencing
on the date hereof and ending on the Closing, Thompson Creek shall confer in
good faith on a regular basis with Royal Gold regarding matters related to the
Acquisition and the general status of Thompson Creek’s evaluation of the
operations of Terrane, including the Milligan Project and the Milligan
Properties and including prompt written notice of any change in the amount or
form of consideration Thompson Creek proposes to pay in connection with the
Acquisition.

 

3.2                               Access
to Information.  Prior to the Closing, Royal Gold shall be
entitled, through its officers, employees and representatives (including its
legal advisors and accountants) to make and continue such investigation of the
properties, businesses and operations and books and records of Thompson Creek
and Terrane.  Any such investigation and
examination shall be conducted during regular business hours with reasonable
cooperation among the parties.  No
investigation pursuant to this Section 3.2 shall affect any
representation or warranty in this letter agreement of any Party or any
condition to the obligations of the Parties hereunder.

 

3.3                               Updates.  Prior to the Closing:

 

(a)                                  Prior to Closing, Thompson Creek shall promptly disclose its knowledge
of the following to Royal Gold: (i) the occurrence, or failure to occur,
of any event that the occurrence or failure of which has caused or could
reasonably be expected to result in Thompson Creek’s failure to satisfy any
condition specified herein; (ii) any failure of Thompson Creek to comply
with or satisfy in any material respect any covenant, 

 

2

 

condition or agreement to be complied with
or satisfied prior to Closing by Thompson Creek hereunder; (iii) any fact,
condition, occurrence or change, that, to the knowledge of Thompson Creek, has
had or could reasonably be expected to have or result in a material adverse
effect on the Milligan Project, Terrane or Thompson Creek; (iv) any
written notice or other communication from any Governmental Authority in
connection with the transactions contemplated hereby; and (v) any
litigation, legal action, arbitration, proceeding, mediation, demand, claim or
investigation (collectively, “Legal Proceedings”)
commenced or, to the knowledge of Thompson Creek, threatened against, relating
to or involving or otherwise affecting Thompson Creek or Terrane that relate to
the consummation of the Acquisition or the transactions contemplated hereby.

 

(b)                                 Prior to Closing, Royal Gold shall promptly disclose its knowledge of
the following to Thompson Creek: (i) the occurrence, or failure to occur,
of any event that the occurrence or failure of which has caused or could
reasonably be expected to result in Royal Gold’s failure to satisfy any
condition specified herein; (ii) any failure of Royal Gold to comply with
or satisfy in any material respect any covenant, condition or agreement to be
complied with or satisfied prior to Closing; (iii) any fact, condition,
occurrence or change, that, to the knowledge of Royal Gold, has had or could
reasonably be expected to have or result in a material adverse effect on Royal
Gold. (iv) any written notice or other communication from any Governmental
Authority in connection with the transactions contemplated hereby; and (v) any
Legal Proceedings commenced or, to the knowledge of Royal Gold, threatened
against, relating to or involving or otherwise affecting Royal Gold or Terrane
that relate to the consummation of the Acquisition or the transactions
contemplated hereby.

 

3.4                               Exclusivity.  Immediately after the execution
of this letter agreement by Thompson Creek and Royal Gold and continuing
through Closing or the earlier termination of this letter agreement:

 

(a)                                  Thompson Creek shall, and shall cause its Representatives to, cease and
terminate any existing activities, discussions or negotiations with any parties
conducted heretofore with respect to any action that would constitute an
Alternative Gold Financing Transaction and shall notify each such party that
Thompson Creek and its Representatives no longer seek or request the making of
any Alternative Gold Financing Transaction, and withdraws any consent
theretofore given to the making of a Alternative Gold Financing
Transaction.  Neither Thompson Creek nor
its Representatives shall directly or indirectly, solicit, initiate or conduct
any discussions or negotiations with, or provide any information to or
otherwise cooperate in any other way with, or facilitate or encourage any
effort to attempt to, or enter into any agreement or understanding with, any
Person or group of Persons regarding any Alternative Gold Financing
Transaction.  Thompson Creek shall
promptly (and in any event within two days) notify Royal Gold of the receipt by
Thompson Creek or any of its Representatives of any inquiries, or proposals or
requests for information concerning an Alternative Gold Financing Transaction
and shall provide Royal Gold with a copy of all written materials relating to
such inquiries, proposals or requests. 
An “Alternative Gold Financing Transaction”
means a transaction between Thompson Creek or any of its Affiliates and any
Person (including Terrane and its affiliates), other than Royal Gold, relating
to the purchase and sale of gold from any 

 

3

 

portion of the Milligan Property, including
without limitation: (i) a gold royalty on production from the Milligan
Property, (ii) an amount of gold based on production from any portion of
the Milligan Property; or (iii) any participating interest in gold based
on production from any portion of the Milligan Property (including granting any
interest in a gold royalty stream), or any transaction having a similar
economic effect, but excluding any (i) gold spot sales, (ii) gold
forward sales or options or other gold sales or gold loans to a financial
institution or bullion bank or (iii) internal transfers among Thompson
Creek and its Affiliates,.  A “Person” includes an individual, corporation, body corporate,
limited or general partnership, joint stock company, limited liability
corporation, joint venture, association, company, trust, bank, trust company,
Governmental Authority or any other type of organization, whether or not a
legal entity.  “Representatives”
means, as to any Person, such Person’s affiliates and its or their directors,
officers, employees, agents, advisors or other representatives (including,
without limitation, financial advisors, financing sources, counsel and
accountants); and

 

(b)                                 Royal Gold shall, and shall cause its Representatives to, cease and
terminate any existing activities, discussions or negotiations with any parties
conducted heretofore with respect to any action that would constitute an
Alternative Royal Gold Financing and shall notify each such party that Royal
Gold and its Representatives no longer seek or request the making of any
Alternative Royal Gold Financing and withdraws any consent theretofore given to
the making of an Alternative Royal Gold Financing.  Neither Royal Gold nor its Representatives
shall directly or indirectly, solicit, initiate or conduct any discussions or
negotiations with, or provide any information to or otherwise cooperate in any
other way with, or facilitate or encourage any effort to attempt to, or enter
into any agreement or understanding with, any Person or group of Persons
regarding any Alternative Royal Gold Financing. 
Royal Gold shall promptly (and in any event within two days) notify
Thompson Creek of the receipt by Royal Gold or any of its Representatives of
any inquiries, or proposals or requests for information concerning an
Alternative Royal Gold Financing and shall provide Thompson Creek with a copy
of all written materials relating to such inquiries, proposals or
requests.  An “Alternative
Royal Gold Financing” means a transaction between Royal Gold and its
Affiliates and any Person (including Terrane and its Affiliates), other than
Thompson Creek, relating to the purchase and sale of gold from any portion of
the Milligan Property, including without limitation: (i) a gold royalty on
production from the Milligan Property, (ii) an amount of gold based on
production from any portion of the Milligan Property; or (iii) any
participating interest in gold based on production from any portion of the
Milligan Property (including granting any interest in a gold royalty stream),
or any transaction having a similar economic effect, in each case related to an
Alternative Terrane Transaction, but excluding any (i) gold spot sales, (ii) gold
forward sales or options or other gold sales or gold loans to a financial
institution or bullion bank, (iii) internal transfers among Vendor and its
Affiliates,.  An “Alternative
Terrane Transaction” means any of the following transactions between
Terrane or any of its Affiliates and any Person, other than Thompson Creek and
its Affiliates: (i) the acquisition or purchase of any capital stock or
other voting security, any security convertible into or exercisable or
exchangeable for any capital stock or other voting security of Terrane or any
of its subsidiaries or all or a substantial portion of the assets of Terrane or
any of its 

 

4

 

subsidiaries, including without limitation
any interest in a gold royalty stream; (ii) a merger, recapitalization,
reorganization, joint venture or other business combination involving Terrane
or any of its subsidiaries; or (iii) any other extraordinary business
transaction involving or otherwise relating to Terrane or any of its
subsidiaries.

 

3.5                               Expenses
of Royal Gold. In the event Thompson
Creek receives any topping fee, break fee or expense reimbursement or similar
payment from Terrane or its Affiliates in connection with the Acquisition
Agreement or its termination, Thompson Creek shall reimburse Royal Gold for all
of its expenses incurred in connection with the transactions contemplated by
this letter agreement, including internal expenses related to Royal Gold staff
and expenses related to external advisors, consultants, and counsel, to an
aggregate maximum of US$1 million.

 

3.6                               Distribution
of Initial Deposit.  Prior to Closing, the Parties agree to use
good faith efforts to establish a procedure for payment of the Initial Deposit
at the Closing that facilitates the timely distribution of those funds in
support of the obligations of Thompson Creek under the Acquisition, provided
that such procedures do not impose any loss of interest or imposition of any
expenses upon a Party hereto apart from nominal administrative expenses.

 

4.                                       Closing.  The closing of the transactions contemplated
hereby (the “Closing”) shall occur at  1900 — 355 Burrard Street, Vancouver, British Columbia on
the same date and time as the closing of the Acquisition pursuant to the
Acquisition Agreement, provided that (i) Thompson Creek agrees to provide
no less than 48 hours advance written notice to Royal Gold of such closing
date, and (ii) all conditions to the obligations of Royal Gold and
Thompson Creek hereunder are satisfied or waived in writing by the Party
benefitting from such conditions.

 

4.1                               Mutual
Conditions.  The respective obligations of each Party to
consummate the transactions contemplated by this letter agreement are subject
to the fulfillment at or prior to the Closing of each of the following
conditions:

 

(a)                                  There shall be no effective injunction, writ or preliminary restraining
order or any order of any nature issued by a Governmental Authority of
competent jurisdiction to the effect that the transactions contemplated hereby
may not be consummated as herein provided.

 

(b)                                 All material Approvals of a Governmental Authority required in
connection with the execution and delivery of this Agreement and the performance
of the obligations hereunder shall have been made or obtained, without any
limitation, restriction or condition.

 

4.2                               Conditions
to the Obligations of Royal Gold.  The obligations of Royal Gold to consummate
the transactions contemplated by this letter agreement are subject to the
fulfillment at or prior to the Closing of each of the following additional
conditions:

 

(a)                                  The representations and warranties of Thompson Creek contained herein,
that are qualified as to materiality or words of similar import shall be true
and correct in all respects, and those not so qualified shall be true and
correct in all material respects, in each case when made and on and as of the
Closing as though made on 

 

5

 

and as of the Closing (except for
representations and warranties made as of a specified date, which shall be true
and correct as of the specified date).

 

(b)                                 Thompson Creek shall have performed or complied with, in all material
respects, all covenants, agreements and conditions contained herein required to
be performed or complied with by it prior to or at the time of the Closing.

 

(c)                                  No fact, event, occurrence or circumstance shall have occurred that,
individually or in aggregate, with or without the passage of time, has had or
is reasonably likely to result in a material adverse effect on Thompson Creek
that would materially impair or prevent Thompson Creek’s ability to close the
Acquisition or develop the Milligan Project or a material adverse effect on the
Milligan Project (in each case without regard to effects from changes in metal
prices or industry wide events that do not have a disproportionate effect).

 

(d)                                 Thompson Creek shall have consummated, or shall simultaneously with the
execution of the Gold Purchase Agreement consummate, the Acquisition of Terrane
pursuant to the terms of Acquisition Agreement.

 

4.3                               Conditions
to the Obligations of Thompson Creek.  The obligations of Thompson Creek to
consummate the transactions contemplated by this Agreement are subject to the
fulfillment of the following conditions:

 

(a)                                  The representations and warranties of Royal Gold contained herein, that
are qualified as to materiality or words of similar import shall be true and
correct in all respects, and those not so qualified shall be true and correct
in all material respects, in each case when made and on and as of the Closing
as though made on and as of the Closing (except for representations and
warranties made as of a specified date, which shall be true and correct as of the
specified date).

 

(b)                                 Royal Gold shall have performed or complied with, in all material
respects, all covenants, agreements and conditions contained herein required to
be performed or complied with by it prior to or at the time of the Closing.

 

(c)                                  No fact, event, occurrence or circumstance shall have occurred that,
individually or in aggregate, with or without the passage of time, has had or
is reasonably likely to result in a material adverse effect on Royal Gold
(without regard to effects from changes in metal prices or industry wide events
that do not have a disproportionate effect).

 

(d)                                 On or before the Closing, Royal Gold shall have executed intercreditor
agreements, in form and substance satisfactory to the parties thereto, with (i) Wells
Fargo Capital Finance, or such other lender or lenders satisfactory to Thompson
Creek, in regard to an asset backed corporate credit facility to be secured
against, among other things, inventory and receivables; and (ii) any
project finance lender or lenders as reasonably requested by Thompson
Creek.  The intercreditor agreements will
be consistent with the terms of section 8.6 of the Gold Purchase Agreement

 

6

 

5.                                       Termination.

 

5.1                               Right
to Terminate Prior to Closing of the Acquisition Transaction.  This letter agreement and the
transactions contemplated hereby may be terminated at any time prior to the
closing of the Acquisition:

 

(a)                                  by the mutual written consent of Thompson Creek and Royal Gold;

 

(b)                                 by either Thompson Creek or Royal Gold, by written notice delivered to
the other Party, if any Governmental Authority shall have issued an order or
taken any other action enjoining, restraining or otherwise prohibiting the
transactions contemplated hereby; provided, however, the Party
seeking to terminate this letter agreement pursuant to this clause (b) shall
not have initiated such proceeding or taken any action in support of such
proceeding;

 

(c)                                  by either Thompson Creek or Royal Gold, by written notice delivered to the
other Party, if the closing of the Acquisition shall not have occurred prior to
December 31, 2010, or such later date mutually agreed upon in writing by
the Parties (the “Outside Termination Date”);
provided, however, the right to terminate this letter agreement
under this Section 5.1(c) shall not be available to any Party
whose failure to fulfill any obligation under this letter agreement has been
the cause of, or resulted in, the failure of the closing of the Acquisition to
occur on or before the Outside Termination Date;

 

(d)                                 without further action by Thompson Creek or Royal Gold, effective as of
the date, if any, on which the Acquisition Agreement is terminated without the
consummation of the Acquisition or Thompson Creek’s offer to Terrane’s shareholders
contemplated thereby is withdrawn or abandoned; provided, that Thompson Creek
shall promptly notify Royal Gold in writing of such event;

 

(e)                                  without further action by Thompson Creek or Royal Gold, effective as of
the date, if any, on which the shareholders of Terrane decline to approve the
Acquisition; provided, that Thompson Creek shall promptly notify Royal Gold in
writing of such event;

 

(f)                                    without further action by Thompson Creek or Royal Gold, effective as of
the date, if any, on which Thompson Creek or Terrane publicly announce that the
Acquisition will not be proceeding, provided, that Thompson Creek shall
promptly notify Royal Gold in writing of such event;

 

(g)                                 by Royal Gold, by written notice to Thompson Creek, if

 

(i)                                     there has been a breach of any representation, warranty, covenant or
agreement of Thompson Creek contained in this letter agreement that would,
individually or in the aggregate, result in a failure of a condition set forth
in Section 4.2 on any date prior to the closing of the Acquisition
(it being understood that, for purposes of this Section 5.1(g),
such date prior to the closing of the Acquisition shall be substituted for the
closing of the Acquisition 

 

7

 

in determining whether the conditions
contained in Section 5.1(g) have been satisfied) and (ii) such
breach cannot be or has not been cured within 30 days after written notice is
provided to Thompson Creek of such breach (it being understood that Royal Gold
may not terminate this Agreement pursuant to this Section 5.1(g) if
such breach by Thompson Creek is so cured within such 30-day period); provided,
however, that no such cure period shall be available or applicable to
any such breach which by its nature cannot be cured;

 

(ii)                                  there has been any event, change, occurrence or circumstance (other than
one caused by Royal Gold) that renders the conditions set forth in Section 4.2
incapable of being satisfied by the Outside Termination Date;

 

(iii)                               Thompson Creek materially increases the cash portion of its July 9,
2010 offer to Terrane for the purchase of the shares of Terrane pursuant to the
Acquisition and, promptly following notification by Thompson Creek to Royal
Gold of such increase, Thompson Creek is not able to demonstrate to the
satisfaction of Royal Gold, acting reasonably, that Thompson Creek has or has
access to the financial resources necessary to complete the Development in
accordance with the Development Program.

 

(h)                                 by Thompson Creek, by written notice to Royal Gold, if

 

(i)                                     there has been a breach of any representation, warranty, covenant or
agreement of Royal Gold contained in this letter agreement that would,
individually or in the aggregate, result in a failure of a condition set forth
in Section 4.3 on any date prior to the closing of the Acquisition
(it being understood that, for purposes of this Section 5.1(h),
such date prior to the closing of the Acquisition shall be substituted for the
Closing in determining whether the conditions contained in Section 5.1(h) have
been satisfied) and (ii) such breach cannot be or has not been cured
within 30 days after written notice is provided to Royal Gold of such breach
(it being understood that Thompson Creek may not terminate this Agreement
pursuant to this Section 5.1(h) if such breach by Royal Gold
is so cured within such 30-day period); provided, however, that
no such cure period shall be available or applicable to any such breach or
event which by its nature cannot be cured; or

 

(ii)                                  there has been any event, change, occurrence or circumstance (other than
one caused by Thompson Creek) that renders the conditions set forth in Section 4.3
incapable of being satisfied by the Outside Termination Date.

 

5.2                               Effect
of Termination and Abandonment Prior to Closing of the Acquisition.  In the event of termination of
this letter agreement and the abandonment of the transactions contemplated
hereby pursuant to Section 5.1 hereof, this letter agreement shall
become void and of no effect with no liability on the part of any Party hereto
(or of any of its directors, officers, employees, agents, legal and financial
advisors or other representatives); provided, however, no such
termination shall relieve any Party hereto of any liability or damages 

 

8

 

resulting from (i) any willful breach
of any representations or warranties contained in this letter agreement; (ii) any
breach of any covenant or agreement contained in this letter agreement; or (iii) instances
of fraud, and provided  further, this Section 5.2 and
the provisions of Section 6 shall survive any such termination and
shall remain in effect.

 

6.                                       Miscellaneous.

 

6.1                               Entire
Agreement; Amendment.

 

(a)                                  This letter agreement and the Mutual Non-Disclosure Agreement between
Thompson Creek and Royal Gold effective as of June 1, 2010 together
constitute the entire agreement between the Parties hereto with respect to the
subject matter hereof and supersedes all other prior agreements and
understandings, both written and oral, between the Parties with respect to the
subject matter hereof.

 

(b)                                 This letter agreement may not be changed, amended, supplemented, or
otherwise modified except pursuant to an instrument in writing signed by each
of the Parties.  No course of dealing
between or among any Persons having any interest in this letter agreement shall
be deemed effective to modify or amend any part of this letter agreement or any
rights or obligations of any Person under or by reason of this letter
agreement.

 

6.2                               Notices.  All notices, requests,
instructions or other documents to be given under this Agreement shall be in
writing and shall be deemed effectively given only when personally delivered,
when received by facsimile, other electronic means or overnight delivery via a
reputable courier service, in each case, addressed as set forth in the Notice
provision of Exhibit 1.

 

6.3                               Governing
Law.  The
Parties agree that this letter agreement shall be governed by and construed in
accordance with the laws of Colorado, excluding any rule or principle that
might refer the governance or the construction of this Agreement to the laws of
another jurisdiction.

 

6.4                               Parties
in Interest.  This letter agreement shall be binding upon
and inure solely to the benefit of each Party hereto and its successors and permitted
assigns, and nothing in this letter agreement, express or implied, is intended
to or shall confer upon any other Person any rights, benefits or remedies of
any nature whatsoever under or by reason of this letter agreement.

 

6.5                               Time
of Essence.  Time is of the essence in the performance of
this letter agreement.

 

6.6                               Assignment.  Prior to the Closing, no Party
may assign this letter agreement, nor any of the rights, interests or
obligations hereunder, by operation of law (including, but not limited to, by
merger or consolidation) or otherwise, without the prior written consent of the
other Party hereto; provided, however, that either Party shall have the right,
without the consent of the other Party to assign all or any portion of its
rights, duties and obligations under this letter agreement to any of its direct
or indirect subsidiaries; provided, that no such 

 

9

 

assignment shall relieve the assigning Party
of its obligations hereunder.  Any
assignment in violation of the preceding sentence shall be void.

 

6.7                               Right
to Specific Performance.  Without limiting or waiving in any respect
any rights or remedies of the Parties under this letter agreement now or
hereafter existing at law, in equity or by statute, either Party may be
entitled to specific performance of the obligations to be performed by the
other Party hereto in accordance with the provisions of this letter agreement.

 

[Remainder of page left
intentionally blank]

 

10

 

If the foregoing conforms to your
understanding of our agreement, please countersign this letter agreement in the
space provided below.

 

	
   

  	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Thompson Creek Metals Company Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Kevin Loughrey

  
	
   

  	
   

  	
  Date:

  	
  July 15, 2010

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  Accepted and Agreed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Royal Gold, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Tony Jensen

  	
   

  	
   

  
	
  Date:

  	
  July 15, 2010

  	
   

  	
   

  
	
  Title:

  	
  President and Chief Executive Officer

  	
   

  	
   

  

 

11

 

Exhibit 1 — Form of
Gold Purchase Agreement

 

 

PURCHASE AND SALE AGREEMENT

 

 

BY AND AMONG

 

[TERRANE METALS CORP.(1)],

 

[RG NEWCO.],

 

solely in respect of Article 10
and Sections  11.4 and
17.15 hereof,

 

ROYAL GOLD, INC.

 

and, solely in respect of Article 10
and Sections 3.5, 11.2 and 17.14 hereof,

 

THOMPSON CREEK METALS
COMPANY INC.

 

DATED:  ·,
2010

 

(1)           Corporate party
holding title to Milligan Property may be reorganized.

 

 

TABLE OF CONTENTS

 

	
  Article 1
  INTERPRETATION

  	
  2

  
	
  1.1

  	
  Definitions

  	
  2

  
	
  1.2

  	
  Certain Rules of
  Interpretation

  	
  12

  
	
   

  	
   

  	
   

  
	
  Article 2
  PURCHASE AND SALE

  	
  13

  
	
  2.1

  	
  Purchase and Sale of Refined
  Gold

  	
  13

  
	
  2.2

  	
  Delivery Obligations

  	
  13

  
	
  2.3

  	
  Statements

  	
  15

  
	
  2.4

  	
  Gold Purchase Price

  	
  15

  
	
  2.5

  	
  Payment

  	
  16

  
	
  2.6

  	
  Sales Tax

  	
  16

  
	
   

  	
   

  	
   

  
	
  Article 3
  DEPOSIT

  	
  16

  
	
  3.1

  	
  Payment Deposit

  	
  16

  
	
  3.2

  	
  Initial Deposit

  	
  16

  
	
  3.3

  	
  Scheduled Deposits

  	
  16

  
	
  3.4

  	
  No Interest

  	
  16

  
	
  3.5

  	
  Use of Payment Deposit

  	
  17

  
	
  3.6

  	
  Deposit Record

  	
  17

  
	
  3.7

  	
  Deposit at Expiry of Initial
  Term

  	
  17

  
	
   

  	
   

  	
   

  
	
  Article 4
  DELIVERIES

  	
  17

  
	
  4.1

  	
  Deliveries of Vendor

  	
  17

  
	
  4.2

  	
  Deliveries of Purchaser

  	
  18

  
	
   

  	
   

  	
   

  
	
  Article 5
  PAYMENT OF SCHEDULED DEPOSITS

  	
  19

  
	
  5.1

  	
  Achievement of Deposit
  Events

  	
  19

  
	
  5.2

  	
  Payment of Scheduled
  Deposits

  	
  19

  
	
  5.3

  	
  Closing Conditions for
  Payment of Scheduled Deposits

  	
  20

  
	
   

  	
   

  	
   

  
	
  Article 6 TERM

  	
   

  	
  21

  
	
  6.1

  	
  Term

  	
  21

  
	
   

  	
   

  	
   

  
	
  Article 7
  REPORTING; BOOKS AND RECORDS; INSPECTIONS

  	
  21

  
	
  7.1

  	
  Monthly Reporting

  	
  21

  
	
  7.2

  	
  Annual Reporting

  	
  21

  
	
  7.3

  	
  Additional Reporting
  Requirements

  	
  21

  
	
  7.4

  	
  Books and Records

  	
  22

  
	
  7.5

  	
  Inspections

  	
  22

  
	
   

  	
   

  	
   

  
	
  Article 8
  COVENANTS

  	
  23

  
	
  8.1

  	
  Conduct of Operations

  	
  23

  
	
  8.2

  	
  Preservation of Corporate
  Existence

  	
  24

  
	
  8.3

  	
  Processing/Commingling

  	
  24

  
	
  8.4

  	
  Mineral Offtake Agreements

  	
  24

  
	
  8.5

  	
  Insurance

  	
  25

  
	
  8.6

  	
  Permitted Debt Financings
  and Permitted Encumbrances

  	
  25

  
	
  8.7

  	
  Confidentiality

  	
  26

  
	
  8.8

  	
  Compliance with Law

  	
  28

  

 

 

	
  8.9

  	
  Unprocessed Ore

  	
  28

  
	
   

  	
   

  	
   

  
	
  Article 9
  RIGHT OF FIRST OFFER

  	
  28

  
	
  9.1

  	
  Right of First Offer on Gold
  Interest

  	
  28

  
	
   

  	
   

  	
   

  
	
  Article 10
  TRANSFERS AND ASSIGNMENTS

  	
  30

  
	
  10.1

  	
  Transfers of the Milligan
  Project

  	
  30

  
	
  10.2

  	
  Exceptions Based on
  Intercreditor Agreements

  	
  30

  
	
  10.3

  	
  Assignment

  	
  30

  
	
   

  	
   

  	
   

  
	
  Article 11
  REPRESENTATIONS AND WARRANTIES

  	
  32

  
	
  11.1

  	
  Representations and
  Warranties of Vendor

  	
  32

  
	
  11.2

  	
  Representations and
  Warranties of Thompson Creek

  	
  32

  
	
  11.3

  	
  Representations and
  Warranties of the Purchaser

  	
  32

  
	
  11.4

  	
  Representations and
  Warranties of Royal Gold

  	
  32

  
	
  11.5

  	
  Survival of Representations
  and Warranties

  	
  32

  
	
  11.6

  	
  Knowledge

  	
  33

  
	
   

  	
   

  	
   

  
	
  Article 12
  VENDOR EVENTS OF DEFAULT

  	
  33

  
	
  12.1

  	
  Vendor Events of Default

  	
  33

  
	
  12.2

  	
  Remedies

  	
  33

  
	
   

  	
   

  	
   

  
	
  Article 13
  PURCHASER EVENTS OF DEFAULT

  	
  34

  
	
  13.1

  	
  Purchaser Events of Default

  	
  34

  
	
  13.2

  	
  Remedies

  	
  34

  
	
   

  	
   

  	
   

  
	
  Article 14
  INDEMNITIES

  	
  35

  
	
  14.1

  	
  Indemnity of Purchaser

  	
  35

  
	
  14.2

  	
  Indemnity of Vendor

  	
  35

  
	
  14.3

  	
  Limitations on
  Indemnification

  	
  35

  
	
   

  	
   

  	
   

  
	
  Article 15
  INDEPENDENT ENGINEER; ADDITIONAL PAYMENT TERMS; DISPUTES

  	
  36

  
	
  15.1

  	
  Independent Engineer

  	
  36

  
	
  15.2

  	
  Payments

  	
  37

  
	
  15.3

  	
  Overdue Payments and Set-Off

  	
  37

  
	
  15.4

  	
  Statement Disputes

  	
  37

  
	
  15.5

  	
  Disputes and Arbitration

  	
  39

  
	
   

  	
   

  	
   

  
	
  Article 16
  TAXES

  	
  39

  
	
  16.1

  	
  Taxes

  	
  39

  
	
   

  	
   

  	
   

  
	
  Article 17
  GENERAL

  	
  39

  
	
  17.1

  	
  Further Assurances

  	
  39

  
	
  17.2

  	
  Survival

  	
  40

  
	
  17.3

  	
  No Joint Venture

  	
  40

  
	
  17.4

  	
  Governing Law

  	
  40

  
	
  17.5

  	
  Notices

  	
  40

  
	
  17.6

  	
  [Reserved]

  	
  42

  
	
  17.7

  	
  Amendments

  	
  42

  
	
  17.8

  	
  Beneficiaries

  	
  42

  
	
  17.9

  	
  Contests

  	
  42

  
	
  17.10

  	
  Entire Agreement

  	
  42

  

 

ii

 

	
  17.11

  	
  Waivers

  	
  42

  
	
  17.12

  	
  Severability

  	
  43

  
	
  17.13

  	
  Counterparts

  	
  43

  
	
  17.14

  	
  Thompson Creek Guarantee

  	
  43

  
	
  17.15

  	
  Royal Gold Guarantee

  	
  43

  

 

iii

 

THIS PURCHASE AND SALE AGREEMENT dated as of ·, 2010.

 

BY AND AMONG:

 

[RG NEWCO]., a ·

 

(the “Purchaser”),

 

- and-

 

TERRANE METALS CORP.(2), a corporation incorporated under the laws of
British Columbia

 

(the “Vendor”)

 

-and, solely in respect of Article 10 and
Sections 11.4 and 17.15 hereof

 

ROYAL GOLD, INC., a corporation incorporated under the laws of the
State of Delaware

 

(“Royal Gold”)

 

- and, solely in respect of Article 10 and
Sections 3.5, 11.2 and 17.14 hereof

 

THOMPSON CREEK METALS
COMPANY INC., a corporation
incorporated under the laws of British Columbia

 

(“Thompson Creek”)

 

WITNESSES THAT:

 

WHEREAS Vendor has agreed to sell to the Purchaser and the Purchaser has agreed
to purchase from Vendor, an amount of Refined Gold equal to the Designated
Percentage of Produced Gold, subject to and in accordance with the terms and
conditions of this Agreement;

 

AND WHEREAS Vendor is the owner of a 100% interest in and to the Milligan Property;

 

AND WHEREAS capitalized terms when used in these recitals shall have the respective
meanings set forth in Section 1.1.

 

NOW THEREFORE in consideration of the mutual covenants and agreements herein
contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the Parties hereto, the Parties
mutually agree as follows:

 

(2)           See Footnote 1.

 

 

Article 1

INTERPRETATION

 

1.1                               Definitions

 

In this Agreement, including in the recitals
and schedules hereto:

 

“Acquisition”
means the acquisition of all of the outstanding securities of Terrane Metals
Corporation and its interest in the Milligan Project by Thompson Creek pursuant
to the terms of an Arrangement Agreement dated July 15, 2010.

 

“Additional Term”
has the meaning set out in Section 6.1(a).

 

“Affiliate”
means, in relation to any person or entity, any other person or entity
controlling, controlled by or under common control with such first mentioned
person or entity.

 

“Agreement”
means this purchase and sale agreement and all attached schedules, in each case
as the same may be supplemented, amended, restated, modified or superseded from
time to time in accordance with the terms hereof.

 

“Applicable Laws”
means any international, federal, state, provincial, or municipal law,
regulation, ordinance, code, order or other requirement or rule of law or
the rules, policies, orders or regulations of any Governmental Authority or
stock exchange, including any judicial or administrative interpretation thereof,
applicable to a person or any of its properties, assets, business or
operations.

 

“Approvals”
means all authorizations,
clearances, consents, orders and other approvals required to be obtained from
any person, including any Governmental Authority or stock exchange, in
connection with the completion of the transactions contemplated by this
Agreement.

 

“Arbitration Rules”
means the rules established pursuant to the International
Commercial Arbitration Act (British
Columbia).

 

“Assignee” has
the meaning set forth in Section 10.1(a).

 

“Assignment” has
the meaning set forth in Section 10.1.

 

“Assignor” has
the meaning set forth in Section 10.1.

 

“Auditor” means
a national Canadian accounting firm, as supported in the discretion of such
accounting firm by a nationally recognized minerals engineering firm, that is
independent of the Parties and their respective Affiliates, and that has
experience and expertise in determining the quantity of gold mined, produced,
extracted or otherwise recovered from mining projects.

 

“Auditor’s Report”
has the meaning set out in Section 15.4(a)(ii).

 

2

 

“Business Day”
means any day other than a Saturday or Sunday or a day that (i) is a
statutory holiday under the laws of the Province of British Columbia, or (ii) national
banking institutions in New York and Colorado are closed to the public for
conducting business.

 

“Commingling Plan”
has the meaning set out in Section 8.3.

 

“Confidential Information”
has the meaning set out in Section 8.7(a).

 

“Confidentiality Agreement”
means the Mutual Non-Disclosure Agreement between Thompson Creek and Purchaser
effective as of June 1, 2010.

 

“control” means
the right, directly or indirectly, to direct or cause the direction of the
management of the business or affairs of a person, whether by ownership of
securities, by contract or otherwise; and “controls”, “controlling”, “controlled
by” and “under common control with” have corresponding meanings.

 

“Corporate Financing”
means one or more secured corporate credit facility(ies) in favour of Vendor or
any of its Affiliates, or pursuant to which the Vendor would be a guarantor,
that is secured partially or wholly against the Milligan Project and to which
proceeds thereof may or may not be used for the purpose of financing all or a
portion of the Project Costs of Development but does not include any unsecured
financing or secured financing of the Vendor or any of its Affiliates that is
not secured against the Milligan Project.

 

“Corporate Lenders”
means the lenders and their agents and trustees under any Corporate Financing.

 

“Corporate Lender Security”  means Encumbrances (including Permitted Encumbrances) in
favour of any Corporate Lenders (or agent or trustee on their behalf) as
security for the payment and performance, when due, of the obligations of
Vendor or any of its Affiliates under any Corporate Financing.

 

“CSA” has the
meaning set out in Section 8.7(a)(ii).

 

“Date of Delivery”
has the meaning set out in Section 2.2(c).

 

“Default Deposit Reduction
Date” means the date on which the Deposit Record would have been
reduced to nil assuming for all purposes that no Purchaser Event of Default set
forth in Section 13.1(a) or 13.1(b) occurred or continued.

 

“Definitive Agreement”
has the meaning set out in Section 9.1(b).

 

“Delivery”
means, in respect of a delivery of Refined Gold, either the crediting of units
of gold into a metal account or, if the Vendor elects to deliver physical gold
pursuant to Section 2.2(e), the physical delivery of Refined Gold to a
metal account and “Delivered”
means that such Refined Gold has been so credited or physically delivered.

 

“Deposit Event”
has the meaning set out in Section 5.1.

 

3

 

“Deposit Record”
has the meaning set out in Section 3.6.

 

“Deposit Record Report”
has the meaning set out in Section 7.3(d).

 

“Deposit Reduction Time”
means the time at which the Deposit Record is reduced to nil.

 

“Deposit Suspension Event”
means an event that is reasonably beyond the control of the Vendor and its
Affiliates that prevents the Vendor and its Affiliates from continuing to
advance the Development Program, including (i) acts of God, earthquake,
cyclone, fire, explosion, flood, landslide, lightening storm, tempest, drought
or meteor, (ii) war (declared or undeclared), invasion, act of foreign
enemy, hostilities between nations, civil insurrection or military usurper
power, (iii) revolution or act of public enemy, sabotage, malicious
damage, terrorism, insurrection or civil unrest, (iv) confiscation,
nationalisation, requisition, expropriation, embargo, restraint or damage to
property by or under the order of any Governmental Authority, (v) shortages
or inability to obtain fuel, water, electric power, raw materials, supplies or
equipment (vi) transportation difficulties or handling or loading
difficulties at any port or storage facility, (vii) epidemic or quarantine
restrictions, or (viii) an event having the effect of damaging any part of
the Milligan Project, (ix) strikes, blockades, lock out or other labor
dispute, or (vii) blockades by First Nations groups that substantially
prevent or inhibit ingress or egress to the Milligan Project.

 

“Designated Percentage of
Produced Gold” means, without duplication (i) 25% “***” times
the number of ounces of Produced Gold in the form of concentrate in respect of
which the Vendor or any of its Affiliates receives a Gold Payment, (ii) 25%
“***” times the number of ounces of Produced Gold in the form of doré in
respect of which the Vendor or any of its Affiliates receives a Gold Payment,
or (iii) 25% times any Gold Payment received by Vendor or any of
its Affiliates, in respect of Produced Gold that is not in the form of
concentrate or doré.

 

“Development”  means all activities,
operations and work performed for the purpose of or in connection with
construction of the Milligan Facilities through to the point of mechanical
completion of relevant processing facilities as determined in accordance with
the principle Engineering Procurement Construction Management contract (or
equivalent contract) governing the construction of the Milligan Facilities, and
including (i) acquisitions of mineral rights, Surface Rights, water
rights, Permits and other interests necessary for the conduct of construction
and operation of the Milligan Project, (ii) pre-production stripping and
development for the commencement of open pit mining operations, and (iii) activities
undertaken to comply with any legal requirements arising out of or related to
any of the foregoing, all in material accordance with the Milligan Report as it
may be amended from time to time.

 

“Development Program”  means the detailed monthly budget and schedule outlining the Development
in accordance with the mine plan set forth in the Milligan Report and otherwise
prepared in accordance with Schedule D, including an estimate of Project Costs
and showing, without limitation, the material construction, mine development,
equipment acquisitions and Permits to bring the Milligan Project or any part
thereof into commercial production, as amended from time to time.

 

4

 

“Dispute Notice”
has the meaning set out in Section 15.4(a)(i).

 

“Dispute Period”
has the meaning set out in Section 15.4(a)(i).

 

“Effective Date”
means the date of this Agreement.

 

“Encumbrances”
means any and all mortgages, charges, assignments, hypothecs, pledges, security
interests, liens and other encumbrances and adverse claims of every nature and
kind securing any obligation of any person, whether registered or unregistered.

 

“Environmental
Laws” mean Applicable Laws relating to pollution or protection of
the environment, including, without limitation, Applicable Laws relating to
emissions, discharges, releases of pollutants, contaminants, chemicals, or
industrial, toxic or hazardous substances or wastes into the environment
(including, without limitation, ambient air, surface water, ground water,
aquifers, land surface or subsurface strata) or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of pollutants, contaminants, chemicals or industrial,
toxic or hazardous substances or wastes which are applicable to the Milligan
Project, the other assets owned, controlled or managed by the Vendor which are
used on or in connection with the or the Milligan Project or to the activities
of the Vendor on or in connection with the Milligan Project.

 

“Event of
Force Majeure” means an event that is reasonably beyond the control
of a Party and its Affiliates, including (i) acts of God, earthquake,
cyclone, fire, explosion, flood, landslide, lightening storm, tempest, drought
or meteor, (ii) war (declared or undeclared), invasion, act of foreign
enemy, hostilities between nations, civil insurrection or military usurper
power, (iii) revolution or act of public enemy, sabotage, malicious
damage, terrorism, insurrection or civil unrest, (iv) confiscation,
nationalisation, requisition, expropriation, embargo, restraint or damage to
property by or under the order of any Governmental Authority, (v) epidemic
or quarantine restrictions, or (vi) strikes, blockades, lock out or other
labor dispute, or (vii) blockades by First Nations groups that
substantially prevent or inhibit ingress or egress to the Milligan Project.

 

“Fixed Price”
means (i) with respect to the first 550,000 aggregate ounces of Refined
Gold sold by the Vendor to the Purchaser hereunder, US$400 per ounce, and (ii) with
respect to each ounce of Refined Gold sold by the Vendor to the Purchaser hereunder
in excess of 550,000 aggregate ounces, US$450 per ounce.

 

“Gold Payment”  means (i) with
respect to Minerals purchased by an Offtaker from the Vendor or any of its
Affiliates, the receipt by the Vendor or any of its Affiliates of payment,
whether provisional or final, or other consideration from the Offtaker in
respect of any Produced Gold, including amounts received in respect of
warehouse holding certificates, and (ii) with respect to Minerals refined,
smelted or otherwise beneficiated by an Offtaker on behalf of the Vendor or any
of its Affiliates, the receipt by the Vendor or any of its Affiliates of
Refined Gold, whether provisional or final settlement, in accordance with the
applicable Mineral Offtake Agreement.

 

“Gold Purchase Price”
has the meaning set out in Section 2.4.

 

5

 

“Governmental Authority”
means any federal, provincial or local government, agency, department,
ministry, authority, tribunal, commission, official, court or securities
commission.  For the avoidance of doubt,
Governmental Authority shall not be deemed to include First Nations.

 

“Independent Engineer”
has the meaning set out in Section 15.1.

 

“Initial Term”  has the meaning set
out in Section 6.1(a).

 

“Insolvency Event”
means the making of an assignment for the benefit of creditors by a Party or a
Party becoming the voluntary or involuntary subject of any proceedings under
any bankruptcy or insolvency law, which proceedings remain undischarged for a
period of 30 days, or if a receiver or receiver/manager is appointed for all or
any substantial part of the property and business of a Party and such receiver
or receiver/manager remains undischarged for a period of 30 days, or if the
corporate existence of a Party is terminated by voluntary or involuntary
dissolution or winding-up (other than by way of amalgamation or
reorganization).

 

“Lenders” means
the lenders and their agents and trustees under any Vendor Financing.

 

“LIBO Rate”
means for any calendar month the British Bankers’ Association Interest
Settlement Rate for US Dollars for an interest period of three months displayed
and identified on the Reuters Screen LIBOR 01 Page at approximately 10:00
am (Toronto time) on the first Business Day of that month, provided however, if
such rate does not appear on the Reuters Screen LIBOR 01 Page at that
time, then the “LIBO Rate” for that calendar month shall be the six month LIBO
Rate (determined as at 10:00 am (Toronto time) on such Business Day) as quoted
to the Purchaser by a major UK bank.

 

“Losses” has the
meaning set out in Section 0.

 

“Lot” means the
applicable quantity of Minerals delivered to and accepted by an Offtaker, that
is separately sampled and assayed so that Vendor and the applicable Offtaker
can agree upon the content of some or all of the relevant Minerals therein, all
as set forth in the applicable Mineral Offtake Agreement.

 

“Lot Provisional Percentage”
means for Lots in which a provisional payment pursuant to Section 2.2(a)(ii) is
applicable, “***”.

 

“Material Adverse Effect”
means any event, occurrence, change or effect that, when taken individually or
together with all other events, occurrences, changes or effects, is or could
reasonably be expected to:

 

(a)                                  materially
limit, restrict or impair the ability of Vendor to perform its obligations
under this Agreement;

 

6

 

(b)                                 limit,
restrict or impair the ability of Vendor to operate the Milligan Project
substantially in accordance with the mine plan for the Milligan Project in
effect at the time of the occurrence of the Material Adverse Effect; or

 

(c)                                  cause
any significant decrease to expected gold production from the Milligan Project
based on the mine plan for the Milligan Project in effect at the time of the
occurrence of the Material Adverse Effect.

 

“Milligan Facilities”
means the mining, processing, production, maintenance, administration,
infrastructure and related ancillary infrastructure constructed or operated by
the Vendor and its Affiliates to extract and beneficiate Minerals on the
Milligan Property.

 

“Milligan Gold Right”
has the meaning set forth in Section 9.1.

 

“Milligan Project”
means collectively, the Milligan Property and the Milligan Facilities.

 

“Milligan Property”
means the Mineral Claims and the Mining Lease listed in Schedule B
attached hereto, and includes any extension, renewal, replacement, conversion
or substitution of any such Mineral Claims into a Mining Lease, Surface Rights
or other right or concession or after acquired or resulting Mining Lease,
Mineral Claims, Surface Rights and other rights or concessions, including any
re-acquired after abandonment or other disposition, but in every case without
extending the area covered by the Milligan Property past the area covered by
the Mineral Claims and the Mining Lease listed in Schedule B.

 

“Milligan Report”
means the Technical Report pursuant to National Instrument 43-101 of the CSA of
Terrane Metals Corp. dated October 13, 2009, entitled “Technical Report —
Feasibility Update Mt. Milligan Property — Northern BC” or such other technical
report under National Instrument 43-101 as Thompson Creek may prepare from time
to time regarding the Milligan Project that establishes a mine plan for initial
commercial production of Minerals from the Milligan Property, provided that
such mine plan does not establish production at a materially lower volume or
materially extend the Development schedule compared to that contemplated in the
Milligan Report on the Effective Date.

 

“Mineral Claim”
means a mineral claim issued under the Mineral Tenure Act
(British Columbia) or any successor statute thereto or by any Governmental
Authority.

 

“Mineral Offtake Agreement”
means any agreement entered into by Vendor or any of its Affiliates with an
Offtaker (i) for the sale of Minerals to such Offtaker, or (ii) for
the smelting, refining or other beneficiation of Minerals by such Offtaker for
the benefit of the Vendor or any of its Affiliates, and all amendments or
addendums thereto.

 

“Minerals” means
any and all marketable metal bearing material (including Produced Gold) in
whatever form or state that is mined, produced, extracted or otherwise
recovered from the Milligan Property, including any such material derived from
any processing or reprocessing of any tailings, waste rock or other waste
products originally derived from the Milligan Property, and including ore and
any other products requiring further milling, processing, smelting, refining or
other beneficiation, including concentrates or doré bars.

 

7

 

“Mining Lease”
means a mining lease issued under the Mineral Tenure Act
(British Columbia) or any successor statute thereto or by any Governmental
Authority.

 

“Monthly Construction Report”  means a written report in relation to a calendar month with respect to
the Milligan Project prepared by the engineering, procurement and construction
management contractor and any other internally-prepared monthly report covering
aspects of the Development Program but not included in the engineering,
procurement and construction management report, together with such other materials
and information as the Purchaser reasonably may request, which may include a
summary of any (A) material health and safety violations, (B) material
violations of Applicable Law (including Environmental Laws), (C) blockades
or other disputes or disturbances with First Nations groups, and (D) a
summary of the status of Permits and Permit applications, to be prepared by or
on behalf of the Vendor for each month while the Milligan Project is under
Development.

 

“Monthly Report”  means a written
report in relation to a calendar month prepared by the Vendor or its Affiliates
with respect to the Milligan Project, together with such other materials and
information as the Purchaser reasonably may request, which may include:

 

(i)            a summary of the types,
tonnes or tons and gold grade of ore mined;

 

(ii)           types, tonnes or tons and gold grade of any ore
stockpiled;

 

(iii)          with respect to any processing plant of the Milligan
Facilities, the types, tonnes or tons and gold grade of processed ore;
recoveries for gold; dry concentrate tonnage or tonage and gold grades; and
doré weight and gold grade;

 

(iv)          the number of ounces of gold contained in ore
processed during such month, but not delivered to an Offtaker by the end of
such month; and

 

(v)           such
other matters as the Purchaser may reasonable request, which may include a
summary of any (A) exploration programs, (B) operational issues, (C) material
health and safety violations, (D) material violations of Applicable Law
(including Environmental Laws), (E) blockades or other disputes or
disturbances with First Nations groups, and (F) a summary of the status of
Permits and Permit applications.

 

“Negotiation Period”
has the meaning set out in Section 9.1(b).

 

“Offtaker” means
any person other than the Vendor or any of its Affiliates that is a
counterparty to a Mineral Offtake Agreement or an Affiliate of the Vendor who
contracts with the Vendor on arm’s length commercial terms in respect of the
applicable Mineral Offtake Agreement.

 

“Offtaker Documents”
means the provisional documents and final settlement sheets delivered to or in
the possession of the Vendor that are necessary for the Purchaser to determine
the amount of Refined Gold sold by the Vendor to the Purchaser pursuant to Section 2.1(a) and
such other related documents delivered to or in the possession of the 

 

8

 

Vendor as the Purchaser may reasonably request,
which may include all invoices, credit notes, bills of lading,  and any and all certificates and other
documentation prepared or produced by the Offtaker, including without
limitation, certificates in respect of provisional and final shipped moisture
content, all provisional and final analyses and assays evidencing the amount of
Minerals, including Produced Gold, delivered to an Offtaker in each Lot and
evidencing the amount of Refined Gold projected or resulting from the refining,
smelting or other beneficiation of a particular Lot.

 

“Other Minerals”
means any and all marketable metal bearing material in whatever form or state
(including ore) that is mined, extracted or otherwise recovered from any
location that is not within the Milligan Property.

 

“Parties” means
the parties to this Agreement.

 

“Payment Deposit” has
the meaning set forth in Section 3.1.

 

“Permits” means
all material licenses, permits, Approvals (including environmental Approvals)
rights (including surface and access rights), privileges, concessions or
franchises necessary for the construction, development, operation and
reclamation of the Milligan Project.

 

“Permitted Encumbrances”
means at any time from time to time: (i) the Project Security, (ii) undetermined
or inchoate Encumbrances incidental to construction, maintenance or operations
which have not at the time been filed pursuant to law, (iii) the
Encumbrance of taxes and assessments for the then current year, the Encumbrance
for taxes and assessments not at the time overdue and Encumbrances securing
worker’s compensation assessments which are not overdue, (iv) cash or
governmental obligations deposited in the ordinary course of business in
connection with contracts, bids, tenders or to secure worker’s compensation,
unemployment insurance, surety or appeal bonds, costs of litigation, when
required by law, public and statutory obligations, Encumbrances or claims
incidental to current construction, mechanics’, warehousemen’s, carriers’ and
other similar Encumbrances, (v) security given in the ordinary course of
business to a public utility or any Governmental Authority when required by
such utility or Governmental Authority in connection with the operations of the
Vendor in the ordinary course of business, (vi) easements, rights of way
and servitudes in existence at the date hereof and future easements, rights of
way and servitudes, (vii) all rights reserved to or vested in any
Governmental Authority by the terms of any lease, licence, franchise, grant or
permit held by the Vendor or by any statutory provision to terminate any such
lease, licence, franchise grant or permit or to require annual or periodic
payments as a condition of the continuance thereof or to distrain against or to
obtain an Encumbrance on any property or assets of the Vendor in the event of
failure to make such annual or other periodic payments, (viii) such other
Encumbrances as may from time to time be consented to in writing by the
Purchaser, and (ix) Encumbrances noted on Schedule E.

 

“person”
includes an individual, corporation, body corporate, limited or general
partnership, joint stock company, limited liability corporation, joint venture,
association, company, trust, bank, trust company, Governmental Authority or any
other type of organization, whether or not a legal entity.

 

9

 

“Produced Gold” means any and all gold in whatever form or
state that is derived from any material mined, produced, extracted or otherwise
recovered from the Milligan Property during the Term.  For greater certainty, “Produced
Gold” shall include any gold derived from ores, concentrates, doré, tailings, waste rock or other waste products, or other products
originating from the Milligan Property.

 

“Project Costs”  means the estimated
total costs for the Development, including capital costs, operating costs,
working capital costs, interest costs, and financing costs.

 

“Project Financing”  means one or more credit facility(ies) available to the Vendor or any of
its Affiliates for the purpose of financing all or a portion of the Project
Costs of the Development in accordance with the Development Program that complies
with Section 8.6, including any  refinancing thereof.

 

“Project
Lenders”  means the lenders and their agents
and trustees under any Project Financing.

 

“Project Security”  means Encumbrances in
favour of any Project Lenders (or agent or trustee on their behalf) as security
for the payment and performance, when due, of the obligations of the Vendor or
any of its Affiliates under any Project Financing.

 

“Project Studies”
has the meaning set out in Section 7.3(c).

 

“Purchaser” has
the meaning set out in the recitals to this Agreement.

 

“Purchaser Event of Default”
has the meaning set out in Section 13.1.

 

“Purchaser Gold Delivery”
means the Delivery of Refined Gold to the Purchaser as set out in Section 2.2(a).

 

“Purchaser’s Pro Rata Share
of Funding” means the figure
obtained by dividing the remaining Scheduled Deposits by the Project Costs
necessary to complete Development.

 

“Receiving Party”
has the meaning set out in Section 8.7(a).

 

“Reference Price”
means the market price used to determine the price for Refined Gold in
connection with a sale of Minerals under a Mineral Offtake Agreement.  For greater certainty, “Reference Price” does
not include Refining Adjustments.

 

“Refining Adjustments”
means any refining charges, treatment charges, penalties, insurance charges,
transportation charges, settlement charges, financing charges or price
participation charges, or other similar charges or deductions, regardless of
whether such charges or deductions are expressed as a specific metal deduction,
separate and apart from the recovery rate pursuant to the terms of the
applicable Mineral Offtake Agreement.

 

“Refined Gold”
means marketable metal bearing material in the form of gold bars or coins that
is refined to a minimum 995 parts per 1,000 fine gold.

 

10

 

“Restricted Person”
means any person or entity that:

 

(a)                                  is
named, identified, described on or included on any of:

 

(i)      the lists maintained by the
Office of the Superintendent of Financial Institutions Canada with respect to
terrorism financing;

 

(ii)     the Denied Persons List, the
Entity List or the Unverified List, compiled by the Bureau of Industry and
Security, U.S. Department of Commerce;

 

(iii)    the List of Statutorily
Debarred Parties compiled by the U.S. Department of State;

 

(iv)    the Specially Designated
Nationals Blocked Persons List compiled by the U.S. Office of Foreign Assets
Control; or

 

(v)     the annex to, or is
otherwise subject to the provisions of, U.S. Executive Order No. 13324,

 

(b)                                 is
subject to trade restrictions under United States law, including, but not
limited to:

 

(i)      the International Emergency Economic Powers Act, 50 U.S.C.; or

 

(ii)     the Trading with the Enemy
Act, 50 U.S.C. App. 1 et seq.; or any other enabling legislation or executive
order relating thereto, including the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, Title III of Pub. L. 107-56; or

 

(c)                                  is
a person or entity who is an Affiliate of a person or entity listed above.

 

“Sales Tax”
has the meaning set out in Section 2.6.

 

“SEC”
has the meaning set out in Section 8.7(a)(ii).

 

“Security Agreements”
has the meaning set out in Section 4.1(b).

 

“Surface Rights”
means all rights to use, enter and occupy the surface of a Mineral Claim or
Mining Lease for the exploration and development or production of Minerals or
placer minerals, including the treatment of ore and concentrates, and all
operations related to the exploration and development or production of Minerals
or placer minerals and the business of mining, and all leases, licenses,
contracts, agreements, Permits or other documents relating to such rights,
including without limitation, any and all surface rights related to
infrastructure such as electric power lines and roads, surface tenures issued
by a Governmental Authority such as investigative permits and temporary
permits, and any lease to the surface of the Milligan Property or license of
occupation or other occupation right and includes any fee simple rights over
any part of the Milligan Property.

 

11

 

“Term” has the
meaning set out in Section 6.1(a).

 

“Thompson Creek”
has the meaning set out in the recitals to this Agreement.

 

“Time of Delivery”
has the meaning set out in Section 2.2(c).

 

“Transfer” has
the meaning set forth in Section 10.3.

 

“Vendor” has the
meaning set out in the recitals to this Agreement.

 

“Vendor Event of Default”
has the meaning set out in Section 12.1.

 

“Vendor Offer”
has the meaning set out in Section 9.1(a).

 

1.2                               Certain Rules of
Interpretation

 

Except as may be otherwise specifically
provided in this Agreement and unless the context otherwise requires:

 

(a)                                  the
terms “Agreement”, “this Agreement”, “the Agreement”, “hereto”, “hereof’, “herein”,
“hereby”, “hereunder” and similar expressions refer to this Agreement in its
entirety and not to any particular provision hereof;

 

(b)                                 references
to an “Article”, “Section” or “Schedule” followed by a number or letter refer
to the specified Article or Section of or Schedule to this Agreement;

 

(c)                                  headings
of Articles and Sections are inserted for convenience of reference only and
shall not affect the construction or interpretation of this Agreement;

 

(d)                                 where
the word “including” or “includes” is used in this Agreement, it means “including
without limitation” or “includes without limitation”;

 

(e)                                  the
language used in this Agreement is the language chosen by the Parties to
express their mutual intent, and no rule of strict construction shall be
applied against any Party;

 

(f)                                    unless
the context otherwise requires, words importing the singular include the plural
and vice versa and words importing gender include all genders;

 

(g)                                 a
reference to a statute includes all regulations made pursuant to such statute
and, unless otherwise specified, any reference to a statute or regulation
includes the provisions of any statute or regulation which amends, supplements
or supersedes any such statute or any such regulation;

 

(h)                                 in
this Agreement a period of days shall be deemed to begin on the first day after
the event which began the period and to end at 5:00 p.m. (Mountain time)
on the last day of the period. If, however, the last day of the period does not
fall on a Business Day, the period shall terminate at 5:00 p.m. (Mountain
time) on the next Business Day;

 

12

 

(i)                                     unless
specified otherwise in this Agreement, all statements or references to dollar
amounts in this Agreement are to United States of America dollars; and

 

(j)                                     the
following schedules are attached to and form part of this Agreement:

 

	
  Schedule A1

  	
  -

  	
  Vendor Representations and Warranties

  
	
  Schedule A2

  	
  -

  	
  Thompson Creek Representations and Warranties

  
	
  Schedule A3

  	
  -

  	
  Purchaser Representations and Warranties

  
	
  Schedule A4

  	
  -

  	
  Royal Gold Representations and Warranties

  
	
  Schedule B

  	
  -

  	
  Description of Milligan Property (with Maps)

  
	
  Schedule C1

  	
  -

  	
  Form of Security Agreement for Milligan
  Property

  
	
  Schedule C2

  	
  -

  	
  Form of Security Agreement for Personal
  Property

  
	
  Schedule C3

  	
  -

  	
  Form of Security Agreement - Floating
  Charge

  
	
  Schedule D

  	
  -

  	
  Development Program and Scheduled Deposits

  
	
  Schedule E

  	
  -

  	
  Permitted Encumbrances

  
	
  Schedule F

  	
  -

  	
  Provisional Payment Illustration

  

 

Article 2

PURCHASE AND SALE

 

2.1                               Purchase
and Sale of Refined Gold

 

(a)                                  Subject
to and in accordance with the terms of this Agreement, the Vendor hereby agrees
to sell to the Purchaser, and the Purchaser hereby agrees to purchase from the
Vendor, an amount of Refined Gold equal to the Designated Percentage of
Produced Gold, free and clear of all Encumbrances.

 

(b)                                 For
each sale of Refined Gold pursuant to Section 2.1(a), the amount of
Produced Gold used as the basis for calculating the Designated Percentage of
Produced Gold shall be determined by the amount of contained gold in the
Minerals received at the Offtaker as determined by the Offtaker Documents.  Produced Gold shall not be reduced for, and
the Purchaser shall not be responsible for, any Refining Adjustments.

 

2.2                               Delivery
Obligations

 

(a)                                  The
Vendor will effect the sale to Purchaser of the Refined Gold as contemplated in
Section 2.1(a) within two Business Days following the date of the
relevant Gold Payment.  In the event a
Gold Payment consists of a provisional payment, then:

 

(i)                  if such Gold Payment
represents a provisional payment in respect of a Lot under a Mineral Offtake
Agreement that is made in the form of Refined Gold, the Vendor shall sell and
deliver to the Purchaser Refined Gold equal to the Designated Percentage of
Produced Gold for such Lot multiplied by the applicable provisional payment
percentage specified in such Mineral Offtake Agreement;

 

(ii)               if such Gold Payment
represents a provisional payment in cash in respect of a Lot under a Mineral
Offtake Agreement, the Vendor shall sell and 

 

13

 

deliver to the Purchaser Refined Gold equal to the
Designated Percentage of Produced Gold (based on the Produced Gold identified
on the provisional settlement sheet provided by the Offtaker for such Lot)
multiplied by the applicable Lot Provisional Percentage;

 

(iii)          “***”

 

(iv)           in respect of a Gold Payment
that represents the final settlement payment under a Mineral Offtake Agreement
for any Lot for which the Vendor previously Delivered Refined Gold to the Purchaser
in connection with a provisional Gold Payment pursuant to Section 2.2(a)(i),
2.2(a)(ii) or 2.2(a)(iii) above, the Vendor shall sell and deliver to
the Purchaser Refined Gold in an amount equal to the amount by which the
Designated Percentage of Produced Gold determined pursuant to the final
settlement with respect to such Lot exceeds the Refined Gold previously
delivered to the Purchaser in respect of such Gold Payment pursuant to Sections
2.2(a)(i), 2.2(a)(ii) or 2.2(a)(iii) above, as supported by the
documentation provided pursuant to Section 2.3, provided, that, if such
difference is negative, then the Vendor shall only be entitled to set off and
deduct such excess amount of Refined Gold from the next required deliveries by
the Vendor under this Agreement until it has been fully offset against
deliveries to the Purchaser of Refined Gold pursuant to Sections 2.2(a)(i),
2.2(a)(ii) and 2.2(a)(iii); and

 

(v)              Schedule F sets forth an
illustration of the determination of Refined Gold to be delivered to the Purchaser
in the case of a provisional Gold Payment described in Sections 2.2(a)(ii) and
2.2(a)(iii) above and the Gold Payment representing a final settlement
payment in respect of the same Lot.

 

For the avoidance of doubt, in the event that the Vendor does not Deliver
Refined Gold to the Purchaser in connection with a provisional Gold Payment
with respect to any Lot, the Vendor will effect the sale to the Purchaser of
Refined Gold with respect to such Lot as contemplated in Section 2.1(a) within
two Business Days following the date of the Gold Payment in the form of a final
settlement for such Lot.

 

(b)                                 Vendor
shall sell and deliver to the Purchaser all Refined Gold to be sold and
delivered under this Agreement by way of Delivery to the metal account or accounts
designated by the Purchaser from time to time in North America, the United
Kingdom or Switzerland or such other location as is mutually agreed by the
Parties (the “Purchaser Gold Delivery”).

 

14

 

(c)                                  Delivery
of Refined Gold to the Purchaser shall be deemed to have been made at the time
on the date of Delivery of Refined Gold in the designated metal account of the
Purchaser pursuant to paragraph (b) (the “Time of Delivery” on the “Date
of Delivery”). Title to, and risk of loss of, Refined Gold shall
pass from Vendor to the Purchaser at the Time of Delivery. All costs and
expenses pertaining to each Delivery of Refined Gold by Vendor to the Purchaser
shall be borne by Vendor.

 

(d)                                 Vendor
hereby represents and warrants to the Purchaser that, notwithstanding the
Vendor’s prior sale to Offtaker of Minerals from which the relevant Refined
Gold is derived, at each Time of Delivery (i) Vendor will be the legal and
beneficial owner of the Refined Gold that is Delivered to a metal account of
the Purchaser, (ii) Vendor will have good, valid and marketable title to
such Refined Gold, and (iii) such Refined Gold will be free and clear of
all Encumbrances.

 

(e)                                  The
Parties acknowledge that Vendor shall be entitled but shall not be obliged to
sell or deliver to the Purchaser the Refined Gold physically resulting from
gold mined, produced, extracted or otherwise recovered from the Milligan
Property, and for greater certainty, shall be entitled to sell and Deliver
Refined Gold that is otherwise obtained by the Vendor for the purpose of making
such sale and Delivery to the Purchaser.

 

2.3                               Statements

 

Vendor shall notify the Purchaser in writing of
a Purchaser Gold Delivery, no later than the Time of Delivery, by delivery of a
statement to the Purchaser that includes:

 

(a)                                  the
calculation of the number of ounces of Refined Gold credited or physically
Delivered;

 

(b)                                 the
Offtaker Documents on which the calculation is based;

 

(c)                                  the
Date of Delivery and estimated Time of Delivery;

 

(d)                                 the
Gold Purchase Price for such Refined Gold; and

 

(e)                                  the
Mineral Offtake Agreement under which such delivery was made.

 

2.4                               Gold
Purchase Price

 

The Purchaser shall pay to the Vendor a
purchase price for each ounce of Refined Gold sold and Delivered by the Vendor
to the Purchaser under this Agreement (the “Gold Purchase Price”)  equal to:

 

(a)                                  prior
to the Deposit Reduction Time, the Reference, payable by wire transfer up to
the amount of the Fixed Price; and, if such Reference Price is greater than the
Fixed Price, payable by crediting an amount equal to the difference between
such Reference Price and the Fixed Price against the Payment Deposit in order
to reduce the uncredited balance of the Payment Deposit until the uncredited
balance of the Payment Deposit has been credited and reduced to nil; and

 

15

 

(b)           from and after the
Deposit Reduction Time, the lesser of the Fixed Price and the Reference Price,
payable by wire transfer.

 

2.5        Payment

 

Payment by the
Purchaser for each Delivery of Refined Gold shall be made no later than two
Business Days after the applicable Purchaser Gold Delivery by wire transfer to
a bank account of the Vendor designated in accordance with Section 15.2.

 

2.6          Sales Tax

 

All federal, provincial, state and foreign
sales and transfer taxes, sales and use taxes, goods and services taxes,
value-added taxes, duties, fees, registration charges or other like charges (“Sales Taxes”) which are properly payable in
connection with the purchase and sale of the Refined Gold contemplated by this
Agreement shall be borne by the Party responsible for such Sales Taxes under
the Applicable Law.  Each party shall cause to be filed as required by it
under applicable law all tax returns and other documentation, at its own
expense, with respect to such Sales Taxes.

 

Article 3

DEPOSIT

 

3.1          Payment Deposit

 

The Purchaser hereby agrees to pay a cash
deposit of US$311,500,000 to be applied against the Gold Purchase Price, on and
subject to the terms of this Agreement (the “Payment
Deposit”).  The Purchaser
shall only have the right to demand refund or repayment of all or any unapplied
portion of the Payment Deposit as provided in Section 3.7 or as otherwise
specifically provided in this Agreement.

 

3.2          Initial Deposit

 

The Purchaser hereby agrees to pay
US$226,500,000 of the Payment Deposit by wire transfer to the Vendor on the
Effective Date (this portion of the Payment Deposit being the “Initial Deposit”).

 

3.3          Scheduled Deposits

 

The Purchaser hereby agrees to pay
US$85,000,000 of the Payment Deposit (this portion of the Payment Deposit being
the “Scheduled Deposits”, and each partial
payment thereof a “Scheduled Deposit”)
to the Vendor by way of cash deposits in accordance with Article 5.  Once a Scheduled Deposit has been paid, such
Scheduled Deposit shall be referred to herein as a “Paid
Scheduled Deposit.”

 

3.4          No Interest

 

No interest shall be payable on the Payment
Deposit.

 

16

 

3.5          Use of Payment Deposit

 

It is agreed and acknowledged that Thompson
Creek and the Vendor shall use the Payment Deposit as follows:

 

(a)           the Initial Deposit
will be used as a portion of the consideration payable to shareholders of
Vendor by Thompson Creek in connection with the Acquisition; and

 

(b)           the Scheduled
Deposits will be used for Vendor’s funding requirements with respect to the
Development pursuant to the Development Program.

 

3.6          Deposit Record

 

The Vendor shall, at all times, maintain a
record of the Payment Deposit under this Agreement (the “Deposit
Record”), which shall be stated in US$ and the balance thereof shall
be equal to:

 

(Initial Deposit) + (all Paid Scheduled
Deposits) – (all reductions of the Payment Deposit in accordance with Section 2.4,
3.7 or otherwise)

 

3.7          Deposit at Expiry of Initial
Term

 

Vendor shall pay any uncredited balance of the
Payment Deposit, as evidenced by the Deposit Record, by wire transfer to the
Purchaser within 45 days after the expiry of the Initial Term, and shall
provide a detailed calculation of the Deposit Record on the expiry of the
Initial Term (other than the expiry of the Term due to termination of this
Agreement under Section 12.2 or Section 13.2) unless the Vendor has
sold and Delivered to the Purchaser an amount of Refined Gold sufficient to
reduce the balance of the Deposit Record to nil as calculated in accordance with
Section 3.6.

 

Article 4

DELIVERIES

 

4.1          Deliveries of Vendor

 

The Vendor hereby agrees to deliver to the
Purchaser the following concurrent with execution and delivery of this
Agreement:

 

(a)           an executed
certificate of a senior officer of Vendor in form and substance satisfactory to
the Purchaser, acting reasonably, dated as of the Effective Date, as to: (i) resolutions
of the board of directors or other comparable authority of Vendor authorizing
the execution, delivery and performance of this Agreement, and the Security
Agreements and the transactions contemplated hereby, (ii) the names,
positions and true signatures of the persons authorized to sign this Agreement
and the Security Agreements on behalf of Vendor, and (iii) such other
matters pertaining to the transactions contemplated hereby as the Purchaser may
reasonably require;

 

(b)           as security for the
performance of its obligations to the Purchaser under this Agreement, the
executed Security Agreements in substantially the form attached 

 

17

 

as Schedules C1, C2 and C3 (the “Security Agreements”), which Security
Agreements shall have been registered, filed or recorded in all offices, and
all actions shall have been taken, that may be prudent or necessary to
preserve, protect or perfect the security interest of the Purchaser under the
Security Agreements.  Without limiting
the foregoing, the Security Agreements on the Milligan Property shall also be
registered in: (i) British Columbia’s Mineral Titles Online Registry
against each of the Mineral Claims and Mineral Leases that are part of the
Milligan Property, (ii) British Columbia’s Personal Property Registry
against all personal property of Vendor, and (iii) in the Land Title
Office with respect to any Surface Rights that are registered in the Land Title
Office from time to time, in which case the Vendor will grant to the Purchaser
a mortgage over its interest in such Surface Rights as security for the
performance of its obligations to the Purchaser under this Agreement in a form
acceptable to the Parties, acting reasonably;

 

(c)           a favourable legal
opinion, in form and substance satisfactory to the Purchaser, acting
reasonably, dated as of the Effective Date, from legal counsel to Vendor as to (i) the
legal status of Vendor, (ii) the corporate power and authority of Vendor
to execute, deliver and perform this Agreement and the Security Agreements, (iii) the
execution and delivery of this Agreement and the enforceability of this
Agreement against the Vendor, (iv) such legal opinions relating to the
security granted in favour of the Purchaser as Purchaser may reasonably
request, and (v) such other legal opinions that the Purchaser may
reasonably request; and

 

(d)           evidence of the
satisfaction and discharge of the following charges in favour of the Bank of
Montreal and related obligations of the Vendor:

 

(i)      Base Registration No. 478928E
in the British Columbia Personal Property Registry;

 

(ii)     Registration No. 123380
in the Nunavut Personal Property Registry;

 

(iii)    Registration No. 2008/07039
14865 in the Yukon Personal Property Registry; and

 

(iv)    Registration No. 625251
in the Northwest Territories Personal Property Registry.

 

4.2          Deliveries of Purchaser

 

Purchaser hereby agrees to deliver to Vendor
the following concurrent with execution and delivery of this Agreement:

 

(a)           wire transfer of
funds to or to the direction of Vendor equal to the Initial Payment Deposit;

 

(b)           a certificate of a
senior officer of the Purchaser, in form and substance satisfactory to Vendor,
acting reasonably, as to: (i) the resolutions of the board of directors of
the Purchaser, authorizing the execution, delivery and performance of this
Agreement and the transactions contemplated hereby, (ii) the names,
positions 

 

18

 

and true signatures of the persons authorized
to sign this Agreement on behalf of the Purchaser, and (iii) such other
matters pertaining to the transactions contemplated hereby as Vendor may
reasonably require; and

 

(c)           a favourable legal
opinion, in form and substance satisfactory to Vendor, acting reasonably, from
external legal counsel to the Purchaser as to (i) the legal status of the
Purchaser, (ii) the corporate power and authority of the Purchaser to
execute, deliver and perform this Agreement, (iii) the execution and
delivery of this Agreement and the enforceability of this Agreement against the
Purchaser, and (iv) such other legal opinions as the Vendor may reasonably
request.

 

Article 5

PAYMENT OF SCHEDULED DEPOSITS

 

5.1          Achievement of Deposit
Events

 

Vendor may, from time to time, demand payment
by Purchaser to Vendor of a Scheduled Deposit in accordance with the
requirements set forth in Schedule D (a “Deposit Event”)
by providing to the Purchaser and the Independent Engineer a statement
containing the following at least 10 calendar days prior to the relevant
Deposit Event:

 

(a)           the date of the Deposit
Event;

 

(b)           an accounting of the amount
of Project Costs to date contributed by each of Purchaser, Vendor, and any third
party funding the Development;

 

(c)           an estimate of the amount of
Project Costs necessary to complete the Development in accordance with the
Development Program and any modifications thereto;

 

(d)           a current calculation of the
Purchaser’s Pro Rata Share of Funding;

 

(e)           Vendor’s forecast of the total Project Costs to be used during the period
of time encompassing the corresponding Scheduled Deposit;

 

(f)            the amount of United States
dollars requested for the corresponding Scheduled Deposit;

 

(g)           the anticipated uses for the
corresponding Scheduled Deposit; and

 

(h)           the expected date of the
next ensuing Deposit Event.

 

5.2          Payment of Scheduled
Deposits

 

Subject to Section 5.3, Purchaser shall
pay the Vendor the Scheduled Deposit under a Deposit Event by wire transfer no
later than one Business Day following the date upon which the corresponding
Deposit Event occurs to a bank account of Vendor designated in accordance with Section 15.2.

 

19

 

5.3          Closing Conditions for
Payment of Scheduled Deposits

 

The obligation of the Purchaser to make a
Scheduled Deposit payment in accordance with a Deposit Event is subject to the
satisfaction of the following conditions:

 

(a)           the Vendor shall
have delivered to Purchaser the relevant statement described in Section 5.1;

 

(b)           the Vendor shall
have delivered to the Purchaser an executed certificate of a senior officer of
the Vendor certifying (and evidencing in the case of (iv) and (v) below)
that, as of the Deposit Event:

 

(i)      the representations and
warranties made by the Vendor and Thompson Creek set forth in Schedule A1 and
Schedule A2 and in the Security Agreements, remain true and correct in all
material respects on and as of such date;

 

(ii)     no Vendor Event of Default
(or an event which with notice or lapse of time or both would become a Vendor
Event of Default) has occurred and is continuing;

 

(iii)    except as otherwise
previously communicated to the Purchaser and the Independent Engineer, no
changes to the Development Program have occurred, the Development is in
accordance with the Development Program and the Vendor has not abandoned the
Milligan Project;

 

(iv)    the Vendor has obtained or
has access to sufficient financing to complete the Development (including
pursuant to any modifications to the Development Program);

 

(v)     all material Permits have
been obtained and are in good standing for the conduct of the activities
conducted in the Development Program to date and for the use of funds
contemplated by the Deposit Event, and no material Permit has been revoked or
rescinded that is necessary for the commencement of commercial production of
Minerals from the Milligan Project;

 

(vi)    no written notice of any
Encumbrance other than a Permitted Encumbrance against the Milligan Property
has been received by Vendor; and

 

(vii)   no Deposit Suspension Event
has occurred and is continuing.

 

(c)           the Purchaser has
not received from the Independent Engineer, prior to the date of the Deposit
Event, notification that (i) the Development is not in accordance with the
Development Program, (ii) the Vendor does not have sufficient Permits to
complete the proposed work program represented by the funds under the Deposit
Event or that one or more material Permits has been revoked, rescinded or is
not in good standing, or (iii) the Purchaser’s Pro Rata Share of Funding
set forth in the statement described in Section 5.1 is not correct.

 

20

 

Article 6

TERM

 

6.1          Term

 

(a)           The term of this
Agreement shall commence on the date of this Agreement and, subject to Sections
12.2, 13.2 and 6.1(b), shall continue until the date that is 50 years after the
date of this Agreement (the “Initial Term”)  and thereafter shall automatically be
extended for successive 10 year periods (each an “Additional Term”  and,
together with the Initial Term, the “Term”).

 

(b)           This Agreement may
be terminated by the Parties on mutual written consent, or as otherwise
provided in this Agreement.

 

Article 7

REPORTING; BOOKS AND RECORDS; INSPECTIONS

 

7.1          Monthly Reporting

 

During the full period in which Development
expenditures are being made, the Vendor shall deliver to the Purchaser a
Monthly Construction Report on or before the 30th calendar day
after the end of each calendar month. 
Commencing with the month in which Minerals are first shipped to an
Offtaker, the Vendor shall deliver to the Purchaser a Monthly Report on or
before the 30th calendar day after the end of each calendar
month.

 

7.2          Annual Reporting

 

Within 60 calendar days after the end of each
calendar year, Vendor will deliver to the Purchaser an annual report that
addresses the following for the Milligan Project:

 

(a)           a statement setting
out the most recent estimated gold reserves and resources for the Milligan
Property for such calendar year and the assumptions used, including cut-off
grade, metal prices and metal recoveries;

 

(b)           a budget, mine
operating plan and production forecast of the number of ounces of Produced Gold
expected to be produced over the next calendar year, including:

 

(i)      tonnes or tons, types and
gold grade of ore to be mined;

 

(ii)     types, tonnes or tons and
gold grade of ore to be stockpiled; and

 

(iii)    a forecast as to the amount
of Minerals expected to be produced over the next year.

 

7.3          Additional Reporting
Requirements

 

(a)           The Vendor shall
provide to Purchaser a copy of any life of mine plan or similar comprehensive
operating plan produced by or on behalf of Vendor detailing the production and
development plan for the Milligan Property reserves and resource, 

 

21

 

including all supportive narrative,
assumptions and strategies, and any update thereto, within 15 days after any
life of mine plan or update is prepared.

 

(b)           The Vendor or its Affiliates
shall provide the Purchaser with copies of reserve and resource reports on the
Milligan Property from time to time as they become available.

 

(c)           To the extent not otherwise
required to be delivered herein, the Vendor shall promptly provide the
Purchaser with all feasibility studies and all geological, reserve, engineering
and metallurgical and related data and evaluations of the Milligan Project
prepared by or for the benefit of the Vendor or otherwise in the possession and
control of Vendor which would reasonably be expected to be material to the
Purchaser’s interest in the Milligan Project (the “Project Studies”).

 

(d)           The Vendor shall provide to
the Purchaser a statement setting out the Deposit Record, including the
outstanding balance owing under the Deposit Record, as at June 30 and as
at December 31 of each calendar year, in each case within 30 days
following such date (a “Deposit Record Report”).

 

7.4          Books and Records

 

(a)           Vendor and its
Affiliates shall, in all material respects, keep true, complete and accurate
books and records of all of its operations and activities with respect to the
Milligan Project, including the mining and production of Minerals and the
treatment, processing, milling, concentrating, transportation and sale of
Minerals. Vendor and its Affiliates shall permit the Purchaser and its
authorized representatives and agents to perform audits no more than once each
year and additional limited reviews and examinations of its books and records
and other information relevant to the production, delivery and determination of
Produced Gold and Refined Gold from time to time at reasonable times, all at
the Purchaser’s sole risk and expense and upon reasonable notice to confirm
compliance with the terms of this Agreement. The Purchaser shall diligently complete
any audit or other reviews and examination permitted hereunder.

 

(b)           Vendor shall use
reasonable commercial efforts to provide in the terms of relevant Mineral
Offtake Agreements a right of Purchaser to have access to and review relevant
testing, documents and data of Offtakers and otherwise derived pursuant to
relevant Mineral Offtake Agreements in respect of smelting, refining and
beneficiation of Minerals.

 

7.5          Inspections

 

Subject at all times to the workplace rules and
supervision of Vendor, and provided any rights of access do not interfere with
any exploration, development, mining or processing work conducted on the
Milligan Property, Vendor shall grant to the Purchaser and its representatives
and agents, including, without limitation, the Independent Engineer, at
reasonable times and upon reasonable notice and at the Purchaser’s sole risk
and, subject to Section 15.1, expense, the right to access and inspect the
Milligan Property and to monitor Vendor’s mining and processing operations on
the Milligan Project.  The Vendor shall
not be responsible for injuries to or damages suffered by 

 

22

 

the Purchaser and its representatives and
agents, including, without limitation the Independent Engineer, while visiting
the Milligan Property unless such injuries or damages are caused or contributed
to by the gross negligence or wilful misconduct of the Vendor or its
representatives. The Purchaser may avail itself of such right of access a
maximum of twice per calendar year, other than as required by the Independent
Engineer.  To the extent permitted under
Mineral Offtake Agreements, Purchaser and its representatives and agents,
including without limitation, the Independent Engineer, shall also have the
right to be present or to be represented at any smelter, refinery or other
processing facility at which the weighing, sampling and assaying of metals and
the calculation of the Refined Gold will be determined (i) at any time
that the Vendor or any Affiliate, its representatives or agents is present,
provided, that the Vendor or any such Affiliate shall give the Purchaser
reasonable advanced notice of any such visit, and (ii) at such other time
as the Purchaser may request, provided, that the Purchaser shall give the
Vendor reasonable advanced notice of the date on which Purchaser intends to
conduct such visit.  Vendor shall grant
to the Independent Engineer such access to the Milligan Project and its site,
facilities and employees, and to construction and other contractors at such
times and on such notice as the Independent Engineer considers reasonable for
the performance of the Independent Engineer’s duties with respect to this
Agreement.

 

Article 8

COVENANTS

 

8.1          Conduct of Operations

 

(a)           All decisions
regarding the Milligan Project, including all decisions concerning the methods,
extent, times, procedures and techniques of any (i) exploration,
development and mining related to the Milligan Project, including spending on
capital expenditures, (ii) leaching, milling, processing or extraction, (iii) materials
to be introduced on or to the Milligan Project, and (iv) except as
provided herein, the sales of Minerals and terms thereof shall be made by
Vendor, in its sole discretion. Without limiting the generality of the
foregoing, Vendor shall be permitted to amend the mine plan, process design
and/or plant and equipment for the Milligan Project at any time and from time
to time in its sole discretion, provided that it is acting in a commercially
reasonable manner and not inconsistent with accepted Canadian mining practice.

 

(b)           Notwithstanding Section 8.1(a),
Vendor agrees that it shall carry out and perform all mining operations and
activities pertaining to or in respect of the Milligan Project in a
commercially reasonable manner and in accordance with Applicable Laws, all
applicable licences, Permits and other authorizations and accepted mining,
processing, engineering and environmental practices prevailing in the mining
industry.

 

(c)           Notwithstanding Section 8.1(a),
Vendor and its Affiliates shall operate the Milligan Project as though the
Vendor had a full economic interest in all the gold produced from the Milligan
Property and shall not consider the economic impact of the Agreement in its
reserves and resources calculations or mine planning provided, that the Vendor
may seek the Purchaser’s written consent (which consent may be withheld in the
Purchaser’s sole discretion) to consider the economic impact of this Agreement
with respect to a material expansion of the 

 

23

 

Milligan Project or the reprocessing of tailings, waste rock or other waste products.

 

(d)           Vendor shall at all
times during the Term do all things necessary to maintain the Milligan Property
and, subject to Sections 9.1 (a)(ii) and (d)(ii) and 10.3(b),
maintain the related Mineral Claims and Mining Leases in good standing,
including paying all taxes owing in respect thereof.

 

(e)           Notwithstanding
anything else contained in this Section 8.1, nothing in this Agreement
shall require Vendor or any of its Affiliates to construct, operate or continue
the Milligan Project or to explore or develop the Milligan Project.

 

8.2          Preservation of Corporate
Existence

 

Vendor shall at all times during the term of
this Agreement do and cause to be done all things necessary or advisable to
maintain its corporate existence.

 

8.3          Processing/Commingling

 

The Vendor may, and may cause each of its
Affiliates to, process Other Minerals through the Milligan Facilities in
priority to, or commingle Other Minerals with, Minerals mined, produced,
extracted or otherwise recovered from the Milligan Property, provided: (i) Vendor
(or such Affiliate) has adopted and employs best industry practices and
procedures for weighing, determining moisture content, sampling and assaying
and determining recovery factors (a “Commingling Plan”),
(ii) the Purchaser has approved the Commingling Plan, such approval not to
be unreasonably withheld, and (iii) Vendor or such Affiliate keeps records
required by the Commingling Plan.

 

8.4          Mineral Offtake Agreements

 

(a)           During the Term,
the Vendor shall deliver, and (subject to Section 2.1(a)) Vendor shall
sell, all Minerals that contain Produced Gold to an Offtaker pursuant to a
Mineral Offtake Agreement, in such quantity, description and amounts and at
such times and places as required under and in accordance with a Mineral
Offtake Agreement.

 

(b)           Vendor shall take
commercially reasonable steps to ensure that it has sufficient Mineral Offtake
Agreements to efficiently recover gold as and when Minerals are produced from
the Milligan Project.  Vendor shall use
commercially reasonable efforts to cause the market price for determination of
any and all Refined Gold (including under provisional payments) sold by Vendor
under each Mineral Offtake Agreement to be based on an average set by the
London Bullion Market Association (or any successor thereto) or such other
benchmark on such gold market as the Parties may mutually agree.  Vendor shall provide the Purchaser with a final
signed copy of any Mineral Offtake Agreement within ten Business Days after the
execution thereof.

 

(c)           Vendor shall take
commercially reasonable steps to enforce its rights and remedies under each
Mineral Offtake Agreement with respect to any breaches of the terms thereof
relating to the timing and amount of payments for gold to be 

 

24

 

made thereunder. Vendor shall notify the
Purchaser in writing when any dispute arising out of or in connection with any
such Mineral Offtake Agreement is commenced in respect of Minerals and shall
provide the Purchaser with timely updates of the status of any such dispute and
the final decision and award of the court or arbitration panel with respect to
such dispute, as the case may be.  Vendor
shall notify the Purchaser in writing upon the occurrence of any force majeure
or similar provision under any Mineral Offtake Agreement and shall provide the
Purchaser with timely updates of the status thereof.

 

(d)           The Vendor shall
use its commercially reasonable efforts to cause each Mineral Offtake Agreement
to provide for provisional Gold Payments in the form of Refined Gold, which for
purposes of this Section 8.4(d) does not include paying to an
Offtaker greater consideration for its services than would be payable for a
provisional payment that was in the form of cash.

 

8.5          Insurance

 

(a)           Vendor shall
maintain with reputable insurance companies insurance with respect to the
Milligan Project and for the construction, development and operations on and in
respect of the Milligan Project against such casualties and contingencies and
of such types and in such amounts as is customary in the Canadian mining
industry for similar operations.

 

(b)           Vendor shall ensure
that each shipment of Produced Gold is adequately insured, in such amounts and
with such coverage as is customary in the Canadian mining industry, until the
time that risk of loss and damage for such Produced Gold is transferred to the
Offtaker pursuant to a Mineral Offtake Agreement.

 

(c)           Where the Vendor or
its Affiliate receives payment under any insurance policy in respect of a
shipment of Produced Gold that is lost or damaged after leaving the Milligan
Project and before the risk of loss or damage is transferred to the Offtaker,
the Vendor shall sell and deliver to the Purchaser (without duplication to the
extent previously sold and delivered to the Purchaser by the Vendor) pursuant
to Sections 2.1 and 2.4, an amount of Refined Gold having a value equal to 25%
of the amount of the insurance payment received by the Vendor and its
Affiliates in respect of Produced Gold in such shipment.

 

8.6                               Permitted
Debt Financings and Permitted Encumbrances

 

[Provisions below (and conforming definitions) have
not been settled/agreed to by parties]  

 

[Provisions on timing of
release of security to be settled/agreed to by parties]

 

(a)                                  [The
Vendor agrees that, with respect to any secured Project Financing that the
Vendor arranges for the Milligan Project, the Project Financing shall provide
that the Project Lenders (or any agent or trustee that holds their Project
Security) will enter into an intercreditor agreement with the Purchaser and
Vendor on terms acceptable to each of the parties thereto, acting reasonably,
under which, inter alia, the Project Lenders and the Purchaser and the other
parties thereto would agree that:

 

(i)                 Vendor’s obligation to deliver the
Designated Percentage of Produced Gold to the Purchaser against payment of the
Gold Purchase Price (and subject to Vendor’s right to credit the relevant
portion of the Gold Purchase Price against the Payment Deposit) rank ahead of
any obligation to the Project Lenders;

 

(ii)             Subject to the foregoing, the
Purchaser would subordinate the Purchaser’s security interest under the
Security Agreements to the Project Security for the Project Financing;

 

(iii)         the Project Lenders’ rights of
realization and sale in a default situation would be subject to the obligation
to make any transferee of the Milligan Project or any portion of the Milligan
Project (including the Project Lenders if they take title to the Milligan
Project or any such portion) acknowledge and agree directly with the Purchaser
to assume jointly and severally with any other holders of an interest in the
Milligan Project, the rights and obligations of the Vendor under this
Agreement; and

 

(iv)            other reasonable terms and
provisions, including any relating to mutual cure rights, notices, and other
remedies, would be included.

 

(b)                                  Financing
that the Vendor arranges for assets (including without limitation,  mobile mining equipment, motor vehicles and
office equipment) subject to operating leases or similar financing arrangements
shall also be entitled to priority over the Security Agreement and there shall
be no requirement to enter into an intercreditor agreement with the Purchaser.

 

(c)                                  The
Purchaser acknowledges that the Vendor or its Affiliates may from time to time
enter into commitments for certain Corporate Financings.

 

(d)                                  In
connection in any commitment for Corporate Financing, the Vendor covenants and
agrees to negotiate in good faith with any Corporate Lender and the Purchaser
to enter into an intercreditor agreement on terms acceptable to each of the
parties thereto, acting reasonably, under which, 

 

25

 

inter alia, the Corporate
Lenders and the Purchaser and the other parties thereto would agree that:

 

(i)                 Vendor’s obligation to deliver the
Designated Percentage of Produced Gold to the Purchaser against payment of the
Gold Purchase Price (and subject to Vendor’s right to credit the relevant
portion of the Gold Purchase Price against the Payment Deposit) rank ahead of
any obligation to the Corporate Lenders;

 

(ii)             the Corporate Lenders’ rights of
realization and sale in a default situation would be subject to the obligation
to make any transferee of the Milligan Project or any portion of the Milligan
Project (including the Corporate Lenders if they take title to the Milligan
Project or any such portion) acknowledge and agree directly with the Purchaser
to assume jointly and severally with any other holders of an interest in the
Milligan Project, the rights and obligations of the Vendor under this
Agreement; and

 

(iii)         other reasonable terms and
provisions, including any relating to mutual cure rights, notices, and other
remedies, would be included.

 

(e)                                  The security interests referred to in
this Section 8.6 which are registered in the (i) Personal Property
Security Registry; (ii) British Columbia’s Mineral Titles Online Registry;
and (iii) in the Land Title Office with respect to any Surface Rights that
are registered in the Land Title Office from time to time shall be deemed to be
Permitted Encumbrances.

 

(f)                                    Purchaser shall consider, but not be obligated hereby
to, subordinate Purchaser’s security interests under the Security
Agreements to the Corporate Lender Security for the Corporate Financing.]

 

8.7                               Confidentiality

 

(a)                                  Each
Party (a “Receiving Party”) agrees
that it shall maintain as confidential and shall not disclose, and shall cause
its Affiliates, employees, officers, directors, advisors, agents and
representatives to maintain as confidential and not to disclose, the terms
contained in this Agreement and all information (whether written, oral or in
electronic format) received or reviewed by it as a result of or in connection
with this Agreement, including any draft or final technical reports provided
under Section 7.3, any Mineral Offtake Agreement provided under Section 8.4(a) and
the information received by it pursuant to the Confidentiality Agreement (“Confidential Information”), provided that a
Receiving Party may disclose Confidential Information in the following
circumstances:

 

(i)            to its auditor, legal
counsel, lenders, brokers, underwriters and investment bankers and to persons
with which it is considering or intends to enter into a transaction for which
such Confidential Information would be relevant, provided that such persons are
advised of the confidential nature of the confidential information, undertake
to maintain the confidentiality of it 

 

26

 

and are strictly limited in their use of the
confidential information to those purposes necessary for such persons to
perform the services for which they were, or are proposed to be, retained by the
Receiving Party or to consider or effect the applicable transaction, as
applicable;

 

(ii)           subject to Section 8.6(c) and
17.6, where that disclosure is necessary to comply, in a Party’s reasonable
judgment, with Applicable Laws, including rules and regulations
promulgated by the U.S. Securities and Exchange Commission (the “SEC”), the Canadian Securities
Administrators (the “CSA”), a
provincial securities commission, court order or the policies of any relevant
stock exchange, provided that such disclosure is limited to only that
Confidential Information so required to be disclosed and that the Receiving
Party will have evaluated the availability of any laws, rules, regulations or
contractual rights as to disclosure on a confidential basis to which it may be
entitled and sought such treatment for portions of such documents it reasonably
believes are eligible for such treatment;

 

(iii)          for the purposes of the
preparation of an Auditor’s Report under Section 15.4 or any arbitration
proceeding commenced under Section 15.5;

 

(iv)          where such information is
already widely known by the public other than by a breach of the
confidentiality terms of this Agreement or is known by the Receiving Party
prior to the entry into of this Agreement and the Confidentiality Agreement or
obtained independently of this Agreement and the disclosure of such information
would not breach any other confidentiality obligations;

 

(v)           with the consent of the
disclosing Party; and

 

(vi)          to those of its and its
Affiliates’ directors, officers, employees, representatives and agents who need
to have knowledge of the Confidential Information;

 

(b)                                 Each
Party shall ensure that its and its Affiliates’ employees, directors, officers,
representatives and agents and those persons listed in Section 8.6(a)(i) are
made aware of this Section 8.6 and the Confidentiality Agreement and
comply with the provisions hereof and thereof. Each Party shall be liable to
the other Party for any improper use or disclosure of such terms or information
by such persons.

 

(c)                                  The
Vendor hereby acknowledges that the Purchaser will be required to file this
Agreement on EDGAR and SEDAR in order to comply with Applicable Laws, including
the rules and regulations of the SEC and the CSA.  Purchaser hereby agrees that, prior to such
filing, it shall consult in good faith with the Vendor regarding redactions, if
any, that are permitted to be made to this Agreement as filed on EDGAR pursuant
to Applicable Law, including the rules and regulations of the SEC;
provided, however, that the final determination of such redactions, if any,
shall be made in the Purchaser’s sole discretion.  If in order to comply with 

 

27

 

Applicable Laws,
including rules or regulations promulgated by the CSA, the Vendor is
required to file this Agreement on SEDAR, the Vendor shall notify the Purchaser
of such requirement at least two Business Days prior to the last date to file
on SEDAR, and the Parties shall consult in good faith with the Vendor regarding
redactions, if any, that are permitted to be made to this Agreement as filed on
SEDAR pursuant to Applicable Law, including the rules and regulations of
the CSA; provided, however, that the final determination of such redactions, if
any, shall be made in the Vendor’s sole discretion.

 

(d)                                 Vendor
and the Purchaser will consult with each other before issuing any press release
concerning the execution of this Agreement or otherwise making any public
disclosure concerning the execution of this Agreement and shall not issue any
such press release or make any such public disclosure before receiving the
consent of the other party.  Nothing in
this Section 8.6(d) prohibits any party from making a press release
or other disclosure that is, in a Party’s reasonable judgement, required by
Applicable Laws or by the policies of any stock exchange if the party making
the disclosure has first used its commercially reasonable efforts to consult
the other party with respect to the timing and content thereof.

 

8.8                               Compliance
with Law

 

(a)                                  The Vendor shall materially
comply with all Applicable Laws relating to the Vendor’s operations on or with
respect to the Milligan Property, including but not limited to Environmental
Laws; provided, however, the Vendor shall have the right to contest enforcement
actions and any allegations of infringement of the same in its discretion.  The Vendor shall timely and fully perform in
all material respects all environmental protection and reclamation activities
required pursuant to Applicable Laws, including but not limited to
Environmental Laws, on or with respect to the Milligan Property

 

(b)                                 Each of the Parties agrees
that it will comply with the Corruption of Foreign
Public Officials Act (Canada) in connection with its dealings
relating to this Agreement and the Milligan Project.

 

8.9                               Unprocessed
Ore

 

The Vendor hereby agrees
that it shall not (i) sell unprocessed ore from the Milligan Property, or (ii) enter
into any agreement to toll process ores at facilities owned by third parties
(other than Affiliates of the Vendor), in each case without the prior written
consent of the Purchaser, which consent may not be unreasonably withheld.

 

Article 9

RIGHT OF FIRST OFFER

 

9.1                               Right of
First Offer on Gold Interest

 

(a)                                  Subject
to Section 10.4, if

 

(i)            at any time and from time to
time, Vendor or any of its Affiliates wishes to offer for sale to any third
party or, following an offer by a third party to 

 

28

 

purchase (A) a gold royalty on production from
the Milligan Property, (B) an amount of gold based on production from any
portion of the Milligan Property, or (C) any participating interest in
gold based on production from the Milligan Property, or

 

(ii)           the Vendor wishes to
terminate or not renew a Mineral Claim or Mining Lease from any portion of the
Milligan Property,

 

(collectively,
a “Milligan Gold Right”)

 

then
the Vendor shall, by notice in writing to the Purchaser, first offer to sell
such Milligan Gold Right to the Purchaser at the price and upon substantially
the terms that the Vendor proposes to offer or accept from a third party (which
offer the Vendor shall promptly provide to the Purchaser) (the “Vendor Offer”). Notwithstanding anything to
the contrary herein, if the Milligan Gold Right represents less than 25% of the
fair market value of the assets the Vendor wishes to offer for sale to a third
party, then this Section 9.1(a) shall not apply to such offer to sell
to a third party

 

(b)                                 Upon
receipt of a Vendor Offer, the Vendor and the Purchaser shall negotiate in good
faith for a period of up to 45 days commencing on the date of delivery by the
Vendor to the Purchaser of the Vendor Offer (the “Negotiation Period”) the definitive terms of an agreement for
the Milligan Gold Right which is the subject of the Vendor Offer (the “Definitive Agreement”).

 

(c)                                  If,
during the Negotiation Period, the Vendor and the Purchaser agree on the terms
of the Definitive Agreement, then the Vendor and the Purchaser shall enter into
the Definitive Agreement and proceed to close the transaction as soon as
commercially reasonable thereafter pursuant to the terms of such Definitive
Agreement.

 

(d)                                 If,
during the Negotiation Period, the Vendor and the Purchaser are unable to agree
on the terms of, and enter into, the Definitive Agreement, then, on the earlier
of (i) the last day of the Negotiation Period, and (ii) the day on
which the Vendor and the Purchaser agree that negotiations have ended,

 

(i)            the Vendor may commence
negotiations with a third party for the sale of the Milligan Gold Right which
is the subject of the Vendor Offer, and, either directly or through an
Affiliate, sell the Milligan Gold Right that is the subject of the Vendor Offer
to a third party, provided that the terms of sale are no more favourable to
such third party than those offered to the Purchaser in the Vendor Offer, or

 

(ii)           in the case of the
termination or non-renewal of a Mineral Claim or Mining Lease, the Vendor may
terminate or choose not to renew such Mineral Claim or Mining Lease.

 

(e)                                  For
the avoidance of doubt, this Section 9.1 shall not apply to any (i) gold
spot sales, gold forward sales or options or other gold sales or gold loans to
a financial institution or bullion bank, (ii) internal transfers among
Vendor and its Affiliates, 

 

29

 

provided that any such
transfer complies with Section 8.4(a), (iii) a sale of all or
substantially all of the Milligan Property or of the Milligan Project or a sale
of substantially all of the assets of the Vendor, (iv) the sale of an
equity interest in the Vendor, or (v) any Mineral Offtake Agreement.

 

Article 10

TRANSFERS AND ASSIGNMENTS

 

10.1                        General.  No Party may sell,
transfer, assign, convey, grant any right, title or interest in or to, or
otherwise dispose of, this Agreement, in whole or in part, or its rights under
this Agreement, in whole or in part, (and Vendor may not effectuate such an
assignment under the Security Agreements) and Thompson Creek and Vendor may not
effectuate a Transfer (any such assignment or Transfer referred to herein as an
“Assignment”) except to the extent
such Assignment complies with this Article 10, including the conditions
set forth in this Section 10.1.  Any
Party making an Assignment hereunder shall be referred to as an “Assignor”.

 

(a)                                  Any
assignee pursuant to an Assignment (an “Assignee”)
must execute an instrument in writing by which it expressly assumes any and all
of the obligations of the Assignor pursuant to the Assignment, and the failure
of any such Assignee to execute such a written instrument shall mean that the
Assignment is null and void.

 

(b)                                 Any
Assignor must provide all other Parties hereunder no less than twenty (20)
Business Days advance written notice of a proposed Assignment.

 

(c)                                  Upon
completion of an Assignment by an Assignor in compliance with this Article 10,
(i) if the Assignor is either the Vendor or Thompson Creek, then the
Purchaser and Royal Gold shall release such Assignor from its obligations under
this Agreement or the Security Agreements (in the case of an Assignment by the
Vendor under the Security Agreements), and (ii) if the Assignor is either
the Purchaser or Royal Gold, then the Vendor and Thompson Creek shall release
such Assignor from all further obligations under this Agreement, in each case in
a form reasonably acceptable to the Assignor.

 

(d)                                 No
Party hereunder may complete an Assignment while it is in breach or default of
any term, condition or obligation under this Agreement or the Security
Agreements.

 

(e)                                  No
Party hereunder may make an Assignment to a Restricted Person.

 

10.2                        Transfers
to Affiliates.  Subject
to Section 10.1 and notwithstanding Sections 10.5 or 10.6,  either Vendor or Purchaser may from time
to time complete an Assignment to an Affiliate.

 

10.3                        Transfers
of the Milligan Project

 

(a)           Subject to Sections 10.1,
10.2 and 10.4(b), (i) the Vendor may sell, transfer, assign, convey, grant
any right, title or interest in or to, or otherwise dispose of, all or any part
of the Milligan Project, and (ii) Thompson Creek or Vendor may 

 

30

 

sell, transfer, assign,
grant any right, title or interest in or to, or otherwise dispose of any equity
interest in the Vendor (each of clauses (i) and (ii), a “Transfer”), unless Purchaser demonstrates to
Vendor, acting reasonably, that at the time of the Transfer the transferee does
not have sufficient financial resources and operational expertise to continue developing and operating
the Milligan Project in a manner that provides reasonable assurance that the
Development will be completed in accordance with the Development Program and,
after Development, operate the Milligan Project in accordance with Section 8.1(b).

 

(b)                                 Subject
to Section 9.1, the Vendor may relinquish, surrender or terminate all or
any part of any Mineral Claims or Mining Leases constituting the Milligan
Project if Vendor reasonably determines that the cost of maintaining such
relinquished, surrendered or terminated Mineral Claims or Mining Leases is not
justified.  If Vendor acquires or
reacquires any Mineral Claims or Mining Leases that cover or relate to any
previously released portion of the Milligan Project, this Agreement shall apply
fully to such acquired or reacquired portion.

 

(c)                                  Notwithstanding
Section 10.3(a) above, the Vendor may enter into a joint venture with
another person or persons with respect to the Milligan Project provided that:

 

(i)            Vendor retains at least a
50% undivided interest in the Milligan Project; Vendor is at all times the
operator of the Milligan Project; and each joint venture participant agrees in
a document, or documents, acceptable to the Purchaser, acting reasonably, with
Vendor, the Purchaser and any other joint venture participant to assume on a
joint and several basis with the Vendor all of the obligations and duties under
this Agreement and to acknowledge and assume the obligations under the Security
Agreements; and

 

(ii)           all filings have been made
and all other actions have been taken that are required in order for the
Purchaser to continue at all times following such transfer to have a valid and
perfected security interest in the Milligan Property and the Produced Gold.

 

10.4                        Exceptions
Based on Intercreditor Agreements

 

(a)                                  The rights of the
Purchaser pursuant to Section 9.1 shall be subject to the provisions of
any intercreditor agreement pursuant to Section 8.6 and shall not
terminate upon a realization by the Project Lenders, if applicable.

 

(b)                                 The restrictions on
Assignment under this Article 10 shall not apply to any grant of an
Encumbrance on all or any portion of the Milligan Project that is permitted
under Section 8.6.

 

(c)                                  The restrictions on
Assignment under this Article 10 shall apply to any sale, transfer,
assignment, conveyance, grant of any right, title or interest in or to or other
disposition of all or any portion of the Milligan Project in connection with or
resulting from a realization by the Project Lenders, if applicable, which
realization shall be subject to the provisions of any intercreditor agreement
made pursuant to Section 8.6.

 

31

 

10.5                        Assignment
by Purchaser Group

 

Subject to Sections 10.1 and 10.2, until such time
as all of the Scheduled Deposits have been paid to Vendor, neither Purchaser
nor Royal Gold shall make an Assignment except with the prior written consent
of Vendor, such consent not to be unreasonably withheld.  Thereafter, Purchaser and Royal Gold may make
an Assignment without the consent of Vendor.

 

10.6                        Assignment
by Vendor Group

 

Subject to Sections
10.1 and 10.2, neither the Vendor nor Thompson Creek shall make an
Assignment in respect of this Agreement or the Security Agreements (in the case
of the Vendor) except to the extent such Assignment is
concurrent with a Transfer or otherwise with the prior written consent of the
Purchaser, such consent not to be unreasonably withheld.

 

Article 11

REPRESENTATIONS AND WARRANTIES

 

11.1                        Representations
and Warranties of Vendor

 

Vendor, acknowledging that the Purchaser and
Royal Gold are entering into this Agreement in reliance thereon, hereby makes
the representations and warranties set forth in Schedule A1 to the Purchaser
and Royal Gold on and as of the date of this Agreement and on and as of any
other date required pursuant to this Agreement.

 

11.2                        Representations
and Warranties of Thompson Creek

 

Thompson Creek, acknowledging that the
Purchaser and Royal Gold are entering into this Agreement in reliance thereon,
hereby makes the representations and warranties set forth in Schedule A2 to the
Purchaser and Royal Gold on and as of the date of this Agreement and on and as
of any other date required pursuant to this Agreement.

 

11.3                        Representations
and Warranties of the Purchaser

 

The Purchaser, acknowledging that Vendor and
Thompson Creek are entering into this Agreement in reliance thereon, hereby
makes the representations and warranties set forth in Schedule A3 to Vendor and
Thompson Creek on and as of the date of this Agreement.

 

11.4                        Representations
and Warranties of Royal Gold

 

Royal Gold, acknowledging that Vendor and
Thompson Creek are entering into this Agreement in reliance thereon, hereby
makes the representations and warranties set forth in Schedule A4 to Vendor and
Thompson Creek on and as of the date of this Agreement.

 

11.5                        Survival
of Representations and Warranties

 

The representations and warranties set forth in
Schedules A1, A2, A3 and A4 shall survive the execution and delivery of this
Agreement for a term of five years following the payment of the final Scheduled
Deposit.

 

32

 

11.6                        Knowledge

 

Where any representation or warranty contained
in this Agreement is expressly qualified by reference to the “knowledge” of
Vendor to refer to the actual knowledge of any of the Chief Executive, Chief
Financial and Chief Operating Officers of Thompson Creek.(3)

 

Article 12

VENDOR EVENTS OF DEFAULT

 

12.1                        Vendor
Events of Default

 

Each of the following events or circumstances
constitutes an event of default by Vendor (each, a “Vendor Event
of Default”):

 

(a)                                  Vendor
fails to sell and deliver Refined Gold to the Purchaser on the terms and
conditions set forth in this Agreement within ten Business Days after receipt
of notice from the Purchaser notifying Vendor of such default;

 

(b)                                 other
than as provided in Section 12.1(a), Vendor is in breach or default of any
terms or conditions, or any of its covenants or obligations, set forth in this
Agreement or the Security Agreements in any material respect, which is
incapable of being cured, or, if any such term, condition, covenant or obligation
is capable of being cured, such breach or default is not remedied within a
period of 30 days following delivery by the Purchaser to Vendor of written
notice of such breach or default, or such longer period of time as the
Purchaser may determine in its sole discretion;

 

(c)                                  the
Vendor is in breach of Article 10;

 

(d)                                 if,
prior to the Deposit Reduction Time, Vendor or any of its Affiliates defaults
under any indebtedness and such default is not remedied within the cure period
permitted under such indebtedness and materially adversely affects the
financial condition of Vendor such that it impairs its ownership of the
Milligan Project or its ability to operate the Milligan Project in the ordinary
course; or

 

(e)                                  upon
the occurrence of an Insolvency Event affecting Vendor.

 

12.2                        Remedies

 

(a)                                  If
a Vendor Event of Default occurs and is continuing, the Purchaser shall have
the right, upon written notice to Vendor, at its option, and in addition to and
not in substitution for any other remedies available to it at law or in equity,
to terminate this Agreement and demand from Vendor on 90 days notice the
repayment of the uncredited balance of the Payment Deposit, as evidenced by the
Deposit Record, without interest.

 

(3)  Potentially, officers of
Vendor to be added.

 

33

 

(b)                                 For
greater certainty, if the Purchaser does not exercise its right under Section 12.2(a),
the obligation of Vendor or any successor on a realization hereunder shall
continue in full force and effect.

 

Article 13

PURCHASER EVENTS OF DEFAULT

 

13.1                        Purchaser
Events of Default

 

Each of the following events or circumstances
constitutes an event of default by the Purchaser (each, a “Purchaser
Event of Default”):

 

(a)                                  the
Purchaser fails to pay for Refined Gold delivered to the Purchaser in
accordance with Section 2.4 within 10 days of receipt of notice from
Vendor notifying the Purchaser of such default;

 

(b)                                 subject
to satisfaction of the conditions set forth in Section 5.3 and Schedule D,
the Purchaser fails to pay any portion of the Payment Deposit to Vendor, within
10 days of receipt of notice from Vendor notifying the Purchaser of such
default;

 

(c)                                  the
Purchaser is in breach of Article 10;

 

(d)                                 the
Purchaser is in breach or default of any of the terms or conditions, or any of
its covenants or obligations, set forth in this Agreement in any material
respect (other than a breach or default of the covenants or obligations
referenced in Sections 13.1(a) and 13.1(b) above), which is incapable
of being cured, or, if any such term, condition, covenant or obligation is
capable of being cured, such breach or default is not remedied within a period
of 30 days following delivery by the Vendor to Purchaser of written notice of
such breach or default, or such longer period of time as the Vendor may
determine in its sole discretion; or

 

(e)                                  upon
the occurrence of an Insolvency Event affecting Purchaser.

 

13.2                        Remedies

 

In addition to Vendor’s rights and remedies
available to it at law or in equity, if a Purchaser Event of Default described
in Sections 13.1(a), 13.1(b) or 13.1(c) occurs and is continuing,
Vendor shall have the right, upon written notice to the Purchaser, to suspend
its obligations under this Agreement; provided, however, that those obligations
that existed prior to the date of such written notice and such other provisions
of this Agreement as are required to give effect thereto, shall not be
suspended and provided that, if suspension is as a result of a Purchaser Event
of Default for a breach of Article 10, the provisions of Article 7
shall also be suspended and Vendor shall not be obligated to sell or deliver
any Refined Gold to the Purchaser during such suspension.  If the Purchaser cures the Purchaser Event of
Default in full within 60 days, then Vendor’s obligations under this Agreement
shall recommence as of the date the Purchaser cures the Purchaser Event of
Default in full. If the Purchaser fails to cure the Purchaser Event of Default
described in Sections 13.1(a) or 13.1(b) in full within 60 days then
Vendor may elect at any time thereafter to suspend its obligations to deliver
Refined Gold under this Agreement for the remainder of the Term of the
Agreement, and thereupon the Purchaser shall only have the right or conversely,
Vendor shall only have the obligation, to refund the uncredited portion of the 

 

34

 

Payment Deposit, as evidenced by the Deposit
Record, on the Default Deposit Reduction Date. 
In addition, Purchaser shall indemnify Vendor, and save it harmless, on
an after-tax basis, from and against any tax liability of Vendor to the extent
that it arises (i) as a consequence of Vendor electing to suspend its
obligations to deliver Refined Gold for the reminder of the Term of the
Agreement, and (ii) in the taxation year of Vendor in which such
suspension occurs.  If a Purchaser Event
of Default under Sections 13.1(d) and 13.1(e) has occurred and
is continuing, then Vendor shall have no right to terminate this Agreement, but
it shall be entitled to all other remedies available to it at law or in equity.

 

Article 14

INDEMNITIES

 

14.1                        Indemnity
of Purchaser

 

Subject to Section 14.4, the Vendor agrees
to indemnify the Purchaser from and against, and to hold the Purchaser harmless
from any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, claims, expenses or disbursements of any kind
whatsoever (collectively “Losses”) which
may at any time be imposed on, incurred by or asserted against the Purchaser in
any way to the extent relating to or arising out of (A) any breach by the
Vendor or Thompson Creek or any misrepresentation or inaccuracy of any
representation or warranty of the Vendor or Thompson Creek contained in this
Agreement, including without limitation the representations and warranties set
forth on Schedules A1 and A2 hereto, or in any document, instrument or
agreement delivered pursuant hereto; (B) any breach, including breach due
to non-performance, by the Vendor or Thompson Creek of any covenant or
agreement to be performed by the Vendor or Thompson Creek contained in this
Agreement or in any document, instrument or agreement delivered pursuant
hereto.

 

14.2                        Indemnity
of Vendor

 

Subject to Section 14.4, the Purchaser
agrees to indemnify the Vendor from and against, and to hold the Vendor
harmless from, any and all Losses which may at any time be imposed on, incurred
by or asserted against the Vendor in any way to the extent relating to or
arising out of (A) any breach by the Purchaser or Royal Gold or any
misrepresentation or inaccuracy of any representation or warranty of the
Purchaser contained in this Agreement, including without limitation the
representations and warranties set forth on Schedules A3 and A4 hereto, or in
any document, instrument or agreement delivered pursuant hereto; and (B) any
breach, including breach due to non-performance, by the Purchaser or Royal Gold
of any covenant or agreement to be performed by the Purchaser or Royal Gold
contained in this Agreement or in any document, instrument or agreement
delivered pursuant hereto.

 

14.3                        Limited
Indemnity for Losses Related to Incidental Connection to Property

 

Subject to Section 14.4, the Vendor agrees
to indemnify the Purchaser and Royal Gold from and against, and to hold the Purchaser
and Royal Gold harmless from, any and all Losses which may at any time be
imposed on, incurred by or asserted against the Purchaser and Royal Gold in any
way to the extent relating to or arising out of (A) the failure of the
Vendor or Thompson Creek to comply with any Applicable Law, including any
Applicable Law relating to environmental protection and reclamation
obligations, with respect to the Milligan Property; (B) the physical
environmental condition of the Milligan Project and matters of health or safety
related to the

 

35

 

Milligan Project or any action or claim brought
with respect thereto; and (C) any actual or threatened withdrawal by any
Governmental Authority of any material Approval under Environmental Laws which
is necessary for the construction or operation of the Milligan Project, or any
actual or threatened challenge by any person to any material Approval under
Environmental Laws which is necessary for the construction or operation of the
Milligan Project.  Vendor’s
indemnification obligation pursuant to this Section 14.3 shall arise to
the extent such Losses are direct, such as but not limited to Losses incurred
from defending enforcement actions or defending lawsuits joined against
Purchaser or Royal Gold.  Vendor’s
indemnification obligation pursuant to this Section 14.3 shall not arise
(i) where indemnification is available to Purchaser pursuant to Section 14.1,
and (ii) where Losses are incidental or consequential to the occurrence of
the matters listed in this Section 14.3 (A), (B) and (C), such as but
not limited to lost profits from the resulting failure of Vendor to develop the
Milligan Project, to extract or process Minerals, or to deliver or sell
Minerals to an Offtaker.

 

14.4                        Limitations
on Indemnification

 

Notwithstanding anything else to the contrary
in this Article 14, in no event will either Party be liable to the other
Party for:

 

(a)                                  any lost profits or incidental, indirect, speculative,
consequential, special, punitive, or exemplary damages of any kind (whether
based in contract, tort, including negligence, strict liability, fraud, or
otherwise, or statutes, regulations, or any other theory) arising out of or in
connection with this Agreement, even if advised of such potential damages; or

 

(b)                                 Losses directly arising from an Event of Force
Majeure.

 

Article 15

INDEPENDENT ENGINEER; ADDITIONAL PAYMENT TERMS; DISPUTES

 

15.1                        Independent
Engineer

 

(a)                                  Following
the Effective Date, the Parties will select by mutual agreement an individual
to serve as an independent engineer under this Agreement (the “Independent Engineer”). To the extent he is
no longer available to perform the service or if agreed by the Purchaser and
Vendor, a replacement Independent Engineer will be selected by the mutual
agreement of the Purchaser and Vendor. If the Purchaser and Vendor cannot agree
upon an initial Independent Engineer within 45 days following the date of this
Agreement or a replacement Independent Engineer within 15 days after an
existing Independent Engineer ceases to perform such service, the Independent
Engineer shall be selected by the following procedure: the Purchaser will
nominate three Qualified Candidates, one of which Vendor will elect within 10
days after Vendor shall have received notice of the Purchaser’s nomination,
failing which the Purchaser shall appoint one of the nominees as the
Independent Engineer. For purposes hereof, a “Qualified
Candidate” shall mean an individual with not less than 15 years of
relevant mineral engineering expertise in the precious metals industry. The
Qualified Candidate will not have been a director, officer, employee of, or
contractor or service provider to, or director, officer, beneficial owner or
close relative of a

 

36

 

beneficial owner of any
contractor or service provider to the Purchaser or Vendor or any Affiliate
thereof for a period of five years preceding his or her nomination by the
Purchaser unless mutually agreed between the Purchaser and Vendor.

 

(b)                                 The
regular retainer of the Independent Engineer shall be paid by the Purchaser.
All incremental fees, costs and expenses of the Independent Engineer,
including, without limitation, the costs related to reviewing data resulting
from a proposed change to Project Costs or the Development Program, will be
borne by Vendor.

 

15.2                        Payments

 

All payments of funds due by one Party to
another under this Agreement shall be made in U.S. Dollars or such other
currency as the Parties may agree from time to time in writing and shall be
made by wire transfer in immediately available funds to the bank account or
accounts designated by the receiving Party in writing from time to time.

 

15.3                        Overdue
Payments and Set-Off

 

(a)                                  Any
payment not made by a Party on or by any applicable payment date referred to in
this Agreement shall incur interest from the due date until such payment or
delivery is paid or made in full at a per annum rate equal to the LIBO Rate on
the due date plus four percent, calculated and compounded monthly in arrears.

 

(b)                                 Any
such overdue dollar amount owed to the Vendor under this Agreement may be set
off against future Refined Gold owed to Purchaser based on the London Bullion
Market Association afternoon price fix for gold on the date such dollar amount
became overdue.

 

(c)                                  The
value of any such overdue payment associated with Refined Gold owed to the
Purchaser under this Agreement shall be based on the London Bullion Market
Association afternoon fix for gold on the date such Refined Gold became
overdue, and the Purchaser may elect to receive such overdue payment in Refined
Gold or as a set off against future Gold Purchase Price payments owed to the
Vendor under Section 2.5.

 

15.4                        Statement
Disputes

 

(a)                                  If
the Purchaser disputes any statement provided pursuant to Section 2.3, the
number of ounces of Refined Gold to be Delivered in any Delivery of Refined
Gold to the Purchaser hereunder, or the uncredited balance of the Payment
Deposit set forth in any Deposit Record Report:

 

(i)                  the Purchaser may notify
Vendor in writing (the “Dispute Notice”)
of such dispute within one year from the date of delivery of the applicable
Deposit Record Report (in the case of a dispute regarding the calculation of
the uncredited balance of the Deposit Record) or the applicable statement under
Section 2.3 (in the case of a dispute regarding any statement or the
number of ounces of Refined Gold to be delivered to the Purchaser hereunder),
as applicable (the “Dispute Period”);

 

37

 

(ii)               if the Purchaser and Vendor
have not resolved the dispute within a 60-day period, then the Purchaser shall
have the right during the ensuing 60 days to require Vendor to retain an
Auditor to prepare a written report on the subject matter of the dispute (the “Auditor’s Report”);

 

(iii)            the Auditor shall have the
same inspection rights as the Purchaser under Section 7.4(a) in order
to prepare the Auditor’s Report and Vendor shall provide, or cause to be
provided, to the Auditor any information reasonably requested by the Auditor to
enable the auditor to prepare the Auditor’s Report;

 

(iv)           promptly following
completion of the Auditor’s Report, Vendor will deliver a copy thereof to the
Purchaser;

 

(v)              the cost of obtaining the
Auditor’s Report shall be paid by the Purchaser unless the Auditor’s Report
concludes that (i) in the case of a dispute regarding the number of ounces
of Refined Gold to be delivered in any delivery of Refined Gold to the
Purchaser hereunder, the number of ounces that should have been delivered by
Vendor (in aggregate for all deliveries in dispute) was more than 5% greater
than the actual number of ounces so delivered by Vendor, or (ii) in the
case of a dispute regarding the calculation of the uncredited balance of the
Payment Deposit in a Deposit Record Report, the correct uncredited balance of
the Payment Deposit is more than 5% different from the amount reported by
Vendor in the applicable Deposit Record Report, in each of which cases the cost
of obtaining the Auditor’s Report shall be for the account of Vendor;

 

(vi)           if either Vendor or the
Purchaser disputes the Auditor’s Report and such dispute is not resolved
between the Parties within 10 days after the date of delivery of the Auditor’s
Report, then such dispute may be resolved by arbitration in accordance with the
arbitration provisions set out in Section 15.5 of this Agreement provided
that such dispute must be referred to arbitration within 30 days after the end
of such 10-day period; and

 

(vii)        if such dispute is not
referred to arbitration within such 30-day period, then the Auditor’s Report
will be deemed final and binding on the Parties;

 

(b)                                 If
the Purchaser does not deliver a Dispute Notice within the applicable Dispute
Period, then each statement provided pursuant to Section 2.3, the number
of ounces of Refined Gold to be delivered in any delivery of Refined Gold to
the Purchaser hereunder or the calculation of the uncredited balance of the
Payment Deposit set forth in any Deposit Record Report, as applicable, will be
deemed final and binding on the Parties after the expiry of the applicable Dispute
Period.

 

(c)                                  Any
matter in respect of which a Dispute Notice is delivered shall be resolved only
pursuant to this Section 15.4 including, if applicable, an arbitration
commenced in accordance with Section 15.4(a)(vi).

 

38

 

15.5                        Disputes
and Arbitration

 

Any dispute,
controversy or claim arising out of or relating to this Agreement or the
breach, termination or invalidity thereof which has not been resolved by the
Parties in accordance with the procedures set out herein, if any, and within
the time frames specified herein (or where no time frames are specified, within
15 days of the delivery of written notice by either Party of such dispute,
controversy or claim), including the determination of the scope or
applicability of this Agreement to arbitrate, shall be settled by binding
arbitration, and any party may so refer such dispute, controversy or claim to
binding arbitration. Such referral to binding arbitration shall be to a
qualified single arbitrator pursuant to the Arbitration Rules, as may be
amended from time to time, which rules shall govern such arbitration
proceeding except to the extent modified by the rules for arbitration set
out in Annex 1 and the discretion of the arbitrator thereunder.  The determination of such arbitrator shall be
final and binding upon the Parties and the costs of such arbitration shall be
as determined by the arbitrator. 
Judgment on the award may be entered in any court having jurisdiction.
This Section 15.5 shall not preclude the Parties from seeking provisional
remedies in aid of arbitration from a court of competent jurisdiction. The
Parties covenant and agree that they shall conduct all aspects of such
arbitration having regard at all times to expediting the final resolution of
such arbitration.

 

Article 16

TAXES

 

16.1                        Taxes

 

(a)                                  Except
as described in Section 16.1(c), all deliveries of Refined Gold or
payments made by a Party shall be made without any deduction, withholding,
charge or levy for or on account of any tax, duty or other charges of whatever
nature imposed by any taxing or Governmental Authority, all of which shall be
for the account of the Party making the delivery or payment.

 

(b)                                 The
Parties acknowledge and agree that this Agreement and the purchase and sale
transactions contemplated hereby are, and are intended to be, transactions for
the purchase and sale of gold and the Parties do not intend this Agreement and
the transactions contemplated hereby to constitute the purchase and sale of a
resource property for Canadian legal and tax purposes.

 

(c)                                  If
the Purchaser is an entity that is a non resident of Canada for the purposes of
the Income Tax Act (Canada), the
Purchaser shall indemnify the Vendor for any Canadian withholding on any amount
paid or credited to the Purchaser as, on account or in lieu of payment of, or
in satisfaction of a payment of Refined Gold or any other payment to be made to
the Purchaser under this Agreement.  If
the Vendor does withhold any amount, it shall provide written proof of any such
withholding payment to the Purchaser.

 

Article 17

GENERAL

 

17.1                        Further
Assurances

 

Each Party shall execute all such further
instruments and documents and do all such further actions as may be necessary
to effectuate the documents and transactions contemplated in this

 

39

 

Agreement, in each case at the cost and expense
of the Party requesting such further instrument, document or action, unless
expressly indicated otherwise.

 

17.2                        Survival

 

The following provisions shall survive
termination of this Agreement: 8.7, 12.2, 13.2, Article 14, 15.4, 15.5 and
Sections [·] of each of the Security Agreements and such other
provisions of this Agreement as are required to give effect thereto.

 

17.3                        No Joint
Venture

 

Nothing herein shall be construed to create,
expressly or by implication, a joint venture, mining partnership, commercial
partnership, agency relationship or fiduciary relationship between the
Purchaser and Vendor under Canadian law.

 

17.4                        Governing
Law

 

This Agreement shall be governed by and
construed under the laws of the Province of British Columbia and the federal
laws of Canada applicable therein (without regard to its laws relating to any
conflicts of laws).  The United Nations
Vienna Convention on Contracts for the International Sale of Goods shall not
apply to this Agreement.

 

17.5                        Notices

 

(a)                                  Unless
otherwise specifically provided in this Agreement, any notice or other
correspondence required or permitted by this Agreement shall be deemed to have been
properly given or delivered when made in writing and hand-delivered to the
Party to whom directed, or when given by facsimile transmission, with all
necessary delivery charges fully prepaid (or in the case of a facsimile, upon
confirmation of receipt), and addressed to the Party to whom directed at the
following address:

 

(i)                  if to Vendor to:

 

[26 W. Dry Creek Circle

Suite 810

Littleton, CO  80120   USA

Attention:  l]

Facsimile:  (303) 761-7420

 

with a copy, which shall not constitute notice,
to:

 

Goodmans

Barristers and Solicitors

1900 — 355 Burrard Street

Vancouver, BC  V6C 2G8

 

40

 

(ii)               if to Thompson Creek to:

 

26 W. Dry Creek Circle

Suite 810

Littleton, CO  80120   USA

Attention:  l

Facsimile:  (303) 761-7420

 

with a copy, which shall not constitute notice,
to:

 

Goodmans

Barristers and Solicitors

1900 — 355 Burrard Street

Vancouver, BC  V6C 2G8

 

(iii)            if to the Purchaser to:

 

[RG Newco]

c/o Royal Gold, Inc.

1660 Wynkoop Street, Suite 1000

Denver, CO 80202-1132 USA

Attention: Vice President and General Counsel

Facsimile: (303) 595-9385

 

with a copy, which shall not constitute notice,
to:

 

Hogan Lovells US LLP

One Tabor Center

1200 Seventeenth Street, Suite 1500

Denver, CO 80202   USA

Attention: 
Paul Hilton, Esq.

Facsimile: 
(303) 899-7333

 

(iv)           if to Royal Gold, to:

 

Royal Gold, Inc.

1660 Wynkoop Street, Suite 1000

Denver, CO 80202-1132 USA

Attention: Vice President and General Counsel

Facsimile: (303) 595-9385

 

with a copy, which shall not constitute notice,
to:

 

Hogan Lovells US LLP

One Tabor Center

1200 Seventeenth Street, Suite 1500

Denver, CO 80202   USA

Attention: 
Paul Hilton, Esq.

Facsimile: 
(303) 899-7333

 

41

 

(b)                                 Any
notice or other communication given in accordance with this section, if
delivered by hand as aforesaid shall be deemed to have been validly and
effectively given on the date of such delivery if such date is a Business Day
and such delivery is received before 4:00 pm at the place of delivery;
otherwise, it shall be deemed to be validly and effectively given on the
Business Day next following the date of delivery. Any notice of communication
which is transmitted by facsimile transmission as aforesaid shall be deemed to
have been validly and effectively given on the date of transmission if such
date is a Business Day and such transmission was received before 4:00 pm at the
place of receipt; otherwise it shall be deemed to have been validly and
effectively given on the Business Day next following such date of transmission.

 

17.6                        [Reserved]

 

17.7                        Amendments

 

This Agreement may not be changed, amended or
modified in any manner, except pursuant to an instrument in writing signed on
behalf of each of the Parties hereto.

 

17.8                        Beneficiaries;
Successors and Assigns

 

This Agreement is for the sole benefit of the
Parties and shall enure to the benefit of and be binding on their successors
and permitted assigns and, except as expressly contemplated herein, nothing
herein is intended to or shall confer upon any other person any legal or
equitable right, benefit or remedy of any nature or kind whatsoever under or by
reason of this Agreement.

 

17.9                        Contests

 

The Vendor hereby consents to the Purchaser’s
participation (at the Purchaser’s sole expense) to protect its interest and
investment in any proceeding relating to any act of eminent domain,
expropriation, confiscation, or nationalization of all or part of the Milligan
Property.

 

17.10                 Entire
Agreement

 

This Agreement, the Security Agreements and the
Confidentiality Agreement together constitute the entire agreement between the
Parties with respect to the subject matter hereof and cancel and supersede any
prior understandings and agreements between the Parties with respect thereto.
There are no representations, warranties, terms, conditions, opinions, advice,
assertions of fact, matters, undertakings or collateral agreements, express,
implied or statutory, by or between the Parties (or by any of their respective
employees, directors, officers, representatives or agents) other than as
expressly set forth in this Agreement, the Security Agreements or the
Confidentiality Agreement.

 

17.11                 Waivers

 

Any waiver of, or consent to depart from, the
requirements of any provision of this Agreement shall be effective only if it
is in writing and signed by the Party giving it, and only in the specific
instance and for the specific purpose for which it has been given. No failure
on the part of any Party to exercise, and no delay in exercising, any right
under this Agreement shall operate as a

 

42

 

waiver of such right. No single or partial
exercise of any such right shall preclude any other or further exercise of such
right or the exercise of any other right.

 

17.12                 Severability

 

If any provision of this Agreement is
determined by a court of competent jurisdiction to be invalid, illegal or
unenforceable in any respect, all other provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any Party.

 

17.13                 Counterparts

 

This Agreement may be executed in one or more
counterparts, and by the Parties in separate counterparts, each of which when
executed shall be deemed to be an original, but all of which taken together
shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Agreement by telecopy or
electronic scan shall be effective as delivery of a manually executed
counterpart of this Agreement.

 

17.14           Thompson Creek Guarantee

 

Thompson Creek hereby absolutely,
unconditionally and irrevocably guarantees the prompt and complete performance
of all of the terms, covenants, conditions and provisions to be performed by
the Vendor pursuant to this Agreement, and shall perform such terms, covenants,
conditions and provisions upon the default or non-performance thereof by the
Vendor.

 

17.15           Royal Gold Guarantee

 

Royal Gold hereby absolutely, unconditionally
and irrevocably guarantees the prompt and complete performance of all of the
terms, covenants, conditions and provisions to be performed by the Purchaser
pursuant to this Agreement, and shall perform such terms, covenants, conditions
and provisions upon the default or non-performance thereof by the Purchaser.

 

43

 

IN WITNESS WHEREOF the Parties have executed this Agreement as of the day and year first
written above.

 

	
   

  	
  [PURCHASER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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  [VENDOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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  Solely in respect of
  Article 10 and Sections 11.4 and 17.14 hereof

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ROYAL GOLD, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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44

 

	
   

  	
  Solely
  in respect of Article 10 and Sections 3.5, 11.4 and 17.15 hereof

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THOMPSON
  CREEK METALS COMPANY INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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45

 

ANNEX 1

 

ARBITRATION RULES

 

The following rules and procedures shall
apply with respect to any matter to be arbitrated by the Parties in accordance
with Section 15.5 of the Agreement.

 

1.     Initiation of Arbitration
Proceedings

 

(a)           If any Party to
this Agreement wishes to have any matter under this Agreement arbitrated in
accordance with the provisions of this Agreement, it shall give notice to the
other Party hereto specifying particulars of the matter or matters in dispute
and proposing the name of the person it wishes to be the single arbitrator.
Within 20 days after receipt of such notice, the other Party to this Agreement
shall give notice to the first Party advising whether such Party accepts the
arbitrator proposed by the first Party. If such notice is not given within such
20-day period, the other Party shall be deemed to have accepted the arbitrator
proposed by the first Party. If the Parties do not agree upon a single
arbitrator within such 20-day period such arbitrator shall be chosen by British
Columbia International Commercial Arbitration Centre, Vancouver, British
Columbia, at the written request of either Party.

 

(b)           The individual
selected as Arbitrator shall be qualified by education and experience to decide
the matter in dispute. The Arbitrator shall be at arm’s length from both
Parties and shall not be a member of the audit or legal firm or firms who
advise either Party or a person who is otherwise regularly retained by either
of the Parties.

 

2.     Submission of Written Statements

 

(a)           Within 20 days of
the appointment of the Arbitrator, the Party initiating the arbitration (the “Claimant”) shall send the other Party (the “Respondent”) a statement of claim setting
out in sufficient detail the facts and any contentions of law on which it
relies, and the relief that it claims.

 

(b)           Within 15 days of
the receipt of the statement of claim, the Respondent shall send the Claimant a
statement of defence stating in sufficient detail which of the facts and
contentions of law in the statement of claim it admits or denies, on what
grounds, and on what other facts and contentions of law the Respondent relies.

 

(c)           Within ten days of
receipt of the statement of defence, the Claimant may send the Respondent a
statement of reply.

 

(d)           All statements of
claim, defence and reply shall be accompanied by copies (or, if they are
especially voluminous, lists) of all essential documents on which the Party
concerned relies and which have not previously been submitted by any Party, and
(where practicable) by any relevant samples.

 

 

(e)           After submission of
all the statements, the Arbitrator will give directions for the further conduct
of the arbitration.

 

3.     Meetings and Hearings

 

(f)            The arbitration
shall take place in Vancouver, British Columbia or in  such other place as the Claimant and the Respondent shall
agree upon in writing.

 

(g)           The arbitration
shall be conducted in English unless otherwise agreed by such Parties and the
Arbitrator.

 

(h)           All meetings and
hearings will be in private unless the Parties otherwise agree.

 

(i)            Any Party may be
represented at any meetings or hearings by legal counsel.

 

(j)            Each Party may
examine, cross-examine and re-examine all witnesses at the arbitration.

 

4.     The Decision

 

(k)           The Arbitrator will
make a decision in writing and, unless the Parties otherwise agree, will set
out reasons for decision in the decision

 

(l)            The Arbitrator will
send the decision to the Parties as soon as practicable after the conclusion of
the final hearing, but in any event no later than 60 days thereafter, unless
that time period is extended for a fixed period by the Arbitrator on written
notice to each Party because of illness or other cause beyond the Arbitrator’s
control.

 

(m)          The decision shall
determine and award costs.

 

(n)           Any Party may
appeal the decision of the Arbitrator on a question of law. In the event either
Party initiates any court proceeding in respect of the decision of the
Arbitrator or the matter arbitrated, such Party, if unsuccessful in the court
proceeding, shall pay the other Party’s costs of such proceedings on a
substantial indemnity basis.

 

5.     Jurisdiction and Powers of the
Arbitrator

 

(o)           By submitting to
arbitration under the Arbitration Rules, the Parties shall be taken to have
conferred on the Arbitrator the following jurisdiction and powers, to be
exercised at the Arbitrator’s discretion subject only to the Arbitration Rules and
the relevant law with the object of ensuring the just, expeditious, economical
and final determination of the dispute referred to arbitration.  Without limiting the jurisdiction of the
Arbitrator at law, the Parties agree that the Arbitrator shall have
jurisdiction to:

 

(i)            determine any question of law or fact arising in the
arbitration;

 

(ii)           determine any question as to
the Arbitrator’s jurisdiction;

 

2

 

(iii)          determine any question of
good faith, dishonesty or fraud arising in the dispute;

 

(iv)          order any Party to furnish further details of that Party’s case,
in fact or in law;

 

(v)           proceed in the arbitration
notwithstanding the failure or refusal of any Party to comply with these Rules or
with the Arbitrator’s orders or directions, or to attend any meeting or
hearing, but only after giving that Party written notice that the Arbitrator
intends to do so;

 

(vi)          receive and take into
account such written or oral evidence tendered by the Parties as the Arbitrator
determines is relevant, whether or not strictly admissible in law;

 

(vii)         make one or more interim
awards;

 

(viii)        hold meetings and hearings,
and make a decision (including a final decision) in Vancouver, British Columbia
or elsewhere with the concurrence of
the Parties thereto;

 

(ix)           order the Parties to produce
to the Arbitrator, and to each other for inspection, and to supply copies of,
any documents or other evidence or classes of documents in their possession or
power which the Arbitrator determines
to be relevant;

 

(x)            award any remedy or relief
that a court could order or grant in accordance with the Agreement, including,
without limitation, specific performance of any obligation created under the
Agreement, the issuance of an interim, interlocutory or permanent injunction,
or the imposition of sanctions for abuse or frustration of the arbitration
process; and

 

(xi)           make interim orders to
secure all or part of any amount in dispute in the arbitration.

 

6.     Confidentiality

 

(p)           The arbitration,
including any settlement discussions between the parties related to the subject
matter of the arbitration, shall be conducted on a private and confidential basis
and any and all information exchanged and disclosed during the course of the
arbitration shall be used only for the purposes of the arbitration. Neither
party shall communicate any information obtained or disclosed during the course
of the arbitration to any third party except to those experts or consultants
employed or retained by, or consulted about retention on behalf of, such party
in connection with the arbitration and solely to the extent necessary for
assisting in the arbitration, and only after such persons have agreed to be
bound by these confidentiality conditions. In the event that disclosure of any
information related to the arbitration is required to comply with Applicable
Law or court order, the disclosing Party shall promptly notify the other Party
of such disclosure, shall limit such disclosure limited to only that information
so required to be disclosed

 

3

 

and shall have availed
itself of the full benefits of any laws, rules, regulations or contractual
rights as to disclosure on a confidential basis to which it may be entitled.

 

(q)           The award of the
Arbitrator and any reasons for the decision of the Arbitrator shall also be
kept confidential except (i) as may reasonably be necessary to obtain
enforcement thereof, (ii) for either Party to comply with its disclosure
obligations under Applicable Law, (iii) to permit the parties to exercise
properly their rights under the Arbitration Rules, and (iv) to the extent
that disclosure is required to allow the Parties to consult with their
professional advisors.

 

4

 

Schedule A1 — Vendor
Representations and Warranties

 

The Vendor hereby represents and warrants to
the Purchaser as follows:

 

(a)           it is a company
validly existing under the laws of its jurisdiction of incorporation and is up
to date in respect of all filings required by law to maintain its existence;

 

(b)           all requisite
corporate acts and proceedings have been done and taken by it, including obtaining
all requisite board of directors’ approvals, with respect to entering into this
Agreement and the Security Agreements and performing its obligations hereunder
and thereunder;

 

(c)           it has the
requisite corporate power, capacity and authority to enter into this Agreement
and the Security Agreements and to perform its obligations hereunder and
thereunder;

 

(d)           this Agreement and
the Security Agreements and the exercise of its rights and performance of its
obligations hereunder and thereunder do not and will not, (i) conflict
with or result in a default under any agreement, mortgage, bond or other
instrument to which it is a party or which is binding on its assets, (ii) conflict
with its constating or constitutive documents, or (iii) conflict with or
violate any Applicable Laws, in each case except as would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect;

 

(e)           it is not currently
in breach or default under any agreement, mortgage, bond or other instrument to
which it is a party or which is binding on or affecting any of its assets, and
no event has occurred that with the passage of time would constitute such a
breach or default, except in each case where the breach or default would not,
or would not reasonably be expected to, have a Material Adverse Effect, and it
has no knowledge of a material breach or default by any counterparty thereto or
the inability of any counterparty to perform its obligations thereunder;

 

(f)            no Approvals are
required to be obtained by it in connection with the execution and delivery or
the performance by it of this Agreement or any of the Security Agreements or
the transactions contemplated hereby and thereby;

 

(g)           each of this
Agreement and the Security Agreements has been duly and validly executed and
delivered by it and constitutes a legal, valid and binding obligation of it,
enforceable against it in accordance with its terms subject to any
qualification regarding enforceability in the legal opinions provided pursuant
to Section 4.1(c);

 

(h)           there is no
Insolvency Event in respect of it, and it is not now aware of any circumstance
which, with notice or the passage of time, or both, would give rise to an
Insolvency Event with respect to it;

 

(i)            other than the
Haslinger Royalty, no person has any agreement, option, right of first refusal
or right, title or interest or right capable of becoming an agreement,

 

 

option, right of first
refusal or right, title or interest, in or to all or any part of the Milligan
Project or the gold produced from the Milligan Project;

 

(j)            all mining patents,
fees and other amounts have been paid when due and payable and all other
actions have been taken and all other obligations as are required to maintain
the Milligan Project have been complied with, except where the failure to make
a payment when due or take an action or perform an obligation would not be
material to the Company;

 

(k)           it has obtained or
been issued all licences, permits, Approvals (including environmental
Approvals), authorizations, rights (including surface and access rights),
privileges, concessions or franchises necessary for the construction and
Development of the Milligan Project as contemplated by the Development Program,
other than those that are not necessary on the date this representation and
warranty is given and are expected to be obtained in the ordinary course of
business by the time they are necessary, and such licences, permits, approvals,
authorizations, rights, privileges, concessions or franchises the failure to
have or obtain which will not, or will not reasonably be expected to have,
individually or in the aggregate, Material Adverse Effect, and to the knowledge
its knowledge, other than the Nak’azdli Litigation, there are no facts or
circumstances that might reasonably be expected to adversely affect the
issuance of any such material licences, permits, Approvals (including
environmental Approvals), authorizations, rights (including surface and access
rights), privileges, concessions or franchises;

 

(l)            the Mineral Claims
and Mining Leases referred to in Schedule B (the “Milligan Tenures”) constitute all of the rights that comprise
its interest in the Mineral reserves and resources of the Milligan Project as
of the date of this Agreement and it is the registered, recorded and beneficial
owner of a 100% undivided interest in and to the Milligan Project, free and
clear of all Encumbrances, except Permitted Encumbrances or as would not have,
individually or in the aggregate, a Material Adverse Effect or materially
affect the security interest of the Purchaser under any Security Agreement or
other security document;

 

(m)          the Milligan
Tenures are in full force and effect and it has complied in all respects with
its obligations in respect thereof under Applicable Laws (including without
limitation Environmental Laws) and the terms thereof except to the extent such
non-compliance would not be reasonable expected to result in a Material Adverse
Effect on the operation of the Milligan Project;

 

(n)           its right, title
and interest in and to the Milligan Project is not subject to any Encumbrances,
other than Permitted Encumbrances, except as would not reasonably be expected
to have a Material Adverse Effect or materially affect the security interest of
the Purchaser under any Security Agreement or other security document;

 

(o)           the maps attached
hereto as Schedule B depict the location of the Milligan Project in all
material respects;

 

2

 

(p)           subject only to the
rights of any Governmental Authority, no person is entitled to or has been
granted any rent or royalty, or other payment in the nature of rent or royalty
on or in respect of any Produced Gold other than Haslinger Royalty;

 

(q)           it has not received
any notice of any expropriation proceeding or decision to expropriate all or
any part of the Milligan Project, and it does not have knowledge of any
expropriation proceeding pending or threatened against or affecting all or any
part of the Milligan Project or of any discussions or negotiations which could
lead to any such expropriation proceeding;

 

(r)            except as would
not, or would not reasonably be expected to, have individually or in the
aggregate, a Material Adverse Effect, conditions on and relating to the
Milligan Project and the surface area or mining lots covered by the Milligan
Project respecting all past and current operations conducted thereon by it are
in material compliance with Applicable Laws (including without limitation
Environmental Laws), and conditions on and relating to the Milligan Project and
the surface area or mining lots covered by the Milligan Project respecting all
past operations conducted thereon by persons other than the Vendor are, to its
knowledge, in compliance in all material respects with Applicable Laws (including
without limitation Environmental Laws);

 

(s)           other than the Nak’azdli
Litigation, it has not been notified that it is a party or is subject to any
action, suit, proceeding, investigation or claim affecting or pertaining to the
Milligan Project or any part thereof, except as would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect
and, to its knowledge, no such action, suit, proceeding, investigation or claim
is threatened or outstanding;

 

(t)            neither it nor the
Milligan Project, nor any part thereof, is subject to any outstanding judgment,
order, writ, injunction or decree that has or would reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect;

 

(u)           it enters into and
performs this Agreement on its own account and not as trustee or a nominee of
any other person;

 

(v)           except for
Permitted Encumbrances, the Vendor has not granted, nor agreed to grant, an
Encumbrance affecting or in the Minerals or the Milligan Project, or any part
thereof, to any person other than to the Purchaser;

 

(w)          the Technical
Reports are accurate in all material respects and do not contain a
misrepresentation.  The Technical Reports
were prepared in accordance with Canadian industry standards set forth in NI
43-101 and the information contained in the Technical Reports was, at the time
of delivery thereof, complete and accurate in all material respects and there
has occurred no change to such information since the date of delivery thereof
other than any change that would not reasonably be expected to have a Material
Adverse Effect; and

 

3

 

(x)            since December 31,
2009, neither the business, properties, assets, liabilities (contingent or
otherwise), condition (financial or otherwise), capitalization, operation or
results of operations of the Vendor, have been affected by any change, effect,
event or occurrence (whether or not insured against) which could reasonably be
expected to result, either individually or in the aggregate, in a Material
Adverse Effect.

 

4

 

Schedule A2 — Thompson Creek
Representations and Warranties

 

Thompson Creek hereby represents and warrants to the Purchaser as
follows:

 

(a)           it is a company
validly existing under the laws of its jurisdiction of incorporation and is up
to date in respect of all filings required by law to maintain its existence;

 

(b)           all requisite
corporate acts and proceedings have been done and taken by it, including obtaining
all requisite board of directors’ approvals, with respect to entering into this
Agreement and performing its obligations hereunder;

 

(c)           it has the
requisite corporate power, capacity and authority to enter into this Agreement
and to perform its obligations hereunder;

 

(d)           this Agreement and
the exercise of its rights and performance of its obligations hereunder do not
and will not, (i) conflict with or result in a default under any
agreement, mortgage, bond or other instrument to which it is a party or which
is binding on its assets, (ii) conflict with its constating or
constitutive documents, or (iii) conflict with or violate any Applicable
Laws, in each case except as would not reasonably be expected to have,
individually or in the aggregate, a material adverse effect on Thompson Creek
or the performance of its obligations under this Agreement;

 

(e)           it is not currently
in breach or default under any material agreement, mortgage, bond or other
instrument to which it is a party or which is binding on its assets, and no
event has occurred that with the passage of time would constitute such a breach
or default, and it has no knowledge of a material breach or default by any
counterparty thereto or the inability of any counterparty to perform its
obligations thereunder;

 

(f)            no Approvals are
required to be obtained by it in connection with the execution and delivery or
the performance by it of this Agreement or the transactions contemplated
hereby;

 

(g)           this Agreement has
been duly and validly executed and delivered by it and constitutes a legal,
valid and binding obligation of it, enforceable against it in accordance with
its terms subject to any qualification regarding enforceability in the legal
opinion provided pursuant to Section 4.1(c);

 

(h)           it has not suffered
an Insolvency Event and it is not now aware of any circumstance which, with
notice or the passage of time, or both, would give rise to an Insolvency Event
with respect to it; and

 

(i)            it enters into and
performs this Agreement on its own account and not as trustee or a nominee of
any other person.

 

5

 

Schedule A3 — Purchaser
Representations and Warranties

 

Purchaser hereby represents and warrants to the Vendor and Thompson
Creek as follows:

 

(a)           it is a company
validly existing under the laws of its jurisdiction of incorporation and is up
to date in respect of all filings required by law to maintain its existence;

 

(b)           all requisite
corporate acts and proceedings have been done and taken by it, including
obtaining all requisite board of directors’ approvals, with respect to entering
into this Agreement and performing its obligations hereunder;

 

(c)           it has the
requisite corporate power, capacity and authority to enter into this Agreement
and to perform its obligations hereunder;

 

(d)           this Agreement and
the exercise of its rights and performance of its obligations hereunder do not
and will not, (i) conflict with or result in a default under any
agreement, mortgage, bond or other instrument to which it is a party or which
is binding on its assets, (ii) conflict with its constating or
constitutive documents or (iii) conflict with or violate any Applicable
Laws, in each case except as would not reasonably be expected to have,
individually or in the aggregate, a material adverse effect on the Purchaser or
the performance of its obligations under this Agreement;

 

(e)           it is not currently
in breach or default under any material agreement, mortgage, bond or other
instrument to which it is a party or which is binding on its assets, and no
event has occurred that with the passage of time would constitute such a breach
or default, and it has no knowledge of a material breach or default by any
counterparty thereto or the inability of any counterparty to perform its obligations
thereunder;

 

(f)            no Approvals are
required to be obtained by it in connection with the execution and delivery or
the performance by it of this Agreement or the transactions contemplated
hereby;

 

(g)           this Agreement has
been duly and validly executed and delivered by it and constitutes a legal,
valid and binding obligation of it, enforceable against it in accordance with
its terms subject to any qualification regarding enforceability in the legal
opinion provided pursuant to Section 4.2(c);

 

(h)           it has not suffered
an Insolvency Event and it is not now aware of any circumstance which, with
notice or the passage of time, or both, would give rise to an Insolvency Event
with respect to it; and

 

(i)            it enters into and
performs this Agreement on its own account and not as trustee or a nominee of
any other person.

 

 

Schedule A4 — Royal Gold
Representations and Warranties

 

Royal Gold hereby represents and warrants to
the Vendor and Thompson Creek as follows:

 

(a)                                  it
is a company validly existing and in good standing under the laws of State of
Delaware;

 

(b)                                 all
requisite corporate acts and proceedings have been done and taken by it,
including obtaining all requisite board of directors’ approvals, with respect
to entering into this Agreement and performing its obligations hereunder;

 

(c)                                  it
has the requisite corporate power, capacity and authority to enter into this
Agreement and to perform its obligations hereunder;

 

(d)                                 this
Agreement and the exercise of its rights and performance of its obligations
hereunder do not and will not, (i) conflict with or result in a default under
any agreement, mortgage, bond or other instrument to which it is a party or
which is binding on its assets, (ii) conflict with its charter or bylaws, or
(iii) conflict with or violate any Applicable Laws, in each case except as
would not reasonably be expected to have, individually or in the aggregate, a
material adverse effect on the Purchaser or the performance of its obligations
under this Agreement;

 

(e)                                  it
is not currently in breach or default under any material agreement, mortgage,
bond or other instrument to which it is a party or which is binding on its
assets, and no event has occurred that with the passage of time would
constitute such a breach or default, and it has no knowledge of a material
breach or default by any counterparty thereto or the inability of any
counterparty to perform its obligations thereunder;

 

(f)                                    no
Approvals are required to be obtained by it in connection with the execution
and delivery or the performance by it of this Agreement or the transactions
contemplated hereby;

 

(g)                                 this
Agreement has been duly and validly executed and delivered by it and
constitutes a legal, valid and binding obligation of it, enforceable against it
in accordance with its terms subject to any qualification regarding
enforceability in the legal opinion provided pursuant to Section 4.2(c);

 

(h)                                 it
has not suffered an Insolvency Event and it is not now aware of any
circumstance which, with notice or the passage of time, or both, would give
rise to an Insolvency Event with respect to it; and

 

(i)                                     it
enters into and performs this Agreement on its own account and not as trustee
or a nominee of any other person.

 

 

Schedule B — Description of
Milligan Property (with Maps)

 

 

Schedule C1 — Form of
Security Agreement for Milligan Property

 

[To be Settled]

 

 

Schedule C2 — Form of
Security Agreement for Personal Property

 

[To be settled]

 

 

Schedule C3 — Form of
Security Agreement — Floating Charge

 

[To be Settled]

 

 

Schedule D — Development
Program and Scheduled Deposits

 

1.               Development
Program: The Vendor shall deliver the Development Program to the Purchaser and
the Independent Engineer at least 30 days prior to the first Scheduled Deposit.

 

2.               Modifications
to the Development Program:  The Vendor
and Purchaser acknowledge that the Development Program may require
modifications throughout Development. 
Immediately when known, the Vendor shall provide the Independent
Engineer and Purchaser written notice of any material change to the Development
Program and reconcile the changes in a report. 
The Independent Engineer shall review and provide to the Purchaser an
opinion as to whether such changes are reasonable and shall keep a record of
the current and prior Development Program.

 

3.               Basis for
making Scheduled Payments:

 

a.               Promptly when
received, the Independent Engineer shall review the Development Program and
will establish a method for tracking the overall Project Costs in consultation
with the Vendor and the Purchaser;

 

b.              The Independent
Engineer shall keep a record of all funding sources and the calculations of the
Independent Engineer shall represent the definitive record of the Purchaser’s
Pro Rata Share of Funding;

 

c.               The Purchaser shall
contribute Scheduled Payments no more frequently than every 30 days in an
amount consistent with the Purchaser’s Pro Rata Share of Funding after
accounting for the use of proceeds contemplated in the relevant Deposit Event
along with all proceeds concurrently being funded by Vendor and third parties
for the Development Program, payable in accordance with each Deposit Event;

 

d.              Notwithstanding any
other provision of this Agreement, Purchaser’s obligation to make a Scheduled
Payment shall be suspended if:

 

i.                  Vendor has not
delivered to Purchaser copies of executed Mineral Offtake Agreements
representing at least 75% of the Minerals projected to be produced during the
first five years of operation of the Milligan Project, and at such time as the
Development has surpassed the cumulative investment of 50% of Project Costs; or

 

ii.               after March 31, 2011,
the Vendor shall have failed to obtain and keep in good standing the Fishery
and Oceans Permits.

 

e.               If Purchaser’s
obligation to make Scheduled Payments are suspended in accordance with 3.d.i.
or 3.d.ii. above, Purchaser will make a Scheduled Payment in the amount to regain
the Purchaser’s Pro Rata Share of Funding on the Deposit Event occurring
subsequent to the time that the Vendor satisfies the conditions set forth in
3.d.i. or 3.d.ii. above (a “Catch-Up Payment”).  Interest shall accrue on any Catch-Up Payment
from the date the Scheduled Payments are suspended at an

 

 

interest rate
equivalent to the average three month United States Treasury bill yield, as
quoted daily in the Wall Street Journal during such suspension, compounded
annually, and shall be paid with the Catch-Up Payment.  The “Fishery and Oceans Permits” means (i) an
authorization pursuant to section 35(2) of the Fisheries
Act for the harmful alteration, disruption or destruction of fish
habitat in respect of tailings impoundment area for the Milligan Project as
described in the Milligan Report, and (ii) the addition of the area of the
tailings impoundment area for the Milligan Project as described in the Milligan
Report to Schedule 2 to the Metal Mining Effluent Regulations for the purposes
of section 5(1) thereof, and the approval pursuant to section 27.1(1) of the
Metal Mining Effluent Regulations of a habitat compensation plan for such
tailings impoundment area that complies with the requirements of section 27.1
of the Metal Mining Effluent Regulations.

 

f.                 Notwithstanding
anything to the contrary, if Vendor completes the Development, Vendor will be
entitled to establish a Deposit Event for the outstanding balance of Scheduled
Deposits that have not been funded to date.

 

2

 

Schedule E — Permitted
Encumbrances

 

	
  Personal Property Registry (BC)

  	
   

  	
  Base Registration No.: 166686D

  Registration Date: August 8, 2006

  Registration Length: 5 years

  Secured Party: Canadian Imperial Bank of Commerce

  Debtor(s): Terrane Metals Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Base Registration No.: 262518D

  Registration Date: September 27, 2006

  Registration Length: Infinity

  Secured Party: Kennecott Canada Exploration Inc

  Debtor(s): Terrane Metals Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Base Registration No.: 478928E

  Registration Date: July 15, 2008

  Registration Length: 5 years

  Secured Party: Bank of Montreal, as Administrative Agent

  Debtor(s): Terrane Metals Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Base Registration No.: 605381F

  Registration Date: June 10, 2010

  Registration Length: 4 years

  Secured Party: Key Lease Canada Ltd.

  Debtor(s): Terrane Metals Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Base Registration No.: 605397F

  Registration Date: June 10, 2010

  Registration Length: 4 years

  Secured Party: Key Lease Canada Ltd.

  Debtor(s): Terrane Metals Corp.

  
	
   

  	
   

  	
   

  
	
  Personal Property Registry (Nunavut)

  	
   

  	
  Registration No.: 123380

  Registration Date: July 30, 2008

  Registration Length: 5 years

  Secured Parties: Bank of Montreal, as Administrative Agent, Bank of Montreal

  Debtor(s): Terrane Metals Corp.

  
	
   

  	
   

  	
   

  
	
  Personal Property Registry (Yukon)

  	
   

  	
  Registration No.: 2008/07/30 14865

  Registration Date: July 30, 2008

  Registration Length: 5 years

  Secured Parties: Bank of Montreal, as Administrative Agent, Bank of Montreal

  Debtor(s): Terrane Metals Corp.

  
	
   

  	
   

  	
   

  
	
  Personal Property Registry (Northwest
  Territories)

  	
   

  	
  Registration No.: 625251

  Registration Date: July 30, 2008

  Registration Length: 5 years

  Secured Parties: Bank of Montreal, as Administrative Agent, Bank of Montreal

  Debtor(s): Terrane Metals Corp.

  

 

 

Schedule F — Provisional
Payment Illustration

 

‘***’

 

 

Schedule 1 — Royal Gold
Representations and Warranties

 

Royal Gold hereby represents and warrants to the
Vendor and Thompson Creek as follows:

 

(a)                                  it is a company validly existing and in good
standing under the laws of State of Delaware;

 

(b)                                  all requisite corporate acts and proceedings
have been done and taken by it, including obtaining all requisite board of
directors’ approvals, with respect to entering into this letter agreement and
performing its obligations hereunder;

 

(c)                                  it has the requisite corporate power, capacity
and authority to enter into this letter agreement and to perform its
obligations hereunder;

 

(d)                                  this letter agreement and the exercise of its
rights and performance of its obligations hereunder do not and will not, (i) conflict
with or result in a default under any agreement, mortgage, bond or other
instrument to which it is a party or which is binding on its assets, (ii) conflict
with its charter or bylaws, or (iii) conflict with or violate any
Applicable Laws, in each case except as would not reasonably be expected to
have, individually or in the aggregate, a material adverse effect on Royal Gold
or the performance of its obligations under this Agreement;

 

(e)                                  it is not currently in breach or default under
any material agreement, mortgage, bond or other instrument to which it is a
party or which is binding on its assets, and no event has occurred that with
the passage of time would constitute such a breach or default, and it has no
knowledge of a material breach or default by any counterparty thereto or the
inability of any counterparty to perform its obligations thereunder;

 

(f)                                    no Approvals are required to be obtained by it
in connection with the execution and delivery or the performance by it of this
letter agreement or the transactions contemplated hereby;

 

(g)                                 this letter agreement has been duly and
validly executed and delivered by it and constitutes a legal, valid and binding
obligation of it, enforceable against it in accordance with its terms subject
to any qualification regarding enforceability in the legal opinion provided
pursuant to Section 4.2(c) of Exhibit 1;

 

(h)                                 it has not suffered an Insolvency Event and it
is not now aware of any circumstance which, with notice or the passage of time,
or both, would give rise to an Insolvency Event with respect to it; and

 

(i)                                    it enters into and performs this letter
agreement on its own account and not as trustee or a nominee of any other
person.

 

 

Schedule 2 — Thompson Creek
Representations and Warranties

 

Thompson Creek hereby represents and warrants to
the Purchaser as follows:

 

(a)                                  it is a company validly existing under the
laws of its jurisdiction of incorporation and is up to date in respect of all
filings required by law to maintain its existence;

 

(b)                                  all requisite corporate acts and proceedings
have been done and taken by it, including obtaining all requisite board of
directors’ approvals, with respect to entering into this letter agreement and
performing its obligations hereunder;

 

(c)                                  it has the requisite corporate power, capacity
and authority to enter into this letter agreement and to perform its
obligations hereunder;

 

(d)                                  this letter agreement and the exercise of its
rights and performance of its obligations hereunder do not and will not, (i) conflict
with or result in a default under any agreement, mortgage, bond or other
instrument to which it is a party or which is binding on its assets, (ii) conflict
with its constating or constitutive documents, or (iii) conflict with or
violate any Applicable Laws, in each case except as would not reasonably be
expected to have, individually or in the aggregate, a material adverse effect
on Thompson Creek or the performance of its obligations under this letter
agreement;

 

(e)                                  it is not currently in breach or default under
any material agreement, mortgage, bond or other instrument to which it is a
party or which is binding on its assets, and no event has occurred that with
the passage of time would constitute such a breach or default, and it has no
knowledge of a material breach or default by any counterparty thereto or the
inability of any counterparty to perform its obligations thereunder;

 

(f)                                    no Approvals are required to be obtained by it
in connection with the execution and delivery or the performance by it of this
letter agreement or the transactions contemplated hereby;

 

(g)                                 this letter agreement has been duly and
validly executed and delivered by it and constitutes a legal, valid and binding
obligation of it, enforceable against it in accordance with its terms subject
to any qualification regarding enforceability in the legal opinion provided
pursuant to Section 4.1(c) of Exhibit 1;

 

(h)                                 it has not suffered an Insolvency Event and it
is not now aware of any circumstance which, with notice or the passage of time,
or both, would give rise to an Insolvency Event with respect to it; and

 

(i)                                    it enters into and performs this letter
agreement on its own account and not as trustee or a nominee of any other
person.

 

\71175EXHIBIT 10.14

 

LOCK-UP AGREEMENT

 

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

 

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

 

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

 

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

 

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

 

1.                                      Interpretation

 

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

 

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

 

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

 

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

 

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

 

2.                                      Representations and Warranties of
Consenting Securityholder

 

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

 

 

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

 

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

 

(c)                                  No
person has any agreement or option, or any right or privilege (whether by law,
pre-emptive or contractual) capable of becoming an agreement or option, for the
purchase, acquisition or transfer of any of the Relevant Securities, or any
interest therein or right thereto, except pursuant to this Agreement and the
Asset Purchase Agreement dated as of July 24, 2006 between the Company (as
successor to Atlas Cromwell Ltd.) and Goldcorp Canada Ltd., and none of the
Relevant Securities are subject to any proxy, voting trust, vote pooling or
other agreement with respect to the right to vote the Relevant Securities, call
meetings of holders of the Company Common Shares or give consents or approvals
of any kind;

 

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

 

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

 

(f)                                   The execution and delivery
of this Agreement by Consenting
Securityholder and the performance by Consenting
Securityholder of its obligations
contemplated herein do not and will not (i) violate or conflict with any judgment, order,
notice, decree, statute, law, ordinance, rule or regulation applicable to
the Consenting Securityholder or any of its properties or assets, or (ii) constitute
a default, 

 

2

 

violation or breach
under any contract, commitment, agreement, arrangement, understanding or
restriction, except such violations, conflicts, defaults or breaches which
could not, individually or in the aggregate, impair the ability of the
Consenting Securityholder to perform its obligations under this Agreement;

 

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

 

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

 

3.                                      Purchaser’s Representations and
Warranties

 

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

 

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

 

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

 

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

 

(d)                                 The execution and delivery
of this Agreement by Purchaser
and the performance by Purchaser
of its obligations contemplated herein
do not and will not (i) violate or conflict with any judgment, order, notice, decree, statute, law,
ordinance, rule or regulation applicable to Purchaser or any of its
properties or assets, or (ii) constitute a default, violation or breach
under any contract, commitment, 

 

3

 

agreement,
arrangement, understanding or restriction, except such violations, conflicts,
defaults or breaches, which could not, individually or in the aggregate, impair
the ability of Purchaser to perform its obligations under this Agreement; and

 

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

 

4.                                      Consenting Securityholder Covenants

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

provided that the Consenting Securityholder may enter into, participate
and maintain discussions or negotiations with any Person(s) that makes or
is proposing to make an unsolicited bona
fide Acquisition Proposal that the Company Board of Directors has determined
in accordance with the Arrangement Agreement would be reasonably likely to
result in or lead to a Superior Proposal and who has entered into a confidentiality
agreement contemplated by Section 9.02(b) of the Arrangement
Agreement; provided that such Acquisition Proposal did not result from a breach
by the Consenting Securityholder of the provisions of this Agreement or result
from a breach by the Company of Article 9 of the Arrangement Agreement.

 

(c)                                  The
Consenting Securityholder hereby agrees to convert all of its issued and
outstanding Company Preferred Shares into Company Common Shares prior to the
Record Date in order to permit the Consenting Securityholder to vote such
Company Common Shares at the Company Meeting in accordance with this Agreement.
 The
Consenting Securityholder shall provide prior to the Record Date such materials
as reasonably requested by Purchaser to evidence the conversion of the Company
Preferred Shares into Company Common Shares.

 

(d)                                 Except
as contemplated under Section 4(h), the Consenting Securityholder hereby
irrevocably covenants, undertakes and agrees that it shall:

 

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

 

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

 

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

 

(C)                               against any action that
would result in any breach of any representation, warranty, covenant or
agreement or any other 

 

5

 

obligation of the
Company in the Arrangement Agreement or the Plan;

 

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

 

(iii)                               deliver, or cause to be
delivered, to the Company’s transfer agent, or as otherwise directed by the
Company, after receipt of proxy materials for, and no later than ten (10) days
before the date of, the Company Meeting or any other meeting of holders of
Company Share Capital called for the purpose of approving the Transaction, a
duly executed proxy directing that the Relevant Securities be voted at such
meeting in favour of the Transaction and all related matters in the form
attached as Schedule “C”.  The Consenting
Securityholder hereby revokes any and all previous proxies granted that may
conflict or be inconsistent with the matters set forth in this letter agreement
and the Consenting Securityholder agrees not to, directly or indirectly, grant
any proxy or power of attorney with respect to the matters set forth in this
Agreement;

 

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

 

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

 

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

 

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

 

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

 

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

 

(e)                                  The Consenting
Securityholder shall not, and hereby agrees not to:

 

6

 

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

 

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

 

(f)                                   (i) If, at any time within twenty-four (24) months
following the Effective Date, the Consenting Securityholder wishes to sell a
number of Purchaser Shares acquired in connection with the Arrangement or
thereafter on conversion of any Relevant Securities or otherwise, which
represent, in aggregate since the Effective Date, greater than or equal to
three percent (3%) of the then outstanding common shares of Purchaser (the “Sale Shares”), the Consenting
Securityholder will first give written notice to Purchaser (the “Sale Notice”), specifying the number of
Sale Shares the Consenting Securityholder wishes to sell and the minimum cash
floor price below which such Sale Shares may not be sold.  Purchaser shall have 48 hours from receipt of
the written notice to provide written notice to the Consenting Securityholder
that it has elected to find a purchaser for such Sale Shares.

 

(ii)                                  If Purchaser does not
provide written notice to the Consenting Securityholder, it shall be deemed to
have consented to the sale by the Consenting Securityholder.

 

(iii)                               If Purchaser elects to find
a purchaser(s) for the Sale Shares, it shall have five (5) calendar
days (the “Sale Response Period”)
from the date of its notice to the Consenting Securityholder in respect of the
election to find a purchaser(s) for such Sale Shares at or above the
specified cash floor price.

 

(iv)                              If Purchaser determines at
any time during the Sale Response Period not to find a purchaser(s) for
the Sale Shares, Purchaser shall immediately notify the Consenting
Securityholder of its decision and the Consenting Securityholder shall be
entitled to proceed to enter into a binding agreement with a potential
purchaser for the purchase and sale of the Sale Shares.

 

(v)                                 If Purchaser fails to find a
purchaser(s) for the Sale Shares within the time provided, the Consenting
Securityholder may rescind its offer to sell at any time prior to entering into
a binding agreement with a potential purchaser for the purchase and sale of the
Sale Shares.  If such purchaser(s) is
not an underwriter purchasing on a “bought deal” basis, the Consenting
Securityholder will be provided, prior to the expiry of the Sale 

 

7

 

Response Period, with an executable purchase agreement with respect to
the sale of such Sale Shares that is acceptable to the Consenting Shareholder.

 

(g)                                  The
Consenting Securityholder hereby confirms that, if the Transaction is
consummated in accordance with the terms of the Arrangement Agreement, the
Consenting Securityholder shall have no requirement for financial information
under Section 2.11 of the Asset Purchase Agreement dated as of July 24,
2006 between the Company (as successor to Atlas Cromwell Ltd.) and Goldcorp
Canada Ltd. and the restriction in such section on any future indebtedness
shall no longer apply.

 

(h)                                 Notwithstanding Sections 4(a) and
4(d), if (i) the Company has received an Acquisition Proposal and
the Company Board of Directors has determined that it is not a Superior
Proposal; (ii) the Consenting Securityholder has determined in good faith that such Acquisition Proposal is a
Superior Proposal; (iii) the
Consenting Securityholder desires to vote in favour of, tender the Relevant
Securities to or support the approval, execution or completion of such Superior
Proposal; and (iv) the Consenting Securityholder has provided Purchaser
with written notice of the Superior Proposal, which notice will include the
details of the Superior Proposal and the identity of the person making the
proposal, and Purchaser has not delivered a proposal to amend the terms of the
Arrangement Agreement to the Company and the Consenting Securityholder in order
to match or exceed such Superior Proposal within five Business Days of such
written notice, then the Consenting Securityholder shall have the ability to
vote in favour of, tender the Relevant Securities to or support the approval,
execution or completion of such Superior Proposal.  For the avoidance of doubt, if
the Consenting Securityholder votes in favour of, tenders the Relevant
Securities to or supports the approval, execution or completion of such Superior Proposal in accordance with
this Section 4(h), then the Consenting Securityholder shall be released
from its obligation to vote in favour of, tender the Relevant Securities
to or support the approval, execution or completion of the Transaction only to the extent such Superior Proposal remains
outstanding and has not been terminated.

 

(i)                                     The
Consenting Securityholder further agrees:

 

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

 

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

 

8

 

5.                                      Change in Nature of Transaction

 

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

 

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

 

6.                                      Termination

 

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

 

(i)                                     if the Effective Time does
not occur on or before December 31, 2010;

 

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

 

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

 

(iv)                              the Effective Time of the
Transaction.

 

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

 

(b)                                 Notwithstanding
the termination of this Agreement, the provision in Section 4(f) and
4(g) shall survive any such termination.

 

7.                                      Miscellaneous

 

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

 

9

 

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

 

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

 

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

 

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

 

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

 

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

 

(i)                                     If to Purchaser, at:

 

Thompson Creek Metals Company Inc.

Suite 810 - 26 West Dry Creek Circle

Littleton, CO, 80120

Attn: Dale Huffman

 

Main: (303) 761-8801

Fax: (303) 761-7420

 

10

 

(ii)                                  If to the Consenting
Securityholder, at:

 

Goldcorp Inc.

Suite 3400 - 666 Burrard Street

Vancouver BC V6C 2X8

Attn: Executive Vice President, Corporate
Development

 

Main: (604) 696-3000

Fax: (604) 696-3001

 

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

 

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

 

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

 

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

 

(k)                                 The
Parties waive any right to trial by jury in any proceeding arising out of or
relating to this Agreement or any of the transactions contemplated by this
Agreement, present or future, and whether sounding in contract, tort or
otherwise.  Any Party may file a copy of
this provision with any court as written evidence of the knowing, voluntary and
bargained for agreement between the Parties irrevocably to waive trial by jury,
and that any proceeding whatsoever between 

 

11

 

them relating to this Agreement or any of the transactions contemplated
by this Agreement shall instead be tried by a judge or judges sitting without a
jury.

 

(l)                                     Subject
to Applicable Law, the Consenting Securityholder agrees that it shall not make
any public announcement or statement with respect to this Agreement, the
Arrangement Agreement, the Plan or the Transaction without the prior written
approval of the Company and Purchaser, unless such announcement or statement
shall be required to meet timely disclosure or early warning obligations of the
Consenting Securityholder under securities laws and/or stock exchange rules.

 

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

 

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

 

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

 

12

 

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

 

 

	
   

  	
  THOMPSON CREEK METALS COMPANY
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  “Kevin Loughrey”

  
	
   

  	
   

  	
  Name:

  	
  Kevin Loughrey

  
	
   

  	
   

  	
  Title: 

  	
  Chairman, Chief Executive Officer and
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDCORP INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  “Chuck Jeannes”

  
	
   

  	
   

  	
  Name:

  	
  Chuck Jeannes

  
	
   

  	
   

  	
  Title:

  	
  President and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  “Timo Jauristo”

  
	
   

  	
   

  	
  Name:

  	
  Timo Jauristo

  
	
   

  	
   

  	
  Title:

  	
  Executive VP, Corporate Development

  

 

13

 

SCHEDULE A

 

ARRANGEMENT AGREEMENT

 

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

 

 

SCHEDULE B

 

RELEVANT SECURITIES

 

	
  Class of Securities

  	
   

  	
  Number of Securities Held

  	
   

  
	
  Company Common
  Shares

  	
   

  	
  27,273,000

  	
   

  
	
  Company Preferred
  Shares

  	
   

  	
  240,000,000

  	
   

  
	
  2010 Warrants

  	
   

  	
  13,636,500

  	
   

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCHEDULE C

 

PROXY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Terrane
Metals Corp.

 

Suite 1500
- 999 West Hastings Vancouver BC V6C 2W2

 

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

 

P R O X Y

 

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

 

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

 

1.                                      TERRANE ARRANGEMENT RESOLUTION

 

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

 

FOR o    AGAINST o

 

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

 

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

 

THE UNDERSIGNED HEREBY REVOKES ANY PRIOR PROXY OR
PROXIES.

 

DATED:                                                        ,
2010.

 

	
   

  	
   

  
	
   

  	
   

  
	
  Signature of Securityholder

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Please print name here)

  	
   

  

 

 

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

 

 

Affix label here

Name of Shareholder

Address of Shareholder

 

 

(Please advise the
Corporation of any change of address)

 

 

NOTES:

 

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

 

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

 

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

 

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

 

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

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