Document:

<PAGE>
                                                                     EXHIBIT 4.1

                                WARRANT INDENTURE

                   PROVIDING FOR THE ISSUE OF UP TO 8,050,000
                             SHARE PURCHASE WARRANTS

                                     BETWEEN

                           GOLDEN STAR RESOURCES LTD.

                                     - AND -

                            CIBC MELLON TRUST COMPANY

                            DATED AS OF JULY 18, 2002

<PAGE>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                               PAGE

<S>                                                                                                           <C>
ARTICLE 1.........................................................................................................1
INTERPRETATION....................................................................................................1
        1.1    Definitions........................................................................................1
        1.2    Gender and Number..................................................................................5
        1.3    Interpretation not Affected by Headings, etc.......................................................5
        1.4    Day not a Business Day.............................................................................5
        1.5    Time of the Essence................................................................................5
        1.6    Currency...........................................................................................5
        1.7    Applicable Law.....................................................................................6
ARTICLE 2.........................................................................................................6
ISSUE OF PURCHASE WARRANTS........................................................................................6
        2.1    Issue of Purchase Warrants.........................................................................6
        2.2    Form and Terms of Purchase Warrants................................................................6
        2.3    Warrantholder not a Shareholder....................................................................7
        2.4    Purchase Warrants to Rank Pari Passu...............................................................7
        2.5    Signing of Warrant Certificates....................................................................7
        2.6    Certification by the Trustee.......................................................................7
        2.7    Issue in Substitution for Warrant Certificates Lost, etc...........................................7
        2.8    Exchange of Warrant Certificates...................................................................8
        2.9    Charges for Exchange...............................................................................8
        2.10   Transfer and Ownership of Purchase Warrants........................................................8
ARTICLE 3.........................................................................................................9
EXERCISE OF PURCHASE WARRANTS.....................................................................................9
        3.1    Intentionally Left Blank...........................................................................9
        3.2    Method of Exercise of Purchase Warrants............................................................9
        3.3    Effect of Exercise of Purchase Warrants...........................................................11
        3.4    Partial Exercise of Purchase Warrants; Fractions..................................................11
        3.5    Extension of Time of Expiry.......................................................................12
        3.6    Expiration of Purchase Warrants...................................................................12
        3.7    Cancellation of Surrendered Purchase Warrants.....................................................12
        3.8    Accounting and Recording..........................................................................12
        3.9    Postponement of Delivery of Certificates..........................................................12
ARTICLE 4........................................................................................................13
ADJUSTMENT OF NUMBER OF COMMON SHARES............................................................................13
        4.1    Adjustment of Number of Common Shares.............................................................13
        4.2    Other Action......................................................................................17
        4.3    Entitlement to Shares on Exercise of Purchase Warrant.............................................17
        4.4    No Adjustment for Stock Options...................................................................18
        4.5    Determination by Corporation's Auditors...........................................................18
        4.6    Proceedings Prior to any Action Requiring Adjustment..............................................18
        4.7    Certificate of Adjustment.........................................................................18
        4.8    Notice of Special Matters.........................................................................18
        4.9    No Action after Notice............................................................................19
</Table>

                                                                               i
<PAGE>

<Table>
<S>                                                                                                          <C>
        4.10   Protection of Trustee.............................................................................19
ARTICLE 5........................................................................................................19
RIGHTS OF THE CORPORATION AND COVENANTS..........................................................................19
        5.1    Optional Purchases by the Corporation.............................................................19
        5.2    General Covenants.................................................................................20
        5.3    Trustee's Remuneration and Expenses...............................................................21
        5.4    Securities Qualification Requirements.............................................................21
        5.5    Performance of Covenants by Trustee...............................................................22
ARTICLE 6........................................................................................................22
ENFORCEMENT......................................................................................................22
        6.1    Suits by Warrantholders...........................................................................22
        6.2    Immunity of Shareholders, etc.....................................................................23
        6.3    Limitation of Liability...........................................................................23
        6.4    Waiver of Default.................................................................................23
ARTICLE 7........................................................................................................24
MEETINGS OF WARRANTHOLDERS.......................................................................................24
        7.1    Right to Convene Meetings.........................................................................24
        7.2    Notice............................................................................................24
        7.3    Chairman..........................................................................................24
        7.4    Quorum............................................................................................24
        7.5    Power to Adjourn..................................................................................25
        7.6    Show of Hands.....................................................................................25
        7.7    Poll and Voting...................................................................................25
        7.8    Regulations.......................................................................................25
        7.9    Corporation and Trustee May be Represented........................................................26
        7.10   Powers Exercisable by Extraordinary Resolution....................................................26
        7.11   Meaning of Extraordinary Resolution...............................................................28
        7.12   Powers Cumulative.................................................................................28
        7.13   Minutes...........................................................................................29
        7.14   Instruments in Writing............................................................................29
        7.15   Binding Effect of Resolutions.....................................................................29
        7.16   Holdings by Corporation or Subsidiaries of Corporation Disregarded................................29
ARTICLE 8........................................................................................................30
SUPPLEMENTAL INDENTURES..........................................................................................30
        8.1    Provision for Supplemental Indentures for Certain Purposes........................................30
        8.2    Successor Corporations............................................................................31
ARTICLE 9........................................................................................................31
CONCERNING THE TRUSTEE...........................................................................................31
        9.1    Trust Indenture Legislation.......................................................................31
        9.2    Rights and Duties of Trustee......................................................................31
        9.3    Evidence, Experts and Advisers....................................................................32
        9.4    Documents, Monies, etc. Held by Trustee...........................................................33
        9.5    Actions by Trustee to Protect Interest............................................................34
        9.6    Trustee Not Required to Give Security.............................................................34
        9.7    Protection of Trustee.............................................................................34
        9.8    Replacement of Trustee; Successor by Merger.......................................................34
        9.9    Conflict of Interest..............................................................................35
        9.10   Indemnity of Trustee..............................................................................35
        9.11   Acceptance of Trust...............................................................................36
        9.12   Trustee Not to be Appointed Receiver..............................................................36
        9.13   Purchase Warrant Register.........................................................................36
</Table>

                                                                              ii
<PAGE>

<Table>
<S>                                                                                                          <C>
        9.14   Register Open for Inspection......................................................................36
        9.15   Trustee Not Required to Give Notice of Default....................................................37
ARTICLE 10.......................................................................................................37
GENERAL .........................................................................................................37
        10.1   Notice to the Corporation and the Trustee.........................................................37
        10.2   Notice to Warrantholders..........................................................................38
        10.3   Ownership and Transfer of Purchase Warrants.......................................................38
        10.4   Evidence of Ownership.............................................................................39
        10.5   Counterparts......................................................................................39
        10.6   Satisfaction and Discharge of Indenture...........................................................39
        10.7   Successors........................................................................................40
        10.8   Sole Benefit of Parties and Warrantholders........................................................40
        10.9   Common Shares or Purchase Warrants Owned by the Corporation or its Subsidiaries -
               Certificate to be Provided........................................................................40
</Table>

                                                                             iii

<PAGE>

THIS WARRANT INDENTURE is made as of the 18th day of July, 2002.

BETWEEN:

         GOLDEN STAR RESOURCES LTD., a body corporate amalgamated under the laws
         of Canada having an office in Littleton, in the State of Colorado
         (hereafter referred to as the "CORPORATION")

         - and -

         CIBC MELLON TRUST COMPANY, a trust company incorporated under the laws
         of Canada and authorized to carry on business in all provinces of
         Canada (hereinafter referred to as the "TRUSTEE")

WHEREAS:

A. the Corporation has agreed to issue up to 16,100,000 Units pursuant to the
Underwriting Agreement, each Unit entitling the holder to acquire one Common
Share and one half of one Purchase Warrant;

B. the Corporation is duly authorized to create and issue the Purchase Warrants
to be issued as herein provided;

C. one whole Purchase Warrant shall, subject to adjustment, entitle the holder
thereof to acquire one Common Share upon payment of the Exercise Price, upon the
terms and conditions herein set forth;

D. all acts and deeds necessary have been done and performed to make the
Purchase Warrants, when issued as provided in this Indenture, legal, valid and
binding upon the Corporation with the benefits and subject to the terms of this
Indenture; and

E. the foregoing statements of fact and recitals are made by the Corporation and
not the Trustee;

NOW THEREFORE, the parties hereto agree as follows:

                                    ARTICLE 1
                                 INTERPRETATION

1.1      DEFINITIONS

In this Indenture, including the recitals and schedules hereto, and in all
indentures supplemental hereto:

a.       "AMEX" means the American Stock Exchange LLC;

                                                                               1
<PAGE>

b.       "APPLICABLE LEGISLATION" means the provisions of any statutes of Canada
         and a province thereof, and the regulations under those statutes,
         relating to trust indentures or to the rights, duties and obligations
         of trustees and of corporations under trust indentures, to the extent
         that such provisions are at the time in force and applicable to this
         Indenture;

c.       "BUSINESS DAY" means a day which is not Saturday or Sunday or a legal
         holiday in the United States or in the City of Vancouver, British
         Columbia;

d.       "CLOSING" means the completion of the purchase and sale of Units other
         than Units issued upon exercise of the Over-Allotment Option, pursuant
         to the Prospectus;

e.       "CLOSING DATE" means the day the Closing occurs;

f.       "COMMON SHARES" means fully paid and non-assessable common shares of
         the Corporation as presently constituted provided that in the event of
         an adjustment of subscription rights pursuant to Article 4, then
         "Common Share" shall thereafter mean a share or other security or
         property purchasable upon exercise of one Purchase Warrant as a result
         of any such adjustment;

g.       "CORPORATION'S AUDITORS" means a firm of chartered accountants duly
         appointed as auditors of the Corporation;

h.       "COUNSEL" means a barrister or solicitor or a firm of barristers and
         solicitors retained by the Trustee or retained by the Corporation, the
         Underwriters or the U.S. Agents and acceptable to the Trustee, acting
         reasonably;

i.       "CURRENT MARKET PRICE" means at any date the weighted average closing
         price at which the Common Shares have been traded on AMEX during the 30
         consecutive Trading Days ending one Trading Day before such date; and
         in the event the Common Shares are not listed on AMEX but are listed on
         another stock exchange or stock exchanges in Canada or the United
         States, the foregoing references to AMEX shall be deemed to be
         references to such other stock exchange or, if more than one, to such
         one as shall have the highest trading volume during such 30 consecutive
         trading day period, and in the event the Common Shares are not so
         traded on any stock exchange in Canada or the United States, the
         "Current Market Price" thereof shall be determined by the board of
         directors of the Corporation who shall rely upon the advice of
         independent financial agents with respect thereto;

j.       "DIRECTOR" means a director of the Corporation for the time being and,
         unless otherwise specified herein, reference to action "by the
         directors" means action by the directors of the Corporation as a board
         or, whenever duly empowered, action by any committee of such board;

                                                                               2
<PAGE>

k.       "EXERCISE DATE" means, with respect to any Purchase Warrant, the date
         on which the Warrant Certificate representing such Purchase Warrant is
         surrendered for exercise together with full payment of the Exercise
         Price, in accordance with Article 3;

l.       "EXERCISE PRICE" means, with respect to a Purchase Warrant, the price
         at which a Common Share may be purchased upon the exercise of a
         Purchase Warrant, the initial Exercise Price being $2.28, subject to
         adjustment as provided in Article 4;

m.       "EXPIRY DATE" means the date which is the two year anniversary of the
         Closing Date;

n.       "EXTRAORDINARY RESOLUTION" has the meaning set forth in section 7.11;

o.       "FILING JURISDICTIONS" means the Provinces of Alberta, British
         Columbia, Manitoba and Ontario;

p.       "ISSUE DATE" means the date upon which the Purchase Warrants are
         issued;

q.       "OVER-ALLOTMENT OPTION" means a non-transferable option to be granted
         to the Underwriters, entitling the Underwriters to purchase up to
         2,100,000 Units at a price of $1.90 per Unit, exercisable within 30
         days of the Closing Date to cover the Underwriters' over-allotments, if
         any;

r.       "PERSON" means an individual, body corporate, partnership, trust,
         trustee, executor, administrator, legal representative or any
         unincorporated organization;

s.       "PROSPECTUS" means collectively the final prospectus of the Corporation
         dated July 17, 2002 filed in the Filing Jurisdictions and the final
         form of the prospectus included as part of the Corporation's
         registration statement on Form S-3 (file No. 333-91666) when such
         registration statement became effective qualifying or registering the
         offering for sale to the public 14,000,000 Units at a price of $1.90
         per Unit and pursuant to which an additional up to 2,100,000 Units are
         issuable to the Underwriters pursuant to the Over-Allotment Option;

t.       "PURCHASE WARRANT" means one whole purchase warrant created and
         authorized by, and issuable under, this Indenture. Each whole purchase
         warrant will entitle the Warrantholder to acquire one common share of
         the Corporation upon payment of the Exercise Price;

u.       "SECURITIES COMMISSION" means the Securities Commission or similar
         regulatory authority in each of the Filing Jurisdictions;

v.       "SHAREHOLDER" means a holder of record of one or more Common Shares;

w.       "SUBSIDIARY" or "SUBSIDIARY OF THE CORPORATION" means any corporation
         of which more than 50% of the outstanding voting shares are owned,
         directly or indirectly, by or for the Corporation, provided that the
         ownership of such shares confers the right to elect

                                                                               3
<PAGE>

         at least a majority of the board of directors of such corporation and
         includes any corporation in like relation to a Subsidiary;

x.       "TSX" means the Toronto Stock Exchange;

y.       "TIME OF EXPIRY" means 4:30 p.m. (Vancouver time) on the Expiry Date;

z.       "TRADING DAY" means, with respect to a stock exchange, a day on which
         such exchange is open for the transaction of business and, with respect
         to the over-the-counter market, means a day on which the TSX or the
         AMEX is open for the transaction of business;

aa.      "TRANSFER AGENT" means the transfer agent for the time being of the
         Common Shares;

bb.      "TRUSTEE" means CIBC Mellon Trust Company or its successors from time
         to time in the trust hereby created;

cc.      "UNDERWRITING AGREEMENT" means the underwriting agreement effective
         July 17, 2002 between the Corporation and the Underwriters relating to
         the offering of Units;

dd.      "UNDERWRITERS" means collectively, Canaccord Capital Corporation and
         BMO Nesbitt Burns Inc.;

ee.      "UNITS" means units as described in the Prospectus, each unit
         consisting of one Common Share and one half of one Purchase Warrant;

ff.      "U.S. AGENCY AGREEMENT" means the agency agreement effective July 17,
         2002 between the Corporation and the U.S. Agents relating to the
         offering of Units;

gg.      "U.S. AGENTS" means, collectively, Canaccord Capital Corporation (USA)
         Inc. and BMO Nesbitt Burns Corp.;

hh.      "U.S. SECURITIES ACT" means the United States Securities Act of 1933,
         as amended;

ii.      "WARRANT AGENCY" means the principal office of the Trustee in the City
         of Vancouver, or such other place as may be designated in accordance
         with subsection 3.2(c);

jj.      "WARRANT CERTIFICATE" means a certificate evidencing Purchase Warrants;

kk.      "WARRANTHOLDERS", or "HOLDERS" without reference to Common Shares,
         means the persons who are registered holders of Purchase Warrants;

ll.      "WARRANTHOLDERS' REQUEST" means an instrument signed in one or more
         counterparts by Warrantholders entitled to acquire in the aggregate not
         less than 25% of the aggregate number of Common Shares which could be
         acquired pursuant to all Purchase Warrants then unexercised and
         outstanding, requesting the Trustee to take some action or proceeding
         specified therein;

                                                                               4
<PAGE>

mm.      "WARRANT INDENTURE", "INDENTURE", "HEREIN", "HEREBY", "HEREOF" and
         similar expressions mean and refer to this indenture and any other
         indenture, deed or instrument supplemental hereto, and the expressions
         "ARTICLE", "SECTION", "SUBSECTION" and "PARAGRAPH" followed by a
         number, letter or both mean and refer to the specified article,
         section, subsection or paragraph of this Indenture;

nn.      "WARRANT PROSPECTUS" means the form of Prospectus included in the
         registration statement referred to in Section 5.2(k), as amended from
         time to time.

oo.      "WARRANT REGISTER" means the register maintained by the Trustee for the
         Purchase Warrants; and

pp.      "WRITTEN ORDER OF THE CORPORATION", "WRITTEN REQUEST OF THE
         CORPORATION", "WRITTEN CONSENT OF THE CORPORATION" and "CERTIFICATE OF
         THE CORPORATION" mean, respectively, a written order, request, consent
         and certificate or other document signed in the name of the Corporation
         by its President, Chief Financial Officer, a Vice-President or
         Secretary, and may consist of one or more instruments so executed.

1.2      GENDER AND NUMBER

Unless herein otherwise expressly provided or unless the context otherwise
requires, words importing the singular include the plural and vice versa and
words importing gender include all genders.

1.3      INTERPRETATION NOT AFFECTED BY HEADINGS, ETC.

The division of this Indenture into articles and sections, the provision of a
table of contents and the insertion of headings are for convenience of reference
only and shall not affect the construction or interpretation of this Indenture.

1.4      DAY NOT A BUSINESS DAY

In the event that any day on or before which any action is required to be taken
hereunder is not a Business Day, then such action shall be required to be taken
at or before the requisite time on the next succeeding day that is a Business
Day.

1.5      TIME OF THE ESSENCE

Time shall be of the essence of this Indenture.

1.6      CURRENCY

Except as otherwise stated, all dollar amounts herein are expressed in Canadian
currency. If a reference is made to a dollar amount that is expressed in U.S.
currency, such an amount will be converted into Canadian currency based on the
Bank of Canada noon rate.

                                                                               5
<PAGE>

1.7      APPLICABLE LAW

This Indenture and the Warrant Certificates shall be construed in accordance
with the laws of the Province of Alberta and the federal laws of Canada
applicable therein and shall be treated in all respects as Alberta contracts.

                                    ARTICLE 2
                           ISSUE OF PURCHASE WARRANTS

2.1      ISSUE OF PURCHASE WARRANTS

a.       A maximum of 8,050,000 Purchase Warrants are hereby created and
         authorized to be issued upon the terms and conditions herein set forth.

b.       7,000,000 Purchase Warrants shall be issuable at the Closing pursuant
         to the terms of the Underwriting Agreement relating to the sale of the
         Units, and an additional 1,050,000 Purchase Warrants may be issuable on
         exercise of the Over-Allotment Option. All such Purchase Warrants shall
         be issuable in such names and denominations as the Corporation may
         specify in writing to the Trustee not less than five Business Days
         prior to the issue date thereof.

c.       The Warrant Certificates (including all replacements issued in
         accordance with this Indenture) shall be substantially in the form set
         out in Schedule "A" hereto, shall bear such distinguishing letters and
         numbers as the Corporation may, with the approval of the Trustee,
         prescribe, and shall be issuable in any denomination, excluding
         fractions.

d.       The Warrant Certificates and the Purchase Warrants represented thereby
         shall be registered, together with the name and address of the
         registered holder thereof, in the Warrant Register maintained by the
         Trustee.

2.2      FORM AND TERMS OF PURCHASE WARRANTS

a.       Each whole Purchase Warrant authorized to be issued hereunder shall
         entitle the holder thereof, upon exercise, together with payment of the
         Exercise Price, to acquire one Common Share, subject to adjustment in
         accordance with Article 4, at any time after the Issue Date and until
         the Time of Expiry.

b.       No fractional Purchase Warrants shall be issued or otherwise provided
         for hereunder. If any fraction of a Purchase Warrant would otherwise be
         issuable, the number of Purchase Warrants shall be rounded down to the
         nearest whole Purchase Warrant.

c.       The Exercise Price and the number of Common Shares that may be acquired
         pursuant to the exercise of the Purchase Warrants shall be adjusted in
         the events and in the manner specified in Article 4.

                                                                               6
<PAGE>

2.3      WARRANTHOLDER NOT A SHAREHOLDER

Nothing in this Indenture or in the holding of a Purchase Warrant or Warrant
Certificate or otherwise, shall, in itself, confer or be construed as conferring
upon a Warrantholder any right or interest whatsoever as a Shareholder or as any
other shareholder of the Corporation, including, but not limited to, the right
to vote at, to receive notice of, or to attend, meetings of shareholders or any
other proceedings of the Corporation, or the right to receive dividends and
other distributions.

2.4      PURCHASE WARRANTS TO RANK PARI PASSU

All Purchase Warrants shall rank pari passu, whatever may be the actual date of
issue thereof.

2.5      SIGNING OF WARRANT CERTIFICATES

The Warrant Certificates shall be signed by any one director or officer of the
Corporation and need not be under seal. The signature of any such director or
officer may be mechanically reproduced in facsimile and Warrant Certificates
bearing such facsimile signatures shall be binding upon the Corporation as if
they had been manually signed by such director or officer. Notwithstanding that
any person whose manual or facsimile signature appears on any Warrant
Certificate as a director or officer may no longer hold office at the date
issued of such Warrant Certificate or at the date of certification or delivery
thereof, any Warrant Certificate signed as aforesaid shall, subject to section
2.6, be valid and binding upon the Corporation and the holder thereof shall be
entitled to the benefits of this Indenture.

2.6      CERTIFICATION BY THE TRUSTEE

a.       No Warrant Certificate shall be issued or, if issued, shall be valid
         for any purpose or entitle the holder to the benefits hereof or thereof
         until it has been certified by manual signature by or on behalf of the
         Trustee and such certification by the Trustee upon any Warrant
         Certificate shall be conclusive evidence as against the Corporation
         that the Warrant Certificate so certified has been duly issued
         hereunder and that the holder is entitled to the benefits hereof.

b.       The certification of the Trustee on a Warrant Certificate issued
         hereunder shall not be construed as a representation or warranty by the
         Trustee as to the validity of this Indenture or the Warrant Certificate
         (except the due certification thereof) and the Trustee shall in no
         respect be liable or answerable for the use made of the Warrant
         Certificate or any of them or of the consideration therefor except as
         otherwise specified herein.

2.7      ISSUE IN SUBSTITUTION FOR WARRANT CERTIFICATES LOST, ETC.

a.       In case any Warrant Certificate becomes mutilated or is lost, destroyed
         or stolen, the Corporation, subject to applicable law, shall issue and
         upon written instructions from the Corporation the Trustee shall
         certify and deliver a new Warrant Certificate of like tenor

                                                                               7
<PAGE>

         as the one mutilated, lost, destroyed or stolen in exchange for and in
         place of and upon cancellation of such mutilated Warrant Certificate,
         or in lieu of and in substitution for such lost, destroyed or stolen
         Warrant Certificate, and the substitute Warrant Certificate shall be in
         a form approved by the Trustee, and the Purchase Warrants evidenced
         thereby shall be entitled to the benefits hereof and shall rank equally
         in accordance with its terms with all other Purchase Warrants issued or
         to be issued hereunder.

b.       The applicant for the issue of a new Warrant Certificate pursuant to
         this section 2.7 shall bear the cost of the issue thereof (which is
         payable in advance) and in case of loss, destruction or theft shall
         furnish, as a condition precedent to the issue thereof, to the Trustee
         such evidence of ownership and of the loss, destruction or theft of the
         Warrant Certificate so lost, destroyed or stolen as shall be
         satisfactory to the Trustee, in its sole discretion, and such applicant
         may also be required to furnish an indemnity or security in amount and
         form satisfactory to the Trustee, in its sole discretion, and shall pay
         the reasonable charges of the Trustee in connection therewith.

2.8      EXCHANGE OF WARRANT CERTIFICATES

a.       One or more Warrant Certificates representing any number of Purchase
         Warrants may, upon compliance with the reasonable requirements of the
         Trustee, be exchanged for another Warrant Certificate or Warrant
         Certificates representing the same aggregate number of Purchase
         Warrants as represented by the Warrant Certificate or Warrant
         Certificates so exchanged.

b.       Warrant Certificates may be exchanged only at the Warrant Agency or at
         any other place that is designated by the Corporation with the approval
         of the Trustee.

2.9      CHARGES FOR EXCHANGE

Except as otherwise provided herein, the Warrant Agency may charge to the holder
requesting an exchange a reasonable sum for each new Warrant Certificate issued
in exchange for a Warrant Certificate(s), and payment of such charges and
reimbursement of the Trustee or the Corporation for any and all stamp taxes or
governmental or other charges required to be paid shall be made by such holder
as a condition precedent to such exchange.

2.10     TRANSFER AND OWNERSHIP OF PURCHASE WARRANTS

a.       The Purchase Warrants may only be transferred on the Warrant Register
         kept at the Warrant Agency only by the holder or its legal
         representative or its attorney duly appointed by an instrument in
         writing in form and execution satisfactory to the Trustee and only upon
         surrendering to the Trustee at the Warrant Agency the Warrant
         Certificate or Warrant Certificates representing the Purchase Warrants
         to be transferred, with the transfer form on the back thereof duly
         completed and executed, signed by the Warrantholder or by the duly
         appointed legal representative thereof or a duly authorized attorney,
         together with evidence of authority of any such legal representative or
         attorney and with such signature properly guaranteed, and upon
         compliance with:

                                                                               8
<PAGE>

         (i)      the conditions herein;

         (ii)     such reasonable requirements as the Trustee may prescribe; and

         (iii)    all applicable securities legislation and requirements of
                  regulatory authorities relating to the transferability of the
                  Purchase Warrants or restrictions thereon;

         and such transfer shall be duly noted in the Warrant Register by the
         Trustee. Upon compliance with such requirements, the Trustee shall
         issue to the transferee a Warrant Certificate representing the Purchase
         Warrants transferred. Such new Warrant Certificate shall be sent by
         first class mail or held for pick up by the transferee in accordance
         with the instructions given on the transfer form and, if no such
         instructions are given, shall be sent by first class mail to the
         address of the transferee appearing on the transfer form. If less than
         all the Purchase Warrants represented by a Warrant Certificate are
         transferred, the Trustee shall issue a new Warrant Certificate
         representing those Purchase Warrants not transferred in the same name
         as the name appearing on the Warrant Certificate surrendered for
         transfer. Such new Warrant Certificate shall be sent by first class
         mail or held for pick up in accordance with instructions given on the
         transfer form and, if no instructions are given, shall be sent by first
         class mail to the address of the holder of the Purchase Warrants
         surrendered for transfer appearing on the Warrant Register.

b.       The Corporation and the Trustee may deem and treat the registered owner
         of any Purchase Warrant as the beneficial owner thereof for all
         purposes and such person will, for all purposes of this Indenture be
         and be deemed the absolute owner thereof and neither the Corporation
         nor the Trustee shall be affected by any notice or knowledge to the
         contrary, except as required by statute or a court of competent
         jurisdiction.

c.       Subject to the provisions of this Indenture and applicable law, the
         Warrantholder shall be entitled to the rights and privileges attaching
         to the Purchase Warrants and the issue of Common Shares upon the
         exercise of Purchase Warrants by any Warrantholder in accordance with
         the terms and conditions herein contained shall discharge all
         responsibilities of the Corporation and the Trustee with respect to
         such Purchase Warrants and neither the Corporation nor the Trustee
         shall be bound to inquire into the title of any such holder.

                                    ARTICLE 3
                          EXERCISE OF PURCHASE WARRANTS

3.1      INTENTIONALLY LEFT BLANK

3.2      METHOD OF EXERCISE OF PURCHASE WARRANTS

a.       The holder of any Purchase Warrant may exercise the right conferred on
         such holder to acquire Common Shares by surrendering, after the Issue
         Date and prior to the Time of

                                                                               9
<PAGE>

         Expiry, to the Trustee the Warrant Certificate with a duly completed
         and executed exercise form, together with a wire transfer, certified
         cheque, money order or bank draft, in lawful money of Canada payable to
         or to the order of the Corporation for the Exercise Price for the
         Common Shares subscribed for.

         A Warrant Certificate with the duly completed and executed exercise
         form referred to in this subsection shall, together with the payment of
         the Exercise Price for the Common Shares subscribed for, be deemed to
         be surrendered only upon personal delivery thereof or, if sent by mail
         or other means of transmission, upon actual receipt thereof by, in each
         case, the Trustee.

b.       Any exercise form referred to in subsection 3.2(a) shall be signed by
         the Warrantholder or by the duly appointed legal representative thereof
         or a duly authorized attorney, with evidence of authority of any such
         legal representative or attorney attached thereto with such signature
         properly guaranteed, and shall specify:

         (i)      the number of Common Shares which the holder wishes to acquire
                  (being not more than those which the holder is entitled to
                  acquire pursuant to the Warrant Certificate(s) surrendered);

         (ii)     the person or persons in whose name or names such Common
                  Shares are to be issued;

         (iii)    the address or addresses of such person(s); and

         (iv)     the number of Common Shares to be issued to each such person
                  if more than one is so specified.

         If any of the Common Shares subscribed for are to be issued to a person
         or persons other than the Warrantholder, a transfer form must be
         completed by the current Warrantholder, and then each such person shall
         complete and deliver an exercise form in the form on the back of the
         Warrant Certificate and the Warrantholder shall pay to the Corporation
         or the Trustee on behalf of the Corporation, all applicable transfer or
         similar taxes and the Corporation shall not be required to issue or
         deliver certificates evidencing Common Shares unless or until such
         Warrantholder shall have paid to the Corporation, or the Trustee on
         behalf of the Corporation, the amount of such tax or shall have
         established to the satisfaction of the Corporation that such tax has
         been paid or that no tax is due.

c.       In connection with the exchange of Warrant Certificates and exercise of
         Purchase Warrants and in compliance with such other terms and
         conditions hereof as may be required, the Corporation has appointed the
         principal offices of the Trustee in Vancouver as the agency at which
         Warrant Certificates may be surrendered for exchange or at which
         Purchase Warrants may be exercised. The Corporation may from time to
         time designate alternate or additional places as the Warrant Agency
         subject to receiving the consent of the Trustee of any change of the
         Warrant Agency.

                                                                              10
<PAGE>

d.       The Trustee will only disburse monies to the Corporation according to
         this Indenture only to the extent that monies have been deposited with
         it.

3.3      EFFECT OF EXERCISE OF PURCHASE WARRANTS

a.       Upon compliance by the holder of any Warrant Certificate with the
         provisions of section 3.2, and subject to section 3.4, the Common
         Shares subscribed for shall be deemed to have been issued and the
         person or persons to whom such Common Shares are to be issued shall be
         deemed to have become the holder or holders of record of such Common
         Shares on the Exercise Date unless the transfer registers of the
         Corporation shall be closed on such date, in which case the Common
         Shares subscribed for shall be deemed to have been issued, and such
         person or persons deemed to have become the holder or holders of record
         of such Common Shares, on the date on which such transfer registers are
         reopened.

b.       Within five Business Days after the Exercise Date with respect to a
         Purchase Warrant, the Corporation shall cause to be mailed to the
         person or persons in whose name or names the Common Shares so
         subscribed for have been issued, as specified in the subscription, at
         the address specified in such subscription or, if so specified in such
         subscription, cause to be delivered to such person or persons at the
         Warrant Agency where the Warrant Certificate was surrendered, a
         certificate or certificates for the appropriate number of Common Shares
         subscribed for together with a copy of the current form of Warrant
         Prospectus, in the form most recently provided to the Trustee. In the
         absence of instructions to the contrary, such certificates shall be
         issued in the name of the registered holder of the surrendered Warrant
         Certificate and shall be mailed by first class mail to the address of
         such Warrantholder appearing on the Warrant Register.

3.4      PARTIAL EXERCISE OF PURCHASE WARRANTS; FRACTIONS

a.       The holder of any Purchase Warrants may acquire a number of Common
         Shares less than the number which the holder is entitled to acquire
         pursuant to the surrendered Warrant Certificate(s). In the event of any
         exercise of a number of Purchase Warrants less than the number which
         the holder is entitled to exercise, the holder of the Purchase Warrants
         upon such exercise shall also be entitled to receive, without charge
         therefor, a new Warrant Certificate(s) in respect of the balance of the
         Purchase Warrants represented by the surrendered Warrant Certificate(s)
         not then exercised. In the absence of written instructions from the
         registered holder to the contrary, such new Warrant Certificate shall
         be issued in the name of the registered holder of the surrendered
         Warrant Certificate and shall be mailed by first class mail to the
         address of such Warrantholder appearing on the Warrant Register.

b.       Notwithstanding anything herein contained, including any adjustment
         provided for in Article 4, the Corporation shall not be required, upon
         the exercise of any Purchase Warrants, to issue fractions of Common
         Shares or to distribute certificates which evidence fractional Common
         Shares. The holder shall not be entitled to any compensation or other
         right in lieu of fractional Common Shares.

                                                                              11
<PAGE>

3.5      EXTENSION OF TIME OF EXPIRY

If the Corporation gives notice to a Warrantholder that the exercise of Purchase
Warrants will not be honoured, the Expiry Date shall be deferred by the number
of days from the date of such notice until the Trustee receives notice that the
exercise of Purchase Warrants may again be honoured.

3.6      EXPIRATION OF PURCHASE WARRANTS

Immediately after the Time of Expiry, all rights under any Purchase Warrant in
respect of which the right of acquisition herein and therein provided for shall
not have been exercised shall cease and terminate and such Purchase Warrant
shall be void and of no further force or effect.

3.7      CANCELLATION OF SURRENDERED PURCHASE WARRANTS

All Warrant Certificates surrendered at the Warrant Agency pursuant to sections
2.7, 2.8, 3.2, 3.4 or 5.1 shall be returned to the Trustee for cancellation and,
after the expiry of any period of retention prescribed by law, destroyed by the
Trustee. Upon written request by the Corporation, the Trustee shall furnish to
the Corporation a destruction certificate identifying the Warrant Certificates
so destroyed and the number of Purchase Warrants evidenced thereby.

3.8      ACCOUNTING AND RECORDING

a.       The Trustee shall as soon as practically (or reasonably) possible
         notify the Corporation when Purchase Warrants are exercised and forward
         to the Corporation at the times hereinafter set forth (or into an
         account or accounts of the Corporation with the bank or trust
         corporation designated by the Corporation for that purpose) all money
         received on exercise of Purchase Warrants. The Trustee shall forward
         such money to the Corporation (or into an account or accounts of the
         Corporation with the bank or trust corporation designated by the
         Corporation for that purpose) within five Business Days from the date
         of receipt thereof.

b.       The Trustee shall record the particulars of the Purchase Warrants
         exercised which shall include the names and addresses of the persons
         who have exercised Purchase Warrants, the number of Common Shares
         subscribed for upon such exercise, the Exercise Date and the Exercise
         Price. Upon request of the Corporation, the Trustee shall provide
         within five Business Days such particulars in writing to the
         Corporation.

3.9      POSTPONEMENT OF DELIVERY OF CERTIFICATES

The Corporation shall not be required to deliver certificates for Common Shares
during the period when the stock transfer books of the Corporation are closed
due to an impending meeting of shareholders or a proposed payment of dividends
or for any other purpose and in the event of a surrender of a Warrant
Certificate for the purchase of Common Shares during such period, the

                                                                              12
<PAGE>

delivery of certificates may be postponed for a period not exceeding ten days
after the date of the re-opening of the stock transfer books.

                                    ARTICLE 4
                      ADJUSTMENT OF NUMBER OF COMMON SHARES

4.1      ADJUSTMENT OF NUMBER OF COMMON SHARES

The acquisition rights in effect at any date attaching to the Purchase Warrants
shall be subject to adjustment from time to time as follows:

a.       if and whenever at any time from the date hereof and prior to the Time
         of Expiry, the Corporation shall:

         (i)      subdivide, redivide or change its outstanding Common Shares
                  into a greater number of shares;

         (ii)     reduce, combine or consolidate its outstanding Common Shares
                  into a smaller number of shares; or

         (iii)    issue Common Shares (or securities convertible into Common
                  Shares) to all or substantially all of the holders of
                  outstanding Common Shares by way of a stock dividend (other
                  than in lieu of Dividends Paid in the Ordinary Course);

         the Exercise Price in effect on the effective date of such subdivision
         or consolidation, or on the record date of such stock dividend, as the
         case may be, shall be adjusted by the Corporation to equal the price
         determined by multiplying the Exercise Price in effect immediately
         prior to such effective date or record date by a fraction of which the
         numerator shall be the total number of Common Shares outstanding
         immediately prior to such date and the denominator shall be the total
         number of Common Shares immediately after such date. Such adjustment
         shall be made successively whenever any event referred to in this
         subsection (a) shall occur, and any such issue of Common Shares by way
         of a stock dividend shall be deemed to have been made on the record
         date for the stock dividend for the purpose of calculating the number
         of outstanding Common Shares under subsections (b) and (c) of this
         section 4.1. Upon any adjustment of the Exercise Price pursuant to
         subsections (a), (b) and (d) of this section 4.1, the number of Common
         Shares subject to the right of purchase under each Purchase Warrant not
         previously exercised shall be contemporaneously adjusted by multiplying
         the number of Common Shares which theretofore may have been purchased
         under such Purchase Warrant by a fraction of which the numerator shall
         be the respective Exercise Price in effect immediately prior to such
         adjustment and the denominator shall be the respective Exercise Price
         resulting from such adjustments;

b.       if and whenever at any time after the date hereof and prior to the Time
         of Expiry, the Corporation shall fix a record date for the distribution
         to all or substantially all of the

                                                                              13
<PAGE>

         holders of Common Shares of rights, options or warrants entitling them
         for a period expiring not more than forty-five (45) days after such
         record date to subscribe for or purchase Common Shares (or securities
         convertible into, or exchangeable for, Common Shares) at a price per
         share (or having a conversion price or exchange price per share) less
         than 95% of the Current Market Price on such record date, the Exercise
         Price shall be adjusted immediately after such record date by the
         Corporation so that it shall equal the price determined by multiplying
         the Exercise Price in effect on such record date by a fraction, of
         which the numerator shall be the total number of Common Shares
         outstanding on such record date plus the number arrived at by dividing
         the aggregate subscription or purchase price of the total number of
         additional Common Shares offered for subscription or purchase (or the
         aggregate conversion or exchange price of the convertible securities or
         exchangeable securities so offered) by such Current Market Price, and
         of which the denominator shall be total number of Common Shares
         outstanding on such record date plus the total number of additional
         Common Shares offered for subscription or purchase (or into which the
         convertible securities or exchangeable securities so offered are
         convertible or exchangeable); any Common Shares owned by or held for
         the account of the Corporation or any Subsidiary of the Corporation
         shall be deemed not to be outstanding for the purpose of any such
         computation; such adjustment shall be made successively whenever such a
         record date is fixed; to the extent that any rights, options or
         warrants are not so issued or any such rights, options or warrants are
         not exercised prior to the expiration thereof, the Exercise Price shall
         then be readjusted to the Exercise Price which would then be in effect
         if such record date had not been fixed or to the Exercise Price which
         would then be in effect based upon the number and aggregate price of
         Common Shares (or securities convertible into Common Shares) actually
         issued upon the exercise of such rights, option or warrants, as the
         case may be;

c.       if and whenever at any time from the date hereof and prior to the Time
         of Expiry, there is a reclassification of the Common Shares or a
         capital reorganization of the Corporation other than as described in
         subsection 4.1(a) or a consolidation, amalgamation or merger of the
         Corporation with or into any other body corporate, trust, partnership
         or other entity, or a sale or conveyance of the property and assets of
         the Corporation as an entirety or substantially as an entirety to any
         other body corporate, trust, partnership or other entity, any
         Warrantholder who has not exercised its right of acquisition prior to
         the effective date of such reclassification, reorganization,
         consolidation, amalgamation, merger, sale or conveyance, upon the
         exercise of such right thereafter, shall be entitled to receive and
         shall accept, in lieu of the number of Common Shares then sought to be
         acquired by it, the number of shares or other securities or property of
         the Corporation or of the body corporate, trust, partnership or other
         entity resulting from such merger, amalgamation or consolidation, or to
         which such sale or conveyance may be made, as the case may be, that
         such Warrantholder would have been entitled to receive on such
         reclassification, reorganization, consolidation, amalgamation, merger,
         sale or conveyance, if, on the record date or the effective date
         thereof, as the case may be, the Warrantholder had been the registered
         holder of the number of Common Shares sought to be acquired by it. If
         determined appropriate by the Corporation or its directors to give
         effect to or to evidence the provisions of this subsection, the
         Corporation, its successor, or such purchasing body corporate,
         partnership, trust or other entity, as the case may be,

                                                                              14
<PAGE>

         shall, prior to or contemporaneously with any such reclassification,
         reorganization, consolidation, amalgamation, merger, sale or
         conveyance, enter into an indenture which shall provide, to the extent
         possible, for the application of the provisions set forth in this
         Indenture with respect to the rights and interests thereafter of the
         Warrantholders to the end that the provisions set forth in this
         Indenture shall thereafter correspondingly be made applicable, as
         nearly as may reasonably be, with respect to any shares, other
         securities or property to which a Warrantholder is entitled on the
         exercise of its acquisition rights thereafter. Any indenture entered
         into between the Corporation and the Trustee pursuant to the provisions
         of this subsection 4.1(c) shall be a supplemental indenture entered
         into pursuant to the provisions of Article 8 hereof. Any indenture
         entered into between the Corporation, any successor to the Corporation
         or such purchasing body corporate, partnership, trust or other entity
         and the Trustee shall provide for adjustments which shall be as nearly
         equivalent as may be practicable to the adjustments provided in this
         section 4.1 and which shall apply to successive reclassifications,
         reorganizations, amalgamations, consolidations, mergers, sales or
         conveyances;

d.       if and whenever at any time from the date hereof and prior to the Time
         of Expiry, the Corporation fixes a record date for the making of a
         distribution to all or substantially all the holders of its outstanding
         Common Shares of: (i) shares of any class other than Common Shares,
         other than shares distributed to holders of Common Shares pursuant to
         their exercise of options to receive dividends in the form of such
         shares in lieu of Dividends Paid in the Ordinary Course on the Common
         Shares, or (ii) rights, options or warrants (excluding rights
         exercisable for 45 days or less where the exercise price per share is
         not less than 95% of the Current Market Price on such record date), or
         (iii) evidences of its indebtedness, or (iv) assets (excluding
         Dividends Paid in the Ordinary Course), including shares of other
         corporations, then, provided that subsection 4.1(a) or subsection
         4.1(b) do not apply, then, and in each such case, the Exercise Price
         shall be adjusted by the Corporation immediately after such record date
         so that it shall equal the price determined by multiplying the Exercise
         Price in effect on such record date by a fraction, of which the
         numerator shall be the total number of Common Shares outstanding on
         such record date multiplied by the Current Market Price on such record
         date, less the excess of the aggregate fair market value (as determined
         by the directors, which determination shall be conclusive) of such
         shares, rights, options, warrants, evidences of indebtedness or assets
         so distributed are the fair market value of the consideration received
         therefor by the Corporation from the holders of Common Shares as
         determined by action by the directors (whose determination shall be
         conclusive), and of which the denominator shall be that total number of
         Common Shares outstanding on such record date multiplied by such
         Current Market Price; any Common Shares owned by or held for the
         account of the Corporation or any subsidiary of the Corporation shall
         be deemed not to be outstanding for the purpose of any such
         computation; such adjustment shall be made successively whenever such a
         record date is fixed; to the extent that such distribution is not so
         made, the Exercise Price shall then be readjusted to the Exercise Price
         which would then be in effect if such record date had not been fixed or
         to the Exercise Price which would then be in effect based upon such
         shares, rights, options, warrants, evidences of indebtedness or assets
         actually distributed, as the case may be;

                                                                              15
<PAGE>

e.       the adjustments provided for in this Article 4 in the Exercise Price
         and number of Common Shares and classes of securities which are to be
         received on the exercise of Purchase Warrants are cumulative. After any
         adjustment pursuant to this section, the term "Common Shares" where
         used in this Indenture shall be interpreted to mean securities of any
         class or classes which, as a result of such adjustment and all prior
         adjustments pursuant to this section, the Warrantholder is entitled to
         receive upon the exercise of its Purchase Warrant, and the number of
         Common Shares indicated by any exercise made pursuant to a Purchase
         Warrant shall be interpreted to mean the number of Common Shares or
         other property or securities a Warrantholder is entitled to receive, as
         a result of such adjustment and all prior adjustments pursuant to this
         section, upon the full exercise of Purchase Warrant;

f.       for the purposes of this section 4.1, "Dividends Paid in the Ordinary
         Course" means cash dividends declared payable on the Common Shares in
         any fiscal year of the Corporation to the extent that such cash
         dividends do not exceed, in the aggregate, the greater of: (i) 200% of
         the aggregate amount of cash dividends declared payable by the
         Corporation on the Common Shares in its immediately preceding fiscal
         year; (ii) 300% percent of the arithmetic mean of the aggregate amounts
         of cash dividends declared payable by the Corporation on the Common
         Shares in its three immediately preceding fiscal years; and (iii) 50%
         percent of the aggregate consolidated net income of the Corporation,
         before extraordinary items, for its immediately preceding fiscal year;

g.       in any case which this section 4.1 shall require that an adjustment
         shall become effective immediately after a record date for an event
         referred to herein, the Corporation may defer, until the occurrence of
         such event, issuing to the holder of any Warrant exercised after such
         event the additional Common Shares issuable upon such conversion by
         reason of the adjustment required by such event before giving effect to
         such adjustment; provided, however, that the Corporation shall deliver
         to such holder an appropriate instrument evidencing such holder's
         rights to receive such additional Common Shares upon the occurrence of
         the event requiring such adjustment and the right to receive any
         distributions made on such additional Common Shares declared in favour
         of holders of record of Common Shares on and after the relevant date of
         exercise or such later date as such holder would, but for the
         provisions of this subsection (g), have become the holder of record of
         such additional Common Shares;

h.       if the purchase price provided for in any right, warrant or option
         issued as described in subsection (b) or (d) is decreased, or the price
         at which Common Shares are issued as described in subsection (a) is
         decreased or the rate of conversion at which any convertible securities
         which are issued as described in subsection (a) is increased, the
         Exercise Price shall, subject to subsection (g), forthwith be changed
         so as to decrease the Exercise Price to such Exercise Price as would
         have been obtained had the adjustment made in connection with the
         issuance of all such rights, options or securities been made upon the
         basis of such purchase price as so decreased or such rate as so
         increased;

                                                                              16
<PAGE>

i.       no adjustment in the Exercise Price or in the number of shares to be
         issued pursuant to the exercise of the Warrants shall be required
         unless such adjustment would result in a change of at least 1% in the
         Exercise Price then in effect or unless the number of shares to be
         issued would change by at least 1/100th of a share, provided, however,
         that any adjustments, which, except for the provisions of this
         subsection 4.1(i) would otherwise have been required to be made, shall
         be carried forward and taken into account in any subsequent adjustment;

j.       no adjustment in the Exercise Price shall be made in respect of any
         event described in paragraph 4.1(a)(iii) and subsections 4.1(b) or
         4.1(d):

         i.       if the Warrantholders are entitled to participate in such
                  event on the same terms mutatis mutandis as if they had
                  exercised their purchase rights prior to the effective date or
                  record date or such event, subject to the prior approval of
                  TSX to such participation if the Common Shares or the Warrants
                  are then listed on such exchange; or

         ii.      in respect of any rights to acquire shares which are presently
                  outstanding; and

k.       in determining at any time and from time to time the number of Common
         Shares outstanding at any particular time for purposes of this section
         4.1, there shall be included that number of Common Shares which would
         be outstanding upon conversion of all convertible securities then
         outstanding, and upon exercise of all rights, options or warrants then
         outstanding to purchase Common Shares, and there shall be excluded any
         Common Shares (and Common Shares which would be outstanding upon
         conversion of convertible securities) held by or for the account of the
         Corporation.

4.2      OTHER ACTION

In case the Corporation, after the date hereof, shall take any action affecting
the Common Shares other than actions described in subsection 5.1, which in the
opinion of the directors of the Corporation would materially affect the rights
of the Warrantholders, the number of Common Shares which may be acquired upon
exercise of the Purchase Warrants shall be adjusted by the Corporation in such
manner and at such time, by action of the director, as they determine, acting
reasonably, to be equitable in the circumstances.

4.3      ENTITLEMENT TO SHARES ON EXERCISE OF PURCHASE WARRANT

All shares of any class or other securities which a Warrantholder is at the time
in question entitled to receive on the exercise of its Purchase Warrant, whether
or not as a result of adjustments made pursuant to this section, shall, for the
purposes of the interpretation of this Indenture, be deemed to be shares which
such Warrantholder is entitled to acquire pursuant to such Purchase Warrant.

                                                                              17
<PAGE>

4.4      NO ADJUSTMENT FOR STOCK OPTIONS

Notwithstanding anything to the contrary, in this Article 4, no adjustment shall
be made in the acquisition rights attached to the Purchase Warrants if the issue
of Common Shares is being made pursuant to this Indenture or pursuant to any
stock option or stock purchase plan in force from time to time.

4.5      DETERMINATION BY CORPORATION'S AUDITORS

In the event of any question arising with respect to the adjustments provided
for in this Article 4, such question shall be conclusively determined by the
Corporation's Auditors who shall have access to all necessary records of the
Corporation, and such determination shall be binding upon the Corporation, the
Trustee, all Warrantholders and all other persons interested therein.

4.6      PROCEEDINGS PRIOR TO ANY ACTION REQUIRING ADJUSTMENT

As a condition precedent to the taking of any action which would require an
adjustment in any of the acquisition rights pursuant to any of the Purchase
Warrants, including the number of Common Shares which are to be received upon
the exercise thereof, the Corporation shall take any corporate action which may,
in the opinion of counsel, be necessary in order that the Corporation has
unissued and reserved in its authorized capital and may validly and legally
issue as fully paid and non-assessable all the shares which the holders of such
Purchase Warrants are entitled to receive on the full exercise thereof in
accordance with the provisions hereof.

4.7      CERTIFICATE OF ADJUSTMENT

The Corporation shall from time to time immediately after the occurrence of any
event which requires an adjustment or readjustment as provided in Article 4,
deliver a certificate of the Corporation to the Trustee specifying the nature of
the event requiring the same and the amount of the adjustment necessitated
thereby and setting forth in reasonable detail the method of calculation and the
facts upon which such calculation is based, which certificate shall be supported
by a certificate of the Corporation's Auditors verifying such calculation.

4.8      NOTICE OF SPECIAL MATTERS

The Corporation covenants with the Trustee that, so long as any Purchase Warrant
remains outstanding, it will give notice to the Trustee and to the
Warrantholders of its intention to fix a record date that is prior to the Expiry
Date for any event referred to in subsections (a), (b), (c) or (d) of section
4.1 which may give rise to an adjustment in the Exercise Price. Such notice
shall specify the particulars of such event and the record date for such event,
provided that the Corporation shall only be required to specify in the notice
such particulars of the event as shall have been fixed and determined on the
date on which the notice is given. The notice shall be given in each case not
less than 14 days prior to such applicable record date.

                                                                              18
<PAGE>

4.9      NO ACTION AFTER NOTICE

The Corporation covenants with the Trustee that it will not close its transfer
books or take any other corporate action which might deprive the holder of a
Purchase Warrant of the opportunity to exercise its right of acquisition
pursuant thereto during the period of 14 days after the giving of the
certificate or notices set forth in sections 4.7 and 4.8.

4.10     PROTECTION OF TRUSTEE

Except as provided in section 9.2, the Trustee:

a.       shall not at any time be under any duty or responsibility to any
         Warrantholder to determine whether any facts exist which may require
         any adjustment contemplated by section 4.1 or with respect to the
         nature or extent of any such adjustment when made, or with respect to
         the method employed in making the same;

b.       shall not be accountable with respect to the validity or value (or the
         kind or amount) of any Common Shares or of any shares or other
         securities or property which may at any time be issued or delivered
         upon the exercise of the rights attaching to any Purchase Warrant;

c.       shall not be responsible for any failure of the Corporation to issue,
         transfer or deliver Common Shares or certificates for the same upon the
         surrender of any Purchase Warrants for the purpose of the exercise of
         such rights or to comply with any of the covenants contained in this
         Article;

d.       shall not incur any liability or responsibility whatsoever or be in any
         way responsible for the consequences of any breach on the part of the
         Corporation of any of the representations, warranties or covenants
         herein contained or of any acts of the directors, officers, employees,
         agents or servants of the Corporation; and

e.       shall be entitled to act and rely on any adjustment calculation of the
         Corporation or the Corporation's auditors.

                                    ARTICLE 5
                     RIGHTS OF THE CORPORATION AND COVENANTS

5.1      OPTIONAL PURCHASES BY THE CORPORATION

The Corporation may from time to time purchase, by private contract or
otherwise, any of the Purchase Warrants. Any such purchase shall be made at the
lowest price or prices at which, in the opinion of the directors, such Purchase
Warrants are then obtainable, plus reasonable costs of purchase, and may be made
in such manner, from such persons and on such other terms as the Corporation, in
its sole discretion, may determine. Any Warrant Certificates representing the

                                                                              19
<PAGE>

Purchase Warrants purchased pursuant to this section shall forthwith be
delivered to and cancelled by the Trustee. No Purchase Warrants shall be issued
in replacement thereof.

5.2      GENERAL COVENANTS

The Corporation covenants with the Trustee for the benefit of the Warrantholder
that so long as any Purchase Warrants remain outstanding:

a.       it shall reserve and keep available a sufficient number of Common
         Shares for the purpose of enabling it to satisfy its obligations to
         issue Common Shares upon the exercise of the Purchase Warrants;

b.       it shall cause the Common Shares and the certificates representing the
         Common Shares acquired pursuant to the valid exercise of the Purchase
         Warrants to be duly issued and delivered in accordance with the Warrant
         Certificates and the terms hereof;

c.       all Common Shares issued upon exercise of the right to acquire provided
         for herein and in the Warrant Certificates shall be issued as fully
         paid and non-assessable;

d.       the Corporation will direct the Trustee to keep open the Warrant
         Register and will not take any action or omit to take any action that
         would have the effect of preventing the Warrantholders from exercising
         any of the Purchase Warrants or receiving any of the Common Shares upon
         such exercise;

e.       the Corporation will make all requisite filings, including filings with
         securities regulatory authorities in Canada and the United States, in
         connection with the exercise of the Purchase Warrants and the issue of
         the Common Shares issuable upon exercise thereon, and will maintain its
         status as a reporting issuer not in default in the Filing
         Jurisdictions;

f.       the Corporation will perform and comply with all of its covenants and
         agreements set forth in the Underwriting Agreement and the Agency
         Agreement;

g.       it will use its best efforts to maintain the listing of the Common
         Shares on the TSX and the AMEX;

h.       it will use its best efforts to maintain the listing of the Purchase
         Warrants on the TSX until the Expiry Date;

i.       it will use its best efforts to maintain its status as a reporting
         issuer not in default under, and not be in default in any material
         respect of the applicable requirements of, the applicable securities
         laws of each of the provinces of Canada and the federal securities laws
         of the United States from the date hereof up to and including the Time
         of Expiry;

j.       it will register (and maintain such registration of) the Common Shares
         issuable upon exercise of the Purchase Warrants under the securities
         laws of all U.S. States in which the Common Shares are not otherwise
         exempt from such securities registration requirements.

                                                                              20
<PAGE>

         For purposes of the foregoing, "U.S. States" means the 50 states of the
         United States of America, the District of Columbia, Puerto Rico and
         Guam;

k.       it shall use its best efforts to maintain its registration statement on
         Form S-3 (File No. 333-91666), or another registration statement on
         such form filed with the United States Securities and Exchange
         Commission with respect to the Common Shares and Purchase Warrants,
         continuously effective under the U.S. Securities Act of 1933, as
         amended;

l.       the Corporation will do, or cause to be done, all things necessary to
         preserve and keep in full force and effect its corporate existence and
         carry on and conduct its business in accordance with good business
         practice; and

m.       generally, it will well and truly perform and carry out all of the acts
         or things to be done by it as provided in this Indenture or as the
         Trustee may reasonably require for the better accomplishing and
         effecting of the intentions and provisions of this Indenture.

5.3      TRUSTEE'S REMUNERATION AND EXPENSES

The Corporation covenants that it will pay to the Trustee from time to time
reasonable remuneration for its services hereunder and will pay or reimburse the
Trustee upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in the administration or execution of the trusts
hereby created (including the reasonable compensation and the disbursements of
its Counsel and all other advisers and assistants not regularly in its employ)
both before any default hereunder and thereafter until all duties of the Trustee
hereunder shall be finally and fully performed, except any such expense,
disbursement or advance as may arise out of or result from the Trustee's gross
negligence, wilful misconduct or bad faith.

5.4      SECURITIES QUALIFICATION REQUIREMENTS

a.       If, in the opinion of Counsel, any instrument is required to be filed
         with, or any permission is required to be obtained from, any
         governmental authority or regulatory body in Canada or the United
         States or any other step is required under any federal or provincial
         law of Canada or federal or state law of the United States before any
         Common Shares which a Warrantholder is entitled to acquire pursuant to
         the exercise of any Purchase Warrant may properly and legally be issued
         upon due exercise thereof and thereafter traded, without further
         formality or restriction, the Corporation covenants that it will take
         such required action at its expense, as is required or appropriate in
         the circumstances.

b.       The Corporation or, if required in writing by the Corporation, the
         Trustee, will give notice of the issue of Common Shares pursuant to the
         exercise of Purchase Warrants, in such detail as may be required, to
         each securities commission or similar regulatory authority in each of
         the Filing Jurisdictions in which there is legislation or regulation
         permitting or requiring the giving of any such notice.

                                                                              21
<PAGE>

c.       The Corporation covenants that if any Common Shares, required to be
         reserved for the purpose of issue upon exercise of the Purchase
         Warrants hereunder, require registration with or approval of any
         governmental authority under any federal or state law before such
         Common Shares may be issued upon exercise of Purchase Warrants, the
         Corporation will use its best efforts to cause such Common Shares to be
         duly registered, or approved, as the case may be, and, to the extent
         practicable, take all such action in anticipation of and prior to the
         exercise of the Purchase Warrants, including, without limitation,
         filing any and all post effective amendments to the Corporation's
         Registration Statement on Form S-3 (Registration No. 333-91666)
         necessary to permit a public offering of the Common Shares underlying
         the Purchase Warrants at any and all times during the term of this
         Indenture, provided, however, that in no event shall such Common Shares
         be issued, and the Corporation is authorized to refuse to honor the
         exercise of any Purchase Warrant, if such exercise would result in the
         opinion of the Corporation's Board of Directors, upon advice of
         counsel, in the violation of any law; and provided further that, in the
         case of a Purchase Warrant exercisable solely for Common Shares listed
         on a securities exchange or for which there are at least two
         independent market makers, in lieu of obtaining such registration or
         approval, the Corporation may elect to redeem Purchase Warrants
         submitted to the Trustee for exercise for a price equal to the
         difference between the aggregate low asked price, or closing price, as
         the case may be, of the Common Shares for which such Purchase Warrant
         is exercisable on the date of such submission and the Exercise Price of
         such Purchase Warrants; in the event of such redemption, the
         Corporation will pay to the holder of such Purchase Warrants the above
         described redemption price in cash within ten business days after
         receipt of notice from the Trustee that such Purchase Warrants have
         been submitted for exercise.

5.5      PERFORMANCE OF COVENANTS BY TRUSTEE

If the Corporation shall fail to perform any of its covenants contained in this
Purchase Warrant Indenture, the Trustee may notify the Warrantholders of such
failure on the part of the Corporation or may itself perform any of the
covenants capable of being performed by it but, subject to section 9.2, shall be
under no obligation to perform such covenants or to notify the Warrantholders of
such performance by it. All sums expended or advanced by the Trustee in so doing
shall be repayable as provided in section 5.3. No such performance, expenditure
or advance by the Trustee shall relieve the Corporation of any default hereunder
or of its continuing obligations under the covenants herein contained.

                                    ARTICLE 6
                                   ENFORCEMENT

6.1      SUITS BY WARRANTHOLDERS

All or any of the rights conferred upon any Warrantholder by any of the terms of
the Warrant Certificates or the Indenture or both may be enforced by the
Warrantholder by appropriate proceedings but without prejudice to the right
which is hereby conferred upon the Trustee to

                                                                              22
<PAGE>

proceed in its own name to enforce each and all of the provisions herein
contained for the benefit of the Warrantholders.

6.2      IMMUNITY OF SHAREHOLDERS, ETC.

The Trustee and, by the acceptance of the Warrant Certificates and as part of
the consideration for the issue of the Purchase Warrants, the Warrantholders
hereby waive and release any right, cause of action or remedy now or hereafter
existing in any jurisdiction against any incorporator or any past, present or
future shareholder, director, officer, employee or agent of the Corporation or
any successor corporation, but for greater certainty, not the Corporation or any
successor corporation on any covenant, agreement, representation or warranty by
the Corporation contained herein or in the Warrant Certificates.

6.3      LIMITATION OF LIABILITY

The obligations hereunder are not personally binding upon, nor shall resort
hereunder be had to, the private property of any of the past, present or future
directors or shareholders of the Corporation or any successor Corporation or any
of the past, present or future officers, employees or agents of the Corporation
or any successor Corporation, but only the property of the Corporation or any
successor Corporation shall be bound in respect hereof.

6.4      WAIVER OF DEFAULT

Upon the happening of any default hereunder:

a.       the holders of not less than 51% of the aggregate number of Purchase
         Warrants then outstanding shall have power (in addition to the powers
         exercisable by extraordinary resolution as provided in section 7.10) by
         requisition in writing to instruct the Trustee to waive any default
         hereunder and the Trustee shall thereupon waive the default upon such
         terms and conditions as shall be prescribed in such requisition; or

b.       the Trustee shall have power to waive any default hereunder upon such
         terms and conditions as the Trustee may deem advisable, if, in the
         Trustee's opinion, the same shall have been cured or adequate provision
         made therefor;

provided that no delay or omission of the Trustee or of the Warrantholders to
exercise any right or power accruing upon any default shall impair any such
right or power or shall be construed to be a waiver of any such default or
acquiescence therein and provided further that no act or omission either of the
Trustee or of the Warrantholders in the premises shall extend to or be taken in
any manner whatsoever to affect any subsequent default hereunder of the rights
resulting therefrom.

                                                                              23
<PAGE>

                                    ARTICLE 7
                           MEETINGS OF WARRANTHOLDERS

7.1      RIGHT TO CONVENE MEETINGS

The Trustee may at any time and from time to time, and shall on receipt of a
written request of the Corporation or of a Warrantholders' Request and upon
being indemnified to its reasonable satisfaction by the Corporation or by the
Warrantholders signing such Warrantholders' Request against the cost which may
be incurred in connection with the calling and holding of such meeting, convene
a meeting of the Warrantholders. In the event of the Trustee failing to so
convene a meeting within seven days after receipt of such written request of the
Corporation or such Warrantholders' Request and indemnity given as aforesaid,
the Corporation or such Warrantholders, as the case may be, may convene such
meeting. Every such meeting shall be held in the City of Vancouver or at such
other place as may be approved or determined by the Trustee and approved by the
Corporation, acting reasonably.

7.2      NOTICE

At least 21 days prior notice of any meeting of Warrantholders shall be given to
the Warrantholders in the manner provided for in section 10.2 and a copy of such
notice shall be sent by mail to the Trustee (unless the meeting has been called
by the Trustee) and to the Corporation (unless the meeting has been called by
the Corporation). Such notice shall state the time when and the place where the
meeting is to be held, shall state briefly the general nature of the business to
be transacted thereat and shall contain such information as is reasonably
necessary to enable the Warrantholders to make a reasoned decision on the
matter, but it shall not be necessary for any such notice to set out the terms
of any resolution to be proposed or any of the provisions of this Article 7.

7.3      CHAIRMAN

An individual (who need not be a Warrantholder) designated in writing by the
Trustee shall be chairman of the meeting and if no individual is so designated,
or if the individual so designated is not present within 15 minutes from the
time fixed for the holding of the meeting, the Warrantholders present in person
or by proxy shall choose an individual present to be chairman.

7.4      QUORUM

Subject to the provisions of section 7.11, at any meeting of the Warrantholders
a quorum shall consist of Warrantholders present in person or by proxy and
entitled to purchase at least 10% of the aggregate number of Common Shares that
could be acquired pursuant to all the then outstanding Purchase Warrants,
provided that at least two persons entitled to vote thereat are personally
present. If a quorum of the Warrantholders is not present within 30 minutes from
the time fixed for holding any meeting, the meeting, if summoned by
Warrantholders or on a Warrantholders' Request, shall be dissolved; but in any
other case the meeting shall be adjourned to the same day in the next week
(unless such day is not a Business Day, in which case it shall be adjourned to
the next following Business Day) at the same time and place and no notice of the

                                                                              24
<PAGE>

adjournment need be given. Any business may be brought before or dealt with at
an adjourned meeting that might have been dealt with at the original meeting in
accordance with the notice calling the same. No business shall be transacted at
any meeting unless a quorum be present at the commencement of business. At the
adjourned meeting the Warrantholders present in person or by proxy will
constitute a quorum and may transact the business for which the meeting was
originally convened, notwithstanding that they may not be entitled to acquire at
least 10% of the aggregate number of Common Shares that may be acquired pursuant
to all then outstanding Purchase Warrants.

7.5      POWER TO ADJOURN

The chairman of any meeting at which a quorum of the Warrantholders is present
may, with the consent of the meeting, adjourn any such meeting, and no notice of
such adjournment need be given except such notice, if any, as the meeting may
prescribe.

7.6      SHOW OF HANDS

Every question submitted to a meeting shall be decided in the first place by a
majority of the votes given on a show of hands except that votes on an
extraordinary resolution shall be given in the manner hereinafter provided. At
any such meeting, unless a poll is duly demanded as herein provided, a
declaration by the chairman that a resolution has been carried or carried
unanimously or by a particular majority or lost or not carried by a particular
majority shall be conclusive evidence of the fact.

7.7      POLL AND VOTING

On every extraordinary resolution, and on any other question submitted to a
meeting and after a vote by show of hands when demanded by the chairman or by
one or more of the Warrantholders acting in person or by proxy, a poll shall be
taken in such manner as the chairman shall direct. Questions other than those
required to be determined by extraordinary resolution shall be decided by a
majority of the votes cast on the poll.

On a show of hands, every person who is present and entitled to vote, whether as
a Warrantholder or as proxy for one or more absent Warrantholders, or both,
shall have one vote. On a poll, each Warrantholder present in person or
represented by a proxy duly appointed by instrument in writing shall be entitled
to one vote in respect of each whole Common Share which he is entitled to
acquire pursuant to the Purchase Warrant or Purchase Warrants then held or
represented by it. A proxy need not be a Warrantholder. The chairman of any
meeting shall be entitled, both on a show of hands and on a poll, to vote in
respect of the Purchase Warrants and proxies, if any, held or represented by
him.

7.8      REGULATIONS

The Trustee, or the Corporation with the approval of the Trustee, may make and
vary such regulations as it shall think fit for:

                                                                              25
<PAGE>

a.       the setting of the record date for a meeting for the purpose of
         determining Warrantholders entitled to receive notice of and to vote at
         the meeting;

b.       the issue of voting certificates by any bank, trust company or other
         depositary satisfactory to the Trustee stating that the Warrant
         Certificates specified therein have been deposited with it by a named
         person and will remain on deposit until after the meeting, which voting
         certificate shall entitle the persons named therein to be present and
         vote at any such meeting and at any adjournment thereof or to appoint a
         proxy or proxies to represent them and vote for them at any such
         meeting and at any adjournment thereof in the same manner and with the
         same effect as though the persons so named in such voting certificates
         were the actual bearers of the Warrant Certificates specified therein;

c.       the deposit of voting certificates and instruments appointing proxies
         at such place and time as the Trustee, the Corporation or the
         Warrantholders convening the meeting, as the case may be, may in the
         notice convening the meeting direct;

d.       the deposit of voting certificates and instruments appointing proxies
         at some approved place or places other than the place at which the
         meeting is to be held and enabling particulars of such instruments
         appointing proxies to be mailed or telecopied before the meeting to the
         Corporation or to the Trustee at the place where the same is to be held
         and for the voting of proxies so deposited as though the instruments
         themselves were produced at the meeting;

e.       the form of the instrument of proxy; and

f.       generally for the calling of meetings of Warrantholders and the conduct
         of business thereat.

Any regulations so made shall be binding and effective and the votes given in
accordance therewith shall be valid and shall be counted. Save as such
regulations may provide, the only persons who shall be recognized at any meeting
as a Warrantholder, or be entitled to vote or be present at the meeting in
respect thereof (subject to section 7.9) shall be Warrantholders or their
counsel (who may not vote), or proxies of Warrantholders.

7.9      CORPORATION AND TRUSTEE MAY BE REPRESENTED

The Corporation and the Trustee, by their respective directors, officers and
employees and the Counsel for the Corporation and for the Trustee may attend any
meeting of the Warrantholders, but shall not be entitled to vote thereat,
whether in respect of any Purchase Warrants held by them or otherwise.

7.10     POWERS EXERCISABLE BY EXTRAORDINARY RESOLUTION

In addition to all other powers conferred upon them by any other provisions of
this Indenture or by law, and subject to the prior approval of the TSX, the
Warrantholders at a meeting shall,

                                                                              26
<PAGE>

subject to the provisions of section 7.11 have the power, exercisable from time
to time by extraordinary resolution:

a.       to agree to any modification, abrogation, alteration, compromise or
         arrangement of the rights of Warrantholders or the Trustee in its
         capacity as trustee hereunder subject to the consent of the Trustee or
         on behalf of the Warrantholders against the Corporation, whether such
         rights arise under this Indenture or the Warrant Certificates or
         otherwise;

b.       to amend, alter or repeal any extraordinary resolution previously
         passed or sanctioned by the Warrantholders;

c.       to direct or to authorize the Trustee to enforce any of the covenants
         on the part of the Corporation contained in this Indenture or the
         Warrant Certificates or to enforce any of the rights of the
         Warrantholders in any manner specified in such extraordinary resolution
         or to refrain from enforcing any such covenant or right;

d.       to waive, and to direct the Trustee to waive, any default on the part
         of the Corporation in complying with any provision of this Indenture or
         the Warrant Certificates either unconditionally or upon any conditions
         specified in such extraordinary resolution;

e.       to restrain any Warrantholder from taking or instituting any suit,
         action or proceeding against the Corporation for the enforcement of any
         of the covenants on the part of the Corporation in this Indenture or
         the Warrant Certificates or to enforce any of the rights of the
         Warrantholders;

f.       to direct any Warrantholder who, as such, has brought any suit, action
         or proceeding to stay or to discontinue or otherwise to deal with the
         same upon payment of the costs, charges and expenses reasonably and
         properly incurred by such Warrantholder in connection therewith;

g.       to assent to any change in or omission from the provisions contained in
         the Warrant Certificates and this Indenture or any ancillary or
         supplemental instrument that may be agreed to by the Corporation, and
         to authorize the Trustee to concur in and execute any ancillary or
         supplemental indenture embodying the change or omission;

h.       with the consent of the Corporation, such consent not to be
         unreasonably withheld, to remove the Trustee or its successor in office
         and to appoint a new trustee or trustees to take the place of the
         Trustee so removed;

i.       to assent to any compromise or arrangement with any creditor or
         creditors of the Corporation or any class or classes of creditors of
         the Corporation, whether secured or otherwise, and with holders of any
         shares or other securities of the Corporation; and

j.       to sanction any scheme for the reconstruction or reorganization of the
         Corporation or for the consolidation, amalgamation or merger of the
         Corporation with any other corporation

                                                                              27
<PAGE>

         or for the sale, lease, transfer or other disposition of all or
         substantially all the property and assets of the Corporation.

7.11     MEANING OF EXTRAORDINARY RESOLUTION

a.       The expression "extraordinary resolution" when used in this Indenture
         means, subject as hereinafter provided in this section and in section
         7.14, a resolution proposed at a meeting of Warrantholders duly
         convened for that purpose and held in accordance with the provisions of
         this Article 7 at which there are present in person or by proxy
         Warrantholders entitled to acquire at least 25% of the aggregate number
         of Common Shares which may be acquired pursuant to all the then
         outstanding Purchase Warrants and passed by the affirmative votes of
         Warrantholders entitled to acquire not less than 66 2/3% of the
         aggregate number of Common Shares which may be acquired pursuant to all
         the then outstanding Purchase Warrants represented at the meeting and
         voted on the poll upon such resolution.

b.       If, at the meeting at which an extraordinary resolution is to be
         considered, Warrantholders entitled to acquire at least 25% of the
         aggregate number of Common Shares which may be acquired pursuant to all
         the then outstanding Purchase Warrants are not present in person or by
         proxy within 30 minutes after the time appointed for the meeting, then
         the meeting, if convened by Warrantholders or on a Warrantholders'
         Request, shall be dissolved; but in any other case it shall stand
         adjourned to such day, being not less than 15 or more than 60 days
         later, and to such place and time as may be appointed by the chairman.
         Not less than ten days' prior notice shall be given of the time and
         place of such adjourned meeting in the manner provided for in section
         10.2. Such notice shall state that at the adjourned meeting the
         Warrantholders present in person or by proxy shall form a quorum but it
         shall not be necessary to set forth the purposes for which the meeting
         was originally called or any other particulars. At the adjourned
         meeting the Warrantholders present in person or by proxy shall form a
         quorum and may transact the business for which the meeting was
         originally convened and a resolution proposed at such adjourned meeting
         and passed by the requisite vote as provided in subsection 7.11(a)
         shall be an extraordinary resolution within the meaning of this
         Indenture notwithstanding that Warrantholders entitled to acquire at
         least 25% of the aggregate number of Common Shares which may be
         acquired pursuant to all the then outstanding Purchase Warrants are not
         present in person or by proxy at such adjourned meeting.

c.       Votes on an extraordinary resolution shall always be given on a poll
         and no demand for a poll on an extraordinary resolution shall be
         necessary.

7.12     POWERS CUMULATIVE

Any one or more of the powers or any combination of the powers in this Indenture
stated to be exercisable by the Warrantholders by extraordinary resolution or
otherwise may be exercised from time to time and the exercise of any one or more
of such powers or any combination of

                                                                              28
<PAGE>

powers from time to time shall not be deemed to exhaust the right of the
Warrantholders to exercise such power or powers or combination of powers then or
thereafter from time to time.

7.13     MINUTES

Minutes of all resolutions and proceedings at every meeting of Warrantholders
shall be made and duly entered in books to be provided from time to time for
that purpose by the Trustee at the expense of the Corporation, and any such
minutes as aforesaid, if signed by the chairman or the secretary of the meeting
at which such resolutions were passed or proceedings had shall be prima facie
evidence of the matters therein stated and, until the contrary is proved, every
such meeting in respect of the proceedings of which minutes shall have been made
shall be deemed to have been duly convened and held, and all resolutions passed
thereat or proceedings taken shall be deemed to have been duly passed and taken.

7.14     INSTRUMENTS IN WRITING

All actions which may be taken and all powers that may be exercised by the
Warrantholders at a meeting held as provided in this Article 7 may also be taken
and exercised by Warrantholders entitled to acquire at least 66 2/3% of the
aggregate number of Common Shares which may be acquired pursuant to all the then
outstanding Purchase Warrants by an instrument in writing signed in one or more
counterparts by such Warrantholders in person or by attorney duly appointed in
writing, and the expression "extraordinary resolution" when used in this
Indenture shall include an instrument so signed.

7.15     BINDING EFFECT OF RESOLUTIONS

Every resolution and every extraordinary resolution passed in accordance with
the provisions of this Article 7 at a meeting of Warrantholders shall be binding
upon all the Warrantholders, whether present at or absent from such meeting, and
every instrument in writing signed by Warrantholders in accordance with section
7.14 shall be binding upon all the Warrantholders, whether signatories thereto
or not, and each and every Warrantholder and the Trustee (subject to the
provisions for indemnity herein contained) shall be bound to give effect
accordingly to every such resolution and instrument in writing.

7.16     HOLDINGS BY CORPORATION OR SUBSIDIARIES OF CORPORATION DISREGARDED

In determining whether Warrantholders holding Warrant Certificates evidencing
the entitlement to acquire the required number of Common Shares are present at a
meeting of Warrantholders for the purpose of determining a quorum or have
concurred in any consent, waiver, extraordinary resolution, Warrantholders'
Request or other action under this Indenture, Purchase Warrants owned legally or
beneficially by the Corporation or any Subsidiary of the Corporation shall be
disregarded in accordance with the provisions of section 10.9.

                                                                              29
<PAGE>

                                    ARTICLE 8
                             SUPPLEMENTAL INDENTURES

8.1      PROVISION FOR SUPPLEMENTAL INDENTURES FOR CERTAIN PURPOSES

From time to time the Corporation (when authorized by action of the directors
and with the prior approval of the TSX) and the Trustee may, subject to the
provisions hereof, and they shall, when so directed in accordance with the
provisions hereof, execute and deliver by their proper officers, indentures or
instruments supplemental hereto, which thereafter shall form part hereof, for
any one or more or all of the following purposes:

a.       setting forth any adjustments resulting from the application of the
         provisions of Article 4;

b.       adding to the provisions hereof such additional covenants and
         enforcement provisions as, in the opinion of Counsel, are necessary or
         advisable in the premises, provided that the same are not in the
         opinion of the Trustee, relying on counsel, prejudicial to the
         interests of the Warrantholders;

c.       giving effect to any extraordinary resolution passed as provided in
         Article 7;

d.       making such provisions not inconsistent with this Indenture as may be
         necessary or desirable with respect to matters or questions arising
         hereunder or for the purpose of obtaining a listing or quotation of the
         Purchase Warrants on any stock exchange, provided that such provisions
         are not, in the opinion of the Trustee, relying on counsel, prejudicial
         to the interests of the Warrantholders;

e.       adding to or altering the provisions hereof in respect of the transfer
         of Purchase Warrants, making provision for the exchange of Warrant
         Certificates, and making any modification in the form of the Warrant
         Certificates which does not affect the substance thereof;

f.       modifying any of the provisions of this Indenture, including relieving
         the Corporation from any of the obligations, conditions or restrictions
         herein contained, provided that such modification or relief shall be or
         become operative or effective only if, in the opinion of the Trustee,
         relying on counsel, such modification or relief in no way prejudices
         any of the rights of the Warrantholders or of the Trustee, and provided
         further that the Trustee may in its sole discretion decline to enter
         into any such supplemental indenture which in its opinion may not
         afford adequate protection to the Trustee when the same shall become
         operative; and

g.       for any other purpose not inconsistent with the terms of this
         Indenture, including the correction or rectification of any
         ambiguities, defective or inconsistent provisions, errors, mistakes or
         omissions herein, provided that in the opinion of the Trustee the
         rights of the Trustee, acting on the advice of counsel, and of the
         Warrantholders are in no way prejudiced thereby.

                                                                              30
<PAGE>

8.2      SUCCESSOR CORPORATIONS

In the case of the consolidation, amalgamation, merger or transfer of all or
substantially all of the undertaking or assets of the Corporation to another
corporation ("Successor Corporation"), the Successor Corporation resulting from
such consolidation, amalgamation, merger or transfer (if not the Corporation)
shall expressly assume, by supplemental indenture satisfactory in form to the
Trustee and executed and delivered to the Trustee, the due and punctual
performance and observance of each and every covenant and condition of this
Indenture to be performed and observed by the Corporation.

                                    ARTICLE 9
                             CONCERNING THE TRUSTEE

9.1      TRUST INDENTURE LEGISLATION

a.       If and to the extent that any provision of this Indenture limits,
         qualifies or conflicts with a mandatory requirement of Applicable
         Legislation, such mandatory requirement shall prevail.

b.       The Corporation and the Trustee agree that each will, at all times in
         relation to this Indenture and any action to be taken hereunder,
         observe and comply with and be entitled to the benefits of Applicable
         Legislation.

9.2      RIGHTS AND DUTIES OF TRUSTEE

a.       In the exercise of the rights and duties prescribed or conferred by the
         terms of this Indenture, the Trustee shall exercise that degree of
         care, diligence and skill that a reasonably prudent trustee would
         exercise in comparable circumstances. No provision of this Indenture
         shall be construed to relieve the Trustee from liability for its own
         negligent action, its own negligent failure to act, or its own wilful
         misconduct or bad faith.

b.       The obligation of the Trustee to commence or continue any act, action
         or proceeding for the purpose of enforcing any rights of the Trustee or
         the Warrantholders hereunder shall be conditional upon the
         Warrantholders furnishing, when required by notice by the Trustee,
         sufficient funds to commence or to continue such act, action or
         proceeding and an indemnity reasonably satisfactory to the Trustee to
         protect and to hold harmless the Trustee against the costs, charges and
         expenses and liabilities to be incurred thereby and any loss and damage
         it may suffer by reason thereof. None of the provisions contained in
         this Indenture shall require the Trustee to expend or to risk its own
         funds or otherwise to incur financial liability in the performance of
         any of its duties or in the exercise of any of its rights or powers
         unless indemnified as aforesaid.

c.       The Trustee may, before commencing or at any time during the
         continuance of any such act, action or proceeding, require the
         Warrantholders, at whose instance it is acting, to

                                                                              31
<PAGE>

         deposit with the Trustee the Warrant Certificates held by them, for
         which Warrant Certificates the Trustee shall issue receipts.

d.       Every provision of this Indenture that by its terms relieves the
         Trustee of liability or entitles it to rely upon any evidence submitted
         to it, is subject to the provisions of Applicable Legislation, this
         section and of section 9.3.

e.       The Trustee shall not be bound to give any notice or do or take any
         act, action or proceeding by virtue of the powers conferred on it
         hereby unless and until it shall have been required so to do under the
         terms hereof; nor shall the Trustee be required to take notice of any
         default hereunder, unless and until notified in writing of such
         default, which notice shall distinctly specify the default desired to
         be brought to the attention of the Trustee and in the absence of any
         such notice the Trustee may for all purposes of this Indenture
         conclusively assume that no default has been made in the observance or
         performance of any of the representations, warranties, covenants,
         agreements or conditions contained herein. Any such notice shall in no
         way limit any discretion herein given to the Trustee to determine
         whether or not the Trustee shall take action with respect to any
         default.

9.3      EVIDENCE, EXPERTS AND ADVISERS

a.       In addition to the reports, certificates, opinions and other evidence
         required by this Indenture, the Corporation shall furnish to the
         Trustee such additional evidence of compliance with any provision
         hereof, and in such form, as may be prescribed by Applicable
         Legislation or as the Trustee may reasonably require by written notice
         to the Corporation.

b.       In the exercise of its rights and duties hereunder, the Trustee may, if
         it is acting in good faith, rely as to the truth of the statements and
         the accuracy of the opinions expressed in statutory declarations,
         opinions, reports, written requests, consents, or orders of the
         Corporation, certificates of the Corporation or other evidence
         furnished to the Trustee pursuant to any provision hereof or of
         Applicable Legislation or pursuant to a request of the Trustee,
         provided that such evidence complies with Applicable Legislation and
         that the Trustee complies with Applicable Legislation and that the
         Trustee examines such evidence and determines that such evidence
         complies with the applicable requirements of this Indenture.

c.       Whenever it is provided in this Indenture or under Applicable
         Legislation that the Corporation shall deposit with the Trustee
         resolutions, certificates, reports, opinions, requests, orders or other
         documents, it is intended that the trust, accuracy and good faith on
         the effective date thereof and the facts and opinions stated in all
         such documents so deposited shall, in each and every such case, be
         conditions precedent to the right of the Corporation to have the
         Trustee take the action to be based thereon.

d.       Proof of the execution of an instrument in writing, including a
         Warrantholders' Request, by any Warrantholder may be made by the
         certificate of a notary public, or other officer

                                                                              32
<PAGE>

         with similar powers, that the person signing such instrument
         acknowledged to him the execution thereof, or by an affidavit of a
         witness to such execution or in any other manner which the Trustee may
         consider adequate.

e.       The Trustee may employ or retain such Counsel, accountants, appraisers
         or other experts or advisers as it may reasonably require for the
         purpose of discharging its duties hereunder and may pay reasonable
         remuneration for all services so performed by any of them, and shall
         not be responsible for any misconduct or negligence on the part of any
         such experts or advisers who have been appointed with due care by the
         Trustee.

f.       The Trustee may act and rely and shall be protected in acting and
         relying upon any resolution, certificate, statement, instrument,
         opinion, report, notice, consent, order, letter, telegram, cablegram or
         other paper document believed by it to be genuine and to have been
         signed, sent, or presented by or on behalf of the proper party or
         parties.

9.4      DOCUMENTS, MONIES, ETC. HELD BY TRUSTEE

Any monies, securities, documents of title or other instruments that may at any
time be held by the Trustee subject to the trusts hereof may be placed in the
deposit vaults of the Trustee, or an Affiliate of the Trustee, or of any
Canadian chartered bank or deposited for safekeeping with any such bank. Unless
herein otherwise expressly provided, any monies held pending the application or
withdrawal thereof under any provisions of this Indenture may be deposited in
the name of the Trustee in the deposit department of the Trustee or in any
Canadian chartered bank at the rate of interest (if any) then current on similar
deposits or, with the consent or at the written direction of the Corporation,
may be: (i) deposited in the deposit department of the Trustee or its Affiliates
or any other trust company authorized to accept deposits under the laws of
Canada or a province thereof; or (ii) invested in securities issued or
guaranteed by the Government of Canada or a province thereof or of any Canadian
chartered bank or trust company, provided that the securities shall not have a
maturity date of more than 60 days from the date of investment. Unless the
Corporation shall be in default hereunder or unless otherwise specifically
provided herein, all interest or other income received by the Trustee or its
Affiliates in respect of such deposits and investments shall belong to the
Corporation.

For the purposes of this section 9.4, "Affiliate" means affiliated companies
within the meaning of the Business Corporations Act (Alberta) ("ABCA"); and
includes Canadian Imperial Bank of Commerce, CIBC Mellon Global Securities
Company and Mellon Bank, N.A. and each of their affiliates within the meaning of
the ABCA.

The Trustee and its Affiliates shall not be liable to account for any profit to
the Corporation or any other person or entirety other than at a rate, if any,
established from time to time by the Trustee or its Affiliates.

                                                                              33
<PAGE>

9.5      ACTIONS BY TRUSTEE TO PROTECT INTEREST

The Trustee shall have power to institute and to maintain such actions and
proceedings as it may consider necessary or expedient to preserve, protect or
enforce its interests and the interests of the Warrantholders.

9.6      TRUSTEE NOT REQUIRED TO GIVE SECURITY

The Trustee shall not be required to give any bond or security in respect of the
execution of the trusts and powers of this Indenture or otherwise in respect of
the premises.

9.7      PROTECTION OF TRUSTEE

By way of supplement to the provisions of any law for the time being relating to
trustees it is expressly declared and agreed as follows:

a.       the Trustee shall not be liable for or by reason of any statements of
         fact or recitals in this Indenture or in the Warrant Certificates
         (except the representations contained in section 9.9 and in the
         certificate of the Trustee on the Warrant Certificates) or be required
         to verify the same, but all such statements or recitals are and shall
         be deemed to be made by the Corporation;

b.       nothing herein contained shall impose any obligation on the Trustee to
         see to or to require evidence of the registration or filing (or renewal
         thereof) of this Indenture or any instrument ancillary or supplemental
         hereto;

c.       the Trustee shall not be bound to give notice to any person or persons
         of the execution hereof; and

d.       the Trustee shall not have any liability or responsibility whatever or
         be in any way responsible for the consequence of any breach on the part
         of the Corporation of any of the covenants herein contained or of any
         acts of any directors, officers, employees, agents or servants of the
         Corporation.

9.8      REPLACEMENT OF TRUSTEE; SUCCESSOR BY MERGER

a.       The Trustee may resign its trust and be discharged from all further
         duties and liabilities hereunder, subject to this section 9.8, by
         giving to the Corporation not less than 90 days' prior notice in
         writing or such shorter prior notice as the Corporation may accept as
         sufficient. The Warrantholders by extraordinary resolution shall have
         power at any time to remove the existing Trustee and to appoint a new
         Trustee. In the event of the Trustee resigning or being removed as
         aforesaid or being dissolved, becoming bankrupt, going into liquidation
         or otherwise becoming incapable of acting hereunder, the Corporation
         shall forthwith appoint a new trustee unless a new trustee has already
         been appointed by the Warrantholders; failing such appointment by the
         Corporation, the retiring Trustee at the expense of the Corporation or
         any Warrantholder may apply to a justice of the Court

                                                                              34
<PAGE>

         of Queen's Bench of the Province of Alberta on such notice as such
         justice may direct, for the appointment of a new trustee; but any new
         trustee so appointed by the Corporation or by the Court shall be
         subject to removal as aforesaid by the Warrantholders. Any new trustee
         appointed under any provision of this section 9.8 shall be a
         corporation authorized to carry on the business of a trust company in
         the Province of Alberta and, if required by the Applicable Legislation
         for any other provinces, in such other provinces. On any such
         appointment the new trustee shall be vested with the same powers,
         rights, duties and responsibilities as if it had been originally named
         herein as Trustee hereunder.

b.       Upon the appointment of a successor trustee, the Corporation shall
         promptly notify the Warrantholders thereof in the manner provided for
         in section 10.2 hereof.

c.       Any corporation into or with which the Trustee may be merged or
         consolidated or amalgamated, or any corporation resulting therefrom to
         which the Trustee shall be a party, or any corporation succeeding to
         the trust business of the Trustee shall be the successor to the Trustee
         hereunder without any further act on its part or any of the parties
         hereto, provided that such corporation would be eligible for
         appointment as a successor trustee under subsection 9.8(a).

d.       Any Warrant Certificates certified but not delivered by a predecessor
         trustee may be certified by the successor trustee in the name of the
         predecessor or successor trustee.

9.9      CONFLICT OF INTEREST

a.       The Trustee represents to the Corporation that at the time of execution
         and delivery hereof no material conflict of interest exists between its
         role as a trustee hereunder and its role in any other capacity and
         agrees that in the event of a material conflict of interest arising
         hereafter it will, within 90 days after ascertaining that it has such
         material conflict of interest, either eliminate the same or assign its
         trust hereunder to a successor trustee approved by the Corporation and
         meeting the requirements set forth in subsection 9.8(a).
         Notwithstanding the foregoing provisions of this subsection 9.9(a), if
         any such material conflict of interest exists or hereafter shall exist,
         the validity and enforceability of this Indenture and the Warrant
         Certificate shall not be affected in any manner whatsoever by reason
         thereof.

b.       Subject to subsection 9.9(a), the Trustee, in its personal or any other
         capacity, may buy, lend upon and deal in securities of the Corporation
         and generally may contract and enter into financial transactions with
         the Corporation or any Subsidiary of the Corporation without being
         liable to account for any profit made thereby.

9.10     INDEMNITY OF TRUSTEE

The Corporation indemnifies and saves harmless the Trustee and its officers,
directors, employees and agents from and against any and all liabilities,
losses, costs, claims, actions or demands whatsoever brought against the Trustee
which it may suffer or incur as a result of or arising out of the performance of
its duties and obligations under this Indenture, including any

                                                                              35
<PAGE>

and all legal fees and disbursements of whatever kind or nature, save only in
the event of the negligent action, the negligent failure to act, or the wilful
misconduct or bad faith of the Trustee. It is understood and agreed that this
indemnification shall survive the termination or discharge of this Indenture or
the resignation of the Trustee.

9.11     ACCEPTANCE OF TRUST

This Indenture is entered into with the Trustee for the benefit of, and the
Trustee declares that it holds this Indenture and all rights, interests and
benefits of this Indenture for, such persons, firms and corporations, and each
of them, who are from time to time Warrantholders. The Trustee hereby accepts
the trusts in this Indenture declared and provided for and agrees to perform the
same upon the terms and conditions herein set forth.

9.12     TRUSTEE NOT TO BE APPOINTED RECEIVER

The Trustee and any person related to the Trustee shall not be appointed a
receiver, a receiver and manager or liquidator of all or any part of the assets
or undertaking of the Corporation.

9.13     PURCHASE WARRANT REGISTER

The Trustee shall, at all times while any Purchase Warrants are outstanding,
maintain, at its principal office in Vancouver, British Columbia, a Warrant
Register in which shall be recorded the following information:

         (1)      the numbers of all outstanding Warrant Certificates, including
                  the date of issuance;

         (2)      the numbers of all Warrant Certificates exchanged or
                  exercised, including the date of exchange or exercise;

         (3)      the names and addresses of all Warrantholders;

         (4)      the particulars of all transfers of Purchase Warrants; and

         (5)      such other information as the Trustee, in its discretion,
                  deems necessary or advisable.

9.14     REGISTER OPEN FOR INSPECTION

The Warrant Register shall be open at all reasonable times on a Business Day
during business hours for inspection by the Corporation, the Trustee or any
Warrantholder. The Trustee shall, from time to time when requested to do so by
the Corporation in writing, furnish the Corporation with a list of names and
addresses of holders of Purchase Warrants entered in the Register kept by the
Trustee.

                                                                              36
<PAGE>

9.15     TRUSTEE NOT REQUIRED TO GIVE NOTICE OF DEFAULT

The Trustee shall not be bound to give any notice or do or take any act, action
or proceeding by virtue of the powers conferred on it hereby unless and until it
shall have been required so to do under the terms hereof; nor shall the Trustee
be required to take notice of any default hereunder, unless and until notified
in writing of such default, which notice shall distinctly specify the default
desired to be brought to the attention of the Trustee and in the absence of any
such notice the Trustee may for all purposes of this Indenture conclusively
assume that no default has been made in the observance or performance of any of
the representations, warranties, covenants, agreements or conditions contained
herein. Any such notice shall in no way limited any discretion herein given to
the Trustee to determine whether or not the Trustee shall take action with
respect to any default.

                                   ARTICLE 10
                                     GENERAL

10.1     NOTICE TO THE CORPORATION AND THE TRUSTEE

a.       Unless herein otherwise expressly provided, any notice to be given
         hereunder to the Corporation or the Trustee shall be deemed to be
         validly given if delivered or if sent by registered letter, postage
         prepaid or telecopied:

         If to the Corporation:

                  Golden Star Resources Ltd.
                  10579 Bradford Road, Suite 103
                  Littleton, Colorado 80127-4247 U.S.A.
                  Attention:     Peter J.L. Bradford, President
                  Facsimile No.: (303) 830-9094

         If to the Trustee:

                  CIBC Mellon Trust Company
                  1600, 1066 West Hastings Street
                  Vancouver, British Columbia
                  V6E 3X1
                  Attention:     Manager, Corporate Trust Department
                  Facsimile No.: (604) 688-4301

         and any such notice delivered in accordance with the foregoing shall be
         deemed to have been received on the date of delivery or, if mailed, on
         the fifth Business Day following the date of the postmark on such
         notice or, if sent by telecopy, on the next Business Day following the
         date of transmission, provided that its contents are transmitted and
         received completely and accurately.

                                                                              37
<PAGE>

b.       The Corporation or the Trustee, as the case may be, may notify the
         other in the manner provided in subsection 10.1(a) of a change of
         address which, from the effective date of such notice and until changed
         by like notice, shall be the address of the Corporation or the Trustee,
         as the case may be, for all purposes of this Indenture.

c.       If, by reason of a strike, lockout or other work stoppage, actual or
         threatened, involving postal employees, any notice to be given to the
         Trustee or to the Corporation hereunder could reasonably be considered
         unlikely to reach its destination, such notice shall be valid and
         effective only if it is delivered to the named officer of the party to
         which it is addressed or, if it is delivered to such party at the
         appropriate address provided in subsection 10.1(a), by cable, telegram,
         telecopy or other means of prepaid, transmitted and recorded
         communication.

10.2     NOTICE TO WARRANTHOLDERS

a.       Any notice to the Warrantholders under the provisions of this Indenture
         shall be valid and effective if sent by telecopier or through the
         ordinary post addressed to such holders at their postal addresses
         appearing on the register hereinbefore mentioned and shall be deemed to
         have been effectively given on the date of delivery or, if mailed, five
         Business Days following actual posting of the notice or, if sent by
         telecopy, on the next Business Day following the date of transmission,
         provided that its contents are transmitted and received completely and
         accurately. Accidental error or omission in giving notice or accidental
         failure to mail notice to any holder will not invalidate any action or
         proceeding founded thereon.

b.       If, by reason of a strike, lockout or other work stoppage, actual or
         threatened, involving postal employees, any notice to be given to the
         Warrantholders hereunder could reasonably be considered unlikely to
         reach its destination, such notice shall be valid and effective only if
         it is delivered personally to such Warrantholders or if delivered to
         the address for such Warrantholders contained in the register of
         Purchase Warrants maintained by the Trustee, by telecopy or other means
         of prepaid transmitted and recorded communication.

c.       All notices may be given to whichever one of the Warrantholders (if
         more than one) is named first in the appropriate register hereinbefore
         mentioned, and any notice so given shall be sufficient notice to all
         Warrantholders of any and any other persons (if any) interested in such
         Warrants.

10.3     OWNERSHIP AND TRANSFER OF PURCHASE WARRANTS

A Warrantholder shall be entitled to the rights evidenced by its Warrant
Certificate free from all equities or rights of set off or counterclaim between
the Corporation and the original or any intermediate holder of the Purchase
Warrants and all persons may act accordingly and the receipt of any such
Warrantholder for the Common Shares which may be acquired pursuant thereto shall
be a good discharge to the Corporation and the Trustee for the same and neither
the Corporation

                                                                              38
<PAGE>

nor the Trustee shall be bound to inquire into the title of any such holder
except where the Corporation or the Trustee is required to take notice by
statute or by order of a court of competent jurisdiction.

10.4     EVIDENCE OF OWNERSHIP

a.       Upon receipt of a certificate of any bank, trust company or other
         depositary satisfactory to the Trustee stating that the Purchase
         Warrants specified therein have been deposited by a named person with
         such bank, trust company or other depositary and will remain so
         deposited until the expiry of the period specified therein, the
         Corporation and the Trustee may treat the person so named as the owner,
         and such certificate as sufficient evidence of the ownership by such
         person of such Purchase Warrant during such period, for the purpose of
         any requisition, direction, consent, instrument or other document to be
         made, signed or given by the holder of the Purchase Warrant so
         deposited.

b.       The Corporation and the Trustee may accept as sufficient evidence of
         the fact and date of the signing of any requisition, direction,
         consent, instrument or other document by any person: (i) the signature
         of any officer of any bank, trust company, or other depositary
         satisfactory to the Trustee as witness of such execution, (ii) the
         certificate of any notary public or other officer authorized to take
         acknowledgments of deeds to be recorded at the place where such
         certificate is made that the person signing acknowledged to him the
         execution thereof, or (iii) a satisfactory declaration of a witness of
         such execution.

10.5     COUNTERPARTS

This Indenture may be executed in several counterparts, each of which when so
executed shall be deemed to be an original and such counterparts together shall
constitute one and the same instrument and notwithstanding their date of
execution they shall be deemed to be dated as of the date hereof.

10.6     SATISFACTION AND DISCHARGE OF INDENTURE

Upon the earlier of:

a.       the date by which there shall have been delivered to the Trustee for
         exercise or destruction all Warrant Certificates theretofore certified
         hereunder; or

b.       the Time of Expiry;

and if all certificates representing Common Shares required to be issued in
compliance with the provisions hereof have been issued and delivered hereunder
and if all payments required to be made pursuant to Article 3 have been made in
accordance therewith, this Indenture shall cease to be of further effect.
Notwithstanding the foregoing, the indemnities provided to the Trustee by the
Corporation hereunder shall remain in full force and effect and survive the
termination of this Indenture.

                                                                              39
<PAGE>

10.7     SUCCESSORS

All the covenants and provisions of this Indenture by or for the benefit of the
Corporation or the Trustee shall bind and enure to the benefit of their
respective successors and assigns hereunder.

10.8     SOLE BENEFIT OF PARTIES AND WARRANTHOLDERS

Nothing in this Indenture or in the Warrant Certificates, expressed or implied,
shall give or be construed to give to any person other than the parties hereto
and the Warrantholders, as the case may be, any legal or equitable right, remedy
or claim under this Indenture, or under any covenant or provision herein or
therein contained, all such covenants and provisions being for the sole benefit
of the parties hereto and the Warrantholders.

10.9     COMMON SHARES OR PURCHASE WARRANTS OWNED BY THE CORPORATION
         OR ITS SUBSIDIARIES - CERTIFICATE TO BE PROVIDED

For the purpose of disregarding any Purchase Warrants owned legally or
beneficially by the Corporation or any Subsidiary of the Corporation in section
7.16, the Corporation shall provide to the Trustee, from time to time, a
certificate of the Corporation setting forth as at the date of such certificate:

a.       the names (other than the name of the Corporation) of the registered
         holders of Purchase Warrants which, to the knowledge of the
         Corporation, are owned by or held for the account of the Corporation or
         any Subsidiary of the Corporation; and

b.       the number of Purchase Warrants owned legally or beneficially by the
         Corporation or any Subsidiary of the Corporation;

                                                                              40
<PAGE>

and the Trustee, in making the computations in section 7.16, shall be entitled
to rely on such certificate without any additional evidence.

IN WITNESS WHEREOF the parties hereto have executed this Indenture under their
respective corporate seals and the hands of their proper officers in that
behalf.

                          GOLDEN STAR RESOURCES LTD.

                          Per:
                                --------------------------------------------
                                 ALLAN J. MARTER, SENIOR VICE PRESIDENT
                                 AND CHIEF FINANCIAL OFFICER

                          CIBC MELLON TRUST COMPANY

                          Per:
                                --------------------------------------------
                                 LESLIE MACFARLANE

                          Per:
                                --------------------------------------------
                                 VAN BOT

                                                                              41
<PAGE>

THIS IS SCHEDULE "A" TO THE WARRANT INDENTURE MADE AS OF JULY 18, 2002 BETWEEN
GOLDEN STAR RESOURCES LTD. AND CIBC MELLON TRUST COMPANY AS TRUSTEE.

CUSIP NO. 38119T 15 3

THE PURCHASE WARRANTS REPRESENTED BY THIS CERTIFICATE WILL BE VOID AND OF NO
VALUE UNLESS EXERCISED AT OR BEFORE 4:30 P.M. (VANCOUVER TIME), ON JULY 24,
2004.

                               WARRANT CERTIFICATE

                           GOLDEN STAR RESOURCES LTD.
              (A corporation amalgamated under the laws of Canada)

<Table>
<S>                               <C>
WARRANT CERTIFICATE               __________________________ PURCHASE WARRANTS entitling
NO. ________                      the holder to acquire, subject to adjustment, one Common
                                  Share for each such Purchase Warrant.
</Table>

THIS IS TO CERTIFY THAT ___________________________________________________
(hereinafter referred to as the "holder") is the registered holder of the number
of Purchase Warrants to acquire Common Shares, as hereinafter defined, of Golden
Star Resources Ltd. (the "Corporation") as set forth in this Warrant certificate
("Warrant Certificate"). One Purchase Warrant represented hereby plus $2.28
entitles the holder thereof to acquire, one fully paid and non-assessable common
share ("Common Share") of the Corporation, without nominal or par value, in the
manner and subject to the restrictions and adjustments set forth herein, at any
time and from time to time until 4:30 p.m. (Vancouver time) (the "Time of
Expiry") on July 24, 2004 (the "Expiry Date").

The right to acquire Common Shares hereunder may only be exercised by the holder
within the time set forth above by:

a.       duly completing and executing the Exercise Form found on the back
         hereof;

b.       surrendering this Warrant Certificate to CIBC Mellon Trust Company (the
         "Trustee") at the principal office of the Trustee in the City of
         Vancouver at 1600, 1066 West Hastings Street, Vancouver, British
         Columbia V6E 3X1; and

c.       remitting wire transfer, certified cheque, bank draft or money order in
         lawful money of Canada, payable to or to the order of the Corporation
         at par where this Warrant Certificate is so surrendered, for the
         aggregate purchase price of the Common Shares so subscribed for.

                                                                              42
<PAGE>

These Purchase Warrants shall be deemed to be surrendered only upon personal
delivery hereof or, if sent by mail or other means of transmission, upon actual
receipt thereof by the Trustee at the office referred to above.

Upon surrender of these Purchase Warrants, the person or persons in whose name
or names the Common Shares issuable upon exercise of the Purchase Warrants are
to be issued shall be deemed for all purposes (except as provided in the
Indenture hereinafter referred to) to be the holder or holders of record of such
Common Shares and the Corporation has covenanted that it will (subject to the
provisions of the Indenture) cause a certificate or certificates representing
such Common Shares to be delivered or mailed to the person or persons at the
address or addresses specified in the Exercise Form within five Business Days.

The registered holder of this Warrant Certificate may acquire any lesser number
of Common Shares than the number of Common Shares which may be acquired for the
Purchase Warrants represented by this Warrant Certificate. In such event, the
holder shall be entitled to receive a new certificate for the balance of the
Common Shares which may be acquired. No fractional Common Shares will be issued.
The holder hereby expressly waives the right to receive any fractional Common
Shares upon the exercise hereof in full or in part and further waives the right
to receive any cash or other consideration in lieu thereof.

The Purchase Warrants represented by this certificate are issued under and
pursuant to a Warrant Indenture (herein referred to as the "Indenture") made as
of July 18, 2002 between the Corporation and the Trustee. Reference is made to
the Indenture and any instruments supplemental thereto for a full description of
the rights of the holders of the Purchase Warrants and the terms and conditions
upon which the Purchase Warrants are, or are to be, issued and held, with the
same effect as if the provisions of the Indenture and all instruments
supplemental thereto were set forth herein. By acceptance hereof, the holder
assents to all provisions of the Indenture. In the event of a conflict between
the provisions of the Warrant Certificate and the Indenture, the provisions of
the Indenture shall govern. A copy of the Indenture is available for inspection
at the principal office of the Trustee. Capitalized terms used in the Indenture
have the meaning herein as therein, unless otherwise defined.

In the event of any alteration of the Common Shares, including any subdivision,
consolidation or reclassification, and in the event of any form of
reorganization of the Corporation including any amalgamation, merger or
arrangement, the holders of Purchase Warrants shall, upon exercise of the
Purchase Warrants following the occurrence of any of those events, be entitled
to receive the same number and kind of securities that they would have been
entitled to receive had they exercised their Purchase Warrants immediately prior
to the occurrence of those events.

The registered holder of this Warrant Certificate may, at any time prior to the
Expiry Date, upon surrender hereof to the Trustee at its principal offices in
the City of Vancouver, exchange this Warrant Certificate for other certificates
entitling the holder to acquire, in the aggregate, the same number of Common
Shares as may be acquired under this Warrant Certificate.

                                                                              43
<PAGE>

The holding of the Purchase Warrants evidenced by this Warrant Certificate shall
not constitute the holder hereof a shareholder of the Corporation or entitle the
holder to any right or interest in respect thereof except as expressly provided
in the Indenture or in this Warrant Certificate.

The Indenture provides that all holders of Purchase Warrants shall be bound by
any resolution passed at a meeting of the holders held in accordance with the
provisions of the Indenture and resolutions signed by the holders of Purchase
Warrants entitled to acquire a specified majority of the Common Shares which may
be acquired pursuant to all then outstanding Purchase Warrants.

The Purchase Warrants evidenced by this Warrant Certificate may be transferred
on the register kept at the principal office of the Trustee in Vancouver,
British Columbia by the registered holder hereof or its legal representatives or
its attorney duly appointed by an instrument in writing in form and execution
satisfactory to the Trustee, only upon compliance with the conditions prescribed
in the Indenture and upon compliance with such reasonable requirements as the
Trustee may prescribe.

This Warrant Certificate shall not be valid for any purpose whatever unless and
until it has been certified by or on behalf of the Trustee.

Time shall be of the essence hereof. This Warrant Certificate shall be governed
by and construed in accordance with the laws of the Province of Alberta and the
federal laws of Canada applicable therein and shall be treated in all respects
as an Alberta contract.

IN WITNESS WHEREOF the Corporation has caused this Warrant Certificate to be
signed by its duly authorized officer as of ______________________________.

                                     GOLDEN STAR RESOURCES LTD.

                                     Per:
                                          ---------------------------------

Certified by:

CIBC MELLON TRUST COMPANY
Trustee

By:
    ---------------------------------

                                                                              44
<PAGE>

                          TRANSFER OF PURCHASE WARRANTS

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to
______________________________________, _______________________ Purchase
Warrants of Golden Star Resources Ltd. registered in the name of the undersigned
on the records of CIBC Mellon Trust Company represented by the Warrant
Certificate attached and irrevocably appoints
_____________________________________ the attorney of the undersigned to
transfer the said securities on the books or register with full power of
substitution.

If less than all the Purchase Warrants represented by this Warrant Certificate
are being transferred, the Warrant Certificate representing those Purchase
Warrants not transferred will be registered in the name appearing on the face of
this Warrant Certificate and such certificates (please check one):

(a) __________    should be sent by first class mail to the following address:

                  -------------------------------------------------------------

                  -------------------------------------------------------------

(b) __________    should be held for pick up at the office of the Trustee at
                  which this Warrant Certificate is deposited.

DATED the _____ day of __________, ______.

----------------------------------       --------------------------------------
Signature Guaranteed                     (Signature of Warrantholder)

Instructions:

1.       Signature of the Warrantholder must be the signature of the person
         appearing on the face of this Warrant Certificate.

2.       If the Transfer Form is signed by a trustee, executor, administrator,
         curator, guardian, attorney, trustee in bankruptcy, liquidator, officer
         of a corporation or any person acting in a judiciary or representative
         capacity, the certificate must be accompanied by evidence of authority
         to sign satisfactory to the Trustee and the Corporation.

3.       The signature on the Transfer Form must be guaranteed by an authorized
         officer of an Eligible Institution, as defined below.

                                                                              45
<PAGE>

4.       The signature(s) must be guaranteed by an "Eligible Institution", which
         means a Canadian Schedule I chartered bank, a major trust company in
         Canada, a member of the Securities Transfer Association Medallion
         Program (STAMP), a member of the Stock Exchange Medallion Program
         (SEMP) or a member of the New York Stock Exchange Inc. Medallion
         Signature Program (MSP). Members of these programs are usually members
         of a recognized stock exchange in Canada or the United States, members
         of the Investment Dealers Association or the National Association of
         Securities Dealers and include many banks and trust companies in the
         United States. The Guarantor must affix a stamp bearing the actual
         words "Signature Guaranteed".

         Please note - signature guarantees are not accepted from treasury
         branches or credit unions unless they are members of STAMP.

                              OFFICE OF THE TRUSTEE

                            CIBC Mellon Trust Company
                         1600, 1066 West Hastings Street
                       Vancouver, British Columbia V6E 3X1

                                                                              46
<PAGE>

                                  EXERCISE FORM

TO:      Golden Star Resources Ltd. and
         CIBC Mellon Trust Company

(a) The undersigned hereby irrevocably exercises the right to acquire __________
Common Shares of Golden Star Resources Ltd. (or such number of other securities
or property to which such Purchase Warrants entitle the undersigned in lieu
thereof or in addition thereto under the provisions of the Indenture referred to
in the accompanying Warrant Certificate) in accordance with and subject to the
provisions of such Indenture. A wire transfer, certified cheque, bank draft or
money order payable to Golden Star Resources Ltd. in payment of the Common
Shares hereby subscribed for is enclosed.

(b) The Common Shares (or other securities or property) are to be issued as
follows:

         Name:
                           -----------------------------------------------------
                           (print clearly)
         Address in full:
                           -----------------------------------------------------

         -----------------------------------------------------------------------

         Number of Common Shares:
                                  ----------------------------------------------

Note: If further nominees intended, please attach (and initial) schedule giving
these particulars.

Such securities (please check one):

(a) __________    should be sent by first class mail to the following address:

                  -------------------------------------------------------------

                  -------------------------------------------------------------

         OR

(b) __________    should be held for pick up at the office of the Trustee at
                  which this Warrant Certificate is deposited.

If the number of Purchase Warrants exercised are less than the number of
Purchase Warrants represented hereby, the undersigned requests that the new
Warrant Certificate representing the balance of the Purchase Warrants be
registered in the name of
                          -----------------------------------------------------

-------------------------------------------------------------------------------

                                                                              47
<PAGE>

whose address is
                 --------------------------------------------------------------

-------------------------------------------------------------------------------

Such securities (please check one):

(a) __________    should be sent by first class mail to the following address:

                  -------------------------------------------------------------

                  -------------------------------------------------------------

         OR

(b) __________    should be held for pick up at the office of the Trustee at
                  which this Warrant Certificate is deposited.

In the absence of instructions to the contrary, the securities or other property
will be issued in the name of or to the holder hereof and will be sent by first
class mail to the last address of the holder appearing on the register
maintained for the Purchase Warrants.

DATED this ____ day of __________, _______.

------------------------------------        ------------------------------------
Signature Guaranteed                        (Signature of Warrantholder)

                                            ------------------------------------
                                            Print full name

                                            ------------------------------------

                                            ------------------------------------
                                            Print full address

Instructions:

1.       The registered holder may exercise its right to receive Common Shares
         by completing this form and surrendering this form and the Warrant
         Certificate representing the Purchase Warrants being exercised to CIBC
         Mellon Trust Company at its principal office at 1600, 1066 West
         Hastings Street, Vancouver, British Columbia V6E 3X1. Certificates for
         Common Shares will be delivered or mailed within five business days
         after the exercise of the Purchase Warrants.

                                                                              48
<PAGE>

2.       If the Exercise Form indicates that Common Shares are to be issued to a
         person or persons other than the registered holder of the Certificate,
         the signature of such holder of the Exercise Form must be guaranteed by
         an authorized officer of an Eligible Institution, as defined below.

3.       If the Exercise Form is signed by a trustee, executor, administrator,
         curator, guardian, attorney, trustee in bankruptcy, liquidator, officer
         of a corporation or any person acting in a fiduciary or representative
         capacity, the certificate must be accompanied by evidence of authority
         to sign satisfactory to the Trustee and the Corporation.

4.       The signature(s) must be guaranteed by an "Eligible Institution", which
         means a Canadian Schedule I chartered bank, a major trust company in
         Canada, a member of the Securities Transfer Association Medallion
         Program (STAMP), a member of the Stock Exchange Medallion Program
         (SEMP) or a member of the New York Stock Exchange Inc. Medallion
         Signature Program (MSP). Members of these programs are usually members
         of a recognized stock exchange in Canada or the United States, members
         of the Investment Dealers Association or the National Association of
         Securities Dealers and include many banks and trust companies in the
         United States. The Guarantor must affix a stamp bearing the actual
         words "Signature Guaranteed".

         Please note - signature guarantees are not accepted from treasury
         branches or credit unions unless they are members of STAMP.

                              OFFICE OF THE TRUSTEE

                            CIBC Mellon Trust Company
                         1600, 1066 West Hastings Street
                       Vancouver, British Columbia V6E 3X1

                                                                              49<PAGE>
                                                                    EXHIBIT 10.1

                         CANADIAN UNDERWRITING AGREEMENT

July 17, 2002

Golden Star Resources Ltd.
10579 Bradford Road
Suite 103
Littleton, Colorado
USA, 80127-4247

ATTENTION: MR. PETER J. BRADFORD, PRESIDENT AND CHIEF EXECUTIVE OFFICER

Dear Sir:

         Based upon and subject to the terms and conditions set out below,
Canaccord Capital Corporation (the "LEAD MANAGER") and BMO Nesbitt Burns Inc.
(collectively, the "CANADIAN UNDERWRITERS" and, individually, a "CANADIAN
UNDERWRITER") hereby severally, and not jointly, in their respective percentages
set out in Section 16 hereof, offer to purchase from Golden Star Resources Ltd.
(the "CORPORATION"), and by its acceptance of the offer constituted by this
letter, the Corporation agrees to issue and sell to the Canadian Underwriters,
at the Time of Closing (as hereinafter defined), 14,000,000 units (collectively,
the "UNITS" and individually, a "UNIT") of the Corporation (the "OFFERED
SECURITIES"), each Unit consisting of one (1) common share (a "COMMON SHARE") of
the Corporation and one-half (1/2) common share purchase warrant, each whole
warrant exercisable at a price per Common Share of Cdn$2.28 until July 24, 2004
(each whole warrant, a "WARRANT"), at an offering price of Cdn$1.90 per Unit for
aggregate gross proceeds of Cdn$26,600,000. The offering of the Offered
Securities by the Corporation pursuant to this Agreement is hereinafter referred
to as the "OFFERING".

         The Corporation hereby grants to the Canadian Underwriters (in
accordance with the percentages set forth in Section 16 hereof) a one-time
non-assignable option (the "CANADIAN UNDERWRITERS' OPTION") to purchase
severally, and not jointly, up to 2,100,000 additional Units (the "ADDITIONAL
UNITS") upon the terms and conditions set forth herein only for the purpose of
covering over-allotments made in connection with the sale of the Offered
Securities. The Canadian Underwriters' Option shall be exercisable, in whole or
in part, by the Lead Manager giving notice to the Corporation not later 30 days
following the Closing Date (as defined herein), any such notice to specify the
number of the Additional Units to be purchased and the closing date with respect
to such purchase (which closing date shall be no later than five full business
days after the written notice of election to purchase the Additional Units under
the Canadian Underwriters' Option is given.) Pursuant to such notice, the
Canadian Underwriters shall purchase and the Corporation shall issue and sell
the number of Additional Units indicated in such notice, in accordance with the
provisions of Section 11 hereof. In this Agreement, the Offered Securities, and
to the extent that the Canadian Underwriters' Option is exercised, the
Additional Units, are collectively called the "SECURITIES".

<PAGE>

                                     - 2 -

         This offer is conditional upon, among other things: the Corporation
having prepared and filed and obtained receipts for a preliminary short form
prospectus and a (final) short form prospectus in respect of the distribution of
the Securities, with and from the securities regulatory authorities in the
provinces of British Columbia, Alberta, Manitoba and Ontario, (the "QUALIFYING
PROVINCES"), pursuant to the Short Form Prospectus System (the "POP SYSTEM")
established under National Instrument 44-101 of the Canadian Securities
Administrators ("NI 44-101"), qualifying the distribution by the Corporation of
the Securities to purchasers resident in such provinces; a registration
statement on Form S-3 (File No. 333-91666) in respect of the Securities having
been filed with the Securities and Exchange Commission (the "SEC"); the
Registration Statement and any post-effective amendment thereto, having been
declared effective by the SEC in such form; no stop order suspending the
effectiveness of the Registration Statement having been issued and no proceeding
for that purpose having been initiated or threatened by the SEC; no order
preventing or suspending the use of any U.S. Preliminary Prospectus having been
issued by the SEC; and the U.S. Preliminary Prospectus, at the time of filing
thereof, conforming in all material respects to the requirements of the U.S.
Securities Act and the rules and regulations of the SEC thereunder, and not
containing an untrue statement of a material fact or omitting to state a
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading.

         The Corporation shall pay to the Lead Manager, on behalf of the
Canadian Underwriters, a fee (the "UNDERWRITING FEE") at the Time of Closing
equal to Cdn$0.1045 per Offered Security sold pursuant to the terms of this
Canadian Underwriting Agreement (being 5.5% of the issue price per Offered
Security) in consideration of the services to be rendered by the Canadian
Underwriters in connection with the Offering. Such services shall include,
without limitation: (i) acting as financial advisors to the Corporation in the
preparation of documentation relating to the sale of the Securities; (ii)
forming and managing banking, selling and other groups for the sale of the
Securities; (iii) distributing the Securities to the public both directly and
through other registered dealers and brokers; (iv) assisting the Corporation in
connection with the preparation and finalization of the Preliminary Prospectus,
the Final Prospectus and the U.S. Registration Statement (each as hereinafter
defined) qualifying the distribution of, or registering, as the case may be, the
Securities; (v) performing administrative work in connection with these matters;
and (vi) all other services arising out of the agreement resulting from the
Corporation's acceptance of this offer.

         To the extent the Canadian Underwriters' Option is exercised, the
Corporation shall pay to the Lead Manager, on behalf of the Canadian
Underwriters, a fee at the Over-Allotment Closing (as hereinafter defined) equal
to the Underwriting Fee for each Additional Unit sold under this Canadian
Underwriting Agreement.

         In addition to the Underwriting Fee, in return for the Canadian
Underwriters' services, the Corporation will issue to the Canadian Underwriters
on the Closing Date 770,000 warrants (the "UNDERWRITERS' WARRANTS"). Each
Underwriters' Warrant will be exercisable into one Common Share. The
Underwriters' Warrants will be exercisable by the Underwriters at a price of
Cdn$2.28 per share for the period beginning one year following the Closing Date
and ending three years following the Closing Date.

<PAGE>

                                      - 3 -

         The Canadian Underwriters and the Corporation acknowledge that Schedule
A and Schedule B form a part of this Agreement.

         The Canadian Underwriters and the Corporation acknowledge that an
offering of the Units is also being concurrently conducted in the United States
by the U.S. Agents, who are affiliates of the Canadian Underwriters, under the
terms of the U.S. Agreement and the terms of the Inter-Dealer Agreement, as well
as applicable U.S. Securities Laws.

         The following, in addition to the above preamble, are the terms and
conditions of the agreement between the Corporation and the Canadian
Underwriters:

SECTION 1 DEFINITIONS AND INTERPRETATION

(1)      In this Agreement:

         "BUSINESS DAY" means any day other than a Saturday, Sunday or statutory
         or civic holiday in the City of Toronto, Ontario, and the City of New
         York, New York;

         "CANADIAN SECURITIES LAWS" means, collectively, all applicable
         securities laws of each of the Qualifying Provinces and the respective
         rules and regulations under such laws, together with applicable
         published policy statements, notices and orders of the securities
         regulatory authorities in the Qualifying Provinces;

         "CLOSING DATE" has the meaning ascribed thereto in Section 10(1)
         hereof;

         "CONTINUOUS DISCLOSURE MATERIALS" means all documents previously
         published or filed by the Corporation with the securities regulatory
         authority in each province of Canada and the Exchanges;

         "EXCHANGES" means the Toronto Stock Exchange ("TSX") and the American
         Stock Exchange ("AMEX");

         "FINAL PROSPECTUS" means the Canadian (final) short form prospectus
         dated the date hereof including any documents or information
         incorporated therein by reference, prepared by the Corporation and
         relating to the distribution of the Securities and the Offering;

         "INTER-DEALER AGREEMENT" means that certain inter-dealer agreement,
         dated the date hereof, between the Canadian Underwriters and the U.S.
         Agents;

         "MATERIAL RESOURCE PROPERTIES" has the meaning ascribed thereto in
         Section 6(1)(k);

         "MATERIAL SUBSIDIARIES" means the entities set out in Schedule A in
         which the Corporation holds the types and percentages of securities or
         other ownership interests therein set forth;

         "MRRS DECISION DOCUMENT" means a decision document issued by the
         applicable Canadian securities regulatory authority pursuant to
         National Policy 43-201 and which evidences the receipts by the
         applicable Canadian securities regulatory authorities in

<PAGE>

                                      - 4 -

         each of the Qualifying Provinces for the Preliminary Prospectus or the
         Final Prospectus, as the case may be;

         "PRELIMINARY PROSPECTUS" means the Canadian preliminary short form
         prospectus dated June 13, 2002, as amended and restated as of July 1,
         2002, including any documents or information incorporated therein by
         reference, prepared by the Corporation and relating to the distribution
         of the Securities and the Offering;

         "PROSPECTUS AMENDMENT" means any amendment to the Preliminary
         Prospectus or the Final Prospectus required to be prepared and filed by
         the Corporation under applicable Canadian Securities Laws in connection
         with the Offering;

         "QUALIFYING AUTHORITIES" means each of the securities regulatory
         authorities in each of the Qualifying Provinces;

         "RESOURCE PROPERTIES" has the meaning ascribed thereto in Section
         6(1)(k) hereof;

         "STOCK OPTION PLANS" means the stock option plans of the Corporation as
         approved by the shareholders of the Corporation, as constituted on the
         date hereof;

         "SUPPLEMENTARY MATERIAL" has the meaning ascribed thereto in Section
         13(1)(a);

         "TIME OF CLOSING" has the meaning ascribed thereto in Section 10(1)
         hereof;

         "UNITED STATES" means the United States of America, its territories and
         possessions, any state of the United States, the District of Columbia,
         and the areas subject to the jurisdiction of the United States of
         America;

         "U.S. AGENTS" means Canaccord Capital Corporation (USA) Inc. and BMO
         Nesbitt Burns Corp. together, and "U.S. Agent" means either one of
         them;

         "U.S. AGREEMENT" means that certain agency agreement, dated the date
         hereof, between the U.S. Agents and the Corporation;

         "U.S. EXCHANGE ACT" means the United States Securities Exchange Act of
         1934, as amended;

         "U.S. REGISTRATION STATEMENT" means the registration statement on Form
         S-3 (File No. 333-91666) filed with the SEC, with respect to the
         Securities, under the U.S. Securities Act, including the exhibits,
         financial statements and schedules thereto, which Registration
         Statement has been declared effective by the SEC and includes the U.S.
         Prospectus;

         "U.S. SECURITIES ACT" means the United States Securities Act of 1933,
         as amended;

         "U.S. SECURITIES LAWS" means the applicable blue sky or securities
         legislation in the United States, together with the U.S. Exchange Act
         and the U.S. Securities Act and the rules and regulations of the SEC
         and the applicable state securities regulators thereunder;

<PAGE>

                                      - 5 -

         "U.S. PRELIMINARY PROSPECTUS " means the preliminary prospectus
         included in the U.S. Registration Statement;

         "U.S. PROSPECTUS" means the prospectus dated July 17, 2002 included in
         the U.S. Registration Statement; and

         "WARRANT INDENTURE" means the warrant indenture to be entered into
         between the Corporation and CIBC Mellon Trust Company, as warrant
         agent, providing for the creation and issue of the Warrants.

(2)      The division of this Agreement into sections, subsections, paragraphs
         and other subdivisions and the insertion of headings are for
         convenience of reference only and shall not affect the construction or
         interpretation of this Agreement. Unless something in the subject
         matter or context is inconsistent therewith, references herein to
         sections, subsections, paragraphs and other subdivisions are to
         sections, subsections, paragraphs and other subdivisions of this
         Agreement.

(3)      Except as otherwise indicated, all amounts expressed herein in terms of
         money refer to lawful currency of Canada and all payments to be made
         hereunder shall be made in such currency.

SECTION 2 COMPLIANCE WITH SECURITIES LAWS

(1)      As of the date of this Canadian Underwriting Agreement, the Corporation
         will have prepared and filed the Preliminary Prospectus with the
         Qualifying Authorities together with the required supporting documents,
         will have addressed the comments made by such Qualifying Authorities,
         in respect of the Preliminary Prospectus and any amendment thereto, and
         shall have received an MRRS Decision Document in respect thereof. The
         Corporation covenants and agrees with the Canadian Underwriters that as
         soon as practicable, it will prepare (subject to review by the Canadian
         Underwriters) and file with the Qualifying Authorities, the Final
         Prospectus, together with the required supporting documents, and use
         its reasonable best efforts to obtain the MRRS Decision Document from
         such Qualifying Authorities in order to qualify the distribution of the
         Securities.

(2)      The representations and warranties made by the Corporation in Section 2
         of the U.S. Agreement are incorporated herein by reference and shall
         have the same effect as if made to the Canadian Underwriters under this
         Canadian Underwriting Agreement.

SECTION 3 DUE DILIGENCE

         Prior to the Time of Closing, and, if applicable, prior to the filing
of any Prospectus Amendment and prior to the filing of any Supplementary
Material, including on any intervening weekends, the Corporation shall allow the
Canadian Underwriters to participate fully in the preparation of such documents
and shall allow the Canadian Underwriters to conduct all due diligence that the
Canadian Underwriters may require to conduct in order to fulfil their
obligations as underwriters and in order to enable the Canadian Underwriters
responsibly to execute any certificate required to be executed by them,
provided, however, that this Section 3 is not intended to operate as a condition
of the Offering.

<PAGE>

                                      - 6 -

SECTION 4 CONDITIONS OF THE OFFERING

         The Canadian Underwriters' obligations under this Agreement are
conditional upon and subject to:

(1)      the Canadian Underwriters receiving at the Time of Closing favourable
         legal opinions dated the Closing Date, addressed to the Canadian
         Underwriters and their counsel from Field Atkinson Perraton LLP,
         Canadian counsel to the Corporation (who may rely, to the extent
         appropriate in the circumstances, on the opinions of local counsel
         acceptable to counsel to the Corporation and counsel to the Canadian
         Underwriters as to the qualification of the Securities for sale to the
         public and as to other matters governed by the laws of the Qualifying
         Provinces other than the provinces in which they are qualified to
         practice and may rely, to the extent appropriate in the circumstances,
         as to matters of fact on certificates of officers, of public officials
         and of Exchange officials or of the auditors or transfer agent of the
         Corporation), to the effect set forth below:

         (a)      the Corporation having been amalgamated and existing under the
                  laws of Canada;

         (b)      the Corporation having the corporate capacity and power to own
                  and lease its properties and assets and to conduct its
                  business as described in the Final Prospectus and to execute
                  and deliver this agreement and to carry out the transactions
                  contemplated hereby;

         (c)      the authorized share capital of the Corporation being as
                  described in the Final Prospectus;

         (d)      all necessary corporate action having been taken by the
                  Corporation to authorize the execution and delivery of this
                  Agreement and the U.S. Agreement and the performance of its
                  obligations hereunder and thereunder and this Agreement and
                  the U.S. Agreement have been duly executed and delivered by
                  the Corporation and each agreement constitutes a legal, valid
                  and binding obligation of, and is enforceable against, the
                  Corporation in accordance with its terms (subject to
                  bankruptcy, insolvency or other laws affecting the rights of
                  creditors generally, general equitable principles including
                  the availability of equitable remedies and the qualification
                  that no opinion need be expressed as to rights to indemnity,
                  contribution and waiver of contribution) and the execution and
                  delivery by the Corporation of this Agreement and the U.S.
                  Agreement, the fulfilment of the terms hereof and thereof by
                  the Corporation, and the issue, sale and delivery on the
                  Closing Date of the Securities and the Underwriters' Warrants
                  to the Canadian Underwriters and the U.S. Agents as
                  contemplated herein and in the U.S. Agreement do not
                  constitute or result in a breach of or a default under, and do
                  not create a state of facts which, after notice or lapse of
                  time or both, will constitute or result in a breach of, and
                  will not conflict with, any of the terms, conditions or
                  provisions of the articles or by-laws of the Corporation;
<PAGE>

                                      - 7 -

         (e)      all necessary corporate action having been taken by the
                  Corporation to authorize the execution and delivery of the
                  Warrant Indenture and the performance of the its obligations
                  thereunder and that the Warrant Indenture has been duly
                  executed and delivered by the Corporation and constitutes a
                  legal, valid and binding obligation of, and is enforceable
                  against, the Corporation in accordance with its terms (subject
                  to bankruptcy, insolvency or other laws affecting the rights
                  of creditors generally, general equitable principles including
                  the availability of equitable remedies and the qualification
                  that no opinion need be expressed as to rights to indemnity,
                  contribution and waiver of contribution);

         (f)      the issuance and sale of the Common Shares comprised in the
                  Securities, the creation, issuance and sale of the Warrants
                  comprised in the Securities, and the creation and issuance of
                  the Underwriters' Warrants have been authorized by all
                  necessary action on the part of the Corporation;

         (g)      all documents required to be filed by the Corporation and all
                  proceedings required to be taken by the Corporation under
                  applicable Canadian Securities Laws having been filed and
                  taken in order to qualify the distribution (or distribution to
                  the public, as the case may be) of the Securities in each of
                  the Qualifying Provinces through investment dealers or brokers
                  registered under the applicable laws thereof who have complied
                  with the relevant provisions thereof;

         (h)      all legal requirements will have been fulfilled by the
                  Corporation under applicable Canadian Securities Laws so that
                  the issuance of the Common Shares on exercise of Warrants and
                  the Underwriters' Warrants (the "UNDERLYING COMMON SHARES")
                  will be exempt from the prospectus requirements of the
                  applicable Canadian Securities Laws, and such Underlying
                  Common Shares will not be subject to any statutory hold
                  period, and no other documents will be required to be filed,
                  proceedings taken, or approvals, permits, consents or
                  authorizations obtained under the applicable Canadian
                  Securities Laws to permit the trading in the Qualifying
                  Provinces of the Underlying Common Shares, through registrants
                  registered under applicable Canadian Securities Laws or in
                  circumstances in which there is an exemption from the
                  registration requirements of such applicable laws, subject to
                  usual exceptions;

         (i)      the Securities and the Underlying Common Shares having been
                  conditionally approved for listing on the TSX subject only to
                  compliance with the documentary filing requirements of such
                  exchange;

         (j)      the attributes and characteristics of the Securities being
                  accurately summarized in all material respects under the
                  heading "Details of the Offering" in the Final Prospectus;

         (k)      the Common Shares and the Underlying Common Shares, when and
                  if issued by the Corporation, having been validly issued by
                  the Corporation and being fully-paid and non-assessable shares
                  in the capital of the Corporation;

<PAGE>

                                      - 8 -

         (l)      the Securities being, at the Time of Closing, eligible for
                  investment pursuant to the statutes set forth under the
                  heading "Eligibility for Investment" in the Final Prospectus;

         (m)      as to certain Canadian federal income tax matters, as
                  described in the Final Prospectus under the heading
                  "Eligibility for Investment"; and

         (n)      during the course of the Corporation's preparation of the
                  Final Prospectus and its participation in conferences with
                  officers and other representatives of the Corporation, the
                  Corporation's independent public accountants, the U.S. Agents
                  and the Canadian Underwriters and their counsel, during which
                  the contents of the Final Prospectus were discussed, and while
                  it has not independently verified and is not passing upon the
                  accuracy, completeness or fairness of the statements made in
                  the Final Prospectus except as explicitly set forth in
                  paragraphs (l) and (m) hereof, no facts have come to its
                  attention that lead it to believe that the Final Prospectus
                  (other than the financial statements, financial and related
                  statistical data and supporting schedules as to which it makes
                  no statement), contained any untrue statement of a material
                  fact or omitted or omits to state any material fact required
                  to be stated therein or necessary to make the statements
                  therein not misleading; or that the Final Prospectus, as of
                  its date or as of the Closing Date, contains any untrue
                  statement of a material fact or omits to state any material
                  fact necessary in order to make the statements therein, in the
                  light of the circumstances under which they were made, not
                  misleading.

         and Stoel Rives LLP, the Corporation's U.S. counsel as to those matters
         set forth in Schedule B to the U.S. Agreement, in each case addressed
         to the Canadian Underwriters and their counsel, dated the Closing Date,
         and in form and substance satisfactory to the Canadian Underwriters and
         their counsel;

(2)      the Canadian Underwriters having received the comfort letter referred
         to in Section 9(1)(a);

(3)      the Canadian Underwriters having received a comfort letter, dated the
         Closing Date, in form and substance satisfactory to the Canadian
         Underwriters, acting reasonably, bringing forward to a date not more
         than two business days prior to the Closing Date the information
         contained in the comfort letter referred to in Section 9(1)(a);

(4)      the Canadian Underwriters receiving at the Time of Closing a legal
         opinion (or opinions) dated the Closing Date, in form and substance
         satisfactory to the Canadian Underwriters and their counsel, addressed
         to the Canadian Underwriters and their counsel, from local counsel to
         the Corporation, as to mining title matters with respect to each of the
         Material Resource Properties (as hereinafter defined);

(5)      the Canadian Underwriters receiving at the Time of Closing a legal
         opinion (or opinions) dated the Closing Date, in form and substance
         satisfactory to the Canadian Underwriters and their counsel, addressed
         to the Canadian Underwriters and their counsel, from local counsel to
         the Corporation, stating that each of Caystar Holdings, Bogoso
         Holdings, Bogoso Gold Limited and Wasford Holdings has been duly
         created

<PAGE>

                                      - 9 -

         and is validly existing under the laws of the jurisdiction in which it
         was incorporated, amalgamated or continued, and that the Corporation or
         a Material Subsidiary owns all of the issued and outstanding share
         capital of such corporations, except as set out in Schedule A, in each
         case addressed to the Canadian Underwriters and their counsel, dated
         the Closing Date, and in form and substance satisfactory to the
         Canadian Underwriters and their counsel;

(6)      at the Time of Closing, there having been no material adverse change in
         the business, affairs, operations, assets, liabilities or financial
         condition of the Corporation on a consolidated basis since the date
         hereof;

(7)      at the Time of Closing, CIBC Mellon Trust Company, at is principal
         office in Vancouver, having been duly appointed as the transfer agent
         and registrar for the Common Shares and warrant trustee for the
         Warrants, and the Warrant Indenture having been executed by the
         Corporation and CIBC Mellon Trust Company;

(8)      the U.S. Agreement having been executed by the Corporation and the U.S.
         Agents, and none of the U.S. Agents shall have relied upon any rights
         of termination in the U.S. Agreement to terminate the offering of the
         Securities in the United States, and all conditions to the U.S. Agents'
         obligations thereunder having been satisfied or waived by the U.S.
         Agents;

(9)      the U.S. Registration Statement being declared effective by the SEC;

(10)     the Corporation delivering a certificate signed on behalf of the
         Corporation by the Chief Executive Officer of the Corporation and the
         Chief Financial Officer of the Corporation, addressed to the Canadian
         Underwriters and dated the Closing Date, in a form satisfactory to the
         Canadian Underwriters and their counsel, certifying for and on behalf
         of the Corporation and not in their personal capacities that, to the
         actual knowledge of the persons signing such certificate, after having
         made due inquiry:

         (a)      the Corporation has complied in all respects with all
                  covenants and satisfied all terms and conditions of this
                  Agreement on its part to be complied with and satisfied at or
                  prior to the Time of Closing on the Closing Date;

         (b)      no order, ruling or determination having the effect of ceasing
                  or suspending trading in any securities of the Corporation or
                  prohibiting the sale of the Securities or any of the
                  Corporation's issued securities has been issued and no
                  proceeding for such purpose is pending or, to the knowledge of
                  such officers, threatened;

         (c)      the Corporation is a "reporting issuer" or its equivalent
                  under the securities laws of each of the Qualifying Provinces
                  and eligible to use the POP System and no material change
                  relating to the Corporation on a consolidated basis has
                  occurred since the date hereof with respect to which the
                  requisite material change report has not been filed and no
                  such disclosure has been made on a confidential basis that
                  remains subject to confidentiality; and

<PAGE>

                                     - 10 -

         (d)      all of the representations and warranties made by the
                  Corporation in this Agreement are true and correct as of the
                  Time of Closing with the same force and effect as if made at
                  and as of the Time of Closing after giving effect to the
                  transactions contemplated hereby;

(11)     the National Association of Securities Dealers, Inc. ("NASD") has
         confirmed that it has not raised any objection with respect to the
         fairness and reasonableness of the underwriting terms and arrangements
         related to the Offering; and

(12)     the Canadian Underwriters receiving at the Time of Closing such further
         certificates, opinions of counsel and other documentation from the
         Corporation as are consistent with the transactions contemplated
         herein.

SECTION 5 COVENANTS OF THE CANADIAN UNDERWRITERS

(1)      The Canadian Underwriters:

         (a)      shall offer or arrange the offer of the Securities for sale to
                  the public, directly and through other investment dealers and
                  brokers (the Canadian Underwriters, together with such other
                  investment dealers and brokers, are referred to herein as the
                  "SELLING FIRMS"), only as permitted by and in compliance with
                  all relevant laws and regulatory requirements of applicable
                  Canadian Securities Laws, upon the terms and conditions set
                  forth in the Final Prospectus and in this Agreement and will
                  require each Selling Firm to so agree;

         (b)      shall not solicit offers to purchase or sell the Securities so
                  as to require registration thereof or the filing of a
                  prospectus or similar document with respect thereto under the
                  laws of any jurisdiction other than the Qualifying Provinces,
                  and will require each Selling Firm to agree with the Canadian
                  Underwriters not to so solicit or sell. In this connection,
                  the Canadian Underwriters agree that they will not offer or
                  sell any of the Securities constituting a part of their
                  allotment within the United States except, if applicable,
                  through the U.S. Agents on the terms and conditions set forth
                  in the U.S. Agreement and the Inter-Dealer Agreement and in
                  compliance with U.S. Securities Law. For the purposes of this
                  Section 5(1)(b), the Canadian Underwriters shall be entitled
                  to assume that the Securities are qualified for distribution
                  in any Qualifying Province where a receipt or similar document
                  for the Final Prospectus shall have been obtained from the
                  applicable Canadian securities regulatory authority following
                  the filing of the Final Prospectus;

         (c)      agree that if they offer to sell or sell any Securities in
                  jurisdictions other than the Qualifying Provinces (which may
                  include Europe), such offers and sales shall be effected in
                  accordance and compliance with the applicable laws of such
                  jurisdictions and shall be effected in such manner so as not
                  to: (i) require registration of the Securities, or the filing
                  of a prospectus or other document with respect thereto; or
                  (ii) subject the Corporation to any continuous disclosure or
                  similar reporting requirements under the laws of any
                  jurisdiction outside the provinces of Canada or the United
                  States;

<PAGE>

                                     - 11 -

         (d)      shall use all reasonable efforts to complete and to cause the
                  other Selling Firms to complete the distribution of the
                  Securities as soon as practicable;

         (e)      shall notify the Corporation when, in their opinion, the
                  Canadian Underwriters and the other Selling Firms have ceased
                  distribution of the Securities and shall provide a breakdown
                  of the number of Securities distributed in each of the
                  Qualifying Provinces; and

         (f)      shall comply with any applicable laws with respect to the use
                  of "green sheets" and other marketing materials during the
                  "waiting period" (as defined under applicable Canadian
                  Securities Laws).

(2)      Notwithstanding the foregoing, no Canadian Underwriter shall be liable
         to the Corporation with respect to any other Canadian Underwriter under
         this Section 5.

SECTION 6 REPRESENTATIONS AND WARRANTIES OF THE CORPORATION

(1)      The Corporation hereby represents and warrants to the Canadian
         Underwriters, intending that the same may be relied upon by the
         Canadian Underwriters, that:

         (a)      each of the Corporation and the Material Subsidiaries has been
                  duly incorporated, continued or amalgamated and organized and
                  is validly existing under the laws of its jurisdiction of
                  incorporation, continuance or amalgamation, has all requisite
                  corporate power and authority to carry on its business as now
                  conducted and as contemplated by the Final Prospectus, and to
                  own, lease and operate its properties and assets, and the
                  Corporation has all requisite power and authority to carry out
                  its obligations under this Agreement;

         (b)      the only major operating subsidiaries of the Corporation are
                  listed in Schedule A;

         (c)      the Corporation or one of its Material Subsidiaries owns the
                  issued and outstanding shares of each of the Material
                  Subsidiaries as set out in Schedule A, in each case free and
                  clear of any pledge, lien, security interest, charge, claim or
                  encumbrance;

         (d)      upon completion of the Wassa Transactions (as defined below),
                  Wasford Holdings will own 90% of the issued and outstanding
                  shares of Wexford Goldfields Limited, free and clear of any
                  pledge, lien, security interest, charge, claim or encumbrance,
                  other than as is held for the benefit of Bayerische Hypo-und
                  Vereinsbank AG, Dresdner Bank AG, Fortis Bank (Nederland)
                  N.V., and Standard Bank London Limited (the "SECURED BANKS"),
                  which banks are providing funding in respect of the
                  acquisition;

         (e)      the Corporation is a reporting issuer or the equivalent in
                  each of the provinces of Canada and the Corporation is not in
                  default of any of the requirements of the securities laws of
                  such jurisdictions;

         (f)      the Corporation was and is eligible to use the POP System and
                  at the respective times of filing, each of the Preliminary
                  Prospectus and the Final Prospectus

<PAGE>

                                     - 12 -

                  together with any Prospectus Amendment and any Supplementary
                  Material have and will comply with the requirements of the
                  applicable Canadian Securities Laws pursuant to which they
                  have been filed, have and will provide full, true and plain
                  disclosure of all material facts (as defined in the Securities
                  Act (Ontario)) relating to the Corporation on a consolidated
                  basis and to the Securities and will not contain any
                  misrepresentation (as defined in the Securities Act
                  (Ontario)), provided that the foregoing shall not apply with
                  respect to statements contained in such documents relating
                  solely to the Canadian Underwriters;

         (g)      no order, ruling or determination having the effect of
                  ceasing, suspending or restricting trading in any securities
                  of the Corporation or the sale of the Common Shares or
                  Warrants comprised in the Securities has been issued and no
                  proceedings, investigations or inquiries for such purpose are
                  pending or, to the Corporation's knowledge, threatened;

         (h)      the Corporation's Common Shares are posted and listed for
                  trading on the Exchanges and the Corporation is not in default
                  in any material respect of any of the listing requirements of
                  the Exchanges;

         (i)      other than options under the Corporation's Stock Option Plans,
                  the Corporation is not a party to and has not entered into any
                  agreement, warrant, option, right or privilege reasonably
                  capable of becoming an agreement, for the purchase,
                  subscription or issuance of any Common Shares or securities
                  convertible into or exchangeable for Common Shares other than
                  as set out in Schedule B;

         (j)      as at the date hereof, the authorized share capital of the
                  Corporation consists of an unlimited number of Common Shares
                  and an unlimited number of First Preferred shares, of which
                  67,000,703 Common Shares and no First Preferred shares are
                  issued and outstanding;

         (k)      the Corporation and each of the Material Subsidiaries have
                  conducted and are conducting their respective businesses in
                  compliance with all applicable laws, rules, regulations,
                  tariffs, orders and directives, including without limitation,
                  all laws, regulations and statutes relating to mining and to
                  mining claims, concessions or leases, and environmental,
                  health and safety laws, rules, regulations, or policies or
                  other lawful requirements of any governmental or regulatory
                  bodies having jurisdiction over the Corporation and the
                  Material Subsidiaries in each jurisdiction in which the
                  Corporation or the Material Subsidiaries carries on their
                  respective businesses, other than those in respect of which
                  the failure to comply would not individually or in the
                  aggregate be material and each of the Corporation and the
                  Material Subsidiaries holds all certificates, authorities,
                  permits, licenses, registrations and qualifications
                  (collectively, the "AUTHORITIES") in all jurisdictions in
                  which each carries on its business and which are material for
                  and necessary or desirable to carry on their respective
                  businesses as now conducted and to the best of the
                  Corporation's knowledge, information and belief all the
                  Authorities are valid and existing and in good standing and
                  none of the Authorities contain any burdensome term,

<PAGE>

                                     - 13 -

                  provision, condition or limitation which has or is likely to
                  have any material adverse effect on the business of the
                  Corporation and the Material Subsidiaries (taken as a whole)
                  as now conducted or as proposed to be conducted, and neither
                  the Corporation nor any of the Material Subsidiaries has
                  received any notice of proceedings relating to the revocation
                  or modification of any of the Authorities which, singly or in
                  the aggregate, if the subject of an unfavourable decision,
                  ruling or finding, would materially adversely affect the
                  business, operations, financial condition, or income of the
                  Corporation or the Material Subsidiaries (taken as a whole) or
                  any notice of the revocation or cancellation of, or any
                  intention to revoke or cancel, any of the mining claims,
                  concessions or leases comprising:

                  (i)      the Bogoso property;

                  (ii)     the Prestea property;

                  (iii)    the Paul Isnard property;

                  (iv)     the Yaou and Dorlin properties; and

                  (v)      the St. Elie property;

                  (each as described in the Form 10-K of the Corporation dated
                  March 25, 2002, collectively referred to herein as the
                  "RESOURCE PROPERTIES", and the Bogoso property and the Prestea
                  property collectively being referred to herein as the "
                  MATERIAL RESOURCE PROPERTIES");

         (l)      neither the Corporation nor any of the Material Subsidiaries
                  has received any notice of the revocation or cancellation of,
                  or any intention to revoke or cancel, any of the material
                  mining claims, concessions or leases comprising the Wassa
                  property;

         (m)      the Corporation and each of its Material Subsidiaries have
                  good and marketable title to all assets owned by them free and
                  clear of all liens, charges and encumbrances, other than as
                  will be held for the benefit of the Secured Banks, which banks
                  are providing funding in respect of the acquisition of Wexford
                  Goldfields Limited, upon completion of such acquisition and
                  other than such liens, charges and encumbrances that are not
                  individually or in the aggregate material to the Corporation
                  or the Material Subsidiaries;

         (n)      all interests in the Resource Properties are owned, leased or
                  held by the Corporation or its Material Subsidiaries as owner
                  or lessee thereof, are so owned with good and marketable title
                  or are so leased with good and valid title, are in good
                  standing, are valid and enforceable, are free and clear of any
                  liens, charges or encumbrances and no royalty is payable in
                  respect of any of them, except as set out in the Final
                  Prospectus or the Continuous Disclosure Materials or as are
                  not individually or in the aggregate material to the
                  Corporation or Material Subsidiaries, or other than as would
                  not have a material effect on the value of

<PAGE>

                                     - 14 -

                  such interests; no other material property rights are
                  necessary for the conduct or intended conduct of the
                  Corporation's or the Material Subsidiaries' business and there
                  are no restrictions on the ability of the Corporation or the
                  Material Subsidiaries to use, transfer or otherwise exploit
                  any such property rights, except as set out in the Final
                  Prospectus or the Continuous Disclosure Materials;

         (o)      the Corporation is in the process of acquiring, through its
                  wholly-owned subsidiary Wasford Holdings, 90% of the equity of
                  Wexford Goldfields Limited, which is in the process of
                  acquiring all interests in the Wassa gold property in Ghana
                  (the "WASSA TRANSACTIONS"). The Wassa property and the current
                  terms of the Wassa Transaction are as described in the
                  Preliminary Prospectus and the Final Prospectus. It is
                  expected that the Wassa Transactions will close by September
                  1, 2002. The Corporation knows of no fact, event, occurrence,
                  announcement or any other thing that would, or might
                  reasonably be expected to, materially increase the costs of
                  the closing of the Wassa Transactions, or materially delay the
                  closing of the Wassa Transactions;

         (p)      (A) the Corporation and its Material Subsidiaries are in
                  compliance with all material terms and provisions of all
                  contracts, agreements, indentures, leases, instruments and
                  licences material to the conduct of its business and (B) all
                  such contracts, agreements, indentures, leases, policies,
                  instruments and licences are valid and binding in accordance
                  with their terms and in full force and effect;

         (q)      to the best of the Corporation's knowledge, information and
                  belief none of the real property (and the buildings
                  constructed thereon) in which the Corporation or any of the
                  Material Subsidiaries has a direct or indirect interest,
                  whether leasehold or fee simple or otherwise (the "REAL
                  PROPERTY"), or upon or within which it has operations, is
                  subject to any judicial or administrative proceeding alleging
                  the violation of any federal, provincial, state or municipal
                  environmental, health or safety statute or regulation,
                  domestic or foreign, or is subject to any investigation
                  concerning whether any remedial action is needed to respond to
                  a release of any Hazardous Material (as defined below) into
                  the environment. Neither the Corporation nor any Material
                  Subsidiary nor, to the Corporation's knowledge, any occupier
                  of the Real Property, has filed any notice under any federal,
                  provincial, state or municipal law, domestic or foreign,
                  indicating past or present treatment, storage or disposal of a
                  Hazardous Material. Except in compliance with applicable
                  environmental laws, none of the Real Property has at any time
                  been used by the Corporation or a Material Subsidiary or, to
                  the best of the Corporation's knowledge, information and
                  belief by any other occupier, as a waste storage or waste
                  disposal site. The Corporation, on a consolidated basis, has
                  no contingent liability of which it has knowledge in
                  connection with any release of any Hazardous Material on or
                  into the environment from any of the Real Property or
                  operations thereon. Neither the Corporation nor any Material
                  Subsidiary nor, to the best of the Corporation's knowledge,
                  any occupier of the Real Property, generates, transports,
                  treats, processes, stores or disposes of any waste on any of
                  the Real Property in contravention of applicable federal,
                  provincial, state or municipal laws or

<PAGE>

                                     - 15 -

                  regulations enacted for the protection of the natural
                  environment (including, without limitation, ambient air,
                  surface water, ground water, land surface or subsurface
                  strata) or human health or wildlife. To the Corporation's
                  knowledge, no underground storage tanks or surface
                  impoundments containing a petroleum product or Hazardous
                  Material are located on any of the Real Property in
                  contravention of applicable federal, provincial, state or
                  municipal laws or regulations, domestic or foreign, enacted
                  for the protection of the natural environment (including,
                  without limitation, ambient air, surface water, ground water,
                  land surface or subsurface strata), human health or wildlife.
                  For the purposes of this Section 6(1)(q), "HAZARDOUS MATERIAL"
                  means any contaminant, chemical, pollutant, subject waste,
                  hazardous waste, deleterious substance, industrial waste,
                  toxic matter or any other substance that when released into
                  the natural environment (including, without limitation,
                  ambient air, surface water, ground water, land surface or
                  subsurface strata) is likely to cause, at some immediate or
                  future time, harm or degradation to the natural environment
                  (including, without limitation, ambient air, surface water,
                  ground water, land surface or subsurface strata) or risk to
                  human health and, without restricting the generality of the
                  foregoing, includes any contaminant, chemical, pollutant,
                  subject waste, deleterious substance, industrial waste, toxic
                  matter or hazardous waste as defined by applicable federal,
                  provincial, state or municipal laws or regulations enacted for
                  the protection of the natural environment (including, without
                  limitation, ambient air, surface water, ground water, land
                  surface or subsurface strata), or human health or wildlife;

         (r)      except as disclosed in the Final Prospectus or the Continuous
                  Disclosure Materials, the Corporation and each of its Material
                  Subsidiaries maintain appropriate insurance against loss of,
                  or damage to, their assets for all insurable risks on a
                  repair, reinstatement or replacement cost basis, and all of
                  the policies in respect of such insurance coverage are in good
                  standing in all respects and not in default;

         (s)      the consolidated audited financial statements of the
                  Corporation for its fiscal years ended December 31, 1999,
                  December 31, 2000 and December 31, 2001 and the unaudited
                  interim financial statements of the Corporation for the
                  quarter ended March 31, 2002 (collectively the "CORPORATION'S
                  FINANCIAL STATEMENTS"), copies of which are incorporated by
                  reference in the Preliminary Prospectus and the Final
                  Prospectus, including any reconciliation of financial
                  statements prepared in accordance with generally accepted
                  accounting principles in Canada with generally accepted
                  accounting principles in the United States, are true and
                  correct in every material respect and present fairly and
                  accurately the financial position and results of the
                  operations of the Corporation on a consolidated basis for the
                  periods then ended and the Corporation's Financial Statements
                  have been prepared in accordance with generally accepted
                  accounting principles in Canada applied on a consistent basis,
                  and comply as to form in all material respects with the
                  applicable accounting requirements of the U.S. Securities Act
                  and the U.S. Exchange Act, as applicable, and the related
                  published rules and regulations thereunder;

<PAGE>

                                     - 16 -

         (t)      the execution and delivery of and the performance by the
                  Corporation of this Agreement and the U.S. Agreement and the
                  consummation of the transactions contemplated hereby and
                  thereby, including the issuance and sale of the Common Shares
                  comprised in the Securities, the creation, issuance and sale
                  of the Warrants comprised in the Securities, and the creation
                  and issuance of the Underwriters' Warrants have been
                  authorized by all necessary action on the part of the
                  Corporation;

         (u)      this Agreement and the U.S. Agreement have been duly executed
                  and delivered by the Corporation and each such agreement is a
                  legal, valid and binding obligation of, and is enforceable
                  against, the Corporation in accordance with its terms (subject
                  to bankruptcy, insolvency or other laws affecting the rights
                  of creditors generally, the availability of equitable remedies
                  and the qualification that rights to indemnity and waiver of
                  contribution may be contrary to public policy);

         (v)      the Final Prospectus complies fully, in all respects, with the
                  requirements of Canadian Securities Laws; for greater
                  certainty, the documents incorporated by reference therein, at
                  the time they were filed, complied in all respects of Canadian
                  Securities Laws;

         (w)      except as included or incorporated by reference therein, there
                  are no financial statements or other documents required to be
                  included in the Preliminary Prospectus or Final Prospectus as
                  a result of a "significant acquisition" or "significant
                  disposition", each as described in NI 44-101;

         (x)      except as disclosed in the Final Prospectus or the Continuous
                  Disclosure Materials, since March 31, 2002: (A) there has been
                  no material change in the business, affairs, operations,
                  assets, liabilities or financial condition of the Corporation
                  on a consolidated basis; (B) no material change reports or
                  other documents have been filed on a confidential basis with
                  the Qualifying Authorities; (C) there has been no transaction
                  entered into by the Corporation and not disclosed in the
                  Continuous Disclosure Materials which is material to the
                  Corporation; (D) the Corporation and its Material
                  Subsidiaries, on a consolidated basis, have not incurred any
                  material liability or obligation, indirect, direct or
                  contingent, not in the ordinary course of business, nor
                  entered into any material transaction or agreement not in the
                  ordinary course of business; and (E) there has been no
                  dividend or distribution of any kind declared, paid or made by
                  the Corporation or, except for dividends paid to the
                  Corporation or its Material Subsidiaries, any of its Material
                  Subsidiaries, on any class of capital stock or repurchase or
                  redemption by the Corporation or any of its Material
                  Subsidiaries of any class of capital stock;

         (y)      the directors and officers of the Corporation and their
                  compensation arrangements with the Corporation, whether as
                  directors, officers or employees of the Corporation, are as
                  disclosed in the Preliminary Prospectus and Final Prospectus
                  or in the Continuous Disclosure Materials if required to be so
                  disclosed;

<PAGE>

                                     - 17 -

         (z)      all of the material contracts and agreements of the
                  Corporation and of its Material Subsidiaries not made in the
                  ordinary course of business (collectively the "MATERIAL
                  CONTRACTS") have been disclosed in the Continuous Disclosure
                  Materials;

         (aa)     all tax returns, reports, elections, remittances and payments
                  of the Corporation and of its Material Subsidiaries required
                  by law to have been filed or made in any applicable
                  jurisdiction, have been filed (or are in the process of being
                  prepared for filing, which delayed filing will not have an
                  adverse effect on the Corporation or any of its Material
                  Subsidiaries) or made (as the case may be), other than for
                  taxes being contested in good faith, or with respect to which
                  the failure to file or make would not have a material adverse
                  effect, either individually or in the aggregate, to the
                  Corporation and the Material Subsidiaries and, to the
                  knowledge of the Corporation, are substantially true, complete
                  and correct and all taxes of the Corporation and of its
                  Material Subsidiaries, in respect of which payment or accrual
                  is required under applicable law, other than taxes being
                  contested in good faith, have been so paid or accrued in the
                  Corporation's Financial Statements;

         (bb)     the Common Shares and Warrants comprised in the Securities are
                  not "foreign property" for purposes of the Income Tax Act
                  (Canada);

         (cc)     there is no material action, suit, proceeding, investigation
                  or judgment pending, or to the Corporation's knowledge
                  threatened or outstanding against or affecting the Corporation
                  or any Material Subsidiary (or their respective officers and
                  directors) at law or in equity or before or by any federal,
                  provincial, state, municipal or other governmental department,
                  commission, board or agency, domestic or foreign, which in any
                  way materially adversely affects or may materially adversely
                  affect the business, operations or condition of the
                  Corporation or any Material Subsidiary (financial or
                  otherwise) or its property or assets or which questions or may
                  question the validity of the creation, issuance or sale, of
                  the Securities or any action taken or to be taken by the
                  Corporation or any Material Subsidiary pursuant to or in
                  connection with this Agreement or any other material contract
                  to which the Corporation or any Material Subsidiary is a
                  party, as the case may be;

         (dd)     except as have been made or obtained prior to Closing, under
                  the laws of the Qualifying Provinces and the United States, no
                  consent, approval, authorization, order, filing, registration
                  or qualification of or with any court, governmental agency or
                  body or regulatory authority is required for the creation,
                  issue, sale and delivery (as the case may be) of the
                  Securities or the Underwriters' Warrants or the consummation
                  by the Corporation of the transactions contemplated in this
                  Agreement and the U.S. Agreement;

         (ee)     all necessary corporate action has been taken or will have
                  been taken prior to the Time of Closing by the Corporation so
                  as to validly issue and sell the Common Shares comprised in
                  the Securities, to validly create and issue the Underwriters'
                  Warrants to the Canadian Underwriters and to validly create,
                  issue and sell the

<PAGE>

                                     - 18 -

                  Warrants comprised in the Securities to the Canadian
                  Underwriters and upon receipt by the Corporation of the
                  purchase price as consideration for the issue of the
                  Securities, the Common Shares comprised in the Securities will
                  be validly issued and outstanding as fully paid and
                  non-assessable shares of the Corporation;

         (ff)     the attributes of the Securities conform in all material
                  respects with the description thereof contained in the Final
                  Prospectus;

         (gg)     there are no material business relationships or related party
                  transactions within the meaning of Ontario Securities
                  Commission Rule 61-501 involving the Corporation or any of its
                  Material Subsidiaries or any other person except as described
                  in the Final Prospectus or the Continuous Disclosure
                  Materials;

         (hh)     (i) neither the Corporation nor any of its Material
                  Subsidiaries nor any employee or agent of the Corporation or
                  any Material Subsidiary, has made any unlawful contribution or
                  other payment to any official of, or candidate for, any
                  federal, state, provincial or foreign office, or failed to
                  disclose fully any contribution, in violation of any law, or
                  (ii) made any payment to any foreign, United States or state
                  governmental officer or official, or other person charged with
                  similar public or quasi-public duties, other than payments
                  required or permitted by the laws of the United States;

         (ii)     the Corporation and each of its Material Subsidiaries
                  maintains a system of internal accounting controls sufficient
                  to provide reasonable assurance that (i) transactions are
                  executed in accordance with management's general or specific
                  authorizations; (ii) transactions are recorded as necessary to
                  permit preparation of financial statements in conformity with
                  generally accepted accounting principles in Canada and to
                  maintain asset accountability; (iii) access to assets is
                  permitted only in accordance with management's general or
                  specific authorization; and (iv) the recorded accountability
                  for assets is compared with the existing assets at reasonable
                  intervals and appropriate action is taken with respect to any
                  differences;

         (jj)     neither the Corporation nor any of the Corporation's officers,
                  directors or affiliates has taken, and at the Closing Date
                  will have taken, directly or indirectly, any action which has
                  constituted, or might reasonably be expected to constitute,
                  the stabilization or manipulation of the price of sale or
                  resale of the Securities;

         (kk)     the Corporation has timely and properly filed (i) with the SEC
                  all reports and other documents required to have been filed by
                  it with the SEC pursuant to the U.S. Securities Act and the
                  rules and regulations, and (b) all reports or other documents
                  required to have been filed by it with the securities
                  commission or similar regulatory body of each province in
                  Canada, the Toronto Stock Exchange or any other applicable
                  Canadian governmental authorities. True and complete copies of
                  all such reports and other documents have been delivered to
                  the Canadian Underwriters;

<PAGE>

                                     - 19 -

         (ll)     neither the Corporation nor any Material Subsidiary (x) was a
                  personal holding company within the meaning of Section 542 of
                  the Internal Revenue Code of 1986, as amended (the "CODE") (a
                  "PHC"), a foreign personal holding company with the meaning of
                  Section 542 of the Code (an "FPHC"), or a controlled foreign
                  corporation with the meaning of Section 957 of the Code (a
                  "CFC") for its taxable year ended December 31, 1995 or for any
                  previous taxable year, or (y) expects that it will constitute
                  a PHC, a FPHC or a CFC for its current taxable year ending
                  December 31, 2001;

         (mm)     the Corporation (x) was not a passive foreign investment
                  company (a "PFIC") within the meaning of section 1296 of the
                  Code for its taxable year ended December 31, 2001 or for any
                  previous taxable year and (y) expects that it will not
                  constitute a PFIC for its current taxable year ending December
                  31, 2002;

         (nn)     CIBC Mellon Trust Company, at its principal office in
                  Vancouver, has been duly appointed as the transfer agent and
                  registrar for the Common Shares and;

         (oo)     the form of the certificate representing the Warrants have
                  been duly approved by the Corporation and comply with the
                  provisions of the Canada Business Corporations Act and of the
                  TSX; and

         (pp)     the Preliminary Prospectus and Final Prospectus, including any
                  and all amendments thereto, contain and will contain no untrue
                  statement of a material fact and do not and will not omit to
                  state a material fact that is required to be stated or that is
                  necessary to make the statements therein not misleading in
                  light of the circumstances in which they are made.

(2)      The representations and warranties made by the Corporation to the U.S.
         Agents in the U.S. Agreement are hereby incorporated by reference, and
         shall have the same effect as though they were made to the Canadian
         Underwriters under this Agreement.

SECTION 7 REPRESENTATIONS AND WARRANTIES OF THE CANADIAN UNDERWRITERS

(1)      Each Canadian Underwriters hereby severally, and not jointly,
         represents and warrants that:

         (a)      it is, and will remain so, until the completion of the
                  Offering, appropriately registered under applicable Canadian
                  Securities Laws so as to permit it to lawfully fulfil its
                  obligations hereunder and it is, and will remain so, until the
                  completion of the Offering, a member in good standing of the
                  TSX; and

         (b)      it has good and sufficient right and authority to enter into
                  this Agreement and complete its transactions contemplated
                  under this Agreement on the terms and conditions set forth
                  herein.

SECTION 8 COVENANTS OF THE CORPORATION

(1)      The Corporation covenants with the Canadian Underwriters that:

<PAGE>

                                     - 20 -

         (a)      the Corporation will comply with Section 57 of the Securities
                  Act (Ontario) and with the comparable provisions of the other
                  relevant Canadian Securities Laws, and, after the date hereof
                  and prior to the completion of the distribution of the
                  Securities, the Corporation will promptly advise the Canadian
                  Underwriters in writing of the full particulars of any
                  material change, (as defined in the Securities Act (Ontario)),
                  in the business, affairs, operations, assets, liabilities or
                  financial condition of the Corporation, on a consolidated
                  basis, or of any change in any material fact (as defined in
                  the Securities Act (Ontario)) contained or referred to in the
                  Preliminary Prospectus, the Final Prospectus, the U.S.
                  Prospectus, or any Prospectus Amendment or Supplementary
                  Material which is, or may be, of such a nature as to render
                  any statement contained in the Preliminary Prospectus or the
                  Final Prospectus untrue, false or misleading, result in a
                  misrepresentation (as defined in the Securities Act
                  (Ontario)), or result in any of such documents not complying
                  with the laws of any Qualifying Province or the United States.
                  The Corporation will promptly prepare and file with the
                  securities authorities in the Qualifying Provinces or the
                  United States any amendment or supplement to the Preliminary
                  Prospectus or the Final Prospectus or the U.S. Prospectus,
                  which in the opinion of the Canadian Underwriters and the
                  Corporation, each acting reasonably, may be necessary or
                  advisable to correct such untrue or misleading statement or
                  omission. The Corporation shall in good faith discuss with the
                  Canadian Underwriters any change in circumstances (actual,
                  anticipated, contemplated or threatened) which is of such a
                  nature that there may be a reasonable doubt as to whether
                  written notice need be given to the Canadian Underwriters
                  under the provisions of this Section 8(1)(a);

         (b)      the Corporation will deliver without charge to the Canadian
                  Underwriters, as soon as practicable, and in any event no
                  later than July 18, 2002 in the case of the Final Prospectus
                  and the U.S. Prospectus, and thereafter from time to time
                  during the distribution of the Securities, in such cities as
                  the Canadian Underwriters shall notify the Corporation, as
                  many commercial copies of each of the Preliminary Prospectus,
                  the Final Prospectus and the U.S. Prospectus, respectively,
                  (and in the event of any Prospectus Amendment, such Prospectus
                  Amendment) as the Canadian Underwriters may reasonably request
                  for the purposes contemplated by Canadian Securities Laws and
                  U.S. Securities Laws and such delivery shall constitute
                  consent by the Corporation to the use by the Canadian
                  Underwriters, the U.S. Agents and the Selling Firms of such
                  documents in connection with the Offering in all Qualifying
                  Provinces and the United States, subject to the provisions of
                  applicable Canadian Securities Laws and U.S. Securities Laws.
                  The Corporation shall similarly cause to be delivered
                  commercial copies of the Supplementary Material in such
                  quantities as the Canadian Underwriters may reasonably
                  request;

         (c)      the Corporation shall use its best efforts to arrange that the
                  Common Shares comprised in the Securities are listed and
                  posted for trading on the TSX and the AMEX on the Closing
                  Date, and that the Warrants comprised in the Securities are
                  listed and posted for trading on the TSX on the Closing Date,
                  subject only to the documentary filing requirements of each
                  such exchange;

<PAGE>

                                     - 21 -

         (d)      it will not: (i) offer, pledge, sell, contract to sell any
                  option or contract to purchase, purchase any option or
                  contract to sell, grant any option, right or warrant to
                  purchase, or otherwise lend, transfer or dispose of, directly
                  or indirectly, any Common Shares or securities convertible
                  into or exercisable or exchangeable for Common Shares; or (ii)
                  enter into any swap or other arrangement that transfers, in
                  whole or in part, any of the economic consequences of
                  ownership of Common Shares or such other securities, whether
                  any such transaction described in clause (i) or (ii) above is
                  to be settled by delivery of Common Shares or such other
                  securities, in cash or otherwise (other than the Securities
                  and other than in connection with the grant or exercise of
                  options, issuances under the Corporation's existing Stock
                  Option Plans or employee share purchase plan or any other
                  existing rights of conversion or securities issued as
                  consideration for an acquisition of assets or shares), for a
                  period ending 90 days after the closing of the Offering
                  without the prior written consent of the Lead Manager, such
                  consent not to be unreasonably withheld;

         (e)      it will apply the net proceeds from the sale of the Securities
                  as set forth under "Use of Proceeds" in the Final Prospectus;
                  and

         (f)      it will use its reasonable best efforts to make all necessary
                  arrangements with the Alternative Investment Market of the
                  London Stock Exchange in order that the Common Shares are
                  listed on that exchange within 6 months of the Closing Date.

SECTION 9 ADDITIONAL DOCUMENTS UPON FILING OF FINAL PROSPECTUS

(1)      The Canadian Underwriters' obligations under this Agreement are
         conditional upon the receipt by the Canadian Underwriters, concurrently
         with the filing of the Final Prospectus, of:

         (a)      a "long-form" comfort letter dated the date of Final
                  Prospectus from the auditors of the Corporation, addressed to
                  the Canadian Underwriters, in form and substance reasonably
                  satisfactory to the Canadian Underwriters, relating to the
                  verification of the financial information and accounting data
                  and other numerical data of a financial nature contained in
                  the Final Prospectus and matters involving changes or
                  developments since the respective dates as of which specified
                  financial information is given in the Final Prospectus to a
                  date not more than two business days prior to the date of such
                  letter. Such letter shall further state that such auditors are
                  independent with respect to the Corporation within the meaning
                  of applicable Canadian Securities Laws, and that in their
                  opinion the audited financial statements of the Corporation
                  included in the Final Prospectus comply as to form in all
                  material respects with the applicable accounting requirements
                  of applicable Canadian Securities Laws;

         (b)      a copy of the Final Prospectus signed and certified as
                  required by Canadian Securities Laws; and

<PAGE>

                                     - 22 -

         (c)      a copy of any other document required to be filed by the
                  Corporation with the Qualifying Authorities under Canadian
                  Securities Laws of each of the Qualifying Provinces.

(2)      The comfort letter referred to in Section 9(1)(a) shall be in addition
         to any comfort letters required by the terms of the U.S. Agreement to
         be delivered to the U.S. Agents.

(3)      Similar documents and comfort letters shall be delivered to the
         Canadian Underwriters with respect to any Prospectus Amendment
         (provided, in the case of comfort letters, that the Prospectus
         Amendment contains financial, accounting or other numerical data of a
         financial nature), or as required by the terms of the U.S. Agreement to
         be delivered to the U.S. Agents.

SECTION 10 CLOSING

(1)      The Offering will be completed at the offices of Stikeman Elliott in
         Toronto at 8:00 a.m. (Toronto time) on July 24, 2002 (the "TIME OF
         CLOSING" and the "CLOSING DATE", respectively) or at such other time
         and/or on such other date as the Canadian Underwriters and the
         Corporation may agree upon, but in any event no later than August 7,
         2002.

(2)      At the Time of Closing, subject to the terms and conditions contained
         in this Agreement, the Corporation shall deliver to the Canadian
         Underwriters a certificate or certificates representing the Offered
         Securities against payment of the purchase price by certified cheque,
         bank draft or wire transfer, dated the Closing Date, payable to the
         Corporation. The Corporation will, at the Time of Closing and upon such
         payment of the purchase price to the Corporation, make payment in full
         of the Underwriting Fee.

SECTION 11 CLOSING OF CANADIAN UNDERWRITERS' OPTION

(1)      The purchase and sale of the Additional Units shall be completed at
         such time and place as the Canadian Underwriters and the Corporation
         may agree, but in no event shall such closing occur later than five (5)
         full business days after written notice of election to purchase
         Additional Units under the Canadian Underwriters' Option is given in
         the manner contemplated by the second paragraph of this Agreement (the
         "OVER-ALLOTMENT CLOSING").

(2)      At the Over-Allotment Closing, subject to the terms and conditions
         contained in this Agreement, the Corporation shall deliver to the
         Canadian Underwriters a certificate or certificates representing the
         Additional Units against payment of the purchase price by certified
         cheque, bank draft or wire transfer, dated the date of the
         Over-Allotment Closing, payable to the Corporation. The Corporation
         will, at the time of the Over-Allotment Closing and upon such payment
         of the purchase price to the Corporation, make payment in full of the
         Underwriting Fee in respect of the Additional Units.

SECTION 12 TERMINATION RIGHTS

(1)      All terms and conditions set out herein shall be construed as
         conditions and any breach or failure by the Corporation to comply with
         any such conditions in favour of the Canadian Underwriters shall
         entitle the Canadian Underwriters to terminate their

<PAGE>

                                     - 23 -

         obligation to purchase the Securities by written notice to that effect
         given to the Corporation prior to the Time of Closing on the Closing
         Date. The Corporation shall use its reasonable best efforts to cause
         all conditions in this Agreement to be satisfied. It is understood that
         the Canadian Underwriters may waive in whole or in part, or extend the
         time for compliance with, any of such terms and conditions without
         prejudice to their rights in respect of any subsequent breach or
         non-compliance, provided that to be binding on the Canadian
         Underwriters, any such waiver or extension must be in writing.

(2)      In addition to any other remedies that may be available to the Canadian
         Underwriters, the Canadian Underwriters shall each be entitled, at
         their option, to terminate and cancel, without any liability on the
         Canadian Underwriters' part, their obligations under this Agreement to
         purchase the Securities, by giving written notice to the Corporation at
         any time at or prior to the Time of Closing on the Closing Date:

         (a)      if there should occur any suspension or limitation of trading
                  in securities generally on the TSX or AMEX, or if a general
                  moratorium on commercial banking activities in Toronto or New
                  York should be declared by the relevant authorities, or if, in
                  relation to the Corporation, any inquiry, investigation or
                  other proceeding (whether formal or informal) is commenced,
                  threatened or announced or any order or ruling is issued by
                  any officer of such exchange or market, or by the SEC, or any
                  other regulatory authority in Canada or the United States, or
                  if any law or regulation under or pursuant to any statute of
                  Canada or of any province thereof or of the United States or
                  any state or territory thereof is promulgated or changed
                  which, in the reasonable opinion of the Canadian Underwriters
                  (or any of them) operates to prevent or materially restrict
                  trading the Common Shares or the distribution of the
                  Securities or could reasonably be expected to have a
                  significant adverse effect on the market price of the Common
                  Shares or the Securities;

         (b)      if, after the date hereof and prior to the Time of Closing,
                  the state of financial markets in Canada or the United States
                  is such that, in the reasonable opinion of the Canadian
                  Underwriters (or either of them), the Securities cannot be
                  marketed profitably, either Canadian Underwriter shall be
                  entitled, at its option, to terminate its obligations under
                  this Agreement by notice to that effect given to the
                  Corporation at or prior to the Time of Closing;

         (c)      if any inquiry, investigation or other proceeding is commenced
                  or any other order is issued under or pursuant to any statute
                  of Canada or any province thereof (other than an inquiry,
                  investigation or other proceeding order based solely upon the
                  activities or alleged activities of any Canadian Underwriter
                  or Selling Firm) or the United States of America or any
                  division thereof or there is any change of law or the
                  interpretation or administration thereof by a securities
                  regulator or other public authority, which in the reasonable
                  opinion of the Canadian Underwriters, operates to prevent or
                  materially restrict the trading of the Common Shares or the
                  distribution of the Securities;

<PAGE>

                                     - 24 -

         (d)      if there shall occur any material change in the business,
                  affairs, operations, assets, liabilities or financial
                  condition of the Corporation on a consolidated basis or other
                  change in a material fact relating to the Corporation on a
                  consolidated basis which in the Canadian Underwriters'
                  reasonable opinion would be expected to have a significant
                  adverse effect on the market price or value of any of the
                  Securities or the Common Shares; or

         (e)      if there should develop, occur or come into effect or
                  existence any event, action, state, condition or major
                  financial occurrence of national or international consequence,
                  including without limiting the generality of the foregoing,
                  any military conflict, civil insurrection, or any terrorist
                  action, including without limitation, military insurrection
                  (whether or not in connection with such conflict or
                  insurrection), or any law or regulation, which, in the
                  Canadian Underwriters' reasonable opinion, seriously adversely
                  affects or involves, or will seriously adversely affect or
                  involve, the Canadian or United States financial markets or
                  the business, operations or affairs of the Corporation on a
                  consolidated basis and/or prevents or materially restricts the
                  trading of the Common Shares or the distribution of the
                  Securities.

(3)      The Canadian Underwriters shall make reasonable best efforts to give
         notice to the Corporation (in writing or by other means) of the
         occurrence of any of the events referred to in Section 12(2) provided
         that neither the giving nor the failure to give such notice shall in
         any way affect the entitlement of the Canadian Underwriters to exercise
         this right at any time prior to or at the Time of Closing.

(4)      The rights of termination contained in this Section 12 as may be
         exercised by the Canadian Underwriters are in addition to any other
         rights or remedies the Canadian Underwriters may have in respect of any
         default, act or failure to act or non-compliance by the Corporation in
         respect of any of the matters contemplated by this Agreement.

(5)      If the obligations of the Canadian Underwriters are terminated under
         this Agreement pursuant to these termination rights, the Corporation's
         liabilities to the Canadian Underwriters shall be limited to the
         Corporation's obligations under Section 13, Section 14 and Section 15.

SECTION 13 INDEMNITY

(1)      The Corporation covenants and agrees to protect, indemnify, and save
         harmless, each of the Canadian Underwriters, and their respective
         directors, officers, employees and agents (individually, an
         "INDEMNIFIED Party" and collectively, the "INDEMNIFIED PARTIES"),
         against all losses, claims, damages, liabilities, reasonable costs or
         expenses (but not including loss of profit related to the sale of the
         Securities in the Offering) caused or incurred by reason of:

         (a)      any statement, other than a statement relating solely to the
                  Canadian Underwriters, contained in the Preliminary
                  Prospectus, the Final Prospectus, or in any Prospectus
                  Amendment, or in any supplemental or additional or ancillary
                  material, information, evidence, return, report, application,
                  statement or

<PAGE>

                                     - 25 -

                  document (collectively, the "SUPPLEMENTARY MATERIAL") that has
                  been filed by or on behalf of the Corporation in connection
                  with the Offering under the relevant securities laws of any of
                  the Qualifying Provinces which at the time and in the light of
                  the circumstances under which it was made contains or is
                  alleged to contain a misrepresentation (as such term is
                  defined in the Securities Act (Ontario));

         (b)      the omission or alleged omission to state in the Preliminary
                  Prospectus, the Final Prospectus, any Prospectus Amendment or
                  in any Supplementary Material or any certificate of the
                  Corporation delivered hereunder or pursuant hereto any
                  material fact (as defined in the Securities Act (Ontario))
                  (other than a material fact relating solely to the Canadian
                  Underwriters) required to be stated therein or necessary to
                  make any statement therein not misleading in light of the
                  circumstances under which it was made;

         (c)      any order made or inquiry, investigation or proceeding
                  commenced or threatened by any securities commission or other
                  competent authority based upon any untrue statement or
                  omission or alleged untrue statement or omission in the
                  Preliminary Prospectus, the Final Prospectus, or Prospectus
                  Amendment, or any Supplementary Material, other than a
                  statement relating solely to the Canadian Underwriters, which
                  prevents or restricts the trading in any of the Common Shares
                  or the distribution or distribution to the public, as the case
                  may be, of any of the Securities in any of the Qualifying
                  Provinces;

         (d)      the Corporation not complying with any requirement of any
                  applicable Canadian Securities Laws; or

         (e)      any breach of a representation or warranty of the Corporation
                  contained herein or the failure of the Corporation to comply
                  with any of its obligations hereunder.

(2)      To the extent that any Indemnified Party is not a party to this
         Agreement, the Canadian Underwriters shall obtain and hold the right
         and benefit of the above-noted indemnity in trust for and on behalf of
         such Indemnified Party.

(3)      If any matter or thing contemplated by this Section 13 shall be
         asserted against any Indemnified Party in respect of which
         indemnification is or might reasonably be considered to be provided,
         such Indemnified Party will notify the Corporation as soon as possible
         of the nature of such claim (provided that omission to so notify the
         Corporation will not relieve the Corporation of any liability which it
         may otherwise have to the Indemnified Party hereunder, except to the
         extent the Corporation is materially prejudiced by such omission) and
         the Corporation shall be entitled (but not required) to assume the
         defence of any suit brought to enforce such claim; provided, however,
         that the defence shall be through legal counsel reasonably acceptable
         to such Indemnified Party and that no settlement may be made by the
         Corporation or such Indemnified Party without the prior written consent
         of the other, such consent not to be unreasonably withheld.

<PAGE>

                                     - 26 -

(4)      In any such claim, such Indemnified Party shall have the right to
         retain other legal counsel to act on such Indemnified Party's behalf,
         provided that the fees and disbursements of such other legal counsel
         shall be paid by such Indemnified Party, unless: (i) the Corporation
         and such Indemnified Party mutually agree to retain other legal
         counsel; or (ii) the representation of the Corporation and such
         Indemnified Party by the same legal counsel would be inappropriate due
         to actual or potential differing interests, in which event such fees
         and disbursements shall be paid by the Corporation to the extent that
         they have been reasonably incurred, provided that in no circumstances
         will the Corporation be required to pay the fees and expenses of more
         than one set of legal counsel for all Indemnified Parties.

(5)      The rights of indemnity contained in this Section 13 shall not enure to
         the benefit of any Indemnified Party if the Canadian Underwriters were
         provided with a copy of any amendment or supplement to the Final
         Prospectus which corrects any untrue statement or omission or alleged
         omission which is the basis of a claim by a party against such
         Indemnified Party and which is required, under Canadian Securities
         Laws, to be delivered to such party by the Canadian Underwriters or the
         Selling Firms.

SECTION 14 CONTRIBUTION

         In the event that the indemnity provided for in Section 13 hereof is
declared by a court of competent jurisdiction to be illegal or unenforceable as
being contrary to public policy or for any other reason, the Canadian
Underwriters and the Corporation shall contribute to the aggregate of all
losses, claims, costs, damages, expenses or liabilities of the nature provided
for above such that each Canadian Underwriter shall be responsible for that
portion represented by the percentage that the portion of the Underwriting Fee
payable by the Corporation to such Canadian Underwriter bears to the gross
proceeds realized by the Corporation from the Offering, whether or not the
Canadian Underwriters have been sued together or separately, and the Corporation
shall be responsible for the balance, provided that, in no event, shall an
Underwriter be responsible for any amount in excess of the portion of the
Underwriting Fee actually received by such Canadian Underwriter. In the event
that the Corporation may be held to be entitled to contribution from the
Canadian Underwriters under the provisions of any statute or law, the
Corporation shall be limited to contribution in an amount not exceeding the
lesser of: (a) the portion of the full amount of losses, claims, costs, damages,
expenses, liabilities, giving rise to such contribution for which such Canadian
Underwriter is responsible; and (b) the amount of the Underwriting Fee actually
received by any Canadian Underwriter. Notwithstanding the foregoing, a person
guilty of fraud, fraudulent misrepresentation or gross negligence shall not be
entitled to contribution from any other party. Any party entitled to
contribution will, promptly after receiving notice of commencement of any claim,
action, suit or proceeding against such party in respect of which a claim for
contribution may be made against another party or parties under this section,
notify such party or parties from whom contribution may be sought, but the
omission to so notify such party shall not relieve the party from whom
contribution may be sought from any obligation it may have otherwise under this
section, except to the extent that the party from whom contribution may be
sought is materially prejudiced by such omission. The right to contribution
provided herein shall be in addition and not in derogation of any other right to
contribution which the Canadian Underwriters may have by statute or otherwise by
law.

<PAGE>

                                     - 27 -

SECTION 15 EXPENSES

         Whether or not the transactions provided for herein (including the
Offering) are completed, the Corporation shall pay all costs, fees and expenses
of or incidental to the performance of its obligations under this Agreement
including, without limitation: (i) the costs of the Corporation's professional
advisors (including, without limitation, the Corporation's auditors, counsel and
local counsel, including U.S. counsel) and (ii) the cost of printing the
Preliminary Prospectus, the Final Prospectus, any Prospectus Amendment, the U.S.
forms of such prospectuses and any amendments or supplements thereto,
Supplementary Material and certificates for the Securities. The fees and
disbursements of any counsel (whether Canadian or U.S.) to the Canadian
Underwriters and the U.S. Agents up to an aggregate amount of Cdn$235,000 and
out-of-pocket expenses of the Canadian Underwriters shall be borne by the
Corporation; provided that, notwithstanding the foregoing, in the event that the
sale and purchase of the Securities is not completed in accordance with the
terms hereof (other than as a result of a breach by the Canadian Underwriters of
any of its obligations hereunder), the Corporation shall assume and pay, in
addition to the out-of pocket expenses of the Canadian Underwriters and any
other expenses required to be paid by it hereunder, all fees and disbursements
of counsel (whether Canadian or U.S.) to the Canadian Underwriters or the U.S.
Agents.

SECTION 16 LIABILITY OF CANADIAN UNDERWRITERS

(1)      The obligation of the Canadian Underwriters to purchase the Offered
         Securities in connection with the Offering at the Time of Closing on
         the Closing Date shall be several and not joint or joint and several
         and shall be as to the following percentages of the Offered Securities
         to be purchased at that time:

<Table>

<S>                                                          <C>
         Canaccord Capital Corporation                          50%
         BMO Nesbitt Burns Inc.                                 50%
                                                             -----
                                                               100%
</Table>

(2)      No Canadian Underwriter shall be obligated to take up and pay for any
         of the Offered Securities unless the other Canadian Underwriter
         simultaneously takes up and pays for the percentage of the Offered
         Securities set out above opposite their name.

(3)      If one of the Canadian Underwriters fails to purchase its applicable
         percentage of the aggregate amount of the Offered Securities at the
         Closing Time, for any reason, the other Canadian Underwriter shall be
         relieved of its obligations hereunder provided that such other Canadian
         Underwriter shall have the right, but shall not be obligated, to
         purchase, all but not less than all, of the Offered Securities which
         would otherwise have been purchased by the Canadian Underwriter which
         failed to purchase. If, with respect to the Offered Securities, any
         non-defaulting Canadian Underwriter elects not to exercise such right
         so as to assume the entire obligation of the defaulting Underwriter or
         Canadian Underwriters (the Offered Securities in respect of which the
         defaulting Underwriter(s) fail to purchase and the non-defaulting
         Canadian Underwriter does not elect to purchase, being hereinafter
         called the "DEFAULT SHARES"), then the Corporation shall have the right
         to either (i) proceed with the sale of the Offered Securities (less the
         Default Shares) to the non-defaulting Canadian Underwriter in which
         case the Closing

<PAGE>

                                     - 28 -

         Date may be postponed for 72 hours by notice to the Corporation or (ii)
         terminate its obligations hereunder without liability to the
         non-defaulting Canadian Underwriters except under Section 13, Section
         14 and Section 15 hereof. Nothing in this Section 16 shall oblige the
         Corporation to sell to any of the Canadian Underwriters less than all
         of the Offered Securities or shall relieve any of the Canadian
         Underwriters in default hereunder from liability to the Corporation.

(4)      Notwithstanding the foregoing, the Canadian Underwriters shall have the
         right, but not the obligation, to sell to the U.S. Agents, any Offered
         Securities pursuant to the Inter-Dealer Agreement, and subject to the
         terms and conditions set out therein.

(5)      Any Offered Securities that are sold by the U.S. Agents pursuant to the
         U.S. Agreement will reduce the obligation of the Canadian Underwriters
         to purchase the Offered Securities hereunder by an equal amount.

SECTION 17 ACTION BY CANADIAN UNDERWRITERS

         All steps which must or may be taken by the Canadian Underwriters in
connection with this Agreement, with the exception of the matters relating to
termination contemplated by Section 12 hereof, may be taken by the Lead Manager
on behalf of itself and the other Canadian Underwriters and the acceptance of
this offer by the Corporation shall constitute the Corporation's authority for
accepting notification of any such steps from, and for delivering the definitive
documents constituting the Securities to or to the order of the Lead Manager.

SECTION 18 COMPLIANCE WITH U.S. SECURITIES LAWS; CONCURRENT OFFERING

(1)      The Corporation and the Canadian Underwriters agree that each will
         comply with U.S. Securities Laws in connection with this Agreement and
         the Offering. Each acknowledges that the Securities will be registered
         under the U.S. Securities Act and that the Preliminary Prospectus and
         the Final Prospectus must be, or have been, filed with SEC.

(2)      It is understood and agreed to by all parties that the Corporation is
         concurrently entering into the US Agreement providing for the sale by
         the Corporation of 6,916,000 Units in the United States, through
         arrangements with the U.S. Agents. Anything herein or therein to the
         contrary notwithstanding, the respective closings under this Agreement
         and the U.S. Agreement are hereby expressly made conditional on one
         another. Two forms of prospectus are to be used in connection with the
         offering and sale of the Securities contemplated by the foregoing, one
         relating to the Securities hereunder and the other related to the
         Securities sold through the U.S. Agents. The latter form of prospectus
         will be identical to the former except that certain additional pages
         will be included in the Preliminary Prospectus and the Final
         Prospectus, and amendments thereto, that relate to Canadian Securities
         Laws or Canadian market conventions.

SECTION 19 GOVERNING LAW; TIME OF ESSENCE

         This Agreement shall be governed by and construed in accordance with
the laws of the Province of Ontario and the federal laws of Canada applicable
therein and time shall be of the essence hereof.

<PAGE>

                                     - 29 -

SECTION 20 SURVIVAL OF WARRANTIES, REPRESENTATIONS, COVENANTS AND AGREEMENTS

         All warranties, representations, covenants and agreements of the
Corporation and the Canadian Underwriters herein contained or contained in
documents submitted or required to be submitted pursuant to this Agreement shall
survive the purchase by the Canadian Underwriters of the Securities and shall
continue in full force and effect, regardless of the closing of the sale of the
Securities and regardless of any investigation which may be carried on by the
Canadian Underwriters, or on their behalf, for a period of two years following
the Closing Date. Without limitation of the foregoing, the provisions contained
in this Agreement in any way related to the indemnification or the contribution
obligations herein shall survive and continue in full force and effect,
indefinitely.

SECTION 21 PRESS RELEASES

         The Corporation shall provide the Canadian Underwriters and their
counsel with a copy of all press releases to be issued by the Corporation
concerning the Offering contemplated hereby prior to the issuance thereof, and
shall give the Canadian Underwriters and their counsel a reasonable opportunity
to provide comments on any press release.

SECTION 22 NOTICES

         All notices or other communications by the terms hereof required or
permitted to be given by one party to another shall be given in writing by
personal delivery or by facsimile delivered or facsimile to such other party as
follows:

         (a)      to the Corporation at:
                  Golden Star Resources Ltd.
                  10579 Bradford Road
                  Suite 103
                  Littleton, Colorado
                  USA, 80127-4247

                  Attention:      Peter Bradford
                  Facsimile No.:  (303) 830-9094

                  with a copy to:

                  Field Atkinson Perraton LLP
                  1900, 350-7th Avenue S.W.
                  Calgary, Alberta
                  T2P 3N9

                  Attention:      Bonnie Kuhn
                  Facsimile No.:  (403) 264-7084

<PAGE>

                                     - 30 -

                  and to:

                  Stoel Rives LLP
                  900 S.W. 5th Avenue
                  Portland, Oregon
                  U.S.A. 97204-1268

                  Attention:      John Halle
                  Facsimile No.:  (503) 220-2480

         (b)      to the Canadian Underwriters at:

                  Canaccord Capital Corporation
                  320 Bay Street
                  Suite 1210
                  Toronto, Ontario

                  Attention:      Peter Marrone
                  Facsimile No.:  (416) 869-3876

                  and

         (c)      BMO Nesbitt Burns Inc.
                  1 First Canadian Place
                  Toronto, Ontario
                  M5X 1H3

                  Attention:      Egizio Bianchini
                  Facsimile No.:  (416) 359-4459

                  with a copy to:

                  Stikeman Elliott
                  5300 Commerce Court West
                  199 Bay Street
                  Toronto, Ontario
                  M5L 1B9

                  Attention:      Jay C. Kellerman
                  Facsimile No.:  (416) 947-0866

                  and to:

                  Dorsey & Whitney LLP
                  BCE Place
                  161 Bay Street, Suite 4310
                  Toronto, Ontario
                  Canada M5J 2S1
                  Attention:      Christopher Barry Facsimile
                  No.:            (416) 367-7371

<PAGE>

                                     - 31 -

or at such other address or facsimile number as may be given by either of them
to the other in writing from time to time and such notices or other
communications shall be deemed to have been received when delivered or, if
facsimile, on the next business day after such notice or other communication has
been facsimile (with receipt confirmed).

SECTION 23 JUDGMENT CURRENCY

In respect of any judgment or order given or made for any amount due hereunder
that is expressed and paid in a currency (the "JUDGMENT CURRENCY") other than
Canadian dollars, the Corporation shall indemnify each Canadian Underwriter
against any loss incurred by such Canadian Underwriter as a result of any
variation as between (i) the rate of exchange at which the Canadian dollar
amount is converted into the judgment currency for the purpose of such judgment
or order and (ii) the rate of exchange at which a Canadian Underwriter is able
to purchase Canadian dollars with the amount of the judgment currency actually
received by such Canadian Underwriter. The term "rate of exchange" shall include
any premiums and costs of exchange payable in connection with the purchase of or
conversion into Canadian dollars.

SECTION 24 COUNTERPART SIGNATURE

         This Agreement may be executed in one or more counterparts (including
counterparts by facsimile) which, together, shall constitute an original copy
hereof as of the date first noted above.

SECTION 25 ENTIRE AGREEMENT

         This Agreement constitutes the entire agreement between the Canadian
Underwriters and the Corporation relating to the subject matter hereof and
supersedes all prior agreements between the Canadian Underwriters and the
Corporation.

         (THE REMAINDER OF THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY)

<PAGE>

SECTION 26 ACCEPTANCE

         If this offer accurately reflects the terms of the transaction which we
are to enter into and if such terms are agreed to by the Corporation, please
communicate your acceptance by executing where indicated below and returning by
facsimile one copy and returning by courier one originally executed copy to
Canaccord Capital Corporation (Attention: Peter Marrone).

                                       Yours very truly,

                                       CANACCORD CAPITAL CORPORATION

                                       By: /s/ "PETER MARRONE"
                                           -------------------------------------
                                             "Peter Marrone"
                                             Authorized Signing Officer

                                       BMO NESBITT BURNS INC.

                                       By: /s/ "EGIZIO BIANCHINI"
                                           -------------------------------------
                                             "Egizio Bianchini"
                                             Authorized Signing Officer

<PAGE>

         The foregoing accurately reflects the terms of the transaction that we
are to enter into and such terms are agreed to.

         ACCEPTED at Littleton, Colorado as of this 17th day of July, 2002.

                                         GOLDEN STAR RESOURCES LTD.

                                         By: /s/ "ALLAN J. MARTER"
                                             -----------------------------------
                                                "Allan J. Marter"
                                                Authorized Signing Officer

<PAGE>

                                   SCHEDULE A

                              MATERIAL SUBSIDIARIES

<Table>
<Caption>

NAME                                      TYPE OF OWNERSHIP                          PERCENTAGE
----                                      -----------------                          ----------
<S>                                       <C>                                        <C>

Caystar Holdings (Cayman                  Shares                                     100%
Islands)

Bogoso Holdings (Ghana)                   Shares                                     100%

Bogoso Gold Limited                       Shares                                      90%
(Ghana)

Guyanor Resources S.A.                    Shares                                      73%
(France)

Societe de Traveux Publics et             Shares                                     100%
de Mines Auriferes en
Guyane S.A.R.L. (France)

Societe des Mines de Yaou &               Shares                                     100%
Dorlin [S.A.R.L.] (France)

Societe de Mines de Saint-                Shares                                     100%
Elie S.A.R.L. (France)

Pan African Resources                     Shares                                     99.9%
Corporation (Yukon
Territory)

Pan African Resources                     Shares                                     100%
Corporation (Barbados)

PARC Cote d'Ivoire S.A.                   Shares                                     100%
(Ivory Coast)

Wasford Holdings (Cayman                  Shares                                     100%
Islands)
</Table>

<PAGE>

                                   SCHEDULE B

                             CONVERTIBLE SECURITIES

<Table>
<Caption>

                                     NUMBER OF
                                   COMMON SHARES
SECURITY                           EXERCISABLE INTO             EXERCISE OR CONVERSION PRICE
--------                           ----------------             ----------------------------
<S>                                <C>                          <C>
Options                             4,550,944                    (Cdn$0.60 to Cdn$1.80)

Warrants                            6,602,333                    ($0.70 to $1.75)

Debentures                          1,804,286                    ($0.70)

TOTAL                              12,957,563
</Table>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]