Document:

EXHIBIT
10.28

     

    Technology
Transfer and License Agreement

     

     

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TECHNOLOGY
TRANSFER AND LICENSE AGREEMENT

     

    THIS TECHNOLOGY TRANSFER AND LICENSE
AGREEMENT ("the Agreement") effective as of December 14, 2010 (the
“Effective Date”) is entered into by and between NETLAB SYSTEMS, LLC, with its
principal office at 1450 South Miami Avenue, Miami, Florida
33130  (“Netlab”) and OPENFILM, LLC, with its principal office at 1450
South Miami Avenue, Miami, Florida 33130 ("Openfilm").

     

    WHEREAS, Openfilm has
developed certain technologies that comprise it’s website portal business (the
“Technologies”) and has transferred all right, interest and title to such
Technologies to Netlab as part of a Technology Transfer Agreement.

     

    WHEREAS, Openfllm desires to
license the Technologies from Netlab and Netlab desires to license the
Technologies to Openfilm, pursuant to the terms and conditions contained
herein.

     

    NOW, THEREFORE, as
consideration for the mutual premises and other covenants contained herein, the
receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:

     

    
      	
              1.

            	
              GRANT
      OF LICENSE

            

    

     

    
      1.1          
License.  Subject
to the terms of this Agreement, Netlab hereby grants to Openfilm, and Openfilm
hereby accepts, a perpetual, non-exclusive, non-transferable (except as provided
herein) license to use, incorporate, modify and enhance the Technologies in the
use of Openfilm’s Website business, including without limitation, Openfilm’s
ability to license portions of the Technologies to
third-parties.

    

     

    1.2           Proprietary Marks, Legends
and Notices.  Openfilm shall not remove any proprietary marks,
legends and patent and copyright notices that appear on the Technologies
including any users' manuals, handbooks and other written or electronic material
relating to the Technologies.

     

    
      	
              2.

            	
              LICENSE
      FEES AND PAYMENT TERMS

            

    

     

    2.1           License
Fees.  Openfilmshall pay to Netlab a license fee of five
percent (5%) of all gross revenue generated by Openfilm using the
Technologies.

     

    
      2.2          
Payment Terms.
Openfilm shall make payment of the License Fee within ten (10) business days of
the end of each calendar quarter.All payments shall be made in U.S.
Dollars.  Any amount not paid when due shall bear a late payment
charge on the unpaid balance at the rate of 1.5% per month or the maximum amount
permitted by law, whichever is less.  Receipt of a check, draft or
other commercial paper shall not constitute payment until Netlab shall have
received in cash the full amount thereof.

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              3.

            	
              TERM
      AND TERMINATION

            

    

     

    
      This
Agreement shall have an initial term of ten (10) years from the Effective
Date.  The initial term shall be renewed for successive renewal terms
of one (1) year each, upon the expiration of the then existing term; provided,
however, that Openfilm can terminate this Agreement by discontinuing its use of
the Technologies.  Netlab may only terminate this Agreement at the end
of the initial term or at the end of any subsequent term, by providing
thirty-days (30) written notice of its intent to terminate. Neither party shall
be responsible to the other for any losses arising out of
termination.

    

     

    
      	
              4.

            	
              DEVELOPMENT
      AND SUPPORT

            

    

     

    
      4.1          
Development.  Netlab
shall provide reasonabledevelopment support services to Openfilm.Openfilm and
Netlab shall meet to discuss the development of additional functionality for the
Website at least once per quarter.  After such meeting, Netlab shall
provide a development timetable.Netlab shall provide such development at no
additional costs to Openfilm.

    

     

    
      4.2          
Assignment of
Innovations.  Openfilm shall assign all of its rights in future
innovations related to the Technologies to Netlab for no additional
consideration other than Netlab’s obligation to provide future
development.

    

     

    4.3           Support.  Netlab
shall respond to support requests within 24 hours.  Openfilm and
Netlab will monitor user submitted support issues and will coordinate the
prioritization of such issues and requests.

     

    
      	
              5.

            	
              LIMITED
      WARRANTY

            

    

     

    
      5.1          
Intellectual Property
Rights.  Netlab has all Intellectual Property Rights necessary
to license the Technologies to Openfilm in accordance with the terms of this
Agreement.

    

     

    
      5.2          
Limitations.  The
foregoing warranties apply only to Openfilm.  Netlab makes no
warranties, express or implied, to any third parties.   Netlab
shall provide warranty service only for the most current version of the
Technologies.  Netlab shall have no obligation to provide warranty
services if any Material Defect in the Technologies is caused by:  (i)
a malfunction of hardware or software not supplied by Netlab; (ii)
modification of the Technologies by any person or entity other than Netlab;
(iii) operator error; (iv) use of the Technologies that is not in accordance
with the operating instructions for the Technologies; or (v) accident, abuse,
misapplication, hackers, Internet viruses, acts of war, terrorism or force
majeure.

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      5.3          
Disclaimer.  EXCEPT
FOR NETLAB'S EXPRESS WARRANTIES STATED HEREIN, TECHNOLOGIES IS PROVIDED "AS IS"
WITHOUT ANY WARRANTY WHATSOEVER.  NETLAB AND ITS LICENSORS DISCLAIM
ALL IMPLIED WARRANTIES WITH RESPECT TO THE TECHNOLOGIES, INCLUDING WITHOUT
LIMITATION, ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
A PARTICULAR PURPOSE.

    

     

    
      5.4          
Limitation of
Liability.  NETLAB'S LIABILITY ARISING OUT OF THIS AGREEMENT OR
LICENSING OF THE TECHNOLOGIES SHALL BE LIMITED TO THE LICENSE FEES PAID BY
OPENFILM DURING THE SIX  (6) MONTH PERIOD PRECEDING THE EVENT GIVING
RISE TO NETLAB'S LIABILITY.  IN NO EVENT SHALL NETLAB BE LIABLE TO
OPENFILM OR ANY OTHER PERSON OR ENTITY FOR ANY EXEMPLARY, SPECIAL,
CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES, OR FOR ANY LOST PROFITS, BUSINESS
INTERRUPTION, OR LOSS OF BUSINESS INFORMATION, HOWEVER CAUSED, ON ANY THEORY OF
LIABILITY, AND WHETHER OR NOT NETLAB HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.  NOR SHALL ANY LICENSOR OF NETLAB BE LIABLE FOR ANY DIRECT OR
OTHER DAMAGES OF ANY KIND WHATSOEVER, ARISING OUT OF THE USE OF THE PRODUCTS
PROVIDED PURSUANT TO THIS AGREEMENT.  THESE LIMITATIONS SHALL APPLY
NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED
REMEDY.

    

     

    
      	
              6.

            	
              OWNERSHIP,
      INTELLECTUAL PROPERTY RIGHTS AND
TRADEMARKS

            

    

     

    
      6.1          
Ownership and Intellectual
Property Rights.  Openfilm hereby acknowledges Netlab’s
exclusive ownership, title and interest in the Intellectual Property Rights and
Marks and Trademarks as defined herein.  Openfilm further agrees that
Netlab retains ownership and all forms of Intellectual Property Rights in the
Confidential Information and Technologies.  As used herein, the term
"Intellectual Property Rights" includes without limitation all right, title and
interest in and to all (i) Letters Patent and all filed, pending or potential
applications for Letters Patent, including any reissue, reexamination, division,
continuation or continuation-in-part applications throughout the world now or
hereafter filed; (ii) trade secret rights and equivalent rights arising under
the common law, state law, federal law and laws of foreign countries; (iii)
copyrights, mask works, other literary property or authors rights, whether or
not protected by copyright or as a mask work, under common law, state law,
federal law and laws of foreign countries; and (iv) proprietary indicia,
trademarks, tradenames, symbols, logos and/or brand names under common law,
state law, federal law and laws of foreign countries.  Openfilm
assigns to Netlab any Intellectual Property Rights it may now or hereafter
possess in the Confidential Information and theTechnologies and agrees to
execute all documents, and take all actions, that may be necessary to confirm
such rights.

    

     

    
      
         

      

      
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      6.2          
Use of
Marks.  As used herein, the terms "Marks" or "Trade Marks" mean
all proprietary indicia, trademarks, tradenames, symbols, logos and/or brand
names Netlab may adopt from time to time to identify Netlab, its products, or
any related parties or materials.  During the Term, Openfilm shall
have the right to indicate to the public that it is an authorized provider of
the Netlab Software and use the Marks to identify the Netlab Software; but shall
not make any other use of the same (and shall not make any use of any
trademarks, trade names, symbols, or logos of any of Netlab's licensors) for any
reason, except as expressly authorized by this Agreement.  At no time
during or after the term of the Agreement shall Openfilm challenge or assist
others to challenge Netlab's Intellectual Property Rights in the Marks or the
registration thereof or attempt to register any trademarks, tradenames or other
proprietary indicia confusingly similar to the Marks, nor shall the
authorized use of the Marks or Trademarks create in Openfilm’s favor any right
or interest in the Netlab Marks or Trademarks.

    

     

    6.3           Quality
Control.  All representations of the Marks that Openfilm
intends to use shall be exact copies of those used by Netlab or shall first be
submitted to Netlab for prior written approval of design, color, and other
details.  Upon reasonable notice and request, Netlab may inspect
copies of the Technologies and other materials on which the Marks are used so
that Netlab may monitor the quality of the products bearing the
Marks.

     

    
      	
              7.

            	
              CONFIDENTIALITY.

            

    

     

    
      As used
in this Agreement, "Confidential Information" shall mean all information that is
disclosed by Netlab to Openfilm, including without limitation, hardware and
software designs, product specifications and documentation, trade secrets,
business and product plans, marketing information, know-how and other
confidential business information.  Confidential Information shall not
include information which: (i) is or becomes public knowledge without any action
by, or involvement of, the receiving party; (ii) is disclosed by the receiving
party with the prior written approval of Netlab; or (iii) is disclosed pursuant
to any judicial or governmental order, rule or regulation or judicial or
administrative proceeding or request; provided that the receiving party gives
Netlab sufficient prior notice to contest such order.  Openfilm shall
not disclose, or permit any third party or entity access to, the Confidential
Information (or any portion thereof) without prior written permission of Netlab
(except such disclosure or access which is required to perform any obligations
under this Agreement).  Openfilm shall insure that any employees, or
any third parties who receive access to the Confidential Information, are
advised of the confidential and proprietary nature thereof and are prohibited
from copying, utilizing or otherwise revealing the Confidential
Information.  Without limiting the foregoing, Openfilm agrees to
employ with regard to the Confidential Information procedures no less
restrictive than the strictest procedures used by it to protect its own
confidential and proprietary information, but not less than reasonable
care.

    

     

    
      
         

      

      
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              8.

            	
              NOTIFICATION
      OF CLAIMS OR UNAUTHORIZED USE

            

    

     

    
      Openfilm
shall promptly notify Netlab in writing upon:  (i) receipt of any
notice of any claims by third parties that might affect the rights of Netlab or
any of its licensors in the Technologies and (ii) its discovery of any
unauthorized use or infringement of the Confidential Information, the
Technologies or Netlab's Intellectual Property Rights with respect
thereto.  Netlab shall have the sole and exclusive right to bring an
infringement action or proceeding against infringing third party, and, in the
event that Netlab brings such an action or proceeding, Openfilm shall cooperate
and provide full information and assistance to Netlab and its counsel in
connection with any such action or proceeding.

    

     

    
      	
              9.

            	
              INDEMNIFICATION
      BY OPENFILM

            

    

     

    
      Openfilm
shall protect, defend, indemnify and hold Netlab harmless, at its expense, from
any and all claims, demands, liabilities, obligations, deficiencies, losses,
damages, actions, suits, proceedings, assessments, judgments or settlements,
including all reasonable costs and expenses related thereto such as attorneys'
fees, that arise from or are connected with the development, modification, use
and distribution of the Technologies by Openfilm including, but not limited to,
any unauthorized reproduction, warranty violations, maintenance, defects in
design, workmanship, materials or otherwise or any misrepresentation or covenant
or agreement on the part of Openfilm relating to the
Technologies.

    

     

    
      	
              10.

            	
              GENERAL
      PROVISIONS

            

    

     

    
      10.1        
Compliance with Laws of
Other Jurisdictions.  Openfilm shall comply with all laws,
legislation, rules, regulations, governmental requirements and industry
standards with respect to the Technologies, and the performance by Openfilm of
its obligations hereunder, existing in any jurisdiction into which Openfilm
directly or indirectly uses the Technologies.

    

     

    
      10.2        
Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Florida, without regard to its choice
of law provisions.

    

     

    
      10.3        
Cost, Expenses and
Attorneys' Fees.  If either party commences any action or
proceeding against the other party to enforce or interpret this Agreement, the
prevailing party in such action or proceeding shall be entitled to recover from
the other party the actual costs, expenses and reasonable attorney's fees,
incurred by such prevailing party in connection with such action or proceeding
and in connection with obtaining and enforcing any judgment or order thereby
obtained.

    

     

    
      
         

      

      
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      10.4        
Assignment.  This
Agreement, and the rights and obligations hereunder, may not be assigned, in
whole or in part by Openfilm, except to a successor to the whole of
Openfilm's business, without the prior written consent of Netlab.  In
the case of any permitted assignments or transfer this Agreement shall be
binding upon, and inure to the benefit of, the successors and assigns of the
parties hereto.

    

     

    
      10.5         Notices. Except as
otherwise provided herein, all notices regarding obligations under this
Agreement shall be in writing and either personally delivered or sent
via facsimile, email or certified mail, postage prepaid and return receipt
requested addressed, to such other party at the address specified on the first
page.

    

     

    10.6         Entire Agreement;
Amendment.  This Agreement constitutes the entire agreement
between the parties with regard to the subject matter hereof.  No
waiver, consent or modification of terms of this Agreement shall bind either
party unless in writing and signed by both parties, and then such waiver,
consent or modification shall be effective only in the specific instance and for
the specific purpose given.  Openfilm shall not be construed as a
third party beneficiary of any agreement between Netlab and any of its
licensors.

     

    IN WITNESS WHEREOF, the parties, as of
the Effective Date, have caused this Agreement to be executed by their duly
authorized representatives.

     

    
      
        
          
            
              
                	
                        NETLAB
      SYSTEMS, LLC

                      	 
      	
                        OPENFILM,
      LLC

                      
	 
      	 
      	 
      	 
      	 
      
	
                        By:

                      	
                        /s/ Ivan Onuchin

                      	 
      	
                        By:

                      	
                        /s/ Dmitry Kozko

                      
	 	 	 	 	 
	
                        Name: 

                      	
                        Ivan
      Onuchin

                      	 
      	
                        Name: 

                      	
                        DmitryKozko

                      
	 	 	 	 	 
	
                        Title:

                      	
                        Chief
      Technology Officer

                      	 
      	
                        Title:

                      	
                        Chief
      Executive
Officer

                      

              

            

          

        

      

    

     

    
      
         

      

      
        6FORM
OF

    SUBSCRIPTION
AGREEMENT

    

    Li3
Energy, Inc.

    Av. Pardo
y Aliaga 699, Of. 802

    San
Isidro, Lima, Peru

    

    This
Subscription Agreement (this “Agreement”)
has been executed by the subscriber set forth in the signature page attached
hereto (the “Subscriber”)
in connection with the private placement offering (the “Offering”)
of a minimum of 1,666,667 units (the “Minimum Amount”) and
a maximum of 10,000,000 units of securities (the “PPO
Units”) issued by Li3 Energy, Inc., a Nevada Corporation (the “Company”),
at a purchase price of $0.15 per PPO Unit.  Each PPO Unit consists of
(i) one share of the Company’s common stock, par value $0.001 per share (“Common
Stock”), and (ii) a warrant, substantially in the form of Exhibit A hereto (the
“Warrant”),
representing the right to purchase one share of Common Stock, exercisable from
issuance until five years after the final Closing of the Offering at an exercise
price of $0.15 per share.  This subscription is being submitted to you
in accordance with and subject to the terms and conditions described in this
Agreement and the Confidential Term Sheet of the Company (together with the
Supplement and Amendment thereto) attached hereto as Exhibit B (the “Term
Sheet”), relating to the Offering.

     

    The PPO
Units being subscribed for pursuant to this Agreement have not been registered
under the Securities Act of 1933, as amended (the “Securities
Act”).  The Offering is being made on a “best efforts” basis to
“accredited investors,” as defined in Regulation D under the Securities Act, and
non-”U.S. persons,” as defined in Regulation S under the Securities
Act.  The Company reserves the right, in its sole discretion and for
any reason, to reject any Subscriber’s subscription in whole or in part, or to
allot less than the number of PPO Units subscribed for.

     

    The
closing of the Offering (the “Closing;”
and the date on which such Closing occurs hereinafter referred to as the “Closing
Date”) shall be at the offices of Gottbetter & Partners, LLP, at 488
Madison Avenue, New York, New York 10022 (or such other place as is mutually
agreed to by the Company).  The Company may conduct a closing or
closings for the sale of the PPO Units at any time and from time to time before
the termination of the Offering.  Unless terminated earlier by the
Company, the Offering shall continue until December 10, 2010.

     

    1.           Subscription.  The
undersigned Subscriber hereby subscribes to purchase the number of PPO Units set
forth on the signature page attached hereto, at an aggregate price as set forth
on such signature page (the “Purchase
Price”), subject to the terms and conditions of this Agreement and on the
basis of the representations, warranties, covenants and agreements contained
herein.

     

    2.           Subscription
Procedure.  To complete a subscription for the PPO Units, the
Subscriber must fully comply with the subscription procedure provided in this
Section on or before the Closing Date.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    a.           Transaction
Documents.  On or before the Closing Date, the Subscriber shall
review, complete and execute the Signature Page to this Agreement, the
Anti-Money Laundering Form following the Signature Page and the Investor
Certification, attached hereto as Appendix A (collectively, the “Transaction
Documents”), and deliver the Transaction Documents to the Company’s attorneys,
Gottbetter & Partners, LLP (“G&P”), at the address listed on the
instruction sheet below.  Executed documents may be delivered to
G&P by facsimile or electronic mail (e-mail), if the Subscriber delivers the
original copies of the documents to G&P as soon as practicable
thereafter.

     

    b.           Purchase Price.  Simultaneously
with the delivery of the Transaction Documents to G&P as provided herein,
and in any event on or prior to the Closing Date, the Subscriber shall deliver
to G&P, in its capacity as escrow agent (the “Escrow
Agent”), the full Purchase Price by wire transfer of immediately
available funds pursuant to the instructions set forth under the caption “How to
subscribe for PPO Units in the private offering of Li3 Energy, Inc.:”
below.

     

    c.           Company
Discretion.  The Subscriber understands and agrees that the
Company in its sole discretion reserves the right to accept or reject this or
any other subscription for PPO Units, in whole or in part.  The
Company shall have no obligation hereunder until the Company shall execute and
deliver to the Subscriber an executed copy of this Agreement.  If this
subscription is rejected in whole, or the offering of PPO Units is terminated,
all funds received from the Subscriber will be returned without interest or
offset, and this Agreement shall thereafter be of no further force or
effect.  If this subscription is rejected in part, the funds for the
rejected portion of this subscription will be returned without interest or
offset, and this Agreement will continue in full force and effect to the extent
this subscription was accepted.

     

    d.           No
Trading.  The Subscriber represents and warrants to the Company
that neither the Subscriber nor any of its affiliates has directly or indirectly
traded any securities of the Company, including without limitation, making any
short sales or engaging in any hedging transaction with respect to such
securities (collectively, “Prohibited
Transactions”), since becoming aware of the
Offering.  Furthermore, Subscriber shall not engage in any Prohibited
Transactions through the final Closing Date

     

    3.           Representations and Warranties of the
Company.  The Company hereby represents and warrants to the
Subscriber the following:

     

    a.           Organization and
Qualification.  The Company is a corporation duly organized and
validly existing under the laws of the State of Nevada.  The Company
has all requisite power and authority to carry on its business as currently
conducted, other than such failures that would not reasonably be expected to
have a material adverse effect on the Company’s business, properties or
financial condition (a “Material
Adverse Effect”).  The Company is duly qualified to transact
business in each jurisdiction in which the failure to be so qualified would
reasonably be expected to have a Material Adverse Effect.

    
      
         

      

      
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    b.           Authorization.  As
of the Closing, all action on the part of the Company, its board of directors,
officers and existing stockholders necessary for the authorization, execution
and delivery of this Agreement, the Warrant and the performance of all
obligations of the Company hereunder and thereunder shall have been taken, and
this Agreement and the Warrant, assuming due execution by the parties hereto and
thereto, will constitute valid and legally binding obligations of the Company,
enforceable in accordance with their respective terms, subject to: (i) judicial
principles limiting the availability of specific performance, injunctive relief,
and other equitable remedies and (ii) bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect generally relating
to or affecting creditors’ rights.

    

    c.           Valid Issuance of the Common
Stock and the Warrant.  The shares of Common Stock and the
Warrant, when issued, sold and delivered in accordance with the terms of this
Agreement for the consideration expressed herein, and the shares of Common Stock
underlying the Warrant (the “Warrant
Shares”), when issued and delivered in accordance with the terms of the
Warrant, shall be duly and validly issued and will be free of restrictions on
transfer directly or indirectly created by the Company other than restrictions
on transfer under this Agreement and the terms of the Warrant and under
applicable federal and state securities laws.

    

    d.           Governmental
Consents.  No consent, approval, order or authorization of, or
registration, qualification, designation, declaration or filing with, any
federal, state or local governmental authority on the part of the Company is
required in connection with the offer, sale or issuance of the PPO Units, except
for the following: (i) the filing of such notices as may be required under the
Securities Act and (ii) the compliance with any applicable state securities
laws, which compliance will have occurred within the appropriate time periods
therefor.

    

    e.           Litigation.  There
are no actions, suits, proceedings or investigations pending or, to the best of
the Company’s knowledge, threatened before any court, administrative agency or
other governmental body against the Company which question the validity of this
Agreement or the Warrant or the right of the Company to enter into either of
them, or to consummate the transactions contemplated hereby or thereby, or which
would reasonably be expected to have a Material Adverse Effect.  The
Company is not a party or subject to, and none of its assets is bound by, the
provisions of any order, writ, injunction, judgment or decree of any court or
government agency or instrumentality which would reasonably be expected to have
a Material Adverse Effect.

    

    f.           Compliance with Other
Instruments.  The Company is not in violation or default of any
provision of its Articles of Incorporation, as in effect immediately prior to
the Closing, except for such failures as would not reasonably be expected to
have a Material Adverse Effect. The Company is not in violation or default of
any provision of any material instrument, mortgage, deed of trust, loan,
contract, commitment, judgment, decree, order or obligation to which it is a
party or by which it or any of its properties or assets are bound which would
reasonably be expected to have a Material Adverse Effect.  To the best
of its knowledge, the Company is not in violation or default of any provision of
any federal, state or local statute, rule or governmental regulation which would
reasonably be expected to have a Material Adverse Effect.  The
execution, delivery and performance of and compliance with this Agreement and
the issuance and sale of the PPO Units, will not result in any such violation,
be in conflict with or constitute, with or without the passage of time or giving
of notice, a default under any such provision, require any consent or waiver
under any such provision (other than any consents or waivers that have been
obtained), or result in the creation of any mortgage, pledge, lien, encumbrance
or charge upon any of the properties or assets of the Company pursuant to any
such provision.

    
      
         

      

      
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    g.           Certain Registration
Matters.  Assuming the accuracy of the Subscriber’s
representations and warranties set forth in this Agreement and the Transaction
Documents, and the representations and warranties made by all other purchasers
of PPO Units in the Offering, no registration under the Securities Act is
required for the offer and sale of the PPO Units by the Company to the
Subscriber hereunder.

    

    h.           No General
Solicitation.  Neither the Company nor any person acting on
behalf of the Company has offered or sold any of the PPO Units by any form of
general solicitation or general advertising (within the meaning of Regulation
D).

    

    4.           Representations and Warranties of the
Subscriber.  The Subscriber represents and warrants to the
Company the following:

     

    a.           The
Subscriber, its advisers, if any, and designated representatives, if any, have
the knowledge and experience in financial and business matters necessary to
evaluate the merits and risks of its prospective investment in the Company, and
have carefully reviewed and understand the risks of, and other considerations
relating to, the purchase of PPO Units and the tax consequences of the
investment, and have the ability to bear the economic risks of the
investment.

     

    b.           The
Subscriber is acquiring the PPO Units for investment for its own account and not
with the view to, or for resale in connection with, any distribution
thereof.  The Subscriber understands and acknowledges that the PPO
Units, the Common Stock and Warrants included in the PPO Units and the Warrant
Shares (collectively, the “Securities”)
have not been registered under the Securities Act or any state securities laws,
by reason of a specific exemption from the registration provisions of the
Securities Act and applicable state securities laws, which depends upon, among
other things, the bona fide nature of the investment intent as expressed
herein.  The Subscriber further represents that it does not have any
contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participation to any third person with respect to any of the
Securities.  The Subscriber understands and acknowledges that the
offering of the PPO Units pursuant to this Agreement will not be registered
under the Securities Act nor under the state securities laws on the ground that
the sale provided for in this Agreement and the issuance of securities hereunder
is exempt from the registration requirements of the Securities Act and any
applicable state securities laws.

     

    c.           The
Subscriber understands that no public market now exists, and there may never be
a public market for, the Units and/or Warrants, that an active public market for
the Company’s Common Stock does not now exist and that there may never be an
active public market for the shares of Common Stock sold in the
Offering.  The Subscriber further acknowledges that the Company filed
“Form 10 Information” (as defined in Rule 144(i)) with the SEC reflecting that
it is no longer a shell company on May 14, 2010.

    
      
         

      

      
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    d.           The
Subscriber, its advisers, if any, and designated representatives, if any, have
received and reviewed information about the Company and have had an opportunity
to discuss the Company’s business, management and financial affairs with its
management.  The Subscriber understands that such discussions, as well
as any written information provided by the Company, were intended to describe
the aspects of the Company’s business and prospects which the Company believes
to be material, but were not necessarily a thorough or exhaustive description,
and except as expressly set forth in this Agreement, the Company makes no
representation or warranty with respect to the completeness of such information
and makes no representation or warranty of any kind with respect to any
information provided by any entity other than the Company.  Some of
such information may include projections as to the future performance of the
Company, which projections may not be realized, may be based on assumptions
which may not be correct and may be subject to numerous factors beyond the
Company’s control.  Additionally, the Subscriber understands and
represents that he is purchasing the PPO Units notwithstanding the fact that the
Company may disclose in the future certain material information the Subscriber
has not received, including its financial results for its current fiscal
quarter.

     

    e.           As
of the Closing, all action on the part of Subscriber, and its officers,
directors and partners, if applicable, necessary for the authorization,
execution and delivery of this Agreement and the performance of all obligations
of the Subscriber hereunder and thereunder shall have been taken, and this
Agreement, assuming due execution by the parties hereto, constitutes valid and
legally binding obligations of the Subscriber, enforceable in accordance with
its terms, subject to: (i) judicial principles limiting the availability of
specific performance, injunctive relief, and other equitable remedies and (ii)
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect generally relating to or affecting creditors’
rights.

     

    f.           The
Subscriber either (i) is an “accredited investor” as defined in Rule 501 of
Regulation D as promulgated by the Securities and Exchange Commission under the
Securities Act or (ii) is not a “U.S. Person” as defined in Regulation S as
promulgated by the Securities and Exchange Commission under the Securities Act,
and, in each case, shall submit to the Company such further assurances of such
status as may be reasonably requested by the Company.

     

    g.           The
Subscriber, if a non-U.S. Person, agrees that it is acquiring the Securities in
an offshore transaction pursuant to Regulation S and hereby represents to the
Company as follows:

     

    (i)           The
Subscriber is outside the United States when receiving and executing this
Agreement;

     

    (ii)          The
Subscriber has not acquired the Securities as a result of, and will not itself
engage in, any “directed selling efforts” (as defined in Regulation S) in the
United States in respect of the Securities which would include any activities
undertaken for the purpose of, or that could reasonably be expected to have the
effect of, conditioning the market in the United States for the resale of the
Securities; provided, however, that the Subscriber may sell or otherwise dispose
of the Securities pursuant to registration of the Securities under the
Securities Act and any applicable state and provincial securities laws or under
an exemption from such registration requirements and as otherwise provided
herein;

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (iii)          The
Subscriber understands and agrees that offers and sales of any of the Securities
prior to the expiration of a period of one year after the date of transfer of
the Securities under this Agreement (the “Distribution
Compliance Period”), shall only be made in compliance with the safe
harbor provisions set forth in Regulation S, pursuant to the registration
provisions of the Securities Act or an exemption therefrom, and that all offers
and sales after the Distribution Compliance Period shall be made only in
compliance with the registration provisions of the Securities Act or an
exemption therefrom, and in each case only in accordance with all applicable
securities laws;

     

    (iv)          The
Subscriber understands and agrees not to engage in any hedging transactions
involving the Securities prior to the end of the Distribution Compliance Period
unless such transactions are in compliance with the Securities Act;
and

     

    (v)          The
Subscriber hereby represents that it has satisfied itself as to the full
observance of the laws of its jurisdiction in connection with any invitation to
subscribe for the Securities or any use of this Agreement, including: (a) the
legal requirements within its jurisdiction for the purchase of the Securities;
(b) any foreign exchange restrictions applicable to such purchase; (c) any
governmental or other consents that may need to be obtained; and (d) the income
tax and other tax consequences, if any, that may be relevant to the purchase,
holding, redemption, sale or transfer of the Securities. Such Subscriber’s
subscription and payment for, and its continued beneficial ownership of the
Securities, will not violate any applicable securities or other laws of the
Subscriber’s jurisdiction.

     

    h.           Subscriber
represents that neither it nor, to its knowledge, any person or entity
controlling, controlled by or under common control with it, nor any person
having a beneficial interest in it, nor any person on whose behalf the
Subscriber is acting: (i) is a person listed in the Annex to Executive Order No.
13224 (2001) issued by the President of the United States (Executive Order
Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten
to Commit, or Support Terrorism); (ii) is named on the List of Specially
Designated Nationals and Blocked Persons maintained by the U.S. Office of
Foreign Assets Control; (iii) is a non-U.S. shell bank or is providing banking
services indirectly to a non-U.S. shell bank; (iv) is a senior non-U.S.
political figure or an immediate family member or close associate of such
figure; or (v) is otherwise prohibited from investing in the Company pursuant to
applicable U.S. anti-money laundering, anti-terrorist and asset control laws,
regulations, rules or orders (categories (i) through (v), each a “Prohibited Subscriber”). The
Subscriber agrees to provide the Company, promptly upon request, all information
that the Company reasonably deems necessary or appropriate to comply with
applicable U.S. anti-money laundering, anti-terrorist and asset control laws,
regulations, rules and orders. The Subscriber consents to the disclosure to U.S.
regulators and law enforcement authorities by the Company and its affiliates and
agents of such information about the Subscriber as the Company reasonably deems
necessary or appropriate to comply with applicable U.S. antimony laundering,
anti-terrorist and asset control laws, regulations, rules and orders. If the
Subscriber is a financial institution that is subject to the USA Patriot Act,
the Subscriber represents that it has met all of its obligations under the USA
Patriot Act. The Subscriber acknowledges that if, following its investment in
the Company, the Company reasonably believes that the Subscriber is a Prohibited
Subscriber or is otherwise engaged in suspicious activity or refuses to promptly
provide information that the Company requests, the Company has the right or may
be obligated to prohibit additional investments, segregate the assets
constituting the investment in accordance with applicable regulations or
immediately require the Subscriber to transfer the Securities.  The
Subscriber further acknowledges that the Subscriber will have no claim against
the Company or any of its affiliates or agents for any form of damages as a
result of any of the foregoing actions.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    i.           The
Subscriber or its duly authorized representative realizes that because of the
inherently speculative nature of businesses of the kind conducted and
contemplated by the Company, the Company’s financial results may be expected to
fluctuate from month to month and from period to period and will, generally,
involve a high degree of financial and market risk that could result in
substantial or, at times, even total losses for investors in securities of the
Company.

     

    j.           The
Subscriber has adequate means of providing for its current and anticipated
financial needs and contingencies, is able to bear the economic risk for an
indefinite period of time and has no need for liquidity of the investment in the
Securities and could afford complete loss of such investment.

     

    k.           The
Subscriber is not subscribing for Securities as a result of or subsequent to any
advertisement, article, notice or other communication, published in any
newspaper, magazine or similar media or broadcast over television, radio, or the
internet, or presented at any seminar or meeting, or any solicitation of a
subscription by a person not previously known to the Subscriber in connection
with investments in securities generally.

     

    l.           All
of the information that the Subscriber has heretofore furnished or which is set
forth herein is correct and complete as of the date of this Agreement, and, if
there should be any material change in such information prior to the admission
of the undersigned to the Company, the Subscriber will immediately furnish
revised or corrected information to the Company.

     

    5.           Transfer
Restrictions.  The Subscriber acknowledges and agrees as
follows:

     

    a.           The
Securities have not been registered for sale under the Securities Act, in
reliance on the private offering exemption in Section 4(2) thereof; the Company
does not intend to register the Securities under the Securities Act at any time
in the future, except to the extent required by Section 17 of this
Agreement.

     

    b.           The
Subscriber understands that the certificates representing the Securities, until
such time as they have been registered under the Securities Act, shall bear a
restrictive legend in substantially the following form (and a stop-transfer
order may be placed against transfer of such certificates or other
instruments):

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    For U.S.
Persons:

    THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS,
AND NEITHER SUCH SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD,
PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT
WITH RESPECT THERETO IS EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS, OR (2) AN EXEMPTION FROM SUCH REGISTRATION EXISTS AND THE
COMPANY RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH
COUNSEL AND OPINION ARE SATISFACTORY TO THE COMPANY, THAT SUCH SECURITIES MAY BE
OFFERED, SOLD, PLEDGED, ASSIGNED OR TRANSFERRED IN THE MANNER CONTEMPLATED
WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE
SECURITIES LAWS.

    

    
      For
Non-U.S. Persons:

    

     

    THESE
SECURITIES WERE ISSUED IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT U.S.
PERSONS (AS DEFINED IN REGULATION S) PURSUANT TO REGULATION S UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”). ACCORDINGLY, NONE OF
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN REGISTERED UNDER THE
1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY
BE OFFERED OR SOLD IN THE UNITED STATES OR, DIRECTLY OR INDIRECTLY, TO U.S.
PERSONS EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT, AND IN EACH CASE ONLY IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING
THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN ACCORDANCE WITH THE 1933
ACT.

     

    The
legend(s) set forth above shall be removed and the Company shall issue a
certificate without such legend to the holder of the Securities upon which it is
stamped, if (a) such Securities are sold pursuant to a registration
statement under the Securities Act, or (b) such holder delivers to the
Company an opinion of counsel, reasonably acceptable to the Company, that a
disposition of the Securities is being made pursuant to an exemption from such
registration and that the Securities, after such transfer, shall no longer be
“restricted securities” within the meaning of Rule 144.

     

    c.           The
Company was, until February 23, 2010, a “shell company” as defined in Rule 12b-2
under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”).  Pursuant to Rule 144(i), securities issued by a current or former
shell company (that is, the Securities) that otherwise meet the holding period
and other requirements of Rule 144 nevertheless cannot be sold in reliance on
Rule 144 until one year after the Company (a) is no longer a shell company; and
(b) has filed current “Form 10 information“ (as defined in Rule 144(i)) with the
SEC reflecting that it is no longer a shell company, and provided that at the
time of a proposed sale pursuant to Rule 144, the Company is subject to the
reporting requirements of section 13 or 15(d) of the Exchange Act and has filed
all reports and other materials required to be filed by section 13 or 15(d) of
the Exchange Act, as applicable, during the preceding 12 months (or for such
shorter period that the issuer was required to file such reports and materials),
other than Form 8-K reports.  As a result, the restrictive legends on
certificates for the Securities cannot be removed except in connection with an
actual sale meeting the foregoing requirements or pursuant to an effective
registration statement.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    d.           No
governmental agency has passed upon the Securities or made any finding or
determination as to the wisdom of any investments therein.

     

    e.           There
are substantial restrictions on the transferability of the Securities, and if
the Company decides to issue certificates representing the Securities,
restrictive legends will be placed on any such certificates.

    

    6.           Indemnification.  The
Subscriber agrees to indemnify and hold harmless the Company, any placement
agents for the Offering, and their respective officers, directors, employees,
agents, control persons and affiliates from and against all losses, liabilities,
claims, damages, costs, fees and expenses whatsoever (including, but not limited
to, any and all expenses incurred in investigating, preparing or defending
against any litigation commenced or threatened) based upon or arising out of any
actual or alleged false acknowledgment, representation or warranty, or
misrepresentation or omission to state a material fact, or breach by the
Subscriber of any covenant or agreement made by the Subscriber herein or in any
other document delivered in connection with this Agreement.

     

    7.           Irrevocability; Binding
Effect.  The Subscriber hereby acknowledges and agrees that the
subscription hereunder is irrevocable by the Subscriber, except as required by
applicable law, and that this Agreement shall survive the death or disability of
the Subscriber and shall be binding upon and inure to the benefit of the parties
and their heirs, executors, administrators, successors, legal representatives
and permitted assigns.  If the Subscriber is more than one person, the
obligations of the Subscriber hereunder shall be joint and several and the
agreements, representations, warranties and acknowledgments herein shall be
deemed to be made by and be binding upon each such person and such person’s
heirs, executors, administrators, successors, legal representatives and
permitted assigns.

    

    8.           Modification.  This
Agreement shall not be modified or waived except by an instrument in writing
signed by the party against whom any such modification or waiver is
sought.

     

    9.           Notices.  Any notice
or other communication required or permitted to be given hereunder shall be in
writing and shall be mailed by certified mail, return receipt requested, or
delivered against receipt to the party to whom it is to be given (a) if to the
Company, at the address set forth above, or (b) if to the Subscriber, at the
address set forth on the signature page hereof (or, in either case, to such
other address as the party shall have furnished to the other in writing in
accordance with the provisions of this Section 10).  Any notice or
other communication given by certified mail shall be deemed given at the time of
certification thereof, except for a notice changing a party’s address which
shall be deemed given at the time of receipt thereof.

    

    10.          Assignability.  This
Agreement and the rights, interests and obligations hereunder are not
transferable or assignable by the Subscriber and the transfer or assignment of
the Securities shall be made only in accordance with all applicable
laws.

    

    11.          Applicable
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without reference to the
principles thereof relating to the conflict of laws.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    12.          Arbitration.  The
parties agree to submit all controversies to arbitration in accordance with the
provisions set forth below and understand that:

    

    (a)           Arbitration
is final and binding on the parties.

    

    (b)           The
parties are waiving their right to seek remedies in court, including the right
to a jury trial.

    

    (c)           Pre-arbitration
discovery is generally more limited and different from court
proceedings.

    

    (d)           The
arbitrator’s award is not required to include factual findings or legal
reasoning and any party’s right to appeal or to seek modification of rulings by
arbitrators is strictly limited.

    

    (e)           The
panel of arbitrators will typically include a minority of arbitrators who were
or are affiliated with the securities industry.

    

    (f)           All
controversies which may arise between the parties concerning this Agreement
shall be determined by arbitration pursuant to the rules then pertaining to the
Financial Industry Regulatory Authority in New York City, New
York.  Judgment on any award of any such arbitration may be entered in
the Supreme Court of the State of New York or in any other court having
jurisdiction of the person or persons against whom such award is
rendered.  Any notice of such arbitration or for the confirmation of
any award in any arbitration shall be sufficient if given in accordance with the
provisions of this Agreement.  The parties agree that the
determination of the arbitrators shall be binding and conclusive upon
them.

    

    13.          Blue Sky
Qualification.  The purchase of Securities under this Agreement
is expressly conditioned upon the exemption from qualification of the offer and
sale of the Securities from applicable federal and state securities
laws.  The Company shall not be required to qualify this transaction
under the securities laws of any jurisdiction and, should qualification be
necessary, the Company shall be released from any and all obligations to
maintain its offer, and may rescind any sale contracted, in the
jurisdiction.

    

    14.          Use of
Pronouns.  All pronouns and any variations thereof used herein
shall be deemed to refer to the masculine, feminine, neuter, singular or plural
as the identity of the person or persons referred to may
require.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    15.          Confidentiality.  The
Subscriber acknowledges and agrees that any information or data the Subscriber
has acquired from or about the Company or may acquire in the future, not
otherwise properly in the public domain, including, without limitation, the
Memorandum, was received in confidence.  The Subscriber agrees not to
divulge, communicate or disclose, except as may be required by law or for the
performance of this Agreement, or use to the detriment of the Company or for the
benefit of any other person, or misuse in any way, any confidential information
of the Company, including any scientific, technical, trade or business secrets
of the Company and any scientific, technical, trade or business materials that
are treated by the Company as confidential or proprietary, including, but not
limited to, internal personnel and financial information of the Company or its
affiliates, information regarding oil and gas properties, the manner and methods
of conducting the business of the Company or its affiliates and confidential
information obtained by or given to the Company about or belonging to third
parties.  The Subscriber understands that the Company may rely on his
agreement of confidentiality to comply with the exemptive provisions of
Regulation FD under the Securities Act of 1933 as set forth in Rule
100(a)(b)(2)(ii) of Regulation FD.  In addition, the Subscriber
acknowledges that he is aware that the United States securities laws generally
prohibit any person who is in possession of material nonpublic information about
a public company such as the Company from purchasing or selling securities of
such company.

    

    16.          Miscellaneous.

    

    (a)           This
Agreement constitutes the entire agreement between the Subscriber and the
Company with respect to the Offering and supersede all prior oral or written
agreements and understandings, if any, relating to the subject matter
hereof.  The terms and provisions of this Agreement may be waived, or
consent for the departure therefrom granted, only by a written document executed
by the party entitled to the benefits of such terms or provisions.

    

    (b)           The
representations and warranties of the Company and the Subscriber made in this
Agreement shall survive the execution and delivery hereof and delivery of the
PPO Units.

    

    (c)           Each
of the parties hereto shall pay its own fees and expenses (including the fees of
any attorneys, accountants, appraisers or others engaged by such party) in
connection with this Agreement and the transactions contemplated hereby, whether
or not the transactions contemplated hereby are consummated.

    

    (d)           This
Agreement may be executed in one or more original or facsimile counterparts,
each of which shall be deemed an original, but all of which shall together
constitute one and the same instrument.

    

    (e)           Each
provision of this Agreement shall be considered separable and, if for any reason
any provision or provisions hereof are determined to be invalid or contrary to
applicable law, such invalidity or illegality shall not impair the operation of
or affect the remaining portions of this Agreement.

    

    (f)           Paragraph
titles are for descriptive purposes only and shall not control or alter the
meaning of this Agreement as set forth in the text.

    

    (g)           The
Subscriber understands and acknowledges that there may be multiple Closings for
the Offering.

    

    (h)           The
Subscriber hereby agrees to furnish the Company such other information as the
Company may request prior to the Closing with respect to its subscription
hereunder.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    17.          “Piggy-Back” Registration
Rights.  If the Company at any time proposes to register any of
its securities under the 1933 Act for sale to the public, whether for its own
account or for the account of other security holders or both, except with
respect to registration statements on Forms S-4, S-8 or another form not
available for registering the Registrable Securities (as defined below) for sale
to the public, provided the Registrable Securities are not otherwise registered
for resale by the Subscribers or Holder pursuant to an effective registration
statement, each such time it will give at least ten (10) days' prior written
notice to the record holder of the Registrable Securities of its intention so to
do. Upon the written request of the holder, received by the Company within ten
(10) days after the giving of any such notice by the Company, to register any of
the Registrable Securities not previously registered, the Company will cause
such Registrable Securities as to which registration shall have been so
requested to be included with the securities to be covered by the registration
statement proposed to be filed by the Company, all to the extent required to
permit the sale or other disposition of the Registrable Securities so registered
by the holder of such Registrable Securities (the “Seller” or “Sellers”);
provided that Seller provides the Company in writing with such information
regarding Seller and Seller’s securities ownership as the Company may reasonably
request in connection with preparing a registration statement. In the event that
any registration pursuant to this Section 17 shall be, in whole or in part, an
underwritten public offering of common stock of the Company, the number of
shares of Registrable Securities to be included in such an underwriting may be
reduced by the managing underwriter if and to the extent that the Company and
the underwriter shall reasonably be of the opinion that such inclusion would
adversely affect the marketing of the securities to be sold by the Company
therein; provided, however, that the Company shall notify the Seller in writing
of any such reduction. Notwithstanding anything to the contrary herein, the
Company may withdraw or delay or suffer a delay of any registration statement
referred to in this Section 17 without thereby incurring any liability to the
Sellers.

     

    “Restricted Securities” means
securities that are neither subject to a registration statement that is
effective under the Securities Act nor immediately saleable into the public
market without volume restrictions (whether pursuant to Rule 144 or other
then-applicable exemption).

     

    “Registrable Securities”
means, for so long as they are Restricted Securities: the shares of Common Stock
included in PPO Units purchased in the Offering; any shares of Common Stock
issued upon exercise of Warrants included in PPO Units purchased in the
Offering; any shares of Common Stock included in Double Units purchased upon
exercise of the Double Option; and any shares of Common Stock issued upon
exercise of Warrants included in Double Units purchased in the upon exercise of
the Double Option.

     

    18.          Public
Disclosure.  Neither the Subscriber nor any officer, manager,
director, member, partner, stockholder, employee, affiliate, affiliated person
or entity of the Subscriber shall make or issue any press releases or otherwise
make any public statements or make any disclosures to any third person or entity
with respect to the transactions contemplated herein and will not make or issue
any press releases or otherwise make any public statements of any nature
whatsoever with respect to the Company without the Company’s express prior
approval.  The Company has the right to withhold such approval in its
sole discretion.

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    How
to subscribe for Units in the private offering of

    Li3
Energy, Inc.:

    

    
      	
              1.

            	
              Date and Fill in the
      number of PPO Units being purchased and Complete and Sign the
      Signature Page.

            

    

    

    
      	
              2.

            	
              Initial the Investor
      Certification.

            

    

    

    
      	
              3.

            	
              Complete and sign the
      Anti-Money Laundering Information
Form.

            

    

    

    
      	
              4.

            	
              Fax or email all forms and
      then send all signed original documents
to:

            

    

    

    Gottbetter
& Partners, LLP

    488
Madison Avenue, 12th Floor

    New York,
NY  10022

    Facsimile
Number:  (212) 400-6901

    Telephone
Number:  (212) 400-6900

    Attn:

    E-mail
Address:

    

    
      	
              5.

            	
              Payment
      of the Purchase Price, you should send a wire transfer for the
      exact dollar amount of the Purchase Price for the number of PPO Units you
      are offering to purchase according to the following
      instructions:

            

    

    

    
      
        	
                Bank:

              	 
      
	 
      	 
      
	
                ABA
      Routing #:

              	 
      
	
                SWIFT
      CODE:

              	 
      
	
                Account
      Name:

              	 
      
	
                Account
      #:

              	 
      
	
                Reference:

              	 
      
	
                G&P
      Contact:

              	 
      

      

    

    

    Thank you
for your interest,

    

    Li3
Energy, Inc.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Li3
ENERGY, INC.

    SIGNATURE
PAGE TO

    SUBSCRIPTION
AGREEMENT

    

    IN
WITNESS WHEREOF, the Subscriber hereby executes this Subscription
Agreement.

     

    Dated:                                                      ,
2010

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        	
                                                                SUBSCRIBER
      (individual)

                                                              	 
      	
                                                                SUBSCRIBER
      (entity)

                                                              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                                                Signature

                                                              	 
      	
                                                                Name
      of Entity

                                                              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                                                Print
      Name

                                                              	 
      	
                                                                Signature

                                                              
	 
      	 
      	 
      
	 
      	 
      	
                                                                Print
      Name:

                                                              	 
      
	
                                                                Signature
      (if Joint Tenants or Tenants in Common)

                                                              	 
      	 
      
	 
      	 
      	      
                                                                Title: 

                                                              	
                                                                 

                                                              
	 
      	 
      	 
      
	
                                                                Address
      of Principal Residence:

                                                              	 
      	
                                                                Address
      of Executive Offices:

                                                              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                                                Social
      Security Number(s):

                                                              	 
      	
                                                                IRS
      Tax Identification Number:

                                                              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                                                Telephone
      Number:

                                                              	 
      	
                                                                Telephone
      Number:

                                                              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                                                Facsimile
      Number:

                                                              	 
      	
                                                                Facsimile
      Number:

                                                              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                                                                E-mail
      Address:

                                                              	 
      	
                                                                E-mail
      Address:

                                                              
	 
      	 
      	 
      

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        
          
            
              	 
      	
                      X

                    	
                      $0.15

                    	
                      =

                    	$ 	
                       

                    	 
      
	
                      Number
      of PPO Units

                    	 
      	
                      Price
      per PPO Unit

                    	 
      	
                      Purchase
      Price

                    	 
      

            

          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Li3
ENERGY, INC.

     

    IN
WITNESS WHEREOF, the Company has duly executed this Subscription Agreement with
respect to ____________ PPO Units as of the ___ day of ________,
2010.

     

    
      
        
          
            	 
      	
                    Li3
      ENERGY, INC.

                  
	 
      	 
      	 
      
	 
      	
                    By:

                  	 
      
	 
      	
                    Name:
      Luis Saenz

                  
	 
      	
                    Title:  
      Chief Executive
Officer

                  

          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Li3 Energy,
Inc.

    

    ANTI-MONEY
LAUNDERING INFORMATION FORM

    (Please
fill out and return with requested documentation.)

    

    The following is required in
accordance with the AML provision of the USA PATRIOT ACT.

    

    
      
        
          
            
              
                	
                        INVESTOR
      NAME:

                      	 
      
	 
      	 
      
	
                        LEGAL
      ADDRESS:

                      	 
      
	 
      	 
      
	 
      	 
      
	
                        SS#
      or TAX ID#

                      
	
                        of
      INVESTOR:

                      	 
      

              

            

          

        

      

    

    

    IDENTIFICATION,
DOCUMENTATION AND SOURCE OF FUNDS:

    

    
      	
              1.

            	
              Please
      submit a copy of a non-expired identification for the authorized
      signatory(ies) on the investment documents, showing name, date of birth
      and signature:

            

    

    

    
      
        	
                Current
      Driver’s License

              	
                or

              	
                Valid
      Passport

              	
                or

              	
                Identity
      Card

              

      

    

    
      (Circle
one or more)

    

    

    
      	
              2.

            	
              If
      the Investor is a corporation, please submit the following corporate
      documents:

            

    

    (i)
Articles of Incorporation (or similar); (ii) Corporate Resolution granting
authority to signatory(ies) and designating that they are permitted to make the
proposed investment.

    

    
      	
              3.

            	
              Please
      advise where the funds were derived from to make the proposed
      investment:

            

    

    

    
      
        	
                Investments

              	
                Savings

              	
                Proceeds
      of Sale

              	
                Other
      ____________

              

      

    

    (Circle
one or more)

    

    
      
        
          
            
              
                	
                        Signature:

                      	 
      
	 
      	 
      
	
                        Print
      Name:

                      	 
      
	 
      	 
      
	
                        Title
      (if applicable):

                      	 
      
	 
      	 
      
	
                        Date:

                      	 
      

              

            

          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      Appendix
A

    

     

    
      Li3
ENERGY, INC.

      INVESTOR
CERTIFICATION

      

      For
Individual Accredited Investors Only

      (all
Individual Accredited Investors must INITIAL where
appropriate):

      

      
        	
                Initial
      _______

              	
                I
      have a net worth (excluding the value of my primary residence) in excess
      of $1,000,000 either individually or through aggregating my individual
      holdings and those in which I have a joint, community property or other
      similar shared ownership interest with my
  spouse.

              

      

      
        	
                Initial
      _______

              	
                I
      have had an annual gross income for the past two years of at least
      $200,000 (or $300,000 jointly with my spouse) and expect my income (or
      joint income, as appropriate) to reach the same level in the current
      year.

              

      

       

      
        For Non-Individual Accredited
Investors

      

      
        (all Non-Individual Accredited
Investors must INITIAL where
appropriate):

      

      

      
        	
                Initial
      _______

              	
                The
      investor certifies that it is a partnership, corporation, limited
      liability company or business trust that is 100% owned by persons who meet
      at least one of the criteria for Individual Investors set forth
      above.

              

      

      
        	
                Initial
      _______

              	
                The
      investor certifies that it is a partnership, corporation, limited
      liability company or business trust that has total assets of at least $5
      million and was not formed for the purpose of investing in the
      Company.

              

      

      
        	
                Initial
      _______

              	
                The
      investor certifies that it is an employee benefit plan whose investment
      decision is made by a plan fiduciary (as defined in ERISA §3(21)) that is
      a bank, savings and loan association, insurance company or registered
      investment adviser.

              

      

      
        	
                Initial
      _______

              	
                The
      investor certifies that it is an employee benefit plan whose total assets
      exceed $5,000,000 as of the date of this
  Agreement.

              

      

      
        	
                Initial
      _______

              	
                The
      undersigned certifies that it is a self-directed employee benefit plan
      whose investment decisions are made solely by persons who meet either of
      the criteria for Individual
Investors.

              

      

      
        	
                Initial
      _______

              	
                The
      investor certifies that it is a U.S. bank, U.S. savings and loan
      association or other similar U.S. institution acting in its individual or
      fiduciary capacity.

              

      

      
        	
                Initial
      _______

              	
                The
      undersigned certifies that it is a broker-dealer registered pursuant to
      §15 of the Securities Exchange Act of
1934.

              

      

      
        	
                Initial
      _______

              	
                The
      investor certifies that it is an organization described in §501(c)(3) of
      the Internal Revenue Code with total assets exceeding $5,000,000 and not
      formed for the specific purpose of investing in the
    Company.

              

      

      
        	
                Initial
      _______

              	
                The
      investor certifies that it is a trust with total assets of at least
      $5,000,000, not formed for the specific purpose of investing in the
      Company, and whose purchase is directed by a person with such knowledge
      and experience in financial and business matters that he is capable of
      evaluating the merits and risks of the prospective
    investment.

              

      

      
        	
                Initial
      _______

              	
                The
      investor certifies that it is a plan established and maintained by a state
      or its political subdivisions, or any agency or instrumentality thereof,
      for the benefit of its employees, and which has total assets in excess of
      $5,000,000.

              

      

      
        	
                Initial
      _______

              	
                The
      investor certifies that it is an insurance company as defined in §2(13) of
      the Securities Act, or a registered investment
  company.

              

      

    
 

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      For
Non-U.S. Person Investors

    

    (all Investors who are not a U.S.
Person must INITIAL this section):

    

    
      	
              Initial
      _______

            	
              The
      Investor is not a “U.S. Person” as defined in Regulation S; and
      specifically the Purchaser is not:

            

    

    

    
      	
               
      

            	
              A.

            	
              a
      natural person resident in the United States of America, including its
      territories and possessions (“United
States”);

            

    

    
      	
               
      

            	
              B.

            	
              a
      partnership or corporation organized or incorporated under the laws of the
      United States;

            

    

    
      	
               
      

            	
              C.

            	
              an
      estate of which any executor or administrator is a U.S.
      Person;

            

    

    
      	
               
      

            	
              D.

            	
              a
      trust of which any trustee is a U.S.
Person;

            

    

    
      	
               
      

            	
              E.

            	
              an
      agency or branch of a foreign entity located in the United
      States;

            

    

    
      	
               
      

            	
              F.

            	
              a
      non-discretionary account or similar account (other than an estate or
      trust) held by a dealer or other fiduciary for the benefit or account of a
      U.S. Person;

            

    

    
      	
               
      

            	
              G.

            	
              a
      discretionary account or similar account (other than an estate or trust)
      held by a dealer or other fiduciary organized, incorporated, or (if an
      individual) resident in the United States;
or

            

    

    
      	
               
      

            	
              H.

            	
              a
      partnership or corporation: (i) organized or incorporated under the laws
      of any foreign jurisdiction; and (ii) formed by a U.S. Person principally
      for the purpose of investing in securities not registered under the
      Securities Act, unless it is organized or incorporated, and owned, by
      accredited investors (as defined in Rule 501(a) under the Act) who are not
      natural persons, estates or trusts.

            

    

    

    
      And, in
addition:

    

    

    
      	
               
      

            	
              I.

            	
              the
      Purchaser was not offered the PPO Units in the United
    States;

            

    

    
      	
               
      

            	
              J.

            	
              at
      the time the buy-order for the PPO Units was originated, the Purchaser was
      outside the United States; and

            

    

    
      	
               
      

            	
              K.

            	
              the
      Purchaser is purchasing the PPO Units for its own account and not on
      behalf of any U.S. Person (as defined in Regulation S) and a sale of the
      PPO Units has not been pre-arranged with a purchaser in the United
      States.

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