Document:

Class A warrant issued to RAB Special Situations (Master ) Fund Limited

 Exhibit 10.5 
 EMPIRE ENERGY CORPORATION INTERNATIONAL 
 WARRANT TO PURCHASE SHARES 
 OF COMMON STOCK OF 
 EMPIRE ENERGY
CORPORATION INTERNATIONAL 
 Class A Warrant Certificate Number: WA-1 
 Issue Date: March 14, 2006 
 Class A Warrant to Purchase

 8,550,000 Shares of Common Stock 
 THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED
ONLY PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT OR (I) TO THE COMPANY, (II) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE 1933 ACT, (III) IN COMPLIANCE WITH THE EXEMPTION FROM
REGISTRATION UNDER THE 1933 ACT PROVIDED BY RULE 144 THEREUNDER, IF AVAILABLE, OR (IV) IN COMPLIANCE WITH ANOTHER EXEMPTION FROM REGISTRATION, IN EACH CASE AFTER PROVIDING AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE COMPANY THAT SUCH
TRANSFER MAY BE MADE WITHOUT REGISTRATION UNDER THE 1933 ACT. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. 
 FOR VALUE RECEIVED, Empire Energy Corporation International, a Nevada corporation (the “Company”), hereby certifies that
RAB Special Situation (Master) Fund Limited, its successor or permitted assigns (the “Holder”), is entitled, subject to the provisions of this Warrant, to purchase from the Company, at the times specified herein, 8,550,000
fully paid and non-assessable shares of Common Stock of the Company, par value $.001 per share (the “Common Stock”), at a purchase price per share equal to the Exercise Price (as hereinafter defined). 
 Notwithstanding anything contained herein to the contrary, the Warrant represented by this certificate shall not be exercisable by the Holder, in whole or in part, and
the Company shall not give effect to any such exercise of the Warrant, if, after giving effect to such exercise, the Holder, together with any Affiliate of the Holder (including any person or company acting jointly or in concert with the Holder)
(the “Joint Actors”) would in the aggregate beneficially own, or exercise control or direction over that number of voting securities of the Company which is 9.99% or greater of the total issued and outstanding voting securities of the
Company, immediately after giving effect to such exercise; provided, however, that upon a holder of this Warrant providing the Company with sixty-one (61) days notice (the “Waiver Notice”) that such Holder would
like to waive this paragraph with regard to any or all shares of Common Stock issuable upon exercise of this Warrant, this paragraph will be of no force or effect with regard to all or a portion of the Warrant referenced in the Waiver Notice. For
the purposes of this paragraph, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended. 
 1. Definitions. (a) The following terms, as used herein, have the following meanings: 
 “Affiliate” shall have the meaning given to such term in Rule 12b-2 promulgated under the Securities and Exchange Act of 1934, as amended. 
  

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 “Business Day” means any day except a Saturday, Sunday or other day on which commercial
banks in the City of Lenexa, Kansas are authorized by law to close. 
 “Common Stock” means the Common Stock, par value
$.001 per share, of the Company. 
 “Duly Endorsed” means duly endorsed in blank by the Person or Persons in whose name a
stock certificate is registered or accompanied by a duly executed stock assignment separate from the certificate with the signature(s) thereon guaranteed by a commercial bank or trust company or a member of a national securities exchange or of the
National Association of Securities Dealers, Inc. 
 “Exercise Date” means the date a Warrant Exercise Notice is delivered to
the Company in the manner provided in Section 8 below. 
 “Exercise Price” means $0.13. 
 “Expiration Date” means 5:00 p.m. (Lenexa, Kansas) on March 14, 2009 (third anniversary of the Issue Date); provided that if such
date shall in the City of Lenexa, Kansas be a holiday or a day on which banks are authorized to close, then 5:00 p.m. on the next following day which in the city of Lenexa, Kansas is not a holiday or a day on which banks are authorized to close.

 “Fair Market Value” means as to any security, the average closing prices of such security’s sales on the Principal
Market for the day as of which “Fair Market Value” is being determined, or, if there have been no sales on any such exchanges on any day, the average of the highest bid and lowest asked prices on all such exchanges at the end of such day.
If the Common Stock is not listed or admitted to unlisted trade privileges and bid and asked prices are not so reported, the Fair Market Value shall be determined in such reasonable manner as may be prescribed by the Board of Directors of the
Company. 
 “Person” means an individual, partnership, corporation, trust, joint stock company, association, joint venture,
or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
 “Principal Market” means the National Association of Securities Dealers electronic over-the-counter bulletin board (“OTCBB”), or if not quoted on the OTCBB, the primary securities exchanges or market on which such
security may at the time be listed or quoted for trading. 
 “Warrant Shares” means the shares of Common Stock deliverable
upon exercise of this Warrant, as adjusted from time to time. 
 2. Exercise of Warrant. 
 (a) The Holder is entitled to exercise this Warrant in whole or in part at any time on until the Expiration Date. To exercise this
Warrant, the Holder shall execute and deliver to the Company a Warrant Exercise Notice substantially in the form annexed hereto. No earlier than five (5) days after delivery of the Warrant Exercise Notice, the Holder shall deliver to the
Company this Warrant Certificate, including the Warrant Exercise Subscription Form forming a part hereof duly executed by the Holder, together with payment of the applicable Exercise Price. Upon such delivery and payment, the Holder shall be deemed
to be the holder of record of the Warrant Shares subject to such exercise, notwithstanding that the stock transfer books of the Company shall then be closed or that certificates representing such Warrant Shares shall not then be actually delivered
to the Holder. 
  

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 (b) The Exercise Price may be paid to the Company in cash or by certified or official
bank check or bank cashier’s check payable to the order of the Company, or by wire transfer or by any combination of cash, check or wire transfer. 
 (c) If the Holder exercises this Warrant in part, this Warrant Certificate shall be surrendered by the Holder to the Company and a new Warrant Certificate of the same tenor and for the unexercised number of Warrant
Shares shall be executed by the Company. The Company shall register the new Warrant Certificate in the name of the Holder or in such name or names of its transferee pursuant to paragraph 5 hereof as may be directed in writing by the Holder and
deliver the new Warrant Certificate to the Person or Persons entitled to receive the same. 
 (d) Upon surrender of this
Warrant Certificate in conformity with the foregoing provisions, the Company shall transfer to the Holder of this Warrant Certificate appropriate evidence of ownership of the shares of Preferred Stock or other securities or property to which the
Holder is entitled, registered or otherwise placed in, or payable to the order of, the name or names of the Holder or such transferee as may be directed in writing by the Holder, and shall deliver such evidence of ownership and any other securities
or property to the Person or Persons entitled to receive the same. 
 3. Restrictive Legend. Certificates representing shares of
Common Stock issued pursuant to this Warrant shall bear a legend substantially in the form of the legend set forth on the first page of this Warrant Certificate to the extent that and for so long as such legend is required pursuant to applicable
law. 
 4. Covenants of the Company. 
 (a) The Company hereby agrees that at all times there shall be reserved for issuance and delivery upon exercise of this Warrant such number of its authorized but unissued shares of Common Stock or other securities of
the Company from time to time issuable upon exercise of this Warrant as will be sufficient to permit the exercise in full of this Warrant. All such shares shall be duly authorized and, when issued upon such exercise, shall be validly issued, fully
paid and non-assessable, free and clear of all liens, security interests, charges and other encumbrances or restrictions on sale and free and clear of all preemptive rights. 
 (b) The Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder against impairment. Without limiting the generality of the foregoing, the Company will
(i) not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as
may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant, and (iii) use its best efforts to obtain all such authorizations,
exemptions or consents from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant. 
 (d) Before taking any action which would cause an adjustment reducing the current Exercise Price below the then par value, if any, of the
shares of Common Stock issuable upon exercise of the Warrants, the Company shall take any corporate action which may be 

  

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necessary in order that the Company may validly and legally issue fully paid and non-assessable shares of such Common Stock at such adjusted Exercise Price.

 (e) Before taking any action which would result in an adjustment in the number of shares of Common Stock for which this
Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof. 
 (f) The Company covenants that during the period the Warrant is outstanding, it will use its best efforts to comply with any and all
reporting obligations under the Securities Exchange Act of 1934, as amended. 
 (g) The Company will take all such reasonable
action as may be necessary (i) to maintain a Principal Market for its Common Shares in the United States and (ii) to assure that such Warrant Stock may be issued as provided herein without violation of any applicable law or regulation, or
of any requirements of the Principal Market upon which the Common Stock may be listed. 
 (h) The Company shall preserve and
maintain its corporate existence and all licenses and permits that are material to the proper conduct of its business and it shall refrain from changing its name. 
 (i) The Company will not close its shareholder books or records in any manner which prevents the timely exercise of this Warrant.

 5. Exchange, Transfer or Assignment of Warrant; Registration 
 (a) Each taker and holder of this Warrant Certificate by taking or holding the same, consents and agrees that the registered holder hereof
may be treated by the Company and all other persons dealing with this Warrant Certificate as the absolute owner hereof for any purpose and as the person entitled to exercise the rights represented hereby. 
 (b) The Holder agrees that it will not transfer, hypothecate, sell, assign, pledge or encumber any Warrants or Warrant Shares unless such
securities are registered under the Securities Act of 1933, as amended (the “1933 Act”) and registered or qualified under any applicable state securities laws or such transfer is effected pursuant to an available exemption from
registration. 
 (c) The Holder of this Warrant has been granted certain registration rights by the Company. The registration
rights are set forth in that certain Subscription Agreement between the Company and the Holder dated as of the issue date of this Warrant. The terms of the Subscription Agreement are incorporated herein by this reference. 
 6. Anti-Dilution Provisions. The Exercise Price in effect at any time and the number and kind of securities purchasable upon the exercise of the
Warrant shall be subject to adjustment from time to time upon the happening of certain events as follows: 
 (a) In case the
Company shall (i) declare a dividend or make a distribution on its outstanding shares of Common Stock in shares of Common Stock, (ii) subdivide or reclassify its outstanding shares of Common Stock into a greater number of shares, or
(iii) combine or reclassify its outstanding shares of Common Stock into a smaller number of shares, the number of Warrant Shares shall be proportionately adjusted to reflect such dividend, distribution, subdivision, reclassification or
combination. For example, if the Company declares a 2 for 1 stock split and the 

  

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number of Warrant Shares immediately prior to such event was 200,000, the number of Warrant Shares immediately after such event would be 400,000. Such
adjustment shall be made successively whenever any event listed above shall occur. 
 (b) Whenever the number of Warrant
Shares is adjusted pursuant to Subsection (a) above, the Exercise Price shall simultaneously be adjusted by multiplying the Exercise Price immediately prior to such event by the number of Warrant Shares immediately prior to such event and
dividing the product so obtained by the number of Warrant Shares, as adjusted. If an Exercise Price has not yet been established, an adjustment thereof shall be deferred until one is established pursuant to the terms of this Warrant. 
 (c) No adjustment in the Exercise Price shall be required unless such adjustment would require an increase or decrease of at least five
percent (5%) in such price; provided, however, that any adjustments which by reason of this Subsection (c) are not required to be made shall be carried forward and taken into account in any subsequent adjustment required to be made
hereunder. All calculations under this Section 6 shall be made to the nearest cent or to the nearest one-hundredth of a share, as the case may be. 
 (d) If and whenever the Company shall (i) issue or sell any shares of its common stock for a consideration per share less than the warrant exercise price in effect immediately prior to the time of such issuance
or sale, (ii) issue or sell any warrants, options or other rights to acquire shares of its common stock at a purchase price less than the warrant purchase price in effect immediately prior to the time of such issuance or sale or
(iii) issue or sell any other securities that are convertible into shares of its common stock for a purchase or exchange price less than the warrant exercise price in effect immediately prior to the time of such issuance or sale (except for
(A) the issuance or sale of up to 5,000,000 shares of the Company’s common stock pursuant to the exercise of employee stock options that may be granted pursuant to employee stock option plans adopted by the Company’s Board of
Directors as of the date of this warrant and (B) the issuance or sale of shares of the Company’s common stock pursuant to warrants, options or other convertible securities outstanding on the issuance date of this Warrant)(a “Dilutive
Issuance”) then, upon such issuance or sale, the warrant exercise price shall be reduced to the “weighted average price” at which such shares of common stock are being issued or sold by the Company or the price at which such other
securities are exercisable or convertible into shares of the Company’s common stock. For the purposes of this Section 6(d), the “weighted average price” shall be calculated as follows: (I) the total consideration paid for or
payable for shares of common stock of the Company (including the conversion or exercise consideration payable upon conversion or exercise of common stock equivalents or derivatives) divided by (II) the total number of shares of common stock of the
Company issued or issuable in connection with the Dilutive Issuance (including shares of common stock issuable upon conversion or exercise of common stock equivalents or derivatives). 
 (e) Whenever the Exercise Price is adjusted, as herein provided, the Company shall promptly cause a notice setting forth the adjusted
Exercise Price and adjusted number of Shares issuable upon exercise of each Warrant to be mailed to the Holder. The Company may retain a firm of independent certified public accountants selected by the Board of Directors (who may be the regular
accountants employed by the Company) to make any computation required by this Section 6, and a certificate signed by such firm shall be conclusive evidence of the correctness of such adjustment. 
 (f) In the event that at any time, as a result of an adjustment made pursuant to Subsection (a) above, the Holder of this Warrant
thereafter shall become entitled to receive any shares of the Company, other than Common Stock, thereafter the number of such other shares so receivable upon exercise of this Warrant shall be subject to adjustment from time to time in a manner

  

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and on terms as nearly equivalent as practicable to the provisions with respect to the Common Stock contained in Subsection (a), above. 
 (g) Irrespective of any adjustments in the Exercise Price or the number or kind of shares purchasable upon exercise of this Warrant,
Warrants theretofore or thereafter issued may continue to express the same price and number and kind of shares as are stated in this Warrant. 
 (h) In case at any time or from time to time conditions arise by reasons of action taken by the Company, which in the reasonable opinion of its Board of Directors, are not adequately covered by the provisions of
Section 6 hereof, and which might materially and adversely affect the exercise rights of the Holder hereof, the Board of Directors shall appoint a firm of independent certified public accountants, which may be the firm regularly retained by the
Company, which will give their opinion upon the adjustment, if any, on a basis consistent with the standards established in the other provisions of Section 6 necessary with respect to the Exercise Price then in effect and the number of shares
of Common Stock for which the Warrant is exercisable, so as to preserve, without dilution, the exercise rights of the Holder. Upon receipt of such opinion, the Board of Directors shall forthwith make the adjustments described therein. 
 7. Loss or Destruction of Warrant. Upon receipt by the Company of evidence satisfactory to it (in the exercise of its reasonable discretion) of
the loss, theft, destruction or mutilation of this Warrant Certificate, and (in the case of loss, theft or destruction) of reasonably satisfactory indemnification, and upon surrender and cancellation of this Warrant Certificate, if mutilated, the
Company shall execute and deliver a new Warrant Certificate of like tenor and date. 
 8. Notices. Any notice, demand or delivery
authorized by this Warrant Certificate shall be in writing and shall be given to the Holder or the Company, as the case may be, at its address (or telecopier number) set forth below, or such other address (or telecopier number) as shall have been
furnished to the party giving or making such notice, demand or delivery: 
  

			
	 If to the Company:
	    	 Empire Energy Corporation International
 16801 West 116th Street, Suite 100
 Lenexa, Kansas 66219
 Fax:
(913) 469-1662
 Attention: President

		
		    	with a copy to:
		
		    	 Ballard Spahr Andrews & Ingersoll, LLP
 1225 17th Street, Suite 2300
 Denver, CO 80202
 Attn: Roger V.
Davidson, Esq.
 Fax (303) 296-3956

		
		    	If to the Holder: RAB Special Situations (Master) Fund Limited
		
		    	 RAB Special Situations (Master) Fund Limited
 c/o RAB Capital Limited
 No. 1 Adam Street
 London W2CN 6LE

  

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		    	 United Kingdom
 Fax: 44-20-7389-7050

		
		    	 with a copy to:

		
		    	 DORSEY & WHITNEY LLP
 370 Seventeenth St., Suite 4700
 Denver, CO 80202
 Fax: (303) 629-3450
 Attention:
Kenneth Sam

 Each such notice, demand or delivery shall be effective (i) if given by telecopy, when such telecopy is
transmitted to the telecopy number specified herein and the intended recipient confirms the receipt of such telecopy or (ii) if given by any other means, when received at the address specified herein. 
 9. Rights of the Holder. Prior to the exercise of any Warrant, the Holder shall not, by virtue hereof, be entitled to any rights of a shareholder
of the Company, including, without limitation, the right to vote, to receive dividends or other distributions, to exercise any preemptive right or any notice of any proceedings of the Company except as may be specifically provided for herein.

 10. GOVERNING LAW. THIS WARRANT CERTIFICATE AND ALL RIGHTS ARISING HEREUNDER SHALL BE CONSTRUED AND DETERMINED IN ACCORDANCE WITH
THE INTERNAL LAWS OF THE STATE OF DELAWARE, AND THE PERFORMANCE THEREOF SHALL BE GOVERNED AND ENFORCED IN ACCORDANCE WITH SUCH LAWS. 
 11.
Amendments; Waivers. Any provision of this Warrant Certificate may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by the Holder and the Company, or in the case of a
waiver, by the party against whom the waiver is to be effective. No failure or delay by either party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude
any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. 
 12. Company Reorganization. In the event of any sale of substantially all the assets of the Company or any reorganization, reclassification,
merger or consolidation of the Company where the Company is not the surviving entity, then as a condition to the Company entering into such transaction, the entity acquiring such assets or the surviving entity, as the case may be, shall agree to
assume the Company’s obligations hereunder. 
 IN WITNESS WHEREOF, the Company has duly caused this Warrant to be signed by its duly
authorized officer and to be dated as of March 14, 2006. 
  

			
	EMPIRE ENERGY CORPORATION INTERNATIONAL
		
	By:	 	/s/ Malcolm Bendall
	Name/Title:	 	Malcolm Bendall
		 	President and Chief Executive Officer

  

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 WARRANT EXERCISE NOTICE 
 (To be delivered prior to exercise of the Warrant 
 by execution of the Warrant Exercise
Subscription Form) 
  

	To:	Empire Energy Corporation International 

 The undersigned
hereby notifies you of its intention to exercise the Warrant to purchase shares of Common Stock, par value $.001 per share, of Empire Energy Corporation International The undersigned intends to exercise the Warrant to purchase
                     shares (the “Shares”) at
$             per Share (the Exercise Price currently in effect pursuant to the Warrant). The undersigned elects to pay the aggregate Exercise Price for the Shares in cash, certified
or official bank or bank cashier’s check (or a combination of cash and check) as indicated below. 
  

	Date:	                     

  

	
	
	   
	(Signature of Owner)

  

			
	 Subscriber Information
	  	 Registration
Information

		  	Registration of the certificates representing the Common Shares should be made exactly as follows (if space is insufficient, attach a list):
		
	Name of Purchaser:	  	
		
	Street Address:	  	
		
	City and State:	  	
		
	Postal/Zip Code:	  	
		
	Contact Name:	  	
		
	Phone No.:	  	
		
	Fax No:	  	

 Payment: $             cash
$             check 
  

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 WARRANT EXERCISE SUBSCRIPTION FORM 
 (To be executed only upon exercise of the Warrant 
 after deliver of Warrant Exercise
Notice) 
  

	To:	Empire Energy Corporation International 

 The undersigned
irrevocably exercises the Warrant for the purchase of                      shares (the “Shares”) of Common Stock, par value
$.0001 per share, of Empire Energy Corporation International (the “Company”) at $             per Share (the Exercise Price currently in effect pursuant to the
Warrant). The undersigned herewith makes payment of $             (such payment being made in cash or by certified or official bank or bank cashier’s check payable to the order
of the Company or by any permitted combination of such cash or check), all on the terms and conditions specified in the within Warrant Certificate, surrenders this Warrant Certificate and all right, title and interest therein to the Company and
directs that the Shares deliverable upon the exercise of this Warrant be registered or placed in the name and at the address specified below and delivered thereto. 
 Date:
                                        

  

	
	
	   
	 (Signature of Owner)

	
	  
	
	 (Street Address)

	  
	 (City)                                (State)     
           (ZipCode)

  

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 WARRANT ASSIGNMENT FORM 
 Dated                    ,        

 FOR VALUE RECEIVED,
                                        
hereby sells, assigns and transfers unto_____________________________(the “Assignee”), 
 (please type or print in block
letters) 
  

 (insert address)

 its right to purchase up to shares of Common Stock represented by this Warrant and does hereby irrevocably constitute and appoint
                                        
Attorney, to transfer the same on the books of the Company, with full power of substitution in the premises. 
  

	
	 Signature:__________________________________

  

 10Class B warrant issued to RAB Special Situations (Master) Fund Limited

 Exhibit 10.6 
 EMPIRE ENERGY CORPORATION INTERNATIONAL 
 WARRANT TO PURCHASE SHARES 
 OF COMMON STOCK OF 
 EMPIRE ENERGY
CORPORATION INTERNATIONAL 
 Class B Warrant Certificate Number: WB-1 
 Issue Date: March 14, 2006 
 Warrant to Purchase 
 5,000,000 Shares of Common Stock 
 THESE SECURITIES
HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE 1933 ACT OR (I) TO THE COMPANY, (II) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE 1933 ACT, (III) IN COMPLIANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE 1933 ACT PROVIDED
BY RULE 144 THEREUNDER, IF AVAILABLE, OR (IV) IN COMPLIANCE WITH ANOTHER EXEMPTION FROM REGISTRATION, IN EACH CASE AFTER PROVIDING AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE COMPANY THAT SUCH TRANSFER MAY BE MADE WITHOUT
REGISTRATION UNDER THE 1933 ACT. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. 
 FOR VALUE RECEIVED, Empire Energy Corporation International, a Nevada corporation (the “Company”), hereby certifies that RAB Special Situation (Master) Fund Limited, its successor or permitted assigns (the
“Holder”), is entitled, subject to the provisions of this Warrant, to purchase from the Company, at the times specified herein, 5,000,000 fully paid and non-assessable shares of Common Stock of the Company, par value $.001
per share (the “Common Stock”), at a purchase price per share equal to the Exercise Price (as hereinafter defined). 
 Notwithstanding
anything contained herein to the contrary, the Warrant represented by this certificate shall not be exercisable by the Holder, in whole or in part, and the Company shall not give effect to any such exercise of the Warrant, if, after giving effect to
such exercise, the Holder, together with any Affiliate of the Holder (including any person or company acting jointly or in concert with the Holder) (the “Joint Actors”) would in the aggregate beneficially own, or exercise control or
direction over that number of voting securities of the Company which is 9.99% or greater of the total issued and outstanding voting securities of the Company, immediately after giving effect to such exercise; provided, however, that
upon a holder of this Warrant providing the Company with sixty-one (61) days notice (the “Waiver Notice”) that such Holder would like to waive this paragraph with regard to any or all shares of Common Stock issuable upon
exercise of this Warrant, this paragraph will be of no force or effect with regard to all or a portion of the Warrant referenced in the Waiver Notice. For the purposes of this paragraph, beneficial ownership shall be determined in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended. 
 1. Definitions. (a) The following
terms, as used herein, have the following meanings: 
 “Affiliate” shall have the meaning given to such term in Rule 12b-2
promulgated under the Securities and Exchange Act of 1934, as amended. 
  

 1 

 “Business Day” means any day except a Saturday, Sunday or other day on which commercial
banks in the City of Lenexa, Kansas are authorized by law to close. 
 “Common Stock” means the Common Stock, par value
$.001 per share, of the Company. 
 “Duly Endorsed” means duly endorsed in blank by the Person or Persons in whose name a
stock certificate is registered or accompanied by a duly executed stock assignment separate from the certificate with the signature(s) thereon guaranteed by a commercial bank or trust company or a member of a national securities exchange or of the
National Association of Securities Dealers, Inc. 
 “Exercise Date” means the date a Warrant Exercise Notice is delivered to
the Company in the manner provided in Section 8 below. 
 “Exercise Price” means $0.18. 
 “Expiration Date” means 5:00 p.m. (Lenexa, Kansas) on March 14, 2009 (third anniversary of the Issue Date); provided that if such
date shall in the City of Lenexa, Kansas be a holiday or a day on which banks are authorized to close, then 5:00 p.m. on the next following day which in the city of Lenexa, Kansas is not a holiday or a day on which banks are authorized to close.

 “Fair Market Value” means as to any security, the average closing prices of such security’s sales on the Principal
Market for the day as of which “Fair Market Value” is being determined, or, if there have been no sales on any such exchanges on any day, the average of the highest bid and lowest asked prices on all such exchanges at the end of such day.
If the Common Stock is not listed or admitted to unlisted trade privileges and bid and asked prices are not so reported, the Fair Market Value shall be determined in such reasonable manner as may be prescribed by the Board of Directors of the
Company. 
 “Person” means an individual, partnership, corporation, trust, joint stock company, association, joint venture,
or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
 “Principal Market” means the National Association of Securities Dealers electronic over-the-counter bulletin board (“OTCBB”), or if not quoted on the OTCBB, the primary securities exchanges or market on which such
security may at the time be listed or quoted for trading. 
 “Warrant Shares” means the shares of Common Stock deliverable
upon exercise of this Warrant, as adjusted from time to time. 
 2. Exercise of Warrant. 
 (a) The Holder is entitled to exercise this Warrant in whole or in part at any time on until the Expiration Date. To exercise this
Warrant, the Holder shall execute and deliver to the Company a Warrant Exercise Notice substantially in the form annexed hereto. No earlier than five (5) days after delivery of the Warrant Exercise Notice, the Holder shall deliver to the
Company this Warrant Certificate, including the Warrant Exercise Subscription Form forming a part hereof duly executed by the Holder, together with payment of the applicable Exercise Price. Upon such delivery and payment, the Holder shall be deemed
to be the holder of record of the Warrant Shares subject to such exercise, notwithstanding that the stock transfer books of the Company shall then be closed or that certificates representing such Warrant Shares shall not then be actually delivered
to the Holder. 
  

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 (b) The Exercise Price may be paid to the Company in cash or by certified or official
bank check or bank cashier’s check payable to the order of the Company, or by wire transfer or by any combination of cash, check or wire transfer. 
 (c) If the Holder exercises this Warrant in part, this Warrant Certificate shall be surrendered by the Holder to the Company and a new Warrant Certificate of the same tenor and for the unexercised number of Warrant
Shares shall be executed by the Company. The Company shall register the new Warrant Certificate in the name of the Holder or in such name or names of its transferee pursuant to paragraph 5 hereof as may be directed in writing by the Holder and
deliver the new Warrant Certificate to the Person or Persons entitled to receive the same. 
 (d) Upon surrender of this
Warrant Certificate in conformity with the foregoing provisions, the Company shall transfer to the Holder of this Warrant Certificate appropriate evidence of ownership of the shares of Preferred Stock or other securities or property to which the
Holder is entitled, registered or otherwise placed in, or payable to the order of, the name or names of the Holder or such transferee as may be directed in writing by the Holder, and shall deliver such evidence of ownership and any other securities
or property to the Person or Persons entitled to receive the same. 
 3. Restrictive Legend. Certificates representing shares of
Common Stock issued pursuant to this Warrant shall bear a legend substantially in the form of the legend set forth on the first page of this Warrant Certificate to the extent that and for so long as such legend is required pursuant to applicable
law. 
 4. Covenants of the Company. 
 (a) The Company hereby agrees that at all times there shall be reserved for issuance and delivery upon exercise of this Warrant such number of its authorized but unissued shares of Common Stock or other securities of
the Company from time to time issuable upon exercise of this Warrant as will be sufficient to permit the exercise in full of this Warrant. All such shares shall be duly authorized and, when issued upon such exercise, shall be validly issued, fully
paid and non-assessable, free and clear of all liens, security interests, charges and other encumbrances or restrictions on sale and free and clear of all preemptive rights. 
 (b) The Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in
good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder against impairment. Without limiting the generality of the foregoing, the Company will
(i) not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as
may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant, and (iii) use its best efforts to obtain all such authorizations,
exemptions or consents from any public regulatory body having jurisdiction thereof as may be necessary to enable the Company to perform its obligations under this Warrant. 
 (d) Before taking any action which would cause an adjustment reducing the current Exercise Price below the then par value, if any, of the
shares of Common Stock issuable upon exercise of the Warrants, the Company shall take any corporate action which may be 

  

 3 

 
necessary in order that the Company may validly and legally issue fully paid and non-assessable shares of such Common Stock at such adjusted Exercise Price.

 (e) Before taking any action which would result in an adjustment in the number of shares of Common Stock for which this
Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof. 
 (f) The Company covenants that during the period the Warrant is outstanding, it will use its best efforts to comply with any and all
reporting obligations under the Securities Exchange Act of 1934, as amended. 
 (g) The Company will take all such reasonable
action as may be necessary (i) to maintain a Principal Market for its Common Shares in the United States and (ii) to assure that such Warrant Stock may be issued as provided herein without violation of any applicable law or regulation, or
of any requirements of the Principal Market upon which the Common Stock may be listed. 
 (h) The Company shall preserve and
maintain its corporate existence and all licenses and permits that are material to the proper conduct of its business and it shall refrain from changing its name. 
 (i) The Company will not close its shareholder books or records in any manner which prevents the timely exercise of this Warrant.

 5. Exchange, Transfer or Assignment of Warrant; Registration 
 (a) Each taker and holder of this Warrant Certificate by taking or holding the same, consents and agrees that the registered holder hereof
may be treated by the Company and all other persons dealing with this Warrant Certificate as the absolute owner hereof for any purpose and as the person entitled to exercise the rights represented hereby. 
 (b) The Holder agrees that it will not transfer, hypothecate, sell, assign, pledge or encumber any Warrants or Warrant Shares unless such
securities are registered under the Securities Act of 1933, as amended (the “1933 Act”) and registered or qualified under any applicable state securities laws or such transfer is effected pursuant to an available exemption from
registration. 
 (c) The Holder of this Warrant has been granted certain registration rights by the Company. The registration
rights are set forth in that certain Subscription Agreement between the Company and the Holder dated as of the issue date of this Warrant. The terms of the Subscription Agreement are incorporated herein by this reference. 
 6. Anti-Dilution Provisions. The Exercise Price in effect at any time and the number and kind of securities purchasable upon the exercise of the
Warrant shall be subject to adjustment from time to time upon the happening of certain events as follows: 
 (a) In case the
Company shall (i) declare a dividend or make a distribution on its outstanding shares of Common Stock in shares of Common Stock, (ii) subdivide or reclassify its outstanding shares of Common Stock into a greater number of shares, or
(iii) combine or reclassify its outstanding shares of Common Stock into a smaller number of shares, the number of Warrant Shares shall be proportionately adjusted to reflect such dividend, distribution, subdivision, reclassification or
combination. For example, if the Company declares a 2 for 1 stock split and the 

  

 4 

 
number of Warrant Shares immediately prior to such event was 200,000, the number of Warrant Shares immediately after such event would be 400,000. Such
adjustment shall be made successively whenever any event listed above shall occur. 
 (b) Whenever the number of Warrant
Shares is adjusted pursuant to Subsection (a) above, the Exercise Price shall simultaneously be adjusted by multiplying the Exercise Price immediately prior to such event by the number of Warrant Shares immediately prior to such event and
dividing the product so obtained by the number of Warrant Shares, as adjusted. If an Exercise Price has not yet been established, an adjustment thereof shall be deferred until one is established pursuant to the terms of this Warrant. 
 (b) No adjustment in the Exercise Price shall be required unless such adjustment would require an increase or decrease of at least five
percent (5%) in such price; provided, however, that any adjustments which by reason of this Subsection (c) are not required to be made shall be carried forward and taken into account in any subsequent adjustment required to be made
hereunder. All calculations under this Section 6 shall be made to the nearest cent or to the nearest one-hundredth of a share, as the case may be. 
 (d) If and whenever the Company shall (i) issue or sell any shares of its common stock for a consideration per share less than the warrant exercise price in effect immediately prior to the time of such issuance
or sale, (ii) issue or sell any warrants, options or other rights to acquire shares of its common stock at a purchase price less than the warrant purchase price in effect immediately prior to the time of such issuance or sale or
(iii) issue or sell any other securities that are convertible into shares of its common stock for a purchase or exchange price less than the warrant exercise price in effect immediately prior to the time of such issuance or sale (except for
(a) the issuance or sale of up to 5,000,000 shares of the Company’s common stock pursuant to the exercise of employee stock options that may be granted pursuant to employee stock option plans adopted by the Company’s Board of
Directors as of the date of this warrant and (b) the issuance or sale of shares of the Company’s common stock pursuant to warrants, options or other convertible securities outstanding on the issuance date of this Warrant) (a “Dilutive
Issuance”) then, upon such issuance or sale, the warrant exercise price shall be reduced to the “weighted average price” at which such shares of common stock are being issued or sold by the Company or the price at which such
other securities are exercisable or convertible into shares of the Company’s common stock. For the purposes of this Section 6(d), the “weighted average price” shall be calculated as follows: (A) the total
consideration paid for or payable for shares of common stock of the Company (including the conversion or exercise consideration payable upon conversion or exercise of common stock equivalents or derivatives) divided by (B) the total number of
shares of common stock of the Company issued or issuable in connection with the Dilutive Issuance (including shares of common stock issuable upon conversion or exercise of common stock equivalents or derivatives). 
 (e) Whenever the Exercise Price is adjusted, as herein provided, the Company shall promptly cause a notice setting forth the adjusted
Exercise Price and adjusted number of Shares issuable upon exercise of each Warrant to be mailed to the Holder. The Company may retain a firm of independent certified public accountants selected by the Board of Directors (who may be the regular
accountants employed by the Company) to make any computation required by this Section 6, and a certificate signed by such firm shall be conclusive evidence of the correctness of such adjustment. 
 (f) In the event that at any time, as a result of an adjustment made pursuant to Subsection (a) above, the Holder of this Warrant
thereafter shall become entitled to receive any shares of the Company, other than Common Stock, thereafter the number of such other shares so receivable upon exercise of this Warrant shall be subject to adjustment from time to time in a manner

  

 5 

 
and on terms as nearly equivalent as practicable to the provisions with respect to the Common Stock contained in Subsection (a), above. 
 (g) Irrespective of any adjustments in the Exercise Price or the number or kind of shares purchasable upon exercise of this Warrant,
Warrants theretofore or thereafter issued may continue to express the same price and number and kind of shares as are stated in this Warrant. 
 (h) In case at any time or from time to time conditions arise by reasons of action taken by the Company, which in the reasonable opinion of its Board of Directors, are not adequately covered by the provisions of
Section 6 hereof, and which might materially and adversely affect the exercise rights of the Holder hereof, the Board of Directors shall appoint a firm of independent certified public accountants, which may be the firm regularly retained by the
Company, which will give their opinion upon the adjustment, if any, on a basis consistent with the standards established in the other provisions of Section 6 necessary with respect to the Exercise Price then in effect and the number of shares
of Common Stock for which the Warrant is exercisable, so as to preserve, without dilution, the exercise rights of the Holder. Upon receipt of such opinion, the Board of Directors shall forthwith make the adjustments described therein. 
 7. Loss or Destruction of Warrant. Upon receipt by the Company of evidence satisfactory to it (in the exercise of its reasonable discretion) of
the loss, theft, destruction or mutilation of this Warrant Certificate, and (in the case of loss, theft or destruction) of reasonably satisfactory indemnification, and upon surrender and cancellation of this Warrant Certificate, if mutilated, the
Company shall execute and deliver a new Warrant Certificate of like tenor and date. 
 8. Notices. Any notice, demand or delivery
authorized by this Warrant Certificate shall be in writing and shall be given to the Holder or the Company, as the case may be, at its address (or telecopier number) set forth below, or such other address (or telecopier number) as shall have been
furnished to the party giving or making such notice, demand or delivery: 
  

			
	 If to the Company:
	    	 Empire Energy Corporation International
 16801 West 116th Street, Suite 100
 Lenexa, Kansas 66219
 Fax:
(913) 469-1662
 Attention: President

		
		    	with a copy to:
		
		    	 Ballard Spahr Andrews & Ingersoll, LLP
 1225 17th Street, Suite 2300
 Denver, CO 80202
 Attn: Roger V. Davidson, Esq.
 Fax
(303) 296-3956

		
		    	If to the Holder: RAB Special Situations (Master) Fund Limited
		
		    	 RAB Special Situations (Master) Fund Limited
 c/o RAB Capital Limited
 No. 1 Adam Street
 London W2CN 6LE
 United
Kingdom

  

 6 

			
		
		    	with a copy to:
		
		    	 DORSEY & WHITNEY LLP
 370 Seventeenth St., Suite 4700
 Denver, CO 80202
 Fax: (303) 629-3450
 Attention:
Kenneth Sam

 Each such notice, demand or delivery shall be effective (i) if given by telecopy, when such telecopy is
transmitted to the telecopy number specified herein and the intended recipient confirms the receipt of such telecopy or (ii) if given by any other means, when received at the address specified herein. 
 9. Rights of the Holder. Prior to the exercise of any Warrant, the Holder shall not, by virtue hereof, be entitled to any rights of a shareholder
of the Company, including, without limitation, the right to vote, to receive dividends or other distributions, to exercise any preemptive right or any notice of any proceedings of the Company except as may be specifically provided for herein.

 10. GOVERNING LAW. THIS WARRANT CERTIFICATE AND ALL RIGHTS ARISING HEREUNDER SHALL BE CONSTRUED AND DETERMINED IN ACCORDANCE WITH
THE INTERNAL LAWS OF THE STATE OF DELAWARE, AND THE PERFORMANCE THEREOF SHALL BE GOVERNED AND ENFORCED IN ACCORDANCE WITH SUCH LAWS. 
 11.
Amendments; Waivers. Any provision of this Warrant Certificate may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by the Holder and the Company, or in the case of a
waiver, by the party against whom the waiver is to be effective. No failure or delay by either party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude
any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. 
 12. Company Reorganization. In the event of any sale of substantially all the assets of the Company or any reorganization, reclassification,
merger or consolidation of the Company where the Company is not the surviving entity, then as a condition to the Company entering into such transaction, the entity acquiring such assets or the surviving entity, as the case may be, shall agree to
assume the Company’s obligations hereunder. 
 IN WITNESS WHEREOF, the Company has duly caused this Warrant to be signed by its duly
authorized officer and to be dated as of March 14, 2006. 
  

			
	EMPIRE ENERGY CORPORATION INTERNATIONAL
		
	By:	 	 /s/ Malcolm Bendall

	 Name:
	 	 Malcolm Bendall

	 Title:
	 	 President and Chief Executive Officer

  

 7 

 WARRANT EXERCISE NOTICE 
 (To be delivered prior to exercise of the Warrant 
 by execution of the Warrant Exercise
Subscription Form) 
  

	To:	Empire Energy Corporation International 

 The undersigned
hereby notifies you of its intention to exercise the Warrant to purchase shares of Common Stock, par value $.001 per share, of Empire Energy Corporation International The undersigned intends to exercise the Warrant to purchase
                     shares (the “Shares”) at
$             per Share (the Exercise Price currently in effect pursuant to the Warrant). The undersigned elects to pay the aggregate Exercise Price for the Shares in cash, certified
or official bank or bank cashier’s check (or a combination of cash and check) as indicated below. 
 Date:
                     
  

	
	
	   
	 (Signature of Owner)

  

			
	 Subscriber Information
	  	 Registration Information

		  	Registration of the certificates representing the Common Shares should be made exactly as follows (if space is insufficient, attach a list):
		
	 Name of Purchaser:
	  	
		
	 Street Address:
	  	
		
	 City and State:
	  	
		
	 Postal/Zip Code:
	  	
		
	 Contact Name:
	  	
		
	 Phone No.:
	  	
		
	 Fax No:
	  	

  

	Payment:	$                     cash
$                     check 

  

 1 

 WARRANT EXERCISE SUBSCRIPTION FORM 
 (To be executed only upon exercise of the Warrant 
 after deliver of Warrant Exercise
Notice) 
  

	To:	Empire Energy Corporation International 

 The undersigned
irrevocably exercises the Warrant for the purchase of                      shares (the “Shares”) of Common Stock, par value
$.0001 per dshare, of Empire Energy Corporation International (the “Company”) at $             per Share (the Exercise Price currently in effect pursuant to the
Warrant). The undersigned herewith makes payment of $                     (such payment being made in cash or by certified or official bank or
bank cashier’s check payable to the order of the Company or by any permitted combination of such cash or check), all on the terms and conditions specified in the within Warrant Certificate, surrenders this Warrant Certificate and all right,
title and interest therein to the Company and directs that the Shares deliverable upon the exercise of this Warrant be registered or placed in the name and at the address specified below and delivered thereto. 
 Date:                      
  

	
	
	   
	 (Signature of Owner)

	
	   
	 (Street Address)

	
	   
	 (City)                                      
  (State) (Zip Code)

  

 2 

 WARRANT ASSIGNMENT FORM 
 Dated                              ,
         
 FOR VALUE RECEIVED,
                                        
hereby sells, assigns and 
 transfers unto
                                        
                         (the “Assignee”), 
                         (please type or print in block letters) 
  

  

 (insert address) 
 its right to purchase up
to shares of Common Stock represented by this Warrant and does hereby irrevocably constitute and appoint
                                        
Attorney, to transfer the same on the books of the Company, with full power of substitution in the premises. 
  

			
		
	Signature:	 	  

  

 3

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