Document:

CONSULTING AGREEMENT

CONSULTING AGREEMENT

 

This
Consulting Agreement (the "Agreement") is entered into this 9th
day of October 2003, by and between Empyrean Communications, Inc. (the
"Company") and Robert L. Lee, (the "Consultant").

 

WHEREAS, the Consultant
is skilled in Financial and Administrative fields; and

 

WHEREAS, the Company
desires to engage the Consultant to assist the Company in its efforts in improve
in those areas in which the Consultant is skilled.

 

NOW, THEREFORE, in
consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt of which is hereby acknowledged, it is
agreed:

 

The Company hereby
engages the Consultant and the Consultant hereby accepts this engagement on a
non-exclusive basis pursuant to the terms and conditions of this Consulting
Agreement.

 

Consultant has already
provided and shall provide the Company with ongoing consulting services in the
areas set forth above. Consultant has met and shall meet with the Company's
Officers and the Board of Directors, as they shall reasonably require.
Consultant has provided and shall provide these services on an as-needed basis,
but no less than three days per week unless advised to the contrary by the
Company. These services have been provided and may be provided either at the
Company's principal place of business or at the business address of the
Consultant, depending on the nature and type of services provided.

 

In order to assist the
Consultant with his duties, the Company will provide the Consultant with such
information as may be required by the Consultant. The Company will make
available to Consultant such matters as are reasonably necessary in order for
the Consultant to carry out the Consultant's responsibilities.

 

Although dated at a
later date, the Agreement shall be effective as of the 9th
day of October 2003, and shall continue until the 31st day of October
2004.

 

In consideration of the
services that have been provided and that are to be provided, the Consultant
shall receive a fee of three million (3,000,000) shares of the Company's common
stock.

 

The Company will
register these shares pursuant to a registration on Form S-8.

 

During the term of this
Agreement, each party may have access to trade secrets, know how, formulae,
customer and price lists, all of which are valuable, special, proprietary and
unique assets of each. Each party agrees that each party shall keep all of such
information confidential and shall not divulge such information either during
the term of this Agreement or subsequent thereto.

 

At the termination of
this Agreement, or at any other time, either party may request the other party
to deliver to the other, without retaining any copies, notes or excerpts
thereof, off written or transcribed or pictorial or graphic information made by
or compiled by, or delivered or made available to or otherwise obtained by the
respective parties. However, the foregoing provision shall not prohibit the
Consultant from engaging in any work at any time following the termination of
this Agreement that does not conflict with the terms of this Agreement.

 

This Agreement may be
terminated for "Proper Cause" prior to the expiration of its stated term in the
sole and absolute discretion of either party. As used in this Agreement, "Proper
Cause" shall be limited to a conviction of civil or criminal fraud, whether a
felony or a misdemeanor. Such termination shall not prejudice any other remedy
to which either party may be entitled either at law, in equity or under this
Agreement.

 

Except as otherwise
provided herein, any notice or other communication to any party pursuant to or
relating to this Agreement and the transactions provided for herein shall be
deemed to have been given or delivered when deposited in the U.S. mail,
registered or certified, postage prepaid, addressed to the principal place of
business of the receiving party, or to such other address as may be designated
by either party in writing, pursuant to this provision.

 

This Agreement shall be
governed by and interpreted pursuant to the laws of the State of Nevada. By
entering into this Agreement, the parties agree to the jurisdiction of the
Nevada courts, with venue in Nevada. In the event of any breach of this
Agreement, the prevailing party shall be entitled to recover from the
non-prevailing party costs and reasonable attorney's fees.

 

This Agreement may be
executed in any number of counterparts, each of which when so executed and
delivered shall be deemed an original, and it shall not be necessary, in making
proof of this Agreement to produce or account for more than one counterpart.
Nothing contained herein shall be construed as creating a joint venture or
partnership arrangement between Consultant and the Company.

 

 

 

IN WITNESS WHEREOF, the
parties hereto have subscribed their hands on the day and year first written
above.

 

CONSULTANT:                                                                            
COMPANY:

                                                                                                       
Empyrean Communications, Inc.

 

 

 By:  /s/ Robert
L. Lee                                                                    
By: /s/ Robert L. Lee

Robert L. Lee                                                                              
Robert L. Lee

                                                                                                      
President and CEOFiled by Automated Filing Services Inc. (604) 609-0244 - Silverado Gold Mines Ltd. - Exhibit 10.12

 THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED
  UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), AND ARE BEING OFFERED AND SOLD
  IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT. SUCH
  SECURITIES MAY NOT BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED
  UNLESS THEY ARE REGISTERED UNDER THE APPLICABLE PROVISIONS OF THE ACT OR ARE
  EXEMPT FROM SUCH REGISTRATION. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED
  BY THE SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION") OR BY ANY STATE
  SECURITIES ADMINISTRATION OR REGULATORY AUTHORITY.  

 SUBSCRIPTION AGREEMENT 

 SILVERADO GOLD MINES LTD. 

 SUBSCRIPTION AGREEMENT made as of this _____ day of
  ___________ , 2003 between Silverado Gold Mines Ltd., a British Columbia
  company with its corporate office at Suite 505, 1111 West Georgia Street, Vancouver,
  British Columbia, Canada V6E 4M3 (the "Company") and the undersigned (the "Subscriber").

 WHEREAS:

	A. 	The Company is offering 20,000,000 units (the “Units”)
        at a price of $0.10 US per Unit pursuant to Rule 506 of Regulation D of
        the United States Securities Act of 1933 (the “1933 Act”)
        and applicable state securities laws (the "Offering"). Each Unit will
        be comprised of one common share of the Company (each a “Share”)
        and one share purchase warrant (each a “Warrant”). Each Warrant
        will entitle the subscriber to purchase one additional common share of
        the Company for a one year period from the effective date of the Form
        S-3 Registration Statement at an exercise price, subject to adjustment,
        of $0.20 US per share. The Warrants will be represented by the form of
        warrant certificate attached hereto as Exhibit A. 

	 	 
	B.	The Subscriber is an “accredited investor”, as defined in Rule
      501 of Regulation D of the 1933 Act.
	 	 
	C. 	The Subscriber desires to acquire the number of Units
        of the Offering set forth on the signature page hereof on the terms and
        subject to the conditions of this Subscription Agreement. 

NOW, THEREFORE, for and in consideration of the premises and the mutual
  covenants hereinafter set forth, the parties hereto do hereby agree as follows:

	1. 	SUBSCRIPTION FOR UNITS
	 	 	 
	1.1 	Subject to the terms and
        conditions hereinafter set forth, the Subscriber hereby subscribes for
        and agrees to purchase from the Company such number of Units as is set
        forth upon the signature page hereof at a price, subject to adjustment
        in accordance with Section 2.3 of this Agreement, equal to $0.10 US per
        Unit (the “Subscription Price”). Upon execution, the subscription
        by the Subscriber will be irrevocable.

	 	 	 
	1.2 	The Subscriber will complete the purchase of
      the Units at closing by delivering to the Company the following:
	 	 	 
	 	(A)	payment of the Subscription Price by wire, bank draft,
        or cashier’s cheque payable to the Company and if other than by wire,
        sent via Fed/ Ex to the Company; and

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	 	(B)	the Investor Questionnaire Form, in the form delivered by the Company
      to the Subscriber.
	 	 	 
	1.3 	Upon execution of this Subscription
        Agreement by the Company, the Company agrees to sell the Units to the
        Subscriber for the Subscription Price subject to the Company's right to
        sell to the Subscriber such lesser number of Units as it may, in its sole
        discretion, deem necessary or desirable.

	 	 	 
	1.4 	The Subscriber hereby authorizes
        and directs the Company to deliver the securities to be issued to such
        Subscriber pursuant to this Subscription Agreement to the Subscriber's
        address indicated herein.

	 	 	 
	1.5 	The Subscriber acknowledges
        and agrees that the subscription for the Units and the Company's acceptance
        of the subscription is not subject to any minimum subscription for the
        Offering.

	 	 	 
	1.6 	Any acceptance by the Company
        of this Subscription is conditional upon compliance with all federal and
        state securities laws and other applicable laws of the state or foreign
        jurisdiction in which the Subscriber is resident. The Subscriber will
        deliver to the Company all other documentation, agreements, representations
        and requisite government forms required by the lawyers for the Company
        as required to comply with all securities laws and other applicable laws
        of the jurisdiction of the Subscriber

	 	 
	2.  	RESTRICTED SHARE AGREEMENTS OF THE SUBSCRIBER
      AND REGISTRATION RIGHTS 
	 	 
	2.1	 The Subscriber agrees to
        resell the Shares, the Warrants and any common shares issuable upon exercise
        of the Warrants (the “Warrant Shares”) only in accordance with
        the provisions of the 1933 Act and applicable state securities laws. 

	 	 
	2.2 	The Subscriber acknowledges
        and agrees that all certificates representing the Shares, the Warrants
        and the Warrant Shares are or will be “restricted securities”
        under the 1933 Act and will be endorsed with the following legend in accordance
        with Regulation D of the Act or such similar legend as deemed advisable
        by the lawyers for the Subscriber to ensure compliance with the 1933 Act:
      

	 	 	 
	 	 	“THE SECURITIES REPRESENTED
        BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
        OF 1933 (THE "ACT"), AND HAVE BEEN OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS
        FROM THE REGISTRATION REQUIREMENTS OF THE ACT. SUCH SECURITIES MAY NOT
        BE REOFFERED FOR SALE OR RESOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE
        REGISTERED UNDER THE APPLICABLE PROVISIONS OF THE ACT OR PURSUANT TO AN
        AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT.”

	 	 	 
	2.3 	The Company will use its
        best efforts to file with the Securities and Exchange Commission (the
        “SEC”) within 30 days of closing, a Form S-3 registration statement
        (the “Registration Statement”) to register the resale of the
        Shares and the Warrant Shares by the Subscriber. The Company will use
        its best efforts to ensure effectiveness of the Registration Statement
        within 90 days from closing.

	 	 	 
	2.4 	The per unit purchase price and the warrant exercise
      price will be further reduced as follows:
	 	 
	 	(A)	by $0.01 per share in the event that the Company fails to
      file the Registration Statement within 60 days of closing;

3

	 	(B)	by an additional $0.01 per share in the event
      that the Company fails to file the Registration Statement within 70 days
      of closing;
	 	 	 	 	 
	 	(C)	by an additional $0.01 per share in the event
      that the Registration Statement is not effective within 90 days of closing;
	 	 	 	 	 
	 	(D)	by an additional $0.01 per share in the event
      that the Registration Statement is not effective within 120 days of closing;
      and
	 	 	 	 	 
	 	(E)	by an additional $0.01 per share in the event
      that the Registration Statement is not effective within 180 days of closing.
	 	 	 	 	 
	2.5 	The Company will pay all required expenses and
      fees in connection with the preparation and filing of the Registration Statement.
    
	 	 	 	 	 
	2.6 	During the period between
        closing and the 30 days following the effectiveness of the Registration
        Statement the Company agrees not to undertake any private placement of
        its common shares pursuant to Regulation S promulgated under the 1933
        Act. 

	 	 	 	 	 
	3.  	REPRESENTATIONS AND WARRANTIES BY SUBSCRIBER
    
	 	 
	3.1	 The Subscriber represents
        and warrants to the Company and acknowledges that the Company is relying
        upon the Subscriber’s representations and warranties in agreeing
        to sell the Units to the Subscriber that: 

	 	 
	 	 	EACH SUBSCRIBER MUST
        INITIAL THEIR ACCREDITED INVESTOR STATUS WHERE INDICATED BELOW TO CONFIRM
        THEIR ACCREDITED INVESTOR STATUS: 

	 	 	 	 	 
		(A)	Accredited Investor Status (Initial)
      

      The Subscriber is an “Accredited Investor” as defined by Rule
        501 of Regulation D of the 1933 Act. 

      An “Accredited Investor” , as such term is defined in Rule
        501 of Regulation D of the 1933 Act, means any of the following: 

	 	 	 	 	 
	 	 	 	(1) 	Any natural person whose individual
        net worth, or joint net worth with that person's spouse, at the time of
        his purchase, exceeds $1,000,000; 

	 	 	 	 	 
	 	 	 	(2) 	Any natural person who had an individual
        income in excess of $200,000 in each of the two most recent years or joint
        income with that person's spouse in excess of $300,000 in each of those
        years and has a reasonable expectation of reaching the same income level
        in the current year; 

	 	 	 	 	 
	 	 	 	(3) 	Any director, executive officer of the Company; 
	 	 	 	 	 
	 	 	 	(4) 	Any trust with total assets in excess
        of $5,000,000, not formed for the specific purpose of acquiring the securities
        offered, whose purchase is directed by a sophisticated person as described
        in Rule 503(b)(2)(ii); 

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	 	 	 	(5) 	Any private business development company as defined
        in Section 202(a)(22) of the Investment Advisers Act of 1940; 

	 	 	 	 	 
	 	 	 	(6) 	Any organization described in Section 501(c)(3)
        of the Internal Revenue Code, corporation, Massachusetts or similar business
        trust, or partnership. not formed for the specific purpose of acquiring
        the securities offered, with total assets in excess of $5,000,000; 

	 	 	 	 	 
	 	 	 	(7) 	Any bank as defined in Section 3(a)(2) of the
        Act or any savings and loan association or other institution as defined
        in Section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary
        capacity; 

	 	 	 	 	 
	 	 	 	(8) 	Any insurance company as defined in Section 2(13) of the Act; 
	 	 	 	 	 
	 	 	 	(9) 	Any investment company registered under the Investment
        Company Act of 1940 or a business development company as defined in Section
        2(a)(48) of that Act; 

	 	 	 	 	 
	 	 	 	(10) 	Any Small Business Investment Company licensed
        by the U.S. Small Business Administration under Section 301(c) or (d)
        of the Small Business Investment Act of 1958; 

	 	 	 	 	 
	 	 	 	(11) 	Any plan established and maintained by a state,
        its political subdivisions, or any agency or instrumentality of a state
        or its political subdivisions, for the benefit of its employees, if such
        plan has total assets in excess of $5,000,000; 

	 	 	 	 	 
	 	 	 	(12)	 Any employee benefit plan within the meaning
        of the Employee Retirement Income Security Act of 1974, if the investment
        decision is made by a plan fiduciary, as defined in Section 3(21) of such
        Act, which is either a bank, savings and loan association, insurance company,
        or registered investment adviser, if the employee benefit plan has total
        assets in excess of $5,000,000, or if a self-directed plan, with investment
        decisions made solely by persons that are accredited investors; and 

	 	 	 	 	 
	 	 	 	(13) 	Any entity in which all of the equity owners are accredited investors.
      
	 	 	 	 	 
	 	 	(B) 	High Degree of Risk 

      The Subscriber recognizes that the purchase of Units
        involves a high degree of risk in that the Company is in the early stages
        of development of its business and may require substantial funds in addition
        to the proceeds of this private placement; 

	 	 	 	 	 
	 	 	(C) 	Speculative Investment 

      An investment in the Company is highly speculative and
        only investors who can afford the loss of their entire investment should
        consider investing in the Company and the Units; 

	 	 	 	 	 
	 	 	(D) 	Restricted Securities 

       The Subscriber understands that the Units it is purchasing
        are characterized as "restricted securities" under the federal securities
        laws inasmuch as they are being acquired from the Company in a transaction
        not involving a public offering and that under such laws and applicable
        regulations such securities may be resold without registration under the
        Act only in certain limited circumstances. In this connection, the Subscriber
        represents that it is familiar with SEC Rule 144, as presently in effect,
        and understands the resale limitations imposed thereby and by the Act;
      

 5

	 	 	(E)	 Investment Knowledge and Experience of Subscriber 

       The Subscriber is an investor in securities of companies
        in the development stage and acknowledges that it is able to fend for
        itself, can bear the economic risk of its investment, and has such knowledge
        and experience in financial or business matters such that it is capable
        of evaluating the merits and risks of the investment in the Units. The
        Subscriber can bear the economic risk of this investment, and was not
        organized for the purpose of acquiring the Units; 

	 	 	 	 
	 	 	(F) 	Company Information 

       The Subscriber believes it has received all the information
        it considers necessary or appropriate for deciding whether to purchase
        the Units, including copies of the Company’s financial statements,
        including audited financial statements, and copies of the Company’s
        filings with the United States Securities and Exchange Commission. The
        Subscriber further represents that it has had an opportunity to ask questions
        and receive answers from the Company and the officers and directors of
        the Company regarding the terms and conditions of the Offering and the
        business, properties, prospects and financial condition of the Company.
        The Subscriber has had full opportunity to discuss this information with
        the Subscriber’s legal and financial advisers prior to execution
        of this Subscription Agreement; 

	 	 	 	 
	 	 	(G) 	No SEC Review 

       The Subscriber hereby acknowledges that this offering
        of Units has not been reviewed by the United States Securities and Exchange
        Commission ("SEC") and that the Units are being issued by the Company
        pursuant to an exemption from registration provided by Rule 506 of Regulation
        D of the 1933 Act; 

	 	 	 	 
	 	 	(H) 	Purchase Entirely for Own Account 

       The Units will be acquired by the Subscriber for investment
        for the Subscriber's own account, not as a nominee or agent, and not with
        a view to the resale or distribution of any part thereof, and that the
        Subscriber has no present intention of selling, granting any participation
        in, or otherwise distributing the same. The Subscriber does not have any
        contract, undertaking, agreement or arrangement with any person to sell,
        transfer or grant participations to such person or to any third person,
        with respect to any of the Units or any securities comprising or underlying
        the Units. 

	 	 	 	 
	 	 	(I) 	No Advertisements 

       The Subscriber is not aware of any advertisement of the Units; 

	 	 	 	 
	 	 	(J) 	Authorization 

       The Subscriber has full power and authority to enter
        into this Agreement and this Agreement constitutes a valid and legally
        binding obligation of the Subscriber, enforceable in accordance with its
        terms except (i) as limited by applicable bankruptcy, insolvency, reorganization,
        moratorium, and other laws of general application affecting enforcement
        of creditors' rights generally, and (ii) as limited by laws relating to
        the availability of specific performance, injunctive relief, or other
        equitable remedies. 

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	 	 	(M) 	Laws of Jurisdiction of Subscriber 

       The Subscriber has satisfied himself or herself as to
        the full observance of the laws of his or her jurisdiction in connection
        with any invitation to subscribe for the Units and/or any use of this
        Agreement, including (i) the legal requirements within his/her jurisdiction
        for the purchase of the Units, (ii) any foreign exchange restrictions
        applicable to such purchase, (iii) any governmental or other consents
        that may need to be obtained, and (iv) the income tax and other tax consequences,
        if any, that may be relevant to the purchase, holding, redemption, sale,
        or transfer of the Units. 

	 	 	 	 
	4. 	REPRESENTATIONS BY THE COMPANY
	 	 	 	 
	4.1 	The Company represents and warrants to the Subscriber
      that:
	 	 	 	 
	 	(A)	The Company is a corporation
        duly organized, existing and in good standing under the laws of the Province
        of British Columbia and has the corporate power to conduct the business
        which it conducts and proposes to conduct.

	 	 	 	 
	 	(B)	Upon issue, the Shares comprising
        the Units will be duly and validly issued, fully paid and non-assessable
        common shares of the Company.

	 	 	 	 
	5. 	CLOSING
	 	 	 	 
	5.1	 Closing of the purchase
        and sale of the Units shall take place on August 11, 2003 at the offices
        of the Company or at such other time and place as the parties may mutually
        agree.

	 	 	 	 
	6. 	MISCELLANEOUS
	 	 	 	 
	6.1 	Any notice or other communication
        given hereunder shall be deemed sufficient if in writing and sent by registered
        or certified mail, return receipt requested, addressed to the Company,
        at its corporate office, at Suite 505, 1111 West Georgia Street, Vancouver,
        British Columbia, Canada V6E 4M3, Attention: Mr. Garry L. Anselmo, President,
        and to the Subscriber at his address indicated on the last page of this
        Subscription Agreement. Notices shall be deemed to have been given on
        the date of mailing, except notices of change of address, which shall
        be deemed to have been given when received.

	 	 	 	 
	6.2 	The parties agree to execute
        and deliver all such further documents, agreements and instruments and
        take such other and further action as may be necessary or appropriate
        to carry out the purposes and intent of this Subscription Agreement.

	 	 
	6.3 	This Agreement may be executed
        in counterpart, each of which shall be deemed an original, all of which
        together shall constitute one and the same instrument.

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

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	6.3 	Notwithstanding the place where this Subscription
        Agreement may be executed by any of the parties hereto, the parties expressly
        agree that all the terms and provisions hereof shall be construed in accordance
        with and governed by the laws of the Province of British Columbia. 

IN WITNESS WHEREOF, this Subscription Agreement is executed as of the
  day and year first written above. 

	Number of Units Subscribed For:	Units
	 	 
	Signature of Subscriber or	 
	Authorized Signatory for Subscriber	 
	(if Subscriber is not an individual):	 
	 	 
	Name of Authorized Signatory for Subscriber	 
	(if Subscriber is not an individual):	 
	 	 
	Name of Subscriber:	 
	 	 
	Address of Subscriber:	 
	 	 
	Jurisdiction of Incorporation of Subscriber: (If	 
	Subscriber is a Corporation)	 
	 	 
	 	 
	 	 
	ACCEPTED BY:	 
	SILVERADO GOLD MINES LTD.	 
	 	 
	Signature Of Authorized Signatory:	 
	 	 
	Name of Authorized Signatory:	 
	 	 
	Position of Authorized Signatory:	 
	 	 
	Date of Acceptance:	 

 8

 EXHIBIT A

 FORM OF WARRANT CERTIFICATE

 

 

 

CERTIFICATE NO. [@] 

 NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE
  HEREOF HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION
  OR THE SECURITIES COMMISSION OF ANY STATE OR UNDER THE SECURITIES ACT OF 1933,
  AS AMENDED (THE “SECURITIES ACT”). THIS WARRANT AND THE UNDERLYING
  SECURITIES ARE RESTRICTED AND MAY NOT BE EXERCISED, OFFERED, RESOLD, PLEDGED
  OR TRANSFERRED EXCEPT AS PERMITTED APPLICABLE FEDERAL (UNITED STATES), STATE
  AND FOREIGN SECURITIES LAWS, PURSUANT TO EITHER AN EFFECTIVE REGISTRATION STATEMENT
  OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS. 

 SILVERADO GOLD MINES LTD.

  A BRITISH COLUMBIA COMPANY  

COMMON STOCK PURCHASE WARRANT CERTIFICATE

[DATE OF ISSUANCE]

 1.     Issuance 

 THIS IS TO CERTIFY THAT, for value received, [NAME
  OF HOLDER], of [ADDRESS OF HOLDER] (the “Holder”), shall
  have the right to purchase from Silverado Gold Mines Ltd., a British
  Columbia company (the “Company”), [NUMBER OF WARRANTS] ([@])
  fully paid and nonassessable common shares of the Company (the “Common
  Shares”) at an exercise price equal to $[EXERCISE PRICE] per share (the
  "Exercise Price"), subject to further adjustment as set forth in Section 6 hereof,
  at any time, subject to Paragraph 7 hereof, until 5:00 P.M., Eastern time, on
  the [EXPIRY DAY] day of [EXPIRY MONTH], [EXPIRY YEAR] (the “Expiration
  Date”). 

 2.     Exercise of Warrants 

 This Warrant is exercisable in whole or in partial allotments
  of no less than 1,000 shares at the Exercise Price per Common Share payable
  hereunder, payable in cash or by certified or official bank check. Upon surrender
  of this Warrant Certificate with the annexed Notice of Exercise Form duly executed,
  together with payment of the Exercise Price for the Common Shares purchased,
  the Holder shall be entitled to receive a certificate or certificates for the
  Common Shares so purchased. No fractional shares shall be issued in connection
  with any exercise of this Warrant. In lieu of the issuance of any fractional
  share, the Company shall make a cash payment equal to the then fair market value
  of such fractional share as determined by the Company’s Board of Directors.

 NOTWITHSTANDING ANY OTHER PROVISION OF THIS WARRANT CERTIFICATE,
  THE HOLDER SHALL NOT BE ENTITLED TO EXERCISE ANY WARRANTS IF, AFTER GIVING EFFECT
  TO THE EXERCISE, THE HOLDER WILL BE THE LEGAL OR BENEFICIAL OWNER OF MORE THAN
  4.9% OF THE COMMON SHARES OF THE COMPANY. THE HOLDER WILL PROVIDE TO THE COMPANY
  SUCH INFORMATION AS THE COMPANY MAY REASONABLY REQUIRE TO ENSURE COMPLIANCE
  WITH THIS PROVISION.  

 

	Silverado Gold Mines Ltd.	-2-
	Common Stock Purchase	 
	Warrant Certificate No. «Certno»	 

3.     Reservation of Shares

 The Company hereby agrees that at all times during the term
  of this Warrant there shall be reserved for issuance upon exercise of this Warrant
  such number of Common Shares as shall be required for issuance upon exercise
  of this Warrant (the “Warrant Shares”).

 4.     Mutilation or Loss of Warrant

 Upon receipt by the Company of evidence satisfactory to it
  of the loss, theft, destruction or mutilation of this Warrant, and (in the case
  of loss, theft or destruction) receipt of reasonably satisfactory indemnification,
  and (in the case of mutilation) upon surrender and cancellation of this Warrant,
  the Company will execute and deliver a new Warrant of like tenor and date and
  any such lost, stolen, destroyed or mutilated Warrant shall thereupon become
  void.

 5.     Rights of the Holder

 The Holder shall not, by virtue hereof, be entitled to any
  rights of a stockholder in the Company, either at law or equity, and the rights
  of the Holder are limited to those expressed in this Warrant and are not enforceable
  against the Company except to the extent set forth herein.

 6.     Protection Against Dilution.

 The Exercise Price and the number of shares which can be purchased
  by the Holder upon the exercise of this Warrant shall be subject to adjustment
  in the events and in the manner following:

	 	(1)	If and whenever the shares at any time
        outstanding shall be subdivided into a greater or consolidated into a
        lesser number of shares, the Exercise Price shall be decreased or increased
        proportionately as the case may be; upon any such subdivision or consolidation,
        the number of shares which can be purchased upon the exercise of this
        warrant certificate shall be increased or decreased proportionately as
        the case may be.

	 	 	 
	 	(2)	In case of any capital reorganization
        or of any reclassification of the capital of the Company or in case of
        the consolidation, merger or amalgamation of the Company with or into
        any other company, this Warrant shall after such capital reorganization,
        reclassification of capital, consolidation, merger or amalgamation confer
        the right to purchase the number of shares or other securities of the
        Company or of the Company resulting from such capital reorganization,
        reclassification, consolidation, merger or amalgamation, as the case may
        be, to which the Holder of the shares deliverable at the time of such
        capital reorganization, reclassification of capital, consolidation, merger
        or amalgamation, upon the exercise of this Warrant would have been entitled.
        On such capital reorganization, reclassification, consolidation, merger
        or amalgamation appropriate adjustments shall be made in the application
        of the provisions set forth herein with respect to the rights and interest
        thereafter of the Holder of this Warrant so that the provisions set forth
        herein shall thereafter be applicable as nearly as may reasonably be in
        relation to any shares or other securities thereafter deliverable on the
        exercise of this Warrant.

	 	 	 
	 	(3)	The rights of the Holder evidenced hereby
        are to purchase shares prior to or on the date set out on the face of
        this Warrant. If there shall, prior to the exercise of any of the rights
        evidenced hereby, be any reorganization of the authorized capital of the
        Company by way of consolidation, merger, subdivision, amalgamation or
        otherwise, or the payment of

 

	Silverado Gold Mines Ltd.	-3-
	Common Stock Purchase	 
	Warrant Certificate No. «Certno»	 

	 	 	any stock dividends, then there shall automatically
        be an adjustment in either or both of the number of shares which may be
        purchased pursuant hereto or the price at which such shares may be purchased
        so that the rights evidenced hereby shall thereafter as reasonably as
        possible be equivalent to those originally granted hereby. The Company
        shall have the sole and exclusive power to make such adjustments as it
        considers necessary and desirable.

	 	 	 
	 	(4)	The adjustments provided for herein in the subscription rights represented
      by this Warrant are cumulative.

 7.     Limit Price Acceleration of Exercise Price

 In the event that, at any time following the date that the
  Company shall have filed and obtained effectiveness of a Registration Statement
  registering the resale of the shares to be acquired by the holder on exercise
  of the warrants, the Company’s Common Shares shall trade at a price in
  excess of $0.40 per share (the “Limit Price”) for a period of 20 consecutive
  trading days, then the Holder shall have 15 days in which to elect whether or
  not to exercise the Warrants (the “Accelerated Exercise Period”).
  In the event the Warrants are not exercised within the Accelerated Exercise
  Period, they will expire and the Holder will no longer have any right to exercise
  the Warrants.

 8.     Transfer to Comply with the Securities
  Act

 This Warrant and the Warrant Shares have not been registered
  under the Securities Act of 1933, as amended, (the "Act") and has been issued
  to the Holder for investment purposes and not with a view to the distribution
  of either the Warrant or the Warrant Shares. Neither this Warrant nor any of
  the Warrant Shares or any other security issued or issuable upon exercise of
  this Warrant may be sold, transferred, pledged or hypothecated in the absence
  of an effective registration statement under the Act relating to such security
  or an opinion of counsel reasonably satisfactory to the Company that registration
  is not required under the Act. Each certificate for the Warrant, the Warrant
  Shares and any other security issued or issuable upon exercise of this Warrant
  shall contain a legend on the face thereof, in form and substance satisfactory
  to counsel for the Company, setting forth the restrictions on transfer contained
  in this Section. The Holder understands that this Warrant and the stock purchasable
  hereunder constitute “restricted securities” under federal securities
  laws and acknowledges that Rule 144 of the Securities and Exchange Commission
  is not now, and may not in the future be, available for resales of this Warrant
  and/or the stock purchasable hereunder.

 All certificates representing the Warrant Shares will be endorsed with the
  following legend:

	 	“THE SECURITIES REPRESENTED BY THIS CERTIFICATE
        HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"),
        AND HAVE BEEN OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION
        REQUIREMENTS OF THE ACT. SUCH SECURITIES MAY NOT BE OFFERED FOR SALE,
        TRANSFERRED, PLEDGED OR RESOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE
        REGISTERED UNDER THE APPLICABLE PROVISIONS OF THE ACT OR ARE EXEMPT FROM
        SUCH REGISTRATION REQUIREMENTS.” 

9.     Payment of Taxes 

 The Company shall not be required to pay any tax or other
  charge imposed in connection with the exercise of this Warrant or a permissible
  transfer involved in the issuance of any certificate for shares 

 

	Silverado Gold Mines Ltd.	-4-
	Common Stock Purchase	 
	Warrant Certificate No. «Certno»	 

 issuable under this Warrant in the name other than that of
  the Holder, and in any such case, the Company shall not be required to issue
  or deliver any stock certificate until such tax or other charge has been paid
  or it has been established to the Company’s satisfaction that no such tax
  or other charge is due. 

 10.     Notices 

 Any notice required or permitted hereunder shall be given
  in writing and shall be deemed effectively given upon, (a) by personal delivery
  or telecopy, or (ii) one business day after deposit with a nationally recognized
  overnight delivery service such as Federal Express, with postage and fees prepaid,
  addressed to each of the other parties thereunto entitled at the following addresses,
  or at such other addresses as a party may designate by written notice to each
  of the other parties hereto. 

	COMPANY:	Silverado Gold Mines Ltd.
	 	Attention: Garry L. Anselmo, President
	 	Suite 505, 1111 West Georgia Street
	 	Vancouver, British Columbia
	 	Canada V6E 4M3
	 	 
	 	fax: (604) 682-3519
	 	 
	HOLDER:	At the address set forth above.

 11.     Governing Law 

 This Warrant shall be deemed to be a contract made under the
  laws of the Province of British Columbia and for all purposes shall be governed
  by and construed in accordance with the laws of such Province applicable to
  contracts to be made and performed entirely within such Province. 

 IN WITNESS WHEREOF, the Company has caused this Warrant
  to be duly executed and delivered and its seal placed hereon by its duly authorized
  officer. 

 Silverado Gold Mines Ltd. 

  by its authorized signatory: 

________________________
 Garry L. Anselmo, President

 SUBSCRIPTION FORM 

	TO:	Silverado Gold Mines Ltd.
	 	A British Columbia company

Dear Sirs:

 The undersigned (the “Subscriber”) hereby exercises
  the right to purchase and hereby subscribes for common shares in the capital
  stock of Silverado Gold Mines Ltd. (the “Shares”) referred to in the
  Warrant Certificate surrendered herewith according to the terms conditions thereof
  and herewith makes payment by cash, certified check or bank draft of the purchase
  price in full for the said shares in accordance with the Warrant. 

Please issue a certificate for the shares being purchased as follows in the name of the Subscriber:

	 	NAME:	 
	 	 	(Please Print)
	 	 	 
	 	ADDRESS:	 
	 	 	 
	 	 	 

The Subscriber represents and warrants to the Company that:

	 	(a)	the Subscriber has not offered or sold
        the Shares within the meaning of the United States Securities Act of 1933
        (the “Securities Act”);

	 	 	 
	 	(b)	the Subscriber is acquiring the Shares
        for its own account for investment, with no present intention of dividing
        my interest with others or of reselling or otherwise disposing of all
        or any portion of the same;

	 	 	 
	 	(c)	the Subscriber does not intend any sale
        of the Shares either currently or after the passage of a fixed or determinable
        period of time or upon the occurrence or non-occurrence of any predetermined
        event or circumstance;

	 	 	 
	 	(d)	the Subscriber has no present or contemplated
        agreement, undertaking, arrangement, obligation, indebtedness or commitment
        providing for or which is likely to compel a disposition of the Shares;

	 	 	 
	 	(e)	the Subscriber is not aware of any circumstances
        presently in existence which are likely in the future to prompt a disposition
        of the Shares;

	 	 	 
	 	(f)	the Shares were offered to the Subscriber
        in direct communication between the Subscriber and the Company and not
        through any advertisement of any kind;

 

	 	(g)	the Subscriber has the financial means to bear
      the economic risk of the investment which it hereby agrees to make.
	 	 	 
	 	(h)	This subscription form will also confirm the
      Subscriber’s understanding as follows:
	 	 	 	 
	 	 	(i)	the Shares have not been registered
        under the Securities Act or applicable state “Blue Sky” laws
        and, therefore, the Shares may not be resold, transferred or hypothecated
        without the registration of the Shares, or an opinion of counsel satisfactory
        to the Company to the effect that such registration is not necessary.

	 	 	 	 
	 	 	(ii)	Only the Company can take action to
        register the Shares under the Securities Act or applicable state securities
        law or to comply with the requirements for an exemption under the Securities
        Act or applicable state securities law, and the Company is under no obligation
        to do so, and does not propose to attempt to do so.

	 	 	 	 
	 	 	(iii)	The certificates representing the Shares will be endorsed
        with the following legend:

       “THE SECURITIES REPRESENTED BY THIS CERTIFICATE
        HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"),
        AND HAVE BEEN OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION
        REQUIREMENTS OF THE ACT. SUCH SECURITIES MAY NOT BE OFFERED FOR SALE,
        TRANSFERRED, PLEDGED OR RESOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE
        REGISTERED UNDER THE APPLICABLE PROVISIONS OF THE ACT OR ARE EXEMPT FROM
        SUCH REGISTRATION REQUIREMENTS.”

	 	 	 
	 	(i)	the Subscriber is an “accredited investor”,
      as defined in Rule 501 of Regulation D of the Securities Act.

 Please deliver a warrant certificate in respect of the common
  shares referred to in the warrant certificate surrendered herewith but not presently
  subscribed for, to the Subscriber. 

 DATED this ______ day of ___________________, ____. 

	Signature of Subscriber:	 
	 	 
	Name of Subscriber:	 
	 	 
	Address of Subscriber:

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