Document:

SUBSCRIPTION
      FOR UNITS

    

    (Part
      5
      Accredited Investor Exemption Pursuant to “National Instrument 45-106
      -
      Prospectus and Registration Exemptions”
-
      

    Alberta
      and British Columbia Residents Only)

    

    TO:    Deep
      Well Oil & Gas, Inc. (the "Corporation")

    510
      Royal Bank Building

    10117
      Jasper Avenue, AB T5J 1W8

    

    The
      undersigned subscriber (the “Subscriber”) acknowledges that the Corporation is
      proceeding with an Offering of 5,000,000 units (“Units”) at a price of US$0.40
      per Unit for gross proceeds of US$2,000,000. Each Unit is comprised of one
      (1)
      common share (“Common Share”) and one (1) Common Share purchase warrant. Each
      whole warrant entitles the holder to purchase one (1) Common Share at a price
      of
      US$0.60 for a period of three years from the Closing Date. The undersigned
      Subscriber hereby tenders to the Corporation this subscription offer which,
      upon
      acceptance by the Corporation, will constitute an agreement of the Subscriber
      to
      subscribe for, take up, purchase and pay for and, on the part of the
      Corporation, to issue and sell to the Subscriber, the number of Units set out
      below on the terms and subject to the conditions set out in this Subscription
      Agreement. Until the Closing of the Offering, all subscription funds shall
      be
      held in a non-interest bearing account of the Corporation. Upon Closing of
      the
      Offering, all of the subscription proceeds (net of expenses thereon) will be
      released to the Corporation. In the event the Offering does not close, any
      and
      all subscription proceeds will be returned to subscribers without interest,
      deduction or penalty. The Subscriber hereby acknowledges and agrees that the
      terms and conditions contained in the attached Schedule “A” form part of this
      Subscription Agreement and are incorporated herein by reference.

    
      	   
	 	 	 
	 	 	 	
              Number
                of Units:

            
	
              Name
                of Subscriber - please print

            	 	 	   

	
            	 	 	    
	
              By: 

            	 	 	 
	
              
                

              

              Authorized
                Signature

            	 	 	
              Aggregate
                Subscription Price (No. of Units X US$0.40 per
                Unit):

            
	 	 	 	 
	

              Official
                Capacity or Title - please print

            	 	 	 
	 	 	 	
              No.
                of Common Shares Currently Held (excluding 

            
	

              (Please
                print name of individual whose
                signature appears above if different than the name of the Subscriber
                printed above.)

            	 	 	Common
              Shares comprising the Units subscribed for
              herein):
	 	 	 	 
	

              Subscriber's
                Address

            	 	 	
              Register
                the Units as set forth below:

            
	 	 	 	 
	 	 	 	
              Name

               

            
	

              Facsimile
                Number

            	 	 	
              Address

            
	       
	 	 	 
	
              Telephone
                Number

            	
              E-Mail
                Address

            	 	 	
              Address

            
	   
	 	 	   
              
	 	 	 	 	 
	 	 	 	 	   
              

    

     

    ACCEPTANCE:
      The
      Corporation hereby accepts the above subscription as of this _______ day of
      ____________________, __________ and the Corporation represents and warrants
      to
      the Subscriber that the representations and warranties made by the Corporation
      are true and correct in all material respects as in all material respects as
      of
      this date and that the Subscriber is entitled to rely thereon.

    
      	 	 	 
	 	
              DEEP
                WELL OIL & GAS, INC.

            
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

            

    

    This
      is the first page of an agreement comprised of 9 pages (not including
      Exhibits).

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
      “A” -TERMS AND CONDITIONS OF SUBSCRIPTION FOR

    UNITS
      OF DEEP WELL OIL & GAS, INC.

     

    Definitions

     

    In
      this
      Subscription Agreement:

     

    
      	 	
              (a)

            	
              “Closing”
                or “Closing
                Date”
                means the closing of the Offering initially expected to occur on
                or about
                May 2, 2007 or such other date or dates as may be determined by the
                Corporation in its sole discretion and such other subsequent closings
                as
                may be required to complete the
                Offering;

            

    

     

    
      	 	
              (b)

            	
              “Common
                Share” means
                a common share in the capital stock of the
                Corporation;

            

    

     

    
      	 	
              (c)

            	
              “Corporation”
                means Deep Well Oil & Gas,
                Inc.;

            

    

     

    
      	 	
              (d)

            	
              “NI
                45-102” means
                National Instrument 45-102 - Resale
                of Securities; 

            

    

     

    
      	 	
              (e)

            	
              “NI
                45-106” means
                National Instrument 45-106 - Prospectus
                and Registration Exemptions; 

            

    

     

    
      	 	
              (f)

            	
              “Offering”
                means the offering of Units by the Corporation at US$0.40 per
                Unit;

            

    

     

    
      	 	
              (g)

            	
              “Securities”
                means the Units, the Common Shares and the Warrants comprising the
                Units,
                and the Warrant Shares;

            

    

     

    
      	 	
              (h)

            	
              “Subscriber”
                means the person or company identified as the Subscriber on the face
                page
                of this Subscription Agreement;

            

    

     

    
      	 	
              (i)

            	
              “Subscription
                Agreement”
                means this agreement, together with the exhibits attached hereto,
                as
                amended or supplemented from time to
                time;

            

    

     

    
      	 	
              (j)

            	
              “Subscription
                Price”
                means the aggregate subscription price paid by the Subscriber, being
                the
                number of Units subscribed for multiplied by US$0.40 per
                Unit;

            

    

     

    
      	 	
              (k)

            	
              “Unit”
                means a unit consisting of one (1) Common Share and one (1) Common
                Share
                purchase warrant of the
                Corporation;

            

    

     

    
      	 	
              (l)

            	
              “Warrant”
                means a Common Share purchase warrant of the Corporation in which
                one (1)
                whole warrant entitles the holder to purchase one (1) Common Share
                of the
                Corporation at a price of US$0.60 for a period of three (3) years
                from the
                Closing Date; and

            

    

     

    
      	 	
              (m)

            	
              “Warrant
                Share”
                means a Common Share issuable upon exercise of a
                Warrant.

            

    

     

    Terms
      of the Offering

     

    1. The
      Subscriber hereby confirms its subscription for and agrees to take up the Units
      as provided for on the initial page of this Subscription Agreement and delivers
      herewith a certified cheque or bank draft payable to the Corporation in the
      amount of the Subscription Price and authorizes the Corporation to release
      the
      said funds for use by the Corporation on Closing against delivery to the
      Subscriber of duly issued certificates representing the Common Shares and
      Warrants comprising the Units subscribed for herein.

     

    2. The
      Subscriber acknowledges that the Units subscribed for hereunder consist of
      a
      sale by the Corporation of 5,000,000 Units of the Corporation at a subscription
      price of US$0.40 per Unit.

     

    3. The
      Subscriber acknowledges that if the Offering does not close on any subscriptions
      received, the amounts received for subscriptions will be promptly returned
      by
      the Corporation to subscribers without interest, deduction or penalty. The
      Units
      offered are subject to acceptance by the Corporation and to rejection or
      allotment by the Corporation in whole or in part and the Corporation reserves
      the right to discontinue the Offering at any time without notice.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

      
        APPENDIX
          "A"

        to
          Exhibit 1

      

       

    

    4. The
      Subscriber acknowledges that this Subscription Agreement and the Exhibits hereto
      require the Subscriber to provide certain personal information to the
      Corporation. Such information is being collected by the Corporation for the
      purposes of completing the Offering, which includes, without limitation,
      determining the Subscriber's eligibility to purchase the Units under applicable
      securities legislation, preparing and registering certificates representing
      Units to be issued to the Subscriber and completing filings required by any
      stock exchange or securities regulatory authority. The Subscriber's personal
      information may be disclosed by the Corporation to: (a) stock exchanges or
      securities regulatory authorities, (b) the Corporation's registrar and
      transfer agent, and (c) any of the other parties involved in the Offering,
      including legal counsel and may be included in record books in connection with
      the Offering. By executing this Subscription Agreement, the Subscriber is deemed
      to be consenting to the foregoing collection, use and disclosure of the
      Subscriber's personal information. The Subscriber also consents to the filing
      of
      copies or originals of any of the Subscriber's documents described in
      Section 0
      hereof
      as may be required to be filed with any stock exchange or securities regulatory
      authority in connection with the transactions contemplated hereby.

     

    5. THE
      SUBSCRIBER FURTHER ACKNOWLEDGES THAT AN INVESTMENT IN THE UNITS MUST BE
      CONSIDERED SPECULATIVE AND IS SUBJECT TO A NUMBER OF RISK FACTORS. THE
      SUBSCRIBER COVENANTS AND AGREES TO COMPLY WITH NI 45-106, NI 45-102 AND ANY
      OTHER APPLICABLE SECURITIES LEGISLATION, RULES, REGULATIONS, ORDERS OR POLICIES
      CONCERNING THE PURCHASE, HOLDING OF, AND RESALE OF THE SECURITIES. THE
      SECURITIES ARE SUBJECT TO RESALE RESTRICTIONS AND WILL BEAR A LEGEND TO THAT
      EFFECT.

     

    6. In
      addition to one manually signed, completed copy of this Subscription Agreement,
      the Subscriber will execute and deliver to the Corporation all other
      documentation as may be required by applicable securities legislation, rules,
      policy statements, and orders, including NI 45-106, to permit the issue and
      sale of the Units. The Subscriber acknowledges and agrees that any such
      documentation, when executed and delivered by the Subscriber, will form part
      of
      and will be incorporated into this Subscription Agreement with the same effect
      as if each constituted a representation and warranty or covenant of the
      Subscriber hereunder in favour of the Corporation, and the Subscriber consents
      to the filing of such documents and/or information contained in such documents
      as may be required to be filed with any securities or the regulatory authority
      in connection with the transactions contemplated hereby.

     

    Representations,
      Warranties and Covenants by Subscriber

     

    7. The
      Subscriber represents, warrants and covenants to the Corporation (and
      acknowledges that the Corporation and its counsel are relying thereon) both
      at
      the date hereof and at the Closing Date that:

     

    
      	
              (a)

            	
              the
                Subscriber has been independently advised as to restrictions with
                respect
                to trading in the Units imposed by applicable securities legislation,
                confirms that no representation has been made to it by or on behalf
                of the
                Corporation with respect thereto, acknowledges that it is aware of
                the
                characteristics of the Units, the risks relating to an investment
                therein
                and of the fact that it may not be able to resell the Securities
                except in
                accordance with limited exemptions under applicable securities legislation
                and regulatory policy, including NI 45-102 and the United States
                Securities Act of 1933, as amended (as defined below) until expiry
                of the
                applicable restricted period and compliance with the other requirements
                of
                applicable law; and the Subscriber agrees that any certificates
                representing the Securities, and all certificates issued in exchange
                therefor or in substitution thereof, will bear a legend indicating
                that
                the resale of such Securities is restricted;
                and

            

    

     

    
      	
              (b)

            	
              the
                Subscriber has not received or been provided with, nor has it requested,
                nor does it have any need to receive, any offering memorandum, or
                any
                other document (other than an annual report, annual information form,
                interim report, information circular or any other continuous disclosure
                document, the content of which is prescribed by statute or regulation)
                describing the business and affairs of the Corporation which has
                been
                prepared for delivery to, and review by, prospective purchasers in
                order
                to assist it in making an investment decision in respect of the Units;
                and

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      APPENDIX
        "A"

      to
        Exhibit 1

    

     

    
      	
              (c)

            	
              the
                Subscriber has been afforded the opportunity (i) to ask such questions
                as
                it deemed necessary of, and to receive answers from, representatives
                of
                the Corporation concerning the terms and conditions of the offering
                of the
                Units and (ii) to obtain such additional information which the Corporation
                possesses or can acquire without unreasonable effort or expense that
                the
                Subscriber considered necessary in connection with its decision to
                invest
                in the Units; and

            

    

     

    
      	
              (d)

            	
              this
                Agreement is made unconditionally as a result of the Subscriber’s desire
                to participate in the future development of the Corporation;
                and

            

    

     

    
      	
              (e)

            	
              the
                Subscriber is purchasing as principal and it knows that it is purchasing
                the Units pursuant to an exemption under NI 45-106 and, as a
                consequence, is restricted from using most of the civil remedies
                available
                under applicable securities legislation, may not receive information
                that
                would otherwise be required to be provided to it under applicable
                securities legislation, and the Corporation is relieved from certain
                obligations that would otherwise apply under applicable securities
                legislation; and

            

    

     

    
      	 	
              (i)

            	
              if
                a resident of Alberta,
                the Subscriber is a
                resident in or otherwise subject to the applicable securities laws
                of
                Alberta and
                it is an "accredited investor" as such term is defined in NI 45-106
                promulgated under the Securities
                Act
                (Alberta) and has concurrently executed and delivered a Representation
                Letter in the form attached as Exhibit 1
                to
                this Subscription Agreement; or

            

    

     

    
      	 	
              (ii)

            	
              if
                a resident of British Columbia,
                the Subscriber is a resident in or otherwise subject to the applicable
                securities laws of British Columbia and it is an "accredited investor"
                as
                such term is defined in NI 45-106 promulgated under the Securities
                Act
                (British Columbia) and has concurrently executed and delivered a
                Representation Letter in the form attached as Exhibit 1
                to
                this Subscription Agreement; and

            

    

     

    
      	
              (f)

            	
              if
                the Subscriber is resident in any jurisdiction not referred to in
                Subsection 0
                above:
                (a) the purchase of the Units does not contravene any of the applicable
                laws in the Subscriber’s jurisdiction of residence and does not trigger
                (i) any obligation to prepare and file a prospectus, an offering
                memorandum or similar document, or any other ongoing reporting
                requirements with respect to such purchase or otherwise, or (ii)
                any
                registration or other obligation on the part of the Corporation;
                (b) the
                sale of the Units as contemplated in the Subscription Agreement complies
                with or is exempt from applicable securities legislation of the
                Subscriber’s jurisdiction of residence and the Subscriber will provide
                such evidence of compliance with all such matters as the Corporation
                may
                request; (c) the Subscriber will comply with the provisions of Section
                5
                and Subsection 7(a) as if they were a resident of Alberta or British
                Columbia; and (d) and notwithstanding that the Subscriber is not
                a
                resident of Alberta or British Columbia, it is an "accredited investor"
                as
                such term is defined in NI 45-106 promulgated under the Securities
                Act
                (Alberta) and/or the Securities
                Act
                (British Columbia) and
                has concurrently executed and delivered a Representation Letter in
                the
                form attached as Exhibit 1
                to
                this Subscription Agreement; and

            

    

     

    
      	
              (g)

            	
              no
                person has made to the Subscriber any written or oral
                representations:

            

    

     

    
      	 	
              (i)

            	
              that
                any person will resell or repurchase any of the
                Securities;

            

    

     

    
      	 	
              (ii)

            	
              that
                any person will refund the purchase price of any of the
                Securities;

            

    

     

    
      	 	
              (iii)

            	
              as
                to the future price or value of any of the Securities;
                or

            

    

     

    
      	 	
              (iv)

            	
              that
                any of the Securities will be listed and posted for trading on a
                stock
                exchange or that application has been made to list and post any of
                the
                Securities for trading on a stock exchange;
                and

            

    

     

    
      	
              (h)

            	
              the
                Subscriber has no knowledge of a “material fact” or “material change” (as
                those terms are defined by applicable securities legislation) in
                respect
                of the affairs of the Corporation that has not been generally disclosed
                to
                the public, other than knowledge relating directly to its subscription
                for
                the Units; and

            

    

     

    
      	
              (i)

            	
              the
                Corporation may complete additional financings in the future, and
                such
                future financings may have a dilutive effect on then-current security
                holders of the Corporation, including the Subscriber;
                and

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      APPENDIX
        "A"

      to
        Exhibit 1

    

     

    
      	
              (j)

            	
              it
                is aware that the Securities have not been and will not be registered
                under the United States Securities Act of 1933, as amended (“U.S.
                Securities Act”) and that the Securities may not be offered or sold in the
                United States or to, or for the account or benefit of, a U.S. Person
                (as
                defined in Regulation S under the U.S. Securities Act) (a "U.S. Person")
                without registration under the U.S. Securities Act or compliance
                with
                requirements of an exemption or exclusion from registration and the
                applicable laws of all applicable states and acknowledges that the
                Corporation has no present intention of filing a registration statement
                under the U.S. Securities Act in respect of the Securities;
                and

            

    

     

    
      	
              (k)

            	
              the
                Units have not been offered to the Subscriber in the United States;
                and

            

    

     

    
      	
              (l)

            	
              it
                is not a U.S. Person and is not purchasing the Units on behalf of,
                or for
                the account or benefit of, a U.S. Person;
                and

            

    

     

    
      	
              (m)

            	
              the
                Subscriber undertakes and agrees that it will not offer or sell the
                Securities in the United States unless such securities are registered
                under the U.S. Securities Act and the securities laws of all applicable
                states of the United States or an exemption or exclusion from such
                registration requirements is available, and further that it will
                not
                resell the Securities except in accordance with the provisions of
                applicable securities legislation, regulations, rules, policies and
                orders
                and stock exchange rules; and

            

    

     

    
      	
              (n)

            	
              it
                will not engage in hedging transactions with regard to the Securities
                except in compliance with the U.S. Securities Act;
                and

            

    

     

    
      	
              (o)

            	
              it
                understands and acknowledges that the Corporation must refuse to
                register
                any transfer of the Securities not made in accordance with an available
                exemption or exclusion from the registration requirements of the
                U.S.
                Securities Act or pursuant to registration under the U.S. Securities
                Act;
                and

            

    

     

    
      	
              (p)

            	
              if
                the Subscriber is a “distributor” (as defined in Regulation S under the
                U.S. Securities Act) or is an “affiliate” (as defined in Rule 405 under
                the U.S. Securities Act) of a distributor or is acting on behalf
                of a
                distributor, (i) it agrees that it will not offer or sell the Securities
                during the one year period after the completion of the distribution
                of the
                Units (the “Distribution Compliance Period”) to a U.S. Person or for the
                account or benefit of a U.S. Person (other than a distributor), and
                (ii)
                if it sells Securities to another distributor, a dealer (as defined
                in
                Section 2(a)(12) of the U.S. Securities Act) or a person receiving
                a
                selling concession fee or other remuneration, during the Distribution
                Compliance Period, the Subscriber agrees that it will send a written
                confirmation or other notice to the purchaser stating that the purchaser
                is subject to the same restrictions on offers and sales that apply
                to a
                distributor and setting forth the restrictions on offers and sales
                of
                Securities within the United States or to, or for the account or
                benefit
                of, U.S. Persons; and

            

    

     

    
      	
              (q)

            	
              the
                Subscriber understands and acknowledges that the Warrants may not
                be
                exercised by or on behalf of a U.S. Person unless the Warrant Shares
                issuable upon such exercise have been registered under the U.S. Securities
                Act or an exemption or exclusion from such registration is available;
                and

            

    

     

    
      	
              (r)

            	
              the
                Subscriber understands and acknowledges that each person exercising
                a
                Warrant will be required to provide either (i) written certification
                that
                it is not a U.S. Person and the Warrant is not being exercised on
                behalf
                of a U.S. Person, or (ii) a written opinion of counsel, of recognized
                standing reasonably satisfactory to the Corporation, to the effect
                that
                the Warrant being exercised and the Warrant Shares issuable upon
                such
                exercise have been registered under the U.S. Securities Act or are
                exempt
                from registration thereunder; and

            

    

     

    
      	
              (s)

            	
              if
                any Securities are being sold in the United States pursuant to Rule
                144
                under the U.S. Securities Act, the United States restrictive legend
                may be
                removed from the certificates representing the Securities by delivering
                to
                the Corporation a written opinion of counsel, of recognized standing
                reasonably satisfactory to the Corporation, to the effect that the
                legend
                is no longer required under applicable requirements of the U.S. Securities
                Act or state securities laws; and

            

    

     

    
      	
              (t)

            	
              if
                a corporation, partnership, unincorporated association or other entity,
                it
                has the legal capacity to enter into and be bound by this Subscription
                Agreement and further certifies that all necessary approvals of directors,
                shareholders or otherwise have been given and obtained;
                and

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      APPENDIX
        "A"

      to
        Exhibit 1

    

     

    
      	
              (u)

            	
              if
                an individual, it is of the full age of majority and is legally competent
                to execute this Subscription Agreement and take all action pursuant
                hereto; and

            

    

     

    
      	
              (v)

            	
              it
                acknowledges that the net subscription proceeds (gross proceeds less
                expenses, including legal fees which have not been paid by the
                Corporation), will be immediately releasable to the Corporation on
                the
                Closing Date or later closing dates, as the case may be;
                and

            

    

     

    
      	
              (w)

            	
              this
                Subscription Agreement has been duly and validly authorized, executed
                and
                delivered by and constitutes a legal, valid, binding and enforceable
                obligation of the Subscriber; and

            

    

     

    
      	
              (x)

            	
              the
                entering into of this Subscription Agreement and the transactions
                contemplated hereby will not result in a violation of any of the
                terms and
                provisions of any law applicable to it, or any of its constating
                documents, or of any agreement to which the Subscriber is a party
                or by
                which it is bound; and

            

    

     

    
      	
              (y)

            	
              in
                the case of a subscription by the Subscriber for Units acting as
                agent for
                a disclosed principal, it is duly authorized to execute and deliver
                this
                Subscription Agreement and all other necessary documentation in connection
                with such subscription on behalf of such principal and this Subscription
                Agreement has been duly authorized, executed and delivered by or
                on behalf
                of, and constitutes a legal, valid and binding agreement of, such
                principal; and

            

    

     

    
      	
              (z)

            	
              the
                Subscriber has such knowledge in financial and business affairs as
                to be
                capable of evaluating the merits and risks of the Subscriber’s investment
                and the Subscriber, or, where the Subscriber is acting as agent for
                a
                disclosed principal, each beneficial purchaser, is able to bear the
                economic risk of loss of the Subscriber’s entire investment in the Units;
                and

            

    

     

    
      	
              (aa)

            	
              except
                for the representations and warranties made by the Corporation herein,
                it
                has relied solely upon publicly available information relating to
                the
                Corporation and not upon any verbal or written representation as
                to fact
                or otherwise made by or on behalf of the Corporation and acknowledges
                that
                the Corporation's counsel are acting as counsel to the Corporation
                and not
                as counsel to the Subscriber; and

            

    

     

    
      	
              (bb)

            	
              the
                Subscriber understands that Units are being offered for sale only
                on a
                "private placement" basis and that the sale and delivery of the Units
                is
                conditional upon such sale being exempt from the requirements as
                to the
                filing of a prospectus or delivery of an offering memorandum or upon
                the
                issuance of such orders, consents or approvals as may be required
                to
                permit such sale without the requirement of filing a prospectus or
                delivering an offering memorandum and, as a consequence (i) it is
                restricted from using most of the civil remedies available under
                securities legislation; (ii) it may not receive information that
                would otherwise be required to be provided to it under securities
                legislation; and (iii) the Corporation is relieved from certain
                obligations that would otherwise apply under securities legislation;
                and

            

    

     

    
      	
              (cc)

            	
              if
                required by applicable securities legislation, regulations, rules,
                policies or orders, NI 45-106, or by any securities commission, stock
                exchange or other regulatory authority, the Subscriber will execute,
                deliver, file and otherwise assist the Corporation in filing, such
                reports, undertakings and other documents with respect to the issue
                of the
                Units (including, without limitation, a completed and duly executed
                Representation Letter, attached as Exhibit 1);
                and

            

    

     

    
      	
              (dd)

            	
              the
                Subscriber will not resell the Securities except in accordance with
                the
                provisions of applicable securities legislation and stock exchange
                rules,
                if applicable, in the future; and

            

    

     

    
      	
              (ee)

            	
              the
                Subscriber deals at arm's length with the Corporation within the
                meaning
                of the Income
                Tax Act
                (Canada) and will continue to deal at arm's length with the Corporation
                at
                all times which are relevant for this Subscription Agreement;
                and

            

    

     

    
      	
              (ff)

            	
              none
                of the funds the Subscriber is using to purchase the Units are, to
                the
                knowledge of the Subscriber, proceeds obtained or derived, directly
                or
                indirectly, as a result of illegal activities;
                and

            

    

     

    
      	
              (gg)

            	
              the
                funds representing the total Subscription Price which will be advanced
                by
                the Subscriber to the Corporation hereunder will not represent proceeds
                of
                crime for the purposes of the Proceeds
                of Crime (Money Laundering) and Terrorist Financing Act
                (Canada) (the "PCMLA") and the Subscriber acknowledges that the
                Corporation may in the future be required by law to disclose the
                Subscriber's name and other information relating to this Subscription
                Agreement and the Subscriber's subscription hereunder, on a confidential
                basis, pursuant to the PCMLA; and

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      APPENDIX
        "A"

      to
        Exhibit 1

    

     

    
      	
              (hh)

            	
              to
                the best of its knowledge, the subscription funds to be provided
                by the
                Subscriber (i) have not been or will not be derived from or related
                to any activity that is deemed criminal under the law of Canada,
                the
                United States of America, or any other jurisdiction, and (ii) are not
                being tendered on behalf of a person or entity who has not been identified
                to the Subscriber and the Subscriber shall promptly notify the Corporation
                if the Subscriber discovers that any of such representations cease
                to be
                true, and to provide the Corporation with appropriate information
                in
                connection therewith; and

            

    

     

    
      	
              (ii)

            	
              the
                Subscriber acknowledges that it has been encouraged to and should
                obtain
                independent legal, income tax and investment advice with respect
                to its
                subscription for these Units and accordingly, has been independently
                advised as to the meanings of all terms contained herein relevant
                to the
                Subscriber for purposes of giving representations, warranties and
                covenants under this Subscription
                Agreement.

            

    

     

    Representations,
      Warranties and Covenants of the Corporation

     

    8. The
      Corporation hereby represents and warrants to the Subscriber that it has been
      duly incorporated and is a valid and subsisting corporation under the laws
      of
      the State of Nevada, United States, is extra-provincially registered in the
      Province of Alberta, Canada and has full corporate power and authority to enter
      into this Subscription Agreement and to perform its obligations
      hereunder.

     

    9. The
      Corporation hereby covenants with the Subscriber that it will take all corporate
      action required to issue to the Subscriber the Units and the Common Shares
      and
      the Warrants comprising the Units on the Closing Date.

     

    Registration
      Rights

     

    10. If
      the
      Corporation proposes to register, pursuant to any registration rights agreement
      (a “Registration Rights Agreement”), for shareholders other than the Subscriber,
      any of its Common Shares or other equity securities (or securities convertible
      into equity securities) under the U.S. Securities Act in connection with the
      public offering of such securities solely for cash (other than a registration
      on
      Form S-8, Form S-4 or Form F-4), the Corporation will, at all such times,
      promptly give the Subscriber written notice of such proposed registration.
      Upon
      the written request of the Subscriber, given within 20 days after the mailing
      of
      such notice by the Corporation, the Corporation will, subject to the provisions
      of applicable Registration Rights Agreements, use its commercial best efforts
      to
      cause a registration statement covering all of the (i) Common Shares being
      acquired hereunder and (ii) Warrant Shares that each such holder has requested
      to be registered to become effective under the U.S. Securities Act. Only to
      the
      extent they apply to “piggy back” registrations, such registration shall also be
      subject to the other provisions of each applicable Registration Rights
      Agreement. For greater certainty, (i) such registration shall not be subject
      to
      any provisions of any Registration Rights Agreement that are applicable only
      to
“demand” registrations, and (ii) the Subscriber acknowledges that except as
      contemplated by this Section, the Corporation is under no obligation hereunder
      to register any of its securities or to complete any offering of its securities
      it proposes to make, and the Corporation will therefore incur no liability
      (including any penalties that may be incurred under a Registration Rights
      Agreement) to the Subscriber for its failure to register any of its securities
      or to complete any offering of its securities.

     

    Closing

     

    11. The
      Subscriber agrees to deliver to the Corporation, not later than 4:30 p.m.
      (Edmonton time) on the Closing Date: (a) this duly completed and executed
      Subscription Agreement; (b) a certified cheque or bank draft payable to
      Deep Well Oil & Gas, Inc. for the Subscription Price of the Units subscribed
      for under this Subscription Agreement; (c) if the Subscriber is an
“accredited investor” in Alberta a fully completed and duly executed
      Representation Letter, attached as Exhibit
      1
      hereto;
      or (d) if the Subscriber is an “accredited investor” in British Columbia a
      fully completed and duly executed Representation Letter, attached as
Exhibit
      1
      hereto;
      or (e)
      if the Subscriber is purchasing Units pursuant to Subsection 0
      a fully
      completed and duly executed Representation Letter, attached as Exhibit
      1
      hereto.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

       

      
        APPENDIX
          "A"

        to
          Exhibit 1

      

       

    

    12. The
      purchase and sale of the Units pursuant to this Subscription Agreement will
      be
      completed at the offices of the Corporation’s solicitors, Parlee
      McLaws llp,
      in
      Edmonton, Alberta on the Closing Date or such other place or time as the
      Corporation decides in its sole discretion. On the Closing Date, the Corporation
      shall receive all completed subscription agreements, including this Subscription
      Agreement, and the Subscription Price against delivery by the Corporation of
      the
      certificates representing the Units.

     

    13. The
      Corporation shall be entitled to rely on delivery of a facsimile copy of
      executed subscriptions, and acceptance by the Corporation of such facsimile
      subscriptions shall be legally effective to create a valid and binding agreement
      between the Subscriber and the Corporation in accordance with the terms
      hereof.

     

    General

     

    14. The
      Subscriber agrees that the representations, warranties and covenants of the
      Subscriber herein will be true and correct both as of the execution of this
      Subscription Agreement and as of the Closing Date and will survive the
      completion of the issuance of the Units. The representations, warranties and
      covenants of the Subscriber herein are made with the intent that they be relied
      upon by the Corporation and it’s counsel in determining the eligibility of a
      purchaser of Units and the Subscriber agrees to indemnify the Corporation,
      including its respective affiliates, shareholders, directors, officers,
      partners, employees, advisors and agents, against all losses, claims, costs,
      expenses and damages or liabilities which any of them may suffer or incur which
      are caused or arise from a breach thereof. The Subscriber undertakes to
      immediately notify the Corporation at 510 Royal Bank Building, 10117 Jasper
      Avenue, Edmonton, Alberta, T5J 1W8, Attention: Curtis Sparrow (Fax Number:
      (780)
      409-8146), of any change in any statement or other information relating to
      the
      Subscriber set forth herein which takes place prior to the Closing
      Date.

     

    15. The
      obligations of the parties hereunder are subject to acceptance of the terms
      of
      the Offering by any required regulatory approvals.

     

    16. The
      Subscriber acknowledges and agrees that all costs incurred by the Subscriber
      (including any fees and disbursements of any special counsel retained by the
      Subscriber) relating to the purchase of the Units by the Subscriber shall be
      borne by the Subscriber.

     

    17. The
      contract arising out of this Subscription Agreement and all documents relating
      thereto shall be governed by and construed in accordance with the laws of the
      Province of Alberta and the federal laws of Canada applicable therein. The
      parties irrevocably attorn to the exclusive jurisdiction of the courts of the
      Province of Alberta.

     

    18. Time
      shall be of the essence hereof.

     

    19. This
      Subscription Agreement represents the entire agreement of the parties hereto
      relating to the subject matter hereof and there are no representations,
      covenants or other agreements relating to the subject matter hereof except
      as
      stated or referred to herein.

     

    20. The
      terms
      and provisions of this Subscription Agreement shall be binding upon and enure
      to
      the benefit of the Subscriber and the Corporation and their respective heirs,
      executors, administrators, successors and assigns; provided that, except for
      the
      assignment by a Subscriber who is acting as agent to a beneficial disclosed
      purchaser and as otherwise herein provided, this Subscription Agreement shall
      not be assignable by any party without prior written consent of the other
      parties.

     

    21. The
      Subscriber, on its own behalf and, if applicable, on behalf of others for whom
      it is contracting hereunder, agrees that this subscription is made for valuable
      consideration and may not be withdrawn, cancelled, terminated or revoked by
      the
      Subscriber, on its own behalf and, if applicable, on behalf of others for whom
      it is contracting hereunder.

     

    22. Neither
      this Subscription Agreement nor any provision hereof shall be modified, changed,
      discharged or terminated except by an instrument in writing signed by the party
      against whom any waiver, change, discharge or termination is
      sought.

     

    23. The
      invalidity, illegality or unenforceability of any provision of this Subscription
      Agreement shall not affect the validity, legality or enforceability of any
      other
      provision hereof.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

      APPENDIX
        "A"

      to
        Exhibit 1

    

     

    24. The
      Subscriber acknowledges and agrees that acceptance of this Subscription
      Agreement will be conditional, among other things, upon the sale of Units to
      the
      Subscriber being exempt from any prospectus and offering memorandum requirements
      of all applicable securities laws. The Corporation will be deemed to have
      accepted this Subscription Agreement upon the delivery on the Closing Date
      of
      the certificates representing the Units to or upon the direction of the
      Subscriber in accordance with the provisions hereof.

     

    25. The
      headings used in this Subscription Agreement have been inserted for convenience
      of reference only and shall not affect the meaning or interpretation of this
      Subscription Agreement or any provision hereof.

     

    26. The
      covenants, representations and warranties contained herein shall survive the
      Closing of the transactions contemplated hereby.

     

    27. Each
      party shall from time to time do such further acts and execute and deliver
      such
      further documents as shall be reasonably required in order to fully perform
      and
      carry out the terms of this Subscription Agreement. 

     

    28. In
      this
      Subscription Agreement, words importing the singular include the plural and
      vice
      versa and words importing persons include firms or corporations.

     

    29. This
      Subscription Agreement may be executed in any number of counterparts with the
      same effect as if all parties to this Subscription Agreement had signed the
      same
      document and all counterparts will be construed together and constitute one
      and
      the same instrument.

     

    30. All
      notices hereunder will be in writing and addressed to the party for whom it
      is
      intended at the address indicated herein. Either party may by notice to the
      other party change its address for service. Any notice personally delivered
      will
      be deemed to have been given or made on the date it was actually delivered,
      or
      if sent by electronic facsimile, will be deemed to have been given or made
      on
      the business day next following the date upon which it was
      transmitted.

     

    31. In
      this
      Subscription Agreement references to "$" are to United States dollars unless
      stated otherwise.

     

    
      
         

      

      
        9UNLESS
        PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST
        NOT
        TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER
        OF
        (i) MAY 25, 2007 AND (ii) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN
        ANY
        PROVINCE OR TERRITORY OF CANADA.

      

      NEITHER
        THESE WARRANTS NOR THE COMMON SHARES ISSUABLE UPON EXERCISE THEREOF HAVE
        BEEN
        REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
        "U.S.
        SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.
        THESE WARRANTS MAY NOT BE EXERCISED WITHIN THE UNITED STATES OR BY OR ON
        BEHALF
        OF A U.S. PERSON (AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT),
        EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
        U.S.
        SECURITIES ACT, AND EXEMPTIONS FROM APPLICABLE STATE SECURITIES LAWS, IN
        EACH
        CASE AFTER PROVIDING AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY
        TO THE
        CORPORATION TO SUCH EFFECT.

      

      NEITHER
        THESE WARRANTS NOR THE COMMON SHARES ISSUABLE UPON EXERCISE THEREOF MAY BE
        OFFERED, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED
        OF
        EXCEPT: (A) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S.
        SECURITIES ACT; (B) IN A TRANSACTION OUTSIDE THE UNITED STATES MEETING THE
        REQUIREMENTS OF RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT OR
        (C) IN
        A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND,
        IN
        EACH CASE, IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS. PRIOR
        TO THE
        COMPLETION OF ANY SUCH TRANSACTION PURSUANT TO THE FOREGOING CLAUSES (B)
        OR (C),
        THE TRANSFEROR SHALL DELIVER TO THE CORPORATION A WRITTEN OPINION OF COUNSEL
        OR
        OTHER EVIDENCE SATISFACTORY TO THE CORPORATION TO THE EFFECT THAT SUCH
        TRANSACTION IS IN COMPLIANCE WITH THE REGISTRATION REQUIREMENTS OF ALL
        APPLICABLE UNITED STATES FEDERAL AND STATE SECURITIES LAWS. HEDGING TRANSACTIONS
        WITH RESPECT TO THESE WARRANTS AND THE COMMON SHARES ISSUABLE UPON EXERCISE
        THEREOF ARE PROHIBITED UNLESS THEY ARE CONDUCTED IN COMPLIANCE WITH THE U.S.
        SECURITIES ACT.

      

      This
        warrant certificate is void if not exercised on or before 5:00 p.m. (Edmonton
        time) on May 25, 2010.

      

      WARRANT
        CERTIFICATE

      DEEP
        WELL OIL & GAS, INC.

       

      (Incorporated
        under the laws of the State of Nevada and extra-provincially registered in
        the
        Province of Alberta, Canada)

       

      
        	
                WARRANTS
                  CERTIFICATE NO. ___

              	 	
                ___________
                  WARRANTS, each entitling the Holder to acquire one Common Share
                  for each
                  Warrant represented hereby

              

      

       

      THIS
        IS TO CERTIFY THAT, FOR VALUE RECEIVED

      

      Name

      Address

      

      (hereinafter
        referred to as the "Holder" or the "Warrantholder") is entitled to acquire
        for
        each Warrant represented hereby, in the manner and subject to the restrictions
        and adjustments set forth herein, at any time and from time to time until
        5:00 p.m. (Edmonton time) (the "Time of Expiry") on the Expiry Date (as
        hereinafter defined), one fully paid and non-assessable common share ("Common
        Share") of DEEP WELL OIL & GAS, INC. (the "Corporation"), at the Exercise
        Price (as hereinafter defined), subject to adjustment as herein
        provided.

       

      These
        Warrants may only be exercised at the principal office of the Corporation
        at 510
        Royal Bank Building, 10117 Jasper Avenue, Edmonton, Alberta, T5J 1W8, or
        such
        other office as the Corporation may advise the Holder in writing. These Warrants
        are issued subject to the terms and conditions appended hereto as Schedule "A".

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      IN
        WITNESS WHEREOF, the Corporation has caused this Warrant Certificate to be
        executed by a duly authorized officer.

       

      DATED
        this 25th
        day of
        May, 2007.

      
        	 	 	 
	 	
                DEEP
                  WELL OIL & GAS, INC.

              
	 
 	 
 	 
 
	
              	Per:
                	
              
	 	
                

              

      

       

      (See
        terms and conditions attached hereto)

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      SCHEDULE
        "A"

      

      TERMS
        AND CONDITIONS FOR WARRANT

      

      ARTICLE 1

      INTERPRETATION

      

      
        	1.1	
                Definitions

              

      

       

      In
        these
        Terms and Conditions, unless there is something in the subject matter or
        context
        inconsistent therewith:

      

      
        	(a)	
                "Common
                  Shares" means the common shares in the capital of the
                  Corporation;

              

      

       

      
        	(b)	
                "Corporation"
                  means Deep Well Oil & Gas,
                  Inc.;

              

      

       

      
        	(c)	
                "Current
                  Market Price" of the Common Shares at any date means the simple
                  average of
                  the closing price per share for the Common Shares for any 10 consecutive
                  trading days selected by the Corporation commencing not more than
                  45
                  trading days before such date on the stock exchange on which the
                  Common
                  Shares are listed or, if such Common Shares are not listed on a
                  stock
                  exchange, such over-the-counter market on which the Common Shares
                  are
                  quoted or trade (provided that if on any day in such period no
                  closing
                  price per share for the Common Shares is reported on by such exchange
                  or
                  over-the-counter market for such day, the average of the reported
                  closing
                  bid and asked prices on such exchange or over-the-counter market
                  on such
                  day shall be deemed to be the closing price per share for the Common
                  Shares for such day) of if the Common Shares are not listed or
                  quoted on
                  any stock exchange or over-the-counter market, a price determined
                  by the
                  board of directors of the Corporation acting
                  reasonably;

              

      

       

      
        	(d)	
                "Dividend
                  Paid in the Ordinary Course" means a dividend declared payable
                  on the
                  Common Shares in any four consecutive quarters of the Corporation,
                  whether
                  in (1) cash, (2) securities of the Corporation, including rights,
                  options
                  or warrants (other than rights, options or warrants referred to
                  in
                  subsection 4.2(b))
                  to purchase any securities of the Corporation or property or other
                  assets
                  of the Corporation, or (3) property or other assets of the Corporation,
                  to
                  the extent that the amount or value of such dividend together with
                  the
                  amount or value of all other dividends theretofore paid during
                  such
                  financial year (any such securities, property or other assets so
                  distributed to be valued at the fair market value of such securities,
                  property or other assets, as the case may be, as determined by
                  the
                  Corporation, which determination shall be conclusive, provided
                  that, for
                  the purposes of this definition, the fair market value of any Common
                  Share
                  distributed by way of dividend shall be conclusively determined
                  by
                  reference to the Current Market Price per Common Share on the date
                  prior
                  to the declaration of such dividend) does not exceed the greater
                  of:

              

      

       

      
        	
              	(i)	
                150%
                  of the aggregate amount and/or value of dividends declared payable
                  by the
                  Corporation on the Common Shares in the period of four consecutive
                  financial quarters ended immediately prior to the first day of
                  such
                  financial year; and

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
              	(ii)	
                100%
                  of the consolidated net income of the Corporation before extraordinary
                  items (but after dividends payable on all shares ranking prior
                  to or on a
                  parity with respect to the payment of dividends with the Common
                  Shares) in
                  respect of the period of four consecutive financial quarters ended
                  immediately prior to the first day of the current financial quarter
                  (such
                  consolidated net income, extraordinary items and dividends to be
                  shown in
                  the audited consolidated financial statements of the Corporation
                  for such
                  period of four consecutive financial quarters or if there are no
                  audited
                  consolidated financial statements for such period, computed in
                  accordance
                  with generally accepted accounting principles, consistent with
                  those
                  applied in the preparation of the most recent audited consolidated
                  financial statements of the
                  Corporation);

              

      

       

      
        	(e)	
                "Exercise
                  Price" means the price of US$0.60 per Common Share (subject to
                  adjustment
                  in certain events);

              

      

       

      
        	(f)	
                "Expiry
                  Date" means the 25th
                  day of May, 2010;

              

      

       

      
        	(g)	
                "herein",
                  "hereby" and similar expressions refer to these Terms and Conditions
                  as
                  the same may be amended or modified from time to time; and the
                  expression
                  "Article" and "Section" followed by a number refer to the specified
                  Article or Section of these Terms and
                  Conditions;

              

      

       

      
        	(h)	
                "person"
                  means an individual, corporation, partnership, trustee or any
                  unincorporated organization and words importing persons have a
                  similar
                  meaning;

              

      

       

      
        	(i)	
                "Time
                  of Expiry" means 5:00 p.m. (Edmonton time) on the Expiry
                  Date;

              

      

       

      
        	(j)	
                "Warrant"
                  means the warrant to acquire Common Shares evidenced by the Warrant
                  Certificate issued to the Holder;
                  and

              

      

       

      
        	(k)	
                "Warrant
                  Certificate" means the certificate to which these Terms and Conditions
                  are
                  attached.

              

      

       

      
        	1.2	
                Gender

              

      

       

      Words
        importing the singular number include the plural and vice versa and words
        importing the masculine gender include the feminine and neuter
        genders.

      

      
        	1.3	
                Interpretation
                  Not Affected by Headings

              

      

       

      The
        division of these Terms and Conditions into Articles, Sections and Subsections
        and the insertion of headings are for convenience of reference only and shall
        not affect the construction or interpretation thereof.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	1.4	
                Applicable
                  Law

              

      

       

      The
        terms
        hereof and of the Warrant shall be construed in accordance with the laws
        of the
        Province of Alberta and the laws of Canada applicable thereto.

      

      ARTICLE 2

       

      ISSUE
        OF WARRANT

      

      
        	2.1	
                Issue
                  of Warrants

              

      

       

      That
        number of Warrants set out on the Warrant Certificate are hereby created
        and
        authorized to be issued.

      

      
        	2.2	
                Additional
                  Warrants

              

      

       

      Subject
        to any other written agreement between the Corporation and the Warrantholder,
        the Corporation may at any time and from time to time undertake further equity
        or debt financing and may issue additional securities of any kind including
        Common Shares, warrants or grant options or similar rights to purchase Common
        Shares to any person.

      

      
        	2.3	
                Issue
                  in Substitution for Lost Warrants

              

      

       

      If
        the
        Warrant Certificate becomes mutilated, lost, destroyed or stolen:

      

      
        	(a)	
                the
                  Corporation shall, subject to subsection 2.3(b)
                  hereof, issue and deliver a new Warrant Certificate of like date
                  and tenor
                  as the one mutilated, lost, destroyed or stolen, in exchange for
                  and in
                  place of and upon cancellation of such mutilated, lost, destroyed
                  or
                  stolen Warrant Certificate; and

              

      

       

      
        	(b)	
                the
                  Holder shall bear the cost of the issue of a new Warrant Certificate
                  hereunder and in the case of the mutilation, loss, destruction
                  or theft of
                  the Warrant Certificate, shall, as a condition precedent to the
                  issuance
                  of a new Warrant Certificate, furnish to the Corporation such evidence
                  of
                  mutilation, loss, destruction, or theft as shall be satisfactory
                  to the
                  Corporation in its sole discretion and, if required by the Corporation,
                  an
                  indemnity in an amount and form satisfactory to the Corporation,
                  in its
                  discretion, and shall pay the reasonable charges of the Corporation
                  in
                  connection therewith.

              

      

       

      
        	2.4	
                Warrantholder
                  Not a Shareholder

              

      

       

      The
        Warrant Certificate shall not constitute the Holder a shareholder of the
        Corporation, nor entitle it to any right or interest in respect thereof except
        as may be expressly provided in the Warrant Certificate. The Corporation
        may
        deem and treat the Holder of the Warrant Certificate as the absolute owner
        thereof for all purposes and the Corporation shall not be affected by any
        notice
        to the contrary.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	2.5	
                Register
                  of Warrants 

              

      

       

      At
        all
        times while Warrants are outstanding, the Corporation shall maintain a register
        of all holders of Warrants on which shall be entered the names, latest known
        addresses of all holders and if available, the telecopier numbers of such
        holders and particulars of the Warrants held by them and a register of transfers
        in which shall be entered the particulars of all transfers of Warrants, such
        registers to be kept by and at the office of the Corporation.

       

      
        	2.6	
                Transfer

              

      

       

      Warrants
        may only be transferred on the register of the Corporation by the Holder
        thereof
        or its legal representatives or its attorney duly appointed by an instrument
        in
        writing in form and execution satisfactory to the Corporation in accordance
        with
        applicable laws. The Warrants and the Common Shares issuable thereunder are
        and
        may continue to be subject to resale restrictions and hold periods, and holders
        should consult their legal advisors in respect of the same. Such transfer
        will
        be effected upon surrender to the Corporation of this Warrant Certificate
        for
        cancellation and the duly completed and executed Transfer Form attached hereto
        as Appendix
        1
        and upon
        compliance, to the reasonable satisfaction of the Corporation,
        with:

      

      
        	(a)	
                the
                  conditions herein;

              

      

       

      
        	(b)	
                such
                  reasonable requirements as the Corporation may require;
                  and

              

      

       

      
        	(c)	
                all
                  applicable securities legislation and requirements of regulatory
                  authorities and all stock exchanges upon which the Common Shares
                  are
                  listed from time to time, as
                  applicable.

              

      

       

      
        	2.7	
                Default
                  on Issuance of Common Shares

              

      

       

      Notwithstanding
        anything contained in this Warrant Certificate, if for any reason, other
        than
        the failure or default of the Holder of the Warrants, the Corporation is
        unable
        to issue and deliver the Common Shares as contemplated within this Warrant
        Certificate to the Holder upon the proper exercise by the Holder of the right
        to
        purchase any of the Common Shares covered by this Warrant Certificate, the
        corporation, at the option of the Holder, must pay to the Holder, in cash,
        an
        amount equal to the difference between the Exercise Price and the Current
        Market
        Price of the Common Shares on the Exercise Date, for each Common Share that
        is
        not delivered, in complete satisfaction of its obligations with respect to
        the
        particular Warrant for which the Common Share was not issued.

      

      ARTICLE 3

      EXERCISE
        OF THE WARRANT

       

      
        	3.1	
                No
                  Registration under U.S. Securities
                  Act

              

      

       

      The
        Warrants may not be exercised within the United States, or by or on behalf
        of a
“U.S. Person” (as defined in Regulation S under the United States Securities Act
        of 1933, as amended (the “U.S. Securities Act”)), nor will certificates
        representing Common Shares issuable upon exercise of the Warrants be delivered
        in the United States, except pursuant to an exemption from the registration
        requirements of the U.S. Securities Act and exemptions from applicable state
        securities laws. Any person who proposes to exercise a Warrant shall provide
        to
        the Corporation, as contemplated in Appendix
        2,
        either
        (i) written certification that, among other things, the Warrant is not being
        exercised within the United States or by or on behalf of a U.S. Person, (ii)
        a
        written opinion of counsel or other evidence satisfactory to the Corporation
        to
        the effect that the issuance of Common Shares upon exercise of such Warrant
        is
        not required to be registered under the U.S. Securities Act and applicable
        state
        securities laws or (iii) written confirmation by the person exercising the
        Warrant that it is the original purchaser thereof and reaffirming, as of
        the
        date of such exercise, the representations, warranties made by it in the
        subscription agreement pursuant to which it purchased the Warrant. Common
        Shares
        issuable upon exercise of Warrants by a person in the United States or by
        or on
        behalf of a U.S. Person may, if so determined by the Corporation in its sole
        discretion, bear a legend restricting transfer.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	3.2	
                Method
                  of Exercise of The Warrant

              

      

       

      The
        Holder may exercise the right hereby conferred on the Holder to acquire Common
        Shares (subject to the provisions of this 0)
        by:

       

      
        	(a)	
                duly
                  completing and executing the Warrant Exercise Form attached hereto
                  as
                  Appendix 2;
                  and

              

      

       

      
        	(b)	
                certifying
                  that the Holder or (if different) the recipient of the Common Shares
                  to be
                  issued upon exercise of the Warrant either: (i) is not (a) a "U.S.
                  Person", (b) exercising the Warrant(s) on behalf of a "U.S. Person",
                  and
                  (c) in the United States at the time that the Warrant(s) are exercised
                  and
                  did not execute or deliver the Warrant Exercise Form in the United
                  States;
                  or (ii) at or prior to the time of such exercise, has delivered
                  to the
                  Corporation a written opinion of counsel or other evidence satisfactory
                  to
                  the Corporation to the effect that the issuance of Common Shares
                  upon such
                  exercise is not required to be registered under the U.S. Securities
                  Act
                  and applicable state securities laws; or (iii) is the original
                  purchaser
                  of the Warrants and confirms as of the date of such exercise, the
                  representations, warranties and agreements made by it in the subscription
                  agreement pursuant to which the Warrant was purchased by it;
                  and

              

      

       

      
        	(c)	
                surrendering
                  this certificate, together with the Holder’s certified cheque or a bank
                  draft, money order or wire transfer in the full amount of the total
                  aggregate Exercise Price of the Common Shares being purchased,
                  together
                  with the duly completed and executed Warrant Exercise Form, to
                  the
                  Corporation at its offices,

              

      

       

      at
        any
        time up until the Time of Expiry. This Warrant Certificate shall be deemed
        to be
        surrendered only upon personal delivery thereof to, or if sent by mail or
        other
        means of transmission, upon actual receipt thereof by, the Corporation at
        its
        offices.

      

      
        	3.3	
                Effect
                  of Exercise of the Warrant

              

      

       

      
        	(a)	
                Upon
                  surrender and payment as aforesaid the Common Shares so subscribed
                  for
                  shall be issued as fully paid and non-assessable shares, free from
                  all
                  liens, charges and encumbrances and the Holder shall become the
                  Holder of
                  record of such Common Shares on the date of such surrender and
                  payment;

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	(b)	
                Within
                  ten (10) business days after surrender and payment as aforesaid,
                  the
                  Corporation shall forthwith cause the issuance of and mail to the
                  Holder a
                  certificate for the Common Shares purchased as
                  aforesaid;

              

      

       

      
        	(c)	
                Notwithstanding
                  anything herein contained including any adjustment provided for
                  in
                  Article 4,
                  the Corporation shall not be required, upon the exercise of any
                  Warrants,
                  to issue fractions of Common Shares or to distribute certificates
                  which
                  evidence fractional Common Shares. Any fractional Common Shares
                  that would
                  otherwise be issuable upon the exercise of Warrants shall be cancelled
                  by
                  the Corporation without compensation to the Holder thereof;
                  and

              

      

       

      
        	(d)	
                Notwithstanding
                  anything herein contained, no Common Shares will be issued pursuant
                  to the
                  exercise of any Warrant if the issuance of such Common Shares would
                  constitute a violation of the securities laws of any applicable
                  jurisdiction or the requirements of any applicable stock exchange,
                  and
                  without limiting the generality of the foregoing, in the event
                  that any of
                  the Warrants are exercised prior to expiry of any hold period or
                  other
                  resale restriction placed thereon by such laws or requirements,
                  the
                  certificates evidencing the Common Shares thereby issued will bear
                  such
                  legend as is required under applicable securities laws and that,
                  in the
                  opinion of legal counsel to the Corporation, is necessary in order
                  to
                  avoid a violation of any such laws or requirements.

              

      

       

      
        	3.4	
                Subscription
                  for Less than Entitlement

              

      

       

      The
        Holder may subscribe for and purchase a number of Common Shares less than
        the
        number which it is entitled to purchase pursuant to the surrendered Warrant
        Certificate. In the event of any purchase of a number of Common Shares less
        than
        the number which can be purchased pursuant to the Warrant Certificate, the
        Corporation shall forthwith issue and deliver to the Holder a new Warrant
        Certificate containing the same terms and conditions as disclosed herein
        to
        purchase that number of Common Shares with respect to which such partial
        exercise did not apply.

      

      
        	3.5	
                Resale
                  Restrictions

              

      

       

      As
        the
        Corporation is not a reporting issuer in any jurisdiction of Canada, unless
        permitted under Canadian securities legislation, the Holder of this security
        must not trade the security in Canada and may have to hold the security for
        an
        indefinite period.

       

      
        	3.6	
                Expiration
                  of the Warrant

              

      

       

      After
        the
        Time of Expiry, all rights hereunder shall wholly cease and terminate and
        the
        Warrant Certificate and the Warrants shall be void and of no further force
        and
        effect.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      ARTICLE 4

       

      ADJUSTMENTS

      

      
        	4.1	
                Adjustment
                  of Number of Common Shares

              

      

       

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

      

      
        	(a)	
                If
                  and whenever at any time after the date hereof and prior to the
                  Time of
                  Expiry, any adjustment in the Exercise Price or in the calculation
                  thereof
                  pursuant to Section 4.2
                  shall occur as a result of:

              

      

       

      
        	(i)	
                an
                  event referred to in subsection 4.2(a);

              

      

       

      
        	(ii)	
                the
                  fixing by the Corporation of a record date for an event referred
                  to in
                  subsection 4.2(b);
                  or

              

      

       

      
        	(iii)	
                the
                  fixing by the Corporation of a record date for an event referred
                  to in
                  subsection 4.2(c)
                  if
                  such event constitutes the issue or distribution to the holders
                  of all or
                  substantially all of its outstanding Common Shares
                  of:

              

      

       

      
        	
              	(A)	
                Common
                  Shares, or

              

      

       

      
        
          	
                	(B)	
                  securities
                    exchangeable for or convertible into Common Shares at less than
                    the
                    Current Market Price of the Common Shares on such record date,
                    or

                

        

      

       

      
        	
              	(C)	
                rights,
                  options or warrants to acquire Common Shares at an exercise, exchange
                  or
                  conversion price per Common Share less than the Current Market
                  Price of
                  the Common Shares on such record
                  date,

              

      

       

      the
        number of Common Shares obtainable upon the subsequent exercise of the Warrant
        shall be adjusted simultaneously with the adjustment in the Exercise Price
        pursuant to Section 4.2
        by
        multiplying the number of Common Shares theretofore obtainable on the exercise
        thereof immediately prior to such adjustment by a fraction of which the
        numerator shall be the total number of Common Shares outstanding immediately
        after such date and the denominator shall be the total number of Common Shares
        outstanding immediately prior to such date. To the extent that any adjustment
        in
        subscription rights occurs pursuant to this subsection 4.1(a)
        as a
        result of the distribution of securities convertible into or exchangeable
        for
        Common Shares referred to in subsection 4.2(a)
        or as a
        result of the fixing by the Corporation of a record date for the distribution
        of
        rights, options or warrants referred to in subsection 4.2(b),
        the
        number of Common Shares purchasable upon exercise of a Warrant shall be
        readjusted immediately after the expiration of any relevant exchange, conversion
        or exercise right to the number of Common Shares which would be purchasable
        based upon the
        number of Common Shares actually issued and remaining issuable immediately
        after
        such expiration, and shall be further readjusted in such manner upon expiration
        of any further such right. To the extent that any such adjustment in
        subscription rights occurs pursuant to this subsection 4.1(a)
        as a
        result of the fixing by the Corporation of a record date for the distribution
        referred to in subsection 4.2(c)
        of
        rights, options or warrants or exchangeable or convertible securities, the
        number of Common Shares purchasable upon exercise of a Warrant shall be
        readjusted immediately after the expiration of any relevant exchange, conversion
        or exercise right to the number which would be purchasable pursuant to this
        subsection 4.1(a)
        if the
        fair market value of such rights, options or warrants or other exchangeable
        or
        convertible securities had been determined for the purposes of the adjustment
        pursuant to this subsection 4.1(a)
        on the
        basis of the number of Common Shares issued and remaining issuable immediately
        after such expiration, and shall be further readjusted in such manner upon
        expiration of any further right.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      
        	(b)	
                If
                  and whenever at any time after the date hereof and prior to the
                  Time of
                  Expiry there is a reclassification of the Common Shares or a capital
                  reorganization of the Corporation other than as described in subsection
                  4.2(a)
                  or
                  a consolidation, amalgamation or merger of the Corporation (including,
                  without limitation, by way of plan of arrangement) with or into
                  any other
                  body corporate, trust, partnership or other entity, or a sale or
                  conveyance of the property and assets of the Corporation as an
                  entirety or
                  substantially as an entirety to any other body corporate, trust,
                  partnership or other entity, any Warrantholder who has not exercised
                  his
                  right of acquisition prior to the effective date of such reclassification,
                  reorganization, consolidation, amalgamation, merger, sale or conveyance,
                  upon the exercise of such right thereafter, shall be entitled to
                  receive
                  and shall accept, in lieu of the number of Common Shares then sought
                  to be
                  acquired by it, the kind and number of shares or other securities
                  or
                  property of the Corporation or of the body corporate, trust, partnership
                  or other entity resulting from such reclassification, reorganization,
                  consolidation, amalgamation or merger, or to which such sale or
                  conveyance
                  may be made, as the case may be, that such Holder would have been
                  entitled
                  to receive as a result of such reclassification, reorganization,
                  consolidation, amalgamation, merger, sale or conveyance, if, on
                  the record
                  date or the effective date thereof, as the case may be, the Warrantholder
                  had been the registered Holder of the number of Common Shares to
                  which the
                  Holder was theretofore entitled upon exercise. If determined appropriate
                  by the board of directors of the Corporation to give effect to
                  or to
                  evidence the provisions of this subsection 4.1(b),
                  the Corporation, its successor, or such purchasing body corporate,
                  partnership, trust or other entity, as the case may be, shall prior
                  to or
                  contemporaneously with any such reclassification, reorganization,
                  consolidation, amalgamation, merger, sale or conveyance, enter
                  into an
                  agreement or new Warrant Certificate which shall provide, to the
                  extent
                  possible, for the application of the provisions set forth in this
                  Warrant
                  Certificate with respect to the rights and interests thereafter
                  of the
                  Warrantholder to the end that the provisions set forth in this
                  Warrant
                  shall thereafter correspondingly be made applicable, as nearly
                  as may
                  reasonably be, with respect to any shares, other securities or
                  property to
                  which a Warrantholder is entitled on the exercise of its acquisition
                  rights thereafter and upon entering into such new Warrant Certificate
                  or
                  agreement, the Corporation shall cease to have any obligations
                  (including
                  the obligation to issue any Common Shares) hereunder and the Holder
                  shall
                  cease to have any rights hereunder. Any Warrant Certificate or
                  agreement
                  entered into pursuant to the provisions of this subsection 4.1(b)
                  shall be an agreement entered into pursuant to the provisions of
                  Article 6.
                  Any Warrant Certificate or agreement entered into between the Corporation,
                  any successor to the Corporation or such purchasing body corporate,
                  partnership, trust or other entity shall provide for adjustments
                  which
                  shall be as nearly equivalent as may be practicable to the adjustments
                  provided in this Article 4
                  and which shall apply to successive reclassifications, reorganizations,
                  consolidations, amalgamations, mergers, sales or
                  conveyances.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      
        	4.2	
                Adjustment
                  of
                  Exercise Price

              

      

       

      The
        Exercise Price in effect at any date attaching to the Warrants shall be subject
        to adjustment from time to time as follows:

      

      
        	(a)	
                If
                  and whenever after the date hereof and at any time prior to the
                  Time of
                  Expiry, the Corporation shall:

              

      

       

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

              

      

       

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

                

        

      

       

      
        	
              	(iii)	
                make
                  any distribution, other than by way of Dividend Paid in the Ordinary
                  Course, to the holders of all or substantially all of the outstanding
                  Common Shares payable in Common
                  Shares;

              

      

       

      the
        Exercise Price in effect on the effective date of such events referred to
        in
        subsections 4.2(a)(i),
        4.2(a)(ii),
        or
4.2(a)(iii)
        shall be
        adjusted to equal the price determined by multiplying the Exercise Price
        in
        effect immediately prior to such effective date by a fraction of which the
        numerator shall be the total number of Common Shares outstanding immediately
        prior to such date and the denominator shall be the total number of Common
        Shares immediately after such date (including, in the case where securities
        exchangeable for or convertible into common shares are distributed, the number
        of common shares that would have been outstanding had all such securities
        been
        exchanged for or converted into common shares on such effective date or record
        date.). Such adjustment shall be made successively whenever any event referred
        to in this subsection 4.2(a)
        shall
        occur.

       

      
        	(b)	
                If
                  and whenever at any time after the date hereof, the Corporation
                  shall fix
                  a record date which is prior to the Time of Expiry for the issue
                  of
                  rights, options or warrants to all or substantially all the holders
                  of
                  outstanding Common Shares under which such holders are entitled
                  during a
                  period expiring not more than sixty (60) days after the record
                  date for
                  such issue to subscribe for or purchase Common Shares, or securities
                  convertible into or exchangeable for Common Shares, at a price
                  per Common
                  Share or having a conversion or exchange price per Common Share
                  less than
                  the Current Market Price per Common Share on such record date,
                  the
                  Exercise Price shall be adjusted immediately after such record
                  date so
                  that it shall equal the price determined by multiplying the Exercise
                  Price
                  in effect on such record date by a fraction of which the numerator
                  shall
                  be the total number of Common Shares outstanding on such record
                  date plus
                  a number of Common Shares equal to the number arrived at by dividing
                  the
                  aggregate price of the total number of additional Common Shares
                  offered
                  for subscription or purchase, or the aggregate conversion or exchange
                  price of the convertible securities so offered, by such Current
                  Market
                  Price per Common Share, and of which the denominator shall be the
                  total
                  number of Common Shares outstanding on such record date plus the
                  total
                  number of additional Common Shares offered for subscription or
                  purchase
                  (or into which the convertible securities so offered are convertible
                  or
                  exchangeable). If by the terms of the rights, options or warrants
                  referred
                  to in this subsection 4.2(b),
                  there is more than one purchase, conversion or exchange price per
                  Common
                  Share, the aggregate price of the total number of additional Common
                  Shares
                  offered for subscription or purchase, or the aggregate conversion
                  or
                  exchange price of the convertible securities so offered, shall
                  be
                  calculated for purposes of the adjustment on the basis of the lowest
                  purchase, conversion or exchange price per Common Share, as the
                  case may
                  be. Any Common Shares owned by or held for the account of the Corporation
                  or any subsidiary of the Corporation shall be deemed not to be
                  outstanding
                  for the purpose of any such computation. To the extent that any
                  adjustment
                  in Exercise Price occurs pursuant to this subsection 4.2(b)
                  as
                  a result of the fixing by the Corporation of a record date for
                  the
                  distribution of rights, options or warrants referred to in this
                  subsection
                  4.2(b),
                  the Exercise Price shall be readjusted immediately after the expiration
                  of
                  any relevant exchange, conversion or exercise right to the Exercise
                  Price
                  which would then be in effect based upon the number of Common Shares
                  actually issued and remaining issuable after such expiration, and
                  shall be
                  further readjusted in such manner upon expiration of any further
                  such
                  right.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      
        	
                (c)

              	
                If
                  and whenever at any time prior to the Time of Expiry, the Corporation
                  shall fix a record date which is prior to the Time of Expiry for
                  the issue
                  or distribution to all or substantially all the holders of its
                  outstanding
                  Common Shares of:

              

      

       

      
        	
              	(i)	
                shares
                  of any class other than Common Shares (excluding Dividends Paid
                  in the
                  Ordinary Course);

              

      

       

      
        	
              	(ii)	
                rights,
                  options or warrants (excluding those referred to in subsection
                  4.2(b));

              

      

       

      
        	
              	(iii)	
                evidences
                  of its indebtedness; or

              

      

       

      
        	
              	(iv)	
                any
                  other property or assets (excluding Dividends Paid in the Ordinary
                  Course);

              

      

       

      then,
        and
        in each such case, the Exercise Price shall be adjusted immediately after
        such
        record date so that it shall equal the price determined by multiplying the
        Exercise Price in effect on such record date by a fraction, of which the
        numerator shall be the total number of Common Shares outstanding on such
        record
        date multiplied by the Current Market Price on such record date, less the
        aggregate fair market value (as determined by the Corporation, which
        determination shall be conclusive) of such shares, rights, options, warrants,
        evidences of indebtedness or assets so issued or distributed, and of which
        the
        denominator shall be the total number of Common Shares outstanding on such
        record date multiplied by such Current Market Price, and any Common Shares
        owned
        by or held for the account of the Corporation or any subsidiary of the
        Corporation shall be deemed not to be outstanding for the purpose of any
        such
        computation. Such adjustment shall be made successively whenever such a record
        date is fixed, and to the extent that such distribution is not so made, the
        Exercise Price shall then be readjusted to the Exercise Price which would
        then
        be in effect if such record date had not been fixed or to the Exercise Price
        which would then be in effect based upon such shares, rights, options, warrants,
        evidences of indebtedness or assets actually distributed, as the case may
        be.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      
        	
                4.3

              	
                General
                  Adjustments

              

      

       

      
        	
              	(a)	
                If
                  necessary, appropriate adjustments shall be made in the application
                  of the
                  provisions set forth in this Article 4
                  with respect to the rights and interests thereafter of the holders
                  of
                  Warrants to the end that the provisions set forth in this Article 4
                  shall thereafter correspondingly be made applicable as nearly as
                  may
                  reasonably be possible in relation to any shares or other securities
                  or
                  property thereafter deliverable upon the exercise of any Warrant.
                  Any such
                  adjustments shall be made by and set forth in an amendment to this
                  Warrant
                  Certificate hereto approved by the directors of the Corporation
                  and shall
                  for all purposes conclusively be deemed to
                  be
                  an appropriate adjustment.

              

      

       

      
        	
              	(b)	
                If
                  any case in which this Article 4
                  shall require that an adjustment shall become effective immediately
                  after
                  a record date for an event referred to herein, the Corporation
                  may defer,
                  until the occurrence of such event, issuing to the Holder of any
                  Warrant
                  exercised after such event the additional Common Shares issuable
                  upon such
                  conversion by reason of the adjustment required by such event before
                  giving effect to such adjustment; provided, however, that the Corporation
                  shall deliver to such Holder an appropriate instrument evidencing
                  such
                  Holder's right to receive such additional Common Shares upon the
                  occurrence of the event requiring such adjustment and the right
                  to receive
                  any distributions made on such additional Common Shares declared
                  in favour
                  of holders of record of Common Shares on and after the relevant
                  date of
                  exercise or such later date as such Holder would, but for the provisions
                  of this subsection 4.3(b),
                  have become the Holder of record of such additional Common Shares
                  as a
                  result of the exercise of the
                  Warrants.

              

      

       

      
        	
              	(c)	
                No
                  adjustment in the Exercise Price or in the number of shares to
                  be issued
                  pursuant to the exercise of the Warrants shall be required unless
                  such
                  adjustment would result in a change of at least 1% in the Exercise
                  Price
                  then in effect or unless the number of shares to be issued would
                  change by
                  at least 1/100th of a share, provided, however, that any adjustments
                  which, except for the provisions of this subsection 4.3(c)
                  would otherwise have been required to be made, shall be carried
                  forward
                  and taken into account in any subsequent
                  adjustment.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      
        	
              	
                (d)

              	
                The
                  adjustments provided for in this Article 4
                  in
                  the Exercise Price and in the number and classes of shares which
                  are to be
                  received on the exercise of Warrants are cumulative. After any
                  adjustment
                  pursuant to this Section, the term "Common Shares" where used in
                  this
                  Warrant shall be interpreted to mean the shares or other securities
                  or
                  property of the Corporation which, as a result of all prior adjustments
                  pursuant to this Section, the Warrantholder is entitled to receive
                  upon
                  the exercise of his Warrant, and the number of Common Shares indicated
                  in
                  any subscription made pursuant to a Warrant shall be interpreted
                  to mean
                  the number and kind of securities or property which, as a result
                  of all
                  prior adjustments pursuant to this Article 4,
                  a
                  Warrantholder is entitled to receive upon the full exercise of
                  a Warrant
                  entitling the Holder thereof to purchase the number of Common Shares
                  so
                  indicated.

              

      

       

      
        	
              	(e)	
                All
                  securities and property which a Warrantholder is at the time in
                  question
                  entitled to receive on the full exercise of his Warrant, whether
                  or not as
                  a result of adjustments made pursuant to this Section, shall, for
                  the
                  purposes of the interpretation of this Warrant be deemed to be
                  securities
                  and property which such Warrantholder is entitled to purchase pursuant
                  to
                  such Warrant.

              

      

       

      
        	4.4	
                Notice
                  of Adjustment

              

      

       

      Whenever
        the number of Common Shares purchasable upon the exercise of each Warrant
        or the
        Exercise Price of such Common Shares is adjusted, as herein provided, the
        Corporation shall promptly send to the Warrantholder by first class mail,
        postage prepaid, notice of such adjustment or adjustments.

       

      ARTICLE 5

      COVENANTS
        BY THE CORPORATION

      

      
        	5.1	
                Covenants
                  by the Corporation

              

      

       

      The
        Corporation hereby covenants and agrees as follows:

      

      
        	(a)	
                it
                  will at all times maintain its corporate existence and will carry
                  on its
                  business as currently carried on;

              

      

       

      
        	(b)	
                it
                  will reserve and there will remain unissued out of its authorized
                  capital
                  a sufficient number of Common Shares to satisfy the rights of acquisition
                  provided for in the Warrant Certificate;
                  and

              

      

       

      
        	(c)	
                all
                  Common Shares issued upon exercise of the right to purchase provided
                  for
                  herein shall, upon payment of the Exercise Price therefor, be issued
                  as
                  fully paid and non-assessable
                  shares.

              

      

       

      ARTICLE 6

      MERGER
        AND SUCCESSORS

      

      
        
          	6.1	
                  Corporation
                    May Consolidate, etc. on Certain
                    Terms

                

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

         

      

      Nothing
        herein contained shall prevent any consolidation, reorganization, amalgamation,
        arrangement or merger of the Corporation with or into any other body corporate,
        trust, partnership or other entity, or a conveyance or transfer of all or
        substantially all the properties and assets of the Corporation as an entirety
        or
        substantially as an entirety to any other body corporate, trust, partnership
        or
        other entity lawfully entitled to acquire and operate same, provided, however,
        that the other body corporate, trust, partnership or other entity formed
        by such
        reorganization, consolidation, amalgamation, arrangement or merger or which
        acquires by conveyance or transfer all or substantially all the properties
        and
        assets of the Corporation shall, simultaneously with such reorganization,
        consolidation, amalgamation, arrangement, merger, conveyance or transfer,
        assume
        the due and punctual performance and observance of all the covenants and
        conditions hereof to be performed or observed by the Corporation.

      

      
        
          	6.2	
                  Successor
                    Corporation Substituted

                

        

      

       

      In
        case
        the Corporation, pursuant to Section 6.1,
        shall
        be reorganized, consolidated, amalgamated, arranged, or merged with or into
        any
        other body corporate, trust, partnership or other entity, or shall convey
        or
        transfer all or substantially all of its properties and assets as an entirety
        or
        substantially as an entirety to any other body corporate, trust, partnership
        or
        other entity, the successor formed by such reorganization, consolidation,
        amalgamation, arrangement or merger or into which the Corporation shall have
        been reorganized, consolidated, amalgamated, arranged or merged or which
        shall
        have received a conveyance or transfer as aforesaid, shall succeed to and
        be
        substituted for the Corporation hereunder and such changes in phraseology
        and
        form (but not in substance) may be made in the Warrant Certificate and herein
        as
        may be appropriate in view of such reorganization, consolidation, amalgamation,
        arrangement, merger, conveyance or transfer.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

        APPENDIX
          1

         

      

      
        

      

       

      TRANSFER
        FORM

      

      FOR
        VALUE
        RECEIVED, the undersigned hereby sells, assigns and transfers to
        _____________________________________, __________________ Warrants of
Deep
        Well Oil & Gas, Inc. registered
        in the name of the undersigned on the records of Deep
        Well Oil & Gas, Inc. represented
        by the Warrant Certificate attached hereto and irrevocably appoints Deep
        Well Oil & Gas, Inc. the
        attorney of the undersigned to transfer the said securities on the books
        or
        register with full power of substitution. 

      

      DATED
        the
        ______ day of ________________, 200__.

      

      

      
        	 	 	 	 
	Signature Guaranteed	 	Signature of Holder	 
	 	 	 	 

      

        

      Instructions:

      

      
        	1.	
                The
                  signature of the Holder must be the signature of the person appearing
                  on
                  the face of this Certificate.

              

      

      

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

              

      

      

      
        	3.	
                The
                  signature on the Transfer Form must be guaranteed by an authorized
                  officer
                  of a chartered bank, trust Corporation or an investment dealer
                  who is a
                  member of a recognized stock
                  exchange.

              

      

      

      
        	4.	
                Warrants
                  shall only be transferable in accordance with applicable laws.
                  The
                  Warrants and the Common Shares issuable thereunder are subject
                  to resale
                  restrictions and hold periods which will prevent the Holder, except
                  in
                  very limited circumstances from trading such securities. Holders
                  should
                  consult their legal advisors in this
                  regard.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      WARRANT
        EXERCISE FORM

      

      TO: Deep
        Well
        Oil & Gas, Inc.

      

      The
        undersigned Holder of the within Warrant(s) hereby subscribes for
        _______________ Common Shares of Deep Well Oil & Gas, Inc. (the
        "Corporation") (or such number of Common Shares or other securities or property
        to which such exercise entitles the undersigned in lieu thereof or in addition
        thereto under the provisions of the Warrant Certificate) pursuant to the
        within
        Warrant(s) at US$0.60 per share (or the adjusted dollar amount per share
        at
        which the undersigned is entitled to purchase such shares under the provisions
        of the Warrant(s) subscribed for above) prior to 5:00 p.m. (Edmonton time)
        on
        the Expiry Date on the terms specified in the said Warrant Certificate, which
        certificate is surrendered to the Corporation and which will, upon the issuance
        of the Common Shares referred to above and the issuance of a new Warrant
        for any
        outstanding rights of the surrendered Warrant, be null and void. The undersigned
        also encloses herewith a certified cheque, bank draft or money order or has
        transmitted good same day funds by wire or other similar transfer, in lawful
        money of the United States, payable to or to the order of Deep Well Oil &
Gas, Inc. in payment of the exercise price.

      

      In
        order
        to exercise any Warrants represented by this certificate, the person exercising
        Warrant(s) must check one of the following:

      [PLEASE
        CHECK ONE]

      
        	o	
                The
                  undersigned Holder (i) at the time of exercise of these Warrants
                  is not in
                  the United States; (ii) is not a "U.S. person" as defined in Regulation
                  S
                  under the United States Securities Act of 1933, as amended (the
                  "U.S.
                  Securities Act"), and is not exercising these Warrants on behalf
                  of a
                  "U.S. person"; (iii) did not acquire the Warrants in the United
                  States;
                  and (iv) did not execute or deliver this Warrant Exercise Form
                  in the
                  United States; or

              

        	 	 

      

      
        	o	
                The
                  undersigned certifies that an exemption from registration under
                  the U.S.
                  Securities Act and any applicable state securities laws is available,
                  and
                  attached hereto is an opinion of counsel to such effect, it being
                  understood that any opinion of counsel tendered in connection with
                  the
                  exercise of these Warrants must be in form and substance satisfactory
                  to
                  the Corporation; or

              

        	 	 

      

      
        	o	
                The
                  undersigned certifies that the undersigned is the original purchaser
                  of
                  the Warrant(s) being exercised and confirms as of the date hereof,
                  the
                  representations, warranties and agreements made by the undersigned
                  in the
                  subscription agreement pursuant to which such Warrant(s) was acquired
                  by
                  it.

              

      

       

      The
        undersigned directs that the said Common Shares hereby exercised, be issued
        and
        delivered as follows:

      
         

        
          	Name in full	 	Address(es) (Include Postal
                  Code)  	 	# of Common
                  Shares
	 	 	 	 	 
	(Please print full name
                  in which
                  certificates are to be issued. If any of the securities are to
                  be issued
                  to a person or persons other than the undersigned, the undersigned
                  Holder
                  must pay to the Corporation all requisite taxes or other governmental
                  charges.)

        

          

      

      

      DATED
        this  ______________
        day
        of  _____________,
        200___ .

       

      
         

        
          	
                	 	
                	
                
	Witness 	 	Signature
                  of Warrantholder (or its representative if not an
                  individual).	 
	 	 	 	 
	Print name
                  and address of
                  Warrantholder in full
	 	 	 	 
	Name: 	 	Address:	 
	 	 	 	 
	 	 	 	 
	
                  Title
                    of person signing on behalf of Holder (if

                  subscriber
                    is not an individual):

                	 	 	 
	 	 	 	 
	 	 	Signature Guaranteed	 

      

       

      
        	1.	
                If
                  the Warrant Exercise Form indicates that Common Shares are to be
                  issued to
                  a person or persons other than the registered Holder of the certificate,
                  the signature of such Holder of the Warrant Exercise Form must
                  be
                  guaranteed by an authorized officer of a chartered bank, trust
                  corporation
                  or an investment dealer who is a member of a recognized stock
                  exchange.

              

      

       

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

              

      

       

      
        	3.	
                If
                  the registered Holder exercises its right to receive Common Shares
                  prior
                  to expiry of any hold period or other resale restriction placed
                  on the
                  Warrants by the securities laws of any applicable jurisdiction
                  or the
                  requirements of any applicable stock exchange, the certificates
                  evidencing
                  the Common Shares thereby issued will bear such legend as is required
                  under applicable securities laws and that, in the opinion of legal
                  counsel
                  to the Corporation, be necessary in order to avoid a violation
                  of any such
                  laws or requirements.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]