Document:

EXHIBIT 4.1
                       SECURED CONVERTIBLE PROMISSORY NOTE

$750,000                                                        October 28, 2005

      FOR VALUE RECEIVED,  the undersigned,  EL CAPITAN PRECIOUS METALS, INC., a
Nevada  corporation  (the  "Maker"),  hereby  promises  to pay to the  order  of
Whitebox   Intermarket   Partners,   L.P.,  a  British  Virgin  Islands  limited
partnership,  or its  assigns  (the  "Payee"),  at such  place as the  Payee may
designate in writing,  the principal sum of Seven Hundred Fifty Thousand Dollars
($750,000), under the terms set forth herein.

1. Interest.  The unpaid principal  balance hereof from time to time outstanding
shall bear  interest  from the date hereof at the rate of eight percent (8%) per
annum.

2. Payment of Interest  and  Principal.  The  principal  and interest  hereof is
payable as follows:

      (a) On each of November 25 and December  25, 2005,  and on each of January
25,  February  25,  March  25  and  April  25,  2006,   payments  of  $5,000.00,
representing accrued, but unpaid,  interest on the outstanding principal balance
hereof, shall be due and payable.

      (b) The entire outstanding  principal amount of the Note together with all
accrued,  but  unpaid,  interest  shall  thereafter  be due in full in a balloon
payment on April 28, 2007 (the "Scheduled Maturity Date").

      (c) Maker cannot  prepay this Note prior to the  Scheduled  Maturity  Date
without Payee's prior written consent,  except as provided in this Section 2(c).
On May 25, 2006,  and on the 25th day of each of the following 11 months,  Maker
may, at its election,  prepay a portion of this Note (with all payments  applied
first to accrued, but unpaid, interest and then to principal) by the issuance of
shares of its $0.001 par value common stock (the "Common Stock"),  as follows (a
"Monthly Stock Prepayment"):

            (i) To make a Monthly  Stock  Prepayment as of any  particular  date
above,  the Maker must give the Payee  written  notice not less than 30 calendar
days prior to the intended Monthly Stock Prepayment date of the dollar amount of
the  intended  prepayment.  After  application  of the  limitations  below,  the
prepayment must be for at least $50,000, but cannot exceed $100,000. Once having
given such notice,  the Maker is required to make the  particular  Monthly Stock
Prepayment in accordance  with, and subject to the  limitations of, this Section
2(c).

            (ii) The number of shares of Common Stock which may be issued to pay
all or any  portion of a  particular  Monthly  Stock  Prepayment  amount may not
exceed the lesser of (i) 15% of the aggregate  number of traded shares of Common
Stock reported on the Nasdaq System (or if not then traded on the Nasdaq System,
on the OTC Bulletin  Board as reported by  bigcharts.com,  or if this service is
discontinued,  such other reporting service acceptable to Payee) for the trading
days in the 30 calendar days immediately preceding such Monthly Stock Prepayment
date or (ii) the greatest number of shares of Common Stock which,  when added to
the number of shares of Common Stock  "Beneficially  Owned"  (within the meaning
set  forth in  subsection  3(c)  below)  by  Payee,  would  not  cause  Payee to
Beneficially  Own more than 4.99% of the Maker's  outstanding  Common Stock.  In
computing  under this Section  2(c)(ii) the  aggregate  number of traded  shares
during any time  period,  the Maker shall  exclude (i) shares sold by or for the
account or at the direction of the Maker,  officers or directors of Maker or any
members of their  immediate  families or any affiliates of Maker and (ii) shares
determined  solely  by Payee  (for  which  Payee  shall so  inform  the Maker in
writing) to represent unlawful or potentially unlawful sales.

<PAGE>

            (iii) Maker may make a Monthly Stock Prepayment only if, at the time
of such  payment,  Maker has in effect a  registration  statement on Form S-3 or
SB-2 with the U.S. Securities and Exchange Commission (the "SEC") and applicable
state securities laws covering the original issuance of such shares by the Maker
or the resale of such shares by the Payee (the "Registration Statement").

            (iv) The  per-share  value  of the  Common  Stock as of a  specified
Monthly  Stock  Prepayment  date for the  purposes of this  Section  2(c) is 85%
(rounded to the nearest  $.01) of the average  (rounded to the nearest  $.01) of
the high closing bid prices of Maker's  Common Stock on the Nasdaq System (or if
not then traded on the Nasdaq System, then on the OTC Bulletin Board as reported
by  bigcharts.com,  or if this  service is  discontinued,  such other  reporting
service  acceptable  to Payee) for the trading days during the 30 calendar  days
immediately preceding the particular Monthly Stock Prepayment date.

            (v)  Payment by Common  Stock shall be deemed to be made by Maker by
giving  written notice to the Payee of the number of shares being issued in such
payment, and the Maker's calculation of the per-share market value under Section
2(c)(iv) above;  provided that certificates  representing  those shares are (and
they shall be)  delivered  to Payee  within 20 calendar  days of the date of the
particular Monthly Stock Prepayment.

3. Conversion.

      (a) At any  time  prior to the  payment  of this  Note in full  (including
during the notice  period prior to any Monthly  Stock  Prepayment by the Maker),
the  Payee may give the Maker  written  notice  (the  "Payee's  Notice")  of its
intention  to convert all or any  portion of the  outstanding  principal  and/or
accrued but unpaid interest on this Note into shares of the Maker's Common Stock
based on a  conversion  rate of $0.50 per share (the  "Conversion  Rate").  Upon
receipt of the Payee's notice,  the Maker shall immediately  cause  certificates
representing  these shares to be delivered to Payee within 20 calendar  days of,
and Payment shall be deemed to have been made on, the date of such notice.

      (b)  The  Conversion  Rate  shall  be  adjusted   proportionally  for  any
subsequent  stock  dividend  or  split,   stock  combination  or  other  similar
recapitalization,  reclassification  or  reorganization  of or affecting Maker's
Common Stock.  Subject to Section 4, in case of any  consolidation  or merger to
which the Maker is a party  other  than a merger or  consolidation  in which the
Maker is the continuing  corporation,  or in case of any sale, transfer or other
disposition to another  corporation of all or  substantially  all of the Maker's
assets,  or in the case of any  statutory  exchange of  securities  with another
corporation  (including any exchange  effected in connection  with a merger of a
third  corporation into the Maker),  then instead of receiving shares of Maker's
Common  Stock,  Payee  shall have the right  thereafter  to receive the kind and
amount of shares of stock and  other  securities  and  property  which the Payee
would  have  owned or have been  entitled  to  receive  immediately  after  such
consolidation, merger, statutory exchange, sale or transfer had the same portion
of this Note been  converted  immediately  prior to the  effective  date of such
consolidation,  merger,  statutory  exchange,  sale or transfer and, in any such
case, if necessary,  appropriate  adjustment shall be made in the application of
the  provisions  set  forth in this  Section  with  respect  to the  rights  and
interests  thereafter of the Payee,  to the end that the provisions set forth in
this Section shall thereafter  correspondingly be made applicable,  as nearly as
may reasonably  be, in relation to any shares of stock and other  securities and
property thereafter  deliverable in connection with this Note. The provisions of
this subsection  shall similarly  apply to successive  consolidations,  mergers,
statutory exchanges, sales or transfers.

                                       2
<PAGE>

      (c) Despite anything above to the contrary, the Payee may not convert this
Note into Common  Stock  under this  Section 3 during the time period and to the
extent that the shares of Maker's Common Stock that the Payee could acquire upon
the conversion would cause Payee's Beneficial  Ownership of Maker's Common Stock
to exceed 4.99% of Maker's outstanding Common Stock; provided, however, that the
limitations  on the right to exercise a warrant for Common Stock being issued to
Payee in connection with this Note (the "Warrant"), as provided by such Warrant,
shall first reduce Payee's  Beneficial  Ownership of Maker's Common Stock before
limitation of Payee's  conversion rights hereunder;  and provided further,  that
the limitation of Payee's conversion rights hereunder shall first reduce Payee's
Beneficial  Ownership  before limiting the number of shares that Maker may issue
to Payee as prepayment hereunder pursuant to Section 2(c) above. The Payee will,
at the request of Maker, from time to time, notify Maker of Payee's  computation
of Payee's Beneficial  Ownership.  The parties shall compute Payee's "Beneficial
Ownership" of Maker's Common Stock in accordance with SEC Rule 13d-3. By written
notice to the Company,  Payee may waive the provisions of this Section 3(c), but
any such  waiver  shall  not be  effective  until  the 61st day  after  delivery
thereof.

      (d) If (but only if) the Common  Stock  shall be listed for trading on the
Nasdaq  System during the term of this Note,  then,  unless the Maker shall have
obtained the approval of its voting  shareholders to such issuance in accordance
with the rules of Nasdaq or such other  stock  market with which the Maker shall
be required to comply (but only to the extent required thereby), the Maker shall
not issue shares of Common Stock upon  conversion of the Note,  which when added
to the  number of shares of  Common  Stock  previously  issued by Maker (i) upon
conversion  of the Note and (ii) upon  exercise of the  Warrant,  would equal or
exceed 20% of the number of shares of the Maker's Common Stock which were issued
and outstanding on the date of issuance (the "Maximum Issuance Amount").  In the
event that a properly executed  conversion notice is received by the Maker which
would require the Maker to issue shares of Common Stock equal to or in excess of
the Maximum  Issuance Amount,  the Maker shall honor such conversion  request by
(i)  converting the Note into the number of shares of Common Stock stated in the
conversion  notice but not in excess of the Maximum  Issuance  Amount,  and (ii)
redeeming the number of shares of Common Stock stated in the  conversion  notice
equal to or in excess of the Maximum Issuance Amount in cash at a price equal to
the  then-current  fair  market  value  (i.e.,  the closing bid price of Maker's
Common Stock on the Nasdaq  System,  or if not then traded on the Nasdaq System,
then on the OTC Bulletin Board as reported by bigcharts.com,  or if this service
is discontinued,  such other reporting service  acceptable to Payee) on the date
of redemption.

                                       3

<PAGE>

4. Change in Control.  The Maker (and its  controlling  stockholders)  shall not
enter into a Change in Control of Maker  without  the prior  written  consent of
Payee.  For  purposes of this Note,  a "Change in  Control"  means (i) the sale,
transfer,  lease,  exchange or other  disposition of all or substantially all of
the assets of the Maker (in one transaction or in a series of  transactions)  to
any entity that is not controlled by or under common control with the Maker,  or
(ii) a merger, consolidation, change of ownership or reorganization if more than
50% of the  combined  voting  power  of the  continuing  or  surviving  entity's
securities outstanding immediately after such merger,  consolidation,  change of
ownership or reorganization is owned by persons who were not security holders of
the Maker immediately prior to such merger,  consolidation,  change of ownership
or reorganization.

5. Contingent  Additional Interest. In the event that Maker fails within 30 days
of the date hereof to file the Registration  Statement with the SEC, or fails to
obtain  effectiveness  under  the  Securities  Act  of  1933,  as  amended,  and
applicable state  securities laws of the Registration  Statement within 120 days
of the date  hereof  (all as  required  by the  terms of a  Registration  Rights
Agreement of this date between  Maker and Payee),  covering all of the shares of
Common Stock  issuable  upon  conversion  of this Note,  payment on this Note or
exercise of a Warrant  issued in connection  herewith,  then for each full month
thereafter  (prorated for partial  months) that either or both of these failures
continues (the "Failure Term"),  this Note shall accrue additional interest (the
"Contingent  Additional  Interest")  equal to the greater of $2,500 or 1% of the
outstanding  principal  balance  on this  Note as of the last  day of the  prior
month.  Despite the  foregoing,  if the Payee  consents (as  provided  under the
Registration  Rights  Agreement) to an extension of the filing or effective date
of  the  Registration   Statement  beyond  the  original  deadlines,   then  the
commencement of Contingent  Additional Interest hereunder shall be extended by a
like period.  Contingent  Additional  Interest will accrue  hereunder on a daily
basis.  Contingent  Additional Interest accrued hereunder prior to the Scheduled
Maturity  Date will be added to the  principal  balance  hereof (and will accrue
interest  thereon  as  provided  by  Section 1 above)  and is due in full on the
Scheduled Maturity Date.  Contingent Additional Interest accrued hereunder after
the  Scheduled  Maturity  Date is payable  on the 25th of each  month  until the
Registration Statement is filed and effective as provided above.

6. Security. The full and timely payment of this Note (together with the Maker's
obligations  under a Purchase  Agreement of this date  between  Maker and Payee)
shall be secured by a Security Agreement of this date (the "Security Agreement")
covering  all of Maker's  assets,  including  all of the  capital  stock of U.S.
Canadian Minerals,  Inc., a Nevada corporation ("UCAD"),  owned by Maker and the
Maker's interest in that certain joint venture with UCAD,  subject to a priority
security interest in 1,000,000 shares of UCAD capital stock granted by the Maker
to a third party ("UCAD Security Interest").  Upon the filing of a UCC financing
statement, the security interest granted under the Security Agreement shall be a
first priority security  interest  subordinate to no other secured rights except
for the UCAD Security  Interest,  in which Payee shall have a secondary security
interest.

                                       4
<PAGE>

7. Default.  The  occurrence  of any one or more of the  following  events shall
constitute  an event of  default,  upon  which  Payee  may  declare  the  entire
principal amount of this Note, together with all accrued but unpaid interest, to
be immediately due and payable in cash:

      (a) The Maker  shall fail to make  payment of  interest  on the Note under
Section 2(a) or any required payment of Contingent  Additional Interest when due
and payable  under  Section 5, and either such  failure is not cured within five
days after Payee gives written notice of such failure to Maker.

      (b) The Maker shall fail to make the balloon payment of principal required
by  Section  2(b) on the  Scheduled  Maturity  Date or to  make  (by the  timely
issuance  of  certificates  representing  shares of Common  Stock) any  required
Monthly  Stock  Prepayment  (once having given Payee  written  notice of Maker's
intention to do so) when due and payable  under  Section  2(c),  and either such
failure is not cured within five days after Payee gives  written  notice of such
failure to Maker.

      (c) The Maker shall be in material default of any term or provision of the
Purchase Agreement, the Security Agreement, the Registration Rights Agreement or
the  Warrant,  and such  failure is not cured  within ten days after Payee gives
written notice of such default to Maker.

      (d) The  Maker  fails to  obtain  the prior  written  consent  of Payee as
required by Section 4 above.

      (e) The Maker  shall  become  insolvent  or shall  fail to pay,  or become
unable to pay, its debts as they become due or any  bankruptcy,  reorganization,
debt  arrangement  or other  proceeding  under any  bankruptcy or insolvency law
shall be instituted by or against the Maker.

      (f) Any  representation or warranty of the Maker contained in the Purchase
Agreement,  the Registration  Rights  Agreement,  the Security  Agreement or the
Warrant shall have been false in any material respect on the Closing Date.

      (g) The Maker shall be in default under an  Additional  Note or Additional
Warrant,  if any,  issued  by Maker to Payee or its  affiliates  after  the date
hereof.

      Without  limiting the above, the Maker  acknowledges  that payments on the
various  dates in Sections 2 and 5 are of essence and that any failure to timely
pay the principal or interest  (within any permitted grace period) permits Payee
to declare this Note  immediately due in cash in its entirety  without any prior
notice of any kind to Maker, except for the specific notices provided above.

8. Applicable Law. THE VALIDITY,  CONSTRUCTION  AND  ENFORCEABILITY  OF THE NOTE
SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA, WITHOUT GIVING
EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF.

                                       5
<PAGE>

9. Waivers. The Maker hereby waives presentment for payment, notice of dishonor,
protest  and notice of payment and all other  notices of any kind in  connection
with the enforcement of this Note.

10. No  Setoffs.  The Maker  shall pay  principal  and  interest  under the Note
without any deduction for any setoff or counterclaim.

11. Costs of Collection.  If this Note is not paid when due, the Maker shall pay
Payee's reasonable costs of collection, including reasonable attorney's fees.

                                        EL CAPITAN PRECIOUS METALS, INC.

                                        By: /s/ Charles C. Mottley
                                          --------------------------------------
                                           Charles C. Mottley, President and
                                           Chief Executive Officer

                                       6EXHIBIT 4.2

                                WARRANT NO. WIP-1

                   To Purchase 500,000 Shares of Common Stock
                                       of
                        EL CAPITAN PRECIOUS METALS, INC.
                                 ---------------

      This Warrant and the  Securities  issuable  upon  exercise of this Warrant
have not been  registered  under the  Securities Act of 1933 (the "1933 Act") or
under any state  securities  or "Blue Sky" laws ("Blue Sky Laws").  No transfer,
sale, assignment,  pledge, hypothecation or other disposition of this Warrant or
the  Securities  issuable upon exercise of this Warrant or any interest  therein
may be made except (a) pursuant to an effective registration statement under the
1933 Act and any  applicable  Blue Sky Laws or (b) if the  Corporation  has been
furnished  with an opinion of counsel for the holder,  which opinion and counsel
shall be  reasonably  satisfactory  to the  Corporation,  to the effect  that no
registration  is  required  because of the  availability  of an  exemption  from
registration under the 1933 Act and applicable Blue Sky laws.

      THIS  CERTIFIES  THAT,  for  good  and  valuable   consideration  Whitebox
Intermarket  Partners,  L.P., a British Virgin Islands limited  partnership (the
"Holder"),  or the Holder's registered assigns, is entitled to subscribe for and
purchase  from El Capitan  Precious  Metals,  Inc.,  a Nevada  corporation  (the
"Corporation"),  at any time on or after  October  28,  2005,  to and  including
October 28,  2010  (subject  to the  limitations  provided in Section 10 below),
500,000 fully paid and  nonassessable  shares of Common Stock of the Corporation
at the price of $0.60 per share (the "Warrant Exercise  Price"),  subject to the
anti-dilution and price protection provisions of this Warrant.

      The  shares  which may be  acquired  upon  exercise  of this  Warrant  are
referred to herein as the "Warrant  Shares." As used herein,  the term  "Holder"
means the  Holder,  any party who  acquires  all or a part of this  Warrant as a
registered  transferee  of the  Holder,  or any record  holder or holders of the
Warrant  Shares  issued  upon  exercise,  whether  in whole  or in part,  of the
Warrant.  The term "Common  Stock" means the common stock,  $0.001 par value per
share, of the Corporation.

      This Warrant is subject to the following provisions, terms and conditions:

1. Exercise; Transferability.

      (a) The rights  represented by this Warrant may be exercised by the Holder
hereof,  in whole or in part (but not as to a fractional share of Common Stock),
by written  notice of exercise (in the form  attached  hereto)  delivered to the
Corporation at the principal  office of the Corporation  prior to the expiration
of this  Warrant and  accompanied  or preceded by the  surrender of this Warrant
along with a check in payment of the  Warrant  Exercise  Price for such  Warrant
Shares.

<PAGE>

      (b) Except as provided in Section 7 hereof,  this Warrant may not be sold,
transferred,  assigned,  hypothecated  or divided  into two or more  Warrants of
smaller denominations, nor may any Warrant Shares issued pursuant to exercise of
this Warrant be  transferred.  In no event may this Warrant be  transferred  and
divided (without any exercise hereof) into any  denomination(s) of less than 100
Warrant Shares.

2. Exchange and Replacement. Subject to Sections 1 and 7 hereof, this Warrant is
exchangeable  upon the surrender  hereof by the Holder to the Corporation at its
office for new Warrants of like tenor and date representing in the aggregate the
right to purchase the number of Warrant Shares  purchasable  hereunder,  each of
such new  Warrants to  represent  the right to  purchase  such number of Warrant
Shares (not to exceed the aggregate total number purchasable hereunder) as shall
be designated by the Holder at the time of such  surrender.  Upon receipt by the
Corporation  of  evidence  reasonably  satisfactory  to it of the  loss,  theft,
destruction  or  mutilation  of this  Warrant,  and,  in case of loss,  theft or
destruction,  of indemnity or security  reasonably  satisfactory to it, and upon
surrender and cancellation of this Warrant,  if mutilated,  the Corporation will
make and  deliver a new  Warrant of like tenor,  in lieu of this  Warrant.  This
Warrant shall be promptly  canceled by the Corporation upon the surrender hereof
in connection  with any exchange or replacement.  The Corporation  shall pay all
expenses,  taxes (other than stock transfer taxes), and other charges payable in
connection with the preparation, execution, and delivery of Warrants pursuant to
this Section 2.

3. Issuance of the Warrant Shares.

      (a) The Corporation agrees that the Warrant Shares shall be and are deemed
to be issued to the Holder as of the close of business on the date on which this
Warrant shall have been surrendered and the payment made for such Warrant Shares
as  aforesaid.  Subject to the  provisions  of paragraph  (b) of this Section 3,
certificates  for the Warrant  Shares so  purchased  shall be  delivered  to the
Holder  within a reasonable  time after the rights  represented  by this Warrant
shall have been so  exercised,  and,  unless  this  Warrant has  expired,  a new
Warrant representing the right to purchase the number of Warrant Shares, if any,
with respect to which this Warrant shall not then have been exercised shall also
be delivered to the Holder.

      (b) Notwithstanding the foregoing,  however,  the Corporation shall not be
required to deliver any  certificate  for Warrant  Shares upon  exercise of this
Warrant except in accordance  with  exemptions  from the  applicable  securities
registration  requirements or registrations  under  applicable  securities laws.
Except as described in Section 9, nothing herein shall obligate the  Corporation
to effect registrations under federal or state securities laws. If registrations
are not in effect and if exemptions  are not available  when the Holder seeks to
exercise the Warrant, the Warrant exercise period will be extended,  if need be,
to prevent the Warrant from  expiring,  until such time as either  registrations
become effective or exemptions are available,  and the Warrant shall then remain
exercisable  for a  period  of at  least  30  calendar  days  from  the date the
Corporation  delivers to the Holder written notice of the  availability  of such
registrations  or  exemptions.  The Holder agrees to execute such  documents and
make such  representations,  warranties and agreements as may be required solely
to  comply  with  the  exemptions  relied  upon  by  the  Corporation,   or  the
registrations made, for the issuance of the Warrant Shares.

                                       2
<PAGE>

4. Covenants of the Corporation.  The Corporation  covenants and agrees that all
Warrant  Shares  will,  upon  issuance  pursuant  to the terms  hereof,  be duly
authorized and issued, fully paid, non-assessable and free from all taxes, liens
and charges with respect to the issue thereof. The Corporation further covenants
and agrees that during the period  within which the rights  represented  by this
Warrant may be exercised,  the Corporation will at all times have authorized and
reserved for the purpose of issue or transfer upon exercise of the  subscription
rights  evidenced by this Warrant a sufficient  number of shares of Common Stock
to provide for the exercise of the rights represented by this Warrant.

5.  Anti-dilution  Adjustments.  The  provisions  of this Warrant are subject to
adjustment as provided in this Section 5.

      (a) Stock Splits,  Dividends and Combinations.  The Warrant Exercise Price
shall be  adjusted  from time to time such  that in case the  Corporation  shall
hereafter:

            (i) pay any  dividends  on any  class of  stock  of the  Corporation
payable in Common Stock or securities convertible into Common Stock;

            (ii)  subdivide its then  outstanding  shares of Common Stock into a
greater number of shares; or

            (iii)   combine    outstanding    shares   of   Common   Stock,   by
reclassification or otherwise;

then, in any such event, the Warrant Exercise Price in effect  immediately prior
to  such  event  shall  (until  adjusted  again  pursuant  hereto)  be  adjusted
immediately  after such event to a price  (calculated  to the nearest full cent)
determined  by  dividing  (A) the number of shares of Common  Stock  outstanding
immediately  prior  to such  event,  multiplied  by the  then  existing  Warrant
Exercise  Price,  by (B) the total number of shares of Common Stock  outstanding
immediately  after  such event  (including  in each case the  maximum  number of
shares of Common Stock  issuable in respect of any securities  convertible  into
Common Stock), and the resulting quotient shall be the adjusted Warrant Exercise
Price per share.  An adjustment  made pursuant to this  Subsection  shall become
effective  immediately  after  the  record  date in the  case of a  dividend  or
distribution and shall become effective  immediately after the effective date in
the case of a subdivision,  combination or reclassification.  If, as a result of
an  adjustment  made  pursuant  to this  Subsection,  the Holder of any  Warrant
thereafter  surrendered  for exercise shall become entitled to receive shares of
two or more classes of capital stock or shares of Common Stock and other capital
stock of the Corporation,  the Board of Directors (whose  determination shall be
conclusive)  shall  determine the  allocation of the adjusted  Warrant  Exercise
Price  between or among  shares of such  classes  of capital  stock or shares of
Common Stock and other capital stock.  All  calculations  under this  Subsection
shall be made to the  nearest  cent or to the nearest  1/100 of a share,  as the
case may be. In the event  that at any time as a result  of an  adjustment  made
pursuant to this Subsection,  the holder of any Warrant  thereafter  surrendered
for  exercise  shall  become  entitled to receive any shares of the  Corporation
other than shares of Common Stock, thereafter the Warrant Exercise Price of such
other  shares so  receivable  upon  exercise of any Warrant  shall be subject to
adjustment  from time to time in a manner and on terms as nearly  equivalent  as
practicable  to the  provisions  with respect to Common Stock  contained in this
Section.

                                       3
<PAGE>

      (b) Mechanics of Adjustment for Stock Splits,  Dividends and Combinations.
Upon each  adjustment  of the Warrant  Exercise  Price  pursuant to Section 5(a)
above,  the  Holder  of  each  Warrant  shall  thereafter  (until  another  such
adjustment) be entitled to purchase at the adjusted  Warrant  Exercise Price the
number of shares,  calculated to the nearest full share, obtained by multiplying
the number of shares  specified  in such Warrant (as adjusted as a result of all
adjustments in the Warrant Exercise Price in effect prior to such adjustment) by
the Warrant  Exercise Price in effect prior to such  adjustment and dividing the
product so obtained by the adjusted Warrant Exercise Price.

      (c)  Consolidations,  Mergers and  Reorganization  Events.  In case of any
consolidation  or merger to which the Corporation is a party other than a merger
or consolidation in which the Corporation is the continuing  corporation,  or in
case of any sale, transfer or other disposition to another corporation of all or
substantially  all of the  assets  of the  Corporation,  or in the  case  of any
statutory  exchange  of  securities  with  another  corporation  (including  any
exchange  effected in connection with a merger of a third  corporation  into the
Corporation),  there shall be no adjustment under Subsection (a) of this Section
5; but the  Holder  of each  Warrant  then  outstanding  shall  have  the  right
thereafter  to convert  such Warrant into the kind and amount of shares of stock
and other securities and property which the Holder would have owned or have been
entitled to receive  immediately  after such  consolidation,  merger,  statutory
exchange,  sale or transfer had such Warrant been converted immediately prior to
the effective date of such consolidation,  merger,  statutory exchange,  sale or
transfer and, in any such case, if necessary,  appropriate  adjustment  shall be
made in the application of the provisions set forth in this Section with respect
to the rights and interests thereafter of any Holders of the Warrant, to the end
that the provisions set forth in this Section shall  thereafter  correspondingly
be made applicable, as nearly as may reasonably be, in relation to any shares of
stock and other securities and property  thereafter  deliverable on the exercise
of the Warrant.  The  provisions of this  Subsection  shall  similarly  apply to
successive consolidations, mergers, statutory exchanges, sales or transfers.

      (d) Adjustments for Diluting Issues. In addition to the adjustments of the
Warrant  Exercise  Price  provided  above,  the Warrant  Exercise Price shall be
subjected to further adjustment from time to time as follows (the main operative
provision hereof is in Section 5(d)(iii) below):

            (i) Special Definitions:

                  (A) "Options"  shall mean rights,  options or warrants  (other
than as excluded by Section  5(d)(i)(D)  below) to  subscribe  for,  purchase or
otherwise  acquire  either Common Stock or  Convertible  Securities  (as defined
herein).

                  (B) "Original Issue Date" shall mean the date hereof.

                                       4
<PAGE>

                  (C) "Convertible Securities" shall mean securities (other than
as  excluded  by Section  5(d)(i)(D)  below)  convertible,  either  directly  or
indirectly, into or exchangeable for Common Stock.

                  (D) "Additional  Shares of Common Stock" shall mean all shares
of Common Stock issued (or,  deemed to be issued) by the  Corporation  after the
Original  Issue Date other than shares of Common  Stock  issued (or deemed to be
issued):

                        1. to employees,  consultants  or directors  pursuant to
      stock option, stock grant, stock purchase or similar plans or arrangements
      approved by the Corporation's Board of Directors;

                        2. as a dividend  or other  distribution  in  connection
      with which an adjustment to the Warrant Exercise Price is made;

                        3. in a merger,  consolidation,  acquisition  or similar
      business  combination  that is  approved  by the  Corporation's  Board  of
      Directors;

                        4.  pursuant  to  credit,   lease  or  other  commercial
      financing  arrangements  with parties not affiliated  with the Corporation
      that are approved by the Corporation's Board of Directors;

                        5. in exchange for technology or other  non-cash  assets
      as approved by the Corporation's Board of Directors;

                        6. pursuant to any rights or agreements  outstanding  on
      the Original Issue Date; or

                        7. if the  Holder  agrees in  writing  that such  shares
      shall not constitute Additional Shares of Common Stock.

            (ii) Deemed Issue of Additional  Shares of Common  Stock.  Except as
otherwise  provided in Section 5(d), in the event the Corporation at any time or
from time to time  after the  Original  Issue Date  shall  issue any  Options or
Convertible  Securities or shall fix a record date for the  determination of any
holders  of any class of  securities  entitled  to receive  any such  Options or
Convertible  Securities,  then the maximum number of shares (as set forth in the
instrument  relating thereto without regard to any provisions  contained therein
for a subsequent  adjustment  of such number) of Common Stock  issuable upon the
exercise of such Options or, in the case of  Convertible  Securities and Options
therefor,  the conversion or exchange of such Convertible  Securities,  shall be
deemed to be  Additional  Shares of Common  Stock  issued as of the time of such
issue or, in case such  record  date shall have been  fixed,  as of the close of
business on such record date, provided that in any such case in which Additional
Shares of Common Stock are deemed to be issued:

                                       5
<PAGE>

                  (A) no further  adjustment in the Warrant Exercise Price shall
be made upon the subsequent  issue of such  Convertible  Securities or shares of
Common Stock upon the exercise of such Options or conversion or exchange of such
Convertible Securities;

                  (B) if such Options or  Convertible  Securities by their terms
provide, with the passage of time or otherwise,  for any increase or decrease in
the consideration  payable to the Company, or increase or decrease in the number
of shares of Common Stock  issuable  upon the  exercise,  conversion or exchange
thereof,  the Warrant Exercise Price computed upon the original issue thereof or
upon the  occurrence of a record date with respect  thereto,  and any subsequent
adjustments  based thereon,  shall,  upon any such increase or decrease becoming
effective, be recomputed to reflect such increase or decrease;

                  (C) upon the  expiration  of any such  Option or any rights of
conversion or exchange under such  Convertible  Securities  which shall not have
been  exercised,  the Warrant  Exercise  Price  computed upon the original issue
thereof  or upon  occurrence  of a record  date with  respect  thereto,  and any
subsequent adjustments based thereon, shall, upon such expiration:

                        1. in the case of Convertible  Securities or Options for
      Common Stock, be recomputed as though the only Additional Shares of Common
      Stock issued were shares of Common Stock, if any, actually issued upon the
      exercise of such Options or the conversion or exchange of such Convertible
      Securities,  and the consideration received therefor was the consideration
      actually  received  by the  Company  for the  issue of all  such  Options,
      whether or not exercised,  plus the consideration actually received by the
      Company  upon  such  exercise,  or for the  issue of all such  Convertible
      Securities,  whether or not  converted or exchanged,  plus the  additional
      consideration,  if  any,  actually  received  by  the  Company  upon  such
      conversion or exchange; and

                        2. in the case of Options for Convertible Securities, be
      recomputed as though only the  Convertible  Securities,  if any,  actually
      issued upon the exercise  thereof were issued at the time of issue of such
      Options and the  consideration  received by the Company for the Additional
      Shares  of  Common   Stock  deemed  to  have  been  then  issued  was  the
      consideration  actually  received by the Company for the issue of all such
      Options,  whether or not exercised,  plus the consideration deemed to have
      been received by the Company upon the issue of the Convertible  Securities
      with respect to which such Options were actually exercised.

                  (D) no  readjustment  pursuant to Section  5(d) shall have the
effect of increasing  the Warrant  Exercise Price to an amount which exceeds the
Warrant  Exercise Price existing  immediately  prior to the original  adjustment
with  respect to the  issuance of such  Options or  Convertible  Securities,  as
adjusted  for any  Additional  Shares of Common  Stock  issued  (or deemed to be
issued) between such original adjustment date and such readjustment date; and

                  (E) in the case of any  Option or  Convertible  Security  with
respect to which the  maximum  number of shares of Common  Stock  issuable  upon
exercise or conversion or exchange thereof is not determinable, no adjustment to
the Warrant Exercise Price shall be made until such number becomes determinable.

                                       6
<PAGE>

            (iii) Adjustments for Issuance of Additional Shares of Common Stock.
If the Company, at any time after the issuance of this Warrant,  shall issue any
Additional  Shares of Common Stock  (otherwise  than as provided in the Sections
5(a) and 5(c)  above)  at a price per share  less  than the  applicable  Warrant
Exercise  Price then in effect or  without  consideration,  then the  applicable
Warrant  Exercise  Price upon each such issuance shall be adjusted to that price
(rounded to the nearest cent)  determined by multiplying the applicable  Warrant
Exercise Price then in effect by a fraction, (i) the numerator of which shall be
equal  to the sum of (A) the  number  of  shares  of  Common  Stock  outstanding
immediately prior to the issuance of such Additional Shares of Common Stock plus
(B) the number of shares of Common  Stock  (rounded to the nearest  whole share)
which the aggregate consideration for the total number of such Additional Shares
of  Common  Stock so issued  would  purchase  at a price per share  equal to the
applicable  Warrant  Exercise Price then in effect,  and (ii) the denominator of
which  shall be equal to the  number  of  shares  of  Common  Stock  outstanding
immediately after the issuance of such Additional Shares of Common Stock.

            The provisions of this Section  5(d)(iii)  shall not apply under any
of the  circumstances for which an adjustment is provided in Sections 5(a), 5(b)
or 5(c) above. No adjustment of the applicable  Warrant  Exercise Price shall be
made under this  Section  5(d) upon the  issuance  of any  Additional  Shares of
Common Stock which are issued pursuant to any Options or Convertible  Securities
if  upon  the  issuance  of  such  Options  or  Convertible  Securities  (x) any
adjustment  shall have been made  pursuant to Section  5(d)(ii)  above or (y) no
adjustment was required pursuant to this Section 5(d)(iii). No adjustment of the
applicable  Warrant Exercise Price shall be made under this Section 5(d)(iii) in
an amount  less than $.01 per share,  but any such  lesser  adjustment  shall be
carried  forward  and  shall  be made at the  time  and  together  with the next
subsequent  adjustment,  if any, which together with any  adjustments so carried
forward shall amount to $.01 per share or more; provided, however, that upon any
adjustment of the applicable  Warrant Exercise Price as a result of any dividend
or  distribution  payable  in  Common  Stock or  Convertible  Securities  or the
reclassification,  subdivision  or combination of Common Stock into a greater or
smaller number of shares, the foregoing figure of $.01 per share (or such figure
as last adjusted) shall be adjusted (to the nearest one-half cent) in proportion
to the adjustment in the applicable Warrant Exercise Price.

            (iv)  Determination of  Consideration.  For purposes of this Section
5(d), the consideration received by the Corporation for any Additional Shares of
Common Stock issued (or deemed to be issued) shall be computed as follows:

                  (A) Cash and Property. Such consideration shall:

                        (1) insofar as it  consists of cash,  be computed at the
      aggregate amount of cash received by the Company;

                        (2) insofar as it consists of  securities  and the value
      of  such  securities  is  not  determinable  by  reference  to a  separate
      agreement,  (A) if the securities are then traded on a national securities
      exchange  or the  Nasdaq  Stock  Market (or a similar  national  quotation
      system),  then the value  shall be  computed  based on the  average of the
      closing  prices of the  securities  on such  exchange  or system  over the
      thirty (30)-day  period ending on the date of receipt by the  Corporation,
      (B) if the securities are actively traded over-the-counter, then the value
      shall be computed  based on the average of the closing bid prices over the
      thirty (30) day ending on the date of receipt by the Corporation,  and (C)
      if there is no active  public  market,  then the value  shall be  computed
      based on the fair  market  value  thereof  on the date of  receipt  by the
      Corporation, as determined in good faith by the Board of Directors;

                                       7
<PAGE>

                        (3) insofar as it  consists of property  other than cash
      and  securities,  be computed at the fair market value thereof at the time
      of such  issuance,  as determined in good faith by the Board of Directors;
      and

                        (4) if Additional  Shares of Common Stock are issued (or
      deemed to be issued)  together  with other shares or  securities  or other
      assets of the  Corporation  for  consideration  which cover  both,  by the
      proportion of such consideration so received,  computed as provided in the
      immediately   preceding   Sections   5(d)(iv)(A)(1),   5(d)(iv)(A)(2)  and
      5(d)(iv)(A)(3), as determined in good faith by the Board of Directors.

                  (B)  Options and  Convertible  Securities.  The  consideration
received by the Corporation for Additional Shares of Common Stock deemed to have
been  issued  pursuant  to  Section  5(d)  relating  to Option  and  Convertible
Securities,  shall  be the sum of (x) the  total  amount,  if any,  received  or
receivable by the Corporation as consideration  for the issue of such Options or
Convertible  Securities,  plus (y) the minimum  aggregate  amount of  additional
consideration (as set forth in the instruments relating thereto,  without regard
to  any  provision  contained  therein  for  a  subsequent  adjustment  of  such
consideration)  payable to the Corporation  upon the exercise of such Options or
the  conversion or exchange of such  Convertible  Securities,  or in the case of
Options for Convertible Securities, the exercise of such Options for Convertible
Securities and the conversion or exchange of such Convertible Securities.

      (e) Certificate as to Adjustments.  Upon the occurrence of each adjustment
or readjustment of the Warrant  Exercise Price or the number of Warrants covered
hereby  pursuant  to this  Section 5, the  Corporation,  at its  expense,  shall
promptly  compute such  adjustment or  readjustment in accordance with the terms
hereof and furnish to the Holder a certificate  setting forth such adjustment or
readjustment  and  showing in detail the facts  upon  which such  adjustment  or
readjustment is based.  The Corporation  shall,  upon the written request at any
time of the  Holder,  furnish  or cause  to be  furnished  to the  Holder a like
certificate  setting  forth (i) such  adjustments  and  readjustments,  (ii) the
Warrant Exercise Price at the time in effect,  and (iii) the number of shares of
Common Stock and the amount,  if any, of other  property which at the time would
be received upon the exercise of this Warrant.

6. No Voting  Rights.  This  Warrant  shall not entitle the Holder to any voting
rights or other rights as a stockholder of the Corporation.

                                       8
<PAGE>

7. Notice of Transfer of Warrant or Resale of the Warrant Shares.

      (a)  Subject  to the sale,  assignment,  hypothecation  or other  transfer
restrictions set forth in Section 3 hereof,  the Holder,  by acceptance  hereof,
agrees  to give  written  notice to the  Corporation  before  transferring  this
Warrant or transferring any Warrant Shares of such Holder's  intention to do so,
describing briefly the manner of any proposed transfer.  Promptly upon receiving
such  written  notice,  the  Corporation  shall  present  copies  thereof to the
Corporation's  counsel.  If in the opinion of such counsel the proposed transfer
may be effected  without  registration  or  qualification  (under any federal or
state  securities  laws),  the  Corporation,  as promptly as practicable,  shall
notify the Holder of such  opinion,  whereupon  the Holder  shall be entitled to
transfer this Warrant or to dispose of Warrant Shares received upon the previous
exercise  of this  Warrant,  all in  accordance  with the  terms  of the  notice
delivered by the Holder to the Corporation;  provided that an appropriate legend
may be endorsed on this  Warrant or the  certificates  for such  Warrant  Shares
respecting  restrictions  upon  transfer  thereof  necessary or advisable in the
opinion  of counsel  and  satisfactory  to the  Corporation  to prevent  further
transfers  which  would  be in  violation  of  Section  5 of the  1933  Act  and
applicable  state  securities  laws; and provided  further that the  prospective
transferee   or  purchaser   shall   execute  such   documents   and  make  such
representations,  warranties and agreements as may be required  solely to comply
with  the  exemptions  relied  upon  by the  Corporation  for  the  transfer  or
disposition of the Warrant or Warrant Shares.

      (b) If, in the opinion of the Corporation's counsel, the proposed transfer
or disposition  of this Warrant or such Warrant Shares  described in the written
notice given pursuant to this Section 7 may not be effected without registration
or qualification of this Warrant or such Warrant Shares,  the Corporation  shall
promptly give written  notice  thereof to the Holder,  and the Holder will limit
its activities in respect to such transfer or disposition  as, in the opinion of
such counsel, are permitted by law.

8. Fractional Shares. Fractional shares shall not be issued upon the exercise of
this Warrant,  but in any case where the holder would, except for the provisions
of this  Section,  be entitled  under the terms  hereof to receive a  fractional
share, the Corporation  shall, upon the exercise of this Warrant for the largest
number of whole  shares then  called for,  pay a sum in cash equal to the sum of
(a) the excess,  if any, of the Market Price of such  fractional  share over the
proportional  part of the Warrant Exercise Price  represented by such fractional
share,  plus (b) the proportional part of the Warrant Exercise Price represented
by such fractional share. For purposes of this Section,  the term "Market Price"
with  respect  to shares of Common  Stock of any class or series  means the last
reported sale price or, if none,  the average of the last  reported  closing bid
and asked  prices on any national or regional  securities  exchange or quoted in
the National  Association of Securities  Dealers,  Inc.'s  Automated  Quotations
System  ("Nasdaq"),  or if not  listed  on a  national  or  regional  securities
exchange or quoted in Nasdaq,  the average of the last reported  closing bid and
asked prices as reported by  bigcharts.com  (or if this service is discontinued,
such other reporting service  acceptable to the Holder),  or if no quotations in
such  Common  Stock  are  available,  the fair  market  value of the  shares  as
determined in good faith by the Board of Directors of the Corporation.

9. Registration  Rights.  Holder shall have  registration  rights for the shares
underlying  its Warrants as described in the  Registration  Rights  Agreement of
this same date.

                                       9
<PAGE>

10. Limitation of Exercise of this Warrant.  Despite anything to the contrary in
this Warrant,  the Holder may not exercise  this Warrant  during the time period
and to the extent that the shares of Common Stock that the Holder could  acquire
upon the exercise hereof would cause Holder's  Beneficial  Ownership (as defined
below) of the Corporation's  Common Stock to exceed 4.99%.  These limitations on
the right to exercise  this Warrant  shall first reduce the Holder's  Beneficial
Ownership of the  Corporation's  Common Stock before  limitation of the Holder's
conversion rights, or the Corporation's  right to make payments in Common Stock,
under the Note. The parties shall compute the Holder's "Beneficial Ownership" of
Common Stock in accordance  with U.S.  Securities and Exchange  Commission  Rule
13d-3.  The Holder will, at the request of the  Corporation,  from time to time,
notify the  Corporation  of the  Holder's  computation  of  Holder's  Beneficial
Ownership.  By  written  notice to the  Corporation,  the  Holder  may waive the
provisions  of this Section 10, but any such waiver will not be effective  until
the 61st day after delivery thereof.

      IN WITNESS  WHEREOF,  El Capitan  Precious  Metals,  Inc.  has caused this
Warrant to be signed by its duly authorized officer and this Warrant to be dated
October 28, 2005.

                                      EL CAPITAN PRECIOUS METALS, INC.

                                      By  /s/ Charles C. Mottley
                                          --------------------------------------
                                          Charles C. Mottley, President and
                                          Chief Executive Officer

                                       10
<PAGE>

                                  EXERCISE FORM

   (To Be Executed by the Registered Holder in Order to Exercise the Warrant)

To:  El Capitan Precious Metals, Inc.

The undersigned  hereby  irrevocably  elects to exercise the attached Warrant to
purchase for cash,  ________________ of the shares issuable upon the exercise of
such Warrant,  and requests that  certificates  for such shares (together with a
new Warrant to purchase the number of shares, if any, with respect to which this
Warrant is not exercised) shall be issued in the name of:

                        NAME:
                                       -----------------------------------------

                        SOC. SEC. or
                        TAX I.D. NO.
                                       -----------------------------------------

                        ADDRESS:
                                       -----------------------------------------

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

Dated:          , 20
       ---------    ----               -----------------------------------------
                                       Signature *

*     The signature on the Notice of Exercise of Warrant must  correspond to the
      name as written upon the face of the Warrant in every  particular  without
      alteration or enlargement or any change whatsoever. When signing on behalf
      of a corporation, partnership, trust or other entity, please indicate your
      position(s) and title(s) with such entity.

<PAGE>

                                 ASSIGNMENT FORM

   (To be Executed by the Registered Holder in Order to Transfer the Warrant)

To:  El Capitan Precious Metals, Inc.

      FOR VALUE RECEIVED,  the undersigned hereby sells,  assigns, and transfers
unto  ______________________________  the right to purchase the securities of El
Capitan Precious  Metals,  Inc. to which the within Warrant relates and appoints
_______________________,  attorney,  to  transfer  said right on the books of El
Capitan Precious  Metals,  Inc. with full power of substitution in the premises.

Dated:               20
      --------------,  --                          -----------------------------
                                                   (Signature)

                                                    Address:

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

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

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